Annual Report 2016

Company: QINQIN FOODS (1583)
Year: 2016
Published: 2017-04-10
Status: Processed
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Extracted ESG KPIs

KPIs are organized by ESG aspects.

Direct and/or indirect energy consumption by type (e.g. electricity, gas or oil) in total (kWh in '000s) and intensity (e.g. per unit of production volume, per facility).

Indicator Unit 2015 2016 Report Pages
China gross domestic product year-on-year growth % 6.7 6
Cost - Buildings RMB'000 271471 78
Cost - Machinery RMB'000 185817 78
Cost - Motor vehicles RMB'000 2985 78
Cost - Office equipment, furniture and fixtures RMB'000 19137 78
Cost - Total RMB'000 479410 78
Total depreciation expense RMB'000 37686 36252 79

Water consumption in total and intensity (e.g. per unit of production volume, per facility).

Indicator Unit 2016 Report Pages
Total site area of land in Jinjiang Industrial Zone, Fujian province sq.m 91349 80

Description of energy use efficiency target(s) set and steps taken to achieve them.

Indicator Unit 2015 2016 Report Pages
Capital commitments - Buildings RMB'000 2773 1138 92
Capital commitments - Machinery and equipment RMB'000 5712 3614 92
Capital expenditure (Bakery, Confectionery and Other Products) RMB'000 99 71
Capital expenditure (Crackers and Chips) RMB'000 629 71
Capital expenditure (Group) RMB'000 4668 71
Capital expenditure (Jelly Products) RMB'000 3922 71
Capital expenditure (Seasoning Products) RMB'000 18 71
Capital expenditure (Total) RMB'000 8559 71
Capital expenditure (Unallocated) RMB'000 3891 71
Capital expenditure - Allocated RMB'000 8196 72
Capital expenditure - Bakery, Confectionery and Other Products RMB'000 3214 72
Capital expenditure - Crackers and Chips RMB'000 668 72
Capital expenditure - Group RMB'000 13179 72
Capital expenditure - Jelly Products RMB'000 4246 72
Capital expenditure - Seasoning Products RMB'000 68 72
Capital expenditure - Unallocated RMB'000 4983 72

Total packaging material used for finished products (in tonnes) and, if applicable, with reference to per unit produced.

Indicator Unit 2015 2016 Report Pages
Transportation and packaging expenses RMB'000 51456 53612 74

Description of the significant impacts of activities on the environment and natural resources and the actions taken to manage them.

Indicator Unit 2015 2016 Report Pages
Environmental acceptance approval obtained for production facilities in Jinjiang Industrial Zone, Fujian province Yes 80
Land use rights RMB'000 41327 40373 49
Others RMB'000 -880 47833 74, 75
Raw materials (inventories) RMB'000 48669 51911 83
Raw materials and consumables used RMB'000 435285 434844 74
Total non-current assets RMB'000 417457 396911 49

Total workforce by gender, employment type (for example, full- or part-time), age group and geographical region.

