Fortune(SH:600965)2024-06-18 11:31Financial Performance - The company's operating revenue for 2023 was approximately ¥1,046.28 million, a decrease of 2.57% compared to ¥1,073.89 million in 2022[25]. - Net profit attributable to shareholders for 2023 was ¥98.59 million, down 10.21% from ¥109.80 million in 2022[25]. - The adjusted net profit attributable to shareholders, excluding non-recurring gains and losses, was ¥98.55 million, reflecting a decrease of 10.06% from ¥109.58 million in 2022[25]. - The net cash flow from operating activities for 2023 was ¥34.99 million, a significant decline of 66.34% compared to ¥103.97 million in 2022[25]. - The total assets at the end of 2023 amounted to ¥2,562.67 million, representing a 4.14% increase from ¥2,460.88 million at the end of 2022[25]. - The net assets attributable to shareholders increased by 2.61% to ¥2,141.25 million from ¥2,086.87 million in 2022[25]. - Basic earnings per share for 2023 were ¥0.1204, down 10.22% from ¥0.1341 in 2022[26]. - The diluted earnings per share also stood at ¥0.1204, reflecting the same percentage decrease of 10.22% compared to the previous year[26]. - The weighted average return on equity for 2023 was 4.743%, a decrease of 0.332 percentage points from 5.075% in 2022[26]. - The company achieved a total revenue of CNY 1.046 billion in 2023, a decrease of 2.57% year-on-year[61]. - The net profit attributable to shareholders was CNY 98.59 million, down 10.21% compared to the previous year[61]. Dividends and Share Capital - The company plans to distribute a cash dividend of 0.49 RMB per 10 shares, totaling 40,116,346.80 RMB for the year 2023[6]. - The total share capital at the end of 2023 is 818,700,955 shares[6]. - The company has not proposed any capital reserve transfer to increase share capital for this year[6]. - The company’s cash dividend policy includes a distribution of 0.1 RMB per share, totaling 81,870,095.50 RMB based on the total share capital of 818,700,955 shares as of the end of 2020[157]. - The company proposed a cash dividend of 0.54 RMB per 10 shares for the fiscal year 2022, totaling 44,209,851.57 RMB, which represents 40.69% of the net profit attributable to ordinary shareholders[158][162]. - The total cash dividend distributed in 2021 was 98,244,114.60 RMB, with a dividend of 1.2 RMB per 10 shares, based on a total share capital of 818,700,955 shares[157]. - The company has maintained a consistent cash dividend policy, with a cumulative cash dividend of 778 million RMB since its IPO, exceeding the total direct financing amount of 252 million RMB by more than three times[170]. - The average dividend payout ratio from 2020 to 2022 was 58.11%, with a total cash distribution accounting for 100% of profit allocation[170]. Risk Management and Governance - The company emphasizes the importance of risk awareness regarding future plans and development strategies[7]. - The company has detailed potential risks in the third section of the report[10]. - The company has established a comprehensive internal control system to mitigate risks related to inaccurate information and operational failures[113]. - The company has a commitment to transparency and timely information disclosure, ensuring all shareholders have equal access to information[121]. - The company actively engages with stakeholders, emphasizing social responsibility and environmental protection initiatives[120]. - The company has implemented measures to protect minority shareholders' rights, including separate voting for significant matters affecting their interests[122]. - The company has established an insider information management system to enhance confidentiality and protect investors' rights[123]. - The financial accounting system is independent from the controlling shareholder, with no non-operational use of company funds by the controlling shareholder[125]. - The company has committed to reducing related party transactions to protect the interests of shareholders[127]. - The company is committed to ensuring independence in operations and transactions with related parties post-restructuring[184]. Operational Developments - The company has secured over 44,000 acres of agricultural land for cultivation, enhancing its upstream supply chain for the green food industry[35]. - Two cattle farms were completed with a total construction area of 431,700 square meters, increasing the capacity for live cattle to over 30,000 heads[36]. - The company plans to continue expanding its sales market and channels in 2024, leveraging its brand and complete industrial chain advantages[34]. - The company is focusing on the development of prepared dishes to meet the growing demand for convenient and healthy food options[34]. - The