HXPP(SZ:002228)2022-04-20 16:00Financial Performance - The company reported a significant increase in revenue, with a year-on-year growth of 15% in 2021, reaching a total revenue of 1.2 billion RMB[18]. - The company's operating revenue for 2021 was ¥17,548,783,681.24, representing a 46.16% increase compared to ¥12,006,566,056.57 in 2020[24]. - Net profit attributable to shareholders decreased by 24.73% to ¥218,353,873.41 in 2021 from ¥290,079,358.76 in 2020[24]. - The total profit for 2021 was ¥243,927,566.77, which is a decrease of 37.06% year-over-year[54]. - The basic and diluted earnings per share both fell by 25.00% to ¥0.18 in 2021 from ¥0.24 in 2020[25]. - The net cash flow from operating activities was ¥300,069,074.25, down 14.15% from ¥349,534,205.50 in 2020[25]. - The weighted average return on equity decreased to 6.39% in 2021 from 8.98% in 2020, a decline of 2.59%[25]. - The company reported a net profit of 7 million RMB for the period from June 1, 2016, to December 31, 2016, with a commitment to achieve a total of 7.2 million RMB for the first half of 2021[186]. - The actual performance for the first half of 2021 was 645.13 million CNY, which did not meet the expected performance due to rising raw material prices and delayed product price adjustments[193]. Dividend Distribution - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares (including tax) to all shareholders based on the total share capital as of the dividend record date[4]. - The company distributed a cash dividend of ¥122,195,004.50, amounting to ¥1.00 per 10 shares, based on a total share capital of 1,221,950,045 shares after deducting repurchased shares[157]. - The total cash dividend for the year is projected to be ¥308,590,382.99, which represents 100% of the distributable profit of ¥448,238,407.72[159]. - The company plans to distribute a cash dividend of ¥1.50 per 10 shares, with an estimated total cash dividend of ¥179,749,736.25 based on the adjusted share capital[160]. - The board of directors has approved a dividend payout of 0.5 CNY per share, totaling 50 million CNY[148]. Market Expansion and Strategy - The company is focusing on expanding its market presence, particularly in the e-commerce packaging sector, which is expected to grow by 20% annually[18]. - The company plans to expand its paper-plastic packaging production capacity with new production lines in Thailand and Shanghai[58]. - Market expansion plans include entering two new provinces, aiming for a 5% market share in those regions within the next year[133]. - The company is considering strategic acquisitions to enhance its product offerings, with a budget of 300 million yuan earmarked for potential deals[133]. - The company plans to enhance its core competitiveness by integrating digital printing and IT technologies, focusing on innovative packaging solutions such as digital variable printing and AR packaging[103]. Research and Development - The company has a strong focus on R&D, with established innovation centers for packaging technology and flexographic printing[49]. - The company invested ¥30,452.72 million in R&D during the reporting period, with total R&D investment over the last three years amounting to ¥63,576.94 million[58]. - Research and development expenses rose by 56.77% to ¥304,527,175.19 in 2021 from ¥194,256,387.09 in 2020, reflecting increased investment in R&D[74]. - The company has invested 50 million CNY in R&D for new packaging technologies aimed at sustainability[148]. - The number of R&D personnel increased by 30.03% to 788 in 2021, up from 606 in 2020[76]. Operational Efficiency and Cost Management - The company has engaged in strategic partnerships to enhance its supply chain efficiency, which is projected to reduce costs by 10%[18]. - The company is focusing on digital and intelligent transformation in packaging production to enhance efficiency and profitability amid rising labor costs[38]. - The company plans to implement a comprehensive cost reduction and efficiency enhancement strategy in 2022, focusing on budget management and optimizing product structure to increase the sales proportion of high-margin products[100]. - The company achieved a cash dividend payout ratio of 113.03% of the average distributable profit over the last three years, ensuring shareholder returns[59]. - The gross profit margin for the packaging manufacturing sector was 10.94%, while the gross profit margin for the industrial paper segment was 0.75%[65]. Environmental Commitment - The company is committed to sustainable practices and has implemented measures to reduce its environmental impact, aligning with industry standards[18]. - The company has been recognized as a key pollutant discharge unit by environmental protection authorities, indicating its significant environmental impact[173]. - The company has implemented various pollution control measures and continuously upgrades its environmental protection facilities to ensure compliance with national emission standards[174]. - The company has established emergency response plans for environmental incidents and conducts regular training to enhance its response capabilities[176]. - The company is committed to adhering to environmental laws and regulations, with ongoing monitoring of its noise emissions and pollution control measures[178]. Governance and Compliance - The company’s board of directors has confirmed that all members attended the meeting to review the annual report, ensuring governance transparency[4]. - The company’s financial statements have been audited by Lixin Certified Public Accountants, ensuring compliance and accuracy in reporting[23]. - The company maintains strict compliance with information disclosure regulations, ensuring accurate and timely communication to all investors[119]. - The company operates independently from its controlling shareholders in terms of business, personnel, assets, and finance, with no unfair related transactions[120]. - The company has established effective communication channels with investors, including a dedicated investor relations platform[119]. Risks and Challenges - The company is facing risks related to macroeconomic fluctuations and raw material price volatility, which could impact future performance[4]. - The company faces macroeconomic risks due to its reliance on downstream industries like home appliances and food and beverage, which may be affected by economic fluctuations[105]. - Raw material costs, particularly for corrugated paper and boxboard, account for over 65% of the company's operating costs, making price fluctuations a significant risk[107]. - Ongoing COVID-19 pandemic risks could impact production and operations, prompting the company to enhance communication with clients and suppliers to manage these challenges[110]. - Rapid growth may lead to management risks as the company's organizational structure becomes more complex, potentially affecting operational efficiency[109].