ANGEL YEAST(SH:600298)2019-03-22 16:00Financial Performance - The company reported an undistributed profit of RMB 2,895,723,615.05 at the end of 2018, with an undistributed profit per share of RMB 3.51[3]. - The company's operating revenue for 2018 was ¥6,685,600,650.19, representing a 15.75% increase compared to ¥5,775,728,160.88 in 2017[14]. - Net profit attributable to shareholders for 2018 was ¥856,669,164.92, a slight increase of 1.12% from ¥847,187,749.20 in 2017[14]. - The net profit after deducting non-recurring gains and losses was ¥818,427,565.07, reflecting a 2.72% increase from ¥796,728,941.68 in 2017[14]. - The total assets at the end of 2018 were ¥8,980,200,338.85, an 11.87% increase from ¥8,027,327,403.05 at the end of 2017[14]. - The net assets attributable to shareholders at the end of 2018 were ¥4,292,951,229.98, up 11.71% from ¥3,842,817,404.30 in 2017[14]. - Basic earnings per share for 2018 were ¥1.0395, a 1.12% increase from ¥1.0280 in 2017[15]. - The weighted average return on equity for 2018 was 21.06%, a decrease of 2.96 percentage points from 24.02% in 2017[15]. - The company achieved a revenue of 6.686 billion RMB, a year-on-year increase of 15.75%[31]. - Net profit attributable to the parent company was 857 million RMB, up 1.12% year-on-year[31]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 3.5 per 10 shares (including tax), amounting to an estimated total distribution of RMB 288,428,330.10[3]. - The company plans to distribute cash dividends amounting to 30% of the net profit attributable to shareholders for the year, with a minimum cash dividend of 288,428,330.10 RMB based on a total share capital of 824,080,943 shares, resulting in a per-share distribution of 0.35 RMB (before tax) [79]. - In 2018, the company distributed a cash dividend of 3.5 CNY per 10 shares, totaling 288,428,330.10 CNY, which represents 33.67% of the net profit attributable to ordinary shareholders[80]. Audit and Compliance - The company received a standard unqualified audit report from Da Xin Accounting Firm[3]. - The financial report is guaranteed to be true, accurate, and complete by the company's responsible persons[3]. - The company has not violated any regulatory decision-making procedures for external guarantees[4]. - The company has maintained strict adherence to its commitments, with no violations reported during the period[82]. - The current auditor, Da Xin Accounting Firm, has been retained for 20 years, with an audit fee of 100,000 CNY for the year[83]. - The internal control audit was also conducted by Da Xin Accounting Firm, with a fee of 30,000 CNY[85]. Market Position and Strategy - The company is the largest yeast producer in Asia and the third largest globally, with a focus on yeast and related bioproducts[25]. - The company has established a global marketing network, selling products to over 150 countries and regions[23]. - The company has achieved continuous revenue and net profit growth, driven by strong performance in nutrition, microbial nutrition, and brewing sectors[26]. - The company is actively involved in the integration of the yeast industry in China, with a focus on expanding its market share in emerging sectors[24]. - The company’s yeast products have a global market share of 12% and maintain the top position in the domestic market[31]. - The company’s internationalization index reached 18.09%, indicating steady improvement in international operations[31]. Research and Development - The company applied for 40 patents during the reporting period, including 27 invention patents[28]. - Research and development expenses totaled ¥279.65 million, representing 4.18% of total revenue, with 548 R&D personnel making up 6.25% of the total workforce[48]. - The company launched 21 new products during the year, contributing 16.5% to total revenue, with significant market recognition for new formulations targeting international markets[49]. - The company emphasizes the importance of technological innovation in the yeast industry and aims to increase R&D investment to develop differentiated products and services tailored to specific customer needs [73]. Environmental and Social Responsibility - The company has met environmental discharge standards across all major pollution sources, ensuring compliance with regulations[102]. - The company is committed to enhancing community engagement through cultural initiatives and improving governance at the village level[100]. - The company implemented new biological nitrogen removal devices in multiple locations, enhancing wastewater treatment capabilities[104]. - The company has committed to improving its environmental management systems and aims to achieve compliance with national standards and community satisfaction in environmental governance[111]. - The company has implemented a targeted poverty alleviation program in Yichang City, investing significant resources to support local communities[95]. Financial Risks and Challenges - The company faces risks from market competition, exchange rate fluctuations, and safety and environmental regulations[70][71]. - The company is facing financial risks due to tightening bank credit and rising financing costs, prompting it to explore broader financing channels and improve capital efficiency [73]. - The net profit decreased due to various factors, including a RMB 41.6 million impact from exchange rate fluctuations and a RMB 60.72 million impact from production issues[34]. Shareholder Information - The total number of common stock shareholders at the end of the reporting period was 42,483, an increase from 41,943 at the end of the previous month[115]. - The top ten shareholders include Hubei Anqi Biological Group Co., Ltd. holding 329,451,670 shares (39.98%) and Hong Kong Central Clearing Limited holding 83,799,915 shares (10.17%) [116]. - Hubei Anqi Biological Group Co., Ltd. is the controlling shareholder, with no other main business activities reported apart from holding shares in the listed company[117]. Employee and Management Structure - The total number of employees is 8,768, with 6,429 in production, 1,330 in sales, 548 in technical roles, 111 in finance, and 350 in administration[131]. - The company emphasizes a talent development philosophy that aligns individual growth with corporate goals, supported by various human resource policies[132]. - The company has established a comprehensive compensation management system to ensure fair remuneration practices[132]. - The company has a structured approach to employee benefits, catering to different employee groups[132]. Financial Statements and Accounting Policies - The company’s financial statements are prepared based on the assumption of going concern, indicating no significant issues affecting its ability to continue operations[185]. - The company’s financial reports comply with the requirements of the enterprise accounting standards, reflecting its financial status and operating results accurately[186]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired in a business combination[189].