Precise(300442)2022-04-26 16:00Financial Performance - Revenue for the reporting period reached 691.65 million yuan, a year-on-year increase of 50.52%[2] - Net profit for the reporting period was -12.91 million yuan, with a net profit attributable to shareholders of -11.69 million yuan[4] - Revenue for 2021 increased by 50.52% to RMB 691.65 million compared to RMB 459.49 million in 2020[21] - Net profit attributable to shareholders improved significantly, with a 94.86% reduction in loss to RMB -11.69 million from RMB -227.26 million in 2020[21] - Operating cash flow turned positive, increasing by 407.97% to RMB 51.99 million from RMB -16.88 million in 2020[21] - Basic earnings per share improved to RMB -0.12 from RMB -2.27 in 2020, a 94.71% increase[21] - Total assets decreased by 3.65% to RMB 1.30 billion at the end of 2021 compared to RMB 1.35 billion at the end of 2020[21] - Shareholders' equity decreased by 5.92% to RMB 479.31 million at the end of 2021 from RMB 509.45 million at the end of 2020[21] - Revenue in 2021 reached RMB 691.65 million, a year-on-year increase of 50.52%[38] - Net profit in 2021 was RMB -12.91 million, with net profit attributable to shareholders of the listed company at RMB -11.69 million[38] - Operating cash flow in 2021 was RMB 51.99 million, while Italian COMAN company's operating cash flow was RMB -12.06 million[38] - Revenue for Q1, Q2, Q3, and Q4 were 149.05 million yuan, 239.86 million yuan, 151.82 million yuan, and 150.92 million yuan respectively[23] - Net profit attributable to shareholders for Q1, Q2, Q3, and Q4 were 3.41 million yuan, 2.11 million yuan, 1.02 million yuan, and -18.24 million yuan respectively[23] - Net cash flow from operating activities for Q1, Q2, Q3, and Q4 were 3.77 million yuan, 1.54 million yuan, 1.09 million yuan, and -19.88 million yuan respectively[23] - Non-recurring gains and losses for 2021 totaled 1.79 million yuan, compared to -585,173.64 yuan in 2020 and 35.17 million yuan in 2019[25] - Equipment business revenue in 2021 was RMB 418.95 million, a year-on-year increase of 91.66%[39] - Packaging materials business revenue in 2021 was RMB 270.48 million, a year-on-year increase of 14.94%, but gross margin decreased by 8.31% due to rising raw material costs[39] - Revenue from the equipment industry increased by 91.66% to RMB 418.95 million, accounting for 60.57% of total revenue[42] - Revenue from the material industry grew by 14.94% to RMB 270.48 million, representing 39.11% of total revenue[42] - Domestic sales accounted for 84.05% of total revenue, increasing by 60.88% to RMB 581.30 million[42] - Sales of filling machine series equipment rose by 60.93% to RMB 131.14 million, contributing 18.96% to total revenue[42] - Sales of pre-processing series equipment surged by 129.79% to RMB 72.10 million, making up 10.42% of total revenue[42] - Sales volume of filling machines increased by 65.96% to 78 units, while production volume rose by 56.10% to 64 units[46] - Sales volume of pre-processing equipment grew by 56.65% to 495 units, with production volume increasing by 30.61% to 576 units[46] - Direct material costs in the equipment industry accounted for 84.50% of total operating costs, increasing by 9.09% to RMB 268.98 million[48] - Top five customers contributed 40.63% of total sales, amounting to RMB 281.01 million[50] - Total procurement amount from top 5 suppliers is RMB 124,306,144.51, accounting for 32.14% of the annual procurement total[52] - Sales expenses decreased by 23.91% to RMB 29,661,196.34 in 2021 compared to 2020[53] - Management expenses decreased by 11.17% to RMB 63,002,037.56 in 2021 compared to 2020[53] - R&D expenses decreased by 28.81% to RMB 32,372,157.35 in 2021 compared to 2020[53] - Number of R&D personnel decreased by 2.88% to 135 in 2021, with R&D personnel accounting for 17.83% of total employees[56] - R&D investment in 2021 was RMB 32,372,157.35, accounting for 4.68% of operating revenue[56] - Net cash flow from operating activities increased by 407.97% to RMB 51,992,533.44 in 2021[57] - Cash inflow from operating activities increased by 32.49% to RMB 769,707,371.30 in 2021[57] - Cash outflow from operating activities increased by 20.05% to RMB 717,714,837.86 in 2021[57] - Operating cash inflow increased by 32.49% YoY, driven by improved sales collections[58] - Net cash flow from operating activities surged by 407.97% YoY due to better sales collections[58] - Revenue increased by 232.15 million yuan, up 50.52% YoY, while accounts receivable only grew by 24.87 million yuan, up 6.10%[58] - Cash and cash equivalents decreased by 15.28 million yuan, down 228.89% YoY, mainly due to reduced loans from financial institutions[58] - Inventory decreased by 55.37 million yuan, down 2.60% YoY, accounting for 40.91% of total assets[60] - Short-term borrowings decreased by 42.08 million yuan, down 2.54% YoY, accounting for 15.78% of total assets[60] - Contract liabilities increased by 12.26 million yuan, up 1.64% YoY, accounting for 19.97% of total assets[60] - Total investment in the reporting period remained unchanged at 28 million yuan compared to the previous year[62] - Cumulative use of raised funds reached 335.54 million yuan, with 123.02 million yuan (29.22%) of the total raised funds changed in purpose[65] - The company's IPO raised 479.25 million yuan, with net proceeds of 421.03 million yuan after deducting issuance costs[65] - The company invested a total of 42,121.84 million yuan in committed projects, with 21,237.5 million yuan already invested, achieving a 100% investment progress for the "Annual Production of 1 Billion Paper-Aluminum Composite Aseptic Packaging Materials Project" and the "Annual Production of 500 Million Paper-Plastic Multilayer Composite