Fujian Sunner Development Co.Ltd(002299) 2021 Annual Report
Fujian Sunner Development Co.Ltd(002299)
Annual report for 2021
April 2022
Fujian Sunner Development Co.Ltd(002299) 2021 Annual Report
Letter to shareholders
Dear investors
Thank you for your support, trust and help to Shengnong all the time.
Since the outbreak of covid-19, the global business environment has been continuously challenged. In this complex context, we are “lucky”, which comes from our long-term efforts and accumulation. In this extraordinary period, Shengnong’s abundant cash flow reserves and the whole industrial chain have played a huge advantage. On the one hand, we have a large number of unused credit lines, and the financing cost is less than 3%, which is enough to support our stable production and operation in extraordinary times; On the other hand, the closed loop of the whole industrial chain enables us to achieve internal circulation and ensure that production and operation are not interrupted by external interference factors to the greatest extent. In 2021, we achieved a capital expenditure of 1.564 billion yuan. The construction and technological transformation and upgrading projects covered all links of the whole industrial chain, and added a number of breeding chicken farms, slaughterhouses and food deep-processing plants. Among them, eight food processing plants were completed within 21 years, and six broiler processing plants were completed and put into operation in early 22 years. At present, the company’s white feather chicken breeding capacity is close to 600 million feathers, and the total food deep-processing capacity built and under construction exceeds 433200 tons, ranking first in China. At the same time, through the strengthening of the construction of retail terminals in recent years, our brand influence has increased significantly, the revenue of retail business has increased significantly, and we have successfully created two large retail items with monthly sales of more than 10 million, namely “crispy fried chicken” and “duduji”. In the future, we will continue to increase investment, expand our retail business while realizing the steady growth of production capacity and output, and maintain the leading position of the company.
About the whole industrial chain of Shengnong
The whole industrial chain is the great advantage of Shengnong. The supporting operation mode of the whole industrial chain has effectively helped us smooth the industry cycle fluctuation. Compared with the whole industry, Shengnong has achieved a more stable gross profit margin level.
In December 2021, Shengze 901, a white feather broiler mating line independently developed by Shengnong, was approved and identified by the national livestock and poultry genetic resources committee, marking the birth of a breakthrough variety of white feather broiler with independent intellectual property rights in China. It also marks that Shengnong has completed the closure of the whole industrial chain and become a high-tech company that breaks the international monopoly. So far, the industrial chain we have built over 39 years has completely covered the self-developed seed sources Vertical production links such as self breeding, self incubation, self feeding, self slaughtering and chicken deep processing, as well as supporting links such as feed production and logistics transportation.
Under the uncertain changes of the external environment and under the background of the stock competition of China’s white feather broiler industry, relying on the complete supporting industrial chain, we have achieved no foreign necks, and can achieve systematic “preventable, controllable and traceable” on the premise of optimal cost, stabilize the supply of safe chicken products from farm to table, and continuously and stably ensure the development of the enterprise.
Fujian Sunner Development Co.Ltd(002299) 2021 Annual Report
About the future development of Shengnong
In 2021, we formulated the 14th five year plan of Shengnong, including continuing to expand the food deep processing sector, increasing the breeding scale to 1 billion feathers matching the future scale of the deep processing sector, arranging the upstream white feather broiler breeding market, improving Shengnong brand and building digital Shengnong. 2022 is the second year of Shengnong’s formal implementation of the 14th five year plan. We will continue to strive for business objectives.
We firmly lay the foundation for the sustainable growth of the company through contrarian investment. In 2022, we will continue to invest in capacity construction and build a number of ancestral and parental chicken farms, broiler farms and supporting feed plants and food deep-processing plants to further improve production capacity and output.
We are committed to further reducing our costs through management improvement. In 2022, we will work closely around the optimization of feed cost, further improvement of breeding efficiency and fine operation, so as to further reduce operating costs and improve operating efficiency.
We are committed to upgrading from industrial chain to value chain. “Fresh, cooked and branded” is our important development strategy. Food deep processing is our second development curve. We will continue to invest against the trend and continuously improve our business efficiency while increasing the market share of China’s chicken food deep processing.
We will give full play to the advantages of Shengnong to consolidate the leading position of the omni-channel layout of the food deep processing sector, focus on the development and integration of new products while strengthening the growth of key customers, constantly create strategic large single products and channel large single products, and continue to maintain the stable growth of all channels.
We will spare no effort to continuously invest in brand promotion and the upgrading of innovative marketing mode. In recent three years, the compound growth rate of our C-end has exceeded 70%, especially the online and new retail business has grown the fastest, with a compound growth rate of about 300% in recent three years. In 2021, our C-end business revenue accounted for more than 15% of the revenue of the deep processing sector, of which the sales revenue of online and new retail accounted for more than 50%. The newly launched “crispy fried chicken” and “duduji” products have also successfully achieved sales of more than 10 million yuan per month. In 2022, we will create more large retail products and let more Shengnong retail products enter thousands of households!
On the social responsibility of Shengnong
What makes us proud is not only the growth of our business in recent years, but also the fulfillment of our social responsibility while achieving growth.
