Financial Performance - Total revenue for 2021 reached RMB 15,346,167, an increase of 30.3% compared to RMB 11,781,195 in 2020[6] - Profit before income tax was RMB 2,095,333, reflecting a growth of 31.4% from RMB 1,594,435 in 2020[6] - Net profit for the year was RMB 2,021,216, a 31.2% increase from RMB 1,540,630 in 2020[6] - The adjusted net profit attributable to the company’s owners was RMB 2,040,400, representing a 49.1% increase from RMB 1,368,093 in 2020[7] - The company recorded a revenue of RMB 15,346 million and a profit of RMB 2,021 million for the year, representing growth of 30.3% and 31.2% respectively compared to the previous year[8] Revenue Breakdown - Raw milk business revenue was RMB 9,537,814, up 36.4% from RMB 6,994,592 in the previous year[6] - Revenue from ruminant animal breeding solutions was RMB 5,808,353, up 21.3% from RMB 4,786,603 in the previous year[6] - Feed business revenue rose by 21.2% to RMB 5,328 million, contributing 34.7% to total revenue[24] - Raw milk revenue rose by 36.4% from RMB 6,995 million in 2020 to RMB 9,538 million, driven by stable growth in sales volume and milk prices[44] - The revenue from ruminant animal husbandry solutions grew by 21.3% from RMB 4,787 million in 2020 to RMB 5,808 million, attributed to growth in feed and dairy supermarket businesses[44] Operational Expansion - The number of dairy cows increased to 416,196, a growth of 35.0% from 308,195 in 2020[6] - The company operates 73 farms covering 16 provinces, with a total dairy cow inventory exceeding 410,000[5] - The company expanded its operations by launching 3 new farms, 1 feed production base, and 1 core breeding factory during the reporting period, with a total dairy cow inventory reaching 416,000 heads and raw milk production of 1,990,000 tons[17] - The company launched three new farms during the reporting period, including a 6,000-head Jersey cow farm[25] - The company established a new international standard dairy cattle breeding farm in Inner Mongolia with a designed capacity of 3,500 heads, aimed at becoming the largest quality breeding source output base in China[30] Product Development - The company introduced new specialty fresh milk products, including organic A2 milk and selenium-enriched milk, enhancing the total production of specialty fresh milk[17] - The company launched new fresh milk and feed products during the reporting period, enhancing its product offerings[21] - New product launches included organic A2 milk and selenium-enriched milk to meet growing consumer demand for specialty fresh milk[32] - The introduction of high-value new products in the feed business included anti-antibiotic upgraded calf feed and specialized nutritional products for farms[32] Strategic Goals and Future Outlook - The company aims to create a new "YouRan MuYe" by 2026, focusing on strengthening its leading position in the industry and continuously creating value for customers, shareholders, and society[9] - The company aims to achieve a strategic goal of raising raw milk cattle stock to 800,000 heads by 2026, doubling the scale of its feed business[40] - The compound annual growth rate for raw milk demand is projected at 8.9% from 2020 to 2025, with a forecasted requirement of 36.4 million tons of raw milk by 2025[40] - The company plans to allocate approximately RMB 2,033 million (75% of net proceeds) for future investment projects, including new farms and feed production bases[149] Corporate Governance and Management - The company emphasizes the importance of strategic management and compliance in its operations and governance[158] - The board consists of two executive directors, four non-executive directors, and three independent non-executive directors[154] - The company is committed to maintaining strict corporate governance to protect and enhance shareholder interests[168] - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance by all directors from the listing date until December 31, 2021[169] - The company has implemented a comprehensive risk management system, with the audit committee authorized to manage, monitor, and improve this system[199] Environmental and Sustainability Initiatives - Total environmental investment during the reporting period amounted to RMB 91.55 million, focusing on sustainable development strategies[38] - The company has established a carbon emission monitoring and warning platform and is conducting research on low-carbon breeding models[38] - The company is committed to sustainability, targeting a reduction in carbon emissions by 30% over the next five years[162] Financial Position and Cash Flow - The net cash generated from operating activities for the reporting period was RMB 2,266,010,000, up from RMB 1,707,871,000 in the previous year, indicating a growth of approximately 32.6%[70] - The net cash used in investing activities was RMB 8,696,940,000, primarily due to payments for biological assets of RMB 3,773,000,000 and acquisitions of subsidiaries totaling RMB 2,379,000,000[71] - The company completed the acquisition of a 100% stake in Fonterra China Farms for a consideration of RMB 2,530,566,000 on April 1, 2021[76] - The total sales cost increased by 29.7% from RMB 11,049 million in 2020 to RMB 14,333 million in the reporting period[45] Customer and Supplier Relationships - Revenue from the top five customers amounted to RMB 9,563.2 million, accounting for 62.3% of total revenue[92] - Sales to the largest customer, Yili, generated revenue of RMB 8,756.7 million, representing 91.8% of total raw milk revenue during the reporting period[92] - The procurement amount from the largest supplier was RMB 327 million, accounting for about 1.5% of total procurement[92] - The group has entered into a dairy product procurement framework agreement with Yili Group, effective for three years from the listing date, to ensure a stable supply of dairy products[127] Employee and Compensation - Total employee count as of December 31, 2021, is 10,414, with technical staff comprising 22.2% of the workforce[77] - Total compensation expenses for the reporting period amounted to RMB 901 million, an increase of 8% compared to RMB 834 million for the year ended December 31, 2020[79] - The company is committed to employee development through competitive compensation, performance-based bonuses, and various training programs[77] Risk Management - Key risks identified include supply and quality of dairy cows, product and service quality, manufacturing safety, environmental pollution, market supply and demand changes, strategic risks, operational risks, and financial risks[199] - The company has implemented strict procurement policies to ensure high-quality supplies from vendors[95]
优然牧业(09858) - 2021 - 年度财报