WESTERN ANIMAL(300106)2022-04-27 16:00Financial Performance - The company's operating revenue for 2021 was CNY 1,127,956,763.43, representing a 37.50% increase compared to CNY 820,327,472.41 in 2020[19]. - The net profit attributable to shareholders for 2021 was CNY 14,408,910.20, up 20.62% from CNY 11,945,396.84 in the previous year[19]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 18,882,319.54, a significant increase of 270.28% from CNY 5,099,505.44 in 2020[19]. - The total assets at the end of 2021 were CNY 1,087,167,060.96, a 1.46% increase from CNY 1,071,526,903.21 at the end of 2020[19]. - The net assets attributable to shareholders increased by 2.49% to CNY 592,544,007.41 from CNY 578,135,097.21 in 2020[19]. - The basic earnings per share for 2021 were CNY 0.07, reflecting a 16.67% increase from CNY 0.06 in the previous year[19]. - The weighted average return on net assets was 2.18%, up from 1.81% in 2020[19]. - Total revenue from dairy products reached ¥86,503.19 million in 2021, with a gross margin of 18.39%, up from 16.12% in 2020[56]. - The revenue from the dairy products segment was CNY 865,031,861.84, accounting for 76.69% of total revenue, with a growth of 44.12% year-on-year[88]. - The feed segment generated revenue of CNY 213,587,100.24, which is 18.94% of total revenue, showing a year-on-year increase of 12.38%[88]. Cash Flow and Investments - The net cash flow from operating activities decreased by 40.44% to CNY 92,540,359.54 from CNY 155,385,601.50 in 2020[19]. - The company received government subsidies totaling CNY 6.71 million in 2021, which is an increase from CNY 4.17 million in 2020[25]. - The operating cash inflow for 2021 was ¥1,217,317,112.72, an increase of 24.10% compared to ¥980,908,802.25 in 2020[103]. - Investment cash inflow dropped by 96.41% to ¥1,046,393.62, with a net cash flow from investment activities of -¥32,836,223.41[103]. - The net cash flow from financing activities decreased by 784.36% to -¥26,241,173.23, attributed to the repayment of bank loans[104]. Market and Industry Trends - The dairy industry in China is expected to see a significant recovery in consumption growth, with low-temperature fresh milk demand increasing by over 25% in 2021[30]. - The overall dairy product market in China is projected to continue growing rapidly, driven by rising consumer incomes and changing consumption patterns[31]. - The average per capita dairy consumption in China is only one-third of the world average, indicating substantial growth potential for the dairy market[31]. - The dairy industry in China has seen a significant increase in market concentration, with leading companies gaining higher market shares due to rising industry barriers[38]. - The company operates in a market with increasing concentration, as larger firms gain market share through mergers and acquisitions, enhancing their control over supply chains[32]. Product Development and Innovation - The company is involved in various projects, including a CNY 2 million investment in infant formula production line upgrades, reflecting its commitment to expanding product offerings[25]. - The company has developed new technologies in dairy farming, including special feeding for high-yield cows and stress resistance, improving dairy farming efficiency[43]. - The company has developed a range of new dairy products, including high-calcium low-fat milk and various flavored yogurts, to meet consumer demand[51]. - The company is developing a functional low-temperature milk product aimed at expanding its consumer base, particularly for diabetic and weight-loss populations[102]. - New product development includes the launch of a premium dairy line, expected to contribute an additional 200 million CNY in revenue[72]. Risk Management and Compliance - The company faces various risks including product quality, market competition, and environmental protection risks[4]. - The approval requirements for new dairy processing projects are stringent, with northern enterprises needing a daily processing capacity of 500 tons for new projects[36]. - The company emphasizes the importance of R&D talent, continuously recruiting high-level professionals such as graduates and PhDs, and has established project cooperation with several universities and institutions[67]. - The company is enhancing its risk management and internal controls to address potential product quality issues[126]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[199]. Corporate Governance - The company held 4 shareholder meetings during the reporting period, reviewing 51 proposals, ensuring equal rights for all shareholders[138]. - The board of directors consists of 8 members, including 3 independent directors, and held 12 meetings to review 72 proposals, enhancing decision-making capabilities[139]. - The supervisory board, comprising 3 members, held 11 meetings and reviewed 65 proposals, ensuring effective oversight of the company's operations[140]. - The company has established an independent financial department with a complete accounting system and financial management policies[147]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate reporting to investors[142]. Employee and Community Engagement - The total number of employees at the end of the reporting period is 698, with 24 from the parent company and 674 from major subsidiaries[173]. - The company has a training plan that includes onboarding for new employees and various training sessions for middle management and technical staff throughout the year[175]. - The company actively engages in community promotion activities to enhance consumer experience and brand loyalty[58]. - The company has established a high-end talent recruitment mechanism to attract essential management, R&D, and sales personnel[121]. - The company is committed to improving customer relationships by providing technical support and after-sales services in the feed segment[52].