Haixin Foods (SZ:002702)2021-04-20 16:00Financial Performance - The company's operating revenue for 2020 was CNY 1,605,751,408.05, representing a 15.92% increase compared to CNY 1,385,183,736.59 in 2019[18]. - The net profit attributable to shareholders for 2020 was CNY 71,020,533.43, a significant increase of 938.32% from CNY 6,839,937.67 in 2019[18]. - The net profit after deducting non-recurring gains and losses was CNY 59,656,566.33, up 5,447.96% from CNY 1,075,287.45 in 2019[18]. - The net cash flow from operating activities reached CNY 119,401,513.38, a 730.83% increase from a negative CNY 18,927,822.58 in 2019[18]. - The basic earnings per share for 2020 was CNY 0.1477, reflecting a 940.14% increase from CNY 0.0142 in 2019[18]. - The company achieved a sales revenue of 1.606 billion yuan, a year-on-year increase of 15.92%[44]. - The net profit for the period was 71.02 million yuan, representing a significant year-on-year growth of 938.32%[44]. - The sales proportion of mid-to-high-end products increased from 27.03% in 2019 to 33.25% in 2020, a rise of 6.22 percentage points[44]. - The average selling price per ton of products increased to 14,384.93 yuan, up 7.72% year-on-year[44]. - The company reported a significant increase in direct material costs for frozen fish and meat products, rising to ¥772,706,666.71, which is 63.86% of the operating cost, compared to 75.11% in 2019[67]. Business Operations - The company has not changed its main business since its listing, indicating stability in its operations[17]. - The company continues to engage in the production and sale of frozen fish and meat products, with no significant changes in its main business operations[28]. - The sales model primarily consists of distribution through dealers and direct supply to retail supermarkets, supplemented by special channels and e-commerce[29]. - The company acquired a 61% stake in Jiangsu Baiyao Fresh Food Co., enhancing its product offerings and market position[38]. - The company has established a comprehensive marketing network with over 30,000 terminal outlets across major cities, including partnerships with well-known retail chains like Walmart and Carrefour[41]. - The company’s product matrix includes frozen fish and meat products, frozen pastries, and ambient temperature products, with a focus on high-end market segments to avoid price wars in the low-end market[39]. - The company is positioned as a leading player in the frozen fish and meat product sector, with significant production capacity and market share[37]. Market Trends - The frozen food industry in China has maintained rapid growth, driven by consumer demand for convenience and nutrition, with expectations for continued growth due to rising income levels and urbanization[32]. - In 2020, the sales of frozen food on the Taobao and Tmall platforms reached RMB 12.13 billion, a 63% increase compared to 2019, highlighting a shift towards home consumption during the pandemic[33]. - The pandemic has shifted consumer focus towards food quality, hygiene, and safety, leading to changes in channel and product structures within the industry[33]. - The industry is expected to see further consolidation, with market share increasingly concentrated among leading companies with strong brand and operational capabilities[34]. Research and Development - The company has a strong R&D capability, with a unique national research center for fish paste products, allowing for innovative product development tailored to regional and seasonal preferences[39]. - Research and development expenses increased by 16.91% to ¥17,841,597.18, representing 1.11% of operating revenue[73]. - The number of R&D personnel increased by 18.45% to 122, with the proportion of R&D staff rising to 7.11% of total employees[73]. - The company introduced over 100 new products in various categories, including fish, leisure, rice, and vegetable dishes, enhancing product stability through material application and process optimization[72]. Cash Flow and Investment - Operating cash inflow increased by 41.55% year-on-year to approximately ¥1.85 billion, primarily due to increased cash received from sales of goods and services[75]. - Operating cash outflow rose by 30.50% year-on-year to approximately ¥1.73 billion, mainly due to increased cash payments for purchases of goods and services[75]. - Investment cash inflow decreased by 20.42% year-on-year to approximately ¥588.89 million, while investment cash outflow increased by 2.31% year-on-year to approximately ¥717.83 million, resulting in a net cash flow from investing activities of approximately -¥128.94 million[76]. - Financing cash inflow doubled year-on-year to approximately ¥52.34 million, primarily due to new short-term loans from banks during the pandemic[76]. - Net cash flow from financing activities increased by 214.28% year-on-year to approximately ¥27.47 million, also driven by new short-term loans[76]. Profit Distribution - The company reported a profit distribution plan of cash dividends of 0.5 yuan per 10 shares (including tax) based on 48.076 million shares[4]. - The total cash dividend paid in 2020 was CNY 24,038,000, which accounted for 33.85% of the net profit attributable to shareholders[124]. - The cash dividend for 2019 was also CNY 24,038,000, representing 351.44% of the net profit attributable to shareholders[124]. - The company has maintained a consistent cash dividend policy over the past three years, with no stock dividends or capital reserve transfers[122][123][125]. - The company approved a cash dividend of CNY 0.5 per 10 shares for the years 2018, 2019, and 2020, based on a total share capital of 48,076,000 shares[122][123][125]. Environmental and Social Responsibility - The company has a wastewater treatment system with a capacity of 1,500 m³/d, ensuring compliance with environmental standards[166]. - The total amount of chemical oxygen demand (COD) discharged by the company is 3.149 tons, meeting the required pollution discharge standards[165]. - The company has implemented a comprehensive environmental monitoring plan to ensure real-time monitoring of pollutants at major discharge points[167]. - The company participated in targeted poverty alleviation efforts, purchasing soy sauce and fish sauce worth 1.0472 million yuan from a local company[162]. - The company helped 46 registered impoverished individuals to escape poverty through various initiatives[164]. Governance and Management - The company has established a confidentiality system and signed non-disclosure agreements with all core technical personnel to mitigate the risk of talent loss and technology leakage[104]. - The company’s board of directors must propose a cash dividend plan if the company is profitable and has surplus after legal reserves and previous losses are accounted for[118]. - The independent directors hold positions in various other companies, indicating a diverse professional background[196]. - The company has a structured approach to determining the remuneration of its board members and senior management, ensuring alignment with company performance[197]. - The management team includes experienced professionals with backgrounds in economics and business management[191].