Indicator Unit 2013 2014 2015 2016 Report Pages
Administrative expenses RMB'000 -69411 -93369 71, 72
Board meeting attendance rate for Cai Meng (Independent Non-Executive Director) meetings attended/meetings held 4/4 19
Board meeting attendance rate for Chan Yiu Fai Youdey (Independent Non-Executive Director) meetings attended/meetings held 4/4 19
Board meeting attendance rate for Cheng Yong (Executive Director, resigned with effect from 1 January 2017) meetings attended/meetings held 4/4 19
Board meeting attendance rate for Hui Ching Lau (Non-Executive Director) meetings attended/meetings held 4/4 19
Board meeting attendance rate for Hui Lin Chit (Non-Executive Director) meetings attended/meetings held 4/4 19
Board meeting attendance rate for Ng Swee Leng (Independent Non-Executive Director) meetings attended/meetings held 4/4 19
Board meeting attendance rate for Paul Marin Theil (Independent Non-Executive Director) meetings attended/meetings held 4/4 19
Board meeting attendance rate for Sze Man Bok (Non-Executive Director) meetings attended/meetings held 4/4 19
Board meeting attendance rate for Wong Wai Leung (Executive Director) meetings attended/meetings held 4/4 19
Board meeting attendance rate for Wu Huolu (Non-Executive Director) meetings attended/meetings held 4/4 19
Board meeting attendance rate for Wu Sichuan (Non-Executive Director) meetings attended/meetings held 4/4 19
Board meeting attendance rate for Wu Yinhang (Non-Executive Director) meetings attended/meetings held 4/4 19
Construction-in-progress RMB'000 1781 1110 49
Decrease in trade and other receivables RMB'000 11824 6878 91
Directors' and chief executive's emoluments - Fees RMB'000 500 97
Directors' and chief executive's emoluments - Pension, housing fund allowances, medical insurance and other social insurance RMB'000 31 97
Directors' and chief executive's emoluments - Salary and bonuses RMB'000 1414 97
Directors' and chief executive's emoluments - Total RMB'000 1945 97
Expenses include listing expense, not deductible for tax purposes RMB'000 5177 75
Group total revenue million RMB 10201 8980.9 6
Number of employees employees 2900 33
Other payables and accrued charges RMB'000 78246 155167 90
Other receivables RMB'000 904 425 84
Other receivables, prepayments and deposits RMB'000 15642 19040 49
Other receivables, prepayments and deposits (total) RMB'000 15642 19040 84
Other reserve at 31 December 2015 RMB'000 122 87
Other reserve at 31 December 2016 RMB'000 -115044 87
Other reserves RMB'000 180514 186238 49
Other reserves at 31 December 2015 RMB'000 180514 51
Other reserves at 31 December 2016 RMB'000 186238 51
Pension, housing fund, medical insurance and other social insurance RMB'000 13929 9908 76
Return on equity 9.9% 4.7% 4
Staff salaries payables RMB'000 22465 30234 90
Statutory reserves at 1 January 2015 RMB'000 168765 87
Statutory reserves at 1 January 2016 RMB'000 176739 87
Statutory reserves at 31 December 2015 RMB'000 176739 87
Statutory reserves at 31 December 2016 RMB'000 186619 87
Total assets RMB'000 851634 843885 775000 894854 49, 99
Total employee benefit expense RMB'000 148567 136186 76
Total liabilities RMB'000 359174 260225 129766 218157 99
Total loans and receivables (assets) RMB'000 243968 359126 83
Total other reserves at 1 January 2015 RMB'000 174718 87
Total other reserves at 1 January 2016 RMB'000 180514 87
Total other reserves at 31 December 2015 RMB'000 180514 87
Total reserves (Reserve movement of the Company) RMB'000 90083 97
Utilities and various office expenses RMB'000 47861 44405 74
Wages and salaries RMB'000 134638 126278 76

Employee turnover rate by gender, age group and geographical region.

Indicator Unit 2015 2016 Report Pages
Operating leases rentals RMB'000 5078 5408 74
Operating profit RMB'000 76160 41904 4
Operating profit before working capital changes RMB'000 115646 83862 91

Description of occupational health and safety measures adopted, and how they are implemented and monitored.

Indicator Unit 2015 2016 Report Pages
Employee benefit expense, including directors’ emoluments RMB'000 148567 136186 74
Other finance charges RMB'000 -198 -191 74

The percentage of employees trained by gender and employee category (e.g. senior management, middle management).

Indicator Unit 2016 Report Pages
Bonus issue (2016) RMB'000 -4097 87

Number of suppliers by geographical region.

