Toly Bread(SH:603866)2021-03-23 16:00Financial Performance - The company's operating revenue for 2020 was CNY 5,963,004,180.87, representing a 5.66% increase compared to CNY 5,643,709,759.53 in 2019[30]. - The net profit attributable to shareholders for 2020 was CNY 882,839,001.61, a 29.19% increase from CNY 683,358,391.86 in 2019[30]. - The basic earnings per share for 2020 was CNY 1.3316, reflecting a 28.37% increase from CNY 1.0373 in 2019[34]. - The company's total assets at the end of 2020 were CNY 5,685,107,101.21, a 9.62% increase from CNY 5,186,043,398.64 at the end of 2019[32]. - The net cash flow from operating activities for 2020 was CNY 1,101,366,061.62, a 24.05% increase from CNY 887,834,094.10 in 2019[32]. - The weighted average return on equity for 2020 was 21.98%, an increase of 2.42 percentage points from 19.56% in 2019[34]. - The company reported a total profit of 46,655,319.26 RMB for the current period, compared to 23,397,920.05 RMB in the previous period, indicating a significant increase[40]. - The company achieved operating revenue of 5,963.00 million RMB in 2020, an increase of 319.29 million RMB, representing a growth of 5.66% compared to the previous year[71]. - Operating profit and total profit for the year were 1,126.71 million RMB and 1,137.69 million RMB, respectively, reflecting increases of 30.55% and 30.22% year-on-year[71]. Dividend and Capital Changes - The company plans to distribute a cash dividend of 10 CNY per 10 shares, totaling 680,152,702 CNY, which accounts for 77.04% of the net profit attributable to shareholders[7]. - The company will increase its total share capital from 680,152,702 shares to 952,213,783 shares through a capital reserve transfer of 4 shares for every 10 shares held[7]. - The company's total share capital as of December 31, 2020, was 680,152,702 shares[7]. Audit and Compliance - The company has received a standard unqualified audit report from Rongcheng Accounting Firm[6]. - The company’s financial report has been declared true, accurate, and complete by its responsible personnel[6]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[9]. - The company has not violated decision-making procedures for external guarantees[9]. Business Operations and Strategy - The company focuses on high-quality baked goods, primarily producing "Peach Li" brand bread, mooncakes, and zongzi, leveraging a "central factory + wholesale" business model[45]. - The production model is based on "sales-driven production," allowing flexibility in production plans according to market demand, with centralized production for bread[47]. - The company has established a comprehensive supplier evaluation system to ensure low procurement costs and has strategic partnerships with key suppliers[46]. - The company’s sales strategy includes direct sales to large chain supermarkets and distribution through wholesalers for smaller markets[51]. - The company aims to provide high cost-performance products, enhancing its competitive strength through strong brand influence and stable sales channels[45]. - The company has implemented a comprehensive quality control system, achieving ISO9001 and ISO22000 certifications, ensuring high product safety and quality standards[64]. - The company has focused on expanding its market presence in East and South China while refining its sales network in mature markets like Northeast and North China[73]. - The company quickly resumed production during the pandemic, ensuring timely product delivery to meet consumer demand, which positively impacted its market share[73]. - The company has continuously innovated its product offerings to meet changing consumer preferences, leveraging advanced production technology and unique processes[63]. - The company has participated in drafting industry standards, enhancing its credibility and influence within the baking industry[66]. Market Trends and Consumer Behavior - The baking industry in China has seen rapid growth since the late 20th century, driven by rising living standards and the introduction of Western food technologies[55]. - The market for baked goods is influenced by seasonal factors, with lower sales in the first quarter and higher sales in the fourth quarter, particularly around holidays[57]. - The company plans to enhance product differentiation by introducing products tailored to various consumer demographics and preferences[125]. - The marketing network and channel development will be a key competitive factor moving forward[126]. - The company anticipates an increase in brand consumption as market entry barriers rise, leading to the exit of lower-quality competitors[126]. - The overall market concentration in the domestic bread industry remains low, indicating intense competition and opportunities for growth for established brands[122]. Investment and Expansion - The company has been actively expanding its investments in various subsidiaries to enhance its market presence and operational capacity[134]. - The company increased its investment in Changchun Taoli by RMB 200 million, Qingdao Taoli by RMB 150 million, Quanzhou Taoli by RMB 150 million, Guangxi Taoli by RMB 100 million, and Hainan Taoli by RMB 40 million during the reporting period[134]. - The total investment in Sichuan Taoli was RMB 130 million, while the registered capital of Xi'an Taoli was reduced by RMB 40 million and Tianjin Taoli by RMB 68.4 million[134]. Regional Performance - Chengdu Taoli contributed over 10% to the company's net profit, with main business revenue of RMB 443.20 million and main business profit of RMB 131.50 million as of December 31, 2020[143]. - The overall performance of the companies indicates a strong profitability in several regions, while some locations are facing challenges with net losses[154][156][159][165].