Financial Performance - In the fiscal year 2021, the company's revenue increased from RMB 7,985.8 million to RMB 8,873.3 million, representing a year-on-year growth of 11.1%[23] - Gross profit rose from RMB 3,982.0 million to RMB 4,470.7 million, reflecting a year-on-year increase of 12.3%[23] - Net profit attributable to the parent company increased from RMB 1,004.1 million to RMB 1,040.3 million, showing a year-on-year growth of 3.6%[23] - The company's revenue for the year 2021 was RMB 8,873.3 million, an increase of 11.1% compared to 2020, driven by effective marketing strategies and the trend towards product premiumization in mainland China[54] - The revenue from the company's self-branded formula milk products in China increased by 12.1% to RMB 7,762.3 million, contributing 85.0% to the total revenue[54] - The revenue from the self-branded formula milk products was RMB 4,414.1 million, a year-on-year increase of 15.5%[55] - The Haipinokai 1897 business unit, focusing on the ultra-premium market, recorded revenue of RMB 3,181.5 million, a year-on-year increase of 17.9%[55] - The Nengliduo business unit achieved revenue of RMB 1,019.3 million, a year-on-year increase of 23.3%[55] - The revenue from the nutrition products segment was RMB 177.1 million in 2021, a year-on-year increase of 24.5%, driven by sales of gastrointestinal health products and probiotics[59] - The company's private label and other businesses generated revenue of RMB 211.6 million and RMB 722.3 million respectively, contributing 10.5% to total revenue[57] Market Position - The company's market share in the offline sales of infant formula in mainland China increased to approximately 6.9%, ranking 5th in the industry[23] - The core self-owned brands of infant formula, including Jia Bei Ai Te, Hai Pu Nuo Kai, and Neng Li Duo, achieved double-digit growth, outperforming the overall industry performance[23] - The company maintained its leading position in the goat milk powder segment, with Jia Bei Ai Te holding over 60% market share in imported infant goat milk powder since 2018[23] - The infant formula industry in China is expected to see increased market concentration, with the top three and top ten brands holding market shares of 43.7% and 82.1%, respectively[49] Investments and Expansion - The company received approval for two green factories in the Netherlands and two in Australia, enhancing its global supply chain and product quality[24] - In 2021, the company invested in a new research center in Changsha, China, leading to 45 patent applications and 30 published academic papers, including 7 in SCI journals[25] - The company plans to complete the second formula registration work in 2022, ensuring 100% compliance for core products[37] - The company aims to expand its global layout for probiotics and enhance its product offerings in nutritional and special medical use products[37] - The company intends to invest in enhancing processing and logistics capabilities in China, as well as brand-building activities[44] - The company plans to expand its operations by constructing a new milk powder facility in the Netherlands, supported by increased financing[90] Shareholder and Governance - The company welcomed Inner Mongolia Yili Industrial Group as its largest shareholder, marking a significant merger in the Chinese dairy industry aimed at strategic collaboration[32] - The total consideration for the share purchase agreement with Yili Group was HKD 5,340,097,116, equating to HKD 10.06 per share[44] - The board of directors consists of nine members, including three executive directors, three non-executive directors, and three independent non-executive directors, ensuring a balanced and independent governance structure[109] - The company has established a nomination committee to review board composition and oversee the nomination and appointment processes[118] - The board has adopted a diversity policy, recognizing the benefits of a diverse and inclusive board, and aims to enhance diversity across various dimensions such as gender, age, and professional skills[136] Sustainability and Corporate Responsibility - The company is committed to sustainable development and has established a green supply chain to contribute to environmental protection[35] - The company has identified 8 out of 17 United Nations Sustainable Development Goals relevant to its operations[172] - The company is actively reducing reliance on natural gas and transitioning to electric heating to achieve zero nitrogen emissions[172] - The company established a Sustainability Committee in 2018 to support the board in implementing sustainability strategies across subsidiaries[172] - The company made charitable donations totaling RMB 22,283,000 in 2021, a decrease from RMB 35,016,000 in 2020[181] Financial Position and Cash Flow - The company's operating cash inflow for the year was RMB 1,071.3 million[17] - The company's total assets increased to RMB 9,514.2 million, while net assets reached RMB 5,493.6 million[17] - The net cash balance as of December 31, 2021, was RMB 1,214.4 million, maintaining a strong liquidity level[37] - The net cash flow from operating activities for the year 2021 was RMB 1,071.3 million, a decrease of 5.2% from RMB 1,130.2 million in 2020, primarily driven by a pre-tax profit of RMB 1,233.7 million[82] - The net cash flow used in investing activities increased to RMB 606.5 million in 2021 from RMB 402.5 million in 2020, mainly due to the acquisition of property, plant, and equipment amounting to RMB 442.3 million[83] Risk Management and Compliance - The company has established a risk management and internal control framework based on COSO ERM and ISO 31000, adopting a "three lines of defense" model to manage risks effectively[152] - The board conducted an annual review of the effectiveness of the risk management and internal control systems, finding them to be effective and sufficient without any significant deficiencies identified[159] - The company emphasizes the importance of compliance with regulatory requirements and has provided guidelines to employees regarding legal compliance[171] - The company has implemented policies to mitigate risks, including anti-fraud measures and reporting procedures, to ensure compliance and proper conduct[154] Employee and Director Information - The total employee cost for the year 2021 was RMB 1,485.5 million, up from RMB 1,380.7 million in 2020, reflecting adjustments based on individual performance and current market salary levels[98] - The company employed a total of 4,896 full-time employees as of December 31, 2021, down from 5,202 in 2020, mainly due to restructuring in the formula milk powder business unit[98] - The company has established various retirement benefit plans for its employees in different regions, including mandatory provident funds in Hong Kong and defined contribution plans in the Netherlands, Australia, and New Zealand[98] - The company has adopted a share option scheme as a reward for directors and employees, with specific details outlined in the board report[191] Audit and Financial Reporting - The company has engaged Ernst & Young as the independent auditor for the consolidated financial statements, ensuring compliance and accuracy in reporting[115] - The total remuneration paid to external auditor Ernst & Young amounted to RMB 11,757,000, which includes RMB 6,640,000 for annual audit services and RMB 3,757,000 for non-audit services[151] - The internal audit department reports directly to the audit committee and conducts audits at least twice a year to enhance oversight and management functions[157]
澳优(01717) - 2021 - 年度财报