Layn(SZ:002166)2022-04-14 16:00Financial Performance - The company's operating revenue for 2021 was ¥1,053,235,426.39, representing a 34.40% increase compared to ¥783,671,413.74 in 2020[20]. - The net profit attributable to shareholders for 2021 was ¥118,438,152.08, a 37.74% increase from ¥85,989,396.92 in 2020[20]. - The net profit after deducting non-recurring gains and losses was ¥85,345,120.37, which is a 58.95% increase from ¥53,693,065.83 in 2020[20]. - The company's cash flow from operating activities showed a significant decline, with a net cash flow of ¥26,240,101.96, down 87.11% from ¥203,583,341.85 in 2020[20]. - The total assets at the end of 2021 were ¥3,259,000,827.99, reflecting a 3.05% increase from ¥3,162,557,184.02 at the end of 2020[21]. - The net assets attributable to shareholders increased by 4.37% to ¥1,868,651,254.39 at the end of 2021, compared to ¥1,790,411,360.98 at the end of 2020[21]. - The company reported a basic earnings per share of ¥0.21 for 2021, a 40.00% increase from ¥0.15 in 2020[20]. - The weighted average return on equity for 2021 was 6.48%, up from 4.86% in 2020[20]. - The company achieved total operating revenue of 1,053.24 million yuan in the reporting period, representing a year-on-year growth of 34.40%[73]. - The natural sweetener business generated revenue of 633.57 million yuan, a year-on-year increase of 54.86%, accounting for 60.15% of total revenue[73]. - The plant extraction segment reported revenue of 1,015.26 million yuan, with a year-on-year growth of 55.64%[73]. - The tea extraction business generated revenue of 188.43 million yuan in 2021, with tea extraction contributing 163.65 million yuan, representing 15.54% of the company's total revenue[98]. Business Strategy and Operations - The company reported a plan not to distribute cash dividends, issue bonus shares, or increase capital from reserves[5]. - The company emphasizes the importance of understanding risks such as policy, market, raw material procurement, technology, and financial risks[4]. - The company has established several wholly-owned subsidiaries, including LAYN USA and LAYN EUROPE[12]. - The company aims to become the most trusted provider of natural health products and services globally[62]. - The company is focused on the extraction of functional plant ingredients, catering to various industries including food, beverage, and cosmetics[63]. - The company has established partnerships with numerous universities and research institutions to enhance its R&D capabilities and promote technology transfer[79]. - The company emphasizes a "cost leadership" strategy to enhance labor productivity and control production costs through organizational optimization and equipment upgrades[70]. - The company is actively developing new products, with five projects underway, including two that have entered trial production[123]. - The company plans to enhance communication with clients and suppliers to mitigate the adverse effects of the pandemic, while also improving product quality and reducing costs through technological advancements[168]. Market Trends and Industry Insights - The plant extraction industry is experiencing growth, with China's exports of plant extracts reaching 96,000 tons in 2020, a year-on-year increase of 11.0%[32]. - The natural sweetener industry is experiencing rapid growth due to increasing consumer awareness of health risks associated with excessive sugar intake, leading to a global focus on "sugar reduction" and "sugar control"[33]. - The global market for steviol glycosides is projected to exceed $1.6 billion by 2028[37]. - The demand for low-sugar and no-sugar products is rapidly increasing, with consumers showing a preference for natural sweeteners over synthetic ones[44]. - The market for tea polyphenols, a key component in tea extracts, has broad applications in food, pharmaceuticals, and daily consumer products due to its health benefits[52]. - The functional food market in China grew from 114 billion yuan in 2012 to 358.6 billion yuan in 2019, with a compound annual growth rate of 17.8%[58]. - The company expects the plant extraction industry to experience rapid growth driven by increasing consumer demand for natural and healthy products[152]. Research and Development - The company has successfully developed over 300 standardized plant extract products, including monk fruit extract and tea extract[63]. - The company increased its R&D investment to 38.98 million yuan in 2021, a 62.12% increase year-on-year, resulting in the development of three new stevia-related products and 15 plant extraction R&D projects[99]. - The company has established a robust internal control system to enhance governance and compliance with regulations[181]. - The company is committed to capital operations and seeks investment and acquisition opportunities that align with its strategic goals[160]. - The company will continue to develop its research capabilities to support consumer brands and enhance customer service[161]. Governance and Management - The company has established a complete governance structure including a shareholders' meeting, board of directors, and supervisory board, ensuring independent decision-making[190]. - The board of directors consists of 7 members, including 3 independent directors, ensuring compliance with legal requirements[182]. - The company has independent financial management systems and does not share bank accounts with controlling shareholders[189]. - The company emphasizes the importance of independent directors in providing professional advice to the board[183]. - The company has not faced any penalties from securities regulatory agencies for its current or recently departed directors and supervisors[197]. Risks and Challenges - The company faces potential policy risks related to food safety regulations and the evolving legal landscape for industrial hemp[165]. - The COVID-19 pandemic has increased market volatility, with nearly 70% of the company's revenue and industrial hemp projects coming from international markets, making them vulnerable to global economic fluctuations[167]. - The company relies on natural raw materials like monk fruit and stevia, which are subject to supply risks due to seasonal and regional factors, impacting production costs and availability[170]. - The company has seen an increasing reliance on its top five customers, prompting a strategy to diversify its client base and expand product offerings to reduce dependency[172]. - The company faces technology risks in the fast-evolving natural extraction industry, necessitating continuous R&D investment and talent acquisition to maintain a competitive edge[173]. Cash Flow and Financial Management - Operating cash inflow totaled approximately ¥1.11 billion, an increase of 21.61% compared to ¥914.68 million in 2020[127]. - The net increase in cash and cash equivalents was -¥79.10 million, a significant decrease of 193.23% compared to -¥26.97 million in 2020[127]. - The company's cash and cash equivalents at the end of 2021 were approximately ¥97.41 million, down from ¥213.69 million at the beginning of the year, a decrease of 3.77% in total asset proportion[133]. - The company has enhanced its financial management to address risks related to foreign exchange fluctuations and increasing accounts receivable and inventory levels[175].