Securities code: 603102 securities abbreviation: Baihe stock Announcement No.: 2022014 Weihai Baihe Biotechnology Co., Ltd
Announcement on 2021 annual 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 ratio per share: it is proposed to distribute a cash dividend of 0.50 yuan per share (including tax).
● 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.
● 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 make a separate announcement on the specific adjustment.
1、 Contents of profit distribution plan
Audited by Rongcheng Certified Public Accountants (special general partnership), as of December 31, 2021, the distributable profit of the parent company was 53502271679 yuan. According to the resolution of the 14th meeting of the third board of directors, the company plans to distribute profits based on the total share capital registered on the equity distribution registration date in 2021. The profit distribution plan is as follows:
The company plans to distribute a cash dividend of 5 yuan (including tax) for every 10 shares to all shareholders. As of April 18, 2022, the total share capital of the company is 64000000 shares. Based on this calculation, the total cash dividend to be distributed is 32 million yuan (including tax), accounting for 21.62% of the net profit attributable to the common shareholders of the listed company in the consolidated statements.
If the total share capital of the company changes from the date of announcement and disclosure of this profit distribution plan to the date of equity distribution registration, the company plans to maintain the distribution proportion per share unchanged and adjust the total distribution accordingly. In case of subsequent changes in the total share capital, the specific adjustment will be announced 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
During the reporting period, the net profit attributable to the owner of the parent company was 14803923910 yuan. As of December 31, 2021, the distributable profit of the parent company was 53502271679 yuan, and the total cash dividend to be distributed by the company was 32 million yuan (tax included), accounting for less than 30% of the net profit attributable to the common shareholders of Listed Companies in the consolidated statements. The specific reasons are as follows:
(I) development stage of the company
Since 2020, covid-19 pneumonia has made consumers pay more attention to their own health, objectively promoted the development of the industry, and the operation of the company has shown a good development trend. However, on the other hand, we can also see that the influence of the company's independent brand business needs to be further improved compared with By-Health Co.Ltd(300146) , Xiamen Kingdomway Group Company(002626) and other competitors. At the same time, due to the repeated epidemic of covid-19 pneumonia, the sales growth of the company's independent brand business in offline channels such as pharmacies and supermarkets is slow. At this stage, the company urgently needs to increase investment in the operation of independent brand business to achieve rapid development, At the same time, it is also necessary to further strengthen internal accumulation and improve risk resistance to meet internal and external business challenges.
(II) profitability and capital demand of the company
During the reporting period, the company achieved an operating income of 6618744 million yuan, an increase of 14.45% over the same period of last year; The net profit attributable to the shareholders of the listed company was 148039200 yuan, a year-on-year increase of 16.46%; After deducting non recurring profits and losses, the net profit attributable to shareholders of listed companies was 134434200 yuan, a year-on-year increase of 14.62%. In order to effectively promote the smooth realization of the company's strategic objectives and business plans and ensure the sustainable development of the company, the company needs to ensure the capital demand for its own development, which is also conducive to enhancing the company's ability to give long-term and sustainable returns to investors.
(III) comply with the dividend return plan for three consecutive years (including the current year) after the company's A-share listing
The total cash dividends to be distributed by the company this time account for 21.62% of the net profit attributable to the common shareholders of the listed company in the consolidated statements, Comply with the "three consecutive years (including the current year) after the listing of the company's a shares" in the "dividend return plan for three consecutive years (including the current year) after the listing of the company" , after the company has fully reserved the statutory reserve fund and surplus reserve fund, if there is no major investment plan or major cash expenditure, the annual cash dividend distribution to shareholders shall not be less than 10% of the distributable profits realized in the current year. The accumulated cash dividends of the company for three consecutive years shall not be less than 30% of the annual distributable profits realized for three consecutive years (including the current year) after listing. 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, 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
At the 14th meeting of the third board of directors held on April 18, 2022, the company deliberated and adopted the proposal on the company's profit distribution plan in 2021 with 9 affirmative votes, 0 negative votes and 0 abstention votes.
(II) opinions of independent directors
The independent directors of the company have expressed independent opinions on the profit distribution plan for 2021. The independent directors believe that the profit distribution plan for 2021 complies with the provisions of relevant laws, regulations and the articles of association, and strictly implements the decision-making procedures of cash dividends. The profit distribution plan comprehensively considers the internal and external factors, the company's operation status, future development plan, future capital demand, the opinions of directors and the expectations of shareholders. There is no damage to the interests of the company and shareholders. We agree to this profit distribution plan.
(III) opinions of the board of supervisors
The ninth meeting of the third board of supervisors of the company deliberated and approved the proposal on the company's profit distribution plan for 2021. The board of supervisors held that the company's profit distribution plan for 2021 fully considered the sustainable development of the company and the reasonable return of shareholders, which was in line with the actual situation of the company and the relevant provisions on profit distribution in relevant laws, regulations and the articles of association, There is no situation that damages the interests of the company's shareholders, especially the minority shareholders.
4、 Relevant risk tips
This profit distribution plan has no significant adverse impact on the company's earnings per share, cash flow status and production and operation, and will not affect the company's normal operation and long-term development.
It is hereby announced.
Weihai Lily Biotechnology Co., Ltd. April 19, 2022
