Financial Performance - For the year ended December 31, 2021, the audited turnover of Fufeng Group amounted to approximately RMB 21.5 billion, representing an increase of approximately 29% compared to 2020[5]. - Profit attributable to shareholders for the same period was approximately RMB 1.3 billion, reflecting a year-on-year increase of approximately 103%[5]. - The Group's revenue increased by 29.1% to approximately RMB21,539.8 million in 2021 compared to 2020, driven by higher contributions from food additives, animal nutrition, and high-end amino acids[25]. - Gross profit rose by 38.7% to approximately RMB3,905.3 million in 2021, primarily due to increased gross profit from animal nutrition and high-end amino acid products[26]. - Profit attributable to shareholders surged by 103.3% to approximately RMB1,280.6 million in 2021 compared to 2020[26]. - Total revenue for the Group reached RMB21,539.8 million in 2021, representing a 29.1% increase from RMB16,690.7 million in 2020[36]. - The gross profit for the Group increased to RMB3,905.3 million in 2021, with an overall gross profit margin of 18.1%[32]. Cost and Pricing Dynamics - The average prices of corn and coal, which account for 59% and 15% of total production costs respectively, increased significantly by 35% and 37% during the year[7]. - Average prices of corn and coal increased significantly by 34.7% and 37.4%, respectively, impacting operational costs[27]. - Total production costs increased by 22.5% in 2021, amounting to RMB17,691.1 million, primarily due to rising raw material costs[48]. - Corn kernels accounted for approximately 59.1% of total production costs, with an average price increase of 34.7% to approximately RMB2,350 per tonne[49]. - Coal constituted 15.0% of total production costs in 2021, with an average unit cost of RMB360 per tonne, reflecting a 37.4% increase from 2020, influenced by a supply shortage[56]. Product Segmentation and Growth - Fufeng Group's key products include cash cow products like MSG and xanthan gum, and star products such as animal nutrition and high-end amino acids, with the latter showing high growth potential[8]. - The animal nutrition segment has become one of the most profitable businesses for Fufeng Group, driven by a complete product line including threonine, lysine, and others[10]. - Revenue from animal nutrition products increased to approximately RMB7,619.9 million in 2021, a significant increase of 50.3% compared to 2020, driven by higher sales of threonine and lysine[41]. - High-end amino acid products generated revenue of approximately RMB1,415.4 million, a 50.0% increase from 2020, with gross profit rising by 69.6% to RMB587.9 million and a gross profit margin of 41.5%[42]. Strategic Initiatives - The company aims to implement a "Dual High-quality Objectives" strategy for 2022, focusing on high-quality internationalization and maintaining its leading position in the Chinese market[11]. - The Group's strategic mission includes accelerating the integration of global resources to become a leading corn biochemical enterprise[10]. - The Group plans to enhance its international production and sales network as part of its "Dual High-quality Objectives" strategy for 2022[74]. - A scientific research facility will be established in Qingdao to improve research and technical capabilities, including independent yeast research and product application development[75]. Dividend and Shareholder Returns - Fufeng Group maintains a stable dividend payout ratio of 35%, with total dividends for 2021 amounting to HK 21.5 cents per share[5]. - The Company recommended a final dividend of HK11.7 cents per share, leading to a total dividend of HK21.5 cents per share for the year, compared to HK9.9 cents in the previous year[65]. - The Group's total distributable reserves reached RMB 543,374,000 as of December 31, 2021, compared to RMB 318,956,000 in 2020, reflecting a significant increase of approximately 70.5%[173]. Governance and Compliance - The Company is committed to maintaining high standards of corporate governance practices and continuously enhancing internal controls and risk management procedures[92]. - Independent directors accounted for 50% of the Board members[89]. - The Company has established an ESG Committee to oversee environmental, social, and governance initiatives[86]. - The Board is collectively responsible for promoting the success and interest of the Group through its leadership and supervision[98]. - The Company has developed a Risk Management Manual and established a risk management strategy and structure during the reporting year[137]. Employee and Workforce Management - As of December 31, 2021, the Group had approximately 15,000 employees, with remuneration aligned with relevant policies in the PRC[77]. - Staff costs increased by approximately RMB56.0 million, or 5.3%, from approximately RMB1,065.0 million in 2020 to approximately RMB1,121.0 million in 2021[64]. - The company recognizes the importance of diversity and aims to enhance gender diversity among Board members[124]. Risk Management - The Group's risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatement or loss[135]. - The annual risk assessment conducted by the Risk Management Team identified key risks and documented responsive mitigating controls in risk registers[143]. - The management confirmed the effectiveness of the risk management and internal control systems for the year ended December 31, 2021, with no significant areas of concern affecting strategic goals[143].
阜丰集团(00546) - 2021 - 年度财报