Securities code: V V Food & Beverage Co.Ltd(600300) securities abbreviation: St Weiwei Announcement No.: pro 2022006 V V Food & Beverage Co.Ltd(600300)
Announcement of profit distribution plan in 2021
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
● distribution ratio per share: cash dividend of RMB 0.30 (including tax) for every 10 shares.
● the profit distribution is based on the total share capital registered on the equity distribution registration date minus the shares in the company’s special securities repurchase account. The specific date will be specified in the equity distribution implementation announcement.
● if the total share capital of the company changes before the equity registration date of equity distribution, it is proposed to maintain the distribution proportion per share unchanged, adjust the total distribution accordingly, and announce the specific adjustment separately.
● the proportion of cash dividends in this year is less than 30%, mainly because: in order to strengthen and refine the main business and accelerate the transformation and upgrading of enterprises, the company will continue to strengthen capital investment; The company has major capital expenditure arrangements and large capital demand; The company’s relevant project construction and production workshop technical transformation projects are advancing in an orderly manner, the company’s working capital demand will continue to grow, and the company must invest a large amount of its own working capital to support the development of the company; The company needs to retain a certain proportion of funds to ensure the smooth implementation of strategic planning and enhance the ability to resist risks.
● the profit distribution plan has been deliberated and approved at the 7th Meeting of the 8th board of directors of the company and needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation.
1、 Contents of profit distribution plan
Audited by Lixin Certified Public Accountants (special general partnership), as of December 31, 2021, the net profit attributable to the shareholders of the listed company in the consolidated statements of the company in 2021 was 22330469371 yuan, the net profit of the parent company was 17920423914 yuan, and the undistributed profit at the end of the year was 41114578257 yuan. According to the resolution of the 7th Meeting of the 8th board of directors, in 2021, the company will distribute profits based on the total share capital registered on the equity distribution registration date minus the shares in the special securities account for repurchase of the company. The profit distribution plan is as follows: the company plans to distribute cash dividends of RMB 0.30 (including tax) for every 10 shares to all shareholders (except the special securities account for repurchase of the company). As of December 31, 2021, the total share capital of the company was 1.672 billion shares. After deducting 54857820 shares of the company in the company’s special securities repurchase account, the cash dividend to be distributed in 2021 was 4851426540 yuan (including tax), accounting for 21.73% of the net profit attributable to the common shareholders of the listed company in the company’s consolidated statements. The final actual total distribution shall be calculated based on the total number of shares entitled to participate in this equity distribution on the equity registration date. This year, the company does not convert the capital reserve into share capital and does not give bonus shares.
If, from the date of disclosure of this announcement to the date of equity distribution and equity registration, the total share capital of the company changes due to the conversion of convertible bonds into shares / share repurchase / equity incentive grant, share repurchase and cancellation / major asset restructuring, share repurchase and cancellation, the company plans to maintain the distribution proportion per share unchanged, adjust the total distribution accordingly, and will announce the specific adjustment separately.
The profit distribution plan needs to be submitted to the general meeting of shareholders for deliberation.
2、 Description of cash dividend ratio less than 30% in this year
(I) industry situation and characteristics of the company
Soybean milk products have a broad and good mass base. With the upsurge of consumption upgrading, “health” has become a common demand of consumers. The growth trend of China’s soybean milk consumption demand has appeared, the growth rate of the industry has accelerated significantly, the market prospect is good, major consumption giants and cross-border capital have entered the market one after another, and the market competition has further intensified, which is conducive to the overall expansion of the soybean milk market, Unleash great potential.
China is the largest grain producer and the largest grain consumer. With the continuous and in-depth promotion of the structural reform on the grain supply side, the market-oriented reform of China’s grain collection and storage system has achieved remarkable results, and the grain industry economy has entered a new stage of development. The 14th five year plan and the long-term goal outline for 2035 propose to improve the quality, efficiency and competitiveness of agriculture, take ensuring national food security as the bottom line, and improve the agricultural support and protection system; We should adhere to the strictest farmland protection system and deeply implement the strategy of “storing grain in the land and technology”; We should promote high-quality grain projects. In this context, as an important cornerstone of national food security, the food industry is also in a major opportunity period of transformation and upgrading and upgrading.
In order to seize the development opportunities of the industry, the company needs to invest funds for strategic layout.
