LIHUA(300761)2021-03-31 16:00Financial Performance - The company reported a total revenue of RMB 1.2 billion for the year 2019, representing a year-on-year increase of 15%[7]. - The net profit attributable to shareholders was RMB 150 million, an increase of 10% compared to the previous year[7]. - The company's operating revenue for 2019 was ¥8,870,466,583.29, representing a 22.96% increase compared to ¥7,214,329,050.45 in 2018[12]. - The net profit attributable to shareholders for 2019 was ¥1,964,251,401.90, a 51.13% increase from ¥1,299,693,032.69 in 2018[12]. - The net cash flow from operating activities for 2019 was ¥2,417,361,404.49, an increase of 41.24% compared to ¥1,711,516,683.96 in 2018[12]. - The total assets at the end of 2019 were ¥8,565,699,180.47, a 50.49% increase from ¥5,692,038,691.93 at the end of 2018[12]. - The net assets attributable to shareholders at the end of 2019 were ¥6,824,465,464.38, reflecting a 64.52% increase from ¥4,148,135,441.09 at the end of 2018[12]. - The basic earnings per share for 2019 were ¥4.9477, a 38.03% increase from ¥3.5844 in 2018[12]. - The diluted earnings per share for 2019 were also ¥4.9477, consistent with the basic earnings per share[12]. - The company reported a quarterly operating revenue of ¥2,665,637,071.73 in Q4 2019, contributing to a total annual revenue growth[13]. Market Expansion and Strategy - The company is focusing on expanding its market presence and enhancing its product offerings through new technology and research initiatives[3]. - The company aims to increase production capacity by 20% in the next fiscal year to meet growing demand[3]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product line[3]. - The company is actively developing partnerships with online fresh food platforms and establishing its own micro-mall to expand its market presence in the Yangtze River Delta region[97]. - The company plans to expand its yellow feather chicken and pig farming businesses by replicating successful models in new regions, aiming to become a national leader in yellow feather chicken farming[97]. Risk Management - The company highlighted a significant risk related to animal diseases and natural disasters, which could impact future performance[3]. - The company has established partnerships to mitigate risks associated with raw material supply and price fluctuations[3]. - The company is committed to maintaining food safety standards to mitigate risks associated with product quality[3]. - The company is aware of the cyclical price fluctuations in the yellow feather chicken and pig markets, which could affect its profitability[100]. - The company will utilize a combination of policy agricultural insurance and commercial insurance to transfer and mitigate risks[102]. Production and Operations - The company maintains a complete industrial chain for its main business of breeding and selling yellow feathered chickens, pigs, and geese, with no significant changes in its main products during the reporting period[18]. - The company has established a complete industrial chain in pig farming, including breeding, fattening, and feed production[23]. - The company has implemented enhanced biosecurity measures due to the African swine fever outbreak, resulting in increased costs[25]. - The cooperative farming model involves farmers providing labor and facilities while the company supplies livestock and technical guidance[24]. - The company focuses on real-time monitoring of farming operations to reduce the risk of non-compliance by farmers[24]. Research and Development - The company has built a multi-layered technical research and innovation management system, collaborating with several universities and research institutes[44]. - The company completed a project on the identification of functional genes related to goose egg-laying performance, which is expected to enhance breeding efficiency[64]. - A project on antibiotic-free chicken farming was successfully completed, providing a theoretical basis for entering high-end markets and improving profitability[64]. - The company has initiated a strategic partnership with a leading veterinary technology firm to improve animal health solutions[178]. - The company is investing in IoT and AI technologies to improve production efficiency and decision-making support[45]. Financial Management and Dividend Policy - The company plans to distribute a cash dividend of RMB 10 per 10 shares, totaling RMB 40.39 million[3]. - The company distributed cash dividends of RMB 403,880,000 in 2019, which is 20.56% of the net profit attributable to ordinary shareholders[110]. - The total distributable profit for the year was RMB 1,343,255,817.61, with cash dividends accounting for 100% of the total profit distribution[108]. - The company aims to maintain a cash dividend ratio of at least 10% of the distributable profit if there are no significant investment plans or cash expenditures[105]. - The company has a policy to ensure that cash dividends are distributed at least once a year, subject to financial conditions[105]. Corporate Governance - The company has established a complete governance structure consisting of the shareholders' meeting, board of directors, supervisory board, and senior management, ensuring effective operation and compliance with relevant laws and regulations[187]. - The board of directors consists of nine members, including three independent directors, who provide valuable suggestions for the company's development[190]. - The independent directors fulfilled their responsibilities and played a significant role in the decision-making process regarding profit distribution[107]. - The company operates independently in business, personnel, assets, institutions, and finance, with no interference from controlling shareholders[194]. - The company has established an independent financial accounting system and makes independent financial decisions, with no shared bank accounts with controlling shareholders[198]. Social Responsibility and Community Engagement - The company has invested approximately 445,360,000 in poverty alleviation efforts, helping 788 registered impoverished individuals to escape poverty[151]. - The company has provided a total of approximately 320,000 in educational assistance to various universities and high schools[148]. - The company has actively participated in social welfare activities, donating a total of approximately 82,000 to local economic cooperatives and community organizations[148]. - The company has implemented pollution control measures, with wastewater and air emissions meeting national standards[155]. - The company plans to further expand its business, contributing to poverty alleviation and addressing rural issues[153].