*ST佳沃(300268) - 2018 Q4 - 年度财报

Financial Performance - The company's operating revenue for 2018 was CNY 1,927,433,986.45, representing a 235.41% increase compared to CNY 574,645,139.94 in 2017[19] - The net profit attributable to shareholders for 2018 was CNY 24,532,325.35, a significant increase of 901.57% from CNY 2,449,384.82 in 2017[19] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 3,481,190.67, up 436.16% from CNY 649,279.10 in 2017[19] - The basic earnings per share for 2018 was CNY 0.18, an increase of 800% compared to CNY 0.02 in 2017[19] - The total assets at the end of 2018 amounted to CNY 1,214,612,451.21, reflecting a 15.37% increase from CNY 1,052,811,431.12 at the end of 2017[19] - The net assets attributable to shareholders at the end of 2018 were CNY 237,846,948.30, an increase of 11.48% from CNY 213,354,295.28 at the end of 2017[19] - The weighted average return on equity for 2018 was 10.87%, up from 1.15% in 2017[19] - The company reported a negative net cash flow from operating activities of CNY -185,970,827.67 for 2018, worsening by 296.75% from CNY -46,874,132.60 in 2017[19] Revenue Breakdown - The company achieved total operating revenue of CNY 1,927,433,986.45, representing a year-on-year increase of 235.41%[31] - The net profit attributable to shareholders reached CNY 24,532,325.35, a significant increase of 901.57% compared to the previous year[31] - Revenue from animal protein segment was ¥1,927,184,854.01, accounting for 99.99% of total revenue, with a year-on-year growth of 255.75%[47] - Seafood products generated ¥1,507,085,232.65 in revenue, representing 78.19% of total revenue, with a growth of 197.52% from ¥506,553,647.41 in 2017[49] - The company’s domestic sales amounted to ¥1,194,795,645.56, which is 61.99% of total revenue, reflecting a 227.00% increase year-on-year[46] Asset Management - Accounts receivable increased by 137.50% from the beginning to the end of the period, primarily due to substantial revenue growth from subsidiaries[34] - Prepaid accounts increased by 54.63%, driven by inventory expenditure related to business expansion[34] - Long-term deferred expenses rose by 109.40%, mainly due to increased renovation costs for subsidiary office facilities[34] - Other non-current assets surged by 988.53%, primarily due to prepaid land payments by subsidiaries[34] - The total inventory at the end of 2018 was CNY 511,756,820.85, representing 42.13% of total assets[64] Strategic Positioning - The company became the largest importer and distributor of Arctic sweet shrimp in the Chinese market, and a key data provider for import pricing[32] - The company also established itself as the largest processor and exporter of cod fish in China, enhancing its industry position[32] - The company is strategically positioned to leverage global resources to meet the growing domestic demand for high-end animal protein products[28] - The company is focusing on expanding its market share in the domestic retail channels, particularly in large supermarkets and e-commerce[77] - The company aims to become a leading enterprise in the seafood industry by focusing on high-end animal protein, particularly imported seafood[75] Cash Flow and Financing - Operating cash inflow for 2018 was ¥1,920,659,493.62, up 237.36% from ¥569,312,160.27 in 2017[58] - The company incurred a net cash outflow from operating activities of ¥185,970,827.67, worsening by 296.75% compared to the previous year[58] - In 2018, the net cash flow from financing activities increased by 97.85% to CNY 175,049,705.78 compared to CNY 88,473,894.58 in 2017[59] - The net cash flow from investment activities grew by 357.38%, primarily due to the transfer of 100% equity in a subsidiary, generating an investment income of CNY 19,388,112.86[60] Corporate Governance - The company has established a stable profit distribution policy, but no cash dividends were proposed for the reporting period[87] - The company has committed to avoiding any business activities that may harm the interests of Wanfushengke and its other shareholders, ensuring no competition with its subsidiaries[89] - The company guarantees compliance with relevant regulations and the articles of association of Wanfushengke, ensuring equal treatment of all shareholders[90] - The company has established a complete and independent organizational structure to ensure corporate governance[91] - The company operates independently from its controlling shareholder in terms of business, personnel, assets, organization, and finance, with no reliance on the shareholder for operations[171] Risk Management - The company faces raw material price fluctuation risks due to increasing scarcity of marine resources and rising oil prices, which may negatively impact gross margins and net profits[79] - The company is exposed to trade environment and exchange rate risks, with strategies including reducing USD exposure and adjusting sales prices to mitigate these risks[79] - The company emphasizes food safety and quality control, implementing various quality management systems to ensure compliance with food safety regulations[80] Audit and Compliance - The audit opinion issued by the accounting firm was a standard unqualified opinion, confirming the fair presentation of the company's financial statements for the year ended December 31, 2018[190] - The company maintained effective internal controls related to financial reporting as of December 31, 2018, according to the internal control audit report[185] - There were no significant deficiencies identified in the internal control evaluation report for both financial and non-financial reporting[182] - The audit procedures included evaluating the effectiveness of internal controls related to revenue recognition and verifying sales contracts to ensure compliance with accounting standards[193] Employee Management - The total number of employees in the company is 2,340, with 2,328 in major subsidiaries and 12 in the parent company[161] - The company has established a comprehensive training system to enhance employee capabilities and support strategic goals[164] - The remuneration for directors and senior management is determined based on the company's profitability and individual performance[159] - The company has implemented a performance-based incentive system to attract and retain talent[163] Environmental Responsibility - The company has established a strict environmental management system and has not encountered any major environmental issues during the reporting period[127] - The company actively participates in social welfare activities, including environmental protection and poverty alleviation, in its operating regions[125] - The company has developed an emergency response plan for environmental incidents, which has been filed with the local environmental protection bureau[128]