On April 2, Zhenghong Technology (000702) recently released its 2020 annual report. During the reporting period, the company achieved an operating income of 1068295560.24 yuan, a year-on-year decrease of 4.87%; the net profit attributable to shareholders of listed companies was 33539213.35 yuan, a year-on-year increase of 258.07%.
During the reporting period, the net cash flow from operating activities was -112245331.07 yuan, and the net assets attributable to shareholders of listed companies were 580181021.46 yuan by the end of 2020.
In 2020, the company will face greater production and operation pressure due to African swine plague, continuous fluctuation of feed raw material prices and other factors. In the face of complex and severe business situation, the company firmly grasped the general tone of seeking progress while maintaining stability, made concerted efforts to meet difficulties, took the initiative to seek change, and took advantage of the situation. Closely centering on the “2345 + n” business strategic plan, combined with the production and operation plans formulated at the beginning of the year for all lines of the company, the company took “expanding scale, preserving quantity, reducing cost, strengthening management, seeking innovation and development” as the main line of work, We chose to implement the business model of feed + breeding industry linkage and integration and collaborative development, which achieved good business performance, further consolidated the business foundation, maintained the brand value, enhanced the endogenous development momentum, and created conditions for promoting the company to a new level of development.
During the reporting period, affected by the supply-demand relationship of the pig market, the pig price remained high. In order to stabilize the pig production capacity and ensure the market supply, the government and relevant departments successively issued corresponding policies and measures to support the development of pig breeding industry. The company actively implements the policies and measures of the government to ensure the stable production and supply of live pigs, seizes the development opportunity of the industry, integrates the internal resources of the company, actively carries out the layout of live pig breeding industry, increases the business investment in live pig breeding industry, expands the scale of live pig breeding industry, establishes live pig disease detection laboratory, explores new business mode of live pig breeding, and promotes the development and growth of live pig breeding industry of the company . In 2020, the company has invested about 54 million yuan to establish 8 breeding subsidiaries in Yueyang, Changsha, Changdu, Yixing and other places. By the end of the report period, the company has developed the scale of 20000 sows and 100000 fattening sows, which creates conditions for the company’s pig breeding to develop in the direction of scale, specialization and industrialization, and plays an important role in promoting breeding linkage and industrial integration We need to make a difference.
During the period, the financial expenses were 1480061.23 yuan, a year-on-year decrease of 42.58%, mainly due to the reduction of financial expenses by the government discount funds received in the current period. During the period, the investment income was 4499320.06 yuan, accounting for 10.64% of the total profit. The investment income accounted for – 191250.14 yuan under Zhenghong equity method, 167752.43 yuan under Rongyi animal husbandry equity method, 13110.80 yuan from futures closing, 157810.64 yuan from disposal of long-term equity investment, and 56 yuan during holding period of financial instruments, The investment income from the disposal of financial instruments was 4294932.59 yuan.
According to the announcement, the total remuneration of directors, supervisors and senior managers during the reporting period was 4.3852 million yuan. Liu Xianwen, chairman of the board, received 490700 yuan of pre tax remuneration from the company; Yi Dewei, director and vice president, received 228600 yuan of pre tax remuneration from the company; Yu Ling, director and chief financial officer, received 292700 yuan of pre tax remuneration from the company; Wu Xingli, vice president, received 338500 yuan of pre tax remuneration from the company.
According to the announcement, the company plans not to distribute cash dividends, bonus shares or increase share capital with accumulation fund.
According to the data of digbei.com, Zhenghong technology is an enterprise group with a series of independent intellectual property rights and mainly engaged in research and development, production and sales of feed products. In addition to feed processing, the company is also engaged in pig breeding and feed raw material trade.