TRS(SZ:002567)2021-04-01 16:00Financial Performance - The company's operating revenue for 2020 was CNY 18,513,676,056.52, representing a 20.67% increase from CNY 15,342,862,854.89 in 2019[36]. - The net profit attributable to shareholders for 2020 was CNY 950,338,411.29, a significant increase of 369.64% compared to CNY 202,356,036.97 in 2019[36]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 919,332,427.82, up 353.23% from CNY 202,841,340.16 in 2019[36]. - The basic earnings per share for 2020 was CNY 1.07, a 345.83% increase from CNY 0.24 in 2019[39]. - The total assets at the end of 2020 were CNY 10,280,076,176.12, reflecting a 41.19% increase from CNY 7,280,901,133.41 at the end of 2019[39]. - The net assets attributable to shareholders at the end of 2020 were CNY 5,337,000,309.95, which is a 60.48% increase from CNY 3,325,654,718.44 at the end of 2019[39]. - The cash flow from operating activities for 2020 was CNY 1,045,813,495.11, a 92.93% increase from CNY 542,069,996.34 in 2019[36]. - The company reported a weighted average return on equity of 25.68% for 2020, up from 5.84% in 2019[39]. Market and Industry Insights - In 2020, corn prices increased by 50% due to reduced supply, while soybean meal prices rose by approximately 30%[6]. - The company reported that the pig farming industry is currently experiencing high profits, but potential overcapacity could lead to prolonged low prices in the future[12]. - The pig market experienced tight supply conditions, leading to sustained high prices, which significantly impacted profitability[54]. - The average price of live pigs in China reached 33.6 CNY/kg in December 2020, slightly higher than the same period last year[55]. Operational Strategies - The company implemented centralized procurement for key raw materials, enhancing bargaining power and forming strategic reserves for corn and soybean meal[9]. - The company adopted a "3+1" pig farming model to mitigate price volatility risks in the pig market, focusing on the entire industry chain from feed to meat products[10]. - The company is focusing on enhancing biosecurity measures and improving management efficiency to boost profitability[53]. - The company is positioned as a major player in the integrated pig industry chain, emphasizing a comprehensive approach to feed production, pig breeding, and meat processing[50]. - The company has built a strong management team with expertise in genetics, veterinary science, and feed nutrition, enhancing its competitive edge in the industry[77]. Investment and Growth Plans - The company expects to sell 5.6 million tons of commercial feed and 2 million pigs in 2021, indicating growth in its three main industries[64]. - The company plans to invest approximately 4 billion RMB in 2021 for pig production capacity construction, with a focus on increasing capacity by 1.3 million pigs at Longhua Agricultural Management Team[156]. - The company aims to achieve a target of 10 million pigs slaughtered by utilizing a partnership mechanism to share risks and benefits in pig farming projects[75]. - The company aims to achieve a target of 10 million pigs sold over five years, focusing on expanding pig farming in regions such as Hunan, Guangdong, Guangxi, and Hainan[176]. Research and Development - The company has developed a series of biological feed products using core technologies, improving feed digestibility and reducing waste emissions, which enhances animal health and meat quality[70]. - The company is focused on developing high-cost performance products to ensure sustainable development in the livestock and aquaculture industries[116]. - The number of R&D personnel increased by 6.81% to 659 in 2020, representing 6.79% of the total workforce[117]. - Research and development expenses increased by 25.88% to ¥206,156,897.17[106]. Financial Management and Profit Distribution - A cash dividend of 1.3 yuan per 10 shares (including tax) was approved for distribution to shareholders based on a total share capital of 1,206,017,542 shares as of March 8, 2021[19]. - The cash dividend for 2020 represents 100% of the total profit distribution amount[179]. - The company has a complete decision-making process for profit distribution, ensuring the protection of minority shareholders' rights[176]. - The independent directors confirmed that the profit distribution plan for 2019 was legal and beneficial for the company's sustainable development[176]. Risk Management and Compliance - The company will strictly adhere to regulations regarding related party transactions to protect its interests[190]. - The company has made commitments regarding the authenticity and completeness of information disclosed during asset restructuring[196]. - The company aims to minimize related party transactions with its subsidiaries and ensure fairness in unavoidable transactions[199].