Gifore(SZ:300022)2021-08-12 16:00Financial Performance - The company achieved operating revenue of ¥2,496,984,037.68, an increase of 8.79% compared to the previous year[5]. - Operating profit reached ¥50,431,614.89, representing a growth of 141% year-on-year[5]. - The net profit attributable to the parent company was -¥16,188,402.07, an increase of 88.67% compared to the previous year, primarily due to significant credit impairment losses[5]. - The company's operating revenue for 2020 was ¥2,496,984,037.68, an increase of 8.79% compared to ¥2,295,229,258.90 in 2019[20]. - The net profit attributable to shareholders was a loss of ¥16,188,402.07, an improvement of 88.67% from a loss of ¥142,911,349.25 in 2019[20]. - The net cash flow from operating activities was ¥131,754,656.74, a significant increase of 236.82% compared to -¥96,294,654.06 in 2019[20]. - The total assets at the end of 2020 were ¥1,635,528,810.90, a decrease of 6.82% from ¥1,755,253,830.20 at the end of 2019[20]. - The company's net assets attributable to shareholders decreased by 21.05% to ¥65,397,306.15 from ¥82,831,439.63 in 2019[20]. - The basic earnings per share improved to -¥0.0426 from -¥0.3758 in 2019, reflecting an 88.66% improvement[20]. - The company reported a total of ¥2,492,944,808.16 in revenue after excluding non-core business income[20]. - The company reported a net profit of -44,222,098.43 CNY for 2020, with cumulative distributable profits at -451,951,939.06 CNY, resulting in no profit distribution for the year[97]. - The company will not conduct capital reserve transfers or cash dividends for 2020 due to negative distributable profits[98]. Business Strategy and Market Focus - The company plans to enhance its business expansion efforts in response to the "14th Five-Year Plan" and the "Central No. 1 Document" which emphasizes accelerating agricultural modernization[6]. - The company aims to adapt its products to align with national policy directions to mitigate risks associated with subsidy reductions and market saturation[7]. - The company will focus on increasing its market share in rural construction projects and high-tech agricultural machinery markets[8]. - The company aims to provide comprehensive mechanization solutions for agricultural production, enhancing user efficiency and benefits[29]. - The company plans to enhance the development of township-level franchise stores to improve product accessibility and service[42]. - The company aims to reduce financial expenses by increasing cash flow and converting idle assets into operational funds[44]. - The company is focusing on expanding its market presence and enhancing product offerings in response to evolving agricultural needs and government policies[87]. - The company aims to stabilize its first-line brand agency and expand its agency areas, focusing on a multi-brand and multi-category product optimization to enhance sales revenue[89]. - The company plans to leverage opportunities from the national rural revitalization strategy to expand its business in mechanization projects and high-tech agricultural machinery markets[93]. Operational Efficiency and Cost Management - The company reported a decrease in sales expenses by 22.21% to CNY 165,083,116.12[41]. - The company has implemented measures to optimize financing strategies, reducing high-interest financing and increasing low-cost financing[34]. - The company has implemented measures to reduce financial expenses and improve capital operation efficiency, including optimizing payment management and increasing low-cost financing[90]. - The company aims to continue reducing expenses and optimizing direct store human resources, aiming to ensure positive net cash flow from operating activities[90]. Subsidiaries and Investments - The company disposed of several subsidiaries, including Guang'an Jifeng Agricultural Machinery Co., Ltd., resulting in a loss of control and a negative impact on net assets[58]. - The company executed a significant equity sale, divesting 100% of its stake in Chengdu Jifeng Juliy Investment Co., Ltd., which impacted its financial performance[83]. - The company’s subsidiary Jilin Province Kangda Agricultural Machinery Co., Ltd. achieved a net profit of 97,543,708.09 yuan in 2020, primarily producing no-till series products and benefiting from favorable policies[86]. - The company sold several subsidiaries, including Guang'an Jifeng Agricultural Machinery Co., Ltd., without impacting overall operations and performance[86]. - The company transferred 99% and 1% equity of Chengdu Jifeng Juli Investment Co., Ltd. for a total consideration of 66.89 million RMB, receiving 50% of the payment amounting to 33.445 million RMB[162]. Shareholder and Governance - The company has a total of 34,992,446 shares under lock-up for executives, which remains unchanged during the reporting period[170]. - The total number of shareholders at the end of the reporting period was 36,162, down from 39,164 at the end of the previous month[173]. - Major shareholder Wang Xinming holds 12.27% of shares, totaling 46,642,595 shares, with 34,981,946 shares under pledge[173]. - The combined voting rights of Wang Xinming and associated parties (Wang Hongyan and San Nan Shen Yu) amount to 90,712,595 shares, representing 23.86% of the total share capital[174]. - The company has maintained a stable management team with no significant changes in directors and senior management during the reporting period[188]. - The company has been recognized for its contributions to the agricultural machinery industry, with Wang Xinming receiving multiple accolades[189]. Compliance and Risk Management - The company has committed to ensuring that its operations do not infringe on the interests of shareholders and will adhere to relevant regulations regarding asset management[109]. - The company has made promises to avoid conflicts of interest and ensure fair treatment of all stakeholders during its operations[109]. - The company has no instances of illegal external guarantees during the reporting period[137]. - The company has not reported any significant litigation or arbitration matters during the reporting period[121]. - The company did not experience any penalties or rectification situations during the reporting period[122]. Research and Development - Research and development expenses increased by 97.14% to ¥5,249,057.20, representing 0.21% of total revenue[63]. - The company plans to introduce new products such as no-till seeders and multifunctional precision seeders, with small-scale production starting in early 2021[63].