TECON(SZ:002100)2022-04-26 16:00Financial Performance - In 2021, TianKang Bio experienced significant losses in its pig farming business due to a sharp decline in domestic pig sales prices, marking the company's first loss in over 20 years[5]. - The company's operating revenue for 2021 was ¥15,744,337,617.02, representing a 31.35% increase compared to ¥11,986,808,944.23 in 2020[34]. - The net profit attributable to shareholders for 2021 was -¥685,964,477.34, a decrease of 139.87% from ¥1,720,414,461.95 in 2020[34]. - The net cash flow from operating activities improved significantly to ¥1,532,960,475.93, compared to -¥600,857,389.57 in 2020, marking a 355.13% increase[34]. - The total assets at the end of 2021 were ¥17,184,738,668.37, which is a 9.25% increase from ¥15,729,293,585.91 at the end of 2020[34]. - The company reported a basic earnings per share of -¥0.62 for 2021, down 138.51% from ¥1.61 in 2020[34]. - The weighted average return on equity for 2021 was -11.75%, a decline of 43.61% from 31.86% in 2020[34]. - The company reported a net profit attributable to shareholders of CNY -68,596.45 million, a decline of 139.87% compared to the previous year[68]. Business Strategy and Operations - The company aims to stabilize its pig farming scale at 5 million heads, focusing on healthy and high-quality development[5]. - The overall strategy for 2022 includes maintaining a complete industry chain and focusing on high-quality development amidst the challenges of the "pig cycle"[5]. - The company plans to explore futures hedging with a target amount of 1 billion RMB in 2022 to mitigate risks associated with falling pig prices[6]. - The company will implement a cost reduction strategy by establishing a cost big data analysis and early warning platform to identify and control cost points[6]. - The management emphasizes the importance of learning from the experiences of 2021 to navigate future opportunities and challenges[7]. - The company aims to achieve a feed production and sales volume of 3 million tons, with a target of 220,000 pigs slaughtered and 1.989 billion yuan in total revenue for 2022[177]. - The company will focus on a full-cost leadership strategy in its feed business, ensuring efficiency across procurement, production, logistics, and human resources[178]. Research and Development - TianKang Bio will enhance research and development efforts in feed and breeding technology to further reduce costs[6]. - The company has committed to not distributing cash dividends or bonus shares for the year[12]. - The company has developed a vaccine for porcine reproductive and respiratory syndrome (PRRS) that requires only a single injection, reducing labor and stress on pigs, which is expected to positively impact performance[1]. - The company has obtained new veterinary drug registration certificates for multiple vaccines, including those for porcine pleuropneumonia and foot-and-mouth disease, enhancing its product portfolio[1]. - The company aims to enhance its market competitiveness by diversifying its vaccine product line with the successful development of new vaccines[96]. - The company achieved a research and development investment of ¥142,889,664.78 in 2021, representing a 37.41% increase from ¥103,986,145.98 in 2020[108]. - The proportion of R&D investment to operating revenue increased to 0.91% in 2021 from 0.87% in 2020, showing a slight growth of 0.04%[108]. Market and Industry Trends - In 2021, China's pork production reached 52.96 million tons, an increase of 28.8% year-on-year, with a total of 671.28 million pigs slaughtered, up 27.4% from the previous year[171]. - By the end of 2021, the national pig stock was 449.22 million heads, and the breeding sow stock was 43.29 million heads, representing growth of 10.5% and 4.0% respectively compared to the end of 2020[171]. - The agricultural policy aims to stabilize pork production capacity at around 55 million tons and maintain a self-sufficiency rate of approximately 95% for pork[173]. - The company recognizes the increasing market concentration in the feed industry and aims to leverage its core competencies to thrive amid challenges[170]. Risk Management and Compliance - The company has established a robust biosecurity management system for pig farming to mitigate the risks associated with African swine fever, which remains a significant threat since the first case was reported in August 2018[185]. - The company has strengthened its internal control systems and governance structures in compliance with relevant laws and regulations, ensuring operational transparency[194]. - The board of directors consists of nine members, including three independent directors, ensuring compliance with governance standards[197]. - The company has maintained fair and reasonable related-party transactions with its controlling shareholder, ensuring independence in operations and decision-making[196]. Investment and Financing - The company raised 2.066 billion RMB through a private placement at the end of 2021 and plans to apply for a bank financing limit of 9.61 billion RMB in 2022 to maintain stable cash flow[6]. - The total investment amount for the reporting period was ¥1,790,315,527.80, representing a 91.43% increase from the previous year's investment of ¥935,224,113.03[118]. - The company has established a professional futures team to monitor market price trends and control futures positions[128]. - The company has completed the replacement of 38,797.86 million yuan of self-raised funds with raised funds for investment projects[144].