CCGB(SZ:300138)2021-03-22 16:00Financial Performance - The company reported a total revenue of 532,773,991 RMB for the year 2020, with a cash dividend distribution of 1 RMB per 10 shares to all shareholders[7]. - The company's operating revenue for 2020 was CNY 3,912,935,282.07, representing a 19.84% increase compared to CNY 3,265,232,815.43 in 2019[20]. - The net profit attributable to shareholders for 2020 was CNY 267,741,336.03, a 38.32% increase from CNY 193,572,517.02 in 2019[20]. - Basic earnings per share for 2020 were CNY 0.5540, up 46.99% from CNY 0.3769 in 2019[20]. - The total assets at the end of 2020 were CNY 4,654,478,102.66, reflecting a 3.27% increase from CNY 4,507,082,722.33 at the end of 2019[20]. - The net assets attributable to shareholders increased by 18.08% to CNY 2,064,141,483.17 from CNY 1,748,100,417.02 in 2019[20]. - The company reported a quarterly revenue of CNY 1,204,930,544.82 in Q4 2020, which was the highest among the four quarters[23]. - The diluted earnings per share for 2020 were CNY 0.5275, a 39.96% increase from CNY 0.3769 in 2019[20]. - The weighted average return on equity for 2020 was 14.36%, up from 10.65% in 2019[20]. - The company reported a non-operating income of approximately ¥42.24 million, a significant increase from ¥15.08 million in 2019, representing a growth of 179.5%[27]. - The company received government subsidies amounting to ¥53.76 million in 2020, compared to ¥19.49 million in 2019, indicating a growth of 175.5%[27]. Market Strategy and Development - The company aims to build a global natural extract industry base, emphasizing the importance of global resource allocation to achieve this goal[5]. - The company’s development strategy includes expanding its market presence and enhancing product offerings through new technologies and research[5]. - The company is committed to addressing challenges posed by international operations, including legal and cultural differences, to ensure sustainable growth[5]. - The company has established raw material bases in regions such as Xinjiang, Yunnan, and India, and is currently trialing raw material cultivation in Zambia[34]. - The company employs a market-oriented R&D model that includes stages from small trials to industrial production, ensuring alignment with market needs[34]. - The company has a complete procurement, R&D, production, and sales model, continuously improving its operational strategies based on market demands[34]. - The company is focusing on the rapid development of secondary products, including spice extracts and nutritional extracts, to improve profitability and operational resilience[166]. - The company intends to expand its OEM business in health food products and develop new products in the premium oil sector, aiming for significant growth in these areas[168]. Risk Management - The company plans to conduct thorough research before overseas investments to mitigate risks associated with foreign laws, taxes, and political stability[5]. - The company will actively use financial instruments to accelerate foreign exchange settlement and reduce the impact of exchange rate volatility on its operating performance[5]. - The company has not identified any new significant risks that could adversely affect its operations in the next reporting period[5]. - Foreign exchange fluctuations pose a risk as overseas revenue is a significant part of the company's income, primarily priced in USD; the company plans to use financial instruments to mitigate these risks[182]. - The company will conduct thorough research before overseas investments to minimize risks associated with international operations[181]. Research and Development - The company is committed to building a first-class research and development platform for natural extracts, attracting top talent to drive technological innovation[53]. - The company has established 21 technology platforms, including 5 national-level platforms, enhancing its research and development capabilities[56]. - The company has been awarded 65 technology-related awards at national, provincial, and municipal levels, including 2 National Science and Technology Progress Second Prizes[56]. - The company has completed 35 technology achievement appraisals, with 9 recognized as "internationally leading" and 12 as "internationally advanced"[57]. - The company has applied for 341 patents, with 216 granted, and published 143 papers out of 198 submissions[57]. - The company is committed to increasing R&D efforts to enhance product competitiveness in response to potential changes in export tax rebate policies[181]. Product Offerings and Market Position - The company’s product offerings include natural pigments, spices, nutritional extracts, and oils, catering to various industries such as food, pharmaceuticals, and cosmetics[31]. - Morning Glory Biotechnology has become the largest listed company in the domestic plant extract industry and ranks among the top tier globally, gradually catching up with or surpassing foreign leaders like Frutarom and Kalsec[37]. - The company has three main products—capsanthin, capsaicin, and lutein—ranking first or among the top in the world, with other products like pepper extract and curcumin in a rapid growth phase[37]. - The company’s main products, including chili red, lutein, and lycopene, rank among the top in the world, with stable growth in market share and profitability[86]. - The company aims to develop around ten world-leading products in the natural extraction industry, leveraging its 20 years of experience and strong brand reputation[86]. Financial Management and Shareholder Relations - The company’s profit distribution plan was approved, with no new shares being issued from capital reserves[7]. - The total cash dividend distributed for 2020 was 53.28 million yuan, representing 19.90% of the consolidated net profit attributable to shareholders[197]. - The cash dividend per 10 shares was set at 1.0 yuan (including tax), with a total of 532,773,991 shares as the base for distribution[190]. - The company plans to maintain a minimum cash dividend of 10% of the distributable profit annually, barring significant investment plans or cash expenditures[188]. - The company has consistently increased its cash dividend over the past three years, with 2020 showing a significant increase compared to previous years[195]. - The company has established a commitment to notify and facilitate any business opportunities that may compete with its operations[199]. - The company has implemented a share incentive plan to align the interests of shareholders and management[200]. Operational Efficiency - The company saved nearly 20,000 working hours through standardized and IT-driven management processes, significantly improving work efficiency and accuracy[80]. - The company has completed several projects aimed at improving production efficiency and reducing costs, including the installation of a new biomass steam boiler[124]. - The company has successfully implemented safety enhancement modifications in the production workshop[121]. - The company has completed the automatic palletizing robot transformation in the filling workshop, improving automation levels[121]. - The company aims to improve its production efficiency and cost advantages through integrated production and resource utilization strategies[164]. Environmental and Social Responsibility - The company is committed to enhancing its environmental protection measures and has invested in strict environmental monitoring systems to comply with increasing regulatory standards[180]. - The company donated over 10 million yuan worth of medical supplies during the pandemic, including alcohol, masks, protective clothing, and lycopene soft capsules, contributing to the fight against COVID-19[81].