BRIGHT DAIRY(SH:600597)2022-03-28 16:00Financial Performance - Bright Dairy achieved a revenue of CNY 29,205,992,515 in 2021, representing a 15.59% increase compared to CNY 25,266,056,840 in 2020[26] - The net profit attributable to shareholders was CNY 592,337,225, a decrease of 2.55% from CNY 607,829,009 in the previous year[26] - The net profit after deducting non-recurring gains and losses was CNY 433,374,596, down 6.50% from CNY 463,481,472 in 2020[26] - The net cash flow from operating activities for 2021 was CNY 2,058,481,160, a decrease of 5.62% compared to the previous year[28] - The net assets attributable to shareholders increased by 24.85% year-on-year, reaching CNY 7,860,659,338 at the end of 2021[28] - Total assets grew by 16.28% year-on-year, amounting to CNY 23,450,401,026 at the end of 2021[28] - Basic earnings per share for 2021 were CNY 0.48, reflecting a decrease of 4.00% compared to 2020[28] - The weighted average return on equity decreased by 0.78 percentage points to 9.35% in 2021[28] - The company reported a total of CNY 158,962,629 in non-recurring gains for the year, after accounting for tax and minority interests[32] - The company reported a significant decrease in other income by 53.02%, from ¥121,010,397 to ¥56,853,128[76] - Investment income decreased by 175.08%, from ¥6,163,496 to -¥4,627,648, primarily due to increased losses from joint ventures[76] - The company experienced a 64.22% reduction in income tax expenses, decreasing from ¥371,769,878 to ¥133,009,974[76] Dividend and Profit Distribution - The company plans to distribute a cash dividend of CNY 0.16 per share, totaling CNY 220,582,539, which represents 37.24% of the net profit attributable to shareholders[7] - The total distributable profit for 2021 was CNY 2,271,131,439, after accounting for a statutory reserve of CNY 64,939,890 and retained earnings[7] - In 2021, the company distributed cash dividends of 195,918,002 yuan, with a payout of 1.6 yuan per 10 shares[168] - The company has committed to a cash dividend policy for the next three years (2021-2023) as part of its shareholder return plan[168] Strategic Initiatives and Future Plans - The company’s future plans include strategic initiatives that may involve market expansion and new product development, although specific details were not disclosed in the report[8] - The company plans to continue expanding its market presence and investing in new product development to address rising raw material costs and enhance profitability[64] - The company aims for a total revenue of 31.777 billion yuan and a net profit of 0.67 billion yuan for 2022[122] - The company plans to invest approximately 1.521 billion yuan in fixed assets in 2022[122] Acquisitions and Investments - The company completed the acquisition of 100% equity in Shanghai Dingying Agricultural Co., Ltd. and Dafeng Dingsheng Agricultural Co., Ltd. in April 2021[28] - The company acquired a 60% stake in Xiaoxiniu Company to enhance its milk source, production capacity, and market layout in the western region[41] - The company completed a private placement of 154 million shares at a price of RMB 12.52 per share, raising a total of RMB 1.93 billion, with RMB 1.355 billion allocated for ranch construction[55] - The company plans to acquire 60% equity in Qinghai Xiaoxiniu Biological Dairy Co., Ltd., expanding its market presence[158] Research and Development - The company applied for 86 national patents in 2021, including 83 invention patents, and was granted 24 invention patents and 10 utility model patents[49] - The company has established a national key laboratory for dairy biotechnology, showcasing its leading R&D capabilities in the dairy industry[44] - The total R&D expenditure amounted to ¥89,259,433, representing 0.31% of operating revenue[80] - The number of R&D personnel is 101, making up 0.8% of the total workforce, with 12 holding doctoral degrees[81] - The company will continue to focus on research and development, particularly in high-value functional products for children and adolescents[118] Risk Management and Compliance - The company has identified various risks including industry risks, livestock disease, financial risks, food safety risks, production safety risks, and environmental risks[9] - The company has implemented a risk assessment-based food safety management mechanism, ensuring compliance and safety across all product stages[126] - The company emphasizes safety management, adhering to the principle of "life first, safe development," and has increased safety investments to enhance management standards[126] - The company has not reported any significant differences in governance practices compared to regulatory requirements, indicating strong compliance[129] Environmental Responsibility - Environmental protection measures have been strengthened, including source reduction and upgrading of pollution control facilities, to ensure compliance with national and local regulations[126] - The company’s environmental emissions for COD were reported at 39.64 mg/L, well below the standard limit of 500 mg/L[178] - The company has committed to long-term effective measures to reduce methane emissions from its ranches[195] - The company has implemented pollution prevention facilities in accordance with environmental protection principles, ensuring they are operational and effective[185] Corporate Governance - The company has revised its governance documents, including the Articles of Association and information disclosure management system, to enhance transparency and shareholder rights[128] - The company maintains independence from its controlling shareholder in operations, assets, and finances, ensuring compliance with governance regulations[129] - The total pre-tax remuneration for the financial director was CNY 1.6 million, reflecting the company's commitment to competitive compensation for key management[135] - The company has established a remuneration and assessment committee authorized by the general meeting of shareholders[143] Employee Management - The company reported a total of 11,999 employees, with 4,002 in production, 3,871 in sales, and 2,377 in technical roles[162] - The company’s employee training programs, including "Heart Integration" and "Heart Sharp," aim to enhance employee performance and integration into the company culture[164] - The company’s remuneration policy links employee compensation to performance, ensuring fairness and motivation[163] Operational Performance - The company's dairy product manufacturing achieved revenue of 25.58 billion RMB, a year-on-year increase of 15.97%, while the operating cost rose to 20.56 billion RMB, an increase of 21.56%[64] - Liquid milk revenue reached 17.10 billion RMB, up 19.85% year-on-year, with a gross margin of 27.15%, down 3.57 percentage points[66] - The company produced 456,028 tons of fresh milk, a 22% increase year-on-year, and sold 451,336 tons, also up 22%[68]