LIHUA(SZ:300761)2021-03-05 16:00Financial Performance - The company achieved a net profit attributable to shareholders of 254.08 million yuan in 2020, a decrease of 87.07% year-on-year [2]. - The company's operating revenue for 2020 was ¥8,620,966,215.37, a decrease of 2.81% compared to ¥8,870,466,583.29 in 2019 [20]. - The net profit attributable to shareholders for 2020 was ¥254,075,663.67, representing an 87.07% decline from ¥1,964,251,401.90 in 2019 [20]. - The net cash flow from operating activities was ¥205,009,731.18, down 91.52% from ¥2,417,361,404.49 in the previous year [20]. - Basic earnings per share for 2020 were ¥0.6291, a decrease of 87.29% compared to ¥4.9477 in 2019 [20]. - The company reported a significant decline in both net profit and cash flow, indicating challenges in operational performance during the year [20]. - The total operating revenue for the company in 2020 was approximately ¥8.62 billion, a decrease of 2.81% compared to ¥8.87 billion in 2019 [56]. - Revenue from chicken sales was approximately ¥7.69 billion, accounting for 89.19% of total revenue, down 8.88% from ¥8.44 billion in 2019 [56]. - The company reported a significant increase in pig revenue, which reached approximately ¥858.73 million, a 156.84% increase from ¥334.34 million in 2019 [56]. Market Conditions - The average selling price of broiler chickens decreased by 20.74% compared to the previous year, consistent with industry trends [2]. - The yellow feather chicken market experienced a decline in prices due to oversupply and reduced consumer demand during the pandemic [36]. - The company faces risks from animal diseases and natural disasters, which could lead to increased production costs and decreased efficiency [4]. - The primary products, broiler chickens and pigs, account for over 99% of the company's revenue, making it vulnerable to price fluctuations driven by supply and demand dynamics [5]. - The price of livestock feed increased by 7.6% year-on-year, putting pressure on the entire industry due to rising costs [38]. Strategic Initiatives - The company plans to enhance its core competitiveness through refined management and scale effects, aiming to improve production efficiency and control costs [12]. - The company intends to increase investment in technology research and development to enhance its capabilities in breeding, disease prevention, feed formulation, and food safety [12]. - The company is expanding its pig farming operations to mitigate cyclical risks in the industry and diversify market risks [12]. - The company has implemented a cooperative farming model, which involves risks related to trust and compliance from partner farmers [7]. - The company is actively transforming its yellow feather chicken sales segment by increasing its own slaughtering capacity and enhancing brand recognition [31]. - The company is focused on maintaining market share and improving operational efficiency despite challenging market conditions [35]. Research and Development - The company is actively involved in research and development projects, including the breeding of high-quality meat chicken varieties and the application of related technologies [40]. - The company developed a high feed efficiency breeding program using metagenomics, which is expected to enhance feed conversion rates [71]. - A comprehensive health breeding technology system was established, resulting in a 30% reduction in antibiotic usage and a 2.12% higher market rate for one breed compared to peers [72]. - The company implemented an automated environmental control system in breeding houses, improving operational efficiency and management [53]. - The company filed 34 intellectual property applications during the reporting period, including 8 invention patents and 16 utility model patents [53]. Operational Efficiency - The company has implemented measures to enhance management efficiency and control costs, leading to a turnaround in the second half of the year [35]. - The company has established a complete industrial chain for yellow feathered chicken, including breeding, feed processing, and slaughtering [25]. - The company employs a "company + base + farmer" cooperative breeding model, managing the entire supply chain from piglets to feed and vaccines [33]. - The company has established multiple subsidiaries in key production areas, ensuring supply chain efficiency and product sales [47]. - The company has implemented a financial shared system that enhances internal control management and contract signing efficiency [49]. Investment and Expansion - The company plans to achieve an annual output of approximately 3 million live pigs by 2025 [52]. - The company aims to establish fresh poultry processing capacity accounting for about 50% of total output within the next five years, focusing on downstream poultry slaughtering operations [103]. - The company is exploring potential mergers and acquisitions to enhance its supply chain efficiency, with a target of completing at least one acquisition in the next fiscal year [190]. - The company has committed to invest a total of 115,000 million CNY in various projects, with 79,617.13 million CNY already utilized, representing approximately 69.2% of the total commitment [84]. Corporate Governance and Shareholder Relations - The company has a profit distribution policy that emphasizes reasonable returns to investors while ensuring sustainable development [115]. - The cash dividend ratio is set to be no less than 10% of the distributable profit if there are no major investment plans or cash expenditures [115]. - The independent directors have provided clear consent regarding the profit distribution plan [116]. - The company’s profit distribution plan was approved at the annual shareholders' meeting, ensuring transparency and communication with minority shareholders [116]. - The company has committed to fulfilling all promises made by shareholders and related parties during the reporting period [120]. Social Responsibility - The company has helped 133 registered impoverished individuals to escape poverty through its poverty alleviation initiatives, with a total investment of 8.63 million CNY in poverty alleviation projects during the reporting period [161]. - The company plans to continue its "company + cooperative + farmer" model for poverty alleviation, focusing on developing standardized breeding in impoverished areas [164].