company is committed to optimizing its management structure and attracting professional talent to enhance governance levels[34]. - The company is focusing on the integration of agriculture, livestock, food processing, and catering services to enhance food safety and reduce costs[50]. - The company is developing a quality breeding center for premium cattle, which is currently under construction[51]. - The company’s prepared dishes business is supported by government policies aimed at standardizing and promoting the industry[44]. - The company’s catering services include hot pot and specialty barbecue, which are popular among consumers[45]. - The company plans to invest CNY 650 million to expand its beef breeding scale, with CNY 300 million allocated for the construction of two cattle farms and CNY 300 million for purchasing approximately 20,000 live cattle[51]. Market and Competitive Landscape - The domestic beef price has significantly decreased, impacting the company's profitability in the beef breeding business[36]. - The overall beef production in China reached 7.53 million tons in 2023, with a year-on-year growth of 4.8%[39]. - In 2023, the national catering revenue reached CNY 52.89 billion, a year-on-year increase of 20.4%, surpassing the 2019 level by 13.20%[44]. - The company’s beef breeding business generated revenue of CNY 94.08 million in 2023, reflecting a year-on-year increase of 3.68%[52]. - The company has established stable business partnerships with high-quality clients such as Hema Fresh and Haidilao, enhancing its market competitiveness[54]. - The company plans to expand its market coverage and consumer channels to further enhance brand recognition and market share[54]. - The company aims to enhance brand recognition through the "Fresh to Home" prepared dishes brand and the "Fucheng Beef" restaurant brand[107]. - The company continues to expand its offline market coverage while developing online marketing channels to boost sales[107]. Employee and Management Structure - The company reported a total of 2,272 employees, with 1,608 in production, 117 in sales, and 41 in technical roles[153]. - The company has established a comprehensive training program for employees, covering various levels and roles[155]. - The company has a structured salary system that includes basic salary, position salary, and various allowances, adjusted according to operational performance and local living standards[154]. - The company has multiple executives with extensive experience in various sectors, enhancing its operational capabilities[134]. - The company is actively involved in various subsidiaries and has a diverse management team overseeing different business units[134]. - The company’s governance structure includes a compensation committee that aligns remuneration with performance metrics[135]. Legal and Regulatory Compliance - The company has not faced any delisting risks or bankruptcy restructuring issues during the reporting period[198]. - The company has maintained a good integrity status, with no significant debts or court judgments outstanding[200]. - The company has faced a major lawsuit involving illegal public deposit absorption, with a court ruling requiring compensation of 153 million RMB to investors[199]. - The company has fulfilled its commitments related to the restructuring process, ensuring no losses to subsidiaries due to property disputes[176]. - The company has guaranteed to cover any legal risks associated with unpaid social insurance and housing fund contributions prior to the restructuring[176]. - The company will strictly adhere to legal and regulatory requirements in its operations and governance following the restructuring[184]. Audit and Financial Reporting - The company has received a standard unqualified audit report from Yongtuo Accounting Firm[5]. - The company has ensured the authenticity, accuracy, and completeness of the annual report[11]. - The company plans to continue employing Yongtuo Accounting Firm for financial and internal control audits for the year 2023[147]. - The internal control audit report indicated that the company maintained effective financial reporting internal controls as of December 31, 2023[165]. - The company’s first quarter report for 2023 was deemed to fairly reflect its operational results and financial status[147]. - The company’s second quarter report for 2023 was also confirmed to accurately represent its business performance and financial condition[147]. - The company has reported a significant accounting error correction related to the acquisition of Hunan Shaoshan Tiande Fudi Cemetery Co., amounting to 58,837,845.00 RMB, which had no impact on the parent company's financial statements[195].