I. Overview
During the reporting period, the Company has been tackling difficulties and winning the battle against poverty under the environment of the normalization of epidemic prevention and control, the national tax reduction and efficiency enhancement, the governance of the "two new and one heavy", the release of the dividends of the agricultural policy, and ensuring that the battle against poverty is won. Under the environment, the company has overcome the difficulties and resumed work without fail in the fight against the epidemic. Good results were achieved in market development, digital transformation, model innovation, debt settlement and multi-channel financing, ensuring the Company's sustainable, stable, healthy and long-term development, and creating a good situation for the second half of the year. During the reporting period, the Company achieved an operating income of RMB732,721,000, a decrease of 13.07% compared with the same period of the previous year, and a net profit attributable to owners of the Company of RMB27,081,700, a decrease of 59.72% compared with the same period of the previous year. With the company's national layout and the advantages of the whole industrial chain as well as the first resumption of work and production in the country and other factors, this year the company in the national epidemic situation still achieved a better order situation, the company's new orders amounted to 1.606 billion yuan during the reporting period, an increase of 47% year-on-year; as of the date of disclosure of the report, the new orders amounted to 2.321 billion yuan, which is over 200 million yuan more than the full-year order amount of last year. During the reporting period, the company's main business activities are as follows:
1. Effective model promotion, outstanding account clearance
During the reporting period, the company has always adhered to the overall marketing ideas of "policy marketing, program marketing, model marketing, brand marketing", and has seized opportunities from top to bottom by virtue of its strong research and judgment ability and its ability to control the future. With strong judgment ability and control of the future, the company seized the opportunity to promote EPC+O and EPC+M modes from top-level design, laying a foundation for the later performance enhancement. The company set up three regional headquarters, summarized, reviewed, summarized and upgraded iteratively on the basis of the company's existing models and programs, and organized the Dali Gusheng Village project, Tongliao project, Shaya project, Wuqing project, Yuanmou project, Xiangyun project, Maidu project, Wushan project to conduct a serious analysis, sorting out, refining, innovation and completion of the summary of the model to start the "company's products" promotional activities. The company's "product" publicity and promotion activities.
During the reporting period, the Company set up a capital security team and accounts receivable clearance team, chaired by the Party Secretary and the President of the Company respectively, and listed accounts receivable clearance and bank financing as the core work. Reminder letters were timely sent to projects with accounts receivable in arrears, tasks and assessment standards for accounts receivable clearance were set for subsidiaries and branches, and accounts receivable clearance was linked to the remuneration incentives of relevant responsible persons. During the reporting period, the company's cumulative payback was about 700 million yuan, which effectively alleviated the capital pressure and reduced the business risk.
2, the epidemic prevention and control of decision-making decisively, the resumption of work and production to ensure that the farm time
2020 the beginning of the epidemic outbreak, the company urgently start the contingency plan, the development of a series of epidemic prevention and control measures. All headquarters, all companies all office space and dormitory are regularly disinfected, temperature measurement, especially for the company's canteen and dormitory health to strengthen the supervision and management; for all employees to issue masks and other anti-epidemic materials. Up to now, the company has achieved zero infection of all employees, which fully protects the life safety of all employees and the normal operation of the company. In the procurement of anti-epidemic materials, the company used all the resources and channels that could be utilized, overcame the difficulties in the process of procurement of materials such as searching for sources, purchasing, customs, transportation, etc., and purchased a large number of anti-epidemic materials at the first time of the epidemic. While doing a good job of their own safety protection, has donated nearly more than 10 million yuan of anti-epidemic materials to more than 160 units in various provinces and cities across the country and overseas friends, highlighting the mission and commitment of private enterprises, and further consolidate and enhance the brand image and social influence of the industry leader.
During the epidemic, it was the busy farming season, and good spring field management and spring plowing preparation is a prerequisite for guaranteeing food security. The company's sales and engineering systems comprehensively summarized and cooperated with each other to formulate a plan for resumption of work and production at the first time. Subsequently, the company took the lead in resuming work and production in Jiuquan in the northwest region, which was broadcasted by CCTV news program for three consecutive times. The company's series of pragmatic actions with commitment and action have been praised and recognized by customers and the public, further enhancing the company's social image and reputation.
3. Project No. 1 officially launched, digital transformation and upgrading in sight
The digital transformation and management improvement project is the No. 1 project launched by the company this year, and its main content is to build a digital operation platform with the core of the project's full lifecycle management, to ensure that all business is digitalized and all management is visualized, to stimulate the endogenous power of enterprise management change and digital transformation, and to establish a value chain, ecology and business-oriented management system, which will help the company to achieve the goals of "value chain, ecology and business-oriented". Project No. 1 will build a systematic platform methodology with a high degree of integration of management and information systems, establish a platform-type enterprise with Dayu's characteristics, and realize the company's strategic layout of "three agriculture, three water, three networks, and two-handed force***bearing".