Indicator Unit 2013 2014 2015 2016 Report Pages
Accrued expenses and other payables RMB'000 2382 9981 90
Accumulated depreciation - Buildings RMB'000 70679 78
Accumulated depreciation - Machinery RMB'000 61769 78
Accumulated depreciation - Motor vehicles RMB'000 1649 78
Accumulated depreciation - Office equipment, furniture and fixtures RMB'000 13296 78
Accumulated depreciation - Total RMB'000 147393 78
Accumulated impairment - Machinery RMB'000 4238 78
Accumulated impairment - Total RMB'000 4238 78
Advance payments to suppliers RMB'000 3920 6485 84
Currency translation differences RMB'000 -2178 -59 51
Equity attributable to shareholders of the Company RMB'000 492460 583660 645234 676697 99
Future aggregate minimum lease payments under non-cancellable operating leases RMB million 2.9 5.4 9
Increase/(decrease) in trade and other payables RMB'000 -8064 99465 91
Interest received RMB'000 11818 6030 52
Inventories RMB'000 98837 120202 49
Payables for purchase of property, plant and equipment RMB'000 13795 15002 90
Purchase of intangible assets RMB'000 -820 -488 52
Purchase of property, plant and equipment including additions of construction-in-progress RMB'000 -12057 -12737 52
Share capital RMB'000 4097 49
Share capital at 31 December 2016 RMB'000 4097 51
Share issue upon Reorganisation (2016) RMB'000 115166 87
Share issue upon Reorganisation (2016) - Other reserve RMB'000 -115166 87
Share issue upon Reorganisation and bonus issue RMB'000 4097 51
Spare parts and consumables (inventories) RMB'000 5462 5048 83
Total capital commitments RMB'000 8485 4752 92
Total capital commitments (contracted but not provided for) RMB million 8.5 4.8 9
Total current assets RMB'000 357543 497943 49
Total inventories RMB'000 98837 120202 83
Total trade receivables RMB'000 11575 8805 85
Total trade receivables (all currencies) RMB'000 22669 13642 85

Percentage of total products sold or shipped subject to recalls for safety and health reasons.

Indicator Unit 2015 2016 Report Pages
Sales of bakery, confectionery and other products million RMB 55.1 61.6 7
Sales of crackers and chips million RMB 246.3 280.3 7
Sales of seasoning products million RMB 104.8 110 7
Sales to external customers - Bakery, Confectionery and Other Products RMB'000 55085 72
Sales to external customers - Crackers and Chips RMB'000 246328 72
Sales to external customers - Group RMB'000 1020051 72
Sales to external customers - Jelly Products RMB'000 613800 72
Sales to external customers - Seasoning Products RMB'000 104838 72

Number of products and service related complaints received and how they are dealt with.

Indicator Unit 2013 2014 2015 2016 Report Pages
Advance receipts from customers RMB'000 38623 98828 90
Advances from the then ultimate holding company RMB'000 63496 52
Bakery, confectionery and other products as percentage of total revenue % 5.4 6.3 7
Changes in inventories of work-in-progress and finished goods RMB'000 2776 -18537 74
Cost of goods sold (Bakery, Confectionery and Other Products) RMB'000 -46125 71
Cost of goods sold (Crackers and Chips) RMB'000 -150817 71
Cost of goods sold (Group) RMB'000 -559911 71
Cost of goods sold (Jelly Products) RMB'000 -298343 71
Cost of goods sold (Seasoning Products) RMB'000 -64626 71
Cost of goods sold - Bakery, Confectionery and Other Products RMB'000 -38870 72
Cost of goods sold - Crackers and Chips RMB'000 -132418 72
Cost of goods sold - Group RMB'000 -589114 72
Cost of goods sold - Jelly Products RMB'000 -353328 72
Cost of goods sold - Seasoning Products RMB'000 -64498 72
Cost of inventories recognised as expenses and included in cost of goods sold RMB'000 438061 416307 83
Crackers and chips as percentage of total revenue % 24.1 28.6 7
Finished goods (inventories) RMB'000 17074 40204 83
Finished goods turnover days days 11 19 4
Gross profit million RMB 430.9 421 5
Income not subject to tax RMB'000 -1653 75
Income tax expense RMB'000 -27984 -34666 -24069 25927 71, 72, 75, 99
Income tax paid RMB'000 -24865 -39974 52
Increase in inventories RMB'000 -301 -21365 91
Jelly products sales revenue million RMB 613.8 529.1 6
Jelly products share of total revenue % 60.2 53.9 6
Marketing and advertising expenses RMB'000 174000 178800 74
Net assets RMB'000 645234 676697 4
Net book amount - Buildings RMB'000 200792 78
Net book amount - Machinery RMB'000 119810 78
Net book amount - Motor vehicles RMB'000 1336 78
Net book amount - Office equipment, furniture and fixtures RMB'000 5841 78
Net book amount - Total RMB'000 327779 78
Net book value of property, plant and equipment RMB'000 459 671 91
Property, plant and equipment RMB'000 360198 327779 49
Property, plant and equipment impairment charge RMB'000 4238 74, 91
Retail sales of consumer products market year-on-year growth % 9.6 6
Retained earnings RMB'000 464720 486362 49
Retained earnings at 31 December 2015 RMB'000 464720 51
Retained earnings at 31 December 2016 RMB'000 486362 51
Revenue - Sales to external customers (Bakery, Confectionery and Other Products) RMB'000 61577 71
Revenue - Sales to external customers (Crackers and Chips) RMB'000 280284 71
Revenue - Sales to external customers (Group) RMB'000 980902 71
Revenue - Sales to external customers (Jelly Products) RMB'000 529086 71
Revenue - Sales to external customers (Seasoning Products) RMB'000 109955 71
Reversal of provision for decline in value of inventories RMB'000 786 83
Reversal of provision/provision for decline in value of inventories RMB'000 528 -786 74
Seasoning products as percentage of total revenue % 10.3 11.2 7

