TRS(SZ:002567)2020-04-26 16:00Profit Distribution - The company reported a profit distribution plan to distribute a cash dividend of 2.32 RMB per 10 shares based on a total share capital of 828,695,226 shares after deducting repurchased shares[21]. - The company distributed cash dividends of 0.1 yuan per share, totaling approximately 82.87 million yuan, based on a total share count of 828,695,226 shares[171]. - The company distributed a cash dividend of RMB 1.00 per 10 shares for the 2018 fiscal year, totaling RMB 82,869,522.60, which represents 60.52% of the net profit attributable to ordinary shareholders[174]. - For the 2019 fiscal year, the company plans to distribute a cash dividend of RMB 2.32 per 10 shares, amounting to RMB 192,257,292.43, which is 95.01% of the net profit attributable to ordinary shareholders[177]. - The total number of shares eligible for the 2019 dividend distribution is 828,695,226 after deducting 7,875,573 shares repurchased by the company[177]. - The company's cash dividend payout ratio for 2019 is 23.69% of the distributable profit of RMB 811,445,935.51[177]. - The cash dividends distributed over the past three years were RMB 192,257,292.43 in 2019, RMB 82,869,522.60 in 2018, and RMB 125,485,619.85 in 2017[174]. - The company has maintained a consistent cash dividend policy, with the 2019 dividend being the highest in the last three years[177]. - The company’s cash dividends for 2019 will also include shares held under the employee stock ownership plan, which will participate in the profit distribution[177]. - The company’s independent directors confirmed that the profit distribution plan is legal and compliant, supporting the company's sustainable development[174]. - The company has a complete mechanism for profit distribution, ensuring that minority shareholders can express their opinions and protect their legal rights[174]. - The company is in a growth phase and has significant capital expenditure plans, which influences its profit distribution strategy[177]. Operational Efficiency and Risk Management - The company implemented a "1+3" self-breeding and self-raising model in pig farming to enhance operational efficiency and mitigate risks associated with price fluctuations in the pig market[12]. - The company faced risks from raw material price fluctuations, particularly for corn and soybean meal, which could directly impact production costs and gross margins[7]. - The company has established strategic raw material bases to ensure supply and broaden procurement channels, enhancing its bargaining power through centralized purchasing[11]. - The company reported that the outbreak of African swine fever has led to increased costs in disease prevention and stricter transportation regulations, affecting the pig farming business[16]. - The company has invested in advanced feeding management and disease prevention technologies to improve the overall health of breeding pigs and control transmission risks[13]. - The company aims to strengthen its meat product safety measures by acquiring large pig farming companies and enhancing the entire supply chain from feed to meat products[20]. - The company has adopted a comprehensive procurement management system to ensure transparency and efficiency in raw material procurement[11]. - The company has implemented a comprehensive biosecurity system, which contributed to improved profitability in pig farming amid rising pork prices[56]. - The company has established a comprehensive "four-layer iron barrel" African swine fever prevention system, including weekly sampling and monthly drills[62]. - The company has developed a self-breeding and self-raising model capable of producing 1 million pigs annually in a single region, enhancing cost control and food safety[63]. - The company has cultivated its own "Meishen" breeding pigs with high lean meat rates and low feed-to-meat ratios, certified by the Ministry of Agriculture[64]. - The company has invested in new technologies for disease prevention and control, improving operational efficiency[56]. Financial Performance - The company's operating revenue for 2019 was ¥15,342,862,854.89, a decrease of 0.41% compared to ¥15,405,517,069.35 in 2018[37]. - The net profit attributable to shareholders for 2019 was ¥202,356,036.97, representing a significant increase of 47.78% from ¥136,933,156.56 in 2018[37]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥202,841,340.16, up 43.68% from ¥141,179,096.02 in the previous year[37]. - The basic earnings per share for 2019 was ¥0.2419, an increase of 47.59% compared to ¥0.1639 in 2018[40]. - The total assets at the end of 2019 were ¥7,280,901,133.41, reflecting an increase of 11.49% from ¥6,530,823,552.97 at the end of 2018[40]. - The weighted average return on equity for 2019 was 5.84%, up from 4.00% in 2018[40]. - The net cash flow from operating activities for 2019 was ¥542,069,996.34, a decrease of 3.68% from ¥562,783,888.81 in 2018[37]. - The company reported a quarterly revenue of ¥4,025,832,011.84 in Q4 2019, with a net profit of ¥72,681,899.59 attributable to shareholders[43]. - Non-recurring gains included ¥9,847,187.29 from the disposal of non-current assets and ¥17,621,546.08 from government subsidies in 2019[45]. - The company's net assets attributable to shareholders decreased by 2.40% to ¥3,325,654,718.44 at the end of 2019 from ¥3,407,291,794.46 at the end of 2018[40]. - The company achieved a revenue of CNY 1,535,504.69 million in 2019, a slight decrease of 0.43% year-on-year[53]. - The net profit attributable to shareholders was CNY 20,235.60 million, representing a significant increase of 47.78% year-on-year[53]. - The company sold 467,000 tons of feed, a decrease of 2.78% year-on-year, while the number of pigs slaughtered reached 839,300, an increase of 23.31% year-on-year[53]. - Fixed assets increased by 13.59%, primarily due to investments in expanding production capacity[57]. - Construction in progress rose by 55.39%, mainly due to investments in new pig farm projects[57]. - The company achieved total operating revenue of CNY 15,342,862,854.89 in 2019, a decrease of 0.41% compared to the