Xinjiang Tianrun Dairy (SH:600419)2021-03-18 16:00Financial Performance - The company reported a distributable profit of RMB 174,812,293.12 as of December 31, 2020, and plans to distribute a cash dividend of RMB 1.65 per 10 shares, totaling RMB 44,318,890.61[7]. - The company's operating revenue for 2020 was CNY 1,767,673,596.18, an increase of 8.67% compared to CNY 1,626,592,714.47 in 2019[24]. - The net profit attributable to shareholders for 2020 was CNY 147,434,228.38, reflecting a growth of 5.62% from CNY 139,583,335.57 in 2019[24]. - The net cash flow from operating activities decreased by 8.83% to CNY 218,115,597.06 in 2020 from CNY 239,228,171.43 in 2019[24]. - The total assets at the end of 2020 reached CNY 2,590,315,396.00, a 27.93% increase from CNY 2,024,801,084.11 at the end of 2019[24]. - The basic earnings per share for 2020 was CNY 0.56, down 16.42% from CNY 0.67 in 2019[25]. - The weighted average return on equity decreased by 4.53 percentage points to 9.99% in 2020 from 14.52% in 2019[25]. - The company achieved a total sales volume of 198,302.28 tons in 2020, representing a year-on-year growth of 4.81%[67]. - The company's total operating revenue for the reporting period was approximately RMB 1.76 billion, with a year-on-year increase of 8.62%[82]. Dividend Policy - The company implemented a cash dividend policy, distributing a total of 42,170,095.91 RMB in cash dividends for 2019, which represents 30.21% of the net profit attributable to shareholders[103]. - For the year 2020, the company plans to distribute 44,318,890.61 RMB in cash dividends, maintaining a payout ratio of 30.06% of the net profit attributable to shareholders[103]. - The cash dividend per 10 shares for 2019 was 1.57 RMB, while for 2020 it is set at 1.65 RMB[103]. - The company has a three-year shareholder return plan from 2019 to 2021, approved by the board and shareholders[103]. - The company has committed to maintaining stable returns to shareholders based on operational performance and funding needs[104]. Risk Management - The company has detailed risk factors and countermeasures in the report, particularly in the section discussing future development[10]. - The company has a comprehensive risk disclosure in the report, highlighting potential challenges ahead[10]. - The company emphasizes that forward-looking statements do not constitute substantive commitments to investors[8]. - The company has established comprehensive health and safety protocols to mitigate risks associated with livestock diseases, ensuring the quality and quantity of milk production[100]. - The company is preparing for potential natural disasters by securing feed supplies and implementing protective measures for its dairy farms[100]. Innovation and R&D - The company has 45 national authorized patents, including 6 invention patents, showcasing its strong innovation capabilities[37]. - The company increased its R&D expenses by 64.16% to CNY 5.22 million, reflecting a commitment to product innovation[63]. - The company plans to invest in technological innovation by collaborating with research institutions to enhance its R&D capabilities and establish a robust "big R&D" platform[97]. - The company is focusing on innovation and product upgrades to enhance market share and meet consumer demand[91]. Market Expansion and Sales Strategy - The company has expanded its sales network, establishing 365 dedicated stores for its products and enhancing its marketing strategies to improve brand recognition[45]. - The company plans to continue expanding its market presence outside Xinjiang, targeting major retail chains in regions like Guangzhou and East China[39]. - The online sales channel has become increasingly important for dairy companies, driven by the pandemic and changing consumer behavior[90]. - The company plans to achieve a sales volume of 220,000 tons of dairy products and an expected revenue of 2 billion RMB in 2021[95]. Corporate Governance - The company has established a sound corporate governance structure, aligning with the requirements of the Company Law and relevant regulations[182]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with legal requirements[181]. - The company has maintained a consistent structure in its board and management team without any changes in shareholding[162]. - The overall governance structure remains stable, with no reported conflicts of interest among board members[165]. Social Responsibility - The company has established a long-term mechanism for poverty alleviation, focusing on "industrial poverty alleviation and employment promotion" to enhance the development capabilities of impoverished populations[124]. - The company donated 100 selected bulls to a cooperative in the 47th regiment, contributing to the adjustment of the local industrial structure and increasing income for minority workers[124]. - The company donated 7,000 boxes of dairy products to support frontline medical staff during the COVID-19 pandemic[130]. - The company actively participates in social welfare activities, including donating milk to improve nutrition for children in impoverished areas[133]. Environmental Management - The company is focused on environmental protection, ensuring that wastewater discharge meets national standards without exceeding limits in 2020[135]. - The company has established wastewater treatment facilities with a capacity of 2,500 tons per day for Tianrun Technology and 960 tons per day for Shawan Gary, both operating smoothly[136]. - The company has implemented self-monitoring plans for wastewater, waste gas, and noise, detailing monitoring projects and methods[139]. Audit and Compliance - The company’s financial report has been audited by Sigma Accounting Firm, which issued a standard unqualified opinion[6]. - The audit report issued by Sigma Accounting Firm provided a standard unqualified opinion on the financial statements[192]. - The company has not encountered any major accounting errors that require correction[110]. - The company has complied with the Chinese accounting standards in preparing its financial statements[194].