Financial Performance - In 2021, China Shengmu Organic Milk recorded revenue of RMB 2,984.6 million, representing a year-on-year growth of 12.2%[6] - The net profit for the same period was RMB 509.6 million, reflecting a year-on-year increase of 10.5%[6] - In 2021, the company achieved a sales revenue of RMB 2,984.6 million, an increase of 12.2% year-on-year, driven by rising fresh milk prices and product structure optimization[13] - The company’s net profit for the year was RMB 509.6 million, a 10.5% increase year-on-year, attributed to revenue growth and effective cost control[13] - The gross profit for the year was RMB 1,064,390 thousand, up from RMB 1,025,118 thousand, reflecting a gross margin improvement[184] - The company reported a total comprehensive income of RMB 520,959 thousand for the year, compared to RMB 462,982 thousand in 2020, reflecting a growth of 12.5%[185] - The company’s total assets increased to RMB 3,679,833,000 as of December 31, 2021, compared to RMB 3,196,732,000 in 2020, reflecting a growth of about 15.0%[190] - The company’s cash and cash equivalents at the end of the year were RMB 531,835,000, up from RMB 327,651,000 in 2020, representing an increase of approximately 62.2%[192] Production and Sales - The average selling price of raw milk was RMB 5,104 per ton, up 13.1% compared to the previous year, with organic raw milk averaging RMB 5,324 per ton, a 4.0% increase[15] - Organic raw milk sales reached 394,730 tons, a 38.5% increase year-on-year, accounting for 67.5% of total raw milk sales, up 19.2%[14] - The company’s total fresh milk production was 1,647 tons per day, with a total of 122,518 dairy cows as of the end of 2021[12] - The company plans to increase milk production by approximately 500,000 tons in 2022 due to new dairy farm projects[11] - The company successfully converted 5 farms to organic in March 2021, increasing daily organic milk production by 234 tons[18] Cost Management and Financial Strategy - The financing environment has significantly improved, leading to a noticeable decrease in capital costs for the company[5] - The average price of fresh milk increased by 13.2% to RMB 4.29 per kilogram, while feed prices also rose significantly, with corn averaging RMB 2.93 per kilogram, up 26.5%[10] - The total sales cost increased by 17.4% to RMB 1,920.2 million in 2021, up from RMB 1,635.7 million in 2020[31] - Financing costs decreased to RMB 71.2 million in 2021 from RMB 116.8 million in 2020, a reduction of RMB 45.6 million attributed to optimized debt structure and lower financing rates[36] Sustainability and Development Initiatives - The company was recognized by the United Nations Global Compact as a best practice in sustainable production and consumption for its unique organic ecological desertification control system[8] - China Shengmu aims to align with the "14th Five-Year Plan" for dairy industry revitalization, focusing on large-scale farming and integrated crop-livestock systems[7] - The company is committed to ecological priority and green development, aiming to contribute to the comprehensive revitalization of China's dairy industry[7] - The company targets a 17% reduction in carbon emission intensity and a 10% absolute reduction in emissions by the end of 2022[60] - The group invested RMB 7.5 billion over the past decade in greening the desert, covering over 200 square kilometers, and established high-quality grasslands of 150 square kilometers[54] Corporate Governance and Management - The board of directors consists of nine members, including one executive director and five non-executive directors, with the chairman being Mr. Lu Minfang[141] - The company has adopted and complied with the Corporate Governance Code as per the Hong Kong Stock Exchange's listing rules[137] - The company has established various committees, including the audit committee and remuneration committee, to assist the board in fulfilling its responsibilities[139] - The company has a board diversity policy that considers factors such as gender, age, cultural background, and professional experience in the selection of board members[143] - The company encourages ongoing professional development for all directors to enhance their knowledge and skills[149] Related Party Transactions - The group engaged in related party transactions, including the purchase and sale of dairy cows with Inner Mongolia Shengmu Pangu Dairy Co., Ltd., totaling RMB 14.2 million and RMB 35.7 million respectively for the year ended December 31, 2021[99] - The group provided financial assistance to Shengmu Pangu with a maximum annual limit of RMB 60.0 million as of December 31, 2021[101] - The group sold fresh milk to China Mengniu Dairy Group with a maximum annual limit of RMB 3,700.0 million as of December 31, 2021, and RMB 4,200.0 million as of December 31, 2022[101] Employee and Workforce Development - The employee count increased to 2,682 by December 31, 2021, reflecting a focus on youth and professional development within the workforce[23] - Total employee costs for the year 2021 amounted to RMB 272.0 million, up from RMB 263.6 million in 2020, indicating a year-over-year increase of about 3.3%[117] - The group has established various fixed contribution retirement plans for eligible employees in compliance with applicable laws and regulations[118] Financial Position and Assets - Current assets totaled RMB 2,049.8 million as of December 31, 2021, down from RMB 2,196.4 million in 2020, with trade receivables increasing by 81.6% to RMB 248.1 million[41] - As of December 31, 2021, the group's net debt was RMB 1,147.3 million, an increase from RMB 1,038.6 million in 2020[43] - The group’s biological assets amounted to RMB 2,764,240,000 as of December 31, 2021, representing approximately 38.76% of the total assets[175] Audit and Compliance - The auditor, Ernst & Young, has audited the annual financial statements for the year ended December 31, 2021[122] - The company maintains an internal audit function, and as of December 31, 2021, no significant internal control deficiencies were identified[165] - The board's governance functions include reviewing compliance with legal and regulatory requirements and monitoring the training and development of directors and senior management[138]
中国圣牧(01432) - 2021 - 年度财报