Financial Performance - The company's performance declined year-on-year, with specific reasons detailed in the "Management Discussion and Analysis" section[6]. - The company's operating revenue for 2021 was ¥578,088,209.15, a decrease of 5.14% compared to ¥609,398,494.86 in 2020[21]. - The net profit attributable to shareholders for 2021 was ¥15,504,571.94, representing a significant decline of 88.30% from ¥132,500,434.75 in 2020[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥3,916,130.92, down 96.79% from ¥122,153,693.17 in 2020[21]. - The net cash flow from operating activities decreased by 58.27% to ¥83,083,400.59 in 2021 from ¥199,089,625.62 in 2020[21]. - The total assets at the end of 2021 increased by 61.11% to ¥1,876,521,079.39 compared to ¥1,164,722,157.98 at the end of 2020[21]. - The net assets attributable to shareholders rose by 68.54% to ¥1,428,944,953.76 at the end of 2021 from ¥847,838,098.33 at the end of 2020[21]. - The gross profit margin for edible mushrooms was 6.66%, down by 20.62% from the previous year[58]. - The company reported a net profit of ¥15,504,600 in 2021, with significant discrepancies between net profit and cash flow from operating activities attributed to depreciation, inventory increases, and changes in receivables and payables[74]. Dividend and Share Capital - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from reserves[7]. - The company distributed a cash dividend of RMB 5.20 per 10 shares, totaling RMB 30,342,000 (including tax) for the 2020 fiscal year[152]. - The company did not propose any cash dividend distribution for the 2021 fiscal year, focusing instead on long-term investment needs[156]. - The company plans to increase its total share capital from 58,350,000 shares to 116,700,000 shares by issuing 10 additional shares for every 10 shares held[152]. Research and Development - The company’s R&D team is composed of experienced professionals from agriculture, food, and biology, supporting sustainable innovation[39]. - Research and development investment amounted to RMB 8,624,943.56, resulting in the addition of 49 new patents, enhancing the company's technological strength[52]. - The company is focused on developing 2-3 new patents and research papers related to mushroom cultivation technologies[68]. - The company is working on improving equipment and processes to enhance the economic benefits of deer antler mushroom cultivation[68]. - The company completed the automation design for the feeding process in the enoki mushroom production, enhancing production efficiency and reducing energy consumption[69]. - The company developed liquid strains for crab mushrooms, resulting in reduced production cycles and costs, while increasing yield and quality[70]. Market and Product Development - The company operates in the agricultural sector, specifically in the cultivation of edible fungi, which has seen a shift towards factory-based production models[31]. - The company’s main products include enoki mushrooms, king oyster mushrooms, and maitake mushrooms, which are popular cooking ingredients[35]. - The company is expanding its production bases, with the Jiangsu base expected to produce 7,800 tons of enoki mushrooms and the Hebei base projected to produce 54,000 tons of fresh enoki mushrooms annually[51]. - The company has established a subsidiary in Chongqing focused on the research, production, and sales of Cordyceps flowers, diversifying its product offerings beyond enoki mushrooms[51]. - The company aims to diversify its product offerings by expanding research, production, and sales of other edible mushroom products to improve market competitiveness and sustainable profitability[191]. Governance and Compliance - The company has established a complete governance structure, including a board of directors, supervisory board, and shareholder meetings, ensuring independent operation[121]. - The company emphasizes transparency in information disclosure, utilizing multiple media outlets for timely updates[115]. - The company has a dedicated investor relations management system to enhance communication with investors[115]. - The company has implemented a performance evaluation system for directors and senior management, ensuring accountability and effective governance[113]. - The company has maintained a governance structure that complies with relevant laws and regulations[165]. Risk Management - The company emphasizes the importance of risk awareness for investors regarding future plans and forecasts[6]. - The company faces risks from intensified market competition, which may lead to price declines and fluctuations in gross margins[106]. - The company is exposed to risks from raw material price volatility, which significantly impacts production costs and gross margins[106]. - The company relies heavily on a single product, enoki mushrooms, which accounted for over 90% of total sales, posing a risk if demand decreases[107]. - Changes in tax policies could adversely affect the company's net profit, as current sales of agricultural products are exempt from VAT and corporate income tax[108]. Social Responsibility - The company is committed to social responsibility, contributing to local employment and rural revitalization while providing green and healthy food[50]. - The company actively fulfills its corporate social responsibility by adhering to labor laws and providing various employee benefits[165]. - The company has not engaged in poverty alleviation or rural revitalization efforts during the reporting period[166]. Employee Management - The total number of employees at the end of the reporting period was 1,829, with 822 in the parent company and 1,007 in major subsidiaries[147]. - The company's compensation policy emphasizes a fair and sustainable distribution system, including basic salary, skill salary, performance salary, and various bonuses[149]. - The company plans to continuously improve its compensation performance system to ensure internal fairness and external competitiveness[149]. Fundraising and Financial Management - The company completed its initial public offering, raising a net amount of RMB 59,610.98 million, which supports the long-term development of its main business[52]. - The company has established a financial management system to oversee the use of raised funds effectively[86]. - The company approved the change of fundraising usage, terminating the "annual production of 30,000 tons of true mushrooms project" and reallocating the raised funds of CNY 309.60 million to the construction of the Hebei Hualv annual production of 54,000 tons of fresh enoki mushroom factory project[87]. - The company has committed to accelerate the construction of fundraising projects to achieve expected benefits as soon as possible[191]. Shareholder Relations - The company held 4 shareholder meetings during the reporting period, complying with legal regulations and company bylaws[113]. - The annual shareholders meeting had a participation rate of 42.75% on May 18, 2021[123]. - The company has a plan to stabilize its stock price for three years post-IPO, which includes timely disclosures and potential compensation for unfulfilled commitments[187]. Legal and Regulatory Compliance - The company has not reported any significant legal disputes related to its investments[84]. - The company did not identify any risks during the supervisory activities of the supervisory board in the reporting period[146]. - The company reported no penalties from regulatory bodies for its directors and senior management in the past three years, indicating a clean compliance record[135].
华绿生物(300970) - 2021 Q4 - 年度财报