Zhongxing BioTech(002772)2025-03-21 10:50Financial Performance - The company's operating revenue for 2024 was CNY 1,935,227,360.87, a slight increase of 0.21% compared to CNY 1,931,077,659.25 in 2023[21]. - The net profit attributable to shareholders decreased by 19.77% to CNY 128,029,452.45 from CNY 159,581,340.77 in the previous year[21]. - The net profit after deducting non-recurring gains and losses was CNY 91,771,498.85, down 30.07% from CNY 131,236,926.42 in 2023[21]. - The basic earnings per share fell by 16.52% to CNY 0.3269 from CNY 0.3916 in the previous year[21]. - Total assets at the end of 2024 were CNY 6,190,908,422.74, reflecting a 1.93% increase from CNY 6,073,765,300.40 at the end of 2023[21]. - The net assets attributable to shareholders decreased by 3.36% to CNY 3,317,126,129.96 from CNY 3,432,488,958.20 in 2023[21]. - The cash flow from operating activities was CNY 494,517,996.42, a decrease of 1.58% compared to CNY 502,479,058.21 in the previous year[21]. - The weighted average return on equity was 3.75%, down from 4.84% in 2023[21]. - The company achieved a revenue of 1.935 billion yuan in 2024, representing a year-on-year growth of 0.21%[45]. - The net profit attributable to shareholders was 128 million yuan, a decrease of 19.77% compared to the previous year[45]. - Total sales revenue reached CNY 1.933 billion, a slight increase of 0.08% compared to the previous year[64]. - Revenue from enoki mushrooms was CNY 838 million, down 8.06% year-on-year, while revenue from button mushrooms increased by 7.39% to CNY 1.079 billion[70]. Market and Industry Trends - The total production capacity of the edible mushroom industry in China exceeded 10,000 tons per day in 2023, driven by advancements in production technology[34]. - The company operates in a seasonal market, with higher demand for edible mushrooms typically observed in the first, third, and fourth quarters[37]. - The edible mushroom industry is experiencing a shift towards factory-based production, which enhances product quality and efficiency compared to traditional farming methods[33]. - The company is positioned in a growing market, benefiting from the increasing consumer preference for healthy food options[37]. - The overall market for edible mushrooms is expanding, with factory production models gaining a larger market share due to their superior quality and advanced technology[34]. - The competitive landscape in the edible mushroom industry has intensified, particularly affecting the pricing of enoki mushrooms[45]. - The company is focusing on expanding its market presence and enhancing brand development in response to policy support for the edible mushroom industry[40]. Operational Developments - The company has established production bases in several provinces including Gansu, Shaanxi, Shandong, and Jiangsu[41]. - The company employs a factory-based production model, allowing for year-round production and stable supply[46]. - The company has established a comprehensive sales model primarily through distributors, while actively exploring new sales channels and integrating resources[52]. - The company has set up a mushroom biotechnology research and development center, enhancing its research capabilities with independent laboratories and advanced monitoring equipment[53]. - The company has initiated several new projects, including the full production of enoki mushroom projects and the trial production of double mushrooms at various bases[63]. - The company is advancing its diversification strategy by promoting the industrialized cultivation of Cordyceps sinensis, aiming to create new profit growth points[62]. - The company has achieved ISO 9001:2015 certification, ensuring strict quality control throughout the production process[61]. Research and Development - The company has introduced 13 new patents during the reporting period, with 3 patents expiring, and acquired 4 new plant variety rights[55][57]. - R&D expenses increased by 20.00% to ¥15,506,983.41 compared to ¥12,922,343.53 in the previous year[77]. - The number of R&D personnel decreased by 20.63% from 160 in 2023 to 127 in 2024[79]. - The company aims to enhance product quality and market share through the development of optimized factory formulas for enoki mushrooms[78]. - The company has completed the selection of two stable strains for industrial production of enoki mushrooms, with a target yield of 417 grams per unit[78]. - The company plans to apply for 10 new variety patents for hybrid strains of button mushrooms within five years[78]. - The company is focusing on the development of liquid strains of button mushrooms to enhance production efficiency and product quality[78]. Investment and Financing - The total amount of funds raised from the issuance of convertible bonds was RMB 920 million, with a net amount of RMB 902.9 million after deducting issuance costs[95]. - The company has permanently supplemented its working capital with RMB 222.34 million from the remaining raised funds after terminating the investment project for the production line of 32,400 tons of enoki mushrooms[97]. - The company made a significant equity investment of 25.5 million yuan in Tianshui Jinxi Agricultural Biotechnology Co., holding a 51% stake, aimed at expanding its operations in traditional Chinese medicine[88]. - A new investment management company was established with an investment of 10 million yuan, fully funded by the company's own resources, indicating a strategic move towards long-term investment management[88]. - The company has set up a new entity in Xinxiang with an investment of 64.8 million yuan, focusing on the cultivation of medicinal mushrooms, which is expected to enhance its product offerings in the herbal medicine sector[90]. - The company reported a total investment of 50 million yuan in a new project aimed at the cultivation of medicinal herbs, fully funded by its own resources, reflecting its commitment to expanding its agricultural biotechnology portfolio[90]. Risk Management - The company faces potential risks in its operations, which are detailed in the management discussion section of the report[6]. - The company reported a significant operational challenge in 2024, with the price of enoki mushrooms remaining low since the second half of 2023, leading to substantial losses[63]. - The company faces risks from intensified industry competition leading to price declines, and it plans to leverage brand influence and product quality to mitigate this risk[114]. - The company acknowledges potential fluctuations in sales prices and profits due to seasonal demand variations and aims to extend its product range to reduce seasonal impacts[115]. - The company is addressing the risk of rising raw material prices by optimizing its substrate formulations and implementing centralized procurement strategies[117]. Corporate Governance - The company maintained independence from its controlling shareholders in terms of assets, personnel, finance, organization, and business operations[128]. - The financial department operates independently, with its own accounting system and decision-making processes[129]. - The company has established a transparent performance evaluation and incentive mechanism for senior management[126]. - The board of directors held a total of 9 meetings during the reporting period, with all directors present at least once[151]. - The board strictly adhered to regulations and guidelines, ensuring fair and objective decision-making to protect the interests of all shareholders[154]. Environmental Responsibility - The company holds a valid pollution discharge permit valid from December 20, 2024, to December 19, 2029[186]. - The company complies with major environmental protection laws and regulations, including the Environmental Protection Law and the Air Pollution Prevention and Control Law[184]. - The company has implemented various industry standards for environmental protection, such as the Comprehensive Emission Standard for Air Pollutants[185]. - The company has established a wastewater treatment plant with a capacity of 600 m³/d, utilizing A/O biological contact oxidation technology, ensuring treated wastewater meets the Class I discharge standards[188]. - The company has actively participated in social responsibility initiatives and environmental protection efforts, promoting clean production strategies[193]. Employee Relations - The company emphasizes employee rights protection, maintaining a fair compensation system and providing various benefits to enhance employee satisfaction and engagement[196]. - The company has implemented a talent development mechanism, collaborating with agricultural universities for talent cultivation and offering scholarships to outstanding students[198]. - The company has established a tiered training system to enhance employee skills and capabilities, focusing on internal talent development[165]. - The total number of employees at the end of the reporting period was 5,939, with 398 in the parent company and 5,541 in major subsidiaries[162].