Apple Group(SH:603020)2023-04-26 16:00Financial Performance - In 2021, the company's operating revenue reached RMB 3,344,556,762.67, representing a 25.35% increase compared to RMB 2,668,255,089.70 in 2020[24]. - The net profit attributable to shareholders was RMB 202,604,790.46, up 19.72% from RMB 169,236,456.22 in the previous year[24]. - The net cash flow from operating activities decreased by 37.85% to RMB 136,869,229.20 from RMB 220,238,943.33 in 2020[24]. - The total assets at the end of 2021 were RMB 3,846,474,199.48, a 39.45% increase from RMB 2,758,354,296.53 at the end of 2020[24]. - The company's net assets attributable to shareholders increased by 40.39% to RMB 3,068,284,164.27 from RMB 2,185,581,819.28 in 2020[24]. - The basic earnings per share rose by 15.90% to RMB 0.6130 in 2021, compared to RMB 0.5289 in 2020[25]. - The weighted average return on equity increased to 8.50% in 2021 from 7.97% in 2020, reflecting a 0.53 percentage point increase[25]. - The company achieved a total revenue of RMB 3.345 billion in 2021, representing a year-on-year growth of 25.35%[32]. - The company reported a significant increase in investment activities, with a net cash outflow of 798.58 million RMB due to fixed asset acquisitions[111]. - The company achieved a revenue of 3.345 billion RMB in 2021, representing a year-on-year growth of 25.35%[109]. Dividend and Capital Management - 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[4]. - The company does not plan to increase capital reserves or issue bonus shares[4]. - The company successfully completed a private placement of 63,237,774 shares, raising a net amount of RMB 731 million, which will enhance its food ingredient business and overall market competitiveness[35]. Audit and Compliance - The company has received a standard unqualified audit report from the accounting firm, ensuring the financial report's authenticity, accuracy, and completeness[3]. - The company has committed to ensuring the authenticity and completeness of the annual report, with all board members present at the meeting[6]. - There are no non-operating fund occupations by controlling shareholders or related parties, nor any violations in decision-making procedures for external guarantees[6]. - The company has passed multiple quality certifications including ISO9001, ISO22000, and HACCP, ensuring high product quality and safety standards[98]. Market and Industry Trends - The company faced challenges due to external factors such as trade protectionism and the ongoing COVID-19 pandemic, impacting global economic conditions[31]. - The company is recognized as the largest producer of food flavoring in China, maintaining a competitive edge in technology, service, and product quality[72]. - The global flavor and fragrance market reached approximately 28.2 billion in 2019, with a compound annual growth rate of 3.27% since 2011[141]. - The domestic flavor and fragrance industry in China has seen a stable growth period, with market sales reaching 44.9 billion yuan in 2019, reflecting a compound annual growth rate (CAGR) of 11.12% from 2005 to 2019[146]. - The global chocolate market is projected to grow from $44.35 billion in 2019 to $61.34 billion by 2027, maintaining a growth rate of 2% to 4.4%[151]. Risks and Challenges - The management has highlighted various risks faced by the company, which are detailed in the report's management discussion and analysis section[7]. - The company faces risks related to the ongoing impact of the COVID-19 pandemic on its operations, particularly in international trade and supply chains[180]. - There is a growing concern regarding food safety, which could affect the company's brand image and sales if not managed properly[181]. - Changes in consumer preferences pose a risk, as the company must innovate to meet evolving demands or risk losing market share[183]. - The competitive landscape in the flavor and food ingredient industry is intensifying, requiring continuous innovation to maintain a competitive edge[185]. Research and Development - The company is expanding its R&D capabilities to improve product taste and flavor, adapting to market diversification and segmentation trends[34]. - 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[93]. - Research and development expenses increased by 17.26% to 39.91 million RMB, driven by new product development efforts[111]. 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[77]. - The company’s food ingredients include 19 categories such as carbohydrates, proteins, fats, and various fruit and vegetable products[44]. - The company’s chocolate products are primarily industrial chocolate, used by downstream food manufacturers for producing frozen beverages, baked goods, and dairy products[77]. - The company’s jam products are mainly raw jams supplied to food manufacturers, used in dairy products, baked goods, and beverages, with categories including fruit jams and grain jams[80][81]. Governance and Shareholder Relations - The company held 1 annual and 1 extraordinary general meeting during the reporting period, ensuring equal rights for all shareholders, especially minority shareholders[197]. - The controlling shareholder's actions are regulated, with no interference in the company's decision-making or operations, maintaining independence in business operations[198]. - The board of directors consists of 9 members, including 3 independent directors, complying with relevant laws and regulations[199]. - The supervisory board has 3 members, including 1 employee representative, ensuring diligent oversight of the company's operations and financial reporting[200].