Ligao Foods (SZ:300973)2021-04-27 16:00Financial Performance - The company achieved operating revenue of 1,809.69 million yuan in 2020, a year-on-year increase of 14.27%[81]. - The net profit attributable to shareholders reached 232.10 million yuan, reflecting a growth of 27.95% compared to the previous year[81]. - Total revenue for 2020 reached CNY 1,808,378,939.33, an increase of 14.26% compared to the previous year[90]. - Gross profit amounted to CNY 691,729,754.23, with a gross margin decrease of 7.29% year-on-year[90]. - Revenue from frozen baked goods was CNY 956,289,663.74, reflecting a growth of 29.50% year-on-year[90]. - The revenue from sauces increased by 27.21% to CNY 137,910,633.86, while costs surged by 52.87%[91]. - The company reported a significant increase in commissioned processing by 448.82%, primarily due to outsourcing some baking raw materials[99]. - The South China region generated CNY 645,258,872.99 in revenue, marking a 37.77% increase year-on-year[92]. - The direct sales model contributed CNY 392,415,740.10 in revenue, with a substantial growth of 57.69%[90]. - The revenue from frozen baked goods accounted for 52.84% of total revenue, up from 46.63% in 2019[106]. Risk Management - The company does not face significant risks that could affect its normal operations, but it acknowledges risks related to food safety, macroeconomic changes, consumer preferences, raw material price fluctuations, and distributor management[6]. - The company faces risks related to food safety, which could impact its brand image and product sales if not managed properly[159]. - The company is exposed to macroeconomic risks that could lead to decreased consumer demand, particularly due to economic slowdowns and external trade disputes[160]. - The company must adapt to changing consumer preferences to maintain its revenue growth, especially as its key products gain market recognition[161]. - The company is at risk of increased competition in the baking industry, necessitating improvements in R&D and marketing strategies to maintain market share[164]. - The company's inventory value accounted for 29.13% of current assets, posing a risk of inventory impairment if market competition intensifies or demand changes[168]. Product Development and Innovation - The company has developed unique and innovative product formulas, such as reducing moisture loss in pastry dough by 5%, enhancing product competitiveness[64]. - The company’s R&D efforts led to the successful launch of new products, such as the egg yolk pastry, which won an award at a national competition[58]. - The company has a strong R&D capability, launching over 50 new products and applications annually, and has received multiple patents and awards for its innovations[73]. - The company has developed production processes for both frozen baked semi-finished and finished products, covering various categories including frozen pastries and breads[148]. - The company aims to improve its market penetration by diversifying sales channels, including supermarkets, restaurants, and e-commerce platforms[146]. - The company plans to expand its product range to over 1,000 varieties, focusing on optimizing ingredients and introducing new flavors[150]. Marketing and Sales Strategy - The company has established a broad marketing network with 983 sales personnel and over 1,800 distributors, serving more than 50,000 end customers across 357 cities[59]. - The company has established diverse sales channels, including partnerships with well-known bakery chains and major supermarkets, which mitigates risks associated with reliance on a single channel[75]. - The company’s marketing network includes 983 sales personnel and over 1,800 distributors, covering all provinces and cities in China, which enhances product promotion and distribution efficiency[74]. - The company aims to deepen and broaden its marketing network, targeting lower-tier cities and rural markets to increase coverage[153]. Production and Operations - The company has established four production bases in key markets, with a total of 23 lines for baked goods and 33 lines for frozen baked goods, achieving an output exceeding 100,000 tons in 2020[85]. - The company has established large production bases in Guangzhou and Zhejiang, with advanced automated production lines for frozen baked goods[56]. - The company’s production strategy includes both in-house manufacturing and limited outsourcing, ensuring flexibility and responsiveness to market demands[40]. - The company’s production capacity utilization rates for cream, fruit products, and frozen baked goods were 83.65%, 80.88%, and 89.73% respectively in 2020[85]. Financial Commitments and Shareholder Relations - The company reported a profit distribution plan to distribute a cash dividend of 5 RMB (including tax) for every 10 shares to all shareholders, along with a stock bonus from capital reserves[6]. - The total cash dividend for 2020 is 84,670,000 yuan, with no shares distributed or capital reserves converted to shares[184]. - The company achieved a net profit of 232,095,144.33 yuan for the year, with undistributed profits of 395,657,574.26 yuan[181]. - The cash dividend payout ratio for 2019 was 28.00%, with a total cash dividend of 50,800,000 yuan[182]. Future Outlook and Strategic Goals - The company aims to become the "leading brand of baking food ingredients and frozen baked goods in China" as its long-term strategic goal[149]. - The company plans to establish six large production bases and four technology R&D centers across South China, East China, North China, and overseas within the next three years[150]. - The company intends to enhance its production capacity by expanding existing bases in Foshan, Zhejiang, and Henan, particularly for donuts, frozen cakes, and cream products[152]. - The company will invest in four major R&D centers in Guangdong, Zhejiang, Henan, and Japan to enhance its technical development capabilities[154]. Compliance and Governance - The financial report has been confirmed by the board of directors, supervisors, and senior management to be true, accurate, and complete[4]. - The company has implemented strict internal confidentiality measures to protect its proprietary recipes and processes from leakage[173]. - The company has committed to ensuring compliance with social insurance and housing fund contributions for all employees, with full liability for any penalties or back payments required by authorities[194].