New East(SH:603110)2022-04-27 16:00Financial Performance - The company's operating revenue for 2021 was CNY 395,886,104.52, a decrease of 4.60% compared to CNY 414,972,525.62 in 2020[23]. - The net profit attributable to shareholders for 2021 was CNY 55,692,082.55, an increase of 11.88% from CNY 49,777,633.37 in 2020[24]. - The net profit after deducting non-recurring gains and losses was CNY 7,843,100.31, a significant decrease of 83.85% compared to CNY 48,572,040.11 in 2020[24]. - The net cash flow from operating activities was CNY 26,223,388.92, down 66.31% from CNY 77,838,470.53 in 2020[24]. - As of the end of 2021, the total assets amounted to CNY 837,268,383.93, an increase of 6.93% from CNY 782,978,633.44 at the end of 2020[24]. - The net assets attributable to shareholders reached CNY 683,600,012.08, an increase of 8.87% from CNY 627,907,929.53 at the end of 2020[24]. - Basic earnings per share were 0.28 yuan, up 12.00% from 0.25 yuan in 2020[25]. - The weighted average return on equity increased to 8.49%, up 1.16 percentage points from 7.33% in 2020[25]. Revenue Breakdown - The company's main business revenue was CNY 392.51 million, with a main business cost of CNY 289.02 million[52]. - The revenue from packaging ink was CNY 250.31 million, with a gross margin of 25.78%, down 7.71 percentage points year-on-year[54]. - The revenue from electronic ink was CNY 21.93 million, with a gross margin of 28.57%, a decrease of 5.31 percentage points from the previous year[54]. - The revenue from adhesive products was CNY 120.27 million, with a gross margin of 27.18%, down 9.73 percentage points year-on-year[54]. - The total cost of main business was CNY 289.02 million, with a gross margin of 26.37%, reflecting a decrease of 8.20 percentage points compared to the previous year[54]. Market Trends and Challenges - The ink industry in China is growing at a rate of over 10% annually, driven by the booming printing and packaging sectors[38]. - The company faced challenges due to raw material price increases and supply chain issues, impacting the chemical industry[34]. - The production of solvent-based inks is gradually decreasing, while the market share of water-based inks is rapidly increasing due to environmental concerns[38]. - The digital printing ink market is still dominated by international brands, indicating a need for domestic development and promotion of high-end digital printing inks[40]. Research and Development - The company reported a total R&D expenditure of CNY 18.08 million, accounting for 4.57% of total revenue[64]. - The company has established a research and development center since September 2007, focusing on technological innovation and has a team of over 59 R&D personnel with higher education qualifications[81]. - The company emphasized continuous innovation and collaboration with universities and research enterprises for product development[35]. Governance and Compliance - The company held five shareholder meetings during the reporting period, ensuring compliance with legal requirements and promoting shareholder participation through online voting[109]. - The company’s board of directors and supervisory board have met legal requirements and actively participated in training to enhance governance and decision-making processes[110]. - The company has established a comprehensive sales and financial risk control system to mitigate potential bad debt risks from customer defaults[105]. Environmental Responsibility - The company has been recognized as one of the "Top Ten Enterprises" in the Chinese food packaging industry and is a certified environmental label product enterprise[78]. - New Oriental Ink Co. has implemented effective pollution prevention facilities, with no administrative penalties from local environmental authorities during the reporting period[158]. - The company has developed an emergency response plan for environmental incidents to minimize potential damages and ensure public safety[161]. Strategic Initiatives - The company plans to innovate in the development of eco-friendly inks and adhesives, targeting future market demands[100]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 300 million allocated for potential mergers[123]. - A new marketing strategy has been implemented, aiming to increase brand awareness by 40% within the next six months[122]. Financial Management - The company has engaged Rongcheng Accounting Firm for auditing services with a total remuneration of ¥657,200.00 for a two-year term[188]. - The company has structured financial products with a total of 75,000,000 RMB and a return rate of 3.30%[197]. - The company has a total of 419,160,500 RMB in collective investment trust plans with a return rate of 7.5%[198].