Financial Performance - Total revenue for the year ended December 31, 2021, was RMB 11,547.8 million, representing a 3.2% increase from RMB 11,194.7 million in 2020[7]. - Gross profit for the same period was RMB 7,248.0 million, a slight increase of 0.8% from RMB 7,187.0 million in 2020[7]. - Net profit for 2021 was RMB 508.5 million, a significant decline of 55.3% compared to RMB 1,136.7 million in 2020[7]. - Adjusted comparable EBITDA decreased by 10.3% to RMB 1,851.9 million, with an adjusted EBITDA margin of 16.0%, down from 18.4%[7]. - Revenue from infant nutrition and care products decreased by 10.8% to RMB 6,157.6 million, with infant formula milk powder revenue from mainland China at RMB 4,983.3 million, down 2.7% year-on-year[22]. - The company reported a total comprehensive income of RMB 35,735 thousand for 2021, a significant decrease from RMB 1,404,167 thousand in 2020[195]. - The company’s net asset value decreased to RMB 5,885,186 thousand in 2021 from RMB 6,202,687 thousand in 2020[197]. - The company reported a foreign exchange loss of RMB 91,387,000, highlighting currency fluctuation challenges[198]. Revenue Segmentation - The infant nutrition and care segment accounted for the largest share of total revenue in 2021, despite challenges in the Chinese market due to declining birth rates[10]. - Revenue from the pet nutrition and care segment was 57.3% of total revenue for the year ended December 31, 2021[8]. - Revenue from mainland China accounted for 78.7% of total revenue, down from 82.8% in 2020[9]. - The adult nutrition and care products segment generated revenue of RMB 4,209.2 million, an increase of 8.8% compared to the previous year[20]. - The pet nutrition and care products segment saw a remarkable revenue increase of 2,668.1% to RMB 726.4 million, reflecting strong market demand[20]. Market Position and Growth - The retail sales of the ultra-premium infant formula series grew by 22.5% in 2021, capturing a market share of 11.1%[10]. - The probiotics supplement brand, Biostime, remains a leader in the global children's probiotics market, although it faced challenges due to high base effects in 2020[10]. - The infant nutrition and care segment achieved a market share of 40.3% in the organic infant formula category in France by the end of 2021[11]. - The adult nutrition and care segment in mainland China saw significant growth in both online and offline sales channels, contributing to a stable revenue increase[11]. - The company anticipates continued strong sales momentum in adult nutrition and pet nutrition segments, despite challenges in the infant nutrition segment due to low birth rates and regulatory impacts[13]. Acquisitions and Investments - The acquisition of Zesty Paws completed on October 4, 2021, is expected to enhance the pet nutrition and care segment's revenue[10]. - Zesty Paws generated revenue of RMB 190.1 million from October 4 to December 31, 2021, with annual sales reaching USD 105.0 million, a growth of 43.6%[26]. - The company completed the acquisition of Zesty Paws, LLC for approximately $610 million on October 4, 2021, making it a wholly-owned subsidiary[144]. Cost Management and Profitability - The company's revenue for the year ended December 31, 2021, reached RMB 11,547.8 million, representing a 3.2% increase compared to 2020, driven by growth in adult nutrition and pet nutrition segments, as well as the consolidation of Zesty Paws' revenue post-acquisition[19]. - The total EBITDA for the year was RMB 1,428.9 million, down 33.7% from RMB 2,156.8 million in 2020[33]. - Sales and distribution costs for the year ended December 31, 2021, increased by 7.3% to RMB 4,796.3 million compared to 2020, with the ratio of these costs to total revenue rising from 40.0% in 2020 to 41.5% in 2021[29]. - The company is closely monitoring inflationary pressures on profits and plans to optimize product mix and improve cost efficiency to mitigate impacts[14]. Dividends and Shareholder Returns - The annual dividend payout ratio for 2021 was set at 30% of adjusted net profit, maintaining a consistent dividend policy[12]. - The board proposed a final dividend of HKD 0.17 per share, bringing the total annual dividend to HKD 0.54 per share, which represents approximately 30% of the adjusted net profit[43]. - Proposed dividend for the year is RMB 209,345,000, reflecting a significant allocation of profits[198]. Governance and Management - The company aims to achieve Group-wide B Corporation certification by 2025, with plans to obtain certification in the Australia-New Zealand market in 2023[19]. - The management team includes Mr. Luo, who has held multiple positions within the company since 1999, focusing on sales and business development[51]. - The board consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors[62]. - The company emphasizes high standards of corporate governance to enhance transparency and accountability to shareholders[61]. Risk Management and Compliance - The company is committed to maintaining and continuously optimizing a robust risk management system to ensure sustainable business development[85]. - The audit committee reviews the risk and control management framework semi-annually, ensuring adequate resources are allocated for effective risk management and internal auditing[90]. - The company has established arrangements for employees to report any suspected misconduct related to financial reporting and internal controls[80]. Sustainability and Corporate Responsibility - The company emphasizes resource conservation and waste management to enhance environmental protection[46]. - The company plans to establish a Sustainability Committee by the end of 2022 to enhance its environmental, social, and governance performance[62]. - Charitable donations for the years ending December 31 were RMB 3.9 million, RMB 4.1 million, and RMB 4.2 million for 2019, 2020, and 2021 respectively[106].
H&H国际控股(01112) - 2021 - 年度财报