YILI(SH:600887)2019-02-27 16:00Financial Performance - In 2018, the company achieved a revenue of ¥78,976,388,687.29, representing a year-on-year increase of 16.92% compared to ¥67,547,449,530.32 in 2017[15] - The net profit attributable to shareholders for 2018 was ¥6,439,749,610.82, which is a 7.31% increase from ¥6,000,884,926.88 in 2017[15] - The net cash flow from operating activities reached ¥8,624,771,799.80, marking a significant increase of 23.10% from ¥7,006,297,178.98 in the previous year[15] - The company's total assets as of the end of 2018 were ¥47,606,204,460.43, a decrease of 3.44% from ¥49,300,355,318.14 at the end of 2017[15] - The basic earnings per share for 2018 was ¥1.06, reflecting a 7.07% increase from ¥0.99 in 2017[16] - The weighted average return on equity for 2018 was 24.33%, a decrease of 0.89 percentage points compared to 25.22% in 2017[16] - The company achieved total revenue of 79.553 billion yuan, an increase of 16.89% compared to the previous year, and a net profit of 6.452 billion yuan, up 7.48% year-on-year[28] - The liquid milk product line saw revenue growth of 17.78%, while the milk powder and dairy products segment grew by 25.14%, and the ice cream segment increased by 8.49%[28] Market Expansion and Product Development - The company actively expanded its international business, successfully entering the Indonesian market, which has been well-received by local consumers[23] - The company achieved a retail market share of 36.8% in the ambient and low-temperature liquid milk segment, and 5.8% in the infant formula segment, representing increases of 2.3 and 0.6 percentage points respectively[24] - The sales revenue of key products such as "Gold Standard," "Anmuxi," and "Joy Day" increased by 34.3% year-on-year, with new product sales accounting for 14.8% of total revenue, up by 5.6 percentage points from the previous year[22] - The company plans to accelerate its health food business strategy by entering the plant protein beverage and functional beverage markets[63] - The company is focusing on international market expansion, leveraging opportunities from the Belt and Road Initiative and rural revitalization[63] Research and Development - The company invested CNY 426.87 million in R&D, marking a significant increase of 104.08% compared to the previous year[32] - The company holds a total of 2,383 authorized patents, including 497 invention patents, with 4 patents awarded the China Patent Excellence Award[26] - Research and development expenses increased significantly to ¥463,144,335.65, representing 0.59% of total revenue, with a year-on-year increase of 121.43%[52] Corporate Governance and Shareholder Returns - The company proposed a cash dividend of ¥7.00 per 10 shares, totaling ¥4,254,689,325.60, after which the undistributed profits would be ¥3,855,174,450.18[3] - In 2018, the company distributed cash dividends totaling approximately CNY 4.25 billion, representing 66.07% of the net profit attributable to ordinary shareholders[67] - The company did not propose any cash profit distribution plan for the reporting period despite having positive distributable profits[68] - The company has not faced any major litigation or arbitration matters during the reporting period[70] Social Responsibility and Sustainability - The company invested CNY 4,745 million in targeted poverty alleviation initiatives, focusing on industry-based and nutrition-focused strategies[81] - The company has committed to a sustainable development plan that emphasizes four key action areas: industry chain win-win, quality and innovation, social welfare, and nutrition and health[80] - The company has actively participated in social responsibility initiatives, aligning with national poverty alleviation strategies[80] - The company donated CNY 11.5 million worth of milk powder to impoverished regions, benefiting over 73,000 individuals including children, pregnant women, and the elderly[82] Environmental Protection - The company reported a continuous discharge of COD (Chemical Oxygen Demand) at various facilities, with the highest level recorded at 165 mg/L in Zhejiang Yili Dairy[93] - Environmental protection facilities were constructed in compliance with the "three simultaneous" requirements, ensuring that pollution control systems were designed, built, and put into operation concurrently with the main projects[94] - The company has established an emergency response plan for environmental incidents, which has been filed with the local environmental protection bureau[96] - The company has implemented an online monitoring system for real-time discharge data tracking, ensuring compliance with local environmental standards[94] Financial Management - The company issued financing of approximately CNY 143.5 billion to 3,593 upstream and downstream partners during the reporting period, contributing to a cumulative financing amount of about CNY 282 billion since 2014[30] - The total cash flow from investment activities saw a significant increase of 9874.90%, amounting to 1,448,575,837.42 CNY[42] - The company reported a 1409.33% increase in cash used for debt repayment, totaling 11,320,000,000.00 CNY[43] - The company’s financing services have supported nearly 4,400 clients since the launch of its supply chain finance business[30] Employee and Management Structure - The number of R&D personnel was 364, accounting for 0.65% of the total workforce[40] - The company has established a comprehensive talent development system to support its global strategy, focusing on potential, backup, and international talent training projects[125] - The total number of employees in the parent company is 26,201, while the number of employees in major subsidiaries is 29,878, totaling 56,079 employees[123] - The company has implemented a "4P" compensation policy based on position, performance, ability, and market factors to enhance fairness and competitiveness in remuneration[124] Financial Reporting and Compliance - The audit report confirmed that the financial statements fairly reflect the financial position and operating results of the company as of December 31, 2018[135] - There were no significant deficiencies in internal control reported for the year, and a standard unqualified opinion was issued by the auditor[134] - The company’s financial statements are prepared based on the accrual basis of accounting in accordance with the relevant accounting standards[164] - The company confirmed that there are no significant doubts regarding its ability to continue as a going concern for the next 12 months[165]