Henan Kedi Dairy Co.Ltd(002770)
2021 general manager’s work report
Dear directors
On behalf of the management of the company, I will present the 2021 general manager’s work report to the board of directors for deliberation.
1、 Overall operation in 2021
In 2021, in the face of the epidemic and complex external environment, under the leadership of the board of directors and the supervision of the board of supervisors, the management of the company, in accordance with the strategic development objectives of the board of directors, adhered to the general tone of “seeking operation, strengthening management and expanding the market”, made concerted efforts from top to bottom and actively responded to it. On the one hand, the epidemic prevention and control was not relaxed, on the other hand, the production and operation were not stagnant. With the efforts of the management, through the joint efforts of all employees, The company has achieved a good year-on-year growth in production and stable sales performance in 2022.
Completion of business objectives:
As of December 31, 2021, the sales revenue in 2021 was 591 million yuan, an increase of 24.22% over the same period last year; The total profit was 4.6461 million yuan, an increase of 100.39% over the same period last year; The net profit was 3.2650 yuan, an increase of 100.26% over the same period last year. Due to the great impact of the external environment and the epidemic situation, coupled with the sharp rise in the price of raw and auxiliary materials, the operating cost of the company increased. In addition, the company accrued about 150 million yuan of financial expenses in 2021, resulting in the reduction of the company’s profit.
See the annual financial report audited by the accounting firm for relevant financial data. Main work:
——Actively cooperate with the government and the commercial development and investment group in debt collection and repayment, and effectively resolve the interest bearing liabilities of corporate banks and the arrears of the major shareholder Cody group. The company has resolved about 926 million yuan of interest bearing liabilities such as banks through this debt collection method, and the rest is expected to be solved in the near future. At that time, the company will become an interest free liability company, which can reduce the interest of more than 100 million yuan a year and increase the profit of more than 100 million yuan accordingly, greatly enhancing the vitality and development potential of the enterprise. At the same time, the commercial development and investment group has resolved the debt problem of major shareholders by means of debt repayment, and has repaid about 926 million yuan of debt in this way. The remaining part is being actively promoted, and the debt problem of major shareholder Cody group will be fully solved soon.
——Actively resolve the problem of illegal guarantee. Actively cooperate with the reorganization of the major shareholder Cody group. With the approval and implementation of the merger and reorganization plan of the major shareholder Cody group and its 9 affiliated companies, the problem of illegal guarantee was naturally lifted.
——Take multiple measures to ensure normal production and operation. In the face of the adverse impact of the epidemic, we resolutely implemented the relevant national regulations on epidemic prevention and control, adhered to the principle of both epidemic prevention and control and production and operation, formulated epidemic prevention and control systems and measures, and paid close attention to epidemic prevention and control, so as to ensure that the company has no epidemic risk; By strengthening the management of supply, production and sales, it has realized the standardization of management, reduced cost, improved quality and efficiency, and promoted the high quality of enterprise development; By optimizing organizational structure and business process, reducing non productive costs, optimizing inventory, shortening turnover cycle, maximizing capital efficiency, reducing burden and capital pressure, and enhancing hematopoietic function and sustainable operation ability; By strengthening the construction of quality and safety system and building a solid barrier for safety development, the stable improvement of product quality and the safe development of enterprises are ensured; By giving full play to brand advantages, product advantages, market advantages and greater channel profit advantages, the old market can be consolidated and developed, and the new market can develop rapidly; By strengthening product research and development, it further enriches the product structure and enhances the competitiveness of products; By strengthening the construction of marketing system, accelerating the construction and development of market terminal outlets, and strengthening the distribution of products, the sales performance achieved a large increase year-on-year. In 2021, without any external support, the company relied on its own blood to ensure the normal production and operation, and repaid more than 50 million yuan of old milk arrears and wages throughout the year.
2、 Main work in 2022
In 2022, the general idea of the company’s operation is: under the leadership of the board of directors and the supervision of the board of supervisors, guided by the strategic development objectives of the board of directors, strictly implement the decisions of the board of directors, seek operation, strengthen management and expand the market, strive to achieve the annual operation objectives of the board of directors, and ensure an average annual increase of output value and profit of more than 30%.
1. Implement the strategic decisions of the board of directors, improve the modern enterprise system and ensure the high-quality development of the enterprise
Adhere to the leadership of the board of directors, effectively implement the matters considered and approved by the board of directors, and ensure the implementation of major business and management decisions of the board of directors. In strict accordance with the requirements of relevant laws, administrative regulations, departmental rules and normative documents such as the company law, the securities law and the guidelines for the governance of listed companies, improve the modern enterprise system and establish and improve the standardized and standardized modern management system. Comprehensively strengthen risk management, quality management, budget management and cost management, and build a modern enterprise management platform. Strengthen the collaborative management of production, supply and marketing, transform and upgrade to digitization and intelligence, maintain a reasonable inventory range of raw and auxiliary materials and finished products, and ensure the maximization of capital use efficiency. Strengthen the control of production, planning, process and quality, promote the implementation and effective construction of the two systems, and realize cost reduction, quality improvement and efficiency increase. Strengthen the management and control of dealers and the inspection of the market to ensure the orderly development of the market. Optimize the organizational structure and business processes, reduce non productive costs, enhance the hematopoietic function and sustainable profitability of enterprises, and ensure the sustainable, healthy and high-quality development of enterprises.
