HAID GROUP(SZ:002311)2022-04-11 16:00Production and Capacity - The company reported a comprehensive layout of factories in major breeding areas across South China, Central China, East China, North China, and Southeast Asia to mitigate risks from weather anomalies and natural disasters[2]. - The company is adjusting its production capacity to align with the changes in the breeding industry due to environmental regulations, aiming to capture market share in new breeding areas[6]. - The company plans to increase production capacity by nearly 500 million tons, including a 200 million ton increase in special aquatic feed[58]. - The production capacity of the Qingyuan Haida project reached 240,000 tons of feed, achieving a utilization rate of 100.17%[96]. - The Nanning Haida project, with a capacity of 480,000 tons, reported a production volume of 187,383.54 million RMB, representing a utilization rate of 79.86%[96]. - The Jiangmen Rongchuan project is currently under construction, with an expected capacity of 270,000 tons of feed, projected to be operational by June 2023[99]. Financial Performance - The company's operating revenue for 2021 was ¥85,998,559,748.78, representing a 42.56% increase compared to ¥60,323,862,405.94 in 2020[17]. - The net profit attributable to shareholders for 2021 was ¥1,596,046,173.08, a decrease of 36.73% from ¥2,522,730,419.35 in 2020[17]. - The net cash flow from operating activities increased significantly to ¥3,137,948,250.69, up 546.65% from ¥485,259,232.03 in 2020[17]. - The total assets at the end of 2021 were ¥35,648,579,800.09, a 29.50% increase from ¥27,526,958,371.19 at the end of 2020[17]. - The basic earnings per share for 2021 was ¥0.96, down 40.00% from ¥1.60 in 2020[17]. - The company achieved operating revenue of CNY 85.99 billion in 2021, a year-on-year increase of 42.56%, while net profit attributable to shareholders was CNY 1.60 billion, a decrease of 36.73%[53]. Research and Development - The company has invested significantly in a research team of nearly 2,000 people focused on animal nutrition and feed formulation technology, allowing for quick adjustments to feed formulations in response to raw material price fluctuations[4]. - The company is committed to continuous investment in research and development, particularly in key technologies for microbial fermentation feed and alternatives to feed antibiotics[6]. - The company has a robust R&D team of over 3,000 people, focusing on seven key research areas, and invests significantly in R&D to support its product capabilities[44]. - The company has developed a large animal nutrition demand database over 20 years, allowing for rapid adjustments in feed formulations in response to raw material price fluctuations[45]. - The company is collaborating on key R&D projects with institutions like Ocean University of China and South China Agricultural University, focusing on functional feed development[75]. Market and Industry Trends - The total feed production in China reached over 290 million tons in 2021, marking a year-on-year growth of 16.1%[24]. - The feed industry output value increased by 29.3% year-on-year, reaching 1.22341 trillion yuan in 2021[24]. - The average price of corn reached 2,930 yuan per ton by the end of 2021, a 26.3% increase compared to the previous year[26]. - The average price of soybean meal rose to 3,790 yuan per ton, reflecting a 14.2% year-on-year increase[26]. - The demand for animal health products is rapidly increasing, with a focus on preventive measures rather than treatment, indicating a growing market opportunity[24]. - The industry is experiencing accelerated consolidation, with small-scale farmers exiting the market, favoring larger enterprises with better resources and technology[25]. Risk Management - The company has a robust risk management framework to address the volatility of raw material prices, which are influenced by various global factors[3]. - The company is focused on managing foreign exchange risks through careful selection of settlement currencies and utilizing financial instruments to hedge against currency fluctuations[8]. - The company employs a strategy of centralized procurement for bulk raw materials while also utilizing local procurement to respond quickly to market changes[4]. Customer Engagement and Services - The company is actively enhancing its service capabilities to breeding households, integrating services in animal protection, vaccines, and finance to strengthen customer loyalty[6]. - The company provides comprehensive technical services to farmers, enhancing customer loyalty and creating value through integrated breeding solutions[45]. - The company has established a comprehensive technical service system that enhances customer retention and value creation, supported by a team of over 9,000 experienced professionals[46]. Corporate Governance and Management - The company emphasizes the importance of investor relations management, utilizing various communication methods such as phone, email, and interactive platforms to enhance investor engagement[127]. - The company has established an independent financial management system, including a complete accounting framework and independent bank accounts, ensuring no interference from the controlling shareholder[129]. - The company has implemented a strict insider information management system, ensuring all insiders are informed of trading restrictions during the reporting period[128]. - The company has a clear ownership structure with independent land use rights and property ownership, ensuring proper asset management[129]. - The company has committed to continuous improvement in corporate governance, aligning with legal and regulatory standards[127]. Employee Development and Compensation - The company has implemented a salary policy that links income levels to company performance and work objectives, ensuring sustainable growth[167]. - The company emphasizes employee training and development, with a comprehensive talent cultivation system covering five levels of employees[169]. - The company has established a talent development system, with over 800 management personnel trained across various professional centers[170]. - The company has initiated a project to cultivate 100 individuals capable of independently managing talent development within regional divisions and subsidiaries[170]. Strategic Initiatives - The company aims to expand its market presence through continuous innovation and strategic investments in technology and services[38]. - The company is focusing on differentiated product development in poultry feed, with ongoing improvements in efficiency to enhance competitiveness[52]. - The company plans to establish over 1,000 service stations within five years as part of its "Thousand Station Plan" to provide technical services to farmers, enhancing its competitive advantage in the animal health sector[119]. - The company is focusing on expanding its market presence through new projects and enhancing production capabilities across various locations[96].