HNZHKJ(000702)2025-04-02 10:10Financial Performance - The company's operating revenue for 2024 was ¥1,120,913,208.28, a decrease of 9.69% compared to ¥1,241,169,009.64 in 2023[21]. - The net profit attributable to shareholders for 2024 was -¥65,250,016.96, an improvement of 53.34% from -¥139,850,017.26 in 2023[21]. - The net cash flow from operating activities decreased by 82.27% to ¥10,795,612.05 in 2024 from ¥60,887,195.20 in 2023[21]. - The total assets at the end of 2024 were ¥707,460,546.42, down 1.49% from ¥718,154,474.27 at the end of 2023[22]. - The weighted average return on equity for 2024 was -16.50%, an improvement of 30.39% from -46.59% in 2023[22]. - The basic earnings per share for 2024 were -¥0.1882, a 59.63% improvement from -¥0.4662 in 2023[22]. - The company reported a net loss of -¥50,986,231.82 in the fourth quarter of 2024, with a significant cash flow from operating activities of ¥81,133,131.19[26]. - The net assets attributable to shareholders decreased by 15.08% to ¥363,084,730.62 at the end of 2024 from ¥427,564,880.41 at the end of 2023[22]. - The company recorded non-operating income of ¥13,396,761.46 in 2024, compared to a loss of -¥8,622,051.32 in 2023[28]. Market Conditions and Risks - The company reported significant risks related to major animal diseases, which could lead to reduced pig production and increased breeding costs, potentially resulting in substantial operational losses[3]. - Fluctuations in pig prices pose a risk due to the lag in supply adjustments, which may impact the company's profitability if prices decline significantly or do not keep pace with rising costs[4]. - The cost of feed materials is primarily influenced by market supply and demand, with potential price volatility increasing the difficulty of cost management for the company[5]. - The cyclical nature of pig prices poses a risk to profitability, potentially leading to significant operational losses[99]. - The company faces significant risks from swine diseases, which can lead to reduced production, increased costs, and potential losses[100]. - The company will strengthen its raw material procurement strategy and optimize inventory management to mitigate price volatility risks[98]. Competition and Market Strategy - The company faces intensified competition as larger enterprises expand their market share, making market development increasingly challenging[7]. - The feed industry is experiencing intensified competition and accelerated industry consolidation, with a focus on cost reduction and efficiency improvement[31]. - The feed industry is currently highly competitive with low profit margins and increasing market concentration, dominated by large-scale enterprises[92]. - The company aims to enhance its market share of the "Zhenghong" brand feed products and expand its import-export trade segment[94]. - The company plans to improve internal management and production efficiency to counteract the impact of pig price fluctuations[99]. Operational Developments - The company has established a comprehensive and strict biosecurity system and advanced breeding system for pig farming, aiming for improved breeding efficiency and production benefits[36]. - The feed business has expanded to over 100 varieties across six major series, focusing on quality, safety, and efficiency[34]. - The company plans to continue optimizing its trade business structure and expand the sales scale of feed raw materials to support its feed and breeding industries[40]. - The company achieved a survival rate of over 99% in fattening pigs, indicating strong production performance[44]. - The company streamlined its product offerings, reducing 67 formulas and 95 products, which helped lower production costs[44]. Research and Development - The company has a strong research capability in "7060 large breeding technology" and "mother-son feed" research, providing a competitive advantage[42]. - The company is focusing on quality control and technological innovation to enhance product competitiveness[48]. - The company plans to implement a three-tier R&D system focusing on various feed formulations and production techniques to optimize product offerings[95]. - The company has completed research on amino acid models for meat ducks, aiming to improve the utilization efficiency of non-conventional protein sources by about 5%[64]. - R&D investment decreased by 18.92% from 8,671,020.79 RMB in 2023 to 7,030,082.71 RMB in 2024, representing 0.63% of operating revenue[65]. Governance and Compliance - The company has established a comprehensive governance structure in compliance with relevant laws and regulations, ensuring transparency and accountability[106]. - The company held three shareholder meetings during the reporting period, ensuring equal rights for all shareholders, especially minority shareholders[107]. - The company maintains independence from its controlling shareholder, with clear separation in operations, personnel, and finances[115]. - The company has an independent financial department and a distinct financial accounting system, ensuring compliance and independent tax obligations[117]. - The internal control system has been optimized and covers major operational aspects, with no significant internal control deficiencies reported for 2024[149]. Environmental Responsibility - The company holds valid pollution discharge permits for its subsidiaries, effective from April 27, 2023, to April 26, 2028[155]. - The company is classified as a key pollutant discharge unit by environmental protection authorities[155]. - The company has implemented measures to comply with industry emission standards and regulations[156]. - The company invested CNY 1.6457 million in environmental upgrades for the Heji Mountain pig farm in 2024[158]. - The company has established environmental regulations and assigned personnel for on-site management and equipment maintenance to ensure compliance with discharge standards[158]. Employee Management and Welfare - The company has 639 staff members at the end of the reporting period, with 731 employees receiving compensation during the period[141]. - The company’s welfare programs include social insurance, accommodation benefits, and various allowances, enhancing employee satisfaction[143]. - Training programs are organized based on annual needs assessments, with a focus on various levels and categories of employees[144]. - The company encourages self-development training for employees, which must not interfere with work responsibilities[146]. - The company has established a salary management mechanism linked to job positions, contributions, and company performance, adhering to principles such as "pay for performance" and "differentiated pay" for different roles[142].