CAHIC(SH:600195)2024-04-09 16:00Financial Performance - The company's operating revenue for the reporting period was 5.406 billion RMB, with a total profit of 406 million RMB and a net profit of 347 million RMB, of which the net profit attributable to the parent company was 403 million RMB, resulting in a basic earnings per share of 0.395 RMB[2]. - The net cash flow from operating activities was approximately 372.46 million RMB, while the net cash flow from investing activities was -522.26 million RMB, indicating significant investment outflows[3]. - The cash and cash equivalents at the end of the reporting period amounted to approximately 1.493 billion RMB, representing 16.69% of total assets, an increase of 70.59% compared to the previous period[14]. - The company reported a significant increase in long-term borrowings, which rose to approximately 899.03 million RMB, a staggering increase of 2,527.21% compared to the previous period[15]. - Revenue from animal disease prevention products (biological products) was CNY 100,930.94 million, a decrease of 16.77% year-over-year[21]. - Revenue from animal disease treatment products (chemical drugs) was CNY 126,353.37 million, a decrease of 12.09% year-over-year[22]. - Gross margin for animal disease prevention products was 46.12%, down by 2.97% compared to the previous year[21]. - The company's operating revenue for 2023 was CNY 5,406,312,590.46, a decrease of 8.24% compared to CNY 5,891,524,963.89 in 2022[143]. - Net profit attributable to shareholders decreased by 26.73% to CNY 403,051,611.99 from CNY 550,068,281.04 in the previous year[143]. - The net cash flow from operating activities decreased by 30.26% to CNY 278,858,364.79 compared to CNY 399,858,144.16 in 2022[143]. - The total assets increased by 12.71% to CNY 8,946,377,928.42 from CNY 7,937,406,197.86 in 2022[143]. - The net assets attributable to shareholders increased by 4.25% to CNY 5,520,675,866.70 from CNY 5,295,860,606.55 in the previous year[143]. - Basic earnings per share decreased by 26.92% due to the decline in net profit attributable to shareholders[163]. - The company plans to distribute a cash dividend of CNY 1.19 per 10 shares, totaling CNY 121,516,642.94[150]. - The company distributed a cash dividend of 0.18 CNY per share, totaling approximately 183.81 million CNY, which represents about 33.42% of the net profit attributable to shareholders for 2022[103]. - The company's total cash dividend amount for the year is approximately 121.52 million CNY, which accounts for 30.15% of the consolidated net profit attributable to ordinary shareholders[111]. Research and Development - Research and development expenses increased by 88.23% to approximately 125.82 million RMB, reflecting the company's commitment to innovation[14]. - The company's R&D investment accounted for 3.79% of operating revenue during the reporting period, with a capitalized R&D ratio of 40.07%[52]. - The company has established a new collaborative research and development mechanism aimed at enhancing technological innovation capabilities and fostering talent[1]. - The company has initiated new projects, including research on a new type of coccidiosis drug and a vaccine for avian influenza[54]. - The company has successfully launched a new inactivated vaccine for bovine nodular dermatitis, which received a temporary approval number and was launched in September[1]. - The company has introduced several new veterinary products in 2023, including vaccines and antibody test kits[24]. - The company emphasizes compliance management and has established a compliance committee within the board of directors[123]. - The company has established an innovative R&D mechanism to enhance the implementation of research outcomes, contributing to its competitive edge[198]. Market Strategy and Operations - The company is focused on expanding its market presence and enhancing its competitive edge in the agricultural sector, particularly in livestock and veterinary services[18]. - The company has implemented strategies to improve the stability and safety of livestock product supply, emphasizing the importance of disease prevention and control measures[18]. - The company is actively pursuing new product development in the field of animal disease prevention and treatment, including vaccines and diagnostic agents[20]. - The company plans to enhance its sales strategies and provide personalized technical services to maintain market share amid intensified competition in the feed industry[38]. - The company aims to optimize its industrial layout and improve its overall strength in response to new trends and competition in the veterinary medicine industry[38]. - The company is focusing on expanding its market share in key provinces through tailored sales strategies and deepening customer relationships[1]. - The company has established a comprehensive technical service system to support large clients and improve sales performance[1]. - The company conducted over 70 technical seminars and exchanges throughout the year, enhancing collaboration with major clients[1]. - The overall sales volume and sales price of the company's products increased in key provinces despite a challenging market environment[1]. - The company achieved a 15% year-on-year increase in multi-dimensional sales volume, overcoming adverse market conditions[1]. - The company is actively participating in international exhibitions to expand its customer base in Africa and Europe[194]. Governance and Compliance - The company held 22 board meetings during the year, with 2 in-person meetings and 20 conducted via communication methods[50]. - The company has established various committees, including the Audit Committee and Strategic Committee, with specific members assigned[78]. - The company has implemented measures to ensure the independence of its operations and governance structure[67]. - There were no incidents of insider trading by directors, supervisors, or senior management prior to sensitive information disclosures[70]. - The company has revised its board meeting rules and submitted proposals for further review[80][81]. - The company has maintained compliance with the Company Law and relevant regulations from the China Securities Regulatory Commission[69]. - The company has established a compliance committee to enhance its compliance management and ensure sustainable development[113]. - The company has revised several internal regulations, including the remuneration and assessment committee rules, to improve governance[113]. - The company's core governance structure is well-regulated, ensuring effective management and operational efficiency[198]. Financial Assistance and Investments - The company provided financial assistance of up to 800 million RMB to Zhongmu Nanjing Animal Pharmaceutical Co., up to 500 million RMB to Inner Mongolia Zhongmu Biological Pharmaceutical Co., up to 400 million RMB to Zhongmu Hualuo Animal Technology (Shandong) Co., and up to 3 billion RMB to Zhongmu Agricultural Chain Development Co. in 2023[47]. - The total bank credit limit applied for by the company and its subsidiaries in 2023 is 5.281 billion RMB, with 2.5 billion RMB for the headquarters and 2.781 billion RMB for subsidiaries[47]. - The company plans to apply for a financing loan of 364 million CNY to support the project construction needs of its subsidiary, with the company providing a guarantee of approximately 189.28 million CNY[113]. - The company agreed to acquire 65% equity of Chengdu Zhongmu Biological Pharmaceutical Co., Ltd. from 14 natural persons using its own funds[113]. - The company has approved a financing loan application of 448 million yuan for a project by Zhongmu Muyuan (Henan) Biopharmaceutical Co., Ltd.[95]. - The company will continue to purchase raw materials from China Animal Husbandry Industry Group Co., Ltd. with an estimated amount of 440 million yuan for 2023[95]. - The company has agreed to sell corn to a controlling enterprise of China Animal Husbandry Industry Group Co., Ltd. with an estimated amount of 63 million yuan for 2023[95]. - The company plans to reduce its holdings in Xiamen Jindawei Group Co., Ltd. by up to 12 million shares, representing 1.97% of the total share capital[95]. Employee and Labor Management - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 857.67 million yuan[93]. - The company has not paid salaries to certain current directors and supervisors during the reporting period[93]. - The company is committed to enhancing employee training across various themes, including leadership and performance management[115]. - The company is actively promoting a culture of continuous learning and improvement among its employees[115]. - The company has seen a 4.79% increase in labor costs in the agricultural sector, totaling CNY 181,617,398.83[182]. Environmental and Social Responsibility - The company invested approximately 40.15 million RMB in environmental protection during the reporting period[117]. - The company emphasizes a safe, green, and effective full-product service system as part of its core competitive advantages[198].