TECON(SZ:002100)2020-04-23 16:00Financial Performance - By the end of 2023, the company plans to achieve feed production and sales of 3 million tons, with a sales revenue of 9 billion RMB[6]. - The company aims to have a breeding stock of 200,000 to 250,000 sows and an annual output of 4 million pigs, generating sales revenue of 10 billion RMB by 2023[7]. - The biopharmaceutical business is projected to achieve sales revenue of 2 billion RMB by 2023, positioning the company among the top three in the domestic animal health industry and top ten globally[10]. - The company plans to process 1 million tons of cottonseed, generating 2.5 billion RMB in revenue by 2023, aiming to become the leading brand in high-protein cotton meal[10]. - The corn storage and sales business targets 3 million tons with a revenue of 6.5 billion RMB by 2023, focusing on high-quality grain supply in the Northwest region[10]. - The company's operating revenue for 2019 was ¥7,476,316,392.02, representing a 41.78% increase compared to ¥5,273,032,350.33 in 2018[33]. - The net profit attributable to shareholders for 2019 was ¥644,486,713.22, which is a 105.43% increase from ¥313,726,252.74 in 2018[33]. - The net cash flow from operating activities improved to ¥306,979,542.98 in 2019, a significant recovery from a negative cash flow of ¥1,178,441,646.71 in 2018, marking a 126.05% increase[33]. - Basic earnings per share for 2019 rose to ¥0.60, an 81.82% increase from ¥0.33 in 2018[33]. - Total assets at the end of 2019 were ¥11,154,464,066.40, up 31.09% from ¥8,508,742,207.44 at the end of 2018[36]. - The net assets attributable to shareholders increased by 43.10% to ¥4,592,802,200.06 at the end of 2019, compared to ¥3,209,604,751.62 at the end of 2018[36]. - The company reported a quarterly revenue of ¥2,465,640,042.52 in Q3 2019, which was the highest quarterly revenue for the year[39]. - The company received government subsidies amounting to ¥17,195,351.30 in 2019, slightly down from ¥19,967,775.21 in 2018[40]. - The company achieved total operating revenue of CNY 747,631.64 million, a year-on-year increase of 41.78%[63]. - Net profit attributable to shareholders reached CNY 64,448.67 million, reflecting a growth of 105.43% compared to the previous year[63]. - The feed business generated sales revenue of CNY 293,077.24 million, up 14.39% year-on-year, accounting for 39.20% of total revenue[63]. - The pharmaceutical business saw a decline in sales revenue to CNY 55,519.23 million, down 25.96% year-on-year, representing 7.43% of total revenue[64]. - Revenue from pig farming and food processing surged to CNY 164,412.01 million, a 92.34% increase year-on-year, making up 21.99% of total revenue[64]. - The company reported a comprehensive gross profit margin of 24.99%, an increase of 4.02 percentage points year-on-year[65]. Investment and Expansion - The company plans to invest in talent acquisition, information technology application, and compliance management to strengthen operational capabilities across business segments[11]. - The company expanded its consolidation scope by acquiring several agricultural companies in Xinjiang, enhancing its market presence[86]. - The company has made a significant equity investment of ¥14,922,300.00 in Xinjiang Tofeng Glacier Animal Husbandry Co., Ltd., acquiring a 35.48% stake[118]. - The ongoing major non-equity investment project, the upgrade of the veterinary biological safety level three protection project, has an actual investment of ¥122,678,020.95, with 66% project completion[119]. - The total investment amount for the reporting period was ¥1,354,728,203.71, representing a 126.26% increase compared to ¥598,741,419.38 in the same period last year[115]. - The company has initiated a biosecurity upgrade project with a planned investment of 16,722, and an actual investment of 5,296.64, achieving 31.67% of the planned investment[131]. - The company is focusing on expanding its pig farming operations in Gansu province to meet market demand due to the exit of smaller farmers[127]. - The company aims to enhance the efficiency of fund utilization to support its current development needs[127]. - The company has decided to terminate certain projects to better align with its strategic goals and improve investment efficiency[127]. - The company plans to construct a modern pig breeding farm in Xinjiang with a capacity of 10,000 parent pigs, divided into two phases of 4,800 pigs each[136]. - The total investment for the Xinjiang modern pig breeding farm project is approximately 1,475.68 million yuan, representing a 14.76% increase in project scale[138]. Research and Development - The company has a strong focus on R&D, with a recognized technology center and a commitment to enhancing innovation capabilities[63]. - The company is developing a dual inactivated vaccine for porcine circovirus type 2 and Mycoplasma pneumonia, which has shown high antigen expression and safety[95]. - The company has received approval for clinical trials of a new vaccine for foot-and-mouth disease, demonstrating effective immune response in trials[100]. - The company increased its R&D personnel from 203 to 388, a growth of 91.13% year-over-year[106]. - R&D investment amounted to ¥93,227,327.86 in 2019, representing a 5.71% increase from ¥88,192,934.83 in 2018[106]. - The company is developing a dual vaccine for small ruminant plague and goat pox, which is the first of its kind in China and internationally[102]. - The dual inactivated vaccine for small ruminant plague and goat pox is currently under registration, with safety improvements noted due to the use of cell culture for antigen production[103]. - The company plans to enhance its investment in disease prevention measures in response to the increasing demand for animal vaccines[151]. Market Trends and Challenges - The animal vaccine market in China is projected to grow from 242 billion CNY in 2018 to approximately 346 billion CNY by 2023, indicating a compound annual growth rate of about 8%-12%[150]. - The company anticipates that the commercialization of African swine fever vaccines will significantly boost the pig vaccine market, potentially doubling its scale[151]. - The feed industry is expected to see a significant increase in concentration, with a projected annual growth rate of 2.1%, reaching an industrial feed consumption of 28,053 million tons by 2029[155]. - The top three domestic pig farming companies hold market shares of 3.2%, 1.6%, and 0.8%, indicating substantial room for growth in market concentration[156]. - The company is focusing on expanding its market presence in the animal vaccine sector, driven by government policies promoting mandatory immunization[151]. - The company is responding to the African swine fever outbreak by expanding its scale and improving biosecurity measures, positioning itself to capture market share from exiting small and medium-sized farmers[134]. Corporate Governance and Compliance - The company committed to avoiding any business competition with its controlling shareholder, ensuring no similar business operations will be conducted post-transaction[177]. - The company guarantees that related party transactions will be minimized and conducted in compliance with legal regulations, ensuring no illegal occupation of funds or assets[177]. - The company has maintained a consistent cash dividend policy over the past three years, with dividends paid in 2017, 2018, and 2019[170]. - The company plans to distribute no less than 10% of its distributable profits as cash dividends annually over the next three years, with potential increases if net profits continue to grow[180]. - The company will actively pursue cash profit distribution in the next three years, adhering to relevant laws and regulations[180]. - The company has implemented new financial instrument accounting standards starting January 1, 2019, affecting the presentation of financial statements[184]. - The company did not experience any major accounting errors that required retrospective restatement during the reporting period[192]. - There were no significant lawsuits or arbitration matters reported during the period[198]. - The company did not face any situations that could lead to suspension or termination of its listing[197].