JINZI HAM(SZ:002515)2019-05-10 16:00Financial Performance - The company's operating revenue for 2018 was ¥426,424,363.92, representing a 14.58% increase compared to ¥372,169,932.74 in 2017[27]. - The net profit attributable to shareholders was -¥8,429,931.88, a decrease of 107.81% from ¥107,968,071.99 in the previous year[27]. - The net cash flow from operating activities was -¥123,723,951.13, a decline of 765.16% compared to ¥18,600,741.80 in 2017[27]. - Total assets at the end of 2018 were ¥1,494,700,315.57, down 35.16% from ¥2,305,185,366.90 at the end of 2017[27]. - The basic earnings per share for 2018 was -¥0.01, a decrease of 109.09% from ¥0.11 in 2017[27]. - The weighted average return on equity was -0.56% in 2018, down from 7.46% in 2017[27]. - The company reported a significant increase in non-operating income from government subsidies, totaling ¥6,532,971.48 in 2018[33]. - The company experienced a net loss of -¥19,025,994.56 after deducting non-recurring gains and losses, compared to a loss of -¥2,615,322.19 in 2017, marking a 627.48% increase in losses[27]. - The company reported a revenue of 1.168 billion CNY for the year 2018, reflecting a year-on-year increase of 15%[161]. - The net profit attributable to shareholders was 120 million CNY, representing a growth of 10% compared to the previous year[161]. Dividend and Profit Distribution - The company reported a profit distribution plan, proposing a cash dividend of 0.00 RMB per 10 shares, with no bonus shares issued[12]. - The total cash dividend for 2018 was 73,278,507.89 CNY, which accounted for 100% of the distributable profit[140]. - The cash dividend amount in 2018 represented 869.27% of the net profit attributable to the company's ordinary shareholders[139]. - The company did not distribute cash dividends or bonus shares in 2016 and 2017, with cash dividends being 0.00 CNY for those years[139]. - The total distributable profit for 2018 was 258,231,272.50 CNY[140]. - The company has not conducted any cash distribution or bonus share issuance in the past three years[139]. - The company plans to submit the profit distribution proposal for shareholder approval[140]. - The cash dividend distribution plan is based on a share capital base of 938,467,227 shares, excluding repurchased shares[142]. Market and Product Development - The company has a strong focus on expanding its market presence and enhancing product offerings through new technologies and product development[20]. - The company plans to enhance its ham, sausage, and sauce meat product lines, launching new brands and adopting new retail and precision marketing strategies[40]. - The company aims to expand its market presence by integrating and acquiring businesses to create leading enterprises in their respective segments[47]. - The company aims to stabilize the growth of ham products while rapidly developing sausages and sauces as new growth points, alongside a focus on new retail strategies[127]. - New product development is a priority, focusing on high-value and high-quality products to meet changing consumer demands[127]. Quality Control and Safety - The company adheres to strict quality control measures, implementing ISO9001, ISO22000, and ISO14001 standards to ensure food safety and product quality[8]. - The company emphasizes the importance of food safety and quality control in response to increasing consumer awareness and regulatory scrutiny[8]. - The company has established a monitoring and quality control system to ensure key processes are closely monitored, safeguarding product quality[11]. - The company emphasizes food safety and quality control, adhering to ISO standards and implementing strict monitoring throughout the production process[128]. Operational Challenges - The company faces risks from pork price fluctuations, which directly impact raw material procurement costs, influenced by factors such as supply and demand, feed prices, and pig growth cycles[7]. - The production cycle for ham exceeds 10 months, leading to a significant proportion of inventory in current assets, which poses liquidity risks[12]. - The fluctuation of pork prices poses a risk to the company's operations, as pork is the main raw material; however, the company plans to mitigate this by optimizing procurement strategies[127]. - The company is committed to increasing product quality and profitability by optimizing inventory structure and enhancing production efficiency[127]. Subsidiaries and Investments - The company sold 51% of its stake in Zhongyu Capital, exiting the pharmaceutical and healthcare industry to focus on the meat products sector[40]. - The company operates in the health industry through Zhongyu Capital, which includes a holding business system, a medical business system centered on doctor groups, and a health industry asset management business system[41]. - The company has established a health industry ecosystem with three core platforms: controlling industrial systems, Zhongyu Doctor Group medical systems, and health industry asset management systems[51]. - The company completed the sale of 51% of its stake in Zhongyu Capital, which is no longer included in the consolidated financial statements[66]. - The company disposed of Zhongyu Capital, resulting in significant changes in major assets, including equity, fixed assets, and intangible assets[52]. Research and Development - Research and development expenses for the year amounted to 13.16 million CNY, indicating a focus on innovation and new product development[165]. - The company has adopted a "customized R&D + customized production" model for innovative drug intermediates through its subsidiary Ruiyi Technology[41]. - The company’s subsidiary, Ruiyi Technology, applied for 14 national invention patents, focusing on innovation and quality improvement[66]. - The company holds national invention patents related to the production of low-salt Jinhua ham and ham broth, showcasing its technological and process advantages[56]. Revenue and Sales Performance - The main business revenue from the ham products segment was 180.78 million yuan, while the medical health segment generated 171.13 million yuan[68]. - The ham industry generated revenue of ¥180,783,579.77, representing a 17.53% increase year-over-year, with a gross margin of 29.56%[72]. - The medical and pharmaceutical sector reported revenue of ¥171,133,197.30, a 39.78% increase from the previous year, with a gross margin of 53.61%[72]. - The company reported a significant increase in other business income, which rose by 87.70% to ¥14,989,925.09[72]. - The company experienced a 64.78% increase in manufacturing costs for ham products, totaling ¥6,159,037.32, which is 2.49% of the total operating costs[84]. Asset Management - The total assets included cash and cash equivalents of 259,954,855.00 CNY, representing 17.39% of total assets[102]. - Inventory decreased to 163,971,713.12 CNY, accounting for 10.97% of total assets, down from 183,956,804.41 CNY[102]. - Other receivables increased significantly to 667,644,111.76 CNY, making up 44.67% of total assets, primarily due to unpaid equity transfer amounts[102]. - The company reported a total investment of ¥0.00 during the reporting period, a 100% decrease from ¥168,260,000.00 in the previous year[111]. Compliance and Governance - The company confirmed compliance with share transfer restrictions for its executives, ensuring stability in management ownership[161]. - There were no significant accounting errors that required retrospective restatement during the reporting period[166]. - The company has adopted new accounting policies in line with the Ministry of Finance's guidelines, impacting the presentation of financial statements[164]. - The current accounting firm, Tianjian Accounting Firm, has been providing audit services for 11 consecutive years, with a fee of CNY 450,000[171]. - The company did not face any situations that could lead to suspension or termination of listing during the reporting period[174].