Haixin Foods (SZ:002702)2019-03-19 16:00Financial Performance - The company's operating revenue for 2018 was ¥1,144,513,008.61, an increase of 18.24% compared to ¥967,959,596.22 in 2017[20]. - The net profit attributable to shareholders for 2018 was ¥34,894,498.02, a significant increase of 227.90% from a loss of ¥27,281,941.24 in 2017[20]. - The net profit after deducting non-recurring gains and losses was ¥28,213,371.89, up 192.10% from a loss of ¥30,632,046.60 in 2017[20]. - The net cash flow from operating activities reached ¥76,927,877.01, a remarkable increase of 712.78% compared to ¥9,464,785.76 in 2017[20]. - The basic earnings per share for 2018 was ¥0.0726, compared to a loss of ¥0.0567 in 2017, marking a 228.04% improvement[20]. - The total profit reached CNY 4,167.76 million, marking a significant year-on-year increase of 269.23%[38]. - The net profit amounted to CNY 3,489.45 million, reflecting a year-on-year growth of 227.90%[38]. Dividend Distribution - The company plans to distribute a cash dividend of 0.50 CNY per 10 shares to all shareholders, based on a total of 480,760,000 shares[6]. - The total cash dividend amount for 2018 is CNY 24,038,000, which represents 68.89% of the net profit attributable to shareholders[85]. - The company has not distributed cash dividends for the years 2016 and 2017 due to negative net profits[83]. - The company committed to distributing no less than 20% of the annual distributable profits in cash to shareholders for the years 2018-2020[90]. Business Operations - The company has not changed its main business since its listing, indicating stability in its operational focus[19]. - The company operates in the frozen fish and meat products sector, which is experiencing a trend towards high-end product development and market consolidation[30]. - The company has maintained a leading position in the industry as the first listed company, with significant production capacity and market share[31]. - The company launched 22 new products during the reporting period and established 5 new functional laboratories in its technology center[38]. - The company has established a nationwide marketing network with over 17,000 terminal outlets, enhancing product accessibility[35]. Research and Development - Research and development expenses increased by 48.23% to 21,547,033.38 CNY, representing 1.88% of total operating revenue, up from 1.50% in 2017[54][55]. - The company developed 22 new products and established five new functional laboratories, enhancing its R&D capabilities[55]. Inventory and Assets - The company's total assets at the end of 2018 were ¥1,153,778,616.71, an increase of 7.42% from ¥1,074,053,968.12 at the end of 2017[20]. - The inventory increased to 235,460,354.70 CNY, representing 20.41% of total assets, up from 19.14% in 2017[61]. - The inventory balance as of December 31, 2018, is ¥235,460,354.79, which poses a significant risk of impairment if not sold timely[187]. Financial Position - The total assets included cash and cash equivalents of 91,924,190.65 CNY, which accounted for 7.97% of total assets, an increase from 7.23% in 2017[60]. - The total liabilities increased to CNY 349,479,835.80 from CNY 303,860,026.44, representing a growth of about 15.00%[197]. - Owner's equity rose to CNY 804,298,780.91 from CNY 770,193,941.68, indicating an increase of approximately 4.42%[198]. Risk Management - The company emphasizes the importance of risk awareness and prudent decision-making for investors, highlighting potential risks and countermeasures in future development[6]. - Approximately 80% of the company's operating costs are attributed to raw materials such as fish paste, meat, and starch, making raw material price fluctuations a significant risk[78]. - The company emphasizes strict quality control throughout the supply chain to mitigate food safety risks[78]. Environmental Compliance - The company faced an administrative penalty of RMB 655,750 due to non-compliance with environmental regulations[97]. - The company invested over 1 million RMB in environmental protection measures, achieving significant progress in pollution control and ensuring compliance with emission standards[120]. - The company has established a wastewater treatment system with a capacity of 1,500 m³/d, ensuring compliance with environmental discharge standards[119]. Shareholder Information - The total number of shares decreased from 50,670,200 to 48,076,000 due to the repurchase and cancellation of 2,594,200 restricted shares[135]. - The largest shareholder, Teng Yongxiong, holds 18.67% of the shares, with a total of 89,760,000 shares, having decreased his holdings by 2,890,000 shares during the reporting period[138]. - The total number of common shareholders at the end of the reporting period was 50,186, an increase from 47,950 at the previous month-end[137]. Employee Information - The total number of employees in the company is 1,325, with 370 in the parent company and 955 in major subsidiaries[155]. - The company has established a performance-based salary system that includes basic salary, performance bonuses, and year-end bonuses[157]. - The total remuneration for directors and senior management during the reporting period amounts to 1,021.47 million yuan[154]. Governance and Compliance - The audit opinion for the financial statements was a standard unqualified opinion, affirming fair representation of the company's financial status[184]. - The internal control self-assessment report indicated no significant deficiencies in internal controls during the reporting period[178]. - The company has not provided any guarantees using its assets or credit for shareholders or related enterprises, maintaining full control over its assets[167].