CAHIC(SH:600195)2020-04-20 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 255,517,846.48 for the year 2019[4]. - The company's operating revenue for 2019 was approximately ¥4.12 billion, a decrease of 7.14% compared to ¥4.43 billion in 2018[17]. - Net profit attributable to shareholders decreased by 38.52% to approximately ¥255.52 million from ¥415.63 million in 2018[17]. - The net cash flow from operating activities dropped significantly by 85.45%, amounting to approximately ¥27.12 million compared to ¥186.38 million in 2018[17]. - Basic earnings per share fell by 38.53% to ¥0.3033 from ¥0.4934 in the previous year[17]. - The company's total assets decreased by 16.84% to approximately ¥5.69 billion from ¥6.84 billion in 2018[17]. - The weighted average return on equity decreased by 4.56 percentage points to 6.29% from 10.85% in 2018[17]. - The company's main business revenue for the year was CNY 4,088,230,943.31, a decrease of 7.19% year-on-year[54]. - The revenue from the biological products segment was CNY 1,139,587,558.42, accounting for 27.87% of total revenue, with a profit margin of 52.97%[50]. - The trade segment generated revenue of CNY 1,191,239,049.64, representing 29.14% of total revenue, with a profit margin of 3.67%[50]. - The company's operating income decreased by 7.14% compared to the previous year, while operating costs decreased by 4.43%[54]. - The net cash flow from operating activities was CNY 27,118,053.86, down 85.45% year-on-year[54]. - The company reported a total sales expense of 43,123.78 million RMB, which accounts for 10.47% of operating income[102]. Dividends and Capital Reserves - A cash dividend of RMB 0.95 per 10 shares (including tax) will be distributed, totaling RMB 80,028,760[4]. - In 2019, the company distributed cash dividends totaling 145.62 million RMB, representing 35.04% of the net profit attributable to shareholders[119]. - The company plans to distribute a cash dividend of 0.242 CNY per share and increase capital reserves by 0.4 shares for every share held, based on a total share capital of 60.172 million shares[146]. - The company plans to increase capital reserves by issuing 2 additional shares for every 10 shares held[4]. Audit and Compliance - The report includes a standard unqualified audit opinion from Zhongshun Zhonghuan Accounting Firm[4]. - The company has no non-operating fund occupation by controlling shareholders or related parties[5]. - There are no violations of decision-making procedures for external guarantees[5]. - The company received over 60 revisions to its compliance management system, enhancing risk management and operational efficiency[39]. - The company appointed Zhongzhong Accounting Firm for the 2019 financial audit, with a total audit fee of 770,000 RMB, and an internal control audit fee of 180,000 RMB, for a total of 950,000 RMB[143]. Research and Development - The company has established a robust R&D system, focusing on innovative, safe, efficient, and environmentally friendly products, supported by various research collaborations[34]. - Research and development investment totaled CNY 263,061,339.17, accounting for 6.39% of operating income[66]. - The number of R&D personnel is 724, representing 17.57% of the total workforce[66]. - The capitalized proportion of R&D investment is 34.25%[66]. - The R&D investment for the development of the bivalent inactivated vaccine for foot-and-mouth disease (O type and A type) was 7,057.43 million RMB, representing a 182.3% increase compared to the same period last year[82]. - The company is currently developing a new bivalent inactivated vaccine for foot-and-mouth disease, with a cumulative R&D investment of 9,557.43 million RMB[86]. - The company plans to enhance its product lineup with new vaccines, which is expected to increase sales revenue and profit if successfully developed and launched[88]. Market and Product Development - The company has over 800 product varieties, focusing on animal health and nutrition, and is a key player in the veterinary medicine and feed industry in China[24]. - The company is recognized as a national key leading enterprise in agricultural industrialization and has over 80 years of production and sales experience[24]. - The company’s biological products business remained stable despite the African swine fever impact, with significant growth in poultry vaccine revenue and a rapid increase in pig vaccine export value[32]. - The veterinary drug business maintained a leading profitability level in the industry by leveraging new process technologies and extending product lines[33]. - The company’s feed and feed additives business continued to show advantages in poultry feed, with notable sales performance in specialty products[33]. - The company aims to achieve a breeding scale rate of approximately 58% by 2022 and over 65% by 2025, driven by the development of standardized large-scale farming[29]. - The company is actively developing low-protein diet formulations to address the tightening supply of feed protein resources, contributing to cost savings and reduced environmental nitrogen emissions[35]. - The company is focused on expanding its product portfolio in the animal vaccine sector[94]. Challenges and Risks - The company faces risks from animal epidemics, particularly African swine fever, which could impact market demand for its products[115]. - Regulatory changes in 2020 will require compliance with new safety standards and production quality management, affecting the industry landscape[115]. - The competitive landscape in the veterinary drug industry is intensifying, necessitating improvements in R&D, production, and service capabilities[115]. Environmental and Social Responsibility - The company has established environmental protection measures, including a partnership for wastewater treatment to meet pollution discharge standards[174]. - The company has invested RMB 9.15 million in environmental protection initiatives, including sludge treatment and waste management facilities[177]. - The company operates under strict environmental regulations, achieving all annual environmental targets set by authorities[177]. - The company has committed to poverty alleviation efforts in Anhui Xiaoxian, contributing to local economic development and welfare[158]. - The company invested RMB 308,000 in poverty alleviation efforts, focusing on agricultural machinery and local product procurement[162]. - The company has signed a strategic cooperation framework agreement with local pet feed manufacturers to enhance industry collaboration[162]. Shareholder Structure - The total number of ordinary shares increased from 601,720,000 to 842,408,000, representing a 40% increase due to capital reserve conversion[185]. - The largest shareholder, China Animal Husbandry Group, holds 420,468,804 shares, accounting for 49.91% of total shares[189]. - The company has not reported any changes in its controlling shareholder during the reporting period[196]. - The actual controller of the company is China Agricultural Development Group Co., Ltd., which holds a substantial stake in various subsidiaries[196]. - The company maintains a clear ownership structure with no complex control relationships reported[199].