HAID GROUP(SZ:002311)2020-04-20 16:00Procurement and Supply Chain Management - The company reported a comprehensive procurement cost increase risk due to abnormal weather and disease impacts on the feed industry, which may lead to fluctuations in livestock inventory and feed demand [4]. - The company has established a comprehensive layout of factories in major breeding areas in China and Southeast Asia to mitigate regional risks from weather anomalies and natural disasters [5]. - The company employs a strategy of centralized procurement for bulk raw materials while also utilizing local procurement to enhance responsiveness to market changes [7]. - The company is implementing measures to manage foreign exchange risks, including careful selection of settlement currencies and the use of financial instruments to hedge against currency fluctuations [9]. - The company is focused on maintaining a balanced inflow and outflow of regional funds to control exchange rate risks associated with its international operations [9]. - The company is actively addressing risks from weather anomalies and animal diseases by expanding its factory layout across major breeding regions and overseas markets [80]. - The company is implementing measures to manage risks from raw material price volatility through strategic procurement and futures hedging [82]. Financial Performance - The company's operating revenue for 2019 was ¥47.61 billion, an increase of 12.94% compared to ¥42.16 billion in 2018 [19]. - The net profit attributable to shareholders for 2019 was ¥1.65 billion, representing a growth of 14.71% from ¥1.44 billion in 2018 [19]. - The net cash flow from operating activities surged by 213.49% to ¥3.25 billion, up from ¥1.04 billion in the previous year [19]. - Basic earnings per share increased by 17.78% to ¥1.06, compared to ¥0.90 in 2018 [19]. - Total assets at the end of 2019 reached ¥18.85 billion, an 8.57% increase from ¥17.37 billion at the end of 2018 [19]. - The net assets attributable to shareholders rose by 17.53% to ¥9.10 billion, compared to ¥7.75 billion in 2018 [19]. - The company reported a diluted earnings per share of ¥1.05, up 16.67% from ¥0.90 in the previous year [19]. - The weighted average return on equity was 19.54%, slightly down from 20.21% in 2018 [19]. - The company experienced a significant increase in cash flow from operations, indicating improved operational efficiency [19]. Product and Market Development - The company has diversified its product line to include various types of feed for livestock and aquaculture, allowing for quick adjustments in production capacity to meet market changes [8]. - The company is expanding into pig farming and food processing, enhancing its operational model and product offerings [25]. - The company’s main business includes the production and sale of aquaculture and livestock feed, high-quality aquatic animal seedlings, and animal health products [24]. - The feed business remains the largest segment, with a focus on centralized procurement and localized marketing strategies [24]. - The company has expanded its product line from aquaculture premix to various aquaculture feeds, enhancing its competitive advantage in both aquaculture and livestock feed [36]. - The company is focused on product technology development and service provision to enhance customer loyalty and market presence during challenging times [37]. - The company has a strong R&D team of over 1,000 people, investing significantly in research to enhance animal nutrition and feed formulation technology, which helps mitigate risks from raw material price fluctuations [82]. Research and Development - The company has a research team of over 1,000 people dedicated to animal nutrition and feed formulation technology, investing significant funds annually to enhance its risk management capabilities against raw material price fluctuations [7]. - The company has a research and development team of over 1,600 people, investing significant funds annually to enhance its product configuration and technical service capabilities [31]. - Research and development investment reached 428 million yuan, a 37.93% increase, with a focus on building a comprehensive R&D system across the entire industry chain [41]. - The company is investing in technology upgrades, with a budget of 50 million RMB aimed at improving production efficiency by 25% [196]. - The company has a commitment to research and development in new feed additives, which is crucial for maintaining competitive advantage in the aquaculture industry [198]. Environmental and Regulatory Compliance - The company is actively responding to environmental regulations that affect livestock farming, which may lead to a restructuring of the industry and a reshuffling of market leaders [8]. - The company’s environmental protection facilities are fully operational and comply with relevant standards, ensuring effective pollution control [158]. - The company has implemented a self-monitoring plan for environmental pollutants, with third-party monitoring confirming compliance with emission standards [161]. - The company has established emergency response plans for environmental incidents, enhancing its management capabilities [160]. - The company has complied with all environmental regulations and obtained necessary permits for its projects [159]. Social Responsibility and Community Engagement - The company actively participates in social responsibility initiatives, including poverty alleviation efforts [148]. - The company has developed an industrial poverty alleviation plan to support targeted poverty alleviation work [148]. - The company invested approximately 5.6 million CNY in new poverty alleviation projects during the reporting period [149]. - A total of 416,500 CNY was provided in donations and materials to impoverished areas in Guangxi and Fujian provinces [150]. - The company aims to integrate economic value creation with social responsibility in its ongoing poverty alleviation efforts [154]. Shareholder and Dividend Policy - The company plans to distribute a cash dividend of ¥3.5 per 10 shares, with no bonus shares issued [10]. - The cash dividend for 2018 was 3.0 CNY per 10 shares, amounting to approximately 474.39 million CNY, representing 33.01% of the net profit attributable to ordinary shareholders [90]. - The cash dividend for 2017 was 2.5 CNY per 10 shares, totaling approximately 395.38 million CNY, which was 32.75% of the net profit attributable to ordinary shareholders [90]. - The company reported a net profit attributable to ordinary shareholders of approximately 1.65 billion CNY for 2019, with a cash dividend payout ratio of 33.55% [90]. - The company has established a three-year dividend return plan (2019-2021) to ensure compliance with legal and regulatory requirements [92]. Corporate Governance and Management - The company appointed RSM China as the auditor for the 2019 financial report, with an audit fee of CNY 3.6 million [112]. - The company did not face any major litigation or arbitration matters during the reporting period [114]. - The company has a structured approach to managing external guarantees, ensuring compliance with regulatory requirements and internal policies [137]. - The company’s financial health is reflected in its ability to manage and report on substantial guarantee amounts effectively [137]. - The company has a diverse management team with expertise in finance, aquaculture engineering, and business administration, enhancing its operational capabilities [199].