Description of practices relating to observing and protecting intellectual property rights.

Indicator Unit 2015 2016 Report Pages
Amortisation of intangible assets RMB'000 576 625 74, 91
Amortisation of land use rights RMB'000 959 954 74, 91
Approximate percentage of interest in the Company - An Ping Holdings Limited % 9.45 37
Approximate percentage of interest in the Company - An Ping Investments Limited % 9.45 37
Approximate percentage of interest in the Company - Credit Suisse Trust Limited % 21.61 37
Approximate percentage of interest in the Company - Easy Success International Investment Limited % 17.91 37
Approximate percentage of interest in the Company - Mr. Hui Ching Lau % 6.56 35
Approximate percentage of interest in the Company - Mr. Hui Lin Chit % 9.45 35
Approximate percentage of interest in the Company - Mr. Sze Man Bok % 9.62 35
Approximate percentage of interest in the Company - Mr. Wu Huolu % 17.91 35
Approximate percentage of interest in the Company - Seletar Limited % 21.61 37
Approximate percentage of interest in the Company - Serangoon Limited % 21.61 37
Approximate percentage of interest in the Company - Sure Wonder Limited % 6.21 37
Approximate percentage of interest in the Company - Tin Lee Investments Limited % 9.6 37
Approximate percentage of interest in the Company - Tin Wing Holdings Limited % 9.6 37
Intangible assets RMB'000 5130 4993 49
Share premium (Reserve movement of the Company) RMB'000 111069 97
Share premium at 31 December 2016 RMB'000 111069 87

Description of quality assurance process and recall procedures.

Indicator Unit 2015 2016 Report Pages
Total cost of sales, distribution costs and administrative expenses RMB'000 952825 950111 74

Description of consumer data protection and privacy policies, and how they are implemented and monitored.

Indicator Unit 2016 Report Pages
Bank borrowing NIL 4

Number of concluded legal cases regarding corrupt practices brought against the issuer or its employees during the reporting period and the outcomes of the cases.

