Gifore(SZ:300022)2021-04-27 16:00Financial Performance - The company achieved operating revenue of CNY 2,496,984,037.68, an increase of 8.79% compared to the previous year[5] - Operating profit reached CNY 50,431,614.89, representing a significant growth of 141% year-on-year[5] - The net profit attributable to the parent company was a loss of CNY 16,188,402.07, but this still marked an improvement of 88.67% compared to the previous year[5] - The company's net profit for 2020 was CNY 20,453,101.85, representing a year-on-year increase of 115.03%[41] - The net cash flow from operating activities was ¥131,754,656.74, a significant increase of 236.82% compared to a negative cash flow of ¥96,294,654.06 in 2019[19] - The company reported a net loss of 136.1 million yuan in 2019, raising concerns about its ability to continue as a going concern, which was addressed in the 2020 audit report[109] - The company has eliminated significant uncertainties regarding its ability to continue operations, as confirmed by the standard unqualified audit report issued for 2020[110] Business Strategy and Future Plans - Future plans include expanding into rural construction projects and high-tech agricultural machinery markets, aligning with national rural revitalization strategies[8] - The company aims to transform into a comprehensive technology service provider in the modern agricultural equipment industry[8] - The company plans to enhance its three main business segments to adapt to the deepening development of modern agriculture[8] - The company intends to leverage opportunities from the national rural revitalization strategy to expand its business in mechanization projects[92] - The company plans to expand its distribution network in rural areas to enhance direct marketing and customer engagement[87] Operational Challenges - The company faced delays in supply chain and logistics due to the pandemic, impacting the timing of agricultural procurement activities[5] - The company has recognized significant credit impairment losses in the reporting period, affecting net profit[5] - The company’s overall performance indicates a challenging financial environment, with multiple subsidiaries reporting net losses[83] - The company faces risks from market and policy changes, including reduced subsidies for agricultural machinery purchases, which could adversely affect sales and profitability[91] Subsidiaries and Divestitures - The company disposed of several subsidiaries, including Guang'an Jifeng Agricultural Machinery Co., Ltd., for a total consideration of ¥1,306,284.37[56] - The company has divested from several subsidiaries, including the sale of Chengdu Jifeng Ju Li Investment Co., Ltd. for 66.89 million CNY, contributing to an investment income of 24.94 million CNY[84] - The subsidiary, Jilin Province Kangda Agricultural Machinery Co., Ltd., reported a net profit of 97,543,708.09 CNY, driven by strong demand for its products[84] Revenue and Sales Performance - The revenue from agricultural machinery was ¥2,377,817,042.99, accounting for 95.23% of total revenue, with a year-on-year growth of 13.01%[49] - The number of agricultural machinery sold increased by 6.85% to 56,251 units, while the production volume decreased by 24.86% to 5,225 units[52] - The company reported a significant decrease in inventory levels, with agricultural machinery inventory down by 54.90% to 9,127 units[52] - The gross profit margin for agricultural machinery was 15.53%, slightly down by 0.86% from the previous year[51] Financial Management - The company reported a significant increase in construction in progress, which rose to ¥29,302,891.29, representing 1.79% of total assets, an increase of 1.35%[71] - The company has implemented measures to improve cash flow management and ensure positive net cash flow from operating activities[88] - The company will continue to reduce financial expenses by optimizing payment management and increasing low-cost financing to replace high-interest financing[90] Shareholder and Governance - The profit distribution plan proposed by the board includes no cash dividends or stock bonuses for shareholders[8] - The company has not distributed any dividends for 2020 due to negative distributable profits, maintaining a cash dividend total of 0.00 CNY[96] - The company has maintained its accounting firm, Xinyong Zhonghe, for 14 consecutive years, with an audit fee of ¥2.2 million[116] - The company has established effective communication channels with investors, ensuring that all shareholders have access to significant company information[141] Employee and Social Responsibility - The company has trained over 20,000 users in the Sanzhou region since 2003 through its agricultural machinery vocational skills training program[147] - The company emphasizes the importance of social responsibility, aiming to balance economic benefits with social value creation[145] - The company adheres to labor laws and regulations, ensuring that all employees have signed labor contracts and receive mandatory social insurance[143] Research and Development - Research and development investment for 2020 amounted to ¥5,249,057.20, which is 0.21% of operating revenue[64] - The company has developed new products including various types of seeders and harvesters, with some starting small-scale trial production in early 2021[63]