YANGYUAN(603156)2020-04-17 16:00Financial Performance - The company's operating revenue for 2019 was CNY 7,459,290,694.08, a decrease of 8.41% compared to CNY 8,144,243,871.80 in 2018[16]. - The net profit attributable to shareholders for 2019 was CNY 2,695,295,487.24, down 4.99% from CNY 2,836,983,603.12 in 2018[16]. - The net cash flow from operating activities decreased by 19.00% to CNY 1,671,449,718.82 in 2019 from CNY 2,063,627,454.11 in 2018[16]. - The basic earnings per share for 2019 was CNY 2.5558, a decline of 5.64% from CNY 2.7086 in 2018[17]. - The weighted average return on equity decreased to 22.85% in 2019, down 4.15 percentage points from 27.00% in 2018[17]. - The total assets at the end of 2019 were CNY 15,110,238,657.01, a decrease of 1.19% from CNY 15,292,066,900.35 at the end of 2018[16]. - The net assets attributable to shareholders increased by 3.70% to CNY 12,413,464,847.63 at the end of 2019 from CNY 11,970,063,005.22 at the end of 2018[16]. - The company reported a non-recurring gain of CNY 394,784,559.85 from entrusted investment or asset management in 2019[22]. - Revenue decreased by 8.41% compared to the same period last year, while operating costs decreased by 13.66%[49][51]. - The gross profit margin for the beverage industry was 52.82%, an increase of 2.87 percentage points compared to the previous year[52]. Dividend and Share Capital - The company plans to distribute a cash dividend of RMB 20 per 10 shares, totaling RMB 210,915.60 million, with a cash dividend payout ratio of 78.25%[3]. - As of December 31, 2019, the company's distributable profits amounted to RMB 646,615.22 million[3]. - The total share capital before the capital reserve transfer is 1,054,578,000 shares, which will increase to 1,265,493,600 shares after a transfer of 2 shares for every 10 shares held[3]. - The company distributed cash dividends totaling CNY 2,259,810,000 and increased its share capital by 301,308,000 shares in 2019[17]. - The company has 396,476,661 restricted shares that were released during the reporting period, with no new restricted shares added[172]. Risk Management - The company has not identified any significant risks that could materially affect its operations during the reporting period[5]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[4]. - The company has not faced any special major risks that could impact its production and operations during the reporting period[5]. - The company faces risks related to food safety, which could significantly impact its brand and operations if safety controls are not met[103]. - Increased competition in the walnut milk sector poses a risk as more brands enter the market, including well-known competitors like Yili and Mengniu[105]. - Changes in consumer preferences could affect the demand for plant protein beverages, including walnut milk, which is becoming a mainstream category[106]. - The COVID-19 pandemic has led to a decrease in market demand, prompting the company to enhance promotional efforts and accelerate new product launches[107]. Governance and Compliance - The company received a standard unqualified audit report from its accounting firm, indicating the financial report's accuracy and completeness[2]. - The company has confirmed that all board members attended the board meeting, ensuring governance compliance[2]. - The company has not provided any guarantees that violate regulatory decision-making procedures[5]. - The company has established measures to compensate for the dilution of returns expected from the initial public offering[118]. - The company ensures that any expenses incurred by its directors are necessary for fulfilling their responsibilities and will not use company assets for unrelated investments[118]. - The company emphasizes strict adherence to regulations regarding share transfers by its directors and senior management[116]. Market Position and Strategy - The company has established a strong market presence in the walnut milk sector, being the largest producer and seller in China, with its brand recognized as a "Chinese famous trademark"[34]. - The company’s main products include walnut milk and other plant protein beverages, with a focus on health and nutrition, catering to a growing consumer preference[26]. - The company operates in the encouraged category of the plant protein beverage industry, which has significant market potential due to increasing consumer demand[32]. - The company has expanded its market reach through both self-built production bases and contracted processing arrangements across various regions[29]. - The company aims to strengthen its leading position in the plant protein beverage industry, focusing on walnut milk beverage development and expanding its market share[101]. Research and Development - R&D expenses increased by 163.71% to approximately 56.6 million yuan, driven by enhanced technology innovation and new product development[50]. - The company has established the "5·3·28" production process, which includes 5 patents, 3 unique technologies, and 28 procedures, ensuring high product quality[36]. - The full walnut CET cold extraction technology has increased the utilization rate of walnut protein and fat to over 97%, enhancing the product's taste and nutritional value[36]. - The number of R&D personnel was 305, making up 13.94% of the total workforce[60]. Environmental Responsibility - The company has implemented strict environmental protection measures, ensuring that pollutant emissions meet national standards without any violations or penalties during the reporting period[163]. - The company’s wastewater emissions in 2019 were 37.2 tons/year for COD and 5.4 tons/year for ammonia nitrogen, both within the regulatory limits[158]. - The company has obtained environmental protection approvals for all its projects, with the latest pollution discharge permit valid until December 31, 2019[161]. - The company actively engages in social responsibility by supporting walnut procurement in approximately 60 poverty-stricken counties, enhancing local agricultural development[153]. Shareholder Information - The largest shareholder, Yao Kuizhang, holds 223,040,162 shares, representing 21.15% of the total shares, and is also the actual controller of the company[180]. - Yao Kuizhang and his associated party, YZ Investment Co., Ltd., collectively hold 39.50% of the company's shares[180]. - The total number of ordinary shareholders as of the end of the reporting period is 26,047, an increase from 24,811 at the end of the previous month[175]. - The top ten shareholders hold a significant portion of the company's shares, with the top two shareholders alone holding over 39%[176]. Employee and Management Structure - The number of employees in the parent company is 1,626, while the number of employees in major subsidiaries is 562, totaling 2,188 employees[200]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 3.8975 million yuan[196]. - The company has a diverse board with members having extensive experience in the beverage industry, enhancing strategic decision-making capabilities[189].