Financial Performance - The company's revenue increased by approximately 17.6% compared to the previous fiscal year, driven by rising domestic demand in the food and beverage sector[8]. - The net profit for the year decreased by about 44.4% compared to the fiscal year ending in 2020, primarily due to rising costs[8]. - The company's revenue for the year was approximately RMB 2,400.4 million, an increase of about RMB 358.8 million or approximately 17.6% compared to RMB 2,041.6 million in 2020[15]. - The gross profit margin decreased to approximately 15.3%, down about 3.3% from approximately 18.6% in 2020, with gross profit amounting to RMB 366.7 million, a decrease of about 3.7% from RMB 380.7 million in 2020[15][21]. - The company's net profit attributable to equity holders was RMB 43.6 million, a decrease of approximately 44.4% from RMB 78.4 million in 2020, with a net profit margin dropping from 3.8% in 2020 to 1.8% in 2021[28][29]. - Basic earnings per share for 2021 was RMB 0.15, compared to RMB 0.26 in 2020, reflecting a decline of 42.3%[172]. - The company reported a total comprehensive income of RMB 43,207 thousand for the year, down from RMB 76,943 thousand in 2020[172]. - The operating profit before tax for 2021 was RMB 62,330,000, a decrease of 45% compared to RMB 113,219,000 in 2020[186]. Production and Investment - A new production facility has been established in Shandong Province, while the Qingdao facility has been repurposed as a training and maintenance center[8]. - The company plans to invest in new machinery and equipment to automate and streamline production processes[9]. - The company established a new factory in Shandong and repurposed the Qingdao factory into a training and maintenance center, indicating ongoing investment in production capacity[15]. - The net cash used in investing activities for the year was approximately RMB 91.5 million, an increase from RMB 49.9 million in 2020, primarily due to equipment purchases for existing and new factories[33]. Market Demand and Strategy - The company anticipates continued growth in product demand due to the increasing number of online shoppers[10]. - The overall economic recovery in mainland China has positively impacted sales in various industries, including food and beverage[13]. - The company aims to consolidate its market position through prudent business development measures[10]. - The demand for paper packaging is expected to increase due to the implementation of plastic bans and the push for carbon neutrality[13]. - The company anticipates continued growth in demand for its products driven by changes in consumer lifestyles and will focus on essential goods like food and beverages[37]. - The company plans to strengthen its factory network to enhance regional coverage and market penetration in the corrugated packaging industry in mainland China[37]. Cost and Financial Management - The company faces ongoing cost pressures from raw material supply constraints and rising energy costs, affecting profit margins[13]. - The company's selling costs increased by approximately 22.4% to RMB 2,033.7 million from RMB 1,660.9 million in 2020, primarily due to increased sales volume, rising labor costs, and higher raw paper prices[20]. - Administrative expenses increased by approximately 17.6% to RMB 159.3 million from RMB 135.4 million in 2020, mainly due to rising labor costs and contributions from new production facilities[23]. - The net cash generated from operating activities was approximately RMB 49.0 million, a decrease of about 56.3% from RMB 112.1 million in 2020, mainly due to reduced profits and changes in receivables and payables[32]. Corporate Governance - The company has established various committees, including a nomination committee and an environmental committee, to oversee governance and sustainability efforts[48]. - The company emphasizes internal controls and financial statement analysis as part of its governance practices[49]. - The board consists of four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Environmental Committee, to oversee various aspects of the company[118]. - The company has appointed three independent non-executive directors, exceeding one-third of the board's total number, ensuring adequate checks and balances[125]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[116]. Shareholder Information - The company proposed a final dividend of HKD 0.08 per share for the year, down from HKD 0.16 in the previous year[57]. - The group had distributable reserves of approximately RMB 409.2 million as of December 31, 2021[68]. - Major shareholder PMHC holds 189,488,200 shares, representing 63.02% ownership[88]. - Major shareholder Jinfu Investment Limited holds 192,424,200 shares, representing 64.00% ownership[88]. - The company has no significant transactions or contracts involving directors or controlling shareholders that could create a conflict of interest[75]. Risk Management - The group has identified several risks affecting its operations, including rising raw material prices and uncertainties in obtaining external financing[39]. - The company has adopted a set of internal control and risk management systems to address various operational, financial, legal, and market risks[145]. - The board has reviewed and confirmed the effectiveness of the risk management and internal control systems for the year[145]. Auditor and Compliance - The independent auditor has issued an unqualified opinion on the company's related party transactions, confirming compliance with the relevant listing rules[104]. - The external auditor, Hong Kong Lixin Dehao CPA Limited, received approximately RMB 1,053,000 for annual audit services and RMB 167,000 for non-audit services during the year[147]. - The company confirmed compliance with the standards set out in the Listing Rules Appendix 10 regarding securities trading by directors[142].
济丰包装(01820) - 2021 - 年度财报