HANGZHOU TOKA(SH:688571)2023-04-18 16:00Financial Performance - The proposed cash dividend for 2022 is CNY 1.60 per 10 shares, totaling CNY 51.20 million, which represents 64.34% of the net profit attributable to the parent company [5]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the fiscal year, representing a 15% year-over-year growth [22]. - The company's operating revenue for 2022 was approximately CNY 1.14 billion, a decrease of 0.80% compared to 2021 [24]. - The net profit attributable to shareholders decreased by 29.53% to CNY 79.57 million in 2022 [24]. - Basic earnings per share fell by 28.57% to CNY 0.25, while diluted earnings per share remained the same [25]. - The net cash flow from operating activities increased by 24.01% to CNY 146.72 million [24]. - The company's total assets decreased by 1.29% to approximately CNY 1.77 billion at the end of 2022 [24]. - The overall gross margin level decreased by 2.96 percentage points due to rising raw material costs influenced by international oil price fluctuations [97]. - The company’s revenue for the reporting period was CNY 1,139,480,901.90, a decrease of 0.80% compared to the previous year [104]. Research and Development - The company is investing 50 million RMB in R&D for new printing technologies aimed at enhancing production efficiency by 30% [22]. - Research and development expenses accounted for 3.82% of operating revenue, slightly up from 3.81% in 2021 [25]. - The company added 2 invention patents and 1 software copyright during the reporting period, bringing the total number of invention patents to 20 [40]. - The company has developed core technologies in UV ink, gravure ink, and liquid ink, supported by 20 authorized patents [57]. - The R&D investment for the year was approximately ¥43.54 million, a slight decrease of 0.60% compared to the previous year, with R&D expenses accounting for 3.82% of revenue [75]. - The company is focusing on developing green ink products and technologies to support the printing and downstream manufacturing industries in reducing carbon emissions [131]. - The company is committed to energy-saving and environmentally friendly practices in product development, production, logistics, and infrastructure [131]. Market Strategy and Expansion - The company plans to increase its total share capital from 320 million shares to 416 million shares by issuing 3 new shares for every 10 shares held, resulting in a total of 96 million new shares [5]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion RMB [22]. - Market expansion plans include entering Southeast Asia, targeting a 10% market share within three years [22]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 100 million RMB allocated for potential targets [22]. - The company is actively exploring talent development through partnerships with universities, focusing on digital talent in areas such as digital printing and functional materials [44]. - The company aims to enhance its production capacity for liquid inks and functional materials, targeting an annual output of 10,000 tons of liquid ink and 8,000 tons of functional materials in its second-phase project [173]. Corporate Governance - The board of directors and management confirm the accuracy and completeness of the annual report [4]. - The company has not reported any instances where more than half of the directors could not guarantee the authenticity of the annual report [8]. - The company has established specialized committees under the board, including an audit committee, strategic committee, nomination committee, and compensation and assessment committee to ensure professional decision-making [180]. - The company has improved its internal control system and governance structure to enhance operational efficiency and promote sustainable development [179]. - The company actively communicates with investors and has designated a board office to manage investor relations and information disclosure [180]. Environmental and Regulatory Compliance - The company continues to lead the green and sustainable development of the ink industry by participating in the formulation and revision of 14 national/industry standards [40]. - The company is adapting to industry regulations aimed at promoting environmentally friendly and low VOCs inks, which will drive market growth for sustainable products [130]. - The company is committed to promoting energy-saving and environmentally friendly ink products, which are becoming mainstream in the market [165]. - The company is actively adapting to regulatory changes promoting low-VOCs inks, aligning with national policies for green product consumption [55]. Risks and Challenges - There are no significant risks that could materially affect the company's operations during the reporting period [4]. - The company faced increased costs due to rising prices of solvents, resins, and other chemicals, impacting net profit significantly [26]. - The company is at risk of losing market share if it fails to continuously develop new products that meet customer needs [94]. - The company faces risks from intensified market competition, particularly in the UV ink sector, as more companies enter the market [96]. - The company is currently facing risks related to exchange rate fluctuations, particularly with the USD and JPY, which could impact its financial performance [102]. Product Development and Innovation - New product launches included a line of eco-friendly inks, which are expected to capture 5% of the market share within the next two years [22]. - The company has developed a new plant-based ink formula that features fast curing, low VOCs, and low odor, which is now being commercially promoted [66]. - The company launched over 100 automatic and semi-automatic ink supply devices, supporting energy-saving and waste reduction efforts in the printing industry [67]. - The company completed the development of water-based ink for decorative and digital paper, with performance meeting or exceeding imported advanced inks [78]. - The company is focusing on developing green printing materials and digital printing technology to enhance color management systems [79]. Financial Position and Investments - The company's cash and cash equivalents increased by 112.98% to ¥723,234,604.89, compared to ¥339,582,756.57 in the previous period, primarily due to the maturity of large deposits and structured deposits [124]. - The company's long-term equity investments increased by 100% to ¥15,290,900.98, indicating an increase in external investments [124]. - The company has invested a total of 19,550,000 RMB in external equity investments during the reporting period, a decrease of 93.31% compared to the previous year [156]. - The company holds financial assets valued at 535 million RMB at the beginning of the period, with a fair value change loss of 200 million RMB during the period, resulting in an ending balance of 335 million RMB [160].