Zhejiang Yiming Food (605179)2022-04-22 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 20,257,776.05 for the year 2021, with a proposed cash dividend of RMB 0.16 per share, totaling an expected distribution of RMB 6,416,000, which represents 31.67% of the net profit [6]. - The company's operating revenue for 2021 was approximately ¥2.32 billion, an increase of 18.96% compared to ¥1.95 billion in 2020 [27]. - The net profit attributable to shareholders of the listed company decreased by 84.70% to ¥20.26 million in 2021 from ¥132.44 million in 2020 [27]. - The net profit after deducting non-recurring gains and losses was ¥7.23 million, down 93.90% from ¥118.42 million in the previous year [27]. - The net cash flow from operating activities increased by 76.47% to ¥371.07 million in 2021, compared to ¥210.27 million in 2020 [27]. - Basic earnings per share decreased by 87.18% to ¥0.05 in 2021, down from ¥0.39 in 2020 [27]. - The weighted average return on net assets dropped to 1.63% in 2021, a decrease of 16.59 percentage points from 18.22% in 2020 [27]. - Operating profit and net profit were 18.23 million yuan and 20.26 million yuan, respectively, showing a significant decline of 89.29% and 84.70% year-on-year [36]. - The company reported a significant increase in fixed costs due to the launch of new projects, impacting profitability [29]. Risks and Compliance - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties, ensuring compliance with regulatory decision-making procedures [7]. - The company has outlined potential risks in its annual report, advising investors to pay attention to these risks as detailed in the management discussion and analysis section [8]. - The introduction of new flavors and products poses market risks due to unpredictable economic conditions and consumer behavior, which may adversely affect sales and market expansion if the company fails to meet customer demands [160]. - The ongoing impact of the COVID-19 pandemic remains uncertain, potentially affecting store operations, product delivery, and supply chain, with the company unable to quantify future operational impacts [160]. - Fluctuations in the prices of key raw materials, such as milk and packaging materials, could negatively impact gross margins, prompting the company to implement cost control measures like bulk procurement and material substitution [160]. Market and Product Development - The company has developed a series of innovative products, including high-protein yogurt and a range of carbonated dairy beverages, which have been well received by consumers [41]. - The company is focusing on the development of healthy and nutritious baked goods tailored for different age groups, particularly in the school channel [42]. - The compound annual growth rate of the dairy market in China is 4.3%, with a notable increase in consumer demand for dairy products [47]. - The yogurt segment has seen a compound annual growth rate exceeding 15%, indicating strong market potential for functional yogurt products [47]. - The Chinese baking industry is expected to reach a market size of 307 billion yuan in 2023, driven by double-digit growth in cake and pastry segments [48]. - The company launched several innovative products, including "Warm Yogurt" and "True Fresh Egg Milk," addressing consumer preferences for health and nutrition [77]. - The company is focusing on product innovation in dairy, particularly through RO membrane filtration technology, to create differentiated high-end products [143]. - The company plans to enhance its baking product line by leveraging its core dairy technology and focusing on fresh, short-shelf-life healthy baked goods [145]. Sales and Distribution - The total number of stores reached 2,139 by December 31, 2021, with 569 new stores opened during the year, including 467 direct-operated stores [36]. - The main sales channel is the "Yiming True Fresh Milk Bar" chain, complemented by regional distribution and direct sales [64]. - The company’s milk bar model combines fresh dairy products with baked goods, catering to the demand for convenient, ready-to-eat food options in high-traffic areas [64]. - The company has established a unified retail terminal information system (POS system) for all direct-operated and franchised stores to manage product ordering, acceptance, and inventory effectively [65]. - The company utilizes a cold chain logistics system for direct delivery to all stores, with orders submitted two days in advance through the POS system, ensuring timely product distribution [66]. - The company has over 500 refrigerated transport vehicles and seven distribution centers, covering regions such as Zhejiang, Jiangsu, Shanghai, and Fujian, to maintain product freshness [73]. - The company has established its own demonstration farm in Wenzhou, with over 2,854 high-quality dairy cows, ensuring a stable supply of premium milk sources [74]. - The company has signed long-term supply contracts with external farms to enhance the quality and safety of sourced milk [74]. Research and Development - The company's R&D expenses increased by 7.73% to CNY 44,842,554.65, focusing on core product development and advanced technology reserves [81]. - The number of R&D personnel is 176, accounting for 2.95% of the total workforce [101]. - The company is investing 50 million RMB in R&D for new technologies aimed at enhancing product efficiency [174]. Strategic Goals and Future Outlook - The company aims to establish 6,600 "Yiming Zhenxian Milk Bar" locations in East China as part of its strategic goal [137]. - The company targets a user base of 30 million and 15 million members by 2025, with 3 million loyal members [142]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 300 million RMB allocated for potential deals [174]. - The company provided a future outlook, projecting a revenue growth of 10% for the next fiscal year [174]. - New product launches are expected to contribute an additional 200 million RMB in revenue over the next year [174]. - The management team emphasized the importance of sustainability initiatives, with a commitment to reduce carbon emissions by 30% over the next five years [174]. Governance and Management - The company has a diverse board with members holding various positions in other organizations, enhancing its governance structure [180]. - The company held a total of 6 board meetings during the year, all conducted via communication methods [185]. - The company established a comprehensive salary incentive system aimed at aligning individual and organizational goals [198]. - The company’s employee composition includes 1,428 production staff, 3,824 sales personnel, 176 technical staff, 100 financial staff, and 433 administrative staff [197]. - The company has implemented a diverse incentive system that includes both material and spiritual rewards for employees [199].