Leshan Giantstar Farming&Husbandry (SH:603477)2022-03-11 16:00Financial Performance - The company's operating revenue for 2021 reached ¥2,982,922,735.67, representing a 107.26% increase compared to ¥1,439,190,604.09 in 2020[18]. - Net profit attributable to shareholders was ¥258,981,782.60 in 2021, up 102.84% from ¥127,676,931.93 in 2020[18]. - The net profit after deducting non-recurring gains and losses was ¥307,698,107.46, an 18.72% increase from ¥259,170,352.81 in 2020[18]. - The company's total assets increased by 40.05% to ¥6,015,777,263.47 at the end of 2021, compared to ¥4,295,314,764.77 at the end of 2020[18]. - Basic earnings per share for 2021 were ¥0.53, a 39.47% increase from ¥0.38 in 2020[19]. - The weighted average return on net assets was 8.73% in 2021, an increase of 0.82 percentage points from 7.91% in 2020[19]. - The company reported a net cash flow from operating activities of ¥155,208,482.89, a decrease of 58.42% from ¥373,234,074.44 in 2020[18]. - The company achieved a revenue of 2,982.92 million RMB in 2021, representing a year-on-year growth of 107.26%[27]. - The net profit attributable to shareholders was 258.98 million RMB, an increase of 102.84% compared to the previous year[27]. Dividend and Share Capital - The company plans to distribute a cash dividend of 0.52 RMB per 10 shares, totaling 26,316,859.04 RMB, which represents a cash dividend payout ratio of 10.16% for the year 2021[4]. - The company reported a total share capital of 506,093,443 shares as of December 31, 2021[4]. - The total number of shares after the non-public issuance is 506,093,443 shares, with 38,181,814 shares issued to specific investors[179]. Risks and Challenges - The company faces significant risks including price fluctuations in livestock products, raw material price volatility, animal diseases, changes in environmental policies, and industry policy risks[6]. - Raw material price volatility, particularly for feed ingredients like corn and soybean meal, poses a significant risk to the company's cost structure and profitability[78]. - Animal diseases represent a major risk, potentially leading to decreased production efficiency and increased costs due to necessary preventive measures[78]. - Changes in environmental regulations could increase compliance costs, impacting the company's operational performance and profit margins[79]. Operational Efficiency and Strategy - The company operates an integrated industry chain in pig farming, including breeding, feed production, and sales, enhancing operational efficiency[31]. - The company employs a "company + farmer" model for pig farming, where the company provides breeding stock and resources while farmers handle fattening[31]. - The company aims to leverage its strong R&D capabilities and marketing network to enhance the synergy between its farming and feed businesses[31]. - The integrated operation model provides cost advantages, allowing the company to produce its own piglets and feed, resulting in lower breeding costs compared to competitors[36]. - The company has developed a complete integrated industry chain, enhancing operational efficiency and reducing risks in the livestock sector[37]. Environmental Compliance - The company has achieved ISO14001:2015 certification and has implemented a comprehensive wastewater treatment system, meeting both domestic and international environmental standards[125]. - The total discharge of CODcr was 9.5106 tons, with a concentration of 11.04 mg/L, well below the standard limit of 50 mg/L[126]. - The company has established a robust pollution prevention and control system, utilizing advanced treatment technologies for wastewater management[128]. - The company has complied with environmental regulations, holding a valid pollutant discharge permit and paying discharge fees on time[129]. Governance and Management - The company has a robust governance structure, ensuring independence in its operations and management[82]. - The company has established an independent financial accounting department, ensuring compliance with accounting standards and independent financial decision-making[82]. - The total pre-tax remuneration for the management team during the reporting period amounted to 506.13 million yuan[87]. - The company has a strong focus on independent operations, with no reliance on controlling shareholders for business support[82]. Future Outlook and Expansion - The company provided a future outlook, projecting a revenue growth of 10-12% for the next fiscal year[90]. - Market expansion plans include entering two new provinces, which are projected to increase market share by 5%[90]. - The company plans to continue its strategy of national expansion while maintaining its base in Sichuan[46]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 300 million RMB allocated for potential deals[90]. Financial Management and Investments - The company has a stable profit distribution policy, prioritizing cash dividends for investors[116]. - The company plans to invest in new breeding farms, impacting cash flow from investing activities[61]. - The investment activities resulted in a net cash outflow of ¥1,035,475,870.22, primarily due to increased expenditures on new breeding facilities[41]. - The company has a total of 467,911,629 shares before the changes, with 240,000,000 shares being ordinary shares[182]. Related Party Transactions - The company will ensure that any related party transactions are conducted at fair market prices and in compliance with legal procedures[156]. - The company has pledged to minimize and regulate related party transactions, ensuring they do not harm the interests of shareholders[156]. - The company will publicly apologize and compensate for any losses incurred by shareholders due to violations of commitments regarding related party transactions[156]. Performance Commitments - The performance compensation period for the transaction is set for the years 2020, 2021, and 2022, with a total net profit commitment of no less than CNY 577 million for the years 2020 to 2022[150]. - The specific net profit commitments for the years 2020, 2021, and 2022 are CNY 158 million, CNY 159 million, and CNY 260 million respectively[151]. - The net profit attributable to the parent company of Juxing Agricultural Co., Ltd. for 2021 was CNY 404.55 million, exceeding the commitment of CNY 159 million by 254.43%[161].