Cofco Sugar(600737)2020-04-27 16:00Financial Performance - In 2019, the company achieved a net profit attributable to shareholders of RMB 579,580,723.81, representing a 15.04% increase compared to RMB 503,802,619.10 in 2018[4]. - The company's operating revenue for 2019 was RMB 18,424,834,764.08, up 5.20% from RMB 17,514,899,049.69 in the previous year[16]. - The net cash flow from operating activities decreased by 55.78% to RMB 1,072,274,635.62 from RMB 2,425,016,629.86 in 2018[16]. - The total assets of the company at the end of 2019 were RMB 16,124,599,803.56, a 3.66% increase from RMB 15,555,000,281.22 at the end of 2018[17]. - The net assets attributable to shareholders increased by 10.09% to RMB 8,067,291,583.31 from RMB 7,328,150,579.21 in 2018[17]. - The company reported a net profit excluding non-recurring gains and losses of RMB 484,445,133.08, which is a 25.98% increase from RMB 384,532,803.13 in 2018[16]. - Basic earnings per share for 2019 was CNY 0.2738, an increase of 11.53% compared to CNY 0.2455 in 2018[18]. - The net profit attributable to shareholders for Q4 2019 was CNY -9,699,056.05, contrasting with CNY 290,135,356.78 in Q3 2019[19]. - The total operating income for Q4 2019 reached CNY 6,099,353,324.99, showing a significant increase from CNY 5,905,424,493.45 in Q3 2019[19]. - Non-recurring gains and losses totaled CNY 95,135,590.73 for 2019, compared to CNY 119,269,815.97 in 2018[20]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of RMB 1.25 per 10 shares, totaling RMB 267,356,028.50, which is 46.13% of the net profit for the year[4]. - The cash dividend distribution plan for 2019 was to distribute 1.25 RMB per 10 shares, totaling 267,356,028.50 RMB[58]. - In 2019, the cash dividend accounted for 46.13% of the net profit attributable to ordinary shareholders in the consolidated financial statements[58]. Operational Highlights - The company operates primarily in sugar production and processing, with a focus on domestic and international sugar trade and logistics[22]. - The company operates 13 sugar production enterprises in China, with an annual sugar production capacity of 700,000 tons, contributing to 20% of the national sugar consumption[23]. - The overseas sugar business includes Tully Sugar in Queensland, Australia, with an annual raw sugar production capacity of 300,000 tons, serving as a key resource for domestic sugar supply[23]. - The company has a refining capacity of 500,000 tons per year in Tangshan and 1,000,000 tons per year in Yingkou, making it one of the largest sugar import traders in China[23]. - The company manages 22 sugar storage facilities across major consumption markets in China, with a total storage capacity of 2,000,000 tons, handling an annual trading volume of 3,000,000 tons[23]. - The company is the largest tomato processing enterprise in China and the second largest in the world, with an annual production capacity of 300,000 tons of bulk tomato sauce[24]. - The company has established strategic partnerships with international firms, exporting bulk tomato sauce to over 80 countries and regions[24]. Research and Development - Research and development expenses surged by 258.70% to 54 million RMB, indicating a strong focus on innovation[32]. - The company’s refined sugar business improved profitability significantly by optimizing processes and enhancing product quality[29]. - The tomato business turned profitable in 2019 after restructuring and optimizing resource allocation[30]. Risk Management - The company has detailed risk factors related to its future development in the report[6]. - The company aims to strengthen risk management capabilities to prevent and mitigate major risks amid complex macroeconomic conditions[53]. - The company faces risks from the COVID-19 pandemic, which may impact market demand and operational activities[54]. - The company is exposed to risks from policy changes affecting sugar trade measures, which are set to expire in May 2020[54]. - The company is at risk from fluctuations in sugar prices due to changes in supply and demand dynamics in both domestic and international markets[54]. - The company relies on agricultural raw materials, making it vulnerable to supply risks from natural disasters and climate changes[55]. Environmental Compliance - The company has maintained compliance with environmental regulations, with all pollutants discharged within national standards and no penalties from environmental authorities[90]. - The company monitored various pollutants, including COD and ammonia nitrogen, with all measurements reported below the standard limits[91]. - The company achieved a chemical oxygen demand (COD) level of 124 mg/L in the first quarter, under the limit of 500 mg/L[92]. - The company has implemented measures to ensure all emissions remain within regulatory standards[96]. - The company’s wastewater treatment facilities are fully operational and effectively treat major pollutants such as COD and ammonia nitrogen[99]. Corporate Governance - The company has a diverse board with members having extensive experience in various sectors, enhancing strategic decision-making capabilities[126]. - The total pre-tax compensation for the chairman was 141.7 thousand yuan, while the total for the general manager was 129.47 thousand yuan[124]. - The company has maintained a stable board composition with a mix of executive and independent directors, which is beneficial for balanced decision-making[126]. - The company emphasizes a market-oriented incentive mechanism linking performance and remuneration, promoting a comprehensive assessment and incentive system[136]. Future Outlook - The company expects a total revenue of 18 billion RMB and a total profit of 789 million RMB for the year 2020[53]. - The company plans to continue its poverty alleviation efforts in 2020, focusing on industrial and consumption poverty alleviation, as well as rural revitalization projects[88]. - The company aims to establish a leading position in the domestic sugar market and become a globally influential sugar enterprise[51].