VTR(SZ:300381)2020-04-27 16:00Financial Performance - The company's operating revenue for 2019 was CNY 2,048,133,404.03, representing a 15.83% increase compared to CNY 1,768,167,808.17 in 2018[15]. - The net profit attributable to shareholders for 2019 was CNY 127,522,059.24, up 12.35% from CNY 113,508,486.63 in the previous year[15]. - The net profit after deducting non-recurring gains and losses was CNY 98,113,603.76, a significant increase of 98.84% compared to CNY 49,342,337.16 in 2018[15]. - The net cash flow from operating activities reached CNY 442,165,361.20, marking a 116.80% increase from CNY 203,948,204.25 in 2018[15]. - The total assets at the end of 2019 were CNY 4,518,083,187.45, a decrease of 5.90% from CNY 4,801,120,582.60 in 2018[15]. - The net assets attributable to shareholders increased by 15.09% to CNY 2,465,213,969.38 from CNY 2,142,005,405.16 in 2018[15]. - The basic earnings per share for 2019 were CNY 0.3054, reflecting a 9.42% increase from CNY 0.2791 in 2018[15]. - The diluted earnings per share were CNY 0.3009, up 7.81% from CNY 0.2791 in the previous year[15]. - The weighted average return on equity was 5.63%, slightly down from 5.72% in 2018[15]. - The company proposed a cash dividend of CNY 0.6 per 10 shares, based on a total share capital of 439,841,924 shares as of December 31, 2019[5]. Revenue Breakdown - Total revenue for the year reached approximately 2.048 billion yuan, with a quarterly breakdown showing Q1 at 341.31 million yuan, Q2 at 513.84 million yuan, Q3 at 547.08 million yuan, and Q4 at 645.90 million yuan[18]. - The net profit attributable to shareholders for the year was approximately 44.25 million yuan in Q4, following a loss of 18.15 million yuan in Q1[18]. - The net cash flow from operating activities for the year was positive, with Q4 generating 197.01 million yuan, significantly improving from a negative cash flow of 6.02 million yuan in Q1[18]. - Revenue from the biopharmaceutical sector accounted for 58.93% of total revenue, with a year-on-year increase of 9.13%[54]. - Revenue from the bioproducts sector represented 24.89% of total revenue, showing a slight increase of 0.55% year-on-year[54]. - The biomanufacturing sector saw a significant growth of 278.31%, contributing CNY 114.54 million to total revenue[54]. - The company's revenue from steroid hormone raw materials reached ¥1,206,896,724.09, accounting for 58.93% of total revenue, with a year-on-year growth of 9.13%[55]. - Revenue from functional feed additives surged to ¥114,540,690.34, representing 5.59% of total revenue, with a remarkable year-on-year increase of 278.31%[55]. Market and Product Development - The company focuses on the research, production, and sales of biological enzyme preparations, steroid hormone raw materials, and functional feed additives, indicating a diverse product portfolio[25]. - The biological enzyme products include feed enzymes, energy enzymes, food enzymes, and environmental enzymes, which are essential for various industrial applications[26]. - The steroid hormone raw materials primarily serve respiratory and immune system medications, with key products including prednisone and dexamethasone[27]. - The company aims to replace antibiotics in animal feed with its functional feed additives, which have shown effectiveness in promoting growth and reducing diarrhea rates in livestock[28]. - The company is focusing on optimizing production processes and reducing product costs to enhance operational efficiency[30]. - The company is positioned to benefit from the increasing industry concentration as smaller firms exit the market due to product homogenization[32]. - The company has expanded its enzyme product categories from feed enzymes to energy, food, paper, textile, and environmental enzymes, indicating a broad market strategy[37]. - The company is focusing on developing new products, including a fermentation-based progesterone product, which is expected to become a key offering[68]. - The company is advancing the development of antibiotic alternatives through the expression systems of glucose oxidase and related functional enzymes, contributing to new profit growth points[70]. Research and Development - The company has developed 4 proprietary technologies and holds 174 invention patents, showcasing its strong innovation capabilities[41]. - Research and development expenses increased by 23.02% from 90.75 million to 111.64 million, reflecting the company's commitment to innovation[67]. - R&D investment in 2019 amounted to ¥111,640,772.97, representing 5.45% of total revenue, with a 19.75% increase in R&D personnel to 394[71]. - The company has ongoing projects aimed at optimizing production processes, with expected cost reductions of 5% to 10% for various steroid hormone intermediates[68]. Financial Management and Investments - Financial expenses decreased by 13.99% year-on-year, improving the efficiency of capital utilization[30]. - The company has seen a 76.88% decrease in cash funds year-on-year, primarily due to loan repayments and investments in various projects[39]. - Long-term equity investments decreased by 42.2% year-on-year, attributed to the subsidiary Victory Enzymes GmbH being in the product registration phase[39]. - The company’s investment activities saw a net cash outflow increase of 214.62%, primarily due to investments in new projects and acquisitions[52]. - The company’s cash and cash equivalents decreased by 203.39% year-on-year, attributed to reduced financing inflows and increased project investments[52]. - The company has a total of 10 million CNY in loans secured by land use rights and buildings, with a loan term from January 28, 2019, to January 27, 2021[168]. - The company has provided guarantees for loans totaling 70 million CNY from Industrial and Commercial Bank of China and 30 million CNY from China Bank, among others[166]. Environmental Compliance - The company is classified as a key pollutant discharge unit, with specific emissions monitored and reported[184]. - The company has successfully maintained compliance with environmental standards, with no instances of exceeding discharge limits reported[184]. - The company has established a wastewater treatment plant with a daily processing capacity of 4,000 tons, ensuring all pollutants are discharged within standards[191]. - The company has equipped emergency response resources including micro fire stations, fire pipelines, protective eyewear, gloves, gas masks, fire sand, and extinguishers[190]. - The company has conducted environmental impact assessments for all new projects and obtained relevant environmental approvals[198]. Shareholder Relations - The company has implemented a cash dividend policy, distributing RMB 0.60 per share to shareholders, totaling RMB 24,405,322.00 for the 2018 fiscal year[121]. - The cash dividend represents 20.69% of the net profit attributable to shareholders for 2019[125]. - The company has maintained a consistent cash dividend policy over the past three years[125]. - The company’s cash dividend policy aligns with the guidelines from the China Securities Regulatory Commission[123]. - The company has ensured that minority shareholders have had the opportunity to express their opinions and that their rights are protected[122]. Strategic Outlook - The company plans to leverage the market opportunities for alternative feed additives, aiming to become a leading enterprise in functional feed additives in China[38]. - The company is committed to improving its operational efficiency and financial management through enhanced collaboration and resource integration[117]. - The company is exploring potential mergers and acquisitions to strengthen its market position[188]. - The company aims to enhance its international presence and expand market share in the biological enzyme preparation sector[37].