Milkground(SH:600882)2024-03-25 16:00Financial Performance - The net profit for the year was approximately 79.76 million, a decrease of 54% compared to 173.22 million from the previous year[14]. - The operating profit was reported at approximately 441.93 million, a significant recovery from a loss of 885.74 thousand in the previous year[14]. - The company reported an investment income of approximately 52.50 million, down from 59.05 million, indicating a decline of about 8.5%[14]. - The comprehensive income for the period shows a total loss of 71,385,878.46 RMB, reflecting a significant decline in profitability[25]. - The company reported a decrease in capital contributions amounting to 58,659,000.00 RMB, indicating reduced owner investments[25]. - The total profit distribution to owners or shareholders is recorded at -39,344,705.00 RMB, reflecting a reduction in dividends or distributions[25]. - The company achieved an annual revenue of 404,903.37 million RMB, representing a year-on-year decline of 16.16%[124]. - The net profit attributable to shareholders was 6,343.95 million RMB, down 53.90% compared to the previous year[124]. Assets and Liabilities - Total assets decreased from 7,442,886,257.24 to 6,832,507,412.83, a decline of approximately 8.2% year-over-year[9]. - Total liabilities decreased slightly from 2,560,269,103.49 to 2,529,963,685.80, a decrease of about 1.2%[10]. - The company reported a total current asset decrease from 4,379,133,030.89 to 3,708,329,974.67, a decline of about 15.3%[9]. - The total owner's equity at the end of the period is 3,713,996,143.58 RMB, with a decrease of 1,098,059,059.02 RMB compared to the previous period[26]. - The total amount of other comprehensive income is recorded at -154,002,336.80 RMB, contributing to the overall decline in equity[25]. Cash Flow - The net cash flow from operating activities improved significantly to approximately ¥279.15 million, compared to a negative cash flow of ¥204.84 million in the previous year[149]. - The net cash flow from investment activities was approximately ¥1.37 billion in 2023, compared to a negative cash flow of ¥1.60 billion in 2022[191]. Market and Revenue Trends - The cheese segment achieved revenue of 313,712.00 million CNY, a decrease of 18.91% compared to the previous year, with a gross profit margin of 98.68%, an increase of 2.74 percentage points year-on-year[68]. - Liquid milk business revenue was 33,380.71 million CNY, down 4.32% year-on-year, accounting for 8.27% of total revenue[69]. - The ready-to-eat nutrition series generated revenue of 190,162.28 million CNY, a decline of 23.93%, while the restaurant industrial series saw a 7.61% increase in revenue to 88,799.66 million CNY[77]. - The company experienced a decrease in revenue from home dining series products, which fell by 36.10% year-on-year to 34,750.07 million CNY[77]. - The revenue from cheese products amounted to approximately ¥3.14 billion, representing a decline of 18.91% compared to the previous year[152]. Strategic Initiatives - The company has plans for market expansion and new product development, although specific details were not disclosed in the call[14]. - The company aims to expand its cheese product matrix to meet consumer demand and enhance its market position[72]. - The company is focusing on enhancing its research and development capabilities to maintain its competitive edge in the dairy product sector[148]. - The company is actively pursuing market expansion and product innovation to adapt to changing consumer preferences and industry trends[145]. - The company has established a global procurement network covering Europe, America, and Oceania, enhancing its ability to manage raw material supply and price stability[123]. Operational Efficiency - The company has successfully implemented the SAP-PECDC system across various business modules, enhancing operational efficiency and real-time inventory management[112]. - The company has achieved significant improvements in its S&OP system, ensuring fresh product supply and enhancing operational efficiency[113]. - The company is committed to improving operational efficiency through the "Smart Miao Ke" initiative and enhancing its quality management system[137]. Product Development and Quality - The company emphasizes product quality and safety, implementing comprehensive quality management across the entire supply chain to ensure nutritious and delicious cheese products[32]. - The company has launched a quality management system, achieving certifications such as ISO 9001 and FSSC 22000 across all five factories, ensuring high product quality standards[113]. - The company launched new organic cheese products with ≥66% cheese content and 9.0g/100g high-quality milk protein, catering to diverse consumer needs[125]. Distribution and Marketing - The company has established a distribution network covering approximately 800,000 retail terminals with 5,036 distributors as of December 31, 2023[109]. - The company has expanded its e-commerce presence, strengthening its sales on platforms like Tmall, JD.com, and Pinduoduo[172]. - The company focuses on digital marketing strategies, utilizing platforms like WeChat and Douyin to enhance brand recognition and consumer engagement[104]. Challenges and Risks - The company’s main raw material costs increased compared to the previous year, impacting the gross profit margin of the cheese segment[68]. - The company’s reliance on a single customer or supplier did not exceed 50% of total sales or purchases, indicating a diversified customer and supplier base[187].