Securities code: Zhongyin Babi Food Co.Ltd(605338) securities abbreviation: Zhongyin Babi Food Co.Ltd(605338) Announcement No.: 2022022 Zhongyin Babi Food Co.Ltd(605338)
Announcement on 2021 profit distribution plan
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 amount per share: cash dividend of 0.26 yuan (including tax) per a share.
● the profit distribution is based on the total share capital registered on the equity distribution registration date, and the specific date will be specified in the equity distribution implementation announcement.
● reasons why the cash dividend ratio is lower than 30% in this year:
With the steady improvement of the income level of Chinese residents, it has brought about consumption upgrading and industrial transformation, giving birth to the overall stable development trend of the food industry. The Chinese pastry frozen food industry in which the company is located is mainly sold in the chain brand breakfast consumption market, group meal consumption market and household consumption market. At present, the overall market presents the development trend of expanding the consumption scene of end C and increasing the penetration rate of end B. at present, the market demand space is huge. In order to seize the development opportunities of the industry and continue to maintain the leading position in the industry, the company needs to actively organize and mobilize various resources to improve the competitiveness and market share of the company. Therefore, the company needs to retain sufficient funds for working capital turnover and future development. In combination with the actual operating conditions of the company and the needs of balancing daily operation and long-term strategic development, the company plans to pay a cash dividend of 2.60 yuan per 10 shares in 2021 based on the principle of positive return to shareholders and benefit sharing, which significantly improves the level of cash dividend compared with 2020.
Meanwhile, as 1465628 million yuan of the company’s net profit in 2021 was indirectly held by Tianjin Junzheng investment management partnership (limited partnership) in Eastroc Beverage (Group) Co.Ltd(605499) (Group) Co., Ltd., resulting in the income from changes in fair value during the reporting period, the above shares were not sold or transferred during the reporting period and did not bring cash flow recovery, Affected by this, the proportion of cash dividends in the net profit attributable to shareholders of the parent company in this year is less than 30%.
1、 Contents of profit distribution plan
Audited by Rongcheng Certified Public Accountants (special general partnership), as of December 31, 2021, the parent company of the company realized a net profit of 29277124154 yuan in 2021, deducting the legal surplus reserve
2927712415 yuan, plus 54646218390 yuan of undistributed profit at the beginning of 2021, deducting 3968000000 yuan of cash dividend in 2020, the amount of profit available for distribution to shareholders at the end of 2021 is 77027630129 yuan. The board of directors of the company decided to distribute profits based on the total share capital registered on the equity registration date of equity distribution in 2021. The profit distribution plan is as follows:
The company plans to distribute a cash dividend of 2.60 yuan (including tax) to all shareholders for every 10 shares. As of December 31, 2021, the total share capital of the company is 248 million shares. Based on this calculation, the total cash dividend to be distributed is 6448000000 yuan (including tax). The amount of cash dividends in this year accounted for 20.54% of the company’s net profit attributable to shareholders of listed companies according to the consolidated criteria in 2021. In 2021, the company will not convert capital reserve into share capital, and will not give bonus shares. The remaining undistributed profits will be carried forward and distributed in subsequent years.
The profit distribution plan can be implemented only after it is submitted to the 2021 annual general meeting of the company for deliberation and approval. 2、 Description of cash dividend ratio less than 30% in this year
In 2021, the company realized a net profit of 31394850928 yuan attributable to the shareholders of the listed company, and the total cash dividend to be distributed was 6448000000 yuan, accounting for less than 30% of the net profit attributable to the shareholders of the listed company in 2021. The specific reasons are as follows:
(I) industry of the company
In recent years, with the steady increase of Chinese residents’ income level, consumption upgrading and industrial transformation have been brought about, giving birth to the overall stable development trend of the food industry. The Chinese pastry frozen food industry in which the company is located is mainly sold in the chain brand breakfast consumption market, group meal consumption market and household consumption market. At present, the overall market presents the development trend of expanding the consumption scene of end C and increasing the penetration rate of end B. The current market demand space of the company’s industry is huge. In order to seize the development opportunity of the industry and continue to maintain the leading position in the industry, the company needs to actively organize and mobilize various resources to improve the company’s competitiveness and market share.
(II) profitability and capital demand of the company
Unit: Yuan
Main accounting data 20212020 2019
Operating income 13754462329397509030383106397323673
Attributable to parent company
313948,509.28 175466,607.17 154719,930.52
The net profit of shareholders belongs to the parent company
1,908380,486.15 1,634111,976.87 714936,102.77
Net assets of
Total assets 25321732461119911429482696731992992
In 2021, the company’s operating revenue increased by 41.06% over the same period of the previous year, and the net profit attributable to the shareholders of the parent company increased by 78.92% over the same period of the previous year. The company has made good achievements in main business expansion, cost reduction and efficiency improvement, brand construction, information construction and talent reserve, and its organizational efficiency and profitability have been continuously enhanced. In combination with the company’s actual operating conditions and the needs of balancing daily operation and long-term strategic development, and after considering the factors such as retaining appropriate funds to ensure the company’s production and operation, expand the scale and improve the ability to deal with potential risks, the company, in line with the principle of positive return to shareholders and benefit sharing, has proposed a cash dividend plan for 2021: a cash dividend of 2.60 yuan per 10 shares, Compared with 2020, the cash dividend level has been significantly improved.
