HNZHKJ(SZ:000702)2020-04-02 16:00Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB in 2019, representing a year-on-year growth of 15%[19]. - The company's operating revenue for 2019 was ¥1,123,012,450.63, a decrease of 16.31% compared to 2018[20]. - The net profit attributable to shareholders for 2019 was ¥9,366,630.01, representing a significant decline of 83.20% from the previous year[20]. - The net profit for the year was ¥15,340,254.81, with a net profit attributable to the parent company of ¥9,366,630.01[37]. - The total operating revenue for 2019 was ¥1,123,012,450.63, a decrease of 16.31% compared to ¥1,341,877,249.77 in 2018[44]. - The overall gross profit margin for the company was 12.39%, with a decrease of 16.40% in operating revenue and a decrease of 20.12% in operating costs compared to the previous year[47]. - The company reported a basic earnings per share of ¥0.0351, down 83.20% from ¥0.2091 in 2018[20]. - The weighted average return on equity for 2019 was 1.77%, a decrease of 9.48% compared to the previous year[20]. - The net cash flow from operating activities reached ¥92,052,932.04, a substantial increase of 746.17% compared to 2018[20]. - The total assets at the end of 2019 were ¥678,689,132.61, down 5.63% from the end of 2018[20]. Market Expansion and Strategy - The company has set a revenue guidance of 1.5 billion RMB for 2020, projecting a growth rate of 25% compared to 2019[19]. - The company plans to expand its market presence by entering two new provinces in 2020, aiming for a 30% increase in regional sales[19]. - New product development efforts have led to the launch of three innovative feed products, which are expected to capture a 10% market share in the next fiscal year[19]. - The company aims to enhance its market competitiveness through expert consulting services and high-quality products, despite a slowing industry growth rate and increasing competition[29]. - The company is focusing on expanding its market presence and enhancing its product offerings to improve competitiveness in the feed industry[92]. Research and Development - The company has invested 50 million RMB in research and development for new technologies aimed at improving feed efficiency and animal health[19]. - The company plans to enhance its research and development investments in green and healthy feed products, aligning with national priorities on ecological civilization and health[93]. - Research and development expenses totaled ¥15,439,084.33, accounting for 1.37% of operating revenue, a decrease of 19.83% from the previous year[62]. Risk Management - The company faces risks from raw material price fluctuations, particularly in corn and soybean meal, which could impact profitability if prices rise significantly[7]. - The company emphasizes the importance of managing risks related to disease outbreaks in livestock, which could adversely affect production and sales[8]. - The company is focusing on risk management by enhancing safety production and environmental protection measures[41]. - The company has established a futures trading management system to mitigate risks associated with price fluctuations in raw materials, ensuring compliance with national laws and regulations[85]. - The company’s risk control measures for futures hedging include strict position management and internal controls to ensure sustainable operational efficiency[85]. Subsidiaries and Investments - The company established five new subsidiaries in 2019, increasing its consolidation scope with total investments of ¥29,500,000.00[55]. - The subsidiary Anhui Huaibei Zhenghong Feed Co., Ltd. generated a net profit of 5.20 million yuan, contributing significantly to the company's overall performance[89]. - The company did not engage in any major asset or equity sales during the reporting period, maintaining its asset base[87][88]. - The company has established a subsidiary focused on the breeding of sows, with a reported revenue of 14,000,000.00 yuan and a growth rate of 70.00%[80]. Social Responsibility and Community Engagement - In 2019, the company raised a total of 800,000 RMB for poverty alleviation efforts, with 100,000 RMB contributed by the company itself[139]. - A total of 23 individuals from 7 households were lifted out of poverty during the reporting period[140]. - The company plans to allocate approximately 200,000 RMB for poverty alleviation efforts in 2020, focusing on pandemic recovery and employment[144]. - The company actively engages in social responsibility initiatives, including support for employees, customers, and suppliers[135]. Governance and Compliance - The company has not reported any significant changes in its asset and liability structure during the reporting period[153]. - The company has a dedicated financial department with an independent accounting system and does not share bank accounts with the controlling shareholder[197]. - The company strictly adhered to information disclosure regulations, ensuring timely and accurate communication with shareholders[195]. - The company has not faced any penalties from securities regulatory authorities in the past three years[179]. - The board of directors consists of 7 members, including 3 independent directors, and held 7 meetings during the reporting period[194]. Employee Management - The total number of employees in the company is 1,047, with 689 in the parent company and 358 in major subsidiaries[184]. - The company has established a salary management mechanism linked to job positions, contributions, and company performance[186]. - The total compensation for senior management is determined by the board, while other personnel compensation is set by the CEO[187]. - The company conducts annual training plans based on employee training needs and company development strategies[188].