TRS(SZ:002567)2019-05-05 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 net cash flow from operating activities increased by 33.27% to CNY 562,783,888.81 in 2018, compared to CNY 422,296,481.67 in 2017 [36]. - 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 company's net assets attributable to shareholders decreased by 0.79% to CNY 3,407,291,794.46 at the end of 2018, compared to CNY 3,434,371,386.95 at the end of 2017 [36]. - The company reported a quarterly revenue of CNY 4,333,979,667.97 in Q4 2018, showing a steady performance throughout the year [39]. - The company achieved a revenue of CNY 1,540,551.71 million, representing a year-on-year increase of 12.26% [48]. - The net profit attributable to shareholders was CNY 13,693.32 million, a decrease of 55.87% compared to the previous year [49]. - The company’s total profit decreased by 40.80% year-on-year, amounting to CNY 265.74 million [76]. Operational Efficiency and Strategies - The company 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 has adopted a "hedging" strategy in raw material procurement to mitigate risks associated with price fluctuations [10]. - The company is focusing on strategic acquisitions, such as the purchase of Longhua Agriculture and Animal Husbandry, to enhance its vertical integration in the feed-pig-meat supply chain [17]. - The company continues to develop a self-breeding and self-raising model, enhancing its breeding efficiency and risk control [47]. - The company has established a "1+5" self-breeding and self-raising model in Hunan, Hebei, and Henan, enhancing production efficiency and reducing fattening costs [64]. - The company is accelerating the development of the "company + farmer" model in southern regions, leveraging its own sow farms and feed customer resources [64]. - The company has built a six-part technical support system to improve pig farm management and biosecurity measures [64]. Research and Development - The company is enhancing its research and development efforts in meat products to address traditional food safety concerns [16]. - The company has increased its R&D investment in feed technology, leading to a rise in patent applications and technological advancements [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 soybean technology [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 development of liquid fermented feed is expected to lower feeding costs by 3% and increase annual revenue by over ¥10 million [107]. - The company targets a 10% increase in sales through the research of antibiotic-free feed using plant essential oils and acidifiers [108]. Market Position and Sales - The company has a strong market position in feed production, with established brands like "骆驼" and "比利美英伟" recognized for quality [63]. - The company sold 481.01 thousand tons of feed, an increase of 2.3% year-on-year [47]. - The number of pigs sold reached 681,000, marking a 25.03% increase year-on-year [47]. - Feed sales revenue reached CNY 14,285.75 million, growing by 13.68% compared to the previous year, with total feed sales volume of 481.01 million tons, up 2.3% [76][78]. - The sales volume of feed products increased by 3.10% to 4,810,146 tons, while production volume rose by 2.79% to 4,948,966 tons [83]. Risk Management and Challenges - The company is facing risks from price volatility in feed raw materials, which could directly impact production costs and profit margins [7]. - The company recorded a pig inventory impairment loss of CNY 42.99 million and goodwill impairment of CNY 30.09 million related to the acquisition of Longhua Agriculture [50]. - The African swine fever outbreak has led to a significant reduction in pig inventory, impacting supply and maintaining high pork prices [54]. - The company faced a decline in breeding profitability due to a 19.70% drop in national pig prices compared to 2017 [50]. - The average cost for large-scale pig farms increased to 14.9 RMB/kg, while for smallholders it rose to 17.33 RMB/kg [54]. Investment and Capital Expenditure - The company has invested in advanced disease prevention technologies to enhance the health of breeding pigs and control the spread of diseases like African swine fever [15]. - The company has invested 150 million yuan to establish three industrial acquisition funds in Shenzhen and Guangzhou for future acquisitions [70]. - The total investment amount for the reporting period was ¥756,775,661.53, a 27.43% increase compared to ¥593,853,392.42 in the previous year [129]. - The company’s total investment for the "Anhui Shouxian 180,000 tons high-tech biological feed project" is 51.68 million, with an actual investment of 1.26 million in the reporting period, achieving an investment progress of 99.17% [146]. Corporate Governance and Shareholder Relations - The company has conducted multiple investor relations activities throughout 2018, enhancing communication with institutional investors [172]. - The company’s profit distribution plan for 2018 was approved by the board and shareholders, ensuring compliance with corporate governance standards [175]. - The independent directors supported the profit distribution plan, affirming its legality and alignment with the company’s sustainable development goals [175]. - The company’s cash dividend policy has been transparent, allowing minority shareholders to express their opinions and ensuring their rights are protected [175]. - The distributable profit amounts to ¥754,751,393.72, with cash dividends accounting for 15.89% of the total profit distribution [183].