Apple Group(SH:603020)2022-04-29 16:00Financial Performance - The company's operating revenue for 2021 was CNY 3,344,556,762.67, representing a 25.35% increase compared to 2020[23]. - Net profit attributable to shareholders for 2021 was CNY 188,663,709.83, a 10.83% increase from the previous year[23]. - The basic earnings per share for 2021 was CNY 0.5708, reflecting a 7.29% increase compared to 2020[24]. - The company's total assets at the end of 2021 were CNY 3,864,748,701.98, up 38.48% from 2020[23]. - The net cash flow from operating activities for 2021 was CNY 136,869,229.20, a decrease of 37.85% compared to the previous year[23]. - The company reported a decrease of 10.47% in net profit after deducting non-recurring gains and losses, amounting to CNY 115,406,647.44[23]. - The weighted average return on equity for 2021 was 7.81%, a slight decrease of 0.07 percentage points from 2020[25]. - Operating costs rose to 2.809 billion RMB, an increase of 26.64% compared to the previous year[114]. - The gross profit margin for the food industry segment was 15.75%, a decrease of 0.89 percentage points year-on-year[119]. - The gross profit margin for the overall business was 15.75%, which decreased by 0.89% compared to the previous year[137]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares, totaling approximately 57.49 million RMB (including tax) based on a total share capital of 383,237,774 shares as of December 31, 2021[5]. - The company did not propose a capital reserve transfer to increase share capital or issue bonus shares[5]. Audit and Compliance - The company reported a standard unqualified audit opinion from the accounting firm, ensuring the financial report's authenticity and completeness[4]. - There are no non-operating fund occupations by controlling shareholders or related parties, nor any violations in decision-making procedures for external guarantees[7]. - The company emphasizes the importance of the accuracy and completeness of the annual report, with all board members present at the meeting[7]. - The company has passed multiple quality certifications including ISO9001, ISO22000, and HACCP, ensuring high standards in quality control and food safety management[101]. - The company operates in a highly regulated industry with strict market access and food safety barriers, requiring a Food Production License for operations[50]. Market and Industry Trends - The company faced challenges due to external factors such as trade protectionism and the ongoing COVID-19 pandemic, impacting overall economic conditions[34]. - The domestic flavor and fragrance industry in China reached a market sales value of 44.9 billion yuan in 2019, with a compound annual growth rate (CAGR) of 11.12% from 2005 to 2019[150]. - The global flavor and fragrance market reached USD 28.2 billion in 2019, with a compound annual growth rate of 3.27% since 2011[145]. - The Asian flavor and fragrance market is projected to grow to USD 12.19 billion by 2020, representing about 40% of the global market share[149]. - The demand for high-quality, healthy, and organic chocolate is increasing, particularly among the younger generation, indicating a strong market potential for low-sugar and low-fat chocolate products[160]. Business Strategy and Development - The company aims to increase market share in its niche products by providing comprehensive flavor solutions to downstream customers[34]. - The company is focusing on the development of industrial chocolate and jam, as well as emerging industries like prepared dishes[36]. - The company is actively researching new technologies and applications for tobacco flavoring, leveraging its technical reserves in this area[36]. - The company is expanding its food ingredient R&D and manufacturing base to enhance product lines and upgrade product structures[37]. - The company emphasizes innovation and R&D to maintain its core competitiveness and adapt to market diversification trends[35]. - The company aims to enhance its overall strength by broadening financing channels for future development[37]. - The company is committed to integrating industry research and trend analysis with its technical system to continuously explore new business areas[35]. Challenges and Risks - The ongoing COVID-19 pandemic poses risks to the company's operations, particularly in its food ingredient trade business, which relies heavily on international imports[185]. - The company faces challenges in attracting and retaining skilled perfumers, as this talent is often monopolized by larger firms, creating a talent barrier[54]. - The competitive landscape in the flavor and food ingredient industry is intensifying, with larger firms gaining market share, which could disadvantage the company if it does not innovate[190]. - The company faces risks related to accounts receivable losses as its business scales, which could affect cash flow if clients experience financial difficulties[192]. - The company is exposed to foreign exchange risks due to its significant import activities, which could affect its financial performance amid fluctuating currency rates[195]. Product and Service Offerings - The company specializes in the research, manufacturing, and sales of spices, flavorings, and food ingredients, with key products including synthetic and natural spices, edible and daily flavorings, and industrial chocolate[80]. - The company produces food ingredients including industrial chocolate and fruit jams, which are essential for downstream food production[48]. - The company’s chocolate products are primarily industrial chocolate, used by downstream food manufacturers for producing frozen beverages, baked goods, and dairy products[80]. - The company has a diverse range of chocolate products, including soft chocolate sauces and baking chocolate, catering to various applications in the food industry[81][82]. - The company’s jam products are mainly raw material jams supplied to food manufacturers, used in dairy products, baked goods, and beverages[83][84]. Research and Development - The company has a strong research and development capability, holding 49 invention patents (47 domestic, 2 foreign) and 20 utility model patents, significantly enhancing its competitive edge in the flavor industry[96]. - Research and development expenses increased by 17.26% to 39.91 million RMB, driven by new product development[114]. - The company has 140 R&D personnel, representing 11.38% of the total workforce[127]. Customer and Market Engagement - The company has established stable business relationships with numerous well-known domestic and international companies[111]. - The company aims to provide integrated services of "flavoring + food ingredients" to downstream food and beverage enterprises, enhancing its market influence[79]. - The company employs a "sales-driven production" model, ensuring production aligns with customer orders and market demand[86][89]. - The company has established a stable procurement system with reliable suppliers for raw materials, ensuring consistent production quality[85]. Future Outlook - The company aims to enhance its investment in strategic food ingredient manufacturing and expand its industrial chocolate and jam production capacity[177]. - The company plans to strengthen market and customer development, focusing on the baking, frozen beverage, and dairy sectors[181]. - The company emphasizes the importance of talent development and plans to enhance human resource management, including recruitment and training programs[182]. - The company aims to strengthen its governance structure to ensure effective decision-making and management across its subsidiaries[183].