LONGDA(SZ:002726)2021-03-29 16:00Financial Performance - The total revenue for 2020 was 3.5 billion RMB, representing a year-on-year increase of 15%[18]. - The net profit attributable to shareholders was 250 million RMB, an increase of 20% compared to the previous year[18]. - The company's operating revenue for 2020 was ¥24,101,638,774.23, representing a 43.27% increase from ¥16,822,362,113.63 in 2019[26]. - The net profit attributable to shareholders for 2020 was ¥905,816,886.07, a significant increase of 276.06% compared to ¥240,871,447.47 in 2019[26]. - The net cash flow from operating activities for 2020 was ¥1,325,020,082.82, a turnaround from a negative cash flow of ¥1,371,330,219.83 in 2019, marking a 196.62% improvement[26]. - Basic earnings per share for 2020 were ¥0.91, up 279.17% from ¥0.24 in 2019[29]. - The total assets at the end of 2020 were ¥8,551,436,933.53, reflecting a 35.35% increase from ¥6,318,139,722.55 at the end of 2019[29]. - The net assets attributable to shareholders increased by 45.81% to ¥3,385,987,457.83 in 2020 from ¥2,322,221,294.30 in 2019[29]. - The company reported a diluted earnings per share of ¥0.81 for 2020, which is a 237.50% increase from ¥0.24 in 2019[29]. - The weighted average return on equity for 2020 was 32.55%, significantly higher than 10.83% in 2019[29]. - The company achieved a revenue of CNY 2,410,163.88 million, a 43.27% increase year-over-year, and a net profit of CNY 90,581.69 million, up 276.06% from the previous year[66]. Market Expansion and Strategy - The company plans to expand its market presence by increasing production capacity by 30% in the next fiscal year[6]. - Future guidance estimates a revenue growth of 10-15% for the upcoming year, driven by new product launches and market expansion[6]. - The company has completed the acquisition of a local competitor, which is expected to enhance its market share by 5%[6]. - The company has initiated a new retail department to explore e-commerce, live streaming, and community group buying channels since October 2020[40]. - The company is expanding its sales channels nationwide, including e-commerce and large retail chains, to enhance market penetration[55]. - The company plans to increase its annual pig slaughter capacity to approximately 50 million heads by 2025, achieving a nationwide layout and coverage in Northeast, East China, Central China, and South China regions[135]. - The company aims to enhance its low-temperature meat products and develop new high-end leisure meat products, leveraging domestic and international resources for collaboration[135]. Research and Development - The company is investing 100 million RMB in new product development, focusing on organic meat products[18]. - Research and development expenses increased by 30% to 50 million RMB, reflecting a commitment to innovation[18]. - The company expanded its R&D centers, establishing a new center in Shanghai and planning one in Chengdu to enhance product development capabilities[93]. - The company actively collaborates with academic institutions for research on improving pig farming performance and disease prevention[93]. Supply Chain and Production - The company has established a "full industry chain" business model focusing on slaughtering, processing, and meat products, which enhances product quality and reduces operational costs[39]. - As of the end of 2020, the company's slaughtering capacity was 10 million heads per year, with an actual slaughter volume of 4.065 million heads in 2020[39]. - The company’s breeding capacity was 600,000 heads per year, with a total of 318,500 heads sold in 2020, primarily for internal use[43]. - The company aims to enhance its supply chain by expanding its self-owned standardized pig breeding bases, which will stabilize raw material supply and improve profitability during high price cycles[51]. - The company has established long-term partnerships with over 1,000 major food processing and restaurant enterprises, including Yum! Brands and McDonald's[52]. Financial Management and Investments - The company raised a total of CNY 143,371.95 million through public offerings, with CNY 50,391.75 million remaining unutilized[107]. - The company reported a cash dividend of 1.82 yuan per 10 shares, totaling 181,988,047 yuan, which represents 20.09% of the net profit attributable to ordinary shareholders[157]. - The company has established a strict approval system for the use of raised funds to ensure dedicated usage[113]. - The company has committed to limit the pig industry chain project to three cities in Sichuan Province: Bazhong, Dazhou, and Nanchong, ensuring no commercial opportunities are missed[163]. Risks and Challenges - The company anticipates facing risks related to supply chain disruptions and fluctuating raw material prices in the coming year[6]. - The company faces risks related to animal diseases, particularly African swine fever, which could significantly impact its pig farming operations[145]. - Fluctuations in pig prices pose a risk to the company's profitability, as sales prices of products are closely linked to procurement costs[146]. - Environmental regulations may impose additional costs on the company if stricter pollution control measures are implemented in the future[150]. Corporate Governance - The company has established a complete corporate governance structure, ensuring independence from its controlling entities and maintaining separate operational facilities[172]. - The company has committed to avoiding or minimizing related party transactions to protect the interests of shareholders[186]. - The company guarantees that its subsidiaries will operate independently, with their own production and sales systems, and will not rely on the parent company for operations[172].