Zhengchuan Pharmapack(SH:603976)2022-05-27 16:00Financial Performance - In 2021, the company's operating revenue reached CNY 796,657,258, representing a 58.70% increase compared to CNY 501,981,691 in 2020[22]. - The net profit attributable to shareholders of the listed company was CNY 106,603,635, a 100.95% increase from CNY 53,050,474 in the previous year[22]. - The basic earnings per share for 2021 was CNY 0.71, up 102.86% from CNY 0.35 in 2020[23]. - The total assets of the company increased by 48.01% to CNY 1,960,497,669.74 at the end of 2021, compared to CNY 1,324,609,139.70 at the end of 2020[22]. - The company's net assets attributable to shareholders increased by 12.07% to CNY 1,165,968,552 at the end of 2021[22]. - The net profit after deducting non-recurring gains and losses was CNY 92,449,315.57, a 96.11% increase from CNY 47,140,758.18 in 2020[22]. - The company achieved a revenue of 796.66 million RMB in 2021, representing a 58.70% increase compared to the previous year[31]. - The company reported a 50.11% increase in operating costs, primarily due to the corresponding rise in revenue[41]. - The company achieved a main business revenue of 793.62 million yuan in 2021, an increase of 58.60% compared to the previous year[43]. - The operating cost for the same period was 591.69 million yuan, reflecting a 50.04% increase year-over-year[43]. Cash Flow and Investments - The net cash flow from operating activities was CNY 104,966,819.34, a decrease of 13.82% from CNY 121,794,840.68 in 2020[22]. - The net cash flow from operating activities for the first quarter was 16.71 million RMB, while the fourth quarter saw a decrease to 8.78 million RMB[26]. - The company’s investment activities generated a net cash flow increase due to the utilization of idle funds for investments[43]. - The company received funds from issuing convertible bonds, contributing to the net cash flow from financing activities[43]. Production and Market Expansion - The company successfully issued 4.05 million convertible bonds, raising a total of 405 million RMB for projects related to borosilicate glass production and compatibility research[31]. - The production capacity of borosilicate products significantly increased, with the first borosilicate furnace reaching production efficiency and a second furnace project initiated[31]. - The company is advancing its international strategy by building multiple overseas sales platforms and expanding its international market presence[31]. - The company expanded its high-end pharmaceutical packaging market by establishing strategic partnerships with several well-known pharmaceutical companies[31]. - The revenue from the North China region increased significantly by 422.23% year-over-year, indicating strong market performance[46]. Research and Development - The company has a total of 31 patented technologies, including 2 invention patents, enhancing its research and development capabilities[38]. - The company has increased its research and development expenses to 12.08 million RMB, a rise of 46.34% compared to the previous year, indicating a focus on innovation[41]. - The company is focusing on digital transformation in its workshops to enhance production management and efficiency[31]. - The company is committed to continuous improvement in organizational mechanisms and employee capability enhancement[31]. Risks and Challenges - The company has outlined potential risks in its future development strategy, which investors should consider[8]. - The company recognizes the risk of dependency on the pharmaceutical industry, which could impact its performance if the industry experiences a downturn[73]. - The company is aware of potential risks related to product quality issues from downstream clients, which could adversely affect its sales[74]. - The company is facing significant price competition in the bulk procurement segment, leading to a substantial decrease in winning bid prices, which will increase supply chain and quality risks[68]. - The company anticipates a trend of stronger players dominating the market, as larger firms with better financing and technology capabilities will increasingly partner with pharmaceutical companies[68]. Corporate Governance - The company held one shareholders' meeting during the reporting period, ensuring compliance with legal regulations and protecting minority shareholders' rights[79]. - The board of directors convened eight meetings, adhering to relevant laws and regulations to ensure sound decision-making and protect shareholder interests[79]. - The supervisory board held seven meetings, fully complying with legal requirements to oversee the company's operations[79]. - The company maintains transparent performance evaluation and incentive mechanisms for its directors and managers, linking compensation to industry standards and company performance[80]. - The company actively communicates with minority shareholders to keep them informed about significant developments and gather feedback for board consideration[81]. Environmental Responsibility - The company has established a comprehensive environmental protection system and internal control framework, effectively reducing environmental risks[114]. - Key pollutants such as Chemical Oxygen Demand (COD) and Ammonia Nitrogen were reported at 86 mg/L and 2.28 mg/L respectively, both within the emission standards[115]. - The company constructed a wastewater treatment station and has operational facilities for dust removal and denitrification, achieving compliant pollutant discharge[116]. - The company implemented a full oxygen kiln technology transformation, expected to reduce energy consumption and carbon emissions[122]. - No administrative penalties were reported during the reporting period due to environmental issues[121]. Shareholder Information - The total number of shares held by directors and senior management at the end of the reporting period is 40,198,294 shares, unchanged from the beginning of the year[84]. - The total pre-tax remuneration for directors and senior management during the reporting period amounts to 503.45 million yuan[84]. - The company has a diverse board with a mix of male and female directors, including 3 independent directors[84]. - The company’s chairman, Deng Yong, holds 29,305,364 shares, representing a significant stake[84]. - The actual controllers of the company, including Mr. Deng Yong, Ms. Jiang Hui, and Mr. Deng Qiuhan, have pledged not to interfere in the company's management or infringe on its interests[132].