LIHUA(300761)2020-04-23 16:00Financial Performance - The company's operating revenue for 2019 was ¥8,870,466,583.29, representing a 22.96% increase from ¥7,214,329,050.45 in 2018[11]. - 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[11]. - The net profit after deducting non-recurring gains and losses was ¥1,861,657,773.53, up 53.38% from ¥1,213,739,675.24 in 2018[11]. - The net cash flow from operating activities reached ¥2,417,361,404.49, a 41.24% increase compared to ¥1,711,516,683.96 in 2018[11]. - The total assets at the end of 2019 were ¥8,565,699,180.47, reflecting a 50.49% increase from ¥5,692,038,691.93 at the end of 2018[11]. - The net assets attributable to shareholders at the end of 2019 were ¥6,824,465,464.38, a 64.52% increase from ¥4,148,135,441.09 at the end of 2018[11]. - The company reported a basic earnings per share of ¥4.9477 for 2019, which is a 38.03% increase from ¥3.5844 in 2018[11]. - The company maintained a weighted average return on equity of 33.81% in 2019, down from 37.15% in 2018[11]. - The company achieved a revenue of 8.87 billion CNY and a net profit of 1.964 billion CNY in the reporting period, with a gross profit margin of 30.87%, an increase of 4.49% year-on-year[48]. Dividend Policy - The company plans to distribute a cash dividend of 10 RMB per 10 shares to all shareholders, based on a total of 403,880,000 shares[2]. - The company distributed cash dividends of RMB 403,880,000 in 2019, representing 20.56% of the net profit attributable to ordinary shareholders[109]. - In 2018, the cash dividends amounted to RMB 484,656,000, which was 37.29% of the net profit attributable to ordinary shareholders[109]. - The company has a cash dividend policy that aims for a minimum of 10% of the distributable profit to be distributed as cash dividends annually, barring significant investment plans[105]. - The cash dividend distribution was approved by the shareholders' meeting, ensuring that minority shareholders had the opportunity to express their opinions[107]. - The company has no plans for stock dividends, maintaining a focus on cash dividends[108]. - The cash dividend distribution was executed in accordance with the company's articles of association and dividend management regulations[107]. - The company is in a mature development stage with no significant capital expenditure plans, allowing for a cash dividend ratio of at least 80%[108]. Business Operations - The company’s main business includes the breeding and sale of yellow feathered chickens, pigs, and geese, with no significant changes in the main products during the reporting period[17]. - The company operates under the disclosure requirements of the Shenzhen Stock Exchange for livestock and aquaculture-related businesses[1]. - The company has established a complete industrial chain for yellow feather chicken, enhancing its ability to respond to market fluctuations and risks[35]. - The company operates a "company + base + farmer" cooperative breeding model, which enhances breeding efficiency and product quality[23]. - The cooperative society plays a crucial role in managing risk funds and providing auxiliary services such as immunization and transportation for farmers[21]. - The company has implemented enhanced biosecurity measures due to the African swine fever outbreak, leading to increased costs[24]. - The company has established six major R&D platforms in collaboration with various universities and research institutes, enhancing its technical capabilities in breeding and production management[43]. Market Trends and Risks - The company has identified significant risks including animal diseases, product price fluctuations, and food safety risks[2]. - The yellow feather chicken industry in China is experiencing a favorable development trend, with a projected output increase of over 15% in 2019[27]. - The national poultry output reached 14.641 billion birds, an increase of 11.9% year-on-year, with poultry meat production rising to 22.39 million tons, up 12.3%[27]. - The yellow feather chicken industry is shifting towards a standardized, ecological, and green development model, driven by government policies and increasing consumer demands for product quality and safety[28]. - The pork price in China has been on the rise since Q2 2019 due to supply shortages caused by African swine fever, leading to increased prices for alternative poultry products[32]. - The company is exposed to risks from animal diseases and natural disasters, which could lead to increased production costs and decreased efficiency[100]. - The company faces significant risks from price fluctuations in raw materials like corn and soybean meal, which are essential for feed production[100]. Research and Development - The company has filed 71 intellectual property applications, including 13 invention patents, and has been granted 39 intellectual property rights, including 2 invention patents[49]. - The company is focusing on the development of IoT and AI technologies to improve production efficiency and data management, including the establishment of an IoT cloud platform[44]. - The company completed several R&D projects, including the development of molecular markers for goose egg production performance, which will enhance breeding efficiency[66]. - The project on breeding high feed efficiency yellow feather broilers using metagenomics has shown that under a 70% elimination rate, the S501 line can achieve a feed conversion ratio (FCR) selection difference of -0.3[67]. - The health breeding technology system has resulted in a 2.12% higher market rate for quality yellow chickens compared to the same period last year, while reducing antibiotic usage by 30%[68]. Corporate Governance - The company has committed to fulfilling all promises made by actual controllers and shareholders during the reporting period[110]. - The company has a commitment to not transfer or entrust the management of shares held for a period of 36 months post-IPO[112]. - The company is committed to transparency and timely announcements regarding any changes in shareholding[112]. - The company has established a governance structure that includes a shareholders' meeting, board of directors, supervisory board, and senior management, ensuring effective operation[188]. - The company maintains independence from its controlling shareholder in business, personnel, assets, organization, and finance, ensuring no interference in operations[194]. Social Responsibility - The company participated in social welfare activities, donating approximately CNY 15 million to impoverished villages and households, and providing sponsorships totaling CNY 82 million[149]. - The company has invested CNY 424.06 million in poverty alleviation projects, helping 788 registered impoverished individuals to escape poverty[152]. - The company provided vocational skills training for 306 individuals, helping 57 registered impoverished households achieve employment[152]. Employee Management - The total number of employees in the company is 4,609, with 295 in the parent company and 4,314 in major subsidiaries[183]. - The salary increase for all employees in 2019 was approximately 8%, based on the company's annual performance and social GDP and CPI indices[184]. - A total of 2,280 training sessions were conducted in 2019, with approximately 68,400 participants, focusing on management and professional skills[186].