Financial Performance - In 2021, the total sales volume of raw milk increased by approximately 4.6% to 372,089 tons compared to 355,599 tons in 2020[9]. - Total revenue for the year reached RMB 1,776.5 million, representing a 14.3% increase from the previous year[9]. - The average selling price of raw milk during the year was approximately RMB 4,774 per ton, up about 9.2% year-on-year[9]. - The company reported a net profit of RMB 157.0 million, a decrease of approximately 73% compared to the previous year[9]. - The net profit for the year was RMB 157.0 million, a decrease of 72.8% compared to RMB 578.0 million in 2020[22]. - Gross profit increased to RMB 479.3 million, a 3.5% increase from RMB 463.3 million in the previous year, while the gross margin decreased from 29.8% to 27.0%[36]. - Other income and gains rose by 66.5% to RMB 73.1 million, up from RMB 43.9 million in the previous year, primarily due to increased government subsidies[39]. - The cash inflow from operating activities was RMB 720.1 million, compared to RMB 581.1 million in the previous year[47]. Production and Capacity - The average annual yield per cow increased by approximately 2.8% to 10.91 tons[9]. - The number of dairy cows increased by 14.7% to 79,566 as of December 31, 2021, up from 69,398 in the previous year[28]. - The average annual milk production per cow increased by 2.8% to 10.91 tons from 10.61 tons in 2020[25]. - The company plans to build two new farms in Heilongjiang Province to increase production capacity in response to rising demand for high-quality raw milk[22]. - The number of breeding cows increased from 35,128 to 36,290, ensuring a stable supply of high-quality raw milk[28]. Market Outlook - The outlook for 2022 predicts a continued shortage of raw milk, with stable upward trends in milk prices[13]. - The company plans to leverage its resource advantages to enrich its raw milk product offerings and strengthen its competitive position in the market[13]. - The total retail sales volume of dairy products in China is expected to grow from 31.1 million tons in 2020 to 33.3 million tons in 2021, with a compound annual growth rate of 5.7% projected until 2025[17]. Strategic Initiatives - The company aims to enhance product quality and operational efficiency through digitalization and modernization of breeding practices[10]. - The company plans to explore new business opportunities to increase profit growth points, leveraging its technological advantages and resource endowments[32]. - The company has completed the acquisition of several assets, including goat breeding facilities and land use rights for farms, to expand its business in the rapidly growing goat milk powder market[89]. Corporate Governance - The company has a strong governance structure with independent directors overseeing key committees, including the remuneration and audit committees[110]. - The board of directors is responsible for overseeing the management and overall performance of the group, ensuring necessary financial and human resources support[124]. - The company is committed to maintaining high standards of corporate governance, adhering to the Hong Kong Stock Exchange's corporate governance code[122]. - The board has adopted a diversity policy to enhance the effectiveness of its governance and decision-making processes[139]. - The company emphasizes the importance of risk management and internal control systems, ensuring management fulfills its responsibilities[146]. Employee and Management - The group had 1,903 employees as of December 31, 2021, an increase from 1,552 employees in 2020[86]. - The management team includes individuals with over 30 years of experience in the dairy industry, ensuring operational expertise[111]. - The executive director and CEO has over 27 years of experience in the dairy farming industry[95]. - The financial director has 17 years of experience in the domestic raw milk industry[97]. Financial Policies and Shareholder Communication - The company has adopted a dividend policy that is subject to the board's discretion, considering future operations, profitability, and overall financial condition[186]. - The company adopted a shareholder communication policy on November 7, 2013, to ensure that both individual and institutional shareholders can access balanced and understandable information regarding financial performance and strategic objectives[199]. - Shareholders can make inquiries or request publicly available information at any time, enhancing communication between the company and its investors[199].
原生态牧业(01431) - 2021 - 年度财报