Toly Bread(603866)2022-03-16 16:00Financial Performance - The company's operating revenue for 2021 was CNY 6,335,381,671.50, representing a 6.24% increase compared to CNY 5,963,004,180.87 in 2020[38]. - The net profit attributable to shareholders for 2021 was CNY 763,265,673.71, a decrease of 13.54% from CNY 882,839,001.61 in 2020[38]. - The net cash flow from operating activities for 2021 was CNY 1,013,779,179.83, down 7.95% from CNY 1,101,366,061.62 in 2020[38]. - The total assets at the end of 2021 were CNY 6,016,892,732.31, an increase of 5.84% from CNY 5,685,107,101.21 at the end of 2020[40]. - The basic earnings per share for 2021 were CNY 0.8026, a decrease of 15.61% compared to CNY 0.9511 in 2020[42]. - The weighted average return on equity for 2021 was 16.01%, down 5.97 percentage points from 21.98% in 2020[42]. - The company reported a net profit of CNY 162,788,253.06 in Q1 2021, with total operating revenue of CNY 1,326,819,821.26[46]. - The company experienced a net loss from non-current asset disposal of CNY 1,285,933.53 in 2021[49]. - The net profit attributable to shareholders for Q4 2021 was CNY 194,942,508.41, with operating revenue of CNY 1,671,911,680.71[46]. - The company's net assets attributable to shareholders at the end of 2021 were CNY 4,935,065,406.47, reflecting a 2.12% increase from CNY 4,832,787,895.42 at the end of 2020[40]. Dividend and Share Capital - The company plans to distribute a cash dividend of 6 CNY per 10 shares, totaling approximately 571.33 million CNY, which represents 74.85% of the net profit attributable to shareholders[7]. - The total share capital will increase from 952,213,783 shares to 1,333,099,296 shares due to a capital reserve transfer of 4 shares for every 10 shares held[7]. Audit and Compliance - The company has received a standard unqualified audit report from Rongcheng Accounting Firm[6]. - The board of directors has confirmed that all members attended the board meeting, ensuring the integrity of the annual report[5]. - The company has not experienced any non-operational fund occupation by controlling shareholders or related parties[9]. - There are no violations of decision-making procedures regarding external guarantees[9]. - The company has confirmed that there are no issues with the authenticity and completeness of the annual report by the majority of the board members[12]. Risk Management - The company has outlined potential risks in the management discussion and analysis section of the report[12]. - The report includes a forward-looking statement risk declaration, indicating that future plans do not constitute a commitment to investors[8]. - The company emphasizes the importance of investor awareness regarding investment risks associated with forward-looking statements[8]. Market and Product Development - The company is actively expanding into new markets, including Southwest and Xinjiang, while continuing to focus on East and South China[59]. - New product development includes items like rock cake, cheese bread, and cranberry slices to meet changing consumer preferences[60]. - The company is expanding its online sales presence through platforms like Tmall and JD, and has established a dedicated e-commerce team[60]. - The company plans to enhance customer service for key clients and develop customized products to strengthen strategic partnerships[59]. - The baking industry in China has seen steady growth, with increasing consumer awareness and demand for diverse and healthy baked goods[69]. - The company operates a "central factory + wholesale" model, primarily producing "Taoli" brand bread, mooncakes, and zongzi for traditional festivals[73]. - The company employs a flexible production model based on market demand, with centralized production for bread and seasonal production for mooncakes and zongzi[76]. Financial Assets and Investments - The company reported a fair value change gain of CNY 20,289,831.85 from trading financial assets and derivatives[55]. - The company's investment in community group buying has strengthened customer experience and increased sales[60]. - The company's investment activities saw a cash outflow of 2,937,170,829.81 CNY, a decrease of 45.23% compared to the previous period[132]. Cost and Revenue Analysis - The company's operating costs rose by 11.84% to CNY 4,670,262,656.90, compared to CNY 4,175,743,033.89 in the previous year[94]. - Research and development expenses increased by 82.78% to CNY 20,645,746.84, up from CNY 11,295,699.60 in the previous year[94]. - The sales volume of bread and pastries increased by 3.47% year-on-year, with a production volume of 358.50 million kg[113]. - The sales revenue from mooncakes grew by 13.54% year-on-year, reaching 133.43 million RMB[110]. - The sales revenue from zongzi (sticky rice dumplings) skyrocketed by 61.91% year-on-year, totaling 12.48 million RMB[110]. Strategic Partnerships and Market Position - The company has established stable partnerships with major retailers, including Yonghui and Walmart, to enhance market expansion[89]. - The company has maintained a strong brand influence, becoming one of the most popular bread brands in China, which has contributed to sustained sales growth[89]. - The company is committed to providing high-quality products at competitive prices, aiming to enhance its overall competitive strength in the market[73]. Regional Performance - The Northeast region contributed approximately ¥2.88 billion in revenue, with a gross margin of 26.30%, reflecting a decrease of 1.95 percentage points[163]. - The company has established production bases in 20 regions across the country by December 31, 2021, under a "central factory + wholesale" model, enhancing its economies of scale[92]. Future Outlook - The overall market for bread in China is expected to grow as consumer acceptance and recognition of bread as a healthy convenience food increases[153]. - The company anticipates that brands with strong safety, quality, and innovation will gain market share as lower-quality competitors exit the market[156]. - The marketing network and channel construction are expected to be key competitive factors in the future, with a focus on expanding presence across various regions[156].