Haixin Foods (SZ:002702)2022-04-26 16:00Financial Performance - The company reported a total revenue of 1.5 billion RMB for the year 2021, representing a year-on-year increase of 10%[1]. - The net profit attributable to shareholders was 200 million RMB, an increase of 15% compared to the previous year[1]. - The company's operating revenue for 2021 was ¥1,550,297,708.74, a decrease of 3.45% compared to ¥1,605,751,408.05 in 2020[22]. - The net profit attributable to shareholders was -¥34,434,490.39, representing a decline of 148.49% from ¥71,020,533.43 in the previous year[22]. - The net cash flow from operating activities was -¥47,914,233.44, down 140.13% from ¥119,401,513.38 in 2020[22]. - The sales revenue for 2021 was 1.55 billion yuan, a decrease of 3.45% year-on-year, with a net profit of -34.43 million yuan, down 148.49%[51]. - The company's gross profit margin was 19.22%, a decline of 5.42 percentage points compared to the previous year[51]. - The company reported a net loss for 2021, attributed to various factors including rising costs of raw materials and labor, and increased expense ratios[55]. Market Expansion and Strategy - The company plans to expand its market presence by entering three new provinces in 2022, aiming for a 20% increase in market share[1]. - The company is exploring strategic acquisitions to enhance its product portfolio and expand its distribution channels[1]. - The company plans to expand its market presence by increasing its distribution channels by 20% in the next fiscal year[98]. - Hai Xin Food Co., Ltd. is focusing on enhancing its e-commerce capabilities, aiming for a 30% increase in online sales by the end of 2022[99]. - The company is exploring potential acquisitions to enhance its product portfolio and market share, targeting a 10% increase in market share by 2023[99]. Product Development and Innovation - New product development includes the launch of a premium seafood line, projected to contribute an additional 100 million RMB in revenue in 2022[1]. - The company launched 21 new products during the reporting period, including items like fish skin dumplings and lychee shrimp balls[57]. - The company is developing a new fish product using low-value fish meat, aiming to improve economic value and reduce waste[76]. - The development of mixed fish paste products is underway, focusing on improving gel properties and market competitiveness[77]. - The company has allocated CNY 500 million for research and development in new food technologies over the next three years[99]. Financial Management and Costs - The total sales amount from the top five customers was ¥203,601,854.39, accounting for 13.13% of the annual sales total[70]. - Direct material costs in the food processing manufacturing sector accounted for 69.27% of total operating costs, with a slight increase of 2.43% year-on-year[65]. - The company's comprehensive expense ratio increased by 2.24 percentage points to 20.38% during the reporting period[51]. - Financial expenses surged by 305.75% to ¥2,503,695.47, primarily due to increased bank loan interest and lease liabilities[74]. - The company has established a fair and competitive compensation system, with performance bonuses linked to operational and management indicators[147]. Risk Management - The management highlighted potential risks including supply chain disruptions and fluctuating raw material prices, with strategies in place to mitigate these risks[1]. - The company recognizes the risks associated with management complexity as it scales operations and plans to enhance its management team and governance structure[107]. - The company is committed to preventing the loss of core technical personnel and protecting its technological innovations to maintain competitive advantages[107]. Governance and Compliance - The company has received a notice from the Shenzhen Stock Exchange regarding concerns over the actions of its largest shareholder, which it is addressing through internal investigations and corrective measures[120]. - The company plans to implement a code of conduct for its controlling shareholders to ensure compliance with legal obligations and protect the interests of minority shareholders[123]. - The company has established an independent financial department with a dedicated accounting system and does not share bank accounts with controlling shareholders[119]. - The company has independent control over its assets, with no guarantees provided to shareholders or related enterprises, ensuring no asset misappropriation[118]. Environmental Responsibility - The company has made significant investments in environmental protection, enhancing pollution control measures and ensuring compliance with regulations[165]. - The company has a wastewater treatment system with a processing capacity of 1,500 m³/d, ensuring compliance with environmental standards[164]. - Hai Xin Food Co., Ltd. reported a total COD discharge of 3.56 tons, adhering to the wastewater discharge standards[164]. Employee Management and Development - The total number of employees at the end of the reporting period is 1,989, with 484 in the parent company and 1,505 in major subsidiaries[145]. - The company conducted training for 720 employees across various roles, including sales and management positions, to enhance skills and career development[148]. - The company has organized 15 employees for further education and 10 for EMBA programs to optimize talent structure[148]. Shareholder Relations - The company has a stable profit distribution policy, with no cash dividends or stock bonuses planned for the 2021 fiscal year despite positive distributable profits[152]. - The total remuneration for directors, supervisors, and senior management was 6.9081 million yuan[136]. - The company emphasizes a performance-based compensation structure linked to company effectiveness and long-term interests[134].