CAHIC(SH:600195)2019-04-29 16:00Financial Performance - The net profit attributable to shareholders for 2018 was CNY 415,628,947.78, with a cash dividend distribution of CNY 2.42 per 10 shares, totaling CNY 145,616,240[4]. - The company's operating revenue for 2018 was CNY 4,434,238,007.41, representing an increase of 8.96% compared to 2017[19]. - The net profit attributable to shareholders for 2018 was CNY 415,628,947.78, a year-on-year increase of 3.94%[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses increased by 37.18% to CNY 408,634,897.89 in 2018[19]. - The basic earnings per share for 2018 was CNY 0.6907, reflecting a 3.93% increase from 2017[20]. - The weighted average return on equity for 2018 was 10.85%, a decrease of 0.52 percentage points compared to 2017[20]. - The total assets at the end of 2018 were CNY 6,842,781,079.05, an increase of 8.91% from the previous year[19]. - The net assets attributable to shareholders at the end of 2018 were CNY 3,995,305,426.98, up 8.56% from 2017[19]. - The company's main business revenue reached ¥4,404,941,203.30, with a total profit of ¥1,299,648,665.72 for the reporting period[41]. Shareholder Information - The total share capital at the end of 2018 was 601,720,000 shares[4]. - The company plans to increase capital by converting reserves, distributing 4 additional shares for every 10 shares held[4]. - The company implemented a cash dividend distribution plan for the year 2017, distributing a cash dividend of 0.326 CNY per share, totaling 140.11 million CNY, which accounted for 35.04% of the net profit attributable to shareholders[113]. - In 2018, the company proposed a stock dividend distribution of 4 shares for every 10 shares held, increasing the total share capital from 42.98 million shares to 60.17 million shares[113]. - The cash dividends distributed in 2018 were 145.62 million CNY, with a per-share dividend of 2.42 CNY[114]. - The company has a policy to distribute at least 10% of the distributable profit as cash dividends when there are no significant investments or cash expenditures planned[113]. - The company has committed to disclose any changes in shareholding by its controlling shareholder in accordance with regulatory requirements[117]. Audit and Compliance - The company has received a standard unqualified audit report from Zhongshun Zhonghuan Accounting Firm[4]. - The company emphasizes that forward-looking statements regarding development strategies and future plans do not constitute substantial commitments to investors[5]. - The company has committed to avoiding any illegal occupation of funds or assets by its controlling shareholder[121]. - The company has ensured that there is no substantial competition with its controlling shareholder's other business operations[121]. - The company plans to continue strict compliance with relevant laws and regulations regarding related party transactions to protect the legal rights of shareholders[129]. - The company has committed to reduce related party transactions and ensure they are conducted on a fair and open basis[129]. - The company has not faced any major litigation or arbitration matters during the year[135]. Research and Development - The company has over 80 years of experience in the production and sales of animal health products, covering four main business segments: veterinary biological products, veterinary pharmaceuticals, feed and feed additives, and trade[29]. - The company’s R&D efforts focus on innovation, with breakthroughs in reverse gene operation platforms and antigen concentration purification technology, leading to increased external technology transfer revenue[32]. - Research and development expenses amounted to ¥166,590,821.10, representing a significant increase of 44.26% year-over-year[44]. - The number of R&D personnel was 623, making up 14.71% of the total workforce[51]. - The company’s R&D investment as a percentage of operating costs was 7.03%, indicating a strong commitment to innovation[72]. - The company has developed a total of 5 new veterinary drugs, including a trivalent inactivated vaccine for chicken Newcastle disease and infectious bursal disease[78]. - The company’s R&D projects are expected to enhance its vaccine product lineup and competitiveness, potentially leading to new sales revenue and profits[77]. Market Position and Strategy - The company has achieved a market share ranking among the top in the industry for major products such as vaccines for major animal diseases and compound vitamin additives[32]. - The company’s pharmaceutical segment saw revenue from key pharmaceutical formulations exceed 100 million RMB, indicating a strong position in both domestic and international markets[32]. - The company’s feed and feed additives business actively explored new marketing models, promoting new products like pig feed and enzyme vitamins, maintaining a leading position in the industry[32]. - The company is committed to the "five-in-one" safety management concept, ensuring product safety, animal safety, food safety, and ecological safety[32]. - The company aims to become a world-class enterprise, focusing on innovation and quality improvement to maintain competitive advantages in the animal vaccine market[104]. - The company recognizes the increasing competition in the veterinary medicine industry and aims to optimize its product structure and marketing strategies to adapt to market changes[109]. Environmental and Social Responsibility - The company has implemented various emergency response plans for environmental incidents and conducted regular training and drills[162]. - The company has established a contact point system with local livestock bureaus to enhance technology training and procurement support for poverty alleviation[153]. - The company invested CNY 244,000 in targeted poverty alleviation efforts, focusing on product and technical support in key poverty-stricken areas[150]. - The company completed all annual energy-saving and environmental protection targets without any safety or environmental responsibility incidents in 2018[166]. - The Huanggang plant invested 570,000 to replace gas boilers, significantly reducing sulfur dioxide and nitrogen oxide emissions[166]. Financial Management - The net cash flow from operating activities decreased by 7.96% to CNY 186,380,649.72 in 2018, primarily due to increased purchases[19]. - The company reported a net cash flow from investment activities of ¥133,501,143.69, a significant improvement from a negative cash flow of ¥509,044,372.78 in the previous year[44]. - The company’s long-term equity investment balance reached 709,502,100 RMB, an increase of 12,061,530 RMB, representing a growth of 20.48% compared to the previous year[94]. - The company’s cash dividend distribution is contingent upon having positive net profits and retained earnings[113]. - The company is focused on maintaining a low asset-liability ratio and controlling inventory and accounts receivable to mitigate financial risks[109].