Taoli Bread uses the full-month weighted average method for cost accounting.

On the evening of March 16, Taoli Bread (603866, SH) announced its 2021 annual report. The company’s operating income increased by 6.24% and net profit fell by 13.54%. This is the first time Taoli Bread has been listed since its listing in 2015. There was a decline in net profit.

One of the reasons for the growth in revenue but the decline in net profit is that the company's gross profit margin decreased by 3.69 percentage points year-on-year.

Between 2012 and 2019, Taoli Bread’s revenue has always maintained a high double-digit growth rate, and its net profit has also maintained double-digit growth except in 2014 and 2019.

In 2021, Taoli Bread achieved revenue of 6.335 billion yuan, a year-on-year increase of 6.24%; net profit was 763 million yuan, a year-on-year decrease of 13.54%. This is the first time that Taoli Bread has experienced a decline in net profit since its listing in 2015. Revenue has still not returned to the double-digit growth trend before 2019.

Judging from the 2021 annual report, the gross profit margins of Taoli Bread’s various products are also declining. In 2021, Taoli Bread's operating costs increased by 11.84% year-on-year, and its gross profit margin decreased by 3.69 percentage points year-on-year. In terms of products, the gross profit margins of bread and pastries, moon cakes, and rice dumplings products decreased by 3.53 percentage points, 11.77 percentage points, and 8.96 percentage points respectively.

In this regard, Taoli Bread attributed the main reason to the fact that the company's labor costs were lower than the current period due to the impact of the national phased social security reduction and exemption policy in the same period last year; the discount rate was higher than the same period last year due to increased promotion efforts. ; Rising raw material prices lead to increased production costs.