Financial Performance - The company's revenue for the year ended December 31, 2021, was RMB 860,254 thousand, representing an increase of 8.5% compared to RMB 792,829 thousand in 2020[12]. - Gross profit decreased to RMB 214,343 thousand, down 14.6% from RMB 251,122 thousand in the previous year, resulting in a gross margin of 24.9%[12]. - The net loss attributable to shareholders was RMB 7,750 thousand, a significant decline of 86.5% from a profit of RMB 57,421 thousand in 2020[12]. - The total assets of the company increased by 4.0% to RMB 1,916,728 thousand from RMB 1,842,928 thousand in 2020[12]. - The company reported a significant decrease in net cash position, which fell by 46.6% to RMB 342,307 thousand from RMB 640,819 thousand in the previous year[12]. - The return on equity for the year was -6.4%, a decline of 7.7 percentage points from 1.3% in 2020[12]. - The group recorded a loss attributable to shareholders of approximately RMB 80.8 million in 2021, compared to a net profit of approximately RMB 17.7 million in 2020[31]. - The group recorded a net loss of approximately RMB 70.2 million in 2021, a decrease from a net income of RMB 39.4 million in 2020[35]. - The group maintains a strong financial position with cash and bank balances of RMB 439.7 million as of December 31, 2021, down from RMB 711.0 million in 2020[62]. - The group's net current assets were RMB 91.7 million as of December 31, 2021, a decrease from RMB 492.6 million in 2020, with a current ratio of 1.1 times[62]. - The total equity of the group was RMB 1,267.9 million as of December 31, 2021, a decrease of approximately 5.1% from RMB 1,336.0 million in 2020[62]. Production and Capacity Expansion - The company completed the construction of four new production bases in various regions of mainland China, enhancing production capacity and efficiency[20]. - The company has invested approximately RMB 354.0 million in new production facilities across four regions in China to enhance production capacity and efficiency[56]. - The new production bases, which began operations in late 2020 and early 2021, recorded a loss of approximately RMB 38.8 million in 2021, impacting the group's net profit by about RMB 26.4 million[31]. - The group anticipates that as new production bases achieve economies of scale, overall production capacity, product quality, and efficiency will improve, benefiting long-term performance[23]. Product Development and Innovation - The company continues to focus on product development and innovation to drive growth in the leisure food industry amidst changing consumer patterns[20]. - The company plans to enhance its product development capabilities by investing in innovative product research and development, focusing on high-quality, natural, and nutritious products[48]. - The company aims to promote new jelly products targeting young mothers and children, including "Lactobacillus Jelly" and "Little Q Pudding," to drive growth in the jelly product segment[48]. - The group aims to expand its product portfolio and drive product innovation to meet changing consumer preferences, while strengthening its distribution network in China[23]. - The group aims to enhance product quality and optimize product mix through continuous product innovation to capture new opportunities from consumer upgrades[59]. Sales and Market Performance - The group's total sales revenue increased by 8.5% from RMB 792.8 million in 2020 to RMB 860.3 million in 2021, primarily due to growth in product sales and adjustments in product structure and sales strategy[31]. - In 2021, the group's jelly product sales amounted to approximately RMB 473.0 million, a year-on-year increase of 12.3%, accounting for 55.0% of total revenue[36]. - The group's puffed product sales reached approximately RMB 225.4 million in 2021, a year-on-year increase of 3.5%, representing 26.2% of total revenue[39]. - The group's seasoning product sales were approximately RMB 83.5 million in 2021, an increase of 11.7% year-on-year, accounting for 9.7% of total revenue[40]. - The group's candy and other products sales were approximately RMB 78.4 million in 2021, a year-on-year decrease of 1.0%, representing 9.1% of total revenue[43]. Cost Management and Expenses - The group recorded a foreign exchange loss of RMB 2.5 million due to the depreciation of HKD and USD against RMB, compared to a loss of RMB 12.2 million in the previous year[71]. - The group's distribution and selling expenses were approximately RMB 138.1 million in 2021, a year-on-year decrease of 4.9%[44]. - Administrative expenses increased by 34.3% year-on-year to approximately RMB 135.7 million in 2021, accounting for 15.8% of total revenue[45]. - Employee benefits expenses totaled approximately RMB 203.6 million for the year, an increase from RMB 155.2 million in 2020, due to increased personnel and wage adjustments[70]. Corporate Governance - The company has a strong management team with over 31 years of experience in food production and operations, contributing to its overall development[87]. - The independent non-executive directors bring diverse expertise, including financial management and legal experience, enhancing corporate governance[89][91][92][93]. - The company is committed to corporate governance, as evidenced by the composition of its board and the experience of its directors[89][91]. - The board consists of 12 members, including 3 executive directors and 4 independent non-executive directors, ensuring a balance of expertise and governance[108]. - The audit committee, composed entirely of independent non-executive directors, has been established to oversee financial reporting and compliance[119]. - The company has adopted a board diversity policy, emphasizing the importance of diverse skills, experience, and independence among board members[118]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainable development and social responsibility, aiming to create a harmonious enterprise[150]. - The company invested approximately RMB 10 million in 2021 to enhance environmental protection equipment at its new production base, aiming to improve environmental efficiency and comply with national standards[168]. - The company has implemented real-time monitoring of wastewater discharge to ensure compliance with national environmental regulations[175]. - The company emphasizes training for environmental management personnel to enhance their professional skills and ensure compliance with environmental standards[172]. - The company has adopted advanced technologies for odor gas treatment, including fluorocarbon fiber membrane collection systems, to minimize environmental impact[171]. - The company’s ESG strategy is integrated with its business strategy to enhance corporate responsibility competitiveness[152]. Future Outlook and Strategic Plans - The company provided guidance for the next fiscal year, projecting revenue growth of A% and an expected EBITDA margin of B%[99]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the H sector[99]. - The company is focused on long-term business development through investments in new products, e-commerce, information management systems, and new production facilities[23]. - The company is seeking investment opportunities in fast-growing consumer goods companies that can synergize with its business[59].
亲亲食品(01583) - 2021 - 年度财报