Aseptic New Packaging Materials Technical Transformation Project"[67] - The "Supplemental Working Capital Project" achieved a 99.96% investment progress with 8,996.5 million yuan invested out of the planned 9,000 million yuan[67] - The "Fully Automatic Aseptic Brick Filling Production Line Project" was terminated due to reduced sales and the need to avoid investment waste, with the remaining funds reallocated to other uses[67][70] - The company reallocated 6,000 million yuan from the terminated "Fully Automatic Aseptic Brick Filling Production Line Project" to an external investment in Jiangsu Pusheng Packaging Technology Co., Ltd., achieving a 100% investment progress[69] - The company used 4,800 million yuan from the terminated project to purchase office buildings, achieving a 98.93% investment progress[69] - The company allocated 1,501.74 million yuan from the terminated project for permanent working capital replenishment, achieving a 104.65% investment progress[69] - The external investment in Jiangsu Pusheng Packaging Technology Co., Ltd. resulted in a loss of 1,500.1 million yuan in the reporting period[69] - The company's overall investment in the reallocated projects totaled 12,301.74 million yuan, with 12,320 million yuan actually invested, slightly exceeding the planned amount[69] - The company's decision to terminate the "Fully Automatic Aseptic Brick Filling Production Line Project" was influenced by downstream industry downturns and the need to optimize resource allocation[70] - The company did not sell any significant assets or equity during the reporting period[71][72] - Suzhou Packaging Materials' total assets increased by 1.78% YoY, with net assets up 3.69% YoY. Revenue grew 14.95% YoY, operating profit reached 13.68 million CNY, and net profit was 13.89 million CNY[73] - Shanghai Sanhuan's total assets grew 8.04% YoY, with net assets up 22.93% YoY. Revenue surged 119.49% YoY, operating profit was 15.76 million CNY, and net profit reached 15.37 million CNY[74] - Puhuasheng's total assets increased by 21.15% YoY, but net assets were negative at -37.07 million CNY. Revenue grew 54.62% YoY, with operating profit at -14.21 million CNY and net profit at -14.21 million CNY[74] - COMAN's revenue increased by 31.74% YoY to 40.29 million CNY, but net profit was negative at -16.05 million CNY[75] Business Operations - Effective orders for Puhuasheng increased by 23% year-on-year, with orders concentrated in the second half of the year[4] - COMAN achieved sales revenue of 40.29 million yuan, a year-on-year increase of 31.74%[4] - The company incurred a loss of 14.21 million yuan for Puhuasheng and 16.05 million yuan for COMAN due to asset impairment[4] - The company is undergoing a major asset restructuring, with the review meeting scheduled for April 28, 2022[5] - Two factories in Jinshan District, Shanghai, were temporarily shut down due to COVID-19, potentially impacting 2022 performance[7] - The company faces risks from fluctuations in raw material prices, including steel, paper, and plastic particles[8] - Accounts receivable have increased, raising concerns about bad debts and cash flow risks[9] - The company holds core technologies in liquid food packaging machinery, but faces risks from potential technology leaks[10][11] - The company's main business is the R&D, production, and sales of liquid food packaging machinery and paper-aluminum composite aseptic packaging materials[27] - The company has a leading position in the liquid food packaging machinery industry, with clients including Mengniu Dairy, Yili Group, and Bright Dairy[28] - The company's production mode for equipment products includes batch production for general products and custom production for specific orders[31] - The company's sales mode is primarily direct sales domestically, with some export business through import and export agents[32] - The company holds a significant number of patented technologies and leads in multiple R&D areas within the domestic industry[12] - The company has implemented strict measures to protect core technologies, including patent applications and confidentiality agreements with employees[12] - The company's main products are highly technical, with most key technologies being independently developed or introduced and re-innovated[12] - The company plans to enhance the technological content and market competitiveness of its sterile PET equipment, aiming to achieve large-scale production capacity[77] - The company will focus on expanding the market application and promotion of its new paper can packaging product, leveraging COMAN's existing technology to improve equipment speed and efficiency[77] - In the packaging materials sector, the company will maintain relationships with existing clients, increase efforts to explore international markets, and improve market share by following up with new packaging equipment[77] - The domestic liquid food packaging machinery industry is dominated by small-scale enterprises with limited technical capabilities, with high-end equipment still largely imported[76] - A few leading domestic companies, including the company, have gained a competitive edge in the mid-to-high-end paper-aluminum composite sterile packaging machinery market through technological accumulation and market development[76] - The company's products are priced at 1/3 to 1/2 of imported products, offering high cost-performance and localized after-sales service advantages[36] - The company has established a strong brand reputation, serving major clients such as Mengniu, Yili, and Bright Dairy[35] - The company has over 100 patents and more than 100 R&D personnel, with subsidiaries and affiliated companies recognized as high-tech enterprises[37] - The