ANJI FOOD(603696)2022-04-20 16:00Financial Performance - The company's operating revenue for 2021 was RMB 548,965,238.91, representing a 30.58% increase compared to RMB 420,400,962.26 in 2020[22]. - The net profit attributable to shareholders of the listed company decreased by 14.06% to RMB 45,392,682.71 from RMB 52,817,549.90 in the previous year[22]. - The net cash flow from operating activities increased significantly by 186.82% to RMB 101,757,107.26 from RMB 35,477,844.98 in 2020[23]. - The total assets of the company at the end of 2021 were RMB 641,120,386.13, a 2.47% increase from RMB 625,656,593.73 at the end of 2020[23]. - The basic earnings per share for 2021 were RMB 0.19, down 13.64% from RMB 0.22 in 2020[24]. - The weighted average return on net assets decreased to 8.22% in 2021 from 9.14% in 2020[24]. - The company reported a net asset attributable to shareholders of RMB 548,748,872.76 at the end of 2021, a decrease of 2.98% from RMB 565,616,535.55 at the end of 2020[23]. - The net profit after deducting non-recurring gains and losses was RMB 38,705,402.24, a slight increase of 1.11% from RMB 38,280,536.06 in 2020[22]. Revenue Breakdown - In 2021, the company achieved total revenue of RMB 548 million, a year-on-year increase of 30.58%[34]. - The main business revenue was RMB 311 million, growing by 4.31% year-on-year, while other business revenue (bulk raw material trade) reached RMB 237 million, up 94.93%[34]. - The company reported a significant increase in compound seasoning powder sales by 15.55% and flavor soup sales by 52.60% due to the recovery of the catering industry[34]. - The company faced a 46.98% decline in sauce product sales due to the impact of the pandemic on traditional retail channels[34]. - The overseas market revenue for 2021 was CNY 16.06 million, representing a year-on-year decline of 15.41% due to the ongoing impact of the COVID-19 pandemic[43]. Investment and Development - The company has invested CNY 9,261.20 million in the construction of a production project for 10,000 tons of 1:1 Tetra Pak seasoning bone soup, and CNY 8,635.74 million in a project for 700 tons of edible fungus extract and 1,625 tons of by-products[42]. - The company has launched new projects such as "Thousand Families, Thousand Frames" and "Every Family Has Chinese Red" to expand its presence in community fresh supermarkets and new agricultural markets, aiming to develop over 10,000 quality outlets[40]. - The company has introduced advanced information technology tools, including BI and digital marketing systems, to enhance internal operational efficiency and support sales teams[38][39]. - The company has completed the installation of a fully automated production line for curry blocks, capable of producing 10,000 boxes per hour, which is currently awaiting trial production[41]. - The company has applied for three invention patents and obtained two utility model patents related to its curry sauce production technology[41]. Market Strategy - The company aims to enhance its brand image and market share by optimizing channels, brands, products, and supply chains, focusing on meat-flavored compound seasoning powders, curry, and ready-to-eat sauces[86]. - The company plans to deepen channel work and create model markets in mature regions such as Central, South, and East China, while expanding into Southwest and North China[87]. - The company is accelerating its information technology construction to improve management efficiency and enhance logistics through an upgraded WMS warehouse system[88]. - The company will leverage its product technology advantages to provide customized product development for food processing enterprises, transitioning from a pure condiment supplier to a comprehensive solution provider[90]. Risk Management - The company faces potential risks related to food safety control despite having established a strict evaluation and inspection mechanism[93]. - Raw material price fluctuations pose a risk, particularly for significant agricultural products like pepper and sugar, which can impact gross margin levels if prices rise substantially[93]. - The company is exposed to industry downturn risks due to macroeconomic conditions and a decline in high-end dining, which may affect consumer spending on essential goods[94]. - Natural disasters, wars, and public health emergencies could damage the company's assets and operations, potentially increasing costs and affecting profitability[94]. Corporate Governance - The company adheres to legal requirements for corporate governance, ensuring independent operation of the board and management, and protecting minority shareholders' rights[96]. - The board of directors includes three independent directors, fulfilling legal obligations and focusing on the overall interests of the company[97]. - The company held its annual general meeting on May 18, 2021, where several key financial reports and proposals were approved[98]. - The company has a performance evaluation system for senior management to assess their work performance transparently[126]. - The internal control audit report received a standard unqualified opinion, indicating effective internal control systems[128]. Employee Management - The total number of employees in the parent company and major subsidiaries is 398, with 373 in the parent company and 25 in subsidiaries[114]. - The employee composition includes 93 production personnel, 206 sales personnel, 42 technical personnel, 11 financial personnel, and 46 administrative personnel[114]. - The company has established a scientific and standardized compensation management system to enhance fairness, motivation, and competitiveness in its salary policies[115]. - The company has a dedicated training management department to improve employee skills and ensure alignment with corporate management goals[117]. Financial Management - The company reported a total of 126,054,847.98 RMB in entrusted financial management, with 92,991,847.98 RMB remaining unexpired[148]. - The company has invested 15,150,000.00 RMB in a wealth management product with an annualized return of 1,076,655.50 RMB[150]. - The company has also invested 5,050,000.00 RMB in another wealth management product, yielding 325,580.59 RMB[150]. - The company has maintained a fixed income strategy across various products, with returns ranging from 6.00% to 10.00% on different investment products, indicating a stable income generation approach[155]. Shareholder Information - The total number of common shareholders increased to 17,656 by the end of the reporting period, up from 16,991 at the end of the previous month[160]. - The largest shareholder, Lin Xiaofang, holds 49.69% of the shares, totaling 116,880,434 shares, after a reduction of 5,133,999 shares during the reporting period[162]. - The top ten shareholders collectively hold a significant portion of the company's equity, with the largest shareholder alone holding nearly half[162]. - The company does not have any strategic investors or general corporations that became top ten shareholders through new share placements[164]. Audit and Compliance - The financial statements have been audited and reflect the company's financial position and operating results fairly as of December 31, 2021[174]. - The audit report confirms that sufficient and appropriate audit evidence was obtained to support the audit opinion, ensuring the reliability of the financial statements[182]. - The company's management assessed its ability to continue as a going concern, which is essential for stakeholders' confidence in its financial stability[183].