LIHUA(SZ:300761)2022-04-22 16:00Financial Performance - The company reported a net profit attributable to shareholders of -395.585 million yuan for the year 2021[3]. - The company's operating revenue for 2021 was ¥11,131,728,138.55, representing a 29.12% increase compared to ¥8,620,966,215.37 in 2020[21]. - The net profit attributable to shareholders for 2021 was -¥395,585,020.29, a decrease of 255.70% from ¥254,075,663.67 in 2020[21]. - The net cash flow from operating activities increased by 232.42% to ¥681,492,571.61 in 2021, up from ¥205,009,731.18 in 2020[21]. - The total assets at the end of 2021 were ¥10,964,216,991.55, an 18.53% increase from ¥9,250,517,071.83 at the end of 2020[21]. - The basic earnings per share for 2021 was -¥0.9795, compared to ¥0.6291 in 2020, reflecting a significant decline[21]. - The company's net assets attributable to shareholders at the end of 2021 were ¥6,259,043,663.82, a decrease of 6.30% from ¥6,679,601,208.95 at the end of 2020[21]. - The weighted average return on equity for 2021 was -6.14%, down from 3.80% in 2020, indicating a decline in profitability[21]. - The company reported a net profit loss of ¥230,655,008.18 due to declining pig prices, rising feed costs, and significant year-end impairment provisions[96]. Sales and Market Performance - The poultry segment achieved a sales volume of 370 million live chickens, representing a year-on-year growth of 14.57%[3]. - The average selling price of yellow feathered chickens increased by 11.70% year-on-year during the reporting period[3]. - The company achieved a market share of approximately 9.15% in the yellow feather chicken sector, with output volumes of 3.70 million chickens in 2021, up from 3.23 million in 2020[34]. - The company sold 370 million broiler chickens, marking a 14.57% increase in sales volume, with broiler chicken revenue reaching 9.582 billion yuan, up 30.71%[52]. - The company's chicken revenue accounted for 89.92% of total revenue, amounting to ¥10.01 billion, which is a 30.18% increase from the previous year[58]. Operational Challenges - The company faced significant losses in its pig farming segment due to declining domestic pig prices and high feed raw material costs[3]. - The company highlighted risks related to product price fluctuations, raw material supply, and animal diseases that could impact operational performance[4][6]. - The company faces challenges from high feed prices and overall market conditions, leading to squeezed profit margins and some farmers exiting the market[28]. - The cyclical nature of the livestock industry is evident, with pig prices experiencing significant fluctuations, leading to deep losses for most operators in 2021[32]. Business Model and Strategy - The company operates under a "company + cooperative + farmer" model for chicken farming, providing support and resources to farmers[9]. - The company has implemented a subsidy program for cooperative farmers to encourage expansion and improve farming standards[9]. - The company plans to enhance its core competitiveness through refined management and economies of scale to improve production efficiency and control costs[10]. - The company is expanding its breeding scale and increasing the number of cooperative farmers, which may impact current operating performance[10]. - The company has established a risk fund to cover losses from natural disasters or major epidemics, with ownership belonging to the cooperative[39]. Research and Development - There is a focus on increasing investment in technology research and development to improve feeding techniques, disease prevention, feed formulation, environmental management, and food safety[10]. - The company filed for 34 intellectual property rights, including 8 invention patents and 14 utility model patents during the reporting period[48]. - The company invested nearly ¥20 million to establish an advanced poultry research facility, laying a solid foundation for future technological advancements[54]. - The company is investing 200 million RMB in R&D for new technologies aimed at improving livestock health and productivity[173]. Governance and Management - The company has a complete and effective governance system that complies with relevant laws and regulations, with no significant discrepancies identified[114]. - The company reported a governance structure that includes a shareholders' meeting, board of directors, supervisory board, and senior management, ensuring effective operation and compliance with laws[107]. - The company has established an internal audit system to oversee economic operations, efficiency, and compliance with internal controls[114]. - The company has a dedicated internal audit department that reports to the audit committee of the board, ensuring transparency and accountability[114]. Environmental and Social Responsibility - Jiangsu Lihua has adopted a green development strategy, focusing on clean production and circular economy initiatives[164]. - The company has successfully implemented pollution prevention facilities, with all environmental protection measures executed properly and no significant environmental violations reported during the period[164]. - Jiangsu Lihua's subsidiary, Xingtai Lihua, was recognized as a "Sichuan Province Advanced Collective for Poverty Alleviation" in April 2021[167]. - The company has developed an emergency response plan for environmental incidents, which has been submitted for record to environmental protection authorities[164]. Future Outlook - The company expects a revenue growth of 25% for the upcoming fiscal year, projecting a total revenue of 1.875 billion RMB[171]. - The company plans to achieve an annual output of approximately 3 million market pigs by 2025, enhancing its regional influence in the pig supply market[99]. - The company aims to establish fresh poultry processing capacity to account for about 50% of total output within the next five years, focusing on downstream poultry slaughtering business development[98]. - The management team emphasized a focus on sustainability initiatives, aiming for a 30% reduction in carbon emissions by 2025[172].