previous year[80]. - Feed sales accounted for 88.32% of total revenue, totaling CNY 13,550,599,496.74, down 5.15% year-on-year[80]. - The gross profit margin for the feed segment was 7.74%, a decrease of 0.58% compared to the previous year[83]. - The gross profit margin for the pig segment was 36.45%, an increase of 33.58% year-on-year[83]. Market Expansion and Strategic Initiatives - The company is actively expanding its market presence through acquisitions and strategic partnerships to strengthen its competitive position in the industry[20]. - The company expanded its marketing strategies by collaborating with platforms like Taobao and Douyin for live-streaming sales[1]. - The company is focusing on technological innovation and research in areas such as bio-feed development and antibiotic-free feed solutions[94]. - The company has established a no-antibiotic feed technology system for pigs, poultry, and fish, ensuring product quality and competitiveness while reducing feed costs[96]. - The company has developed 19 solid and 3 liquid bio-fermented feed production lines, with an annual production capacity of 2 million tons and 20,000 tons respectively[97]. - The company aims to double the sales of special aquatic feed products from 20,000 tons in 2019, enhancing market share and profitability[99]. - The company is focusing on expanding its product line in special aquatic feeds, including research on various fish and crustacean feeds[99]. - The company is committed to a full industry chain strategy in pig farming, integrating feed production, breeding, and meat processing[152]. - The company will leverage its "1+3" self-breeding model to accelerate the release of production capacity across various regions[160]. - The company is collaborating with Danish breeding firms to introduce 3,600 Danish breeding pigs to enhance its breeding capabilities[156]. - The company plans to recruit over 3,000 talents in production, engineering, environmental protection, finance, and veterinary fields to enhance its technical team capabilities[162]. - The company aims to improve its product structure and increase profitability by investing in high-margin products and establishing a unique value service model[163]. - The company is developing a fresh cold chain system and expanding its sales area, leveraging a 500,000-head pig fattening base in the Changsha-Zhuzhou-Xiangtan region[163]. Investment and Project Management - The company committed a total investment of CNY 57,145 million for various projects, with an adjusted total investment of CNY 57,250 million[120]. - The investment progress for the projects reached 100.12%, with a cumulative investment of CNY 57,383.33 million[120]. - The "Anhui Shouxian 180,000 tons high-tech biological feed project" was adjusted from an original plan of 240,000 tons, with an investment of CNY 5,167.75 million[124]. - The "Guangdong Maoming 180,000 tons high-tech biological feed project" also saw a reduction from 240,000 tons to 180,000 tons, with an investment of CNY 5,866.44 million[124]. - The company reported a loss of CNY 160.53 million from the committed investment projects[120]. - The company has not experienced any significant changes in project feasibility or expected benefits[123]. - The company utilized part of the raised funds, totaling CNY 3,326.83 million, for the "Jingzhou Xiangda Camel Feed Co., Ltd. 240,000 tons high-tech biological feed production line project"[126]. - The company has not reported any issues or other circumstances regarding the use and disclosure of raised funds[130]. - The company has temporarily supplemented working capital with idle raised funds, but this is not applicable for the current period[130]. - The company has ensured that unused raised funds are stored in designated special accounts at subsidiaries[130]. - The Anhui Shouxian project was changed from an annual production capacity of 240,000 tons to 180,000 tons, with the investment amount adjusted from 84.51 million to 51.68 million CNY[134]. - The investment progress for the Anhui Shouxian project reached 100.04% by the end of the reporting period, with a total actual investment of 51.70 million CNY[134]. - The Guangdong Maoming project also saw a reduction in planned production capacity from 240,000 tons to 180,000 tons, with the investment amount adjusted from 87.63 million to 58.66 million CNY[135]. - The total actual investment for the Guangdong Maoming project reached 58.69 million CNY, achieving an investment progress of 100.04%[138]. - The total investment for the four projects mentioned reached 172.14 million CNY, with a total actual investment of 172.98 million CNY, indicating an overall investment progress of 100.49%[138]. Subsidiary Performance - The main subsidiary, Shandong Hemei Group Co., Ltd., reported a net profit of 87.06 million CNY, contributing significantly to the company's overall performance[142]. - The subsidiary Hunan Longhua Agricultural Development Co., Ltd. reported a net profit of 204.38 million CNY, also impacting the company's net profit by over 10%[142]. - The company invested in multiple subsidiaries through direct cash investments, with some under construction and others having no current impact on overall operations[146]. Industry Context - In 2019, China's pork production was 42.55 million tons, accounting for 55.62% of total meat production, despite a 21.3% decline due to African swine fever[147]. - The average price of live pigs in December 2019 was 33.28 yuan/kg, an increase of 138.57% year-on-year[147]. - The number of breeding sows in China decreased by 31.21% year-on-year to 20.45 million by the end of 2019, indicating a significant supply-demand gap in the pork industry[150]. - The company aims to achieve a target of 10 million pigs slaughtered by expanding its breeding scale and enhancing breeding technology[156]. - The company plans to establish 10 breeding demonstration counties, each with an annual output of 1 million pigs, by the end of 2020[159]. - The company intends to reduce costs in pig farming to enhance its core competitiveness, focusing on construction, piglet, and weight gain costs[161].