Financial Performance - In 2018, the company achieved a sales revenue of RMB 2.89 billion, with a gross profit of RMB 940 million[12]. - In 2018, the company's sales revenue increased by 6.7% to RMB 2,887.2 million from RMB 2,706.8 million in 2017[18]. - The gross profit decreased by 13.2% to RMB 939.6 million in 2018, down from RMB 1,083.0 million in 2017[18]. - The loss attributable to equity holders increased from RMB 1,015.3 million in 2017 to RMB 2,225.2 million in 2018[18]. - The sales revenue of raw milk rose by 60.1% from RMB 1,279.2 million in 2017 to RMB 2,047.7 million in 2018[20]. - The sales revenue from liquid milk decreased by 41.2% from RMB 1,427.7 million in 2017 to RMB 839.4 million in 2018[25]. - The average selling price of organic raw milk dropped by 17.1% from RMB 4,571 per ton in 2017 to RMB 3,789 per ton in 2018[23]. - The total sales volume of raw milk increased by 11.8% from 585,930 tons in 2017 to 655,294 tons in 2018[23]. - The company's liquid milk business accounted for 29.1% of total sales revenue in 2018, down from 52.7% in 2017[25]. - The sales revenue from the dairy farming segment decreased from RMB 2,502.2 million in 2017 to RMB 2,404.1 million in 2018[23]. Strategic Initiatives - The company sold 51% of its downstream liquid milk business to Mengniu Group, while acquiring minority interests in 12 farms located in the core area of its organic industry system[6]. - The strategic shift aims to enhance the company's focus on dairy farming and raw milk business, leveraging its experience and advantages in the organic industry[6]. - The strategic focus on building a safe milk source base is expected to support sustainable long-term development[6]. - The company is committed to enhancing its operational capital needs through strategic partnerships and asset integration[6]. - The company aims to focus on upstream dairy farming to ensure sustainable long-term development in the competitive dairy industry[17]. Market and Industry Trends - The Chinese dairy industry is undergoing revitalization, with a target to achieve a milk production of 45 million tons by 2025, enhancing quality and competitiveness[9]. - The government aims for over 65% of dairy farms to have more than 100 heads of cattle by 2020, with a self-sufficiency rate of 70%[9]. - The overall quality of raw milk in China continues to improve, supported by collaboration among leading dairy enterprises[10]. - The company is positioned to benefit from the growing demand for dairy products as per capita consumption continues to rise[10]. Operational Developments - The company has improved its brand recognition and reputation through innovative sales strategies and upgraded product image[5]. - The company developed 63 new market bases and established 328 new business partners in 2018[13]. - The company shipped a total of 4.822 million units through the Yunji platform in 2018, enhancing brand visibility and consumer acceptance[14]. - The company established an organic feed base covering over 200,000 acres and built a processing plant with an annual capacity of 70,000 tons of organic fertilizer[15]. - The company has established a comprehensive organic feed management system, becoming a demonstration base for large-scale organic farming in China[15]. Financial Position and Liabilities - Total current assets decreased to RMB 2,048.2 million as of December 31, 2018, down from RMB 3,604.3 million in 2017[37]. - Current liabilities increased to RMB 4,573.4 million as of December 31, 2018, from RMB 4,341.6 million in 2017[41]. - The financial leverage ratio was 82.3% as of December 31, 2018, compared to 62.3% in 2017[45]. - The company had cash and bank balances of RMB 77.3 million as of December 31, 2018, down from RMB 582.3 million in 2017[45]. Corporate Governance - The board consists of nine directors, including three executive directors and three independent non-executive directors[130]. - The company has adopted and complied with the Corporate Governance Code as per the Hong Kong Stock Exchange's listing rules[127]. - The company has established effective internal control systems for risk assessment[128]. - The board has delegated certain functions to various committees, including the audit committee and remuneration committee[129]. - The company encourages continuous professional development for all directors, providing training on responsibilities, insider trading regulations, and market misconduct[137]. Environmental and Social Responsibility - China Shengmu's sustainable development efforts have transformed over 200,000 acres of desert into quality grasslands and built 11 reservoirs in the Ulan Buh desert[162]. - The company emphasizes environmental responsibility, creating a green industry chain and adhering to all relevant environmental laws and regulations[190]. - The company has implemented a strict quality management system, ensuring that all products meet organic standards without any preservatives, artificial colors, or flavors[176]. - The company has established a comprehensive product traceability system, recording all agricultural activities and maintaining real-time health records for each cow, ensuring full traceability of feed and milk production[184]. - The company has committed to complying with regulations and contributing to local economic development through job creation and tax contributions[171].
中国圣牧(01432) - 2018 - 年度财报