Xinjiang Tianrun Dairy (SH:600419)2022-04-27 16:00Financial Performance - The company reported a distributable profit of RMB 234,158,645.42 as of December 31, 2021, with a proposed cash dividend of RMB 1.41 per 10 shares, totaling RMB 45,146,824.69 for all shareholders[5]. - The company's operating revenue for 2021 was approximately ¥2.11 billion, representing a year-over-year increase of 19.32% compared to ¥1.77 billion in 2020[22]. - Net profit attributable to shareholders for 2021 was approximately ¥149.67 million, a slight increase of 1.52% from ¥147.43 million in 2020[22]. - The net cash flow from operating activities increased significantly by 64.49% to approximately ¥358.78 million in 2021, up from ¥218.12 million in 2020[23]. - The company's net assets grew by 41.48% to approximately ¥2.22 billion at the end of 2021, compared to ¥1.57 billion at the end of 2020[24]. - Total assets increased by 34.04% to approximately ¥3.47 billion at the end of 2021, up from ¥2.59 billion at the end of 2020[24]. - The total revenue for the company was CNY 2,102,383,746.37, with a gross margin of 16.36%, reflecting a decrease of 5.01 percentage points compared to the previous year[50]. - The company sold 243,300 tons of dairy products in 2021, marking a growth of 22.70% year-on-year[42]. Corporate Governance - The company has established a comprehensive corporate governance structure, ensuring compliance with relevant laws and regulations[87]. - The board of directors consists of 9 members, including 3 independent directors, ensuring a balanced governance approach[88]. - The company held 2 shareholder meetings in 2021, with all 21 proposals approved, demonstrating effective governance[90]. - The total pre-tax remuneration for the board members and senior management in 2021 amounted to CNY 6.931 million[92]. - The company has disclosed 52 temporary announcements and 4 regular reports during the reporting period, maintaining transparency[89]. Risk Management - The company has outlined potential risks and countermeasures in its report, emphasizing the importance of investor awareness regarding investment risks[6]. - The company faces risks from potential negative news affecting market demand, which could severely impact consumer confidence in the dairy industry[80]. - The company is exposed to risks from significant diseases in the upstream livestock industry, which could impact milk supply and consumer demand[81]. - The company is at risk of increased costs due to stricter industry regulations following past food safety incidents, which may affect profitability[80]. Product Development and Innovation - In 2021, the company launched new products including "Grape-flavored Yogurt," "Altai Yogurt," and "Summer Pasture Pure Milk," aiming to increase market share through product differentiation[40]. - The company completed the development of over 50 new products in 2021, including Altai-flavored yogurt and blood orange pomegranate yogurt[45]. - The company holds 39 national patents, including 6 invention patents, demonstrating its strong innovation capabilities in the dairy industry[40]. - The company is actively involved in R&D collaborations with universities, enhancing its technological capabilities and product innovation[40]. Market Strategy - The company has established a market network across 32 provinces and cities in China, focusing on both traditional and modern sales channels[41]. - The company aims to enhance its brand and product development through market-driven strategies and strengthen its dairy and livestock sectors[75]. - The company aims to enhance brand influence by establishing a dual-channel market system, focusing on both online and offline sales channels, and targeting both domestic and external markets[77]. Environmental Responsibility - The company has increased investment in environmental protection, ensuring compliance with regulations and improving waste treatment facilities[83]. - Tianrun Technology's average discharge concentration for COD was 45.07 mg/L and for ammonia nitrogen was 1.9 mg/L, with total emissions of 36.5 tons and 1.54 tons respectively in 2021[124]. - Tianrun Technology and Shawan Gary both have wastewater treatment facilities with capacities of 2500 tons/day and 960 tons/day respectively, operating smoothly in 2021[125]. Financial Audits and Compliance - The company’s financial report has been audited by Sigma Accounting Firm, which issued a standard unqualified opinion[4]. - The audit report indicates no significant misstatements in the financial statements, providing reasonable assurance regarding their accuracy[193]. - The company plans to continue its relationship with Sigma Accounting Firm for the 2022 financial and internal control audits, with a total audit fee of CNY 1 million[148]. Shareholder Relations - The company has committed to protecting the interests of minority shareholders against potential conflicts of interest[142]. - The company reported a commitment to transparency in related party transactions, adhering to legal and regulatory requirements[142]. - The total number of common shareholders increased from 25,943 to 30,886 during the reporting period[169].