NWF(SH:600975)2022-04-27 16:00Financial Performance - The company reported a net profit of -256,369,650.89 RMB for the year 2021, with accumulated undistributed profits available for distribution to shareholders amounting to 239,017,229.23 RMB as of December 31, 2021[7]. - The company will not distribute profits or increase capital reserves for the year 2021 due to the reported losses[7]. - In 2021, the company's operating revenue was approximately ¥2.00 billion, a decrease of 26.47% compared to ¥2.72 billion in 2020[29]. - The net profit attributable to shareholders was approximately -¥280.26 million, representing a decline of 199.13% from ¥282.72 million in 2020[29]. - The net cash flow from operating activities was -¥530.14 million, a decrease of 440.91% compared to ¥155.51 million in 2020[29]. - The total assets at the end of 2021 reached approximately ¥5.41 billion, an increase of 142.61% from ¥2.23 billion at the end of 2020[29]. - The basic earnings per share for 2021 was -¥0.41, a decline of 195.35% from ¥0.43 in 2020[29]. - The weighted average return on equity was -19.50% in 2021, down 41.32% from 21.82% in 2020[29]. - The company achieved a total operating revenue of ¥2,002,862,891.24, a decrease of 26.47% compared to the previous year, primarily due to a decline in pig prices[84]. - The company reported a net cash flow from operating activities of -¥530,136,533.08, a significant decline from ¥155,506,162.85 in the previous year, indicating cash flow challenges[84]. - Financial expenses increased by 676.74% year-on-year, primarily due to the implementation of new accounting standards and increased bank borrowings[88]. - The total expenses for the reporting period amounted to 2.099167 billion yuan, an increase of 55.74% compared to the previous year[107]. Operational Highlights - The company completed the construction and commissioning of 32 pig farm projects during the reporting period, adding a total capacity of 3.01 million breeding pigs and 642,800 fattening pigs annually[47]. - The company achieved a 28.8% increase in pork production, reaching 5.296 million tons in 2021, contributing to the overall growth in the meat supply market[52]. - The company reported a 27.4% increase in pig slaughtering, totaling 67.128 million heads in 2021, compared to the previous year[4]. - The company has established a full industry chain layout, including feed production, breeding, pig farming, slaughtering, and meat processing[6]. - The company is a key player in the live pig export market, particularly to Hong Kong and Macau, with a history of over 60 years in this business[5]. - The company has established a complete pig industry chain, enhancing its ability to resist market risks and adjust product structures during price fluctuations[64]. - The company has implemented a comprehensive internal control system to enhance management efficiency and operational effectiveness[68]. - The company has optimized its sales team management structure to improve headquarters management efficiency and control capabilities[72]. Strategic Initiatives - The company emphasized the importance of high-quality development and the integration of party building with production operations in 2021[39]. - The company is investing in new projects, including a pig slaughtering and cold chain distribution project with an annual capacity of 500,000 pigs[6]. - The company plans to build a new feed factory with an annual production capacity of 240,000 tons, currently in the preparation stage[6]. - The company has developed a "14th Five-Year" development plan for the pig industry, outlining a strategic framework for high-quality growth[47]. - The company plans to engage in commodity futures hedging to mitigate the impact of price volatility on its operations[67]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product offerings[178]. - The company is focusing on enhancing its logistics and supply chain capabilities to improve operational efficiency and customer service[178]. - The company is committed to promoting innovation and risk prevention as key components of its operational strategy for 2022[199]. Research and Development - Research and development expenses increased by 81.60% to ¥16,344,007.21, reflecting the company's commitment to enhancing its technological capabilities[84]. - The total R&D investment accounted for 0.82% of operating income, with no capitalized R&D expenses[108]. - The number of R&D personnel was 23, representing 1.01% of the total workforce[109]. - The company is actively collaborating with research institutions to develop key technologies in the pig industry, enhancing its core competitiveness and promoting high-quality development[78]. Market Position and Future Outlook - The company is positioned to benefit from supportive national policies aimed at modernizing the livestock industry and ensuring stable pork supply[189]. - The overall market for pork consumption in China is projected to grow at an annual rate of 1.5%, reaching 63.2 million tons by 2025[192]. - Future outlook suggests a focus on expanding breeding capacity and enhancing production efficiency, aiming for a stable output of approximately 60 million pigs annually by 2023[192]. - The competitive landscape shows that the industry remains fragmented, with a target of achieving a breeding scale rate of 58% by 2022 and 65% by 2025[192]. - The company is focusing on optimizing the entire industry chain by extending, supplementing, and strengthening the chain, with an emphasis on technological upgrades and intelligent farming[197].