LHG(SH:600186)2022-04-29 16:00Financial Performance - The company's operating revenue for 2021 was CNY 1,814,929,608.87, representing a 9.69% increase compared to CNY 1,654,638,589.14 in 2020[20]. - The net profit attributable to shareholders for 2021 was CNY 44,364,370.77, a decrease of 40.28% from CNY 74,286,138.33 in 2020[20]. - Basic earnings per share for 2021 were CNY 0.03, down 40.00% from CNY 0.05 in 2020[21]. - The weighted average return on equity decreased to 5.45% in 2021, down from 21.34% in 2020, a decline of 15.89 percentage points[21]. - The total revenue for the reporting period was CNY 1,809,698,398.51, with a gross profit margin of 12.36%, reflecting a decrease of 5.42 percentage points compared to the previous year[60]. - The company reported a total comprehensive income of CNY 42,931,758.16 for 2021, compared to CNY 76,942,546.27 in 2020[189]. Cash Flow and Assets - The net cash flow from operating activities improved to CNY 70,048,794.63 in 2021, compared to a negative cash flow of CNY -794,229,165.46 in 2020[20]. - Cash and cash equivalents at the end of the period amounted to CNY 1,205,058,426.11, representing 53.24% of total assets, up from 31.29% in the previous period[53]. - The company's total assets increased by 50.53% to CNY 2,263,654,921.95 at the end of 2021, up from CNY 1,503,783,979.79 in 2020[20]. - The total liabilities decreased to CNY 1,093,564,451.21 in 2021 from CNY 1,352,823,471.80 in 2020, a reduction of approximately 19.2%[181]. - The total equity attributable to shareholders increased to CNY 1,405,829,828.65 in 2021 from CNY 385,307,198.86 in 2020, reflecting a growth of approximately 264.5%[181]. Sales and Market Performance - The company sold 118,600 tons of monosodium glutamate, 25,300 tons of chicken essence, and 121,200 tons of flour in 2021, resulting in a total sales revenue of RMB 1.815 billion, a year-on-year increase of 9.69%[28]. - The company achieved a sales revenue of 1.815 billion RMB, representing a year-on-year growth of 9.69%[36]. - The domestic condiment industry has maintained a compound annual growth rate of over 15% over the past decade, with a projected growth rate of around 10% for the next five years[31]. - The company has established a comprehensive sales network across the country, with sales representatives in major cities and a presence in most county-level areas[32]. Research and Development - R&D expenses increased by 24.56% year-on-year to RMB 22.07 million, focusing on developing new health-oriented seasoning products and enhancing product innovation[29]. - The total R&D expenditure for the period was ¥22,072,411.15, accounting for 1.22% of the operating revenue[49]. - The company will continue to increase R&D investment, focusing on developing new products that align with modern consumer trends, including "recipe-style compound seasonings" and various sauces[71]. Corporate Governance and Management - The company held 9 supervisory board meetings during the reporting period, ensuring compliance with legal and regulatory requirements[78]. - A fair and transparent performance evaluation and incentive mechanism for senior management has been established, aligning with relevant laws and regulations[78]. - The company has committed to continuous improvement in corporate governance and internal control mechanisms to promote healthy development[79]. - The company has established specialized committees under the board, including the audit, nomination, compensation, and strategic committees[102]. Market Risks and Challenges - The company faces market risks due to increasing competition and consumer demands for product quality, which could impact customer retention and performance[74]. - The company recognizes the challenge of attracting and retaining high-end talent amid increasing competition and rising labor costs[74]. - The company has outlined various risk factors in the report, which investors should be aware of[7]. Future Outlook and Strategy - The company plans to enhance its production capacity for seasoning products, including MSG, chicken essence, and compound seasonings, while also developing new healthy seasoning products and foods[68]. - In 2022, the company aims to complete the relocation to a new factory and initiate the second phase of the new area project, which is expected to enhance production capacity and increase revenue scale[70]. - The company plans to continue expanding its market presence and exploring new strategies for growth[154].