(II) development stage of the company and its own business model
The company is mainly engaged in the R & D, production and sales of soybean milk powder, plant protein beverage (liquid soybean milk), dairy products, tea and other products, as well as grain acquisition, storage, trade and processing. Adhering to the concept of health and adhering to the spirit of ingenuity, the company has continued to intensively cultivate the field of soybean milk for more than 30 years. “Weiwei soybean milk, happy and happy” is a household name, “Weiwei” brand is deeply rooted in the hearts of the people, “Weiwei” products are widely favored, and Weiwei soybean milk is a landmark product in the industry. Over the years, the company has always maintained the leading position in the industry, and its production and sales volume has ranked first in the industry for many consecutive years. As the “king of plant protein” and “king of soybean milk”, soybeans have broad market prospects. Looking forward to 2022, facing the increasingly fierce market competition, the company needs to maintain sufficient funds to ensure R & D investment, enhance technical reserves, improve manufacturing capacity, expand sales team and enhance market popularity, so as to continuously improve its competitiveness in the industry.
(III) profitability and capital demand of the company
As of December 31, 2021, the net profit attributable to the shareholders of the listed company in the consolidated statements of the company in 2021 was 22330469371 yuan, the net profit of the parent company was 17920423914 yuan, and the undistributed profit at the end of the year was 41114578257 yuan. In 2021, it is proposed to pay a cash dividend of RMB 4851426540 (including tax), accounting for 21.73% of the net profit attributable to the common shareholders of the listed company in the consolidated statements of the company. The final actual total distribution shall be calculated based on the total number of shares entitled to participate in this equity distribution on the equity registration date. In recent years, with the rapid growth of China’s great health industry, the growth trend of China’s soybean milk consumption demand has appeared, and the growth rate of the industry has accelerated significantly. For the future business development of the company, the company needs to continuously increase capital investment in R & D investment, laboratory construction, equipment transformation and upgrading, technical personnel reserve, innovation and creation, etc.
(IV) reasons for the low level of cash dividends of the company
In order to strengthen and refine the main business and accelerate the transformation and upgrading of enterprises, the company will continue to strengthen capital investment; The company has major capital expenditure arrangements and large capital demand; The company’s relevant project construction and production workshop technical transformation projects are advancing in an orderly manner, the company’s working capital demand will continue to grow, and the company must invest a large amount of its own working capital to support the development of the company; The company needs to retain a certain proportion of funds to ensure the smooth implementation of strategic planning and enhance the ability to resist risks, so as to better safeguard the long-term interests of all shareholders and ensure the sustainable development of the company.
(V) the exact purpose of retained undistributed profits and the estimated income of the company
For the retained undistributed profits, the company will continue to apply them to the development of its main business, actively promote the implementation of development strategy and support the continuous development of business, so as to meet the needs of the company’s production and operation, R & D innovation and team expansion, further improve the company’s profitability and repay the majority of investors with better business performance.
3、 Decision making procedures performed by the company
(I) convening, deliberation and voting of the board meeting
The company held the 7th Meeting of the 8th board of directors on March 3, 2022. With 9 affirmative votes, 0 abstention votes and 0 negative votes, the company deliberated and adopted the profit distribution plan of the company in 2021, and agreed to submit the proposal to the 2021 annual general meeting of shareholders of the company for deliberation.
(II) opinions of independent directors
The independent directors of the company expressed the following opinions on the company’s profit distribution plan for 2021: the profit distribution plan for 2021 complies with the company’s cash dividend policy and relevant laws and regulations, takes full account of the company’s future capital needs and the actual situation of the company, and can take into account the long-term interests of the company, the overall interests of all shareholders and the sustainable development of the company, There are no circumstances that harm the interests of shareholders. We agree to the profit distribution plan and agree to submit it to the general meeting of shareholders for deliberation.
3、 Relevant risk tips
(I) analysis of the impact of cash dividends on earnings per share, cash flow status and production and operation of listed companies this profit distribution plan combines the company’s development plan, future capital demand and other factors, and will not have a significant impact on the company’s operating cash flow, normal operation and long-term development.
(II) description of other risks
The profit distribution plan can only be implemented after being submitted to the 2021 annual general meeting of shareholders of the company for deliberation and approval.
It is hereby announced.
V V Food & Beverage Co.Ltd(600300) board of directors
March 5, 2002
