YISHENG(SZ:002458)2016-04-25 16:00Financial Performance - The company's operating revenue for 2015 was ¥604,290,341.75, a decrease of 28.22% compared to ¥841,921,368.35 in 2014[16]. - The net profit attributable to shareholders was -¥400,635,604.24, representing a decline of 1,804.10% from a profit of ¥23,510,039.58 in 2014[16]. - The net cash flow from operating activities was -¥261,497,296.97, a decrease of 473.38% compared to ¥70,034,625.38 in 2014[16]. - Basic and diluted earnings per share were both -¥1.43, a drop of 1,887.50% from ¥0.08 in 2014[16]. - The total assets at the end of 2015 were ¥1,754,795,712.09, a decrease of 3.82% from ¥1,824,511,259.19 at the end of 2014[16]. - The net assets attributable to shareholders decreased by 54.36% to ¥321,305,275.71 from ¥703,936,083.03 in 2014[16]. - The company reported a non-operating income of ¥3,157,698.53 in 2015, significantly lower than ¥72,633,251.25 in 2014[21]. - The company reported a total revenue of ¥604,290,341.75, a decrease of 28.22% compared to the previous year[41]. - The net profit attributable to shareholders was -¥40,063,560, representing a decline of 1,804.10% year-over-year[41]. - Chicken revenue accounted for ¥484,512,554.38, which is 80.18% of total revenue, down 34.46% from the previous year[44]. - Pig revenue increased by 30.19% to ¥53,052,388.53, making up 8.78% of total revenue[44]. - Milk revenue rose by 3.56% to ¥55,306,123.65, representing 9.15% of total revenue[44]. - Revenue from Shandong region was ¥430,568,482.46, a decrease of 34.21% year-over-year, accounting for 71.25% of total revenue[45]. - The gross margin for chicken revenue dropped to -50.85%, a decline of 59.46% compared to the previous year[47]. Business Operations - The main business of the company includes breeding and selling parent stock chickens, producing and selling commercial broilers, and dairy farming[25]. - The company focuses on the introduction, breeding, and promotion of high-quality livestock breeds, primarily parent stock broilers and layers[25]. - The livestock industry is a key sector in China's economy, with government policies supporting its development and modernization[29]. - The company imports grandparent stock chickens for breeding, which undergoes a series of processes to produce qualified parent stock chicks[27]. - The company’s main products include parent stock broilers, parent stock layers, and various types of pigs, catering to different market segments[26]. - The livestock industry is experiencing rapid growth, with an emphasis on scale, standardization, and industrialization, supported by national agricultural policies[29]. - The chicken industry in China has seen a production increase from 2.66 million tons in 1990 to 17.51 million tons in 2014, a growth of 557.48%[30]. - By 2025, China aims to cultivate over 40 new chicken breeds, with a market share of domestically bred varieties exceeding 60%[31]. - The white feather chicken industry is crucial for modern animal husbandry, with the breeding of parent stock being a key link in the production chain[31]. - The establishment of the China White Feather Chicken Alliance in 2014 aimed to control the supply of breeding stock to address overcapacity and losses in the industry[32]. - The company is the largest breeder of grandparent stock chickens in China, maintaining the top market share in parent stock breeding for several years[36]. - The company's production capacity for parent stock chickens is over 2 million sets, positioning it among the top three in the domestic market[36]. - The company has seen a year-on-year increase in the value contribution from commercial broilers, diversifying its revenue sources[36]. - The company actively participates in industry self-regulation measures to mitigate risks and promote sustainable development in the white feather chicken sector[40]. Financial Management and Investments - Fixed assets in construction increased by 50.36% compared to the beginning of the year, primarily due to investments in the Jiangsu Yitai Feed Factory[35]. - R&D investment surged by 175.78% to ¥5,310,879.00 in 2015 from ¥1,925,800.00 in 2014, representing 0.88% of operating revenue[58]. - Operating cash inflow decreased by 32.47% to ¥622,345,586.52 in 2015 from ¥921,548,126.49 in 2014[60]. - Short-term borrowings increased by 37.87% to ¥983,000,000.00 in 2015, primarily due to significant losses and the need for working capital[64]. - Investment cash inflow decreased by 67.76% to ¥3,282,363.60 in 2015 from ¥10,181,224.00 in 2014[61]. - Financing cash inflow increased by 57.33% to ¥1,533,797,019.00 in 2015, driven by increased bank loans to address