NWF(SH:600975)2020-04-13 16:00Financial Performance - The company achieved a net profit of ¥65,972,229.85 for the year 2019, with a statutory surplus reserve of ¥6,597,222.99 deducted, resulting in a total undistributed profit available for distribution of ¥269,112,310.01 as of December 31, 2019[6]. - The proposed cash dividend distribution is ¥0.30 per 10 shares (including tax), amounting to a total of ¥19,580,267.52 based on the total share capital of 652,675,584 shares[6]. - The cash dividend represents 30.93% of the net profit attributable to shareholders of the listed company for 2019[6]. - The company's operating revenue for 2019 was approximately CNY 2.13 billion, representing a 4.38% increase compared to CNY 2.04 billion in 2018[26]. - The net profit attributable to shareholders was CNY 63.30 million, a significant recovery from a loss of CNY 35.84 million in 2018[26]. - The net profit after deducting non-recurring gains and losses was CNY 60.07 million, compared to a loss of CNY 45.69 million in the previous year[26]. - The basic earnings per share for 2019 was CNY 0.10, a recovery from a loss of CNY 0.05 in 2018[26]. - The weighted average return on equity increased to 5.58%, up 8.72 percentage points from -3.14% in 2018[26]. Operational Overview - The company has established a complete industrial chain layout for pig farming, including feed production, breeding, and meat processing[35]. - The company operates 13 self-owned and 24 leased pig farming bases, utilizing both self-raising and cooperative farming models[36]. - The slaughtering capacity of the company's subsidiary is 700,000 pigs per year, with a cold storage capacity of 40,000 tons[37]. - The company aims to optimize product structure and enhance quality control across the entire supply chain[36]. - The company has established a complete industrial chain from upstream raw material procurement to downstream sales, enhancing its risk resistance and regional competitiveness[44]. - The company has maintained a dual market strategy, engaging in both domestic and export sales to mitigate price fluctuations[45]. - The company has established partnerships with various agents for pig exports, primarily through auction methods in Hong Kong and Macau markets[128]. Risk Management - The report includes a risk statement regarding uncertainties in future plans and development strategies, advising investors to be cautious[8]. - The company has detailed potential risk factors and countermeasures in the report's operational discussion and analysis section[11]. - The company has implemented a comprehensive biosecurity management system to mitigate risks associated with disease outbreaks[46]. - The company faces risks from fluctuations in pig prices, which can significantly impact operations, and plans to mitigate this by diversifying sales strategies and optimizing the supply chain[186]. - Environmental policy changes pose a risk, and the company is committed to increasing investments in environmental protection measures to comply with stricter regulations[189]. - The company has enhanced its detection capabilities for African swine fever and invested in training for technical personnel to improve response measures[186]. Research and Development - The company’s R&D expenses surged by 218.33% to approximately ¥6.23 million, indicating a strong focus on innovation and technology development[63]. - The company has developed a standardized production and quality control system to ensure sustainable development in the pig industry[48]. - The company plans to continue its focus on innovation in breeding technology and management to reduce costs and enhance operational resilience[186]. Market Dynamics - In 2019, the average price of live pigs increased by 138.57% year-on-year, reaching 33.28 RMB/kg in December[44]. - The company reported a 27.5% year-on-year decrease in pig inventory, totaling 31,041 million heads in 2019, due to the impact of African swine fever[51]. - The company aims to increase the scale of pig farming, targeting a 58% scale farming rate by 2022 and over 65% by 2025[41]. - The competitive landscape of the pig industry remains fragmented, with a low concentration of large-scale breeding operations[172]. - The average annual growth rate of pork consumption is expected to be 1.5%, reaching 63.2 million tons by 2025, a 5.8% increase from 2020[174]. Financial Position - The company's total assets at the end of 2019 were approximately CNY 1.63 billion, reflecting a 2.43% increase from CNY 1.59 billion in 2018[26]. - The company has a low debt-to-asset ratio of less than 30%, allowing it to leverage capital markets for financing[48]. - The company's asset-liability ratio is below 30%, allowing for favorable financing conditions through both direct and indirect means[95]. - Cash and cash equivalents at the end of the period amounted to ¥177,801,910.76, representing 10.89% of total assets, a decrease of 46.15% compared to the previous year[83]. Strategic Initiatives - The company has established a specialized epidemic prevention agency to oversee and enforce biosecurity measures[95]. - The company aims to establish a full industry chain in pig farming, focusing on high-quality production and expanding into the Guangdong-Hong Kong-Macao Greater Bay Area and Shanghai Bay Area[179]. - The company is actively pursuing market expansion and technological development in the livestock sector[171]. - The company has made long-term commitments to align voting results with Xinwufeng during shareholder meetings[199].