company's third board of supervisors consists of 3 supervisors, including 1 employee supervisor, complying with legal and regulatory requirements[81] - The company's controlling shareholder, Xinjiang Darong, and actual controllers strictly adhere to regulations and do not interfere with the company's decision-making or operations[81] - The company has independent and complete business systems in assets, personnel, finance, organization, and operations, separate from its controlling shareholder and actual controllers[83] - The company has established an independent financial accounting system and management system, with separate bank accounts and independent tax filing[83] - The company's 2020 annual general meeting had a 34.13% investor participation rate, while the first and second extraordinary general meetings in 2021 had 47.78% and 34.12% participation respectively[85] - Chairman and General Manager Jiang Weidong holds 1,072,500 shares as of the reporting period[86] - The company's independent directors include Qian He, Jin Jianguo, and Jiang Yiwen, with ages ranging from 37 to 59[87] - The company's board of supervisors consists of Liu Jingzhou (Chairman), Cheng Qun, and Shen Feng, with ages ranging from 50 to 58[87] - Total revenue for the year was 1,073,000 units[88] - No changes in directors, supervisors, or senior management during the reporting period[88] - Jiang Weidong, Chairman and General Manager, has extensive experience in mechanical engineering and project management[89] - Shu Shiquan, Director and Vice President, oversees company operations and investment mergers[89] - Jiang Xiaowei, Director and Production Director, responsible for production management[89] - Qian He, Independent Director, brings expertise in food science and technology[90] - Jin Jianguo, Independent Director, has a strong background in bioengineering and fermentation technology[91] - Jiang Yiwen, Independent Director, is a certified public accountant with experience in financial auditing[91] - Liu Jingzhou, Chairman of the Supervisory Board, has a background in sales and economic planning[92] - Su Jinshan, CFO, is a certified public accountant and tax agent with extensive financial experience[93] - Total compensation for directors, supervisors, and senior management in 2021 was 24.86 million yuan[96] - Chairman and General Manager Jiang Weidong received a pre-tax compensation of 1.85 million yuan[97] - Independent Director Qian He received a compensation of 600,000 yuan[98] - Supervisory Board Chairman Liu Jingzhou received a compensation of 5.101 million yuan[98] - Financial Director Su Jinshan received a compensation of 4.523 million yuan[98] - The company approved a proposal for a major asset restructuring, including asset replacement, issuance of shares, and fundraising[101] - The company confirmed the independence of the evaluation institution and the reasonableness of the evaluation assumptions[102] - The company ensured that the measures to fill the return would be effectively implemented[102] - The company confirmed that the relevant entities of the transaction did not violate any regulations regarding abnormal stock trading[102] - The company approved the proposal to apply for financing credit from financial institutions[99] - The company approved the 2021 Q1 report on April 28, 2021[103] - The company approved the 2021 semi-annual report and accounting policy changes on August 12, 2021[103] - The company approved the 2021 Q3 report on October 26, 2021[103] - The company approved the financing and guarantee proposals for its subsidiaries on November 16, 2021[104] - The company approved the sale of 100% equity of COMAN company and related transactions on December 24, 2021[104] - The Audit Committee held 8 meetings in 2021, reviewing annual reports, financial statements, and major asset restructuring matters[108][109][110] - All directors attended 14 board meetings, with 5 in-person and 9 via teleconference[105] - No directors raised objections to company matters during the reporting period[106] - All directors' suggestions were adopted by the company during the reporting period[107] - Total number of employees at the end of the reporting period is 757, with 173 from the parent company and 584 from major subsidiaries[113] - Employee composition includes 440 production personnel, 38 sales personnel, 135 technical personnel, 24 financial personnel, 74 administrative personnel, 27 quality personnel, and 19 procurement personnel[113] - Education level of employees: 88 with bachelor's degree or above, 159 with college degree, 238 with high school or technical secondary school degree, and 272 with education below high school[113] - No cash dividends, stock dividends, or capital reserve to share capital conversion were proposed for 2021[116][118] - The company holds 100% equity of Jiangsu Puhuasheng Packaging Technology Co., Ltd. after a court ruling on a performance commitment compensation case[122] - Internal control evaluation report was fully disclosed on April 27, 2022, with 100% of the company's consolidated financial statement assets and revenue included in the evaluation scope[123] - The company follows a salary policy based on job value, personal ability, and performance contribution, considering regional average wage levels, industry standards, labor market conditions, and living costs[114] - Employee training programs include onboarding, safety, and professional skills training, with support for further education and certification[115] - The company has no equity incentive plans, employee stock ownership plans, or other employee incentive measures in the reporting period[119] - The company strengthened internal control system construction, cost management,