MENGNIU DAIRY(02319)2025-03-26 14:05Financial Performance - In 2024, the company achieved revenue of RMB 88.6748 billion, a decrease of 10.1% year-on-year, due to an imbalance in supply and demand in the dairy industry[2]. - The gross profit margin increased by 2.4 percentage points to 39.6%, with operating profit reaching RMB 7.2567 billion, an operating profit margin increase of 1.9 percentage points to 8.2%[2]. - The company reported a profit attributable to equity shareholders of RMB 104.5 million, a significant decline from RMB 4.8092 billion in the previous year[5]. - The company reported a total comprehensive loss of RMB 791.8 million for the year, compared to a comprehensive income of RMB 4.7551 billion in the previous year[6]. - The group reported a short-term lease expense of RMB 138,871,000 for the year ending December 31, 2024, compared to RMB 147,265,000 in 2023, reflecting a decrease of approximately 9.4%[37]. - The pre-tax profit for 2024 was significantly impacted by inventory write-downs amounting to RMB 911,092 thousand, compared to RMB 323,675 thousand in 2023[33]. - The company reported a net profit of RMB 4,886,975,000 for the fiscal year ending December 31, 2023, with a pre-tax profit of RMB 6,312,187,000[25]. - The company's EBITDA decreased by 53.1% to RMB 4.4617 billion, with an EBITDA margin of 5.0%, down 4.6 percentage points year-on-year[78]. Assets and Liabilities - Total non-current assets decreased to RMB 70.525 billion from RMB 81.092 billion year-on-year, primarily due to impairment losses on goodwill and intangible assets[7]. - The company reported a current liability exceeding current assets by RMB 1,238,775 thousand as of December 31, 2024[11]. - Non-current liabilities decreased from RMB 31,974,182 thousand in 2023 to RMB 21,260,741 thousand in 2024, representing a reduction of approximately 33.5%[8]. - Net assets decreased from RMB 50,651,711 thousand in 2023 to RMB 48,025,491 thousand in 2024, a decline of about 5.2%[8]. - Total liabilities as of December 31, 2023, were RMB 64,568,240,000, with segment liabilities in liquid milk at RMB 28,708,293,000 and ice cream at RMB 4,454,086,000[25]. Cash Flow and Dividends - The net cash inflow from operating activities was RMB 8.3323 billion, demonstrating stable performance year-on-year[2]. - The board proposed a dividend payout ratio of 45% for 2024, with a final dividend of RMB 0.509 per share, totaling a cash dividend distribution of RMB 1.9942 billion[3]. - The proposed final dividend for 2024 is RMB 0.509 per ordinary share, an increase from RMB 0.489 per share in 2023, marking a rise of about 4.1%[42]. Strategic Initiatives - The company is actively pursuing its "GREEN" strategy and "dual carbon" goals, focusing on sustainable practices and environmental initiatives[3]. - The company aims to enhance shareholder returns while navigating external challenges through innovation and operational efficiency[2]. - The company plans to continue expanding its product offerings and market presence, focusing on new product development and potential acquisitions to drive future growth[22]. - The company is focusing on digital transformation and AI integration to improve operational efficiency and address supply-demand imbalances[71]. Product Development and Market Position - The liquid milk segment generated revenue of RMB 73,065,615,000, while the ice cream segment contributed RMB 5,175,411,000, and the milk powder segment reported RMB 3,320,456,000[23]. - The company launched a new dual-protein milk product under "Daily Fresh," leading to significant sales growth, while the sub-brand "Little Fresh" targets young consumers with a "light fresh milk" category[59]. - The company’s adult powder brand "Yourui" emphasizes health for the elderly, releasing several industry-leading research results and enhancing brand awareness through targeted marketing strategies[61]. - The company has enriched its low-temperature cheese product matrix and successfully launched several new products, including zero-sugar cheese snacks and seasonal limited editions[66]. - The company has established strategic partnerships with multiple chain brands in the baking, coffee, tea, and dining sectors to provide integrated solutions[56]. Sustainability and Corporate Responsibility - The company is committed to sustainable development, implementing a "GREEN" strategy and a "dual carbon" strategy to reduce carbon emissions across the supply chain[98]. - The company has established a sustainable development reporting system, releasing multiple reports including the first TNFD-compliant report in the Chinese dairy industry[98]. - The company has signed a strategic cooperation memorandum with AWS for sustainable water management, aiming to enhance water resource management practices[99]. - The company has established the Inner Mongolia Mengniu Public Welfare Foundation, focusing on emergency disaster relief, nutrition empowerment, rural revitalization, and ecological protection[100]. Human Resources and Governance - The company has employed over 41,000 employees across mainland China, Hong Kong, Oceania, and Southeast Asia as of December 31, 2024[101]. - The company has implemented a comprehensive compensation system aligned with business performance, emphasizing competitive salaries and diverse incentives[102]. - The company plans to enhance its talent development system and promote career pathways for future-oriented talent teams[102]. - The company’s audit committee has reviewed the financial statements for the year ending December 31, 2024, ensuring compliance with accounting principles[109].