On the 23rd, Yihai Kerry Arawana Holdings Co.Ltd(300999) disclosed the annual report of 2021. The data shows that Yihai Kerry Arawana Holdings Co.Ltd(300999) achieved an operating revenue of 226225 billion yuan in 2021, with a year-on-year increase of 16.06%; The net profit attributable to shareholders of listed companies was 4.132 billion yuan, a year-on-year decrease of 31.15%. Since September 27, 2021, Yihai Kerry Arawana Holdings Co.Ltd(300999) share price has fallen by nearly 30%.
According to the annual report, Yihai Kerry Arawana Holdings Co.Ltd(300999) is a Shenzhen Agricultural Products Group Co.Ltd(000061) and food processing enterprise in China. It owns brands such as ” Yihai Kerry Arawana Holdings Co.Ltd(300999) “, “oliviland”, “Huji flower”, “xiangmanyuan”, “Haihuang”, “Fengyuan”, “Jinwei”, “Ruilong” and “Jiejin 100”. The main business is the R & D, production and sales of kitchen food, feed raw materials and oil technology products. It is mainly involved in oilseed pressing, oil refining, oil filling, special oil, oil technology, rice circular economy, corn deep processing, wheat deep processing, soybean deep processing, food raw and auxiliary materials, grain and oil technology research and development and other industries.
During the reporting period, Yihai Kerry Arawana Holdings Co.Ltd(300999) achieved an operating revenue of 226.2 billion yuan, a year-on-year increase of 16.1%; The total profit was 6.18 billion yuan, a year-on-year decrease of 30.9%; The net profit attributable to shareholders of listed companies was 4.13 billion yuan, a year-on-year decrease of 31.1%; After deducting non recurring profits and losses, the net profit attributable to shareholders of listed companies was 5 billion yuan, a year-on-year decrease of 43.2%. At the end of the reporting period, the total number of shareholders of Yihai Kerry Arawana Holdings Co.Ltd(300999) ordinary shares was 207296.
Yihai Kerry Arawana Holdings Co.Ltd(300999) said that based on the distributable profits in the parent company’s statements as of December 31, 2021, and based on the total share capital (5421591536 shares) after the company’s initial public offering, the company plans to distribute cash dividends of RMB 0.77 (including tax) to all shareholders for every 10 shares, with a total of RMB 41746254827. After the implementation of this profit distribution plan, the remaining undistributed profits of the company will be carried forward to subsequent years. At the same time, Yihai Kerry Arawana Holdings Co.Ltd(300999) mentioned that the company made profits during the reporting period and the profit available for shareholders of the parent company was positive, but no cash dividend distribution plan was proposed.
With regard to the reasons for the increase of kitchen food sales and income, but the decline of profits, Yihai Kerry Arawana Holdings Co.Ltd(300999) said that the production and operation costs of the company were higher than those in the same period last year due to the large increase of raw material costs. Although the company raised the selling price of some products, it did not fully cover the rise in raw material costs, and the profit decreased year-on-year. In addition, the intensified market competition and the factors of weak consumption have greatly affected the sales volume of the company’s medium and high-end retail products; At the same time, with the effective control of the epidemic in China during the reporting period, the recovery of China’s catering market and the gradual recovery of catering channels, the sales proportion of catering products with low gross profit margin in the product structure of the company’s kitchen food increased.
In addition, Yihai Kerry Arawana Holdings Co.Ltd(300999) mentioned that during the reporting period, on the one hand, due to the rise of market conditions, the income and profit increased, among which the profit of oil technology business increased significantly, but the soybean procurement and crushing volume decreased compared with the same period last year, and the crushing profit decreased; On the other hand, the derivative financial instruments for hedging soybean related businesses have incurred some losses, which are caused by avoiding the risk of price fluctuation of raw materials in the process of normal production and operation of the company, and are required for normal operation.
Yihai Kerry Arawana Holdings Co.Ltd(300999) also pointed out that the decline in net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was higher than that attributable to shareholders of listed companies, mainly due to the decrease in non recurring losses generated by derivative financial instruments that did not fully meet the requirements of hedge accounting in the reporting period.
Yihai Kerry Arawana Holdings Co.Ltd(300999) said that there were no major risks affecting the normal operation of the company. However, the risk factors that the company may face in its daily operation include 17 risks: industry competition risk, macroeconomic fluctuation risk, national edible vegetable oil industry policy change risk, raw material industry policy change risk, downstream demand fluctuation risk, raw material price fluctuation risk, high concentration risk of suppliers, hedging risk, food safety and quality control risk, business performance fluctuation risk and so on.
In the secondary market, the share price of Yihai Kerry Arawana Holdings Co.Ltd(300999) has fallen by 28.46% in nearly half a year since September 27, 2021. By the afternoon of March 23, the share price of Yihai Kerry Arawana Holdings Co.Ltd(300999) was reported at 49.9 yuan, up 0.91% compared with the previous trading day, and the market value was about 270.5 billion yuan.
