Yanghe(SZ:002304)2021-04-28 16:00Financial Performance - The company's operating revenue for 2020 was CNY 21,101,051,131.79, a decrease of 8.76% compared to CNY 23,126,476,885.07 in 2019[11] - The net profit attributable to shareholders for 2020 was CNY 7,482,228,633.63, reflecting a slight increase of 1.35% from CNY 7,382,822,726.87 in 2019[11] - The net cash flow from operating activities decreased by 41.47% to CNY 3,978,790,835.80 from CNY 6,797,891,871.41 in the previous year[11] - The basic earnings per share for 2020 was CNY 4.9843, up 1.74% from CNY 4.8991 in 2019[11] - The total assets at the end of 2020 were CNY 53,866,259,306.59, an increase of 0.77% from CNY 53,455,037,840.98 at the end of 2019[11] - The weighted average return on equity for 2020 was 20.20%, down from 21.21% in 2019[11] - The net profit after deducting non-recurring gains and losses for 2020 was CNY 5,652,068,941.98, a decrease of 13.79% from CNY 6,555,890,029.81 in 2019[11] - The company reported a net asset attributable to shareholders of CNY 38,484,583,983.54 at the end of 2020, an increase of 5.41% from CNY 36,508,835,491.47 at the end of 2019[11] - The total revenue decreased by 8.24% to CNY 20.334 billion, with a gross profit margin of 74.21%[29] - The revenue from high-end liquor was CNY 17.648 billion, a decrease of 7.15% year-on-year, while ordinary liquor revenue was CNY 2.687 billion, down 14.86%[27] Cash Flow and Investments - The company achieved a 329.77% increase in net cash and cash equivalents, totaling ¥2,943,041,513.62, due to reduced investment in financial products[52] - Operating cash inflow decreased by 22.93% to ¥21,900,973,449.03, while net cash flow from operating activities fell by 41.47% to ¥3,978,790,835.80[51] - Investment activities generated a net cash inflow of ¥4,472,834,784.56, a significant increase of 445.87% compared to the previous year[52] - The company reported investment income of ¥1,206,683,362.49, accounting for 12.21% of total profit[53] - The company has allocated 20,000 million for the Zhongrong Trust project, with a cash flow of 3,028.38 million and a return rate of 8.20%[100] Market Position and Strategy - The company maintained a strong market position, ranking among the top three in revenue and profit within the white liquor industry[17] - The company has a unique competitive advantage with two famous Chinese liquor brands and six well-known trademarks, enhancing its brand value[23] - The company has established a robust marketing network that penetrates all prefecture-level cities across the country, laying a solid foundation for future market expansion[24] - The company implemented a dual-brand strategy and optimized its marketing management system to enhance sales performance[25] - The company recognizes the risk of intensified market competition and plans to enhance its competitive capabilities through product structure optimization and market channel expansion[72] Research and Development - Research and development expenses increased by 62.59% to ¥260,094,291.03, driven by increased investment in the original liquor production base[46] - The number of R&D personnel rose by 38.64% to 549, with R&D investment amounting to ¥269,360,145.63, which is 1.28% of operating revenue[50] - The company continues to innovate in product quality, emphasizing a new style of soft and mellow liquor to meet diverse consumer demands[21] - New product launches are expected to contribute an additional 500 million RMB in revenue in 2021[108] Corporate Governance and Compliance - The company has established a clear governance structure, adhering to relevant laws and regulations, ensuring effective operation[166] - The company actively engages in investor relations, ensuring fair information disclosure and communication with shareholders[168] - The company has a robust internal control system, with regular audits to enhance governance and risk management[168] - The company has no significant accounting errors that require retrospective restatement during the reporting period[88] Social Responsibility and Sustainability - Jiangsu Yanghe Brewery Co., Ltd. invested CNY 12.26 million in wastewater treatment operations in 2020, processing 1.52 million tons of wastewater[127] - The company achieved a total pollutant discharge of 91.47 tons for COD, 1.52 tons for ammonia nitrogen, 2.00 tons for total phosphorus, and 35.06 tons for total nitrogen, all below national discharge standards[126] - The company has established emergency response plans for environmental incidents, with registrations filed with local environmental protection authorities[128] - Jiangsu Yanghe Brewery is committed to maintaining a robust financial strategy to support its growth objectives and enhance shareholder value[99][100][101][102][103] Shareholder Engagement and Dividends - The company plans to distribute a cash dividend of CNY 30 per 10 shares to all shareholders[3] - The cash dividend payout ratio for 2020 is 60.04% of the net profit attributable to ordinary shareholders, compared to 60.99% in 2019[79] - The company distributed a cash dividend of RMB 30.00 per 10 shares, totaling RMB 4,502,746,983 (including tax) for the 2019 fiscal year[76] - The company’s cash dividend policy has remained unchanged, ensuring compliance with regulations and protecting minority shareholders' rights[77]