5.
On May 22, the company signed a cooperation agreement with IBM, marking the official implementation of the company's No. 1 project. At present, the project team has completed a visit to the group's various functional departments, three regions, eight business segments of the research, the next to speed up the diagnostic report, program design and information systems on-line and other work, and strive to complete the whole process of project management and change management planning within the year, to achieve the coverage of the entire group of digital operation of the new model.
4. Smooth operation of financing mechanism and successful conclusion of convertible bond issuance
During the reporting period, the Company's financing work was carried out closely around the corporate development strategy and achieved positive results. In terms of indirect financing, the company maintains good credit relationships with nearly 20 financial institutions, mainly banks
, so that the company's operation and development continue to receive stable financial support, which strongly guarantees the smooth and orderly promotion of the company's various businesses. In terms of direct financing, the Company's convertible bond project successfully passed the examination and approval of the Issuance Examination Committee of the China Securities Regulatory Commission on June 12, 2020, and was listed and circulated on August 20, 20, 20, 20, 20, 20. In terms of project financing, the Company completed a number of projects such as the rural living sewage collection and treatment project in Jinchang Jinchuan District. The long-term financing mechanism established by the company for securities, finance, investment and financing lines runs smoothly and is well-coordinated, providing strong financial support for the company's operation and development.
5. Regional headquarters running smoothly, synergistic effect began to show results
During the reporting period, under the guidance of the company's overall strategic planning and annual operating tasks, in order to reasonably and efficiently utilize the company's resources, and to better and faster improve the quality of internal management, the company has optimized the organizational structure, the control model, and the core management system, etc. The company is in accordance with the "strategic support, financial and investment financing" principle, and has established a long-term financing mechanism to provide strong financial support for the company's business development. In accordance with the principle of "strategic support, moderate authorization, enhanced empowerment and parallel supervision", the Company established three regional headquarters, and then set up three headquarters business centers on the basis of the three headquarters, which effectively strengthened the support capacity of the Company's functional departments and enhanced the efficiency and quality of the Company's internal management; at the same time, the establishment of the three headquarters and business centers strengthened the professionalism of the regional headquarters and enhanced the quality of the Company's internal management. At the same time, the establishment of the three headquarters and business centers has strengthened the professional capacity of the regional headquarters, created a lean, efficient, professional and coordinated financial management and project management team, so that the Group's financial management center and project management center can better participate in, serve and support the business of each company, and comprehensively enhance the efficiency of the company's organizational operations.
II. Risks and countermeasures faced by the company (1) Risks of project selection The company actively participates in the government and social capital cooperation mechanism in the field of "three agriculture and three water", and has accumulated sufficient experience in government and social capital cooperation projects through specific project cooperation. This model emphasizes a partnership coordination mechanism of the Company, aiming at maximizing the *** common interests, so as to realize "benefit *** enjoyment, risk *** sharing and full cooperation" with the government, effectively reducing project risks and facilitating the return of funds at a later stage. However, the model still exists a certain risk, first of all, the policy, although in recent years the relevant policy landing accelerated, but overall still need to be improved. Secondly, the investment amount of such projects is often larger, the cooperation period is longer, in the actual operation of the impact of various aspects, the project's profitability may be lower than the expected level, thus bringing operational risk. If the Company does not make a proper selection of these social capital investment projects and has insufficient risk control ability, it may bring corresponding risks to the Company. In line with the future development direction and trend of China's agriculture, the Company draws on the business model and successful experience of leading international water-saving enterprises, seizes market resources at the non-government end, and creates a characteristic business model in the field of future farm services. Under this model, the company mainly faces non-government customers such as farmers and agricultural groups, and may face the risk of downstream customers due to many factors such as macroeconomics, capital, market and the uncertainty of agricultural cultivation itself. Countermeasures: First of all, while exploring the mode of cooperation between the government and social capital, the Company continuously improves its internal risk control management system, sets up an investment decision-making committee, and strengthens technical analysis, financial judgment, feasibility study and risk assessment of the projects. Meanwhile, during the project research period, the Company