YILI(SH:600887)2022-04-27 16:00Financial Performance - The company achieved a net profit of ¥8,404,397,634.37 for the year 2021, with a total distributable profit of ¥16,806,145,133.99 at the end of the reporting period[3]. - The company's operating revenue for 2021 was ¥110.14 billion, an increase of 14.11% compared to ¥96.52 billion in 2020[12]. - Net profit attributable to shareholders for 2021 reached ¥8.70 billion, reflecting a growth of 22.98% from ¥7.08 billion in 2020[12]. - The net cash flow from operating activities significantly increased by 57.61% to ¥15.53 billion, compared to ¥9.85 billion in 2020[12]. - The total assets at the end of 2021 were ¥101.96 billion, up 43.30% from ¥71.15 billion at the end of 2020[12]. - The weighted average return on equity for 2021 was 25.59%, a slight increase of 0.41 percentage points from 25.18% in 2020[12]. - The basic earnings per share for 2021 was ¥1.43, representing a 22.22% increase from ¥1.17 in 2020[12]. - The company achieved total revenue of CNY 110.595 billion, a year-on-year increase of 14.15%, and a net profit of CNY 8.732 billion, up 23.00% compared to the previous year[28]. - The company reported a net profit of CNY 9,800 thousand from Yili Financial Co., Ltd.[69]. - The company reported a net profit of approximately 8.70 billion RMB for 2021, which is a substantial increase compared to the previous year's profit[186]. Dividend Policy - A cash dividend of ¥9.60 per 10 shares (including tax) is proposed, amounting to a total of ¥6,144,125,681.28, which represents 70.58% of the net profit attributable to shareholders for 2021[3]. - The company has maintained a consistent dividend policy, reflecting its commitment to returning value to shareholders[3]. - The company has a clear cash dividend policy that aligns with its articles of association and shareholder resolutions, ensuring the protection of minority shareholders' rights[106]. - The company maintained a positive profit distribution plan, ensuring that profits are allocated in accordance with established guidelines and shareholder expectations[105]. Market Expansion and Product Development - The company plans to continue its market expansion and product development strategies in the upcoming year[4]. - The company is focused on expanding its market presence through strategic acquisitions and partnerships[1]. - The company plans to invest 14.802 billion CNY in leading industry projects and supporting projects in 2022[76]. - The company aims to maintain a strong financial position while pursuing growth opportunities in the market[145]. - The company is focused on optimizing its capital structure and improving its financial metrics in the coming years[145]. Research and Development - The company increased its R&D expenses by 23.39% to ¥601 million, reflecting a commitment to product innovation and development[38]. - The company has established a comprehensive innovation mechanism across raw materials, formulas, processes, efficacy, and packaging, focusing on consumer health nutrition needs[33]. - The company has 21,072 production personnel, 18,352 sales personnel, and 12,505 technical personnel among its employees[100]. - The company has a total of 57 doctoral graduates and 1,467 master's graduates in its workforce[100]. - Research and development expenses for 2021 were RMB 601.02 million, up from RMB 487.10 million, indicating a growth of 23.3%[176]. Environmental Responsibility - The company has committed to carbon neutrality and has conducted carbon footprint calculations for all its factories, contributing to the UN's first "Corporate Carbon Neutral Pathway" white paper[127]. - The company invested a total of 120 million yuan in environmental protection measures in 2021, focusing on upgrading online monitoring equipment and pollution treatment systems[119]. - The company has established real-time monitoring systems for emissions, ensuring compliance with local ecological environment department requirements[119]. - The company has successfully transformed the operation method of 22 wastewater treatment plants to reduce sludge production by 17,700 tons[124]. - The company has implemented pollution prevention facilities in accordance with the "three simultaneous" requirements for design, construction, and operation[119]. Governance and Compliance - The company has established a governance structure with a board of directors consisting of 11 members, including 4 independent directors[79]. - The company has implemented a comprehensive internal control management system, enhancing decision-making efficiency and ensuring compliance with legal regulations[109]. - The company has not reported any significant internal control deficiencies during the reporting period, indicating robust management practices[110]. - The company has established various governance policies, including the Independent Director System and the Related Party Transaction Management System, to strengthen institutional frameworks and protect investor rights[113]. - The company has engaged in no significant related party transactions that require disclosure, maintaining transparency in its operations[136]. Strategic Acquisitions - The company expanded its market presence through the acquisition of China Zhongdi Dairy Holdings Co., Ltd. and other strategic investments[56]. - The company has acquired China Zhongdi Dairy Holdings Limited, which has a net asset of CNY 266,577.86 thousand[70]. - The company acquired two new subsidiaries, China Zhongdi Dairy Holdings Co., Ltd. and 49 (Shanghai) Trading Co., Ltd., and has successfully integrated their operations, ensuring smooth daily management[111]. Financial Stability - The company’s total assets increased, with cash and cash equivalents representing 31.13% of total assets at the end of the reporting period[58]. - The total liabilities amounted to CNY 53.17 billion, up from CNY 40.62 billion, which is an increase of approximately 31.0%[173]. - The company's equity attributable to shareholders reached CNY 47.71 billion, compared to CNY 30.38 billion in the previous year, representing a growth of about 56.9%[173]. - The company reported a significant increase in deferred income due to government funding for research projects[61]. - The company has no overdue bonds, indicating a stable debt repayment situation[159]. Social Responsibility - The company has actively participated in social responsibility initiatives, contributing to public health and disaster relief efforts across multiple provinces[132]. - The company has provided financing support of approximately 7.596 billion yuan to cooperative pastures to enhance the dairy industry's development[130]. - The company has invested 7.1834 million yuan in cash and student milk donations, benefiting nearly 60,000 children through its "Yili Nutrition 2030" initiative[131]. Risk Management - The company has disclosed potential risks in the report, urging investors to maintain awareness of the differences between plans, forecasts, and commitments[4]. - The company faces uncertainties related to industry risks, including supply and demand for fresh milk and international market expansion[77]. - The company has allocated approximately 151.88 million RMB to general risk reserves, indicating a proactive approach to risk management[185].