YILI(SH:600887)2015-04-24 16:00Financial Performance - In 2014, the total revenue reached ¥54,436,426,792.08, an increase of 13.93% compared to ¥47,778,865,826.24 in 2013[26] - The net profit attributable to shareholders was ¥4,144,280,536.11, reflecting a growth of 30.03% from ¥3,187,239,562.47 in the previous year[26] - The net profit after deducting non-recurring gains and losses was ¥3,767,648,982.96, which is a significant increase of 71.19% compared to ¥2,200,828,027.44 in 2013[26] - The total assets at the end of 2014 amounted to ¥39,494,298,817.03, a 20.13% increase from ¥32,877,387,559.54 in 2013[26] - The net assets attributable to shareholders were ¥18,633,924,842.04, up by 15.56% from ¥16,125,099,260.91 in the previous year[26] - Basic earnings per share increased to ¥1.35, representing a growth of 22.73% from ¥1.10 in 2013[27] - The diluted earnings per share also rose to ¥1.35, reflecting the same percentage increase of 22.73% compared to the previous year[27] - The weighted average return on equity was 23.66%, an increase of 0.51 percentage points from 23.15% in 2013[27] Revenue Breakdown - The company's main business revenue reached 53.487 billion RMB, an increase of 6.032 billion RMB, with a year-on-year growth of 12.71%[38] - Liquid milk products generated 42.406 billion RMB in revenue, a 14.25% increase year-on-year, driven by price adjustments and product structure upgrades[38] - The revenue from milk powder and dairy products was 6.013 billion RMB, reflecting a 9.09% year-on-year growth[39] - The company’s cold drink products achieved revenue of 4.283 billion RMB, a slight increase of 0.96% year-on-year[39] - The mixed feed segment saw a revenue increase of 34.27%, reaching 783 million RMB, primarily due to expanded sales scale and regions[39] Cash Flow and Expenses - The net cash flow from operating activities was ¥2,436,487,020.35, showing a decrease of 55.50% from ¥5,474,748,415.96 in the prior year[26] - Management expenses increased by 32.25% to ¥3,163,230,547.49 compared to the previous year[51] - Financial expenses rose significantly due to increased bank borrowings, resulting in interest expenses[47] - The company reported an asset impairment loss of ¥176,432,072.84, a 492.77% increase year-on-year[51] Research and Development - R&D expenditure increased by 23.78% to 695.59 million RMB, indicating a focus on innovation[37] - The company established overseas R&D bases and enhanced its R&D team by attracting top talent in the dairy research field[50] - The company plans to increase investment in R&D projects to improve product efficacy and technology standards[50] - In 2014, the company applied for 146 patents and was granted 159 patents, including 33 invention patents, with a total of 1,682 authorized patents by the end of the reporting period[63] Market Expansion and Strategy - The company’s e-commerce business revenue grew by 815% year-on-year, supported by the optimization of direct flagship stores and the establishment of a direct supply platform[68] - The mother and baby channel sales increased by 86% year-on-year, with over 1.9 million new members added in 2014[68] - The company established a strategic partnership with DFA to build the largest milk powder factory in the U.S., enhancing raw material supply capabilities[72] - The company aims to enter the top 5 global dairy companies by 2020, focusing on product innovation and international business expansion[106] Corporate Governance and Management - The company has a clear governance structure, with the board of directors fulfilling their responsibilities diligently and in accordance with legal requirements[184] - The company has established specialized committees within the board, including a strategic committee, audit committee, nomination committee, and compensation and assessment committee, to enhance decision-making efficiency and compliance[185] - The company emphasizes the importance of performance evaluation and incentive mechanisms, aiming to balance efficiency and fairness in its assessment standards[186] - The company has implemented a performance incentive optimization project in 2014, aiming to align organizational performance with employee performance[178] Social Responsibility and Environmental Commitment - The company has actively engaged in social responsibility initiatives, including the "Yili Ark Project" focused on children's safety education and establishing libraries in impoverished schools[127] - The company has maintained a commitment to environmental protection, conducting carbon audits for five consecutive years and receiving the "International Carbon Gold Award" for four years[128] Future Outlook - The company plans to achieve a total revenue of 61 billion RMB and a profit of 5.5 billion RMB in 2015[107] - The company will enhance its quality management system to align with international standards, aiming for improved food safety and risk management[108] - The company plans to optimize its supply chain operations and implement an SRM information system to improve efficiency and reduce costs[109]