As a listed public enterprise, we attach great importance to investor feedback. Since its listing, Shengnong has completed a total of 5.376 billion yuan of dividends, accounting for 59.39% of the company’s accumulated net profit attributable to its parent company. This year, Shengnong plans to continue to share earnings with shareholders. We expect to distribute 372 million yuan of cash dividends to shareholders, accounting for 82.98% of the company’s net profit attributable to the parent company in the previous year.
Fujian Sunner Development Co.Ltd(002299) 2021 Annual Report
At the same time, providing employment and safeguarding the interests of employees and ensuring the rights and interests of suppliers, customers and consumers are also one of our important missions; Environmental protection and sustainable development are also our bounden responsibilities; We have always responded positively to various public welfare undertakings such as “construction, education, poverty alleviation, disaster resistance and medical treatment”; From targeted poverty alleviation with embedded industries to rural revitalization, we have always stood in the front line.
epilogue
Looking forward to the foreseeable future, we will still be in a complex and changing environment, but our responsibilities and commitments will not change. Adhere to quality and integrity, build a global advanced industrial system with a long-term concept, continue to promote technological innovation, create value for customers with high-quality products and services, build a beautiful industrial ecosystem and achieve common prosperity and development.
Fujian Sunner Development Co.Ltd(002299)
Fu Xiangxiang, general manager
April 20, 2002
Fujian Sunner Development Co.Ltd(002299) 2021 Annual Report
Section I important tips, contents and definitions
The board of directors, the board of supervisors and the directors, supervisors and senior managers of the company guarantee that the contents of the annual report are true, accurate and complete without false records, misleading statements or major omissions, and bear individual and joint legal liabilities.
Fu Guangming, the person in charge of the company, Lin Qiqing, the person in charge of accounting, and Xie Yixing, the person in charge of the accounting organization (Accounting Supervisor), declare that they guarantee the authenticity, accuracy and completeness of the financial report in this annual report.
All directors have attended the meeting of the board of directors to consider this report.
After the share repurchase plan is approved by the board of directors, the dividend distributed to all shareholders on the date of share repurchase (excluding 3.00 yuan of registered capital tax) shall be taken as the base of the company’s share capital after the share repurchase plan is implemented, and the dividend distributed to all shareholders on the date of share repurchase is approved by the board of directors (excluding 3.00 yuan of registered capital tax).
Fujian Sunner Development Co.Ltd(002299) 2021 Annual Report
catalogue
Section I important tips, contents and definitions Section 2 company profile and main financial indicators Section III Management Discussion and Analysis Section IV corporate governance Section V environmental and social responsibility 65 section VI important matters Section VII changes in shares and shareholders Section 8 preferred shares 88 section IX relevant information of bonds 89 section x financial reporting ninety
Fujian Sunner Development Co.Ltd(002299) 2021 Annual Report
interpretation
Explanatory item refers to the explanatory content
The company, the company and Fujian Sunner Development Co.Ltd(002299) refer to Fujian Sunner Development Co.Ltd(002299)
Shengnong industry and Shengnong group refer to Fujian Shengnong Industry Co., Ltd., the controlling shareholder of the company, which was renamed “Fujian Shengnong Holding Group Co., Ltd.” on December 28, 2017
Shengnong food and Fujian food refer to Fujian Shengnong Food Co., Ltd., a wholly-owned subsidiary of the company
Jiangxi food refers to Jiangxi Shengnong Food Co., Ltd., a wholly-owned subsidiary of Shengnong food
Pucheng Shengnong refers to Fujian Fujian Sunner Development Co.Ltd(002299) (Pucheng) Co., Ltd., a wholly-owned subsidiary of the company
Ou Sheng agriculture and animal husbandry refers to Fujian Ou Sheng agriculture and animal husbandry development Co., Ltd., which completed the cancellation of industrial and commercial registration on March 27, 2020
Jiangxi SHENGJUE refers to Jiangxi SHENGJUE Supply Chain Management Co., Ltd., a holding subsidiary of Fujian food
Ousheng industry (Fujian) Co., Ltd., a subsidiary of the company with 51% shares. The company officially completed the acquisition of 49% equity held by its minority shareholders on April 11, 2019; On April 17, 2019, it was renamed “Shengnong development (Zhenghe) Co., Ltd.”
Zhenghe food refers to Shengnong food (Zhenghe) Co., Ltd., a wholly-owned subsidiary of Shengnong food
Shengze biology refers to Fujian Shengze Biotechnology Development Co., Ltd., a wholly-owned subsidiary of the company
Jiangxi Shengze refers to Jiangxi Shengze poultry breeding Co., Ltd., a wholly-owned subsidiary of Shengze biology
Haisheng feedstuff refers to Fujian Haisheng feedstuff Co., Ltd., a joint venture in which the company holds 50% of the shares
Meiqile restaurant refers to the catering chain store with “meiqile” as the brand invested by Fu Xiangfang, one of the actual controllers of the company
Meiqile company refers to Fujian meiqile catering Co., Ltd., which is a company with shares held by family members of the actual controller of the company
Red fried Fengyun refers to Fujian red fried Fengyun Catering Management Co., Ltd., a catering company with the brand of “red fried Fengyun” established in the form of a company controlled by Fu Xiang
Xingrui liquefied gas refers to Fujian Guangze Xingrui Liquefied Gas Co., Ltd., which is the same parent company as the company
Holiday Inn
