Leshan Giantstar Farming&Husbandry (SH:603477)2023-03-29 16:00Financial Performance - The company's operating revenue for 2022 was approximately CNY 3.97 billion, representing a 33.02% increase compared to CNY 2.98 billion in 2021[21]. - The net profit attributable to shareholders for 2022 was CNY 158.09 million, a decrease of 38.96% from CNY 258.98 million in 2021[21]. - The net profit after deducting non-recurring gains and losses was CNY 280.33 million, down 8.90% from CNY 307.70 million in 2021[21]. - The net cash flow from operating activities increased by 210.81% to CNY 482.40 million from CNY 155.21 million in 2021[21]. - The total assets at the end of 2022 were CNY 7.25 billion, a 20.58% increase from CNY 6.02 billion at the end of 2021[21]. - The basic earnings per share for 2022 were CNY 0.3124, a decrease of 41.26% from CNY 0.5318 in 2021[22]. - The diluted earnings per share for 2022 were CNY 0.3107, down 41.58% from CNY 0.5318 in 2021[22]. - The weighted average return on equity for 2022 was 4.49%, a decrease of 4.24 percentage points from 8.73% in 2021[22]. - The company reported a net profit of CNY 254.89 million in Q4 2022, following a net loss of CNY 311.13 million in Q1 2022[24]. - The company achieved a revenue of 396,793.83 million yuan, representing a year-on-year growth of 33.02%[39]. - The net profit attributable to shareholders was 15,808.96 million yuan, a year-on-year decrease of 38.96%[39]. Dividend Distribution - The company plans to distribute a cash dividend of 0.32 RMB per 10 shares, totaling approximately 16.2 million RMB, representing a cash dividend ratio of 10.24% based on the total share capital of 506,094,309 shares as of December 31, 2022[4]. - The company has a stable profit distribution policy, prioritizing cash dividends and proposing to distribute profits annually, subject to the board's approval based on actual operating conditions[125]. - The company reported a net profit attributable to ordinary shareholders of approximately 158.1 million RMB for the year[128]. Risks and Challenges - The company faces significant risks including price fluctuations of livestock products, raw material price volatility, animal diseases, changes in environmental policies, and industry policy risks[7]. - The average price of live pigs decreased by 9.8% in 2022, with significant fluctuations throughout the year[29]. - Raw material price volatility, particularly for corn and soybean meal, poses a risk to the company's cost structure and overall profitability[87]. - Animal diseases represent a major risk, potentially leading to decreased livestock efficiency and increased production costs due to necessary interventions[87]. - Changes in environmental regulations could increase the company's compliance costs, impacting overall financial performance[88]. - The company is exposed to market risks in the leather industry, influenced by macroeconomic conditions and competition[88]. Corporate Governance - The company has received a standard unqualified audit report from Sichuan Huaxin (Group) Accounting Firm for the fiscal year 2022[3]. - The company’s financial report has been confirmed for its authenticity, accuracy, and completeness by its responsible persons[3]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[6]. - The company has not violated any decision-making procedures in providing guarantees to external parties[6]. - The company’s board of directors and supervisory board members have all attended the board meeting, ensuring governance compliance[3]. - The company has not disclosed any significant non-compliance issues in its annual report[6]. - The company’s board of directors has actively fulfilled its duties in accordance with relevant laws and regulations, ensuring compliance and governance[115]. Operational Strategies - The company aims to enhance its market position through technological innovation and quality improvement in the feed industry[32]. - The company is committed to developing a safe, efficient, and environmentally friendly feed production system[32]. - The company operates an integrated industry chain in pig farming, including breeding, feed production, and sales[33]. - The company has established 29 standardized breeding farms across various bases, enhancing its integrated breeding capabilities[39]. - The company has implemented various cost-reduction and efficiency-enhancing measures to improve operational quality[29]. - The company aims to optimize pig health and production levels by focusing on reducing feed-to-meat ratios and improving survival rates in fattening pigs[86]. Market Expansion and Product Development - The company plans to expand its market presence by entering three new regions in 2023, targeting a revenue increase of 15% from these markets[103]. - New product development initiatives are expected to launch in Q2 2023, with an estimated investment of 50 million in R&D[102]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 300 million RMB allocated for potential deals[100]. - The company is investing 50 million RMB in R&D for new technologies aimed at improving production efficiency[100]. Environmental and Social Responsibility - The company invested 5,045.40 million yuan in environmental protection during the reporting period[134]. - The company achieved ISO14001:2015 environmental management system certification and received the BLC-LWG gold medal for environmental protection compliance[134]. - The company implemented a wastewater treatment plan using a three-stage treatment technology, ensuring normal operation of all environmental protection facilities during the reporting period[137]. - The company has developed emergency response plans for environmental incidents and conducted regular drills[139]. Shareholder and Financial Structure - The total number of shares increased from 506,093,443 to 506,094,309 due to the conversion of convertible bonds, resulting in an increase of 866 shares[189]. - The company raised a total of CNY 1 billion through the issuance of convertible bonds, with a conversion price set at CNY 25.24 per share[185]. - The largest shareholder, Sichuan Hebang Investment Group Co., Ltd., holds 25.62% of the shares, totaling 129,654,123 shares[191]. - The company has no repurchase accounts among the top ten shareholders, indicating no buyback activity reported[195]. - The company has confirmed that there are no new pledges or restrictions that could hinder the transfer of the target equity to the listed company[150]. Compliance and Legal Matters - The company has not been subject to any significant civil litigation or arbitration related to economic disputes in the last five years[153]. - The company has not faced any administrative penalties or criminal penalties in the last five years, except for those unrelated to the securities market[153]. - The company has confirmed that it legally owns the complete ownership of the target equity, with no existing or potential ownership disputes[150]. - The company has committed to strict compliance with securities trading regulations during the convertible bond subscription period[169].