JINYU(SH:600201)2019-04-28 16:00Financial Performance - The company's operating revenue for 2018 was CNY 1,896,608,630.19, a slight decrease of 0.23% compared to CNY 1,901,010,264.21 in 2017[24]. - The net profit attributable to shareholders for 2018 was CNY 754,465,552.70, representing a decline of 13.29% from CNY 870,094,412.79 in the previous year[24]. - The net cash flow from operating activities decreased significantly by 55.29% to CNY 422,460,842.44 from CNY 944,789,596.76 in 2017[27]. - The total assets at the end of 2018 were CNY 6,313,213,299.08, an increase of 11.08% from CNY 5,683,574,192.65 at the end of 2017[27]. - The net assets attributable to shareholders increased by 12.54% to CNY 5,031,440,737.47 from CNY 4,470,682,338.72 in 2017[27]. - The basic earnings per share for 2018 were CNY 0.67, down 12.99% from CNY 0.77 in 2017[27]. - The weighted average return on net assets decreased by 5.79 percentage points to 15.56% from 21.35% in the previous year[27]. Dividend Policy - The company plans to distribute a cash dividend of CNY 3.50 per 10 shares (including tax) to all shareholders[6]. - The company has established a cash dividend policy, aiming to distribute at least 30% of the average distributable profit over the last three years in cash[117]. - The company prioritizes cash dividends when profits are positive and cash flow is sufficient to support ongoing operations and long-term development[117]. - For the 2018 fiscal year, the cash dividend was set at 3.50 RMB per 10 shares, totaling 394,184,084.35 RMB, accounting for 52.25% of the net profit attributable to ordinary shareholders[124]. Research and Development - The company has established three national-level innovation platforms, enhancing its research and development capabilities in the animal vaccine industry[40]. - R&D expenses increased by 49.94% to 107.43 million yuan, reflecting a commitment to innovation[50]. - The company aims to enhance its R&D capabilities to respond quickly to industry changes and accelerate new product development and process upgrades[76]. - The company is in the industrial production stage for the PRRS vaccine, while the Bovine Respiratory Syncytial Virus vaccine is still in laboratory research[88]. Product Development and Market Strategy - The company launched four new products, including vaccines for foot-and-mouth disease and swine influenza, contributing to an expanding product matrix[48]. - The company plans to develop a trivalent inactivated vaccine for porcine epidemic diarrhea virus, and a bivalent inactivated vaccine for porcine D-type coronavirus in 2019[94]. - The company is preparing to submit clinical trial applications for several vaccines, including a trivalent inactivated vaccine for Newcastle disease and avian influenza[90]. - The company aims to enhance its market position by focusing on high-quality vaccine production in response to the increased demand due to the African swine fever epidemic[108]. Environmental Responsibility - The company has a wastewater treatment plant with a design capacity of 1000t/d, utilizing the "CASS activated sludge method" for wastewater treatment[158]. - The company reported no exceedance of pollution discharge standards for wastewater and air emissions during the reporting period[157]. - The company’s solid waste generated during production is treated and converted into organic fertilizer, ensuring compliance with environmental regulations[166]. Shareholder Structure and Equity - The company has a total of 899,153,416 ordinary shares, with 270,124,024 shares issued during the reporting period[168]. - The largest shareholder, Inner Mongolia Jinyu Biological Holdings Co., Ltd., holds 10.45% of the shares, with a total of 122,304,000 shares[178]. - The company has a dispersed shareholding structure and does not have a controlling shareholder[185]. - Zhang Chongyu, the chairman and president, increased his shareholding by 6,088,975 shares, bringing his total to 18,538,226 shares[193]. Risk Management - The company emphasizes the importance of risk awareness regarding future plans and development strategies[7]. - The company faces risks from the livestock industry's epidemic, which could lead to a decrease in vaccine demand due to uncertainties surrounding African swine fever[113]. - Increased competition from international vaccine manufacturers entering the domestic market poses a significant challenge to the company[113]. Social Responsibility - The company has established a partnership model for poverty alleviation, contributing 131,000 CNY to assist employees in need[153]. - The company is actively involved in social responsibility initiatives, including providing technical support for livestock farming[153].