Ganso(SH:603886)2020-04-16 16:00Financial Performance - In 2019, the company achieved a net profit of CNY 247,883,634.18, with a net profit attributable to shareholders of CNY 247,768,136.84, representing a decrease of 2.38% compared to the previous year[4]. - The total operating revenue for 2019 was CNY 2,222,668,088.36, reflecting a year-on-year increase of 12.68%[21]. - The net cash flow from operating activities was CNY 341,199,524.52, which is a decrease of 6.60% from the previous year[21]. - The company's total assets increased by 8.56% year-on-year, reaching CNY 2,392,749,966.68 by the end of 2019[21]. - The net assets attributable to shareholders rose to CNY 1,491,835,545.73, marking a 6.67% increase compared to the end of 2018[21]. - Basic earnings per share for 2019 was CNY 1.03, a decrease of 2.83% compared to CNY 1.06 in 2018[22]. - The weighted average return on equity decreased to 17.17% in 2019 from 19.15% in 2018, a decline of 1.98 percentage points[22]. - The company reported a decrease in net profit after deducting non-recurring gains and losses, which was CNY 211,493,882.35, down 6.23% from the previous year[21]. Dividend Policy - The company plans to distribute a cash dividend of CNY 12 per 10 shares, totaling CNY 28,800,000[4]. - For 2019, the cash dividend per 10 shares was 11.3 RMB, totaling 288 million RMB distributed to shareholders[132]. - The company plans to implement a cash dividend policy, distributing at least 40% of the distributable profits in a profitable year[129]. - In a mature stage without major capital expenditure, the cash dividend proportion should be at least 80% of the profit distribution[129]. Market and Industry Insights - The baking industry in China reached a market size of approximately $32.635 billion in 2018, ranking second globally[45]. - The annual compound growth rate of China's baking food consumption from 2011 to 2017 was 11.9%, significantly higher than the U.S. (2.2%) and Japan (0.11%)[45]. - The baking industry in China is expected to continue growing, with increasing consumer demand for healthier and more personalized products[47]. - The per capita consumption of baked goods in China was about 7.4 kg in 2018, significantly lower than in Germany (68.8 kg), the USA (56.2 kg), and Japan (51.8 kg), indicating substantial growth potential[94]. - The competitive landscape in the baking industry is intensifying, with a shift towards brand consumption and high-end products[108]. Product Development and Innovation - The company’s main business remains focused on the research, production, and sales of various baked goods, with over 100 product categories[29]. - New product introductions in 2019 included pork jerky, sandwiches, and various flavored rice dumplings[30]. - The company has applied for multiple patents, including for a low-sodium baked nut mooncake and a low-temperature baked egg yolk pastry, showcasing its commitment to innovation[53]. - The company emphasizes health and quality in its product offerings, adhering to a strict supplier management system[39]. - The company is focused on product innovation, launching new flavors and upgrading packaging to meet diverse consumer preferences and seasonal demands[114]. Operational Strategy - The company employs a "central factory + retail" operational model to ensure product quality and safety[37]. - The company has established a supply chain center for integrated management of planning, procurement, warehousing, and logistics[39]. - The company aims to expand its market presence by continuously innovating and creating demand in the baked goods sector[29]. - The company has implemented a direct sales strategy, with over 83% of total revenue coming from direct store sales[78]. - The company plans to expand its store network through a combination of direct sales and franchising, optimizing existing structures to increase market share[119]. Corporate Governance and Compliance - The company’s financial report received a standard unqualified audit opinion from KPMG Huazhen[7]. - The company has established a talent evaluation mechanism to identify and train internal talent, enhancing core competitiveness[124]. - The company has a structured approach to dividend distribution, requiring approval from independent directors and the supervisory board[129]. - The company will ensure compliance with relevant laws and regulations regarding share repurchase and stabilization measures[138]. - The company has established a plan to address any potential conflicts of interest arising from its controlling shareholder status[137]. Social Responsibility - The company has established a social responsibility program, "Star Wish," to support underprivileged children, fostering a connection between the company and the community[118]. - The company visited and provided support to over 100 children through the "Star Wish" program in 2019, expanding its outreach to regions including Sichuan, Jiangsu, Zhejiang, Guangxi, and Hubei[172]. - The "Star Wish" program organized multiple large-scale charity events throughout the year, including activities in Shanghai and donations in Daliang Mountain, Sichuan[172]. - The company plans to further expand the "Star Wish" program in 2020, aiming to increase the number of supported children and organize more impactful charity events[172]. Financial Management - The company has engaged in various entrusted financial management activities, with a total amount of 4,000.00 million RMB in a principal-protected investment yielding an annualized return of 4.00%[167]. - The company has a total of 14,000.00 million RMB in principal-protected investments with an annualized return of 3.60%, generating an actual return of 502.62 million RMB[168]. - The company has a total of 10,000.00 million RMB in structured deposits with an annualized return of 3.70%, yielding an actual return of 375.14 million RMB[169]. - The company has a total of 118,791,000 ordinary shares, with no changes in the share capital structure during the reporting period[176]. - The largest shareholder, Yuan Zu International Limited, holds 49.50% of the total shares[181].