Milkground(SH:600882)2021-04-28 16:00Financial Performance - The company's operating revenue for 2020 was CNY 2,846,807,171.16, representing a 63.20% increase compared to CNY 1,744,349,052.12 in 2019[26] - The net profit attributable to shareholders for 2020 was CNY 59,257,984.09, a significant increase of 208.16% from CNY 19,229,863.79 in 2019[26] - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 44,570,007.01, compared to a loss of CNY 12,189,927.27 in 2019[26] - The net cash flow from operating activities for 2020 was CNY 267,053,446.67, a decrease of 8.55% from CNY 292,034,715.17 in 2019[26] - Basic earnings per share rose to ¥0.145, marking a significant increase of 208.51% year-over-year[29] - The weighted average return on net assets improved to 4.545%, an increase of 3.006 percentage points compared to 2019[29] - The net profit attributable to shareholders for Q4 2020 was ¥6,413,270.77, contributing to an annual net profit of ¥59,257,053.09[30] - The company achieved operating revenue of CNY 2,846,807,171.16, a year-on-year increase of 63.20%[101] - Net profit attributable to shareholders reached CNY 59,258,000, compared to CNY 19,229,900 in the same period last year[101] Cash Flow and Investments - The net cash flow from operating activities for 2020 was ¥267,053,446.67, a decrease of 8.55% compared to ¥292,034,715.17 in 2019[130] - The net cash flow from investing activities for 2020 was -¥432,063,610.26, reflecting significant investments in fixed assets and construction projects due to capacity expansion[130] - The net cash flow from financing activities increased to ¥298,135,767.39 in 2020 from -¥576,942,229.12 in 2019, primarily due to capital increases from the company's wholly-owned subsidiary[130] - The company's investment activities generated a net cash flow of -CNY 432,063,610.26, primarily due to capacity expansion investments[102] Revenue Breakdown - The company's cheese business achieved revenue of 2,074.26 million yuan, a year-on-year increase of 125.15%, accounting for 72.91% of total revenue[65] - Liquid milk revenue decreased by 13.31% year-on-year, with a gross margin decline of 13.48 percentage points, now accounting for 14.53% of total revenue[69] - The trade business saw a slight revenue increase of 4.25% year-on-year, but its contribution to total revenue fell from 19.69% to 12.56%[70] - The revenue from the catering industrial segment was 272 million yuan, growing 29.90% year-on-year despite the pandemic's impact[80] - The company's revenue from the home dining series reached 331 million yuan, a year-on-year increase of 108.82%[80] Market Position and Strategy - The company's market share in the domestic cheese market reached 19.8% in 2020, ranking second, up from 4.80% in 2019[51] - The domestic cheese consumption in 2020 was projected to exceed 320,000 tons, representing a year-on-year growth of approximately 29%[49] - The company focuses on cheese products, with core offerings including cheese sticks and mozzarella cheese, aiming to establish a leading position in the dairy industry[39] - The company plans to concentrate resources on the cheese product business, which has greater growth potential[39] - The company is focusing on product innovation and upgrading to enhance competitiveness in the cheese market[71] Operational Efficiency and Capacity - The company's total cheese production capacity in 2020 was 37,788.84 tons, with a total output of 35,781.43 tons, achieving a capacity utilization rate of 94.69%[143] - The production of cheese sticks, a new product launched in 2018, showed a growing trend in both capacity and output over the past two years[143] - The company's mozzarella cheese production capacity utilization rate was 88.48% in 2020, down from 106.85% in 2019[143] - The company plans to enhance cheese production capacity, with a target of 82,800 tons for the new Shanghai cheese project[71] Research and Development - Research and development expenses rose by 74.23% to CNY 38,860,661.06 as the company intensified new product development efforts[102] - The company is committed to integrating global resources for technology research and development, mastering both original and reprocessed cheese production technologies[54] - The company has 60 R&D personnel, making up 3.54% of the total workforce[129] Marketing and Brand Development - The company has developed a strong brand presence, becoming a well-known national cheese brand in China[52] - The company aims to enhance brand influence by promoting the brand "Miaokelando" through various marketing channels and public relations activities[179] - The company will continue to expand its marketing network, focusing on deepening coverage in offline retail channels and enhancing e-commerce capabilities[180] - The company achieved the top sales position in online cheese products across all platforms, with over 90% market share on major B2C platforms like Tmall and JD[89] Challenges and Risks - The company faces industry risks, including potential changes in national policies and increasing competition, which could impact profit margins[182] - The ongoing COVID-19 pandemic poses risks to the company's operations, including disruptions in logistics and sales channels[190] - The company is facing increased market competition due to the entry of foreign cheese brands into China and the growing interest of domestic dairy companies in the cheese sector[183] - The company has a significant reliance on international raw material procurement, which exposes it to price volatility and potential supply chain disruptions[188] Corporate Governance - The audit report for the company was issued by Lianda Certified Public Accountants, confirming the accuracy of the financial report[8] - The company has not reported any violations in decision-making procedures for external guarantees[11] - The company has not distributed cash dividends for the past three years, maintaining a policy of reinvesting profits[195] - The company has not implemented any share buybacks or capital increases in the past three years[196]