BRIGHT DAIRY(SH:600597)2021-03-29 16:00Financial Performance - The company achieved a net profit of CNY 228,594,457 for the year 2020, with a total distributable profit of CNY 1,883,155,064[6]. - The proposed cash dividend is CNY 0.16 per share, amounting to a total of CNY 195,918,002, which represents 32.25% of the net profit attributable to shareholders[6]. - The company's operating revenue for 2020 was CNY 25.22 billion, an increase of 11.79% compared to CNY 22.56 billion in 2019[23]. - The net profit attributable to shareholders for 2020 was CNY 607.59 million, representing a growth of 21.91% from CNY 498.41 million in 2019[23]. - The net cash flow from operating activities decreased by 10.42% to CNY 2.16 billion in 2020, down from CNY 2.41 billion in 2019[23]. - The total assets at the end of 2020 reached CNY 20.31 billion, a 15.15% increase from CNY 17.64 billion at the end of 2019[23]. - The basic earnings per share for 2020 was CNY 0.50, up 21.95% from CNY 0.41 in 2019[23]. - The company reported a weighted average return on equity of 10.19% for 2020, an increase of 1.16 percentage points from 9.03% in 2019[23]. - The company achieved total revenue of 63.21 billion RMB in 2020, representing a year-on-year growth of 27.57%[48]. - The net profit for the year was 3.03 billion RMB, an increase of 2.18% compared to the previous year[48]. Dividend Policy - The company implemented a cash dividend distribution plan, distributing 1.3 RMB per 10 shares, totaling 159,183,376 RMB in June 2020[108]. - The cash dividend payout ratio for 2020 was 32.25%, compared to 31.94% in 2019 and 35.83% in 2018, indicating a stable return to shareholders[112]. - The company has a long-term commitment to cash dividends, prioritizing shareholder returns while ensuring sustainable operations[108]. Risk Management - The company has outlined various risks including industry risks, livestock disease risks, and food safety risks in its report[10]. - The company emphasizes the importance of investor awareness regarding the risks associated with forward-looking statements in its report[7]. - The company is enhancing its disease prevention system for cattle to mitigate risks associated with livestock diseases, focusing on feed and health management[1]. - The company aims to improve asset liquidity by accelerating accounts receivable collection and inventory management to reduce potential financial risks[1]. Research and Development - The company applied for 110 national patents in 2020, including 101 invention patents[44]. - The company has established a national key laboratory for dairy biotechnology, showcasing its leading research and development capabilities in the industry[34]. - The company will leverage its research platforms to increase innovation and improve the conversion rate of research results[95]. - R&D expenses totaled CNY 72.84 million, representing 0.29% of operating revenue[64]. - The number of R&D personnel was 94, making up 0.8% of the total workforce[64]. Market Strategy - The company operates a dual circulation strategy, leveraging both domestic and international markets to enhance growth potential in the dairy industry[34]. - The company is recognized as a leader in high-end dairy brands in China, with a sales scale exceeding CNY 20 billion[34]. - The company launched a new fresh milk product line, which quickly penetrated second and third-tier cities after its release in April 2020[45]. - The company signed a long-term supply agreement with a multinational dairy company, enhancing its business diversification[48]. - The company plans to enhance its supply chain competitiveness by optimizing milk source layout and logistics support[99]. Environmental Responsibility - The company emphasizes food safety, establishing a three-tier management system to ensure quality control across the entire supply chain[1]. - Environmental protection measures are being strengthened, including waste treatment and resource utilization, to comply with increasing regulatory standards[1]. - The company has established a pollution prevention and control facility that operates in compliance with environmental regulations, ensuring normal operation[146]. - The company has developed self-monitoring plans for major pollutants, adhering to local environmental department requirements[151]. - No environmental pollution incidents occurred during the reporting period, demonstrating the company's commitment to environmental protection[152]. Corporate Governance - The company has maintained compliance with corporate governance regulations, ensuring equal rights for all shareholders[194]. - The company is actively managing its governance structure to ensure compliance and effective oversight[176]. - The board of directors held a total of 14 meetings in 2020, with 3 in-person meetings and 11 conducted via communication methods[199]. - The audit committee convened 7 times in 2020, approving 19 proposals including the estimated daily related transactions for the year[200]. - The company is committed to transparency in its remuneration practices, as evidenced by the detailed disclosure of executive compensation[173]. Employee Management - The company employed a total of 11,856 staff, including 3,854 production personnel and 3,953 sales personnel[187]. - The total amount paid for labor outsourcing was CNY 712,132,762[190]. - The company has established a performance-oriented compensation policy that links employee income to individual, departmental, and company performance[188]. - The company has implemented various training programs, including online sales training and food safety training, to enhance employee skills[189].