YILI(SH:600887)2021-04-28 16:00Financial Performance - In 2020, the company achieved a net profit of CNY 7,262,053,044.92, with a year-on-year increase of 2.08% compared to CNY 6,933,763,430.47 in 2019[13]. - The total operating revenue for 2020 was CNY 96,523,963,249.92, representing a 7.24% increase from CNY 90,009,132,852.26 in 2019[13]. - The net cash flow from operating activities increased by 16.51% to CNY 9,851,639,164.55, up from CNY 8,455,480,282.43 in the previous year[13]. - The company's total assets reached CNY 71,154,264,385.29 at the end of 2020, a 17.69% increase from CNY 60,461,267,016.42 at the end of 2019[13]. - The net assets attributable to shareholders of the listed company were CNY 30,383,910,257.46, reflecting a 16.28% increase from CNY 26,131,025,017.47 in 2019[13]. - The basic earnings per share for 2020 was CNY 1.17, a slight increase of 1.74% from CNY 1.15 in 2019[14]. - The company reported a weighted average return on equity of 25.18% for 2020, a decrease of 1.20 percentage points from 26.38% in 2019[14]. - The company achieved total revenue of CNY 96.886 billion, a year-on-year increase of 7.38%, and a net profit of CNY 7.099 billion, up 2.13% from the previous year[25]. - The company reported a total profit of CNY 7,632,435,404.92 for 2020, down from CNY 7,911,837,361.19 in the previous year[168]. Revenue and Sales Growth - In Q1 2020, the company's operating revenue was CNY 20.54 billion, with a net profit attributable to shareholders of CNY 1.14 billion[15]. - In Q2 2020, the operating revenue increased to CNY 26.80 billion, with a net profit attributable to shareholders of CNY 2.59 billion, marking a significant growth[15]. - Sales revenue from liquid dairy products increased by 3.20% year-on-year, while sales from milk powder and dairy products rose by 28.15%, and sales from frozen products grew by 9.35%[26]. - New product sales accounted for 16.0% of total revenue, with significant growth in the "Yili" cheese series, "Jindian" low-temperature milk, and upgraded "Jinlingguan" infant formula[21]. - The retail sales of liquid dairy products increased by 12.7% year-on-year, with organic liquid dairy sales growing by 35.1%, capturing a market share of 50.6%[21]. - The company expanded its e-commerce business, with revenue growth of 55.0% year-on-year, capturing a 28.1% market share in the ambient liquid milk segment on e-commerce platforms[28]. Market Position and Brand Recognition - The company maintained a market share of 33.3% in liquid dairy products, an increase of 0.9 percentage points compared to the previous year, and approximately 6% in infant formula, remaining stable[21]. - The company has been recognized as the most valuable brand in the food and dairy industry for eight consecutive years by BrandZ™ and was named the most valuable dairy brand globally by Brand Finance[23]. - The company maintained a brand penetration rate of 91.6% and reached nearly 1.3 billion consumers, ranking first in consumer choice in China for five consecutive years[28]. Research and Development - The total R&D investment for the period amounted to ¥487,099,849.41, representing 0.50% of the operating revenue[40]. - The company has obtained a total of 3,109 domestic and international patents, including 552 invention patents, with an increase of 37 from the previous year[24]. - The company has been conducting breast milk research for 18 years, establishing a comprehensive database to support product development tailored to Chinese infants[41]. Corporate Social Responsibility - The company invested 1,346.93 million RMB in poverty alleviation efforts during the reporting period, focusing on health, education, and social support[81]. - The company donated 470.6 million RMB worth of products to impoverished families to improve nutrition during the pandemic[81]. - The company allocated 160 million RMB for the "Yili Ark" children's safety project, benefiting approximately 100,000 students and teachers[81]. - The company was recognized as a leading enterprise in social responsibility by the People's Daily in May 2020, ranking 60th[84]. Environmental Sustainability - The company has implemented strict environmental protection measures, complying with national pollution control laws and standards, with no environmental pollution incidents reported[88]. - The company has reported a continuous COD discharge of 50.72 mg/L, which is significantly below the limit of 500 mg/L[91]. - The company achieved a cumulative reduction of 6.51 million tons of CO₂e through continuous greenhouse gas inventory efforts over 11 years[99]. - The company invested CNY 189 million in environmental protection measures, including upgrades to wastewater systems and organized emissions reduction actions[94]. Financial Management and Debt - The company’s total liabilities increased to CNY 40.62 billion in 2020, up from CNY 34.19 billion in 2019, representing an increase of approximately 18.5%[162]. - The debt-to-asset ratio increased slightly to 57.09% in 2020 from 56.54% in 2019, reflecting a marginal rise in leverage[150]. - The company issued a total of CNY 10 billion in short-term financing bonds in 2020, with interest rates ranging from 1.57% to 3.28%[152]. - The loan repayment rate was 100% for both 2020 and 2019, indicating strong repayment capabilities[150]. Governance and Compliance - The company has established four specialized committees within the board, enhancing governance and oversight[133]. - The company reported no significant internal control deficiencies during the reporting period, as confirmed by the supervisory board[141]. - The company’s independent directors did not raise any objections to company matters during the reporting period[141]. - There were no significant lawsuits or arbitration matters reported for the year[72]. Future Outlook - The company plans to achieve total revenue of 107 billion yuan and a total profit of 9.3 billion yuan in 2021[65]. - The company aims to invest 18.337 billion yuan in leading industry projects and supporting projects in 2021[66]. - The company will focus on expanding overseas markets and enhancing global brand operations[64].