Zhejiang Jinghua Laser Technology (SH:603607)2022-04-27 16:00Financial Performance - The company achieved operating revenue of CNY 876,705,373.83 in 2021, representing a year-on-year growth of 24.49%[31]. - The net profit attributable to shareholders of the listed company was CNY 111,191,801.84, an increase of 3.27% compared to the previous year[31]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 99,109,872.55, up by 5.08% year-on-year[31]. - Total assets at the end of 2021 reached CNY 1,220,777,136.74, reflecting an 11.04% increase from the previous year[31]. - The equity attributable to shareholders of the listed company was CNY 968,421,688.43, which is a 7.36% increase compared to the end of 2020[31]. - The basic earnings per share for 2021 was CNY 0.62, a rise of 3.33% from CNY 0.60 in 2020[21]. - The diluted earnings per share also stood at CNY 0.62, consistent with the basic earnings per share[21]. - The weighted average return on equity was 11.89%, a decrease of 0.52 percentage points from the previous year[21]. - The company maintained a positive cash flow from operating activities, amounting to CNY 126,788,767.32, which is a 21.44% increase year-on-year[31]. - The company reported a total revenue of RMB 1.32 billion for the fiscal year 2021, reflecting a year-on-year increase of 15%[160]. - The net profit attributable to shareholders was RMB 250 million, representing a growth of 20% compared to the previous year[160]. Dividend Distribution - The company plans to distribute a cash dividend of 2.50 CNY per 10 shares, totaling 44,629,200.00 CNY (including tax) based on a total share capital of 178,516,800 shares as of December 31, 2021[5]. Audit and Compliance - The company reported a standard unqualified audit opinion from Zhonghui Certified Public Accountants[4]. - The company’s financial report is guaranteed to be true, accurate, and complete by its board of directors and management[9]. - The internal control audit report received a standard unqualified opinion, indicating compliance with regulatory requirements[137]. - The audit report confirms that the financial statements fairly reflect the company's financial position as of December 31, 2021[194]. Operational Risks - The company has identified several operational risks, including changes in national industry policies and increased market competition[8]. - The company faced challenges such as rising raw material prices and power restrictions but still exceeded its production and operational goals for 2021[31]. - The company is addressing the risk of raw material price fluctuations by enhancing research and implementing centralized procurement strategies[101]. - The company faces risks from potential stricter tobacco control policies that could impact the cigarette packaging industry, prompting a focus on new technologies and materials[100]. Research and Development - The company invested 87.64 million yuan in R&D, focusing on functional anti-counterfeiting materials and special new materials, achieving substantial progress in optical anti-counterfeiting technology[34]. - Research and development expenses amounted to CNY 87.64 million, reflecting a growth of 23.31% compared to the previous year[54]. - The company plans to continue enhancing its R&D capabilities and expanding its market presence in the anti-counterfeiting sector[50]. - The company is expanding its research and development efforts in laser holographic and platinum relief packaging materials to capture a larger market share[87]. Market Position and Strategy - The company specializes in laser holographic and platinum embossed optical products, with a focus on high-value applications in packaging for tobacco, alcohol, cosmetics, and pharmaceuticals[45]. - The company has established long-term relationships with major printing companies and holds a significant market share in the tobacco packaging sector[49]. - The company aims to expand its market share in social packaging, particularly in high-demand sectors such as alcohol, cosmetics, and daily consumer goods[94]. - The company has a strategic focus on the cigarette packaging market, leveraging its technical and design advantages to meet customer needs[94]. - The company plans to diversify its business by expanding into social packaging sectors such as liquor, cultural products, consumer electronics, and daily chemicals to mitigate risks from high customer concentration[101]. Environmental Responsibility - The company has implemented environmental monitoring and control measures, ensuring that emissions of particulate matter and sulfur dioxide are below regulatory limits[141]. - Waste gas treatment facilities are operating effectively, with emissions meeting the standards set by local regulations[141]. - The company implemented measures to reduce carbon emissions by adopting emission-free water-based coatings and partially replacing solvent-based coatings with UV coatings[151]. - The company has conducted environmental impact assessments for new projects, ensuring compliance with environmental regulations[146]. Corporate Governance - The company maintained independent operations and governance, ensuring no interference from the controlling shareholder, with a strict separation in personnel, assets, finance, and business[106]. - The board of directors and supervisory board operated in compliance with legal regulations, with independent directors holding a majority in key committees[107]. - The company has established mechanisms to prevent the controlling shareholder from misappropriating company assets[106]. - The company is committed to maintaining compliance with corporate governance standards set by regulatory authorities[107]. Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 12,399, a decrease from 12,572 at the end of the previous month[183]. - The largest shareholder, Zhejiang Xing Sheng Investment Management Co., Ltd., holds 56,456,585 shares, representing 31.63% of the total shares[185]. - The second-largest shareholder, Sun Jiancheng, holds 22,358,974 shares, accounting for 12.52% of the total shares[185]. - The company has established a lock-up period for its shares, with automatic extensions if share prices fall below the issue price during specified periods[155]. Employee and Talent Development - The company emphasizes the importance of talent development and aims to build a strong talent pipeline to support its growth[96]. - The company plans to invest no less than 10 million yuan annually in human resources starting from 2022, aiming to resolve talent gaps within three years[97]. - The total number of employees in the parent company and major subsidiaries is 607, with 389 in production, 30 in sales, 63 in technical roles, and 22 in finance[129]. Strategic Partnerships and Acquisitions - The company is actively pursuing strategic partnerships and potential acquisitions to drive future growth and innovation[160]. - The company has made significant investments in acquisitions, including CNY 72.14 million for a 54.46% stake in Ruimin Packaging[77]. - The company has absorbed and merged with subsidiaries Ruimin Packaging and Oke Chuangying, which were dissolved in November 2021[82]. Financial Management - The company has engaged in various wealth management products, with a total investment of RMB 27,500,000 in bank wealth management products[172]. - The company has a total of RMB 7,000,000 in structured bank deposits, with expected annual returns ranging from 1.49% to 4.31%[174]. - The company has successfully recovered all expected returns from its wealth management investments during the reporting period[174].