Company Overview - Vedan International is the largest MSG producer in Southeast Asia and the largest supplier of lysine and cassava starch-based industrial products in Vietnam[8]. - The Group's production facilities are located in Vietnam and the PRC, ensuring a steady upstream supply of raw materials and advanced fermentation production technology[10]. - The company has undergone continuous production expansion due to strong growing demand since establishing its major production base in Vietnam in 1991[8]. - The company is committed to expanding its market presence in ASEAN countries, the PRC, Japan, Taiwan, and several European countries[7]. - Vedan International's products are primarily marketed under the VEDAN brand name, catering to food distributors and manufacturers across various industries[7]. Financial Performance - In 2021, Vedan International reported significant growth in revenue, driven by increased demand for its fermentation-based amino acids and food additive products[14]. - The company's revenue for the year ended December 31, 2021, was approximately US360,741,000 in 2020[27]. - Gross profit decreased to approximately US72,556,000 in the previous year, with a gross profit margin of 15.8%[27]. - Net profit for the year was approximately US16,677,000 in 2020, resulting in a net profit margin of 2.9%[27]. - Overall revenue fell by approximately 2.2% compared to last year due to pandemic-related restrictions in Vietnam[33]. Market Performance - Revenue from the PRC operations grew by approximately 34.9% compared to the previous year, driven by strong demand for trade products and coffee beans[30]. - The ASEAN market saw an 11.3% increase in revenue year-on-year, attributed to higher sales volumes of key products[30]. - Revenue in Vietnam decreased by 0.7% due to strict pandemic measures impacting production and sales activities[30]. - The United States market experienced a revenue drop of around 2.2% due to skyrocketing ocean freight rates and container shortages[30]. - Revenue from trade products in the PRC surged by approximately 63.0% year-on-year, attributed to enhanced product mix and sales network[33]. Strategic Initiatives - The Group's strategic acquisitions, including the factory in Xiamen and Shanghai Vedan Foods Company, have strengthened its market position in the PRC[8]. - The Group anticipates continuous supply shortages and high prices for raw materials, energy, and packaging materials in 2022[37]. - The Group aims to secure major sources of raw materials and enhance sales strategies to stabilize production costs amid rising inflation risks[37]. - The Group plans to strengthen supply chain management and seek strategic alliances to enhance core competitiveness and create greater operational value[55]. - The Group intends to adopt a "co-opetition" strategy to leverage its production base in Vietnam and develop markets under various free trade agreements, enhancing competitive advantages[102]. Leadership and Governance - The management team possesses extensive experience and knowledge, contributing to the Group's strong competitiveness in the industry[10]. - The Group's strategic management is focused on business development and operational efficiency, led by experienced executives[126]. - The Group emphasizes high-level corporate governance standards as a foundation for effective operation and sustainable development[150]. - The Group's corporate governance practices are aligned with the Corporate Governance Code set by the Hong Kong Stock Exchange[151]. - The Group has established a strong foundation in the MSG industry, with key executives having decades of relevant experience[135]. Risk Management - The Group's internal control and risk management systems are monitored by the Board to ensure sound governance practices[1]. - The Audit Committee assists the Board in overseeing the management of existing or potential risks within the Company[171]. - The Group has established an "Investment Review Board" to rigorously evaluate mid-to-long-term investments and strategic alliances[180]. - The Group's risk management includes financial cycle management, credit risk management, and regular assessments of capital position and market conditions[177]. - The Group has maintained the soundness of its information management system and safeguarded network information security[180]. Environmental and Social Responsibility - The Group actively fulfills its environmental and social responsibilities as part of its business operations[153]. - The Group has implemented environmental protection measures in accordance with local regulatory requirements to fulfill its environmental responsibilities[182]. - The Group conducts reviews and risk analyses on occupational safety and hygiene incidents to formulate improvement measures[183]. - The Group's legal affairs department collaborates with professional legal counsels to mitigate risks and ensure law compliance[180]. - The Group plans to focus on energy conservation and resource recycling to improve energy efficiency and support sustainable operations[104].
味丹国际(02317) - 2021 - 年度财报