Financial Performance - For the fiscal year 2021, China Kangda Food Company Limited reported a revenue of RMB 1,519.6 million, a slight decrease of 0.1% from RMB 1,520.8 million in fiscal year 2020[23]. - The gross profit for fiscal year 2021 was RMB 72.1 million, representing a significant decline of 37.6% compared to RMB 115.6 million in fiscal year 2020[23]. - The net loss attributable to shareholders was RMB 40.6 million in fiscal year 2021, worsening from a loss of RMB 36.1 million in fiscal year 2020[23]. - The basic loss per share for fiscal year 2021 was RMB 9.38, compared to a loss of RMB 8.33 per share in fiscal year 2020[10]. - The company's gross margin decreased from 7.6% in fiscal year 2020 to 4.7% in fiscal year 2021 due to rising animal feed costs and declining prices of live chicken[23]. - Sales revenue decreased by 0.1% from approximately RMB 1,520.8 million in the fiscal year 2020 to approximately RMB 1,519.6 million in the fiscal year 2021[41]. - Gross profit decreased by 37.6% from RMB 115.6 million in the fiscal year 2020 to RMB 72.1 million in the fiscal year 2021[41]. Market Strategy - The company plans to focus on high-value-added processed foods to maintain profitability and enhance competitiveness in a challenging market environment[24]. - The company aims to actively develop new markets and customers to counteract the challenges posed by low growth rates and increased competition in the food industry[24]. - The company plans to optimize its product mix, enhance cost management, strengthen brand building, and expand new sales channels to improve overall performance[25]. Product Performance - In the fiscal year 2021, the revenue from processed food increased by 13.6% to approximately RMB 738.2 million, driven by new product development[46]. - The revenue from frozen chicken decreased by 25.4% to approximately RMB 363.4 million due to significant price fluctuations[47]. - The revenue from frozen rabbit meat increased by 33.8% to approximately RMB 222.8 million, supported by the development of new domestic customers[48]. - The gross profit margin for processed food improved from 7.4% in the previous year to 8.4% in fiscal year 2021, benefiting from higher-margin new products[53]. - The gross profit margin for frozen chicken dropped to -8.6% in fiscal year 2021, a decline attributed to falling prices and demand[54]. - The gross profit margin for frozen rabbit meat increased to 7.6% in fiscal year 2021, due to a higher proportion of higher-margin products[55]. Health and Safety - The company has implemented comprehensive health and safety plans to ensure employee well-being and product safety amid the ongoing COVID-19 pandemic[24]. - The company emphasizes the importance of food safety and health, aligning with consumer trends towards healthier options[25]. - Rabbit meat, being high in protein and low in fat and calories, is positioned as a healthier alternative, contributing to the company's core competitive business[25]. Financial Position - As of December 31, 2021, the company's net asset value was approximately RMB 582.2 million, down from RMB 635.2 million a year earlier, with non-current assets at RMB 764.5 million and current assets at RMB 493.2 million[70]. - Cash and cash equivalents decreased by approximately 33.6% to about RMB 138.6 million as of December 31, 2021, primarily due to the repayment of bank loans during the fiscal year[66]. - Trade receivables increased by 38.8% to approximately RMB 120.2 million as of December 31, 2021, driven by increased procurement from major customers due to favorable market trends[66]. - Inventory rose by 5.7% to approximately RMB 127.5 million as of December 31, 2021, as the company maintained higher stock levels in response to positive market trends[66]. - The company's asset-liability ratio improved to 50.2% as of December 31, 2021, down from 67.8% a year earlier, reflecting a net debt of approximately RMB 284.5 million[72]. Corporate Governance - The company reported a clear separation of roles between the Chairman and the CEO, with the current Chairman also serving as CEO, which the board believes provides strong leadership[93]. - All directors received timely and sufficient information regarding the company's business, ensuring effective board operations[93]. - The board has established a shareholder communication policy to maintain effective contact with shareholders and encourage their participation in meetings[95]. - The company has implemented procedures for directors to seek independent professional advice at the company's expense to assist in fulfilling their duties[95]. - The board composition includes a balanced mix of executive and non-executive directors, ensuring strong independent judgment[97]. - The company has maintained a comprehensive list of directors on its website, detailing their roles and whether they are independent non-executive directors[98]. - The company has appointed independent non-executive directors for a term of one year, with the possibility of reappointment upon one month's written notice[99]. Risk Management - The board conducts an annual review of the risk management and internal control systems, covering all significant monitoring aspects including financial, operational, and compliance risks[128]. - The company has established a risk management and internal control system, with the board responsible for its effectiveness and compliance[132]. - The internal audit function has been outsourced to an external auditor, ensuring independence and expertise in the audit process[132]. - The audit committee reviews the effectiveness of internal controls and risk management systems, confirming their adequacy as of December 31, 2021[159]. Employee and Remuneration - The total employee cost for the group was approximately RMB 195.5 million for the fiscal year, slightly increasing from RMB 194.5 million in the previous fiscal year[77]. - The remuneration committee consulted the chairman regarding the remuneration of other executive directors, but did not seek independent professional advice during the fiscal year[117]. - Total remuneration for senior management (excluding directors) amounted to RMB 2,504,000 for the fiscal year 2021[177]. - The company did not recommend any performance bonuses for the fiscal year 2021 due to failure to meet target profit[172]. Audit and Compliance - The audit committee has the authority to consult independent professional advice as needed, with costs covered by the company[136]. - The audit committee's responsibilities include monitoring the relationship with external auditors and ensuring proper arrangements for confidential reporting of misconduct[136]. - The company is committed to maintaining compliance with accounting standards and regulatory requirements[195]. - The audit committee reviewed the independence and objectivity of external auditors, including the nature and extent of non-audit services provided[195].
康大食品(00834) - 2021 - 年度财报