Zhejiang Yiming Food (SH:605179)2021-04-16 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 132,441,770.64 for the year 2020[4]. - The company's operating revenue for 2020 was CNY 1,947,177,891.01, a decrease of 2.5% compared to 2019[20]. - Net profit attributable to shareholders for 2020 was CNY 132,441,770.64, down 23.88% from the previous year[20]. - The net profit after deducting non-recurring gains and losses was CNY 118,417,775.73, reflecting a decline of 26.31% year-on-year[20]. - The company's total assets increased by 73.64% to CNY 2,414,615,330.06 at the end of 2020 compared to the end of 2019[20]. - The weighted average return on net assets decreased by 12.07 percentage points to 18.22% in 2020[21]. - Basic earnings per share for 2020 were CNY 0.39, a decrease of 23.53% from 2019[21]. - The net cash flow from operating activities was CNY 210,272,254.86, down 29.43% from the previous year[20]. - The company reported a net loss of CNY 9,731,107.81 in the first quarter of 2020[23]. - The total net profit for the fourth quarter of 2020 was CNY 33,516,296.73[23]. - In 2020, the company achieved a total revenue of 1.947 billion yuan, a decrease of 2.5% compared to 2019, with a net profit of 132 million yuan, down 23.88%[51]. Dividend Policy - The board proposed a cash dividend of RMB 2.30 per 10 shares, totaling an expected distribution of RMB 92,230,000.00, which represents 69.64% of the net profit attributable to shareholders for 2020[4]. - The retained earnings will be carried forward to future years, with the dividend distribution accounting for 30.10% of the combined net profit for 2019 and 2020[4]. - The company has established a stable cash dividend policy, ensuring that cash dividends distributed each year will not be less than 20% of the distributable profits achieved in that year[147]. - The company did not propose any cash dividend distribution plan for the previous fiscal years 2018 and 2019[165]. - The profit distribution plan must be submitted to the shareholders' meeting for approval after being reviewed by the board of directors[160]. Risk Management - The company has disclosed potential risks in its prospectus, which investors should pay attention to[5]. - The company has faced risks related to product quality and food safety, with no administrative penalties reported during the reporting period[139]. - The company acknowledges the potential impact of major raw material price fluctuations on gross profit margins and overall business performance[145]. - The company recognizes the risk of large-scale livestock diseases affecting dairy production and consumer demand for dairy products[140]. - The company has faced challenges due to the COVID-19 pandemic, which has negatively impacted daily operations and product sales[142]. Operational Efficiency - The company has a commitment to ensuring the accuracy and completeness of its financial reports[3]. - The company operates under the name Zhejiang Yiming Food Co., Ltd. and is listed on the Shanghai Stock Exchange with the stock code 605179[15]. - The company has established a comprehensive supply chain model, integrating dairy farming, food processing, and retail management, ensuring a stable supply of high-quality fresh milk through long-term partnerships with suppliers[32]. - The company has a cold chain logistics system with over 300 refrigerated vehicles and seven distribution centers, ensuring the freshness and nutritional quality of products during transportation[41]. - The company’s production model utilizes a smart integrated information system to quickly convert demand data from retail outlets into production instructions, optimizing production efficiency[32]. Market Position and Strategy - The company’s market position is strengthened by its innovative retail model and comprehensive cold chain logistics, allowing it to respond quickly to consumer needs and market changes[36]. - The company’s dairy consumption per capita in China is significantly lower than that of developed countries, indicating substantial market growth potential[35]. - The company has established a strong brand presence through its commitment to fresh, healthy food and reliable service, positioning itself favorably against traditional dairy and bakery businesses[36]. - The company aims to maintain annual growth in market share and customer loyalty through brand, innovation, and channel development strategies[118]. - The brand strategy focuses on creating a differentiated brand image and developing unique products to drive sales growth, targeting a strong presence in the fresh and healthy food market[122]. Product Development and Innovation - The company introduced innovative products such as "Warm Yogurt" and "True Fresh Egg Milk," addressing consumer preferences for warm beverages and achieving national invention patents[45]. - The company has developed a professional food quality control system to meet high standards and avoid negative impacts on brand reputation[45]. - The company has established a unique performance evaluation system for various strains of bacteria used in yogurt production, enhancing product innovation[48]. - The company plans to invest in R&D to develop unique products that meet consumer demands for freshness and quality, focusing on key technologies in dairy processing[134]. Store Expansion and Sales Channels - The company expanded its store count by 157 in 2020, contributing to the stabilization of revenue despite the pandemic[51]. - As of December 31, 2020, the company established 1,763 milk bar stores in East China, including 519 direct-operated and 1,244 franchised stores[56]. - The company's non-store channel sales reached 46.516 million RMB, with distributor sales accounting for 24.676 million RMB and vending machine sales for 3.976 million RMB[58]. - Online sales through new channels like "Yiming Heart Selection" and "Community Group Purchase" generated 14.79 million RMB in 2020, showing rapid growth[58]. Financial Management - The financing cash flow net amount increased by 533.78% to CNY 815,645,536.41, primarily due to funds raised from the initial public offering[87]. - The company reported a significant increase in cash and cash equivalents by CNY 529,376,383.95, compared to a decrease of CNY 23,959,982.18 in the previous year[87]. - The company’s R&D investment totaled CNY 41,623,570.20, accounting for 2.14% of operating revenue[82]. - The company has implemented refined management practices to control costs, including public bidding for raw materials and improving raw material utilization rates[145].