Namchow Food(SH:605339)2022-03-31 16:00Financial Performance - The company achieved a consolidated net profit attributable to the parent company of RMB 368,404,867.86 in 2021[5]. - The company's operating revenue for 2021 was CNY 2,872,992,405.49, representing a year-on-year increase of 23.71% compared to CNY 2,322,400,921.55 in 2020[22]. - The net profit attributable to shareholders of the listed company in 2021 was CNY 368,404,867.86, an increase of 13.27% from CNY 325,248,460.31 in 2020[22]. - Operating profit for the company was 460.39 million RMB, an increase of 13.21% compared to the previous year[32]. - The total assets at the end of 2021 were CNY 4,120,479,532.54, a 42.44% increase from CNY 2,892,712,155.04 at the end of 2020[22]. - The net assets attributable to shareholders increased by 64.52% to CNY 3,198,592,393.23 at the end of 2021, compared to CNY 1,944,198,957.70 at the end of 2020[22]. - The basic earnings per share for 2021 was CNY 0.92, a 2.22% increase from CNY 0.90 in 2020[23]. - The weighted average return on equity for 2021 was 13.80%, a decrease of 3.34 percentage points from 17.14% in 2020[23]. Dividends and Profit Distribution - The total distributable profit for the parent company after accounting for legal surplus reserves and previous undistributed profits is RMB 549,562,986.49[5]. - A cash dividend of RMB 3.3 per 10 shares (including tax) is proposed, amounting to a total of RMB 141,125,955.96 to be distributed to shareholders[5]. - The company has a cash dividend policy that mandates a minimum of 10% of the distributable profit to be distributed as cash dividends if conditions are met[135]. Audit and Compliance - The company has received a standard unqualified audit report from KPMG Huazhen[4]. - The board of directors and senior management have ensured the authenticity, accuracy, and completeness of the annual report[3]. - The company has established a comprehensive set of internal regulations to ensure compliance with laws and protect shareholder rights[101]. - The company received a standard unqualified opinion from KPMG on the effectiveness of its internal control over financial reporting for the year 2021[141]. Market Expansion and Strategy - The company plans to continue expanding its market presence and investing in new product development to drive future growth[22]. - The company established a wholly-owned subsidiary in Singapore to expand into Southeast Asian markets, targeting countries such as Thailand, Myanmar, Indonesia, Vietnam, and Malaysia[34]. - The company plans to enhance its brand visibility through e-commerce platforms like Tmall, targeting home baking opportunities[95]. - The company aims to expand its customer base in the catering and tea beverage industries, responding to the evolving consumer environment and market trends[92]. Product Development and Innovation - The company launched a "Han Cake" cultural revival initiative, introducing specialized oil for Han Cake production[32]. - The company introduced high-end imported dairy products, including Fonterra butter and Kerry Group cheese, to meet the rising consumer demand for quality and safety[34]. - The company launched various new-style delicious pastries and high-quality product proposals, receiving positive feedback from multiple clients[34]. - The company plans to introduce new products in 2022, including South Qiao sweet oil and liquid oil, to meet the evolving market demands in the baking sector[93]. Risks and Challenges - The company has outlined potential risks in the management discussion and analysis section of the report[7]. - The company emphasizes the importance of investor awareness regarding the risks associated with forward-looking statements in the report[6]. - The ongoing COVID-19 pandemic poses risks to product demand, raw material supply, production, and receivables due to potential strict control measures in certain regions[98]. - The company is exposed to exchange rate risks, particularly with imports priced in USD and EUR; depreciation of the RMB could adversely affect procurement costs[98]. Corporate Governance - The governance structure includes a board of 6 members, with 2 independent directors, ensuring a clear division of powers and responsibilities[101]. - The company has held multiple shareholder meetings in 2021, with resolutions published on the designated website[104]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to CNY 18.95 million[116]. Research and Development - The company has 11 R&D projects that have entered mass production and 19 projects in various experimental stages, focusing on baking oils, cream, fillings, and frozen dough[42]. - The number of R&D personnel is 126, representing 8.9% of the total workforce[71]. - The company is investing in new technology development, allocating 50 million for R&D initiatives[108]. Environmental and Social Responsibility - The company achieved a 100% compliance rate in environmental monitoring across its facilities in Shanghai, Tianjin, and Guangzhou in 2021[144]. - The company implemented measures to reduce carbon emissions, including replacing old equipment, resulting in a reduction of 160.84 tons of CO2 per year[144]. - The company raised a total of 1.04 million RMB for flood relief efforts in Henan province following the July 2021 floods[147]. Related Party Transactions - The company reported a total of 36,048.81 million in non-operating fund transactions with related parties during the reporting period[175]. - The cumulative amount of non-operating fund transactions for the year reached 36,791.34 million[175]. - The company will ensure compliance with relevant laws and regulations during any share reduction activities[153]. Employee Management and Development - The total number of employees in the parent company is 413, while the main subsidiaries have 995 employees, totaling 1,408 employees[129]. - The company has implemented a training plan that ensures 100% completion of training programs based on core competencies in management and professional fields[133]. - The company has a structured incentive plan that includes short, medium, and long-term incentives to align employee performance with corporate goals[132].