Xinjiang Tianrun Dairy (SH:600419)2023-03-30 16:00Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 1.87 RMB per 10 shares, totaling approximately 58.98 million RMB, which represents 61.20% of the net profit attributable to shareholders for the year[6]. - The total number of shares entitled to profit distribution is 315,390,291 after excluding treasury shares[6]. - The company did not issue bonus shares or increase capital reserves during the reporting period[6]. - The company reported a total cash dividend distribution of approximately 120.30 million RMB, including the repurchase fund used in 2022[6]. - The company implemented a cash dividend policy, distributing a total of 45,148,120.16 RMB, which accounts for 30.16% of the net profit attributable to shareholders[109]. - The cash dividend per 10 shares is 1.4315 RMB, with a total cash dividend amounting to 120,303,175.24 RMB, representing 61.20% of the net profit attributable to shareholders[112]. Financial Performance - The company's operating revenue for 2022 was CNY 2,409,784,719.07, representing a 14.25% increase compared to CNY 2,109,258,100.81 in 2021[22]. - The net profit attributable to shareholders for 2022 was CNY 196,560,979.49, a 31.33% increase from CNY 149,670,727.48 in 2021[22]. - The basic earnings per share for 2022 was CNY 0.6214, reflecting an 11.52% increase from CNY 0.5572 in 2021[23]. - The company's total assets as of the end of 2022 were CNY 3,933,478,713.51, a 13.29% increase from CNY 3,472,149,517.81 at the end of 2021[22]. - The net cash flow from operating activities for 2022 was CNY 300,954,052.51, a decrease of 16.12% compared to CNY 358,779,203.27 in 2021[22]. - The company reported a decrease in the weighted average return on equity to 8.57% in 2022 from 9.02% in 2021[23]. - In 2022, the company achieved operating revenue of CNY 240,978.47 million, a year-on-year increase of 14.25%, and a net profit attributable to shareholders of CNY 19,656.10 million, up 31.33%[43]. Market and Industry Trends - The dairy product market is experiencing a shift towards diversified products, with a notable increase in demand for low-temperature fresh milk[28]. - The government has implemented policies to support the dairy industry, aiming for a national milk production of approximately 41 million tons by 2025[30]. - The company aims to strengthen its market position and expand its scale in response to the growing consumer demand for health and nutrition[29]. - The market is experiencing intensified competition, with domestic brands focusing on technological innovation and foreign brands leveraging strong product capabilities to penetrate both first and second-tier markets[32]. Research and Development - The company has increased its R&D investment to upgrade products such as pasteurized milk and low-temperature yogurt, aiming for high-end development to meet diverse consumer demands[31]. - Research and development expenses increased by 57.74% to CNY 10,251,694.83, attributed to higher investment in new product development and livestock breeding technology[47]. - The company has been awarded 41 national patents, including 7 invention patents, showcasing its strong innovation capabilities[40]. Operational Efficiency and Quality Control - The company operates 18 dairy farms with a total of approximately 44,000 cattle, ensuring stable and high-quality raw milk supply[37]. - The company has established a comprehensive and modern management system, including ISO9001 and HACCP22000 standards, to ensure quality control throughout production[39]. - The company emphasizes the importance of high-quality raw milk sources, with a strategy to maintain a high self-sufficiency rate in fresh milk production[37]. - The company’s raw milk quality compliance rate reached 100%, supported by a robust quality control system and advanced inspection equipment[41]. - The company implemented strict quality control measures for milk, including on-site evaluations by industry experts to enhance milk source quality[46]. Sales and Distribution - The company has developed a robust sales network, utilizing both direct sales and distribution models to reach various market segments[36]. - The company has established 764 specialty stores across nearly 100 cities and counties, enhancing customer engagement and brand presence[43]. - The company’s sales from outside Xinjiang accounted for 43.04% of total revenue, indicating successful market penetration strategies[43]. - The company’s online sales strategy has been effective, with significant participation in major e-commerce platforms, enhancing brand visibility and sales[44]. Governance and Compliance - The company has a structured governance framework, ensuring compliance with laws and regulations, and has received an A rating for its information disclosure practices for four consecutive years[80]. - The company held three shareholder meetings in 2022, with all 17 proposals approved[82]. - The company has established and executed an insider information management system, ensuring no insider trading was detected prior to significant disclosures[81]. - The company’s governance structure is in compliance with the Company Law and relevant regulations from the China Securities Regulatory Commission[81]. - The company has not engaged in any related party transactions that would affect its independence[81]. Environmental Responsibility - In 2022, the company invested approximately 11.83 million RMB in environmental protection efforts[119]. - The company’s subsidiaries, Tianrun Technology and Shawan Gary, maintained compliance with wastewater discharge standards, with average concentrations of COD at 67.02 mg/L and 32.77 mg/L respectively[120]. - The company has developed a self-monitoring plan for environmental compliance, with all monitoring results in 2022 meeting the required standards[125]. - The company has implemented carbon reduction measures, including the use of energy-efficient equipment and low-nitrogen combustion gas boilers, to minimize pollutant emissions[129]. - The company reported no environmental pollution incidents in 2022, demonstrating effective environmental management practices[127]. Future Outlook and Risks - The company’s future plans and development strategies are subject to investment risks and do not constitute a commitment to investors[7]. - The company is facing risks from potential negative news in the dairy industry that could impact consumer confidence and market demand[72]. - The company recognizes the risk of significant diseases in the upstream livestock industry affecting milk supply and consumer demand[73]. - The company plans to expand its market presence outside Xinjiang, focusing on low-temperature yogurt while facing increasing competition from national brands and potential mergers and acquisitions in the industry[74].