Chahua(SH:603615)2022-03-18 16:00Financial Performance - In 2021, the company reported a total revenue of ¥798,787,754.62, representing a year-on-year increase of 15.78% compared to ¥689,892,417.47 in 2020[21] - The net profit attributable to shareholders was -¥19,666,904.31 in 2021, a significant decline from a profit of ¥37,049,149.45 in 2020[21] - The basic earnings per share for 2021 was -¥0.08, compared to ¥0.15 in 2020, indicating a substantial drop in profitability[22] - The weighted average return on equity decreased to -1.57% in 2021, down from 2.82% in 2020, reflecting a decline of 4.39 percentage points[22] - Gross profit for the period was ¥172,605,429.10, down 11.83% from ¥195,773,003.03 in the previous year, resulting in a gross margin of 21.61%, a decrease of 6.77 percentage points from 28.38%[42] - Operating costs rose to ¥626,182,325.52, a 26.73% increase from ¥494,119,414.44, primarily due to rising raw material prices[43] - The company reported a net profit attributable to shareholders of -19,666,904.31 CNY for the year 2021, and a net profit of -25,816,045.31 CNY for the parent company[142] Cash Flow and Assets - The company's total assets decreased by 5.06% to ¥1,392,690,688.73 at the end of 2021, down from ¥1,466,970,562.37 in 2020[21] - The cash flow from operating activities was -¥7,448,299.96 in 2021, a stark contrast to a positive cash flow of ¥1,712,356.67 in 2020[21] - The net cash flow from operating activities was -CNY 7,448,299.96, a decrease of CNY 9,160,656.63 compared to CNY 1,712,356.67 in the previous year[59] - Cash and cash equivalents decreased by 34.2% to CNY 284.59 million, primarily due to payments for project costs and cash dividends[61] - Accounts receivable increased by 7.73% to CNY 122.48 million, reflecting improved collection efforts[61] - Inventory rose by 13.68% to CNY 239.13 million, indicating increased production and stock levels[61] Operational Challenges and Strategies - The company faced challenges due to rising raw material prices and increased sales expenses, which contributed to the decline in net profit[22] - The company is actively exploring new development strategies amid complex external environments and rising costs[30] - The company is focusing on expanding online brand marketing and optimizing sales channels[31] - The company is actively exploring new sales models, including live streaming and community group buying, to enhance its e-commerce presence[38] - The company has relocated its production lines to optimize supply chain efficiency and reduce operational costs[32] Research and Development - R&D investment for the year reached CNY 10.1089 million, accounting for 1.27% of revenue, focusing on new product development in water and household cleaning categories[32] - The company has established a comprehensive R&D system and obtained 1 utility model patent and 18 design patents during the reporting period[75] - The company is focused on expanding its product offerings in the water and household cleaning categories, including new products like coffee cups and thermos bottles[75] Market Position and Competition - The company operates in a competitive market for household plastic products, with high-end products primarily dominated by foreign brands, while domestic brands occupy the mid-range market[91] - The mid-range market is expected to grow due to the increasing number of middle-income consumers, requiring strong cost control and brand recognition from manufacturers[92] - The company is committed to increasing its market share in the home plastic products industry as urbanization progresses and consumer spending rises[93] Corporate Governance - The company has established a robust corporate governance structure, including rules for shareholder meetings and board operations, ensuring effective decision-making and protection of shareholder rights[104] - The company held three shareholder meetings during the reporting period, all resolutions were passed[109] - The board of directors consists of nine members, including three independent directors, and has established various committees to enhance governance and oversight[107] Shareholder Relations and Remuneration - The total remuneration for all directors and senior management during the reporting period was 649,030 RMB[112] - The company has a clear cash dividend policy, which states that dividends will only be distributed if the company is profitable and has positive retained earnings[143] - The company has implemented an employee stock ownership plan and related incentive measures, with details disclosed in previous announcements[145] Future Outlook - In 2022, the company aims to achieve a sales target of 960 million yuan, focusing on improving governance and decision-making mechanisms[95] - The company plans to raise up to RMB 400 million through a non-public offering of A-shares, with a maximum of 72,942,000 shares to be issued, representing up to 30% of the total share capital prior to the offering[182] - The company anticipates that the business with related parties will see substantial development in the upcoming year[175]