Financial Performance - In the fiscal year 2018, the company recorded revenue of RMB 1,403.7 million, an increase of 5.1% from RMB 1,335.7 million in 2017[25]. - The gross profit for 2018 was RMB 121.4 million, representing a 10.1% increase compared to RMB 110.2 million in 2017[15]. - The net profit attributable to shareholders was RMB 5.7 million, a significant recovery from a loss of RMB 15.8 million in 2017[25]. - The basic earnings per share for 2018 was RMB 1.3, compared to a loss of RMB 3.7 per share in 2017[14]. - Total revenue for the fiscal year 2018 was RMB 1,403,673,000, reflecting a 5.1% increase compared to RMB 1,335,667,000 in 2017[52]. - Sales revenue increased by 5.1% from approximately RMB 1,335,700,000 to RMB 1,403,700,000 in fiscal year 2018[46]. - Gross profit rose by 10.1% to RMB 121,400,000, with the gross profit margin increasing from 8.3% in fiscal year 2017 to 8.6% in fiscal year 2018[46]. - The overall gross profit margin improved slightly from 8.3% in 2017 to 8.6% in 2018, driven by increased prices and demand for high-value processed chicken products[58]. Revenue Sources - Processed food remained the main source of profit, contributing RMB 807.2 million or 57.51% of total revenue in 2018[17]. - Revenue from the production and sale of frozen and chilled chicken products increased by 18.3% to RMB 318,100,000, driven by increased demand due to the swine fever epidemic[48]. - Revenue from processed food products rose by 16.8% to RMB 807,200,000, benefiting from higher demand for chicken and related products[48]. - Revenue from refrigerated and frozen chicken meat rose by 18.3% to RMB 318,053,000, driven by increased demand for chicken products due to the impact of swine fever[54]. - Revenue from sales in China grew by 5.2% to RMB 745,816,000 in the fiscal year 2018[57]. - Export sales revenue increased by 4.9% to RMB 657,857,000, mainly due to the depreciation of RMB and higher demand for chicken products from European and Japanese customers[56]. Operational Strategy - The company continues to adopt a prudent operating strategy to enhance performance and manage costs effectively[46]. - The company aims for sustainable growth and global leadership through a relentless pursuit of strategic initiatives[26]. - The company will focus on product differentiation and developing sales channels in the coming years[27]. - The R&D team will leverage its capabilities in high-value processed foods, health, and biological products[27]. - The company aims to reduce costs by divesting underperforming businesses to ensure sufficient cash resources for current and future cash flow needs[27]. - Resources will be reallocated to working capital or invested in projects that enhance overall profitability[27]. Financial Position - As of December 31, 2018, the group's property, plant, and equipment decreased by 9.4% to approximately RMB 677,600,000, primarily due to depreciation and the sale of assets[65]. - Inventory decreased by 27.0% to approximately RMB 124,900,000, attributed to improved market conditions and increased sales[69]. - Trade receivables increased by 25.1% to approximately RMB 122,700,000, mainly due to higher sales during the year[69]. - Cash and cash equivalents increased by approximately 57.7% to about RMB 588,000,000, with RMB 291,100,000 of bank deposits pledged against trade payables[69]. - Trade payables increased by 92.4% to approximately RMB 507,200,000, primarily due to the increase in pledged bank deposits[70]. - The group's net asset value as of December 31, 2018, was approximately RMB 665,100,000, with total assets of RMB 1,763,900,000[72]. - The current ratio improved, with current liabilities netting approximately RMB 178,200,000, down from RMB 232,900,000 in the previous year[72]. - The debt-to-asset ratio was 69.2%, a significant decrease from 93.7% in the previous year, indicating improved financial stability[75]. Governance and Management - The company has established a clear distinction between the roles of the Chairman and the CEO, with Mr. Fang Yu serving in both capacities to provide strong leadership and effective business decision-making[99]. - All directors are encouraged to actively participate in board matters, ensuring that diverse opinions are considered and discussed during meetings[107]. - The company has implemented a governance policy that requires all directors to be re-elected at least every three years, ensuring accountability and transparency[117]. - The company has maintained a balanced composition of executive and non-executive directors, including independent non-executive directors, to facilitate independent judgment[113]. - The company has established a shareholder communication policy to ensure effective engagement with shareholders and encourage their participation in meetings[107]. - The board has established written guidelines regarding employee trading of the company's securities, adhering to the standards set forth in the listing rules[126]. - The company has provided new directors with comprehensive onboarding materials regarding their responsibilities and relevant regulations[123]. - The board is committed to ensuring that all directors dedicate sufficient time and attention to the company's affairs[124]. Risk Management - The board evaluates and determines the nature and extent of risks acceptable to achieve strategic goals, ensuring effective risk management and internal control systems are in place[150]. - The board conducts an annual review of the risk management and internal control systems, covering all significant monitoring aspects, including financial, operational, and compliance controls[152]. - The company has established procedures for identifying, assessing, and managing significant risks, ensuring accountability at the board level[157]. - The internal control and risk management systems are deemed effective as of December 31, 2018[195]. - The company has outsourced its internal audit function to an external auditor, ensuring adequate resources for effective performance[159]. Audit and Compliance - The Audit Committee is responsible for specific duties as outlined in the corporate governance report, which includes reviewing financial reporting and internal controls[164]. - The audit committee's meeting records are maintained by the company secretary, ensuring transparency and proper documentation[162]. - All audit committee members during the review year were not former partners of the external auditor, maintaining independence[162]. - The company ensures compliance with financial reporting and listing rules, maintaining effective operational procedures[155]. - The company is committed to ensuring financial statements reflect a true and fair view of its condition according to International Financial Reporting Standards[200].