TECON(SZ:002100)2018-08-21 16:00Financial Performance - The company's operating revenue for the first half of 2018 was ¥2,286,098,674.60, representing a 0.73% increase compared to ¥2,269,473,254.95 in the same period last year[21]. - The net profit attributable to shareholders decreased by 43.05% to ¥108,064,818.61 from ¥189,752,358.05 year-on-year[21]. - Basic and diluted earnings per share fell by 45.00% to ¥0.11 from ¥0.20 in the same period last year[21]. - The company reported a net profit of CNY 110,762,315.11 for the first half of 2018, reflecting a decrease in profitability compared to the previous year[162]. - The net profit for the first half of 2018 was CNY 74,147,612.20, down from CNY 98,562,712.79 in the same period last year, representing a decline of approximately 24.7%[167]. - The total comprehensive income for the first half of 2018 was CNY 74,147,612.20[184]. Cash Flow and Liquidity - The net cash flow from operating activities dropped significantly by 82.53%, amounting to ¥37,256,860.74 compared to ¥213,309,644.91 in the previous year[21]. - The company's cash and cash equivalents at the end of the reporting period amounted to CNY 1,823,887,401, representing an increase of 6.93% compared to the previous year[48]. - The net cash flow from operating activities was -113,068,920.12 yuan, compared to -38,952,360.23 yuan in the previous period, indicating a decline in operational performance[174]. - The cash flow from tax refunds received was 1,878,427.35 yuan, contributing to the overall cash inflow from operating activities[173]. - The company reported a cash flow net increase of -10,992,058.04 yuan, contrasting with a positive increase of 162,903,162.64 yuan in the previous period[175]. Assets and Liabilities - The total assets of the company increased by 5.46% to ¥6,193,423,964.13 from ¥5,872,850,839.57 at the end of the previous year[21]. - Total liabilities increased to CNY 2,434,026,270.57 from CNY 2,074,244,003.05, reflecting a growth in financial obligations[161]. - The company's total equity was CNY 3,079,582,250.99, up from CNY 3,055,177,541.77 at the beginning of the year[157]. - The company's current ratio decreased by 39.89% to 162.92% compared to the previous year, attributed to an increase in accounts receivable due to unsettled government procurement[142]. Business Operations - The feed business sales revenue increased by 4.73% to CNY 1,156,445,911.44, while the pharmaceutical business sales revenue decreased by 4.77% to CNY 253,285,548.55[35]. - The revenue from pig farming increased by 23.38% year-on-year, totaling CNY 125,864,339.55, but the gross margin decreased by 36.18%[45][46]. - The company aims to become a leading health breeding service provider and safe food supplier in China, focusing on a complete industry chain from breeding to sales[29]. - The company plans to gradually expand the "company + farmer" breeding model as its pig farming scale increases[36]. Investment and Development - Research and development investment increased by 48.37% to CNY 28,676,973.68, reflecting the company's commitment to enhancing innovation capabilities[40]. - The company plans to enhance its animal vaccine and feed business to improve market competitiveness and risk resistance[79]. - The company plans to enhance its market expansion strategies and invest in new product development to drive future growth[182]. Risks and Challenges - The company faces risks related to livestock disease outbreaks, raw material price fluctuations, and food safety issues that could impact its performance[5][6][8]. - The company faces risks from fluctuations in raw material prices, particularly corn and soybean meal, which could negatively impact its feed business[80]. - The cyclical fluctuations in livestock product prices have adversely affected the company's pig farming and feed business[81]. Shareholder and Governance - The company plans not to distribute cash dividends or issue bonus shares[9]. - The company has committed to distributing cash dividends of no less than 10% of the distributable profits achieved each year for the next three years[88]. - The company has not sold any significant assets during the reporting period[73]. - The company has not engaged in any asset or equity acquisitions or sales during the reporting period[95]. Compliance and Regulations - The financial report for the first half of 2018 has not been audited[89]. - The company has not faced any penalties or corrective actions during the reporting period[92]. - The company has committed to maintaining its independence in operations and management as per relevant laws and regulations[88].