focuses on selecting partners and local governments with good financial status, strong strength and high credibility, and tries its best to avoid pre-project risks. Secondly, when the company lays out and carries out the farm service business, it adheres to the principle of steady progress and cooperation***winning, consciously chooses to cooperate with corporate clients with national influence, larger scale and stronger risk-resistant ability, and actively and proactively cooperates with all kinds of service providers and partners in the circulation system of agricultural products and farm materials for mutual benefit. (2) Risks in the allocation of resources required for the project In recent years, as the company's scale of operation and business scope continues to expand, the business model of the diversity of the extension of the development of the project itself needs to come from the funds to match the talent team, product supply, engineering construction, professional board support and so on all aspects of the allocation of resources to support the company's R & D system, the extension of the investment system, the decision-making support system and other departments of the volume of the company is also in the The volume of the company's R&D system, outreach investment system, decision-making support system and other departments is also increasing rapidly, which puts forward higher requirements for the company to unify and coordinate at the group level and effectively allocate resources, and puts forward higher requirements for the leadership of the management cadres, their ability to manage business risks and adapt to rapid changes. In the future, if the Company fails to adapt to the changes in the Company's internal and external environment due to its organizational structure, management model and coordination mechanism, etc. and fails to provide adequate support for the allocation of resources for the Company's business development, the Company's operation and development may be adversely affected. Countermeasures: First, the Company will draw on the advanced cultural systems of modern Internet enterprises such as Alibaba to strengthen the implementation and application of the principles of "Customer First, Teamwork, Embracing Change, Integrity, Passion, and Dedication", which will be integrated with Dayu's core values, and to unify the thoughts and beliefs of all employees, especially the management and cadres, with respect to the Company's corporate culture and values. Concepts Second, in accordance with the needs of the Group's development, the Company has strengthened platform management, improved overall efficiency, realized resource interoperability***, promoted effective integration among companies from the top down in the various business segments in which the Company operates, progressively improved the management system between the Group and its various business subsidiaries, and established internal operational and supervisory mechanisms compatible with the Group's development, to ensure that the Company's overall operations are healthy and safe. Thirdly, the Company will fully respect the rights of each holding company. Thirdly, the Company will fully respect the differences in the management systems of the holding companies, continuously improve the relevant internal control systems and processes in terms of corporate governance, development strategies, market synergies, talent incentives and other aspects, and strengthen internal control and cultural integration in order to achieve the most effective integration of resources. (3) Risk of competition in new business areas The Company has formed a relatively obvious competitive advantage in the construction of high-standard farmland and social capital investment in farmland operation business, and has a relatively prominent first-mover advantage in farmland Internet of Things and future farm service business. As the country vigorously implement the strategy of rural revitalization and poverty alleviation, the policy support and market orientation *** with more and more social capital and business entities to enter the field of agricultural investment and operation services; at the same time, the company's main business is further extended to the field of energy conservation and environmental protection of rural sewage treatment, although the company in the engineering and construction, team equipment, equipment and technology, and so on, has a relatively full reserve and project Although the company already has sufficient reserves and project operation experience in many aspects such as engineering construction, teaming, equipment and technology, it is still facing competition with the traditional advantageous enterprises in this field. Therefore, the competition faced by the company in these new business areas may be intensified, and there is a certain degree of competition risk. Countermeasures: Firstly, the Company attaches importance to giving full play to its unique advantages in the farmland Internet of Things and future farm service business, firmly grasping the strong and effective monopoly relationship formed by the Company's farmland operation covering the area of farmland and the farmers it serves, highlighting the advantages of the whole industry chain and overall resource allocation, and systematically obtaining the franchise rights of the farmland operation areas with high value-addedness, so as to enhance its own competitiveness in these business areas; secondly, the The company focuses on the first single project of rural sewage treatment, Tianjin Wuqing project, accumulate experience, learn from the innovation, play the company through twenty years of agricultural water cultivation to form a more profound understanding of agriculture, rural areas and farmers, to establish and improve suitable for the operation and maintenance of rural sewage treatment facilities of the whole set of programs and mechanisms.
