TECON(SZ:002100)2023-04-28 16:00Financial Performance - The company reported a non-operating loss of approximately ¥12.39 million in 2022, compared to a loss of ¥30.67 million in 2021, indicating a significant improvement [2]. - Government subsidies recognized in the current period amounted to ¥64.24 million, up from ¥35.44 million in 2021, reflecting a 81.3% increase [2]. - The company achieved a gain of ¥54.50 thousand from investments in subsidiaries, which is a notable recovery from a loss of ¥611.76 thousand in 2020 [2]. - The fair value changes from trading financial assets resulted in a profit of ¥3.75 million, down from ¥6.41 million in 2021, showing a decrease of 41.5% [2]. - In 2022, the company achieved operating revenue of 16.732 billion RMB, an increase of 6.5% compared to the previous year, and net profit attributable to shareholders of 302 million RMB, marking a turnaround from losses [163]. Employee and Governance - The total number of employees at the end of the reporting period was 5,067, with 56 in the parent company and 5,011 in major subsidiaries [26]. - The company has implemented an "excess profit sharing system" as part of its compensation policy to align with its strategic goals [28]. - There are no stock incentive plans for directors and senior management during the reporting period [32]. - The company has 147 employees participating in the employee stock ownership plan, holding a total of 6,363,400 shares, which is 0.47% of the total share capital [33]. - The company’s board of directors actively participated in meetings, with all members attending 12 meetings during the reporting period [50]. Internal Control and Compliance - The internal audit department has strengthened its oversight of the internal control system, enhancing compliance and risk management practices [39]. - The company has established a comprehensive internal control system in accordance with regulations from the China Securities Regulatory Commission and the Shenzhen Stock Exchange [39]. - The company reported zero significant deficiencies in financial reporting controls during the reporting period [41]. - There were no material weaknesses identified in internal controls, indicating a strong control environment [42]. - The company has established a robust internal control system to ensure the accuracy and completeness of financial information [91]. Environmental Responsibility - The company has complied with environmental regulations and standards, ensuring responsible operational practices [72]. - The company established an emergency response center led by the general manager to handle environmental pollution incidents, ensuring clear responsibilities and training for staff [75]. - The company has implemented automatic online monitoring equipment for wastewater treatment, measuring parameters such as chemical oxygen demand and ammonia nitrogen [79]. - The company reported a total discharge of 0.00735 tons of chemical oxygen demand and 0.000334 tons of ammonia nitrogen, with no exceedance of discharge standards [99]. - The company has a valid pollution discharge permit until October 28, 2026, for its plant protein production operations [98]. Strategic Development and Market Position - The company plans to enhance its market expansion strategies and product offerings in the upcoming fiscal year [1]. - The company is actively involved in market expansion and product development, particularly in the field of plant-based proteins [90]. - The company aims to become a leading health farming service provider and safe food supplier in China, achieving a complete closed loop in modern animal husbandry across four key areas: breeding, feed management, animal medicine, and meat processing sales [128]. - The company has completed a mixed-ownership reform in its animal health business, introducing new strategic investors and implementing employee stock ownership to enhance business focus and vitality [167]. - The company is enhancing its digital transformation efforts, focusing on cost reduction in breeding, disease prevention, and smart farming [168]. Financial Management and Future Plans - The company plans to distribute cash dividends of 2.2 RMB per 10 shares, totaling approximately 298,010,804.3 RMB (including tax) for the fiscal year 2022 [31]. - The company has committed to a cash dividend distribution of no less than 10% of the distributable profit achieved in the year, with plans for annual distributions over the next three years [118]. - The company plans to increase cash dividend ratios if net profits continue to grow steadily over the next three years [118]. - The company has committed to terminating non-core financial business operations within six months to maintain focus on its primary business [116]. - The company has made adjustments to its accounting practices regarding research and development expenditures and sales rebates, impacting its profit and tax liabilities [123][139]. Industry Insights - In 2022, China's pig inventory reached 452.56 million heads, an increase of 3.34 million heads or 0.74% year-on-year, while the slaughter volume was 699.95 million heads, up 28.67 million heads or 4.27% year-on-year [143]. - The animal vaccine industry is supported by national policies aimed at improving animal disease prevention systems, with a focus on innovation and large-scale production [146]. - The implementation of the new veterinary drug GMP standards is expected to lead to industry consolidation, improving product quality and increasing market concentration [147]. - The veterinary drug industry experienced a significant reduction in profitability in the first half of 2022, but began to recover in the second quarter, with a positive trend in revenue and profit in the third quarter [148]. - The total output of the national feed industry reached 30.223 million tons in 2022, a growth of 3.0% year-on-year, with a significant increase in bulk feed sales by 18.5% [157].