TRS(SZ:002567)2019-04-17 16:00Financial Performance - The company's operating revenue for 2018 was CNY 15,405,517,069.35, representing a 12.26% increase compared to CNY 13,722,510,862.87 in 2017[33]. - The net profit attributable to shareholders for 2018 was CNY 136,933,156.56, a decrease of 55.87% from CNY 310,305,494.73 in 2017[33]. - The basic earnings per share for 2018 was CNY 0.16, down 58.97% from CNY 0.39 in 2017[36]. - The total assets at the end of 2018 were CNY 6,530,823,552.97, an increase of 8.29% from CNY 6,030,827,079.54 at the end of 2017[36]. - The net cash flow from operating activities for 2018 was CNY 562,783,888.81, a 33.27% increase from CNY 422,296,481.67 in 2017[36]. - The company reported a weighted average return on equity of 4.00% for 2018, down from 10.33% in 2017[36]. - The company achieved total revenue of CNY 15,405,517,069.35, representing a year-on-year growth of 12.26%[78]. - The total profit attributable to shareholders was CNY 13,693,320, a decrease of 55.87% compared to the previous year[78]. Shareholder Returns - The company reported a total share capital of 836,570,799 shares as of December 31, 2018, with a cash dividend of 1.00 RMB per 10 shares (including tax) to be distributed to shareholders[17]. - For 2018, the proposed cash dividend is CNY 1.00 per 10 shares, amounting to CNY 82,869,522.60, which is 60.52% of the net profit attributable to shareholders of CNY 136,933,156.56[180]. - The company has maintained a consistent cash dividend policy, with cash dividends distributed in the last three years being CNY 80,188,486.05 in 2016, CNY 125,485,619.85 in 2017, and a proposed CNY 82,869,522.60 in 2018[178]. - The company's cash dividend payout ratio has increased from 39.89% in 2016 to 60.52% in 2018, indicating a stronger commitment to returning profits to shareholders[179]. - The distributable profit amounts to ¥754,751,393.72, with cash dividends accounting for 15.89% of the total profit distribution[183]. Operational Strategies - The company has implemented a "1+5" pig farming model to enhance efficiency and reduce costs, aiming to mitigate the impact of price fluctuations in the pig market[11]. - The company has established a comprehensive procurement management system to control raw material costs and ensure supply stability, utilizing centralized purchasing strategies[10]. - The company is expanding its market presence through acquisitions, such as the purchase of Longhua Agriculture and Animal Husbandry, to strengthen its supply chain[17]. - The company is focusing on environmental compliance and has established an organic fertilizer processing facility to achieve zero pollution[12]. - The company has implemented a risk management strategy to address potential outbreaks of diseases like African swine fever, which could significantly impact operations[11]. - The company aims to enhance its bargaining power through scale procurement and strategic partnerships in raw material sourcing[10]. - The company is focusing on selective investments to release pig production capacity while maintaining strong risk resistance capabilities[68]. Research and Development - The company has increased its investment in meat product research and development to address food safety concerns and enhance product quality[16]. - The company has increased its R&D investment in feed technology, leading to a rapid growth in invention patents and recognition in national science and technology awards[63]. - Research and development expenses increased by 61.08% to ¥92,617,928.91 compared to the previous year[101]. - The company aims to achieve a 20% increase in sales of nursery and piglet feed through the application of roasted soybeans[102]. - The company plans to reduce feed costs by ¥60 per ton and increase sales by 12% through research on net energy levels for growing and fattening pigs[103]. - The company targets a 10% increase in sales through the research of antibiotic-free feed using plant essential oils and acidifiers[108]. Market Dynamics - The company is facing risks from price volatility in feed raw materials, which could directly impact production costs and profit margins[7]. - The company faced a decline in breeding profitability due to a 19.7% drop in national pig prices compared to 2017[50]. - The African swine fever outbreak has led to a significant reduction in pig inventory, impacting supply and maintaining high pork prices for an extended period[54]. - Environmental policies are shifting pig farming from southern regions to northeastern and southwestern areas, affecting supply dynamics[54]. Asset Management - The company's fixed assets grew by 17.56%, primarily due to increased investment in production scale[58]. - The company's construction in progress increased by 39.35%, mainly for new pig farm projects and feed subsidiaries[58]. - The average asset-liability ratio from 2016 to 2018 was 37.11%, with operating cash flow of 1.341 billion yuan, supporting the expansion of pig farming scale[66]. - The company secured bank credit totaling CNY 2.93 billion to support its operations amid challenging economic conditions[76]. Future Outlook - The company plans to continue its market expansion and product development strategies in the upcoming year[39]. - In 2019, the company aims to achieve a pig output of 10 million heads, feed sales of 10 million tons, revenue of 100 billion yuan, and a net profit of 3 billion yuan[156]. - The company plans to increase its breeding stock by collaborating with foreign breeding enterprises and domestic universities, enhancing breeding performance and reducing feed-to-meat ratio[157]. - The company will enhance its product competitiveness by increasing R&D investment, focusing on the development of new products such as liquid feed and flavor meat products[165].