SMAC(SH:600073)2022-03-29 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 302,783,788.43 for the year 2021, with a cumulative distributable profit at year-end of RMB 1,609,429,032.98[7]. - The proposed cash dividend for 2021 is RMB 1 per 10 shares, totaling RMB 93,772,947.20, representing a cash dividend payout ratio of 30.97%[7]. - The company's operating revenue for 2021 was approximately ¥23.62 billion, a decrease of 1.04% compared to ¥23.87 billion in 2020[25]. - The net profit attributable to shareholders for 2021 was approximately ¥302.78 million, down 25.17% from ¥404.64 million in 2020[25]. - The net cash flow from operating activities in 2021 was approximately ¥552.94 million, a significant decline of 75.02% compared to ¥2.21 billion in 2020[25]. - The basic earnings per share for 2021 was ¥0.32, a decrease of 25.58% from ¥0.43 in 2020[25]. - The weighted average return on equity for 2021 was 6.92%, down 2.77 percentage points from 9.69% in 2020[25]. - The company's main business revenue for 2021 was approximately CNY 23.62 billion, with a decrease of 1.04% compared to the previous year[65]. - The pig farming segment reported a revenue of CNY 1.14 billion, with a significant decline of 26.22% year-on-year, and a gross margin of -56.69%, down 83.69 percentage points[65]. - The pork slaughtering, processing, and distribution segment generated CNY 5.80 billion in revenue, down 10.66% year-on-year, with a gross margin of 13.10%, a slight decrease of 0.63 percentage points[65]. - The beef and lamb segment achieved a revenue of CNY 12.82 billion, an increase of 5.81% year-on-year, with a gross margin of 10.38%, up 2.61 percentage points[65]. - The leisure food segment's revenue was CNY 1.58 billion, with an 11.20% increase year-on-year, but a gross margin of 36.25%, down 1.12 percentage points[65]. Operational Challenges - The company faced challenges in the pig farming industry due to the African swine fever and high feed costs, leading to a significant compression of profit margins[35]. - The company is focusing on modernizing and scaling up pig farming, which is expected to lead to further industry consolidation[42]. - The company is taking proactive measures to accelerate sales and improve feed conversion rates to mitigate the impact of falling pork prices[143]. - The ongoing global economic recovery remains uncertain due to factors such as commodity price increases and shipping capacity shortages, which may affect the company's performance[139]. - The company anticipates that the pig farming industry will continue to experience a process of capacity reduction until supply and demand reach a balance[125]. Strategic Development - The company aims to achieve its "14th Five-Year Plan" strategic development goals by enhancing operational capabilities and promoting collaborative development[35]. - The company is focusing on high-quality development and expanding its channels and overseas management to enhance brand performance[35]. - The company is committed to upgrading its production efficiency through technological advancements and enhancing brand recognition via consumer-oriented new product development[56]. - The company is focusing on developing new retail business models to adapt to changing consumer demands during the pandemic[106]. - The company is enhancing its internal collaboration across the entire industry chain of pig breeding, slaughtering, and meat processing to smooth out the impacts of the pig cycle[143]. Market Trends - Despite the downturn in the pig farming sector, the company saw a recovery in processed meat products and leisure food segments due to improved domestic consumption[35]. - The international market prices for red meat remained high, benefiting the company's beef and lamb product sales globally[35]. - The company is actively pursuing market expansion in the Yangtze River Delta region, enhancing its distribution channels and retail presence[130]. - The company is focusing on the development of high-end beef and lamb products, including hand-crafted steaks and new retail packaging to increase product value[131]. Corporate Governance - The company is committed to maintaining a high level of corporate governance, ensuring compliance with relevant laws and regulations[145]. - The company has established a robust internal management system to safeguard the rights of minority shareholders and enhance decision-making processes[148]. - The company emphasizes transparency in information disclosure, ensuring that all investors have equal access to relevant information[149]. - The company plans to continue improving its corporate governance structure and internal control mechanisms in 2022[149]. Research and Development - The total R&D expenditure amounted to 59,355,542.42 yuan, representing 0.25% of total operating revenue[95]. - The company has established three municipal technology centers to support research and development in meat and leisure food sectors, participating in the formulation or revision of 44 standards in the last three years[61]. - The company reported a total of 110 patents, including 17 invention patents, enhancing production technology and product innovation capabilities[63]. Employee Management - The total number of employees in the parent company is 137, while the total number of employees in major subsidiaries is 13,567, resulting in a combined total of 13,704 employees[192]. - The company has implemented a training plan to enhance employees' professional capabilities, aligning with strategic planning and talent development needs[194]. - The company has a total of 93 employees with postgraduate degrees, reflecting a focus on higher education within its workforce[192]. Financial Management - The company has a cash dividend policy where it distributed a total cash dividend of 121,904,831.36 RMB, which corresponds to a cash dividend ratio of 30.13% based on the total share capital of 937,729,472 shares[198]. - The company reported a significant reduction in financial expenses by 59.93%, attributed to decreased exchange losses[76][78]. - The investment cash flow improved by 36.12% due to increased cash inflows from asset disposals[76][78].