HANGZHOU TOKA(SH:688571)2022-04-13 16:00Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion CNY for the fiscal year, representing a growth of 15% year-over-year[14]. - The company's operating revenue for 2021 was CNY 1,148,662,209.11, representing a year-on-year increase of 16.37% compared to CNY 987,054,125.21 in 2020[22]. - The net profit attributable to shareholders for 2021 was CNY 112,913,578.20, a 3.34% increase from CNY 109,265,288.59 in 2020[22]. - The cash flow from operating activities for 2021 was CNY 118,316,305.30, down 9.72% from CNY 131,052,686.27 in 2020[22]. - The gross margin improved to 35%, up from 30% in the previous year, reflecting better cost management and pricing strategies[14]. - The company achieved an investment income of ¥21,085,692.15, a significant increase of 235.84% compared to ¥6,278,541.33 from the previous year[92]. - The company’s annual production capacity includes 5,000 tons of UV ink and 10,000 tons of liquid ink, which began operations in 2020[88]. - The company’s brand "Hanghua" is recognized as a high-tech, high-quality, and high-service brand in the national ink industry[81]. Research and Development - Investment in R&D has increased by 25%, focusing on the development of eco-friendly ink products and advanced printing technologies[14]. - The R&D expenditure as a percentage of operating revenue was 3.81% in 2021, down from 3.97% in 2020[23]. - The company launched the MontAge series of LED-UV curing inks, addressing high energy consumption and low efficiency issues in traditional printing processes[33]. - The company has established a robust technical research department with five research divisions and an analysis testing center, focusing on over ten major research projects annually[74]. - The company has maintained a research and development team of 91 members, accounting for 13.64% of the total workforce, with an average salary of ¥22.31 million[73]. - The company is developing a new resin for yellow pigment dispersion, with an investment of 2,377,099.40 RMB aimed at enhancing the flow properties of inks[68]. - The company is focused on expanding its market presence through innovative product development and strategic investments in R&D[68]. Market Strategy and Expansion - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[14]. - The company is committed to expanding its product line to enhance environmental friendliness and meet energy-saving requirements, thereby increasing market share[38]. - The company aims to enhance brand influence through personalized services to key customers in the printing industry, thereby increasing customer loyalty[42]. - The company is actively pursuing the development of low VOCs and environmentally friendly ink products, aligning with national policies promoting green printing[46]. - The company is focused on achieving a balance between business growth and environmental protection through sustainable practices[155]. Corporate Governance - The company has established a robust governance structure, ensuring independence from major shareholders and compliance with relevant laws and regulations[165]. - The company emphasizes investor relations and has established a dedicated office for information disclosure and management, ensuring effective communication with shareholders[166]. - The company has held two shareholder meetings during the reporting period to ensure equal treatment of all investors and uphold governance standards[164]. - The board of directors convened six meetings, maintaining compliance with legal requirements and ensuring effective decision-making processes[165]. - The company has established specialized committees to enhance governance and oversight, including audit, nomination, remuneration, and strategy committees[187]. Environmental Commitment - The company has received the "Ten Ring Certification," indicating compliance with environmental standards, which is expected to enhance brand reputation and customer trust[14]. - The company is committed to advancing green, digital, intelligent, and intensive development in the ink industry, aligning with the broader trends in the printing sector[57]. - The company’s ink products were included in the 2021 Green Raw and Auxiliary Material Product Directory, enhancing future market expansion opportunities[125]. - The company is focused on developing innovative products using green resources, including plant oils and modified resins, to meet high-quality packaging demands[160]. - The company aims to align its product development with national strategies for carbon neutrality and environmental sustainability[122]. Risk Management - The company has not faced any significant risks that could materially affect its operations during the reporting period[4]. - The company is exposed to risks from intensified market competition, particularly in the UV ink sector, as more companies enter the market[85]. - The company’s operations may be impacted by stricter environmental regulations, necessitating increased investment in environmental protection measures[85]. - The company is facing potential risks from fluctuating exchange rates, particularly with the USD and JPY, which could impact its international pricing competitiveness[90]. Employee and Management - The company emphasizes employee training and development, implementing various training programs to enhance skills and management capabilities[196]. - The total number of employees in the parent company is 523, and in major subsidiaries, it is 144, resulting in a total of 667 employees[194]. - The company has a cash dividend policy that mandates a minimum of 10% of the distributable profit to be distributed as cash dividends each year[198]. - The company has established a risk management department led by Chen Ke, who has been in position since September 2019[180]. - The company’s board of directors approved the remuneration policies and plans for directors and senior management, which are based on industry standards and company performance[183].