Shanghai Ziyan Foods (SH:603057)2023-04-21 16:00Financial Performance - The company's operating revenue for the current period reached ¥3,602,592,054.70, representing a 16.51% increase compared to ¥3,092,092,381.37 in the same period last year[2]. - Operating costs increased by 24.90% to ¥3,027,036,581.28 from ¥2,423,472,330.32 year-on-year[2]. - The net profit attributable to shareholders of the listed company decreased by 32.28% to RMB 221,840,644.96 from RMB 327,596,166.79 in the previous year[133]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 181,350,643.79, down 33.22% from RMB 271,569,296.40 in 2021[133]. - The total assets at the end of 2022 reached RMB 2,744,255,769.83, a 36.56% increase from RMB 2,009,619,586.60 at the end of 2021[133]. - The net assets attributable to shareholders of the listed company increased by 67.12% to RMB 2,024,697,390.61 from RMB 1,211,531,429.03 in the previous year[133]. - Basic earnings per share for 2022 were RMB 0.5830, a decrease of 34.15% from RMB 0.8854 in 2021[134]. - The weighted average return on net assets was 15.02%, down 13.51 percentage points from 28.53% in the previous year[134]. - The company reported a total revenue of ¥3,567,225,623.73, with a year-on-year increase of 16.97%[200]. - The revenue from the distribution model was ¥3,135,037,147.49, with a gross margin of 15.61%, down 6.66 percentage points year-on-year[200]. Sales and Market Strategy - Sales expenses rose by 39.91% to ¥136,981,101.33, primarily due to increased market expansion and brand promotion efforts, including a ¥19.64 million increase in advertising expenses and a ¥10.74 million increase in personnel costs[3]. - The top five customers contributed ¥212,690.92 million in sales, accounting for 59.04% of total annual sales, with related party sales making up 14.20%[9]. - The company is focusing on technological upgrades to improve production efficiency and product quality in the marinated food sector[17]. - The company aims to enhance its market share and competitiveness by improving supply chain efficiency and expanding its nationwide store network[26]. - The company expanded its offline store network, focusing on mature cities in the East China region and adjusting strategies in South China, North China, and Southwest regions to enhance brand influence[143]. - Online business revenue increased steadily, leveraging major delivery platforms like Meituan and Ele.me to tailor promotional activities for franchisees, achieving expected revenue and profit[143]. - The company is actively developing a multi-channel marketing network, including online sales and group buying models, to capture the rapid growth of the industry and user traffic from third-party platforms[143]. - The company has established a diverse marketing network, including e-commerce, supermarkets, and group purchasing channels[155]. Production and Capacity - The company plans to strategically expand production capacity to support sustainable development and avoid constraints due to insufficient capacity[26]. - In 2022, the company achieved a total production capacity of 33,800 tons at the Ningguo factory, 10,600 tons at the Wuhan factory, 8,500 tons at the Shandong factory, 6,900 tons at the Lianyungang factory, and 6,200 tons at the Chongqing factory[144]. - The company has implemented flexible production lines in its standardized factories to support the development and rapid production of various product categories and flavors[143]. Product Development and Innovation - The company is committed to developing new products that meet consumer demands, aiming to increase market share and brand influence in the prepared food sector[55]. - The company has introduced new products each season based on consumer habits and regional characteristics, enhancing its product diversity and market responsiveness[180]. - The company’s product development is driven by consumer feedback and market trends, allowing for timely innovation and adaptation[180]. - The company has developed over a hundred types of marinated delicacies to meet diverse consumer demands[181]. Environmental and Governance Practices - The company has implemented modern electronic information management systems, achieving integrated management of core business processes[56]. - The company has established a comprehensive internal governance structure to ensure compliance with relevant laws and regulations[29]. - The company has implemented internal control systems to enhance governance and risk management across subsidiaries[93]. - The company has identified its environmental risk as general and has developed an emergency response plan for environmental incidents[102]. - The company emphasizes environmental protection in its operations, with all pollutant emissions meeting national standards during the reporting period[176]. - The wastewater treatment system has a capacity of 750 m³/d, and treated wastewater meets the Shandong Province water pollution discharge standards[82]. - The actual discharge values for key pollutants such as COD (20 mg/L) and ammonia nitrogen (0.5 mg/L) are below the permitted limits[82]. - The company has established an environmental self-monitoring plan and has installed online monitoring equipment for key indicators[84]. Human Resources and Management - The company will optimize human resource management to ensure stable and continuous growth, focusing on attracting senior talent in management, marketing, and sales[27]. - The company employed a total of 1,886 staff, with 308 in the parent company and 1,578 in major subsidiaries[74]. - The workforce composition includes 1,298 production staff, 302 sales personnel, 32 technical staff, 55 financial staff, and 199 administrative staff[74]. - The company has introduced performance management and incentive plans to motivate employees and ensure organizational goals are met[44]. - The company’s management compensation is linked to actual business performance[78]. Risks and Challenges - The company faces risks related to food quality and safety, particularly due to the short shelf life of its marinated products, which require strict control over various operational processes[58]. - The marinated food industry is experiencing increased competition, with a growing number of large-scale enterprises entering the market, which may impact the company's market share and operational performance if it cannot maintain its competitive advantages[58]. - Raw material costs account for over 80% of the company's main business costs, with key ingredients like chicken and beef making up more than 50% of total procurement expenses, making the company vulnerable to price fluctuations[58]. - In 2022, rising raw material prices negatively affected the company's gross margin, leading to fluctuations in net profit compared to the previous year[58]. - The company is actively monitoring raw material prices and is considering mechanisms to link raw material costs with product pricing to mitigate potential impacts on profitability[58]. Financial Management and Distribution - The company has a profit distribution policy that mandates a minimum cash dividend of 20% of the distributable profit, with higher thresholds for mature companies[76]. - The board approved the 2022 annual profit distribution plan, which requires shareholder approval[76]. - The company has a structured approach to ensure transparency and fairness in profit distribution to protect minority shareholders[76]. - The company reported non-operating income and expenses of 1,745,457.14 RMB in 2022, compared to -229,654.89 RMB in 2021, indicating a significant improvement[139]. - The company plans to distribute a cash dividend of RMB 309,000,000 (including tax), which amounts to RMB 7.5 per 10 shares based on a total share capital of 41,200,000 shares[122].