众兴菌业(002772) - 2019 Q4 - 年度财报

Financial Performance - The company's operating revenue for 2019 was ¥1,155,832,460.49, representing a 24.76% increase compared to ¥926,432,056.86 in 2018[18]. - The net profit attributable to shareholders for 2019 was ¥68,403,837.18, a decrease of 38.89% from ¥111,939,025.00 in 2018[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥37,975,887.67, down 43.77% from ¥67,539,158.17 in 2018[18]. - The net cash flow from operating activities increased by 54.94% to ¥359,149,932.19 from ¥231,792,554.80 in 2018[18]. - The total assets at the end of 2019 were ¥5,012,915,611.36, a 21.99% increase from ¥4,109,398,363.54 at the end of 2018[18]. - The company reported a basic earnings per share of ¥0.19, down 38.71% from ¥0.31 in 2018[18]. - The company reported a significant increase in cash funds, with a year-end balance of 501.34 million yuan, reflecting a 105.64% increase due to increased long-term borrowings[57]. - The company’s fixed assets increased by 262.51 million yuan, a 14.61% rise, primarily due to the completion of several construction projects[57]. - The company reported a decrease in inventory by 44.81%, indicating improved sales efficiency[74]. - The company reported a total investment of 50,000,000 CNY in a new wholly-owned subsidiary established in Jiangsu[100]. Market and Industry Insights - The edible mushroom industry is experiencing rapid growth, supported by rising food consumption expenditure among urban and rural residents, with GDP increasing from CNY 10,028 billion in 2000 to CNY 99,087 billion in 2019, a growth of approximately 9.88 times[45]. - Urban residents' disposable income rose from CNY 6,256 in 2000 to CNY 42,359 in 2019, while rural residents' disposable income increased from CNY 2,282 to CNY 16,021, representing growth rates of 577% and 602% respectively[45]. - The poultry industry has also seen growth, with the number of poultry increasing from 9.305 billion in 2006 to 14.641 billion in 2019, a rise of 57.36%, providing ample chicken manure for mushroom production[51]. - The restaurant industry in China generated 4.6721 trillion yuan in revenue in 2019, driving demand for processed edible mushrooms[54]. - The edible mushroom industry in China saw a total production of 38.42 million tons in 2018, a 3.5% increase from 2017[126]. - The market value of edible mushrooms reached CNY 293.74 billion in 2018, growing by 7.92% compared to 2017[126]. Production and Operations - The company has established production bases for edible fungi in multiple provinces including Gansu, Shaanxi, and Shandong[28]. - The company has a daily production capacity of 905 tons for edible mushrooms, with 745 tons for enoki mushrooms and 160 tons for button mushrooms, placing it at the forefront of the industry[56]. - The company has completed major projects including a 32,400-ton annual production facility for enoki mushrooms and a 20,000-ton facility for button mushrooms, contributing to a significant increase in production capacity[132]. - The company launched several major projects, including a 32,400-ton gold needle mushroom production project and a 20,000-ton button mushroom production project, which have been completed and put into operation[66]. - The company has established production bases in multiple provinces, including Gansu, Shaanxi, Shandong, Jiangsu, Henan, Jilin, Sichuan, Anhui, and Hubei, ensuring broad market coverage[60]. Research and Development - The company’s research and development capabilities are enhanced by its independent R&D center, which is recognized as a provincial-level technology center and has advanced equipment for mushroom cultivation[42]. - The total R&D investment for 2019 was CNY 13,144,589.85, representing a 7.43% increase from 2018, while the R&D investment as a percentage of operating income decreased to 1.14%[85]. - The company plans to enhance its edible mushroom strain research system and establish an independent strain library to provide high-quality strains to domestic and international markets[130]. - The company aims to improve the quality and yield of edible mushroom products by increasing R&D investment and adopting advanced technologies[133]. Financial Management and Investments - The company has a long-term investment strategy, focusing on sustainable growth and profitability in the agricultural sector[100]. - The company has utilized both self-owned funds and raised capital for its investment projects, ensuring diversified funding sources[105]. - The company has committed to projects totaling RMB 201,035.6 million, with RMB 164,523.6 million already invested[114]. - The company has a remaining balance of RMB 60,078.94 million in unutilized raised funds[108]. - The company raised RMB 90,290 million through the public issuance of convertible bonds, with RMB 51,874.27 million utilized by the end of 2019, leaving RMB 40,262.54 million in the special account[110]. Risk Management - The company emphasizes the importance of risk awareness for investors regarding forward-looking statements and performance forecasts[6]. - The company faces risks related to product quality instability due to new strains and changes in cultivation methods, which could impact profitability[137]. - The company is exposed to price decline risks in the industry due to increased competition and supply exceeding demand[138]. - Seasonal fluctuations in revenue and profit are a concern, with potential impacts from varying consumer demand throughout the year[139]. - The company acknowledges the risk of food safety issues that could arise from production processes, potentially affecting product quality and brand reputation[142]. Corporate Governance and Compliance - The company emphasizes compliance with laws and regulations, ensuring that all related transactions are conducted at fair pricing to protect its interests[163]. - The company has established measures to ensure that any violations of commitments will result in economic liability for the responsible party[163]. - The company has committed to fulfilling its obligations to minority shareholders and has reported compliance with these commitments[171]. - The company is focused on maintaining transparency and accountability in its financial reporting and commitments to investors[167]. - The company has a structured approach to managing potential conflicts of interest and ensuring transparency in its operations[163]. Shareholder Returns - The company reported a cash dividend of 1.00 RMB per 10 shares (including tax) for the 2019 profit distribution plan[6]. - In 2019, the company plans to distribute cash dividends of 1.00 RMB per 10 shares, with a total cash dividend amounting to 36,769,840.90 RMB, maintaining a payout ratio of 53.75% of the net profit attributable to ordinary shareholders[157]. - The total cash dividend for 2019, including other methods, is projected to be 100,771,002.67 RMB, representing 147.32% of the net profit attributable to ordinary shareholders[157]. - The company has not proposed any stock dividends or capital reserve transfers for the reporting period, focusing solely on cash dividends[158].