YILI(SH:600887)2020-04-28 16:00Financial Performance - The company achieved a net profit of CNY 7,493,903,744.43 for the year 2019, with a year-on-year increase of 7.67% compared to CNY 6,439,749,610.82 in 2018[5]. - Total revenue for 2019 was CNY 90,009,132,852.26, representing a 13.97% increase from CNY 78,976,388,687.29 in 2018[21]. - The basic earnings per share for 2019 was CNY 1.15, an increase of 8.49% from CNY 1.06 in 2018[20]. - The company reported a net profit excluding non-recurring gains and losses of CNY 6,268,158,933.70, which is a 6.64% increase from CNY 5,878,050,473.25 in 2018[21]. - The company achieved total revenue of RMB 90.223 billion, a year-on-year growth of 13.41%, and net profit of RMB 6.951 billion, up by 7.73% compared to the previous year[42]. - The company's operating income for the reporting period was RMB 90.01 billion, an increase of 13.97% from the previous year[49]. - The company reported a total revenue of 79,340,536 RMB for the year 2019, reflecting a growth of 1.30% compared to the previous year[162]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of CNY 8.10 per 10 shares, totaling approximately CNY 4,913,183,654.73 based on the total share capital[5]. - The company reported a cash dividend of 7.00 RMB per 10 shares for 2018, totaling 4.254 billion RMB, with a net profit distribution ratio of 66.07%[102]. Operational Efficiency - The net cash flow from operating activities for 2019 was CNY 8,455,480,282.43, a slight decrease of 1.96% from CNY 8,624,771,799.80 in 2018[21]. - The company achieved a net cash flow from operating activities of RMB 8.46 billion for the year, indicating strong operational efficiency[24]. - The company’s total production of liquid milk was 8,758,252 tons, an increase of 8.03% year-on-year[54]. - The company’s total production of milk powder and dairy products increased by 65.76% year-on-year, primarily due to the merger with Westland Co-Operative Dairy Company Limited[54]. Market Position and Growth - The sales revenue from new product categories accounted for 19.4% of total revenue, an increase of 4.6 percentage points compared to the previous year[31]. - The revenue from key products such as "Gold Standard," "Anmuxi," and "Chuangqing" increased by 22.3% year-on-year, reflecting the effectiveness of the company's marketing strategies[31]. - The company’s liquid dairy products retail market share increased to 32.4%, up by 1.2 percentage points year-on-year, while infant formula milk powder market share rose to 6.0%, an increase of 0.4 percentage points[33]. - The company expanded its service network to nearly 1.039 million rural outlets, an increase of 8.0% year-on-year[36]. Acquisitions and Investments - The company completed the acquisition of Westland Co-Operative Dairy Company Limited, enhancing its international business presence in Southeast Asia[31]. - The company’s investment in trading financial assets increased by RMB 127.87 million, indicating a strategic focus on financial investments[26]. - The company’s investment in liquid milk projects reached CNY 1.04 billion, with a progress rate of 46.50%[84]. - The company has plans for market expansion through acquisitions and investments in new technologies and products[90]. Research and Development - The company’s R&D investment totaled ¥541.80 million, representing 0.60% of total revenue, with 411 R&D personnel[63]. - The company is focusing on product innovation in adult nutrition, cheese, and health drinks to drive healthy business growth[98]. Risk Management - The company has acknowledged potential risks in its operations and has provided a risk statement in the report[7]. - The company faces risks related to industry dynamics, financial fluctuations, and product quality, and will enhance risk management strategies accordingly[99][100]. Environmental Sustainability - The company reported a COD emission of 73.07 mg/L for intermittent discharge, well below the standard value of ≤150 mg/L, with a total discharge amount of 144.06 tons in 2019[134]. - The company has implemented real-time monitoring of wastewater discharge data in collaboration with local environmental protection departments[138]. - The company invested approximately 170 million yuan in environmental protection equipment upgrades in 2019[138]. - The company has established emergency response plans for environmental incidents and conducts regular drills to ensure effective response[140]. Corporate Governance - The company has established specialized committees within the board of directors to enhance decision-making efficiency and compliance[188]. - The company received a AAA credit rating from China Lianhe Credit Rating Co., indicating a strong ability to repay debts with low default risk[200]. - The internal control audit report issued by Da Hua Certified Public Accountants provided a standard unqualified opinion[196]. Employee Management - The total number of employees in the parent company and major subsidiaries is 59,052, with 27,519 in the parent company and 31,533 in subsidiaries[181]. - The company emphasizes a "4P" compensation philosophy based on position, performance, capability, and market, aiming to enhance employee motivation and align compensation with organizational performance[182]. - The total compensation for executives during the reporting period amounted to CNY 5,195.35 million[171].