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惠生国际(01340) - 2019 - 年度财报
HUISHENG INTLHUISHENG INTL(HK:01340)2020-06-16 13:03

African Swine Fever Impact - The company faced unprecedented challenges due to the African swine fever outbreak in China, which led to the suspension of operations in the local pork market[11]. - In 2019, there were 63 reported cases of African swine fever and 390,000 pigs were slaughtered across the country, significantly impacting the pork industry[12]. - The company's pork business did not generate any revenue for the year ended December 31, 2019, due to the ongoing effects of the African swine fever outbreak[12]. - The company is closely monitoring the situation regarding African swine fever and domestic pig price trends, with expectations of continued high prices for piglets in 2020[15]. - The risk of resuming pig breeding remains high, as new piglets may become infected again, leading to significant losses[15]. - The COVID-19 pandemic has further delayed the recovery of the company's pork business due to public health measures and transportation restrictions in various provinces[15]. - The company's revenue for the year ended December 31, 2019, was approximately RMB 5,700,000, a decline of about 98.5% compared to the previous year due to the suspension of the pork business caused by African swine fever[23]. Financial Performance - The company reported a loss attributable to owners of approximately RMB 191,600,000 in 2019, a reduction from RMB 343,000,000 in 2018[26]. - The company reported a loss of approximately RMB 191,569,000 for the year ended December 31, 2019[170]. - The net loss for the year was RMB 191,569,000, an improvement from a net loss of RMB 342,965,000 in 2018, indicating a reduction in losses[189]. - Total comprehensive loss for 2019 was RMB 195,842,000, compared to RMB 339,496,000 in 2018, showing a decrease in overall losses[192]. - The company’s retained earnings as of December 31, 2019, were RMB 109,674,000, down from RMB 301,190,000 in 2018, a decrease of approximately 63.6%[199]. - Total equity decreased from RMB 834,732,000 in 2018 to RMB 638,890,000 in 2019, representing a decline of approximately 23.5%[197]. Revenue and Business Operations - The new business segment generated revenue of approximately RMB 5,700,000 in 2019, with an average gross margin of about 1.5%[23]. - The company anticipates that the pork business will resume operations in the second half of 2020 or later, with new business expected to grow steadily and generate new revenue sources[41]. - The company took measures to rent out part of its slaughterhouses and farms to an independent third party for five years at a monthly rent of RMB 760,000, ensuring a stable income source[18]. Cost Management and Expenses - Administrative expenses decreased to approximately RMB 22,000,000 in 2019 from RMB 58,300,000 in 2018, aligning with the suspension of the pork business[25]. - The company's financial expenses were approximately RMB 1,300,000 in 2019, down from RMB 8,300,000 in 2018[26]. Corporate Governance - The board consists of five members, including two executive directors and three independent non-executive directors, meeting the requirement of at least one-third being independent[104]. - The company has adopted the corporate governance code as per the listing rules and has complied with the code provisions, except for specific attendance issues at the annual general meeting[103]. - The independent non-executive directors have confirmed their independence and do not hold any shares in the company[109]. - The board confirmed its overall responsibility for the effectiveness of the group's risk management and internal control systems, which are reviewed annually[144]. Shareholder Communication - The company maintains open communication with shareholders and regularly discloses information through financial reports and shareholder meetings[154]. - The company will convene a special general meeting within two months upon receiving a valid request from shareholders holding at least 10% of the voting shares[158]. - Shareholders can submit agenda items for the general meeting with a written notice at least 21 days in advance for ordinary resolutions[162]. Asset Management - The total value of property, plant, and equipment as of December 31, 2019, was approximately RMB 158,161,000, a decrease from approximately RMB 261,733,000 in 2018[176]. - The impairment loss for property, plant, and equipment was approximately RMB 94,674,000, down from approximately RMB 207,640,000 in 2018[176]. - The total accounts receivable amounted to approximately RMB 274,029,000, an increase from approximately RMB 260,000,000 in 2018[172]. Employee Management - The company employed 42 staff as of December 31, 2019, a decrease from 245 in 2018[37]. - The management emphasizes the importance of employee development and aims to provide clear career paths and skill enhancement opportunities[74]. Risk Management - The company has established a risk management manual to clarify the roles of management, the board, and the audit committee in risk management[146]. - The audit committee regularly reviews the group's performance and risk management systems, ensuring effective measures are in place to protect key assets[144].