Xinjiang Tianrun Dairy (SH:600419)2020-04-23 16:00Financial Performance - The company reported a distributable profit of RMB 76,518,176.94 as of December 31, 2019, proposing a cash dividend of RMB 1.57 per 10 shares, totaling RMB 42,170,095.91 for all shareholders[5]. - The company's operating revenue for 2019 was CNY 1,626,592,714.47, an increase of 11.26% compared to CNY 1,462,026,401.70 in 2018[21]. - The net profit attributable to shareholders for 2019 was CNY 139,583,335.57, representing a growth of 22.25% from CNY 114,183,166.40 in 2018[21]. - The net cash flow from operating activities for 2019 was CNY 239,228,171.43, up by 9.47% from CNY 218,539,974.52 in 2018[21]. - The total assets at the end of 2019 reached CNY 2,024,801,084.11, reflecting a 12.07% increase from CNY 1,806,744,167.66 at the end of 2018[21]. - The basic earnings per share for 2019 was CNY 0.67, a rise of 21.82% compared to CNY 0.55 in 2018[22]. - The company achieved a product sales volume of 189,200 tons in 2019, representing a year-on-year growth of 12.57%[41]. - The total operating revenue reached RMB 1,626,592,714.47, an increase of 11.26% compared to the previous year[43]. - The net profit attributable to shareholders was RMB 139,583,300, reflecting a growth of 22.25% year-on-year[41]. Investment and Growth Strategy - The company aims to increase its self-sufficient milk supply rate and improve milk quality to maintain its leading position in the regional dairy market[27]. - The company plans to increase investments in markets outside Xinjiang, aiming to deliver high-quality products to a broader audience[32]. - The company is focusing on enhancing its marketing capabilities and expanding its market share in both southern Xinjiang and inland markets[73]. - The company is implementing a dual strategy of "mergers and acquisitions + investment" to drive growth and resource integration[74]. - The company aims to establish a strong research team through talent acquisition and training, enhancing its innovation capabilities[74]. - The company plans to introduce a third new product category following the success of its existing products, aiming to optimize its product structure[72]. Risk Management - The company has detailed risk factors and countermeasures outlined in the report, particularly in the section discussing future development[8]. - The company emphasizes the importance of investment risk awareness in its forward-looking statements[6]. - The company faces market competition risks due to the fully competitive nature of the dairy industry and plans to enhance product and market planning to expand market share[79]. - The company is exposed to raw material price fluctuation risks, particularly for raw milk and packaging materials, and will implement measures to control costs effectively[79]. - The company has established comprehensive health and epidemic prevention protocols to mitigate risks associated with livestock diseases[80]. - The company acknowledges the ongoing risks posed by the COVID-19 pandemic and will adapt its operations and marketing strategies to ensure sustainable development[81]. Corporate Governance - The company has a governance structure that includes a board of directors with 9 members, of which 3 are independent directors[151]. - The company has established a performance evaluation mechanism for senior management, implementing annual target responsibility assessments based on operational goals[158]. - The board of directors held a total of 10 meetings during the year, with 9 conducted via communication methods, reflecting a strong commitment to governance despite the lack of in-person meetings[155]. - The company has established a compensation and incentive plan for its senior management, which was approved by the board and shareholders[139]. - The company maintains independence from its controlling shareholder in business, personnel, assets, and financial matters, ensuring autonomous operational capabilities[157]. Social Responsibility - The company is actively involved in social responsibility initiatives, aligning corporate benefits with social welfare[100]. - In 2019, the company invested a total of 785,900 RMB in poverty alleviation efforts, including cash donations and material support[104]. - The company donated 100 calves to the 47th Regiment of the Xinjiang Production and Construction Corps, enhancing local livestock farming and disease prevention training[102]. - The company initiated a milk donation program, providing 1,410 cartons of milk valued at 48,000 RMB to students in remote areas[101]. - The company contributed 69,276,600 RMB in various taxes in 2019, supporting national fiscal revenue[109]. Environmental Impact - The average concentration of chemical oxygen demand (COD) in wastewater for the year 2019 was 37.18 mg/l, with total emissions of 7.72 tons[111]. - The wastewater treatment capacity for Tianrun Technology is 2,500 tons per day, while for Shawan Gary it is 960 tons per day, both operating smoothly[112]. - Both Tianrun Technology and Shawan Gary have established emergency response plans for environmental incidents, with respective filing numbers 661200-2019-041-L and 654200-2018-002-L[114]. - The company has not reported any incidents of exceeding pollutant discharge standards in 2019[111]. Shareholder Returns - The company has a consistent profit distribution policy, ensuring stable returns to shareholders based on operational performance and funding needs[84]. - The cash dividend payout ratio has remained above 30% for the past three years, indicating a commitment to shareholder returns[85]. - The company has implemented a three-year shareholder return plan for 2019-2021, approved by the board and shareholders[84]. - The company’s profit distribution plan complies with regulatory guidelines set by the China Securities Regulatory Commission and the Shanghai Stock Exchange[84]. - The company has maintained a stable dividend policy, with no changes in the approach to shareholder returns over the past three years[85].