*ST天山(300313) - 2018 Q4 - 年度财报

Financial Performance - The company achieved total operating revenue of 105 million yuan, a year-on-year decrease of 46.12%[62]. - The operating profit was -1.843 billion yuan, a year-on-year decrease of 16602.72%[62]. - The total profit amounted to -1.946 billion yuan, a year-on-year decrease of 17661.91%[62]. - The net profit attributable to shareholders was -1.946 billion yuan, a year-on-year decrease of 26237.26%[62]. - Total assets reached 1.403 billion yuan, a year-on-year increase of 103.06%, with current assets increasing by 95.89% and non-current assets by 105.45%[62]. - The company reported a significant discrepancy in financial indicators compared to previously disclosed quarterly reports[27]. - The company recorded an impairment provision of 1.796 billion yuan for long-term equity investments in Daxiang Advertising due to financial misconduct[64]. - The company reported a net loss for 2018, resulting in a negative distributable profit, hence no profit distribution or capital reserve increase for the year[128]. Revenue Sources and Trends - Revenue from the livestock industry was ¥82,816,401.74, accounting for 78.70% of total revenue, down 51.72% from ¥171,534,937.13 in 2017[69]. - Revenue from live livestock decreased by 56.87% to ¥29,743,640.55, while revenue from frozen semen dropped by 67.69% to ¥14,641,204.14[72]. - Domestic revenue was ¥100,313,291.17, representing 95.33% of total revenue, down 46.78% from ¥188,479,883.79 in 2017[70]. - The company experienced a significant decline in sales of breeding stock and frozen semen, impacting overall revenue[78]. Operational Challenges and Risks - The company faced risks in its frozen semen business due to a shift from state subsidies to a competitive market environment, impacting sales performance[6]. - The company is currently under investigation by the China Securities Regulatory Commission for suspected information disclosure violations, but overall operations remain normal[10]. - The company is actively cooperating with law enforcement in an ongoing investigation related to a contract fraud case, which may pose litigation risks[9]. - The company has provided a guarantee of 100 million yuan for Daxiang Advertising, which poses a risk due to the uncertainty of Daxiang's ongoing viability[125]. - The company faces operational performance risks due to market competition in the frozen semen business and aims to improve product quality and expand sales channels[117]. Strategic Initiatives - The company plans to improve performance by expanding self-produced frozen semen sales and enhancing the quality of beef and lamb products[6]. - The company aims to enhance its operational management and cost control to maximize economic benefits and reduce performance risks[6]. - The company plans to extend its business model to include a complete industry chain from breeding to beef processing and sales[47]. - The company aims to leverage its genetic resources and technical advantages to enhance its market position in the beef industry[47]. - The company plans to focus on its core breeding business and improve operational efficiency through a partnership system and asset management[64]. Investments and Acquisitions - The company has made significant investments in infrastructure, with specific properties valued at 41,439.56 thousand for dairy barns[55]. - The company has completed payments of AUD 2.6659 million for acquiring a 37.65% stake in Zhongao Derun Livestock Co., Ltd. and AUD 13.8092 million for the Australian project[102]. - The company plans to use AUD 14.60 million of raised funds for acquisitions and debt repayment, with a portion still pending[102]. - The company has completed the acquisition of assets from the Clark family ranch in Victoria, Australia, using RMB 52.9433 million of excess raised funds for the payment[103]. Compliance and Governance - The company has committed to ensuring that all information provided regarding the transaction is true, accurate, and complete, and will bear legal responsibility for any false statements or omissions[134]. - The company has established an independent financial department with specialized personnel and a separate accounting system to ensure financial autonomy[145]. - The company guarantees that there will be no cross-employment or hierarchical relationships between its management and other entities it controls, ensuring operational independence[146]. - The company has committed to locking shares in case of any investigation findings related to false disclosures, protecting investor interests[148]. Research and Development - Research and development expenses were ¥1,288,080.87, accounting for 1.22% of total revenue, primarily for the establishment of a breeding database[81]. - The company is investing heavily in R&D, with a budget increase of 25% to 150 million yuan for new technologies[155]. - The company’s R&D personnel accounted for 17.74% of total employees in 2018, up from 12.55% in 2017[82]. Market Outlook - The company provided a positive outlook for the next quarter, projecting a revenue increase of 10% to 1.32 billion yuan[138]. - The company is expanding its market presence, targeting a 25% increase in market share within the next two years[138]. - New product launches are expected to contribute an additional 200 million yuan in revenue over the next fiscal year[137]. Legal and Regulatory Matters - The company is involved in a litigation case with Ningxia Yiyuan Animal Husbandry Co., Ltd., with a disputed amount of 5.5904 million CNY, which has completed the second-instance judgment[181]. - The company has not experienced any significant changes in the feasibility of the projects after adjustments[108]. - The company has not disposed of any subsidiaries during the reporting period[112].