liquidity needs[61]. - The company has ongoing investments in long-term equity, which increased to CNY 340,738,932.95 from CNY 298,166,676.08[191]. Risk Management - The company has identified risks related to reliance on foreign suppliers and breeding technologies, product price fluctuations, and biosecurity[4]. - The company faces risks related to reliance on foreign suppliers for breeding technology, which could impact the import of grandparent stock if suppliers reduce output due to disease or other reasons[74]. - The company has experienced a decline in poultry product prices due to insufficient market demand, adversely affecting business performance[75]. - The company emphasizes the importance of biosecurity measures to prevent disease outbreaks in its poultry operations[76]. - The company is actively expanding procurement channels to ensure a stable supply of raw materials and mitigate cost increases from price fluctuations[77]. Shareholder and Governance - The company plans not to distribute cash dividends or bonus shares for the year[4]. - The company has not distributed cash dividends in the past three years due to negative retained earnings, with net profits of -400.64 million yuan in 2015[80][82]. - The company confirmed that there is currently no direct or indirect competition with its business from its controlling shareholders or related parties[86]. - The company has fulfilled all commitments made by shareholders and management during the reporting period[86]. - The company is committed to using raised funds for approved purposes and will not invest in financial assets or companies primarily engaged in trading securities[87]. - The company will manage raised funds in a dedicated account and sign a tripartite supervision agreement with the sponsor and the bank after the private placement is completed[87]. - The company strictly adheres to the "Measures for the Administration of the Use of Raised Funds," ensuring compliance with the designated purposes of the non-public offering[88]. - The board of directors and relevant governance bodies will enhance post-supervision of the use of raised funds, with special verification reports issued annually by the accounting firm[88]. - The company has established a clear framework for the management and supervision of raised funds, enhancing transparency and governance[88]. - The company has maintained a consistent leadership structure since 2013, with key personnel serving multiple terms[145][146]. - The company has a total of 9 board members, 3 supervisory board members, and 5 senior management personnel, indicating a stable governance structure[145][148]. - The company has established an independent financial accounting department, enabling autonomous financial decision-making[166]. - The company has a robust internal audit system with 3 dedicated auditors to oversee financial and operational integrity[163]. Employee Management - The company has a performance evaluation system linking the remuneration of directors and senior management to their work performance[151]. - The company emphasizes employee training, focusing on professional skills and corporate culture, leading to improved overall employee capabilities[158]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 311.86 million[152]. - The company employed a total of 2,787 staff, with 2,034 in production roles[155]. - The chairman received a total remuneration of CNY 60.34 million during the reporting period[152]. - The first vice chairman and general manager received CNY 46.87 million in remuneration[152]. Compliance and Legal Matters - The company has not experienced any major accounting errors requiring retrospective restatement during the reporting period[94]. - The company did not report any significant changes in accounting policies or estimates compared to the previous year's financial report[92]. - There were no significant lawsuits or arbitration matters during the reporting period[98]. - The company did not experience any penalties or rectification issues during the reporting period[99]. - The company has no entrusted financial management or loan situations during the reporting period[116][117]. Social Responsibility - The company actively participates in social responsibility initiatives, including funding local infrastructure and providing scholarships for impoverished students[123]. - The company emphasizes resource recycling by converting waste into organic fertilizer, generating income while addressing environmental pollution[121]. - The company has established long-term grain purchase relationships with farmers, significantly contributing to their income[121].