2. Accelerate the construction of modern marketing system
Give full play to the company’s brand advantages, market advantages, product advantages, large channel profit advantages and the advantages of listed companies, and accelerate the improvement of the market layout within 800 kilometers based on the company’s existing mature provincial and municipal markets. Adhere to the strategy of channel sinking, take large and medium-sized cities as the center, radiate the third and fourth tier cities and Township rural markets, and gradually develop the national market. We will speed up the construction of terminal outlets, promote both traditional and modern channels, and synchronize the development of online and offline channels such as traditional e-commerce and community group purchase platforms, so as to strive to add 300000 terminal outlets and achieve new performance growth points. Formulate active distributor policies, enhance their profitability and space, mobilize the enthusiasm of dealers, gradually transform dealers into distributors, and improve the market ability of products. Strengthen the team building and talent training of the marketing system, establish and improve the scientific talent training mechanism, promotion mechanism, assessment and incentive mechanism, strengthen training, reward the good and punish the bad, stimulate the enthusiasm of employees to start a business, resolutely eliminate the employees who do not do practical things and have poor performance, and eliminate the fittest, so as to build a modern marketing team that truly starts a business. Accelerate the establishment of a national modern marketing system.
3. Strengthen product research and development
In 2021, the whole industry showed the trend of high-end normal temperature milk, steady improvement of low-temperature yogurt, high growth of low-temperature fresh milk and upgrading of consumption in the third and fourth tier markets. All kinds of products are becoming more and more diversified. In view of the development trend of the industry, the company gives full play to the quality and price advantages of the small white bag series products, adheres to the small white bag series products as the leading products, speeds up the development of gift box, family room temperature products, warm, ice and carbon low-temperature products, increases product research and development, and launches more than 10 new products every year to meet the market consumption demand and increase the vitality of products.
At present, there are Baili series such as small white bags of pure milk and warm yogurt, Tetra Pak brick series such as native pasture pure milk and native yogurt, roof box series such as green express and chewing yogurt, eklin normal temperature and low temperature yogurt, pure milk and other series, eight cup series of yogurt, bowl old yogurt, yogurt ice cream, pastoral 0 sucrose low temperature yogurt, pastoral pure milk, Tetra Pak brick pastoral 0 sucrose normal temperature yogurt, Tetra Pak pillow wheat milk, On the basis of Baili series coconut milk (with and without sugar) and milk soybean milk (without sugar), nearly 20 products are being developed and stored, including roof box active milk series, Tetra Pak brick organic pure milk, aiklin organic pure milk, low-temperature fried yogurt, Tetra Pak brick gift box cheese yogurt, fruit juice sour milk beverage, Tetra Pak brick coconut milk, aiklin coconut milk and so on. The listed products have achieved good sales both online and offline, The competitiveness has been continuously enhanced.
4. Accelerate the recovery and construction of milk source base
The company now has 20000 modern pastures. Due to the rupture of the capital chain in 2019, in order to solve the money owed to dairy farmers, dairy cows are used to offset the account. At present, there are 20000 modern pastures with complete infrastructure and advanced equipment, which urgently need to restore dairy farming. At the same time, further help farmers expand the breeding scale in the company’s standardized dairy farming community. It is planned to breed 20000 dairy cows in 20000 pastures and 10000 dairy cows in dairy farming community, a total of 30000. At present, raw milk is mainly transported to the company from Shandong, Hebei, Shanxi and Inner Mongolia. Compared with the same industry, the price of raw milk is high, the transportation cost is high and the cost is high, resulting in the increase of the company’s operating cost. According to 300 tons of raw milk per day, the cost of this item is more than 300000 yuan per day and more than 100 million yuan a year. The recovery and construction of milk source base can greatly strengthen the independent control of the company’s milk source, reduce the supply cost of raw milk, enhance the company’s comprehensive competitiveness, drive the development of planting and breeding industry, increase the income of growers and farmers, extend the supply chain, broaden the industrial chain, improve the value chain, effectively improve the local agricultural industrial structure, and further expand Kedi dairy industrialization cluster, And give full play to the radiation driving effect of clusters, so as to contribute to the overall revitalization of rural areas and social and economic development.
Dear directors, in 2021, the company’s managers and management took the strategic development objectives of the board of directors as the direction, implemented the decisions of the board of directors, consciously accepted the supervision of the board of supervisors, actively responded to the complex external environment, overcome the adverse effects of the epidemic, took many measures to promote development, and ensured the normal production and operation. In 2022, the company’s managers and management will always adhere to the leadership of the board of directors, accept the supervision of the board of supervisors, resolutely and strictly implement the decisions of the board of directors, take the strategic development objectives of the board of directors as the guidance, adhere to the overall business idea, be diligent and responsible, innovate and develop scientifically, unite and lead all employees to strive to achieve the overall objectives of the company, and lay a solid foundation for the company to strive to achieve the top five objectives in the same industry in China within five years, Create greater returns for all shareholders with better performance and submit a satisfactory answer to the board of directors and all shareholders.
General manager: Zhang Fenghua April 30, 2022
