BRIGHT DAIRY(SH:600597)2023-03-20 16:00Financial Performance - The total revenue for 2022 was 28.215 billion CNY, achieving 88.79% of the target, while the net profit attributable to shareholders was 361 million CNY, reaching 53.88% of the plan[29]. - The company's revenue for 2022 was ¥28.21 billion, a decrease of 3.39% compared to ¥29.21 billion in 2021[40]. - Net profit attributable to shareholders was ¥360.69 million, down 39.11% from ¥592.34 million in the previous year[40]. - The net profit after deducting non-recurring gains and losses was ¥168.69 million, a decline of 61.08% from ¥433.37 million in 2021[40]. - The company achieved a net profit of ¥145,454,236 for the year 2022, with a proposed cash dividend of ¥0.08 per share, totaling ¥110,291,269 (including tax) to be distributed to shareholders[48]. - Basic earnings per share decreased by 45.83% to ¥0.26 in 2022, compared to ¥0.48 in 2021[72]. - The weighted average return on net assets dropped to 4.57% in 2022, down from 9.35% in 2021, a decrease of 4.78 percentage points[72]. - The company's total revenue from distributors was CNY 20.53 billion, a year-on-year decrease of 3.03%, while the gross margin increased by 2.87 percentage points to 13.84%[117]. - The revenue from the dairy segment was CNY 24.09 billion, down 5.82% year-on-year, with a gross margin of 20.43%, an increase of 0.80 percentage points[117]. - The livestock segment reported revenue of ¥2,640,585,610, an increase of 15.33% year-over-year, but with a gross margin of only 1.35%, down 1.57 percentage points[151]. Cash Flow and Investments - Cash received from operating activities decreased by 35.29% to 222,965,280 yuan compared to the previous year[5]. - Cash flow from the disposal of fixed assets decreased by 35.21% to 278,640,432 yuan year-on-year[5]. - The company experienced a 41.83% decrease in cash paid for the acquisition of fixed assets, totaling 1,386,014,807 yuan[5]. - The company reported a significant increase of 121.44% in cash received from borrowings, amounting to 2,347,822,176 yuan[5]. - The net cash flow from operating activities was ¥667.14 million, a significant drop of 67.59% compared to ¥2.06 billion in 2021[40]. - The company has significant investments in subsidiaries, including a loan of ¥150 million for acquisitions, with interest expenses of ¥6,056,875 incurred[157]. - The company has provided guarantees totaling ¥222,550,000, which represents 2.78% of its net assets[159]. Research and Development - The total R&D investment for the period was 84,661,532 yuan, representing 0.30% of operating revenue[3]. - The company plans to invest in research and development, focusing on high-value functional products and leveraging big data for precise innovation[33]. - The company has established a national key laboratory for dairy biotechnology, showcasing its leading R&D capabilities in the dairy industry[86]. - The company applied for 92 national patents in 2022, including 82 invention patents and 10 utility model patents[94]. - The company employed 115 R&D personnel, representing 0.9% of the total workforce, with 21 holding doctoral degrees[131]. Market and Competitive Strategy - The company aims for a total revenue of 32.05 billion CNY and a net profit of 680 million CNY for 2023, with a target return on equity greater than 8%[29]. - The company plans to enhance digital transformation and improve overall competitiveness through a comprehensive digital management system[29]. - The company is committed to strengthening its brand and marketing efforts to enhance the "Bright" brand's market presence and appeal[33]. - The company intends to expand its national layout and enhance resource integration to create a new competitive landscape in the industry[33]. - The company is focused on product innovation and upgrading to inject new vitality into the Bright brand[84]. - The company is accelerating the digital transformation of its entire industry chain to empower high-quality development[91]. Inventory and Supply Chain - The company noted an increase in inventory due to higher raw material and finished goods levels at the end of the reporting period[7]. - The company's inventory reached ¥4,196,700,084, representing a 34.75% increase compared to the previous period[141]. - The company is focusing on digital transformation across the entire supply chain to enhance operational efficiency and data quality[112]. - The company plans to enhance its core competitiveness by optimizing its supply chain and expanding its market presence through digital transformation[33]. Risks and Audit - The company has outlined potential risks including industry risks, livestock diseases, financial risks, food safety risks, production safety risks, and environmental risks[55]. - The company has received a standard unqualified audit opinion from PwC Zhongtian[50]. - The audit report highlights significant risks of material misstatement due to fraud, emphasizing the need for robust internal controls[197]. - The company must assess the appropriateness of the going concern assumption, with potential uncertainties affecting its ability to continue operations[198]. Subsidiaries and Market Presence - The company has included a new subsidiary, Chuzhou Guangming Ecological Smart Ranch Co., Ltd., in its consolidation scope this year[120]. - New Zealand New Light generated revenue of ¥6,920,597,830 and a net profit of ¥28,180,241, contributing significantly to the company's overall performance[148]. - The overseas segment saw revenue of ¥6,909,746,928, an increase of 4.68% year-over-year, with a gross margin of 9.74%, up 2.87 percentage points[151]. - The company has expanded its market presence through community group buying channels and online platforms[102]. Asset and Liability Management - The company's total assets increased by 4.27% to ¥24.45 billion at the end of 2022, up from ¥23.45 billion at the end of 2021[40]. - Total current liabilities surged to CNY 10,734,516,944, compared to CNY 8,689,140,992 in the previous year, representing an increase of about 23.54%[178]. - The company reported a total non-current asset value of CNY 14,543,864,321, up from CNY 14,272,109,228, which is an increase of about 1.90%[178]. - The total liabilities of the company increased significantly, reflecting a growing leverage position in the market[178].