Indicator Unit 2015 2016 Report Pages
Accumulated losses (Reserve movement of the Company) RMB'000 -20986 97
Additional withholding tax charges million RMB 6 5, 6
Current income tax RMB'000 23734 37481 75
Current ratio (times) 2.8 2.3 4
Deferred income tax assets RMB'000 8154 15916 49
Deferred income tax assets - Accrued expense and provisions RMB'000 4433 5676 89
Deferred income tax assets - Tax losses RMB'000 2751 6865 89
Deferred income tax assets - Total RMB'000 8154 15916 89
Deferred income tax assets - Unrealised profit in inventories arising from intra-group transactions RMB'000 970 3375 89
Deferred income tax liabilities - Withholding income tax on unremitted earnings in PRC subsidiaries RMB'000 3792 89
Deferred income tax, net RMB'000 335 -11554 75
Effect of foreign exchange rate changes in cash and cash equivalents RMB'000 -2315 9706 52
Exchange gain RMB'000 41 9706 74
Exchange reserve at 1 January 2015 RMB'000 5831 87
Exchange reserve at 1 January 2016 RMB'000 3653 87
Exchange reserve at 31 December 2015 RMB'000 3653 87
Exchange reserve at 31 December 2016 RMB'000 3594 87
Foreign exchange gain in relation to cash and cash equivalent in HKD and USD RMB million 9.7 9
Number of shares interested - Mr. Wu Huolu (Interest of controlled corporation/corporate interest) shares 85214895 35
Number of shares interested - Seletar Limited shares 102819049 37
Number of shares interested - Serangoon Limited shares 102819049 37
Number of shares interested - Sure Wonder Limited shares 29555978 37
Number of shares interested - Tin Lee Investments Limited shares 45645799 37
Number of shares interested - Tin Wing Holdings Limited shares 45645799 37
One-off expenses in relation to Listing million RMB 823.2 5
One-off listing expenses million RMB 823.2 6
Other comprehensive income — currency translation differences (2015) RMB'000 -2178 87
Other comprehensive income — currency translation differences (2016) RMB'000 -59 87
PRC withholding tax on distributed profit and unremitted earnings RMB'000 3125 9132 75
PRC withholding tax on distributed profits and unremitted earnings RMB'000 3125 9132 75
Provision for decline in value of inventories RMB'000 528 83
Provision for impairment of trade receivables RMB'000 5 -1249 74, 84
Provision for impairment on two production lines of a subsidiary for manufacturing waffle cakes (net of tax) million RMB 4.2 7
Trade and other payables RMB'000 115209 215940 90
Trade and other payables, excluding non-financial liabilities RMB'000 53140 85756 83
Trade and other receivables (total) RMB'000 38311 31433 84
Trade and other receivables, excluding non-financial assets RMB'000 23573 12818 83
Trade payables RMB'000 36963 60773 90
Trade payables 181-365 days RMB'000 387 86 90
Trade payables 31-180 days RMB'000 17200 20207 90
Trade payables over 365 days RMB'000 205 142 90
Trade payables within 30 days RMB'000 19171 40338 90
Trade receivables RMB'000 22669 12393 49, 84
Trade receivables (net) RMB'000 12393 84
Trade receivables 181-365 days RMB'000 2317 18 84, 85
Trade receivables 31-180 days RMB'000 15273 5841 84, 85
Trade receivables denominated in RMB RMB'000 22620 13456 85
Trade receivables denominated in other currencies RMB'000 49 186 85
Trade receivables over 365 days RMB'000 1935 1249 84, 85
Trade receivables turnover days days 11 7 4
Unrecognised deferred income tax liabilities for withholding income tax and other taxes on unremitted earnings of certain subsidiaries RMB'000 6017 4409 89
Unremitted earnings of certain subsidiaries retained in the PRC for investment purpose RMB'000 120334 88187 89
Weighted average applicable tax rate 24.9% 23.4% 75

Description of preventive measures and whistle-blowing procedures, and how they are implemented and monitored.

