NWF(SH:600975)2021-03-15 16:00Financial Performance - The company achieved a net profit of ¥322,694,971.13 for the year 2020, with a proposed cash dividend of ¥0.50 per 10 shares, totaling ¥32,633,779.20 (including tax) to be distributed to shareholders[6]. - The cash dividend represents 11.54% of the net profit attributable to shareholders of the listed company for 2020[6]. - As of December 31, 2020, the accumulated undistributed profits available for distribution to shareholders amounted to ¥539,957,516.51[6]. - The company's operating revenue for 2020 was CNY 2,723,731,158.81, representing a 27.85% increase compared to CNY 2,130,425,322.84 in 2019[27]. - The net profit attributable to shareholders for 2020 was CNY 282,724,071.78, a significant increase of 346.66% from CNY 63,297,284.54 in 2019[27]. - The basic earnings per share for 2020 was CNY 0.43, up 330.00% from CNY 0.10 in 2019[27]. - The weighted average return on equity for 2020 was 21.82%, an increase of 16.24 percentage points from 5.58% in 2019[27]. - The total assets at the end of 2020 were CNY 2,228,517,878.68, a 36.48% increase from CNY 1,632,840,846.63 at the end of 2019[27]. - The company reported a total revenue of 24,587.22 million, with a net profit of -408.92 million[135]. Dividend Policy - The company plans to maintain its profit distribution ratio unchanged, with adjustments to the total distribution amount if there are changes in the total share capital before the dividend distribution date[7]. - The company has revised its cash dividend policy to protect the rights of minority shareholders and ensure clear standards for profit distribution[165]. - The company has established a three-year shareholder return plan for 2020-2022, which includes cash dividends and capital reserve transfers[166]. - In 2019, the company distributed a cash dividend of 0.30 RMB per 10 shares, amounting to 19,580,267.52 RMB, which was 30.93% of the net profit attributable to ordinary shareholders[167]. Operational Efficiency - The company has optimized its organizational structure, reducing the number of functional and management departments from 13 to 7, improving management efficiency[49]. - The company has implemented a public recruitment process, resulting in 36.36% of newly appointed department managers being born in the 1980s and 54.55% holding master's degrees[49]. - The company is enhancing its digital infrastructure with 15 subsystems to improve operational efficiency and management[71]. - The company aims to optimize its management structure for capacity expansion, with responsibilities clearly defined and project management centralized under the investment development center[67]. Industry Position and Strategy - The company operates in the livestock industry, focusing on pig farming, meat sales, and feed processing, with a comprehensive supply chain from feed production to meat processing[36]. - The company is the only state-controlled listed company in Hunan focusing on the pig industry, recognized as a national key leading enterprise in agricultural industrialization[45]. - The company aims to achieve a breeding scale rate of over 65% by 2025, as per national agricultural development plans[41]. - The company is actively pursuing opportunities to expand its slaughtering capacity in response to market trends shifting from live pig trading to meat trading[67]. - The company is committed to high-quality development goals and will prioritize epidemic prevention and control measures[152]. Risk Management - The company has outlined potential risks in its report, advising investors to be aware of investment risks[11]. - The company faces a risk of pig diseases, with an average mortality rate of around 10%, leading to a survival rate of approximately 90% during large-scale breeding[153]. - The African swine fever outbreak since August 2018 has significantly impacted the pig farming industry, increasing the need for stringent biosecurity measures[155]. - The company has implemented a comprehensive disease prevention system, focusing on timely monitoring, prevention, and response to minimize losses from disease outbreaks[156]. - Fluctuations in pig prices pose a risk to the company's operations, as rapid declines or significant volatility can adversely affect production[157]. Investment and Expansion - The company has invested over 40 million yuan in innovative smart farming technology and engineering construction, enhancing production automation and data management[54]. - The company has completed a strategic layout for its feed industry, with a newly leased feed factory increasing capacity by 60,000 tons per year[67]. - The company plans to invest in the construction of pig farms and related projects, indicating a focus on market expansion[106]. - The company acquired 90% of Guangzhou Zhuangzhuang Technology Development Co., Ltd. for RMB 14,968,421 to expand its pig farming scale in Guangdong[111]. - The company is exploring new cooperative fattening models for pig farming to enhance operational efficiency[124]. Financial Management - The company has a low debt-to-asset ratio and has secured credit lines from multiple banks for indirect financing[162]. - The company has received credit support from multiple banks, allowing it to leverage capital market platforms for financing[53]. - The company’s cash flow from financing activities reached CNY 249,166,103.69, a significant increase of 1,164.93% compared to the previous year[80]. - The company has significant restricted assets, including ¥210,347,294.09 in fixed assets and ¥56,572,500.42 in intangible assets, both pledged for bank loans[100]. Research and Development - The company’s R&D expenses increased by 44.46% to CNY 9,000,062.06, indicating a focus on innovation[80]. - The company has collaborated with research institutions to develop key technologies in the pig industry, enhancing its core competitiveness[54]. - The company is actively involved in the research and development of feed and livestock technology, aiming to improve production efficiency[137]. Compliance and Governance - The company has committed to maintaining operational independence from its controlling shareholders to ensure compliance with regulatory requirements[171]. - The company has not encountered any significant accounting errors or changes in accounting policies that would impact its financial statements[179]. - The company has appointed Tianjian Accounting Firm for auditing services, with a remuneration of 55,000 RMB[181]. - The company has maintained a clean integrity status with no reported issues among its executives and major shareholders[188].