Financial Performance - For the year ended December 31, 2020, the turnover increased by 15.5% to RMB 9,278,864,000 compared to RMB 8,035,206,000 in 2019[15] - Profit attributable to owners of the Company rose by 51.8% to RMB 202,890,000 from RMB 133,683,000 in the previous year[15] - Total assets increased by 7.0% to RMB 4,329,284,000, while net assets grew by 12.9% to RMB 2,272,303,000[15] - Basic profit per share increased by 53.8% to RMB 0.20, up from RMB 0.13 in 2019[15] - Return on total assets improved to 7.02%, a 37.9% increase from 5.09% in 2019[15] - The gearing ratio decreased by 19.4% to 35.4% from 43.9% in the previous year, indicating improved financial stability[15] - Gross profit for 2020 reached RMB 1,025,518, reflecting a 4.5% increase from RMB 981,575 in 2019[40] - The gross profit margin decreased to 11.1% in 2020 from 12.2% in 2019[40] - The Group's operating income for 2020 was approximately RMB 9,278,864 thousand, representing a year-on-year increase of about 15.5%[53] - The gross profit amounted to approximately RMB 1,025,518 thousand, reflecting a growth of approximately 4.5% compared to the previous year[56] - The gross profit margin for the total feeds segment was 9.4%, down from 10.0% the previous year[75] - Gross profit increased by approximately 19.9% to RMB 413,383,000 in 2020 from RMB 344,836,000 in 2019[83] - Gross profit margin improved to 21.8% in 2020 from 16.9% in 2019[83] - The gross profit from Mainland China increased by 22.5% to RMB 353,001,000 in 2020 from RMB 288,198,000 in 2019[83] Market and Operational Challenges - The outbreak of COVID-19 severely impacted the domestic economic activities, particularly affecting the white feather meat chicken industry, leading to a 63% year-on-year drop in the price of day-old chicks[42] - The comprehensive price of feather chickens and chicken meat products fell by approximately 24% and 19% year-on-year, respectively[42] - The company actively supported farmers during the pandemic by ensuring feed supply and contract recovery of processed chickens[44] - The Group successfully compensated for declining sales in traditional channels by increasing sales through new channels such as e-commerce and community group buying[47] Strategic Initiatives and Product Development - The Company focuses on developing new high value-added products by utilizing the latest food technology to meet changing market demands[9] - The Group emphasizes quality control and has implemented a traceability system for its products, enhancing consumer trust[12] - The Group plans to invest approximately RMB 1 billion to build a new food processing plant with a monthly capacity of 4,000 tons in Bengbu City, Anhui Province, expected to be operational by the end of 2022[94] - The Group aims to enhance product competitiveness by concentrating resources on product research and development in the professional catering market[94] - The Group's strategic focus includes integrating the broiler industry chain and enhancing vertical integration with upstream breeding operations[52] Employee and Management Information - The Group had a total of 10,470 employees as of 31 December 2020, an increase from 9,900 employees in 2019[111] - The company has a diverse management team with extensive experience in the food industry and technology sectors[120] - The board includes members with significant experience in both traditional industries and information technology management[120] - Mr. Wei, Chun-hsien has been appointed as an executive director and chairman of the board since March 1, 2021[115] - Mr. Wei Anning has extensive experience in the integration of finance and the agricultural and livestock food industry, with a deep understanding of its development and corporate governance[133] Corporate Governance - The Company is committed to enhancing corporate governance standards and improving transparency to maintain trust with employees, partners, shareholders, and investors[155] - The Company has adopted a corporate governance code based on the latest revised code on corporate governance as set out in the Listing Rules[155] - Throughout the year ended December 31, 2020, the Company has complied with the Code Provisions with certain exceptions[155] - The Board comprised 8 Directors, all being industry veterans, responsible for formulating business development targets and long-term company strategies during the period from January 1, 2020, to March 1, 2020[164] - The Company has maintained a mechanism that allows the Company Secretary to promptly access information regarding the Group's developments without material delay[157] - The independent non-executive Directors have reviewed the Confirmation regarding the Deed of Non-Competition and are satisfied with the compliance during the review period[160] - The Company has fully complied with the relevant code provisions and Listing Rules following the appointment of Mr. Ting Yu-Shan[161] Financial Management - The Group's interest-bearing borrowings decreased by approximately RMB77,971 thousand to approximately RMB804,651 thousand as of 31 December 2020, compared to approximately RMB882,622 thousand in 2019, resulting in an interest-bearing borrowings to equity ratio of approximately 35.4%[98] - The Group's capital expenditure on the acquisition of properties, machinery, and equipment amounted to approximately RMB208,578 thousand in 2020, primarily funded by internal resources and bank borrowings[100] - The Group's interest expense in 2020 was approximately RMB31,336 thousand, a decrease of approximately 31.7% from RMB45,860 thousand in 2019, mainly due to decreasing borrowing rates[106] Sales and Marketing Strategies - The company launched family-sized products and utilized various channels such as live e-commerce and community group purchases to adapt to changing consumer habits[45] - The processed food segment's sales channels include group catering, bakery, casual catering, takeaways, and retail markets, covering regions such as Japan, Singapore, and various areas in China[87] - The development of community group buying platforms has successfully launched "Sisters' Kitchen" products on all top ten platforms in China[91]
大成食品(03999) - 2020 - 年度财报