Financial Performance - In 2022, China Feihe Limited reported revenue of RMB 21,310.9 million, a decrease of 6.4% from RMB 22,776.3 million in 2021[9]. - Gross profit for 2022 was RMB 13,950.6 million, down 12.9% from RMB 16,007.6 million in the previous year[9]. - Net profit decreased by 28.4% to RMB 4,948.1 million in 2022, compared to RMB 6,914.9 million in 2021[9]. - The company's revenue decreased by 6.4% from RMB 22,776.3 million in 2021 to RMB 21,310.9 million in 2022, primarily due to a decline in birth rates in mainland China and increased competition in the industry[36]. - The gross profit fell by 12.9% from RMB 16,007.6 million in 2021 to RMB 13,950.6 million in 2022, with the gross margin decreasing from 70.3% to 65.5%[41]. - Profit before tax decreased by 31.1% from RMB 9,672.3 million in 2021 to RMB 6,663.1 million in 2022[47]. - Income tax expenses decreased by 37.8% from RMB 2,757.4 million in 2021 to RMB 1,715.0 million in 2022, reflecting the decline in profit before tax[48]. - Other income and net gains decreased by 30.7% from RMB 1,974.0 million in 2021 to RMB 1,368.6 million in 2022, mainly due to reduced government subsidies[42]. - Administrative expenses rose by 27.1% from RMB 1,208.0 million in 2021 to RMB 1,535.0 million in 2022, primarily due to increased employee and R&D costs[44]. Assets and Equity - Total assets increased to RMB 35,515.8 million in 2022 from RMB 31,481.4 million in 2021[6]. - Total equity reached RMB 25,474.9 million in 2022, up from RMB 22,403.4 million in 2021[6]. - China Feihe's non-current assets amounted to RMB 13,286.1 million in 2022, reflecting growth from RMB 11,511.8 million in 2021[6]. - Cash and cash equivalents amounted to RMB 9,335.9 million as of December 31, 2022, primarily consisting of cash on hand and bank deposits[52]. Market Position and Strategy - The company maintained a strong market position, achieving 45 new product registrations for infant formula, leading the industry[10]. - The company aims to continue expanding its market presence and enhancing its brand value through strategic upgrades and innovation[8]. - The company is focused on creating a competitive brand and aims to become a century-old enterprise with international competitiveness[22]. - The company has a distribution network of over 2,700 offline customers covering approximately 94,000 retail points, generating 83.0% of total revenue from dairy products through offline sales[30]. - The company plans to expand its product range to cover four major business areas: maternal and infant nutrition, children's nutrition, adult nutrition, and health foods[21]. - The company aims to leverage the trend of Chinese modernization and expand its product offerings in the infant formula market, focusing on "fresh active nutrition" tailored for Chinese babies[63]. Research and Development - The company published 12 international SCI papers and received over 60 invention patent applications, demonstrating its commitment to R&D[10]. - China Feihe has been recognized for its research capabilities, leading the national "14th Five-Year" key research project on new infant formula technology based on Chinese breast milk[12]. - The company achieved a strategic upgrade to "fresh active nutrition," creating formula that better suits the physical constitution of Chinese babies[12]. - The company aims to innovate with a new generation of infant formula that focuses on the first 1,000 days of life, using active nutritional extracts from the 47° North golden milk source[21]. Corporate Social Responsibility and Sustainability - The company has implemented a green low-carbon development strategy, with three projects producing organic fertilizers that enhance soil quality over tens of thousands of acres[17]. - China Feihe's ESG rating was upgraded from BBB to A in 2022, marking the highest rating achieved by a Chinese food company[18]. - The company has initiated a public welfare campaign in collaboration with the Heilongjiang Provincial Education Department, benefiting 330,000 students[19]. - The company is committed to sustainable development and social responsibility, actively supporting rural revitalization and building a "common prosperity industrial chain" for higher quality growth[63]. Governance and Management - The board of directors includes experienced members such as Mr. Leng Youbin, who has over 30 years in the dairy industry and has been with the company since 2013[67]. - The company has a strong focus on financial management, with Mr. Liu Hua serving as CFO since 2013 and overseeing significant financing activities, including its listing on the NYSE in 2009[70]. - The company is set to re-elect several directors at the upcoming annual general meeting, ensuring continuity in leadership[65]. - The board of directors consists of eleven members, including four executive directors, three non-executive directors, and four independent non-executive directors, ensuring effective governance[192]. - The company has adopted corporate governance codes to promote effective internal controls and enhance transparency and accountability to shareholders[188]. Shareholder Information - Major shareholder Mr. Leng holds 4,477,428,339 shares, representing 49.29% of the company's equity[123]. - Harneys Trustees Limited, as a trustee, holds 4,461,740,357 shares, accounting for 49.12% of the equity[123]. - The percentage of shares held by the top five shareholders accounts for over 70% of the total equity, indicating concentrated ownership[123]. - The company has a diverse shareholder base, with multiple entities holding significant stakes, including Morgan Stanley entities with a combined total of 1,586,000,000 shares[123]. Future Outlook - The company has set a sales target of RMB 35 billion for 2023 and aims for a 15% compound annual growth rate from 2024 to 2028, although it anticipates challenges due to declining birth rates and increasing competition[50]. - The company plans to use HKD 2,621.9 million for offshore debt repayment, with an expected completion date by December 31, 2025[106]. - The company is focused on developing new products and technologies to meet consumer demands in the nutrition sector[72].
中国飞鹤(06186) - 2022 - 年度财报