Third, the core competitiveness analysis 1, industry-leading advantage The company's business covers the "three agriculture and three water" industry chain, especially in the field of agricultural water conservation in the industry's leading position, with an absolute strong and advantageous position, all kinds of product performance to reach the international leading level. The company's intelligent water business segment after the development of recent years, has formed a smart irrigation system, water and fertilizer system, water station network system, well power dual control system, metering and billing system, sewage management system, intelligent river (lake) information management system and other eight aspects, with outstanding technical advantages, can provide end customers with a complete solution for precision irrigation, soil and water environment and information technology. Under the current positive industrial policy and favorable environment for the development of private enterprises, the company will give full play to its leading position in the industry, and grasp the historical opportunities to achieve leaping development. 2、Business Synergy Advantage Based on the consideration of strategic layout, the company has set up three major headquarters in North China, Southwest China and Northwest China, as well as the overseas market centered on the Israeli company, and has formed eight major business support boards, namely, R&D and planning, capital financing, project design, engineering and construction, intelligent manufacturing, intelligent water, operation and maintenance, and rural environment. The company's market basically covers the whole country and some overseas regions, and the eight business segments comprehensively cover the whole industry chain of "three agriculture and three water", the market and business layout become more perfect, the synergy between the business segments becomes more and more smooth, and the ability to undertake the whole industry chain is more complete, which highlights the core competitiveness and industry leader of the company under the enhancement of the synergistic effect of the whole company. With the improvement of overall synergy effect, the company's core competitiveness and industry leading advantages have been emphasized. 3. Advantage in technology research and development The company has established the Dayu Research Institute, which is staffed with more than 30 professors and other high-end talents, and possesses four scientific research and technological innovation platforms, including the National Outstanding Academician Expert Workstation, the Strategic Alliance of Water-saving Irrigation Industry Technology, the National and Local Joint Engineering Laboratory, the Water-saving Irrigation Technology Research Institute and the Water-saving Irrigation Technology Research Center. The company's technology research and development field is widely spread across the whole industrial chain, and currently has more than 400 patents and 40 scientific research achievements, which can provide scientific and technological support for the integrated solutions of modern agriculture. The company's own comprehensive intelligent water conservancy cloud platform and management system, featuring accurate perception, extensive connection, scientific decision-making and intelligent management, can realize the management of the whole cycle of agricultural water projects and traceability of agricultural products, help improve scientific decision-making and scheduling management, promote the comprehensive construction of agricultural water Internet of Things and accelerate the process of China's agricultural modernization. The company has formed the core technology capacity in the field of drip uniformity, automatic filtering and cleaning and sewage disposal, hair pipe laying, system control, precision drip irrigation, copper eliminating root anti-negative pressure and anti-clogging, etc. The performance of the products has been ranked among the international advanced ranks, and at the same time, it has formed the automated information integrated processing system covering the whole industry chain of "three agriculture and three water". Scientific research and technological innovation and the transformation of the results (002001) to enhance the company's core competitiveness, enhance the company's R & D and innovation strength, and consolidate the enterprise's leading position in the industry. 4、Model Innovation Advantage From the initial production of water-saving products, to the construction of agricultural water projects and sales of agricultural water products integrated model, to the comprehensive operation and service model of agricultural water projects, the company has done a long way in the business model of innovation and practice. In terms of high-standard farmland construction, the company has developed Dayu drip irrigation products with international leadership, design concepts of advanced level in China, and benchmark projects that have been well received by users. In the area of social capital investment in farmland operation, the Company has explored the Yunnan Yuanmou model of successful government and social capital investment in farmland operation, the Xinjiang Shaya model, the Inner Mongolia Tongliao model, and a number of other highly effective and innovative agricultural water operation projects, which have been replicated and popularized nationwide, and which have had a good branding demonstration and driving effect. At this stage, the company relies on the basic conditions of agricultural "water network + information network + service network", grasps the market and the government's high-quality resources, focusing on the "technology and services" as the core development strategy, and gradually build a set of agricultural water projects to provide diagnosis, planning, financing, design, construction, intelligent manufacturing as a whole, and for the agricultural water industry, We will gradually build a modern agricultural science and technology service company that integrates diagnosis, planning, financing, design, construction, intelligent manufacturing of agricultural water projects and provides value-added service support of farmland IOT technology and operation and maintenance management for end customers. 5、Professional Operation Advantage In recent years, the company's construction of single project scale increases, the participation of social capital *** construction projects increase, professional SPV operation and management company geometrically, in the construction and operation of agricultural water projects have accumulated rich experience and mature management process. With the talent resources accumulated over the years, the company has set up an agricultural water operation and management service team with wide professional coverage, strong technical level and rich management experience, which can effectively and quickly serve the national and even international markets, and provide fine, precise and quantitative convenient services for the development of modern agriculture. The company focuses on large-area operation and management, fully utilizes "Internet+" and modern agricultural IOT terminal management technology, business support **** enjoyment technology, intelligent agriculture technology, data cloud technology, agricultural 5G revolution and other high-tech means to gradually build a scientific and technological service system to serve the operation of agricultural water projects, and collects, collects, processes, transmits, and provides system solutions through the IOT management platform. Through the IOT management platform, collecting, collecting, processing, transmitting, providing system solutions and connecting sales channels, the company realizes the effective promotion of agricultural technology and the interconnection of IOT operation services, and accelerates the process of agricultural modernization. 6、Management Team Advantage Through continuous accumulation of technology and introduction of talents, the company gradually gathers experts from all walks of life in the industry and capital, and establishes a core business team including engineering, technology, intelligence, market, capital, operation and service. The company's core management team has an open, cooperative, cutting-edge business concepts and keen insights, forward-looking proposed relying on the three-network convergence of both hands for the strategic transformation of agricultural technology and services.