XTAD(SH:600359)2019-03-27 16:00Financial Performance - The company's operating revenue for 2018 was ¥626,562,733.17, a decrease of 42.24% compared to ¥1,084,701,436.83 in 2017[18] - The net profit attributable to shareholders of the listed company was -¥217,765,020.74, representing a decline of 744.64% from a profit of ¥33,781,096.48 in 2017[18] - The net cash flow from operating activities was ¥25,360,643.11, a significant improvement of 138.55% compared to -¥65,783,145.05 in 2017[18] - The total assets at the end of 2018 were ¥2,139,870,910.16, down 16.25% from ¥2,555,101,774.47 at the end of 2017[18] - The net assets attributable to shareholders of the listed company decreased by 32.86% to ¥466,039,700.89 from ¥694,128,315.24 in 2017[18] - The basic earnings per share for 2018 was -¥0.57, a decrease of 733.33% compared to ¥0.09 in 2017[19] - The weighted average return on net assets was -37.54%, a decrease of 42.53 percentage points from 4.99% in 2017[19] - The company reported a quarterly revenue of ¥199,593,621.79 in Q4 2018, with a total of ¥626,562,733.17 for the year[20] - The company experienced a net loss of -¥173,820,903.81 in Q4 2018, contributing to the overall annual net loss[20] - In 2018, the company reported a non-recurring loss of ¥101,389,731.47, compared to a profit of ¥285,013,174.53 in 2017[24] Business Operations - The company’s main business includes seed processing and sales, dairy product processing and sales, and licorice deep processing, with significant contributions from subsidiaries[26] - The seed processing and sales business primarily involves cotton, rice, and wheat seeds, with a focus on high-quality breeding and production[26] - The dairy business is expected to benefit from increasing consumer demand for high-quality dairy products, driven by urbanization and changing consumption patterns[29] - The company’s licorice products include various forms such as licorice extract and licorice acid, with production plans adjusted based on market trends[28] - The company has established a strong brand presence in the Xinjiang region, being the first local dairy company to receive "China Organic Product" certification[29] - The overall dairy industry in China is experiencing a recovery, with urban per capita dairy consumption increasing and a stable demand for dairy products[29] - The company’s seed sales model primarily utilizes its own distribution system, with some regions employing agency sales[27] - The company anticipates a competitive landscape in the dairy sector due to its own scale and marketing network challenges[29] Revenue and Sales - The company produced 37,317.85 tons of liquid milk, with sales revenue from dairy products increasing by 23.77% year-on-year[41] - The total revenue for cotton reached CNY 174,120,594.30, a decrease of 8.90% compared to the previous year, with a gross margin reduction of 8.91 percentage points[44] - Liquid milk revenue increased to CNY 256,143,169.24, reflecting a growth of 3.00% year-over-year, with a gross margin increase of 3.00 percentage points[44] - The sales volume of cottonseed decreased by 12.49%, while its revenue was CNY 11,287,089.77, showing a gross margin increase of 14.17 percentage points[44] - The company reported a significant increase in agricultural products revenue by 51.08%, amounting to CNY 4,779,574.18, although specific gross margin details were not provided[44] - The company experienced a 42.60% increase in short fiber revenue, reaching CNY 5,067,021.20, despite a gross margin decrease of 19.56 percentage points[44] Cost Management - The operating costs decreased by 49.06% to 526 million RMB, influenced by the reduction in operating revenue and increased sales costs in the dairy segment[41] - The overall cost of industrial operations decreased by 52.79%, totaling CNY 315,881,186.95, with direct materials accounting for 83.59% of total costs[47] - The gross profit margin in the agricultural sector increased by 3.22 percentage points, with revenue from this sector rising by 13.49%[43] Strategic Initiatives - The company implemented a dual-driven strategy focusing on "milk source base construction + market expansion outside Xinjiang," resulting in significant sales growth in external markets[35] - The company is actively pursuing strategic partnerships and internal reforms to enhance operational efficiency and market competitiveness[36] - The company plans to enhance its development momentum through new projects across various agricultural sectors, including dairy and cotton[50] - The company is focusing on expanding its low-temperature dairy product offerings to meet diverse consumer needs and establish competitive advantages[95] Research and Development - Research and development expenses totaled 5,997,308.23 CNY, representing 1.0% of total revenue, with 12 R&D personnel accounting for 1.4% of the company's workforce[53] - The company has developed 42 self-researched seed varieties, showcasing its strong research capabilities in the seed processing and sales industry[68] - The company is investing in technology upgrades to enhance production efficiency and product quality in the licorice processing sector[102] Risk Management - The company has indicated potential risks in its future development, which are detailed in the report[5] - The company is aware of potential policy risks that could impact its operations and will monitor changes in national policies closely[106] - The company is committed to enhancing its crisis management capabilities to better handle potential crises[105] - The agricultural sector, which the company operates in, faces systemic risks due to weak foundational infrastructure and vulnerability to natural disasters[105] Corporate Governance - The company emphasizes investor relations, providing multiple communication channels to ensure the rights of minority shareholders are protected[171] - The company has complied with all relevant laws and regulations regarding corporate governance, with no significant discrepancies noted[172] - The board of directors has established specialized committees to enhance decision-making efficiency and compliance with regulations[169] - The company maintains a clear separation between the controlling shareholder and the listed company, ensuring independent operation of the board and supervisory committee[168] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 46,556, an increase from 46,514 in the previous month[140] - The largest shareholder, Aral Tongzhong State-owned Assets Management Co., Ltd., holds 153,815,575 shares, representing 40.32% of the total shares[142] - The second-largest shareholder, China Securities Finance Co., Ltd., holds 2,513,811 shares, accounting for 0.66% of the total shares[142] Legal Matters - The company is currently involved in a legal dispute related to a financial guarantee, with an estimated liability of ¥65,004,846.53 recognized pending the outcome of the appeal[194] - The company is involved in a significant lawsuit with a claim of RMB 32.7 million in principal and RMB 8.9 million in interest, with ongoing legal proceedings[121] Employee Management - The total number of employees in the parent company is 51, while the main subsidiaries employ 1,617, resulting in a total of 1,668 employees[161] - The company has established a human resources policy that emphasizes fairness and motivation for employees[162] - Employees enjoy benefits such as "five insurances and one fund," paid leave, and paid training[162] - The company conducted comprehensive training for all employees, focusing on management skills and team building, with a plan to train 50 mid-level managers through various interactive methods[163]