Indicator Unit 2015 2016 Report Pages
Appropriation to statutory reserves RMB'000 7974 9880 51
Appropriation to statutory reserves (2015) RMB'000 7974 87
Appropriation to statutory reserves (2016) RMB'000 9880 87
Audit Committee meeting attendance rate for Cai Meng (Independent Non-Executive Director) meetings attended/meetings held 1/1 19
Audit Committee meeting attendance rate for Chan Yiu Fai Youdey (Independent Non-Executive Director) meetings attended/meetings held 1/1 19
Audit Committee meeting attendance rate for Ng Swee Leng (Independent Non-Executive Director) meetings attended/meetings held 1/1 19
Audit Committee meeting attendance rate for Paul Marin Theil (Independent Non-Executive Director) meetings attended/meetings held 1/1 19
Audit Committee meeting attendance rate for Wong Wai Leung (Executive Director) meetings attended/meetings held 1/1* 19
Auditor’s remuneration RMB'000 500 1808 74
Authorised share capital HK$, Number of shares 10000000 86
Corporate income tax RMB'000 20944 16795 75
Nomination Committee meeting attendance rate for Cai Meng (Independent Non-Executive Director) meetings attended/meetings held 2/2 19
Nomination Committee meeting attendance rate for Chan Yiu Fai Youdey (Independent Non-Executive Director) meetings attended/meetings held 2/2 19
Nomination Committee meeting attendance rate for Hui Lin Chit (Non-Executive Director) meetings attended/meetings held 2/2 19
Nomination Committee meeting attendance rate for Ng Swee Leng (Independent Non-Executive Director) meetings attended/meetings held 2/2 19
Nomination Committee meeting attendance rate for Paul Marin Theil (Independent Non-Executive Director) meetings attended/meetings held 2/2 19
Nomination Committee meeting attendance rate for Wong Wai Leung (Executive Director) meetings attended/meetings held 2/2* 19
Remuneration Committee meeting attendance rate for Cai Meng (Independent Non-Executive Director) meetings attended/meetings held 2/2 19
Remuneration Committee meeting attendance rate for Chan Yiu Fai Youdey (Independent Non-Executive Director) meetings attended/meetings held 2/2 19
Remuneration Committee meeting attendance rate for Ng Swee Leng (Independent Non-Executive Director) meetings attended/meetings held 2/2 19
Remuneration Committee meeting attendance rate for Paul Marin Theil (Independent Non-Executive Director) meetings attended/meetings held 2/2 19
Remuneration Committee meeting attendance rate for Wong Wai Leung (Executive Director) meetings attended/meetings held 2/2* 19
Total commitments under operating leases RMB'000 2898 5354 92

Focus areas of contribution (e.g. education, environmental concerns, labour needs, health, culture, sport).

Indicator Unit 2015 2016 Report Pages
Basic earnings per share RMB 0.134 0.066 5
Commitments under operating leases - Later than 1 year and not later than 5 years RMB'000 95 1622 92
Commitments under operating leases - Not later than 1 year RMB'000 2803 3732 92
Number of employees participated in 5-kilometre Mini-Marathon employees 50 30
Number of shares interested - An Ping Holdings Limited shares 44933950 37
Number of shares interested - An Ping Investments Limited shares 44933950 37
Number of shares interested - Credit Suisse Trust Limited shares 102819049 37
Number of shares interested - Easy Success International Investment Limited shares 85214895 37
Number of shares interested - Mr. Hui Ching Lau (Interest of controlled corporation/corporate interest) shares 31225078 35
Number of shares interested - Mr. Hui Lin Chit (Founder of discretionary trust/other interest) shares 44933950 35
Number of shares interested - Mr. Sze Man Bok (Beneficial owner and founder of discretionary trust/personal and other interests) shares 45760919 35
Number of youth volunteers in volunteer service team volunteers 70 30
Tax calculated at tax rates applicable to profits of the Group’s companies RMB'000 21824 13467 75

Resources contributed (e.g. money or time) to the focus area.

Indicator Unit 2013 2014 2015 2016 Report Pages
Financial support and products provided for Jinjiang International Half-Marathon RMB 50000 30
Other income and other gains-net RMB'000 8934 11113 71, 72
Proceeds from disposal of property, plant and equipment RMB'000 37 591 52, 91
Repayment to the then ultimate holding company RMB'000 -122697 52
Revenue RMB'000, million RMB 1280354 1216135 1020051 980902 4, 5, 99
Taxes payables RMB'000 981 1122 90
Total equity RMB million, RMB'000 645234 676.7 9, 49
Total equity at 31 December 2015 RMB'000 645234 51
Total equity at 31 December 2016 RMB'000 676697 51
Value added tax recoverable RMB'000 8672 10111 84

Total workforce by gender, employment type (for example, full- or part-time), age group and geographical region.

Standard Indicator Unit 2016
Number of Total Employees employees 2900

Resources contributed (e.g. money or time) to the focus area.

Standard Indicator Unit 2016
Total Social Investment RMB 50000