Milkground(SH:600882)2022-03-24 16:00Financial Performance - The company's operating revenue for 2021 was approximately CNY 4.48 billion, representing a year-over-year increase of 57.31% compared to CNY 2.85 billion in 2020[24]. - The net profit attributable to shareholders for 2021 was approximately CNY 154.43 million, a significant increase of 160.60% from CNY 59.26 million in 2020[24]. - The net profit after deducting non-recurring gains and losses for 2021 was approximately CNY 121.99 million, up 173.72% from CNY 44.57 million in 2020[24]. - The company's total assets at the end of 2021 were approximately CNY 6.70 billion, reflecting a 116.57% increase from CNY 3.09 billion at the end of 2020[24]. - The basic earnings per share for 2021 was CNY 0.332, an increase of 128.97% compared to CNY 0.145 in 2020[25]. - The weighted average return on equity for 2021 was 4.973%, an increase of 0.428 percentage points from 4.545% in 2020[25]. - The net cash flow from operating activities for 2021 was approximately CNY 437.03 million, a 63.65% increase from CNY 267.05 million in 2020[24]. - The company's net assets attributable to shareholders at the end of 2021 were approximately CNY 4.51 billion, a 203.70% increase from CNY 1.49 billion at the end of 2020[24]. Revenue Breakdown - The cheese segment generated revenue of CNY 333,487.27 million, representing 74.62% of total revenue, with a growth of 60.77% year-on-year[39]. - The liquid milk segment reported revenue of CNY 43,000.73 million, a 4.00% increase, but the gross margin decreased by 4.19 percentage points to 13.73%[51]. - The trade business revenue was CNY 70,399.29 million, accounting for 15.75% of total revenue, with a gross margin increase of 1.92 percentage points to 3.90%[52]. - The overall revenue for the cheese segment reached CNY 3.334 billion, with a gross profit margin of 48.51%, up 3.14 percentage points from the previous year[62]. - The ready-to-eat nutrition cheese series achieved a revenue of CNY 2.513 billion in 2021, representing a year-on-year growth of 70.80%[65]. - The family dining cheese series generated a revenue of CNY 351.48 million, with a year-on-year growth of 6.31%[71]. - The food service industrial cheese series saw a revenue of CNY 469.92 million, marking a significant year-on-year increase of 72.74%[71]. Market Position and Strategy - In 2021, Miaokelan Duo held a 30.8% market share in China's cheese brand sales, ranking first, and a 27.7% share in the retail market, also ranking first[96]. - The retail market size for cheese in China reached 14 billion RMB in 2021, with a year-on-year growth rate of 40%[95]. - The company aims to focus on cheese business and collaborate with Inner Mongolia Mengniu to enhance market expansion and resource sharing[86]. - The company plans to continue focusing on the "cheese-centric" strategy to drive growth in its core cheese product business[104]. - The company aims to become a leading cheese brand in China, focusing on strong channel capabilities and product matrix development[180]. - The company has initiated its second five-year plan to establish the brand "Miaokelan Duo" as a nationally recognized cheese brand[184]. Operational Efficiency and Investments - The company launched the "Shuzhi Miaokelan" initiative to improve operational efficiency, successfully implementing the SAP system across multiple business modules, which has elevated risk management and integrated financial operations[80]. - The company introduced the S&OP system to enhance efficiency and reduce costs, leading to significant improvements in operational efficiency and a decrease in supply chain costs[83]. - The company has established partnerships with major food chains such as Domino's, Burger King, and Nayuki, enhancing its one-stop solution offerings in the restaurant industry[79]. - The company expanded its cheese production capacity to 78,400 tons, a 107.47% increase year-on-year, with the new factory in Shanghai starting operations in April 2021[54]. - The company invested significantly in brand building and marketing, resulting in recognition as a top brand in various industry rankings[72]. Risks and Challenges - The company has faced significant risks as outlined in the "Management Discussion and Analysis" section, which details potential challenges ahead[8]. - The company emphasizes the importance of risk awareness in its forward-looking statements, advising investors to be cautious[7]. - The company faces industry risks due to potential changes in national policies and increasing competition in the cheese market[187]. - Market risks include intensified competition from overseas cheese brands and domestic enterprises, which may pressure profits and sales[188]. - The company is exposed to raw material market volatility, which can impact product profitability and cash flow[192]. - The ongoing COVID-19 pandemic may affect the company's production and sales logistics, posing risks to operational performance[194]. Governance and Compliance - The board of directors and supervisory board members confirmed the authenticity and completeness of the annual report[4]. - The company held 6 shareholder meetings during the reporting period, with all notifications published on time and in compliance with regulations[197]. - The company’s board of directors consists of 9 members, including 3 independent directors, and held 16 board meetings during the reporting period[199]. - The company’s supervisory board has 3 members, including 1 employee representative, and conducted 12 supervisory board meetings during the reporting period[200]. - The company adheres to the "Five Independents" principle in its operations, ensuring independence from the controlling shareholder in assets, personnel, finance, institutions, and business[198].