Meanwhile, as 1465628 million yuan of the company’s net profit in 2021 was indirectly held by Tianjin Junzheng investment management partnership (limited partnership) in Eastroc Beverage (Group) Co.Ltd(605499) (Group) Co., Ltd., resulting in the income from changes in fair value during the reporting period, the above shares were not sold or transferred during the reporting period and did not bring cash flow recovery, Affected by this, the proportion of cash dividends in the net profit attributable to shareholders of the parent company in this year is less than 30%.
(III) comply with the plan on dividend return for three years after the listing of the company
In 2021, the company distributed 6448000000 yuan of cash dividend (including tax), accounting for 20.54% of the net profit attributable to shareholders of listed companies according to the company’s consolidated criteria in 2021, It complies with the provisions of “if the company has no major investment plan or major cash expenditure (except for fund-raising projects), the profit distributed in cash in a single year shall not be less than 10% of the distributable profit realized in the current year, and the cumulative profit distributed in cash in the latest three years shall not be less than 30% of the annual distributable profit realized in the three years”.
The company’s dividend distribution plan can better take into account the return of shareholders and the needs of the company’s future sustainable development.
(IV) the exact purpose of retained undistributed profits and the estimated income of the company
The retained undistributed profits of the company will continue to be used for the development of the company’s main business, meet the needs of daily production and operation and strategic development, mainly invest in brand construction, R & D and sales of new products, vigorously expand existing business and broaden new business channels, layout new market areas, etc., so as to promote the implementation of the company’s development strategy, further improve 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 14th meeting of the second board of directors on April 7, 2022, and deliberated and adopted the proposal on profit distribution plan in 2021 with 9 votes in favor, 0 against and 0 abstention. This proposal needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation and approval.
(II) opinions of independent directors
1. The reason why the cash dividend accounts for less than 30% of the net profit attributable to the shareholders of the parent company:
(1) At present, the company is in the stage of rapid growth. The company needs to retain sufficient funds, seize the development opportunities of the industry, realize consumption upgrading and industrial transformation, and continue to maintain the leading position in the industry;
(2) Meanwhile, as 1465628 million yuan of the company’s net profit in 2021 was indirectly held by Tianjin Junzheng investment management partnership (limited partnership) in Eastroc Beverage (Group) Co.Ltd(605499) (Group) Co., Ltd., resulting in the income from changes in fair value during the reporting period, the above shares were not sold or transferred during the reporting period and did not bring cash flow recovery, Affected by this, the proportion of cash dividends in the net profit attributable to shareholders of the parent company in this year is less than 30%.
2. This profit distribution comprehensively considers the company’s actual operating conditions and the needs of balancing daily operation and long-term strategic development, and in line with the principle of positive return to shareholders and benefit sharing, the company plans to distribute a cash dividend of 2.60 yuan per 10 shares in 2021, which significantly improves the level of cash dividend compared with 2020. The plan is in line with the long-term interests of all shareholders, including minority shareholders, and there is no situation that damages the interests of minority shareholders. The deliberation and voting procedures of the profit distribution plan comply with the provisions of relevant laws, regulations and the articles of association. The independent directors unanimously agreed to the profit distribution plan and agreed to submit it to the 2021 annual general meeting of shareholders of the company for deliberation.
(III) opinions of the board of supervisors
The company held the 13th meeting of the second board of supervisors on April 7, 2022, and adopted the proposal on profit distribution plan in 2021 with 3 affirmative votes, 0 negative votes and 0 abstention. The board of supervisors believes that the profit distribution plan for 2021 prepared by the board of directors is in line with the actual situation of the company, the securities law, the guidelines for self discipline supervision of listed companies on Shanghai Stock Exchange No. 1 – standardized operation, the guidelines for supervision of listed companies No. 3 – cash dividends of listed companies (revised in 2022) and the relevant provisions of the articles of association, taking full account of the company’s profitability Factors such as cash flow status and capital demand, legal and standardized decision-making procedures are conducive to promoting the sustainable, stable and healthy development of the company and safeguarding the long-term interests of shareholders. 4、 Relevant risk tips
(I) this profit distribution plan combines the company’s development stage, 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) this 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. Please pay attention to the investment risks.
It is hereby announced.
Zhongyin Babi Food Co.Ltd(605338) board of directors April 9, 2022
