Green Pine(SZ:300132)2023-04-26 16:00Financial Performance - The company reported a negative net profit for the year 2022, with specific reasons and measures for improving profitability detailed in the management discussion section [4]. - The company's operating revenue for 2022 was ¥2,917,366,476.48, a decrease of 21.01% compared to ¥3,693,254,673.78 in 2021 [24]. - The net profit attributable to shareholders for 2022 was -¥742,420,713.32, an improvement of 18.56% from -¥911,665,603.99 in 2021 [24]. - The net cash flow from operating activities increased significantly by 670.74% to ¥340,636,749.11 in 2022, compared to ¥44,195,785.39 in 2021 [24]. - The total assets at the end of 2022 were ¥3,194,595,271.44, down 30.41% from ¥4,590,769,337.03 at the end of 2021 [24]. - The company reported a basic earnings per share of -¥1.4372 for 2022, an improvement of 18.56% from -¥1.7648 in 2021 [24]. - The weighted average return on equity was -42.25% for 2022, compared to -34.70% in 2021, indicating a decline in profitability [24]. - The company’s net assets attributable to shareholders decreased by 35.41% to ¥1,379,329,288.70 at the end of 2022 from ¥2,135,452,390.48 at the end of 2021 [24]. Business Strategy and Operations - The company plans not to distribute cash dividends, issue bonus shares, or increase share capital from reserves [5]. - The company completed the transfer of 100% equity in two subsidiaries for a total consideration of ¥28,422.47 million, ceasing operations in the turpentine deep processing business [35]. - The company aims to enhance its sustainable profitability and development potential by increasing R&D investment and new product development efforts [183]. - The company plans to optimize production and management to reduce costs and improve efficiency through streamlined systems and supply chain management [186]. - The company will continue to strengthen product formula innovation and production technology innovation to enhance industry competitiveness [190]. - The company targets becoming a leading international cosmetics manufacturing service provider by focusing on quality clients and products [185]. - The company plans to actively diversify and explore the cosmetics and consumer goods industry through team integration, project investment, and external mergers and acquisitions [192]. Product Development and Innovation - The company continues to innovate and develop competitive products for downstream customers, enhancing market presence [44]. - The report highlights the use of advanced technologies in product development, such as vacuum freeze-drying for certain masks [44]. - The company emphasizes the importance of natural ingredients, with 94% of some products made from renewable natural components [46]. - The company has developed multiple new mask product lines, including the rapid-dissolving essence mask series and freeze-dried mask series [110]. - The company has successfully developed multiple products with skin repair effects using recombinant proteins, which have received positive market feedback [153]. - The company is currently in the technical development phase for a new product utilizing deep-sea fish collagen, aimed at creating a soluble mask with enhanced skin penetration [155]. - The company is committed to developing "natural, efficient, healthy, and additive-free" cosmetic products to meet consumer demand for high-quality skincare solutions [154]. Market Trends and Challenges - The cosmetics market in China for men's skincare reached RMB 8 billion in 2020, with a compound annual growth rate (CAGR) of 15.5% from 2016 to 2020, and it is projected to reach RMB 9.9 billion in 2021, indicating significant growth potential in this segment [82]. - The company faces risks related to intensified market competition in the cosmetics industry, which could affect sales if customer needs are not met [196]. - The cosmetics industry is expected to gradually recover, but risks remain if macroeconomic growth does not improve or consumer preferences become more conservative [193]. - The company will closely monitor changes in the macroeconomic environment and raw material price trends to mitigate risks associated with raw material procurement and price fluctuations [194]. Supply Chain and Procurement - The company has established long-term partnerships with over 30 global raw material suppliers, enhancing product quality and stability [107]. - The procurement model for raw materials in the cosmetics business shows that packaging materials account for 44.78% of total procurement, while raw materials account for 34.87% [97]. - The company has implemented a strict procurement management system to ensure the quality of raw materials, which significantly impacts the quality of cosmetic products [56]. - The company has established a stable supply chain for turpentine by directly collaborating with producers in key regions, thereby reducing procurement costs and supply risks [62]. Financial Management - The company recognized an asset impairment loss of CNY 575.75 million, which accounted for 71.77% of total profit, mainly due to goodwill impairment [163]. - The company received CNY 18.59 million in government subsidies, which contributed -2.32% to total profit, indicating reliance on non-sustainable income sources [163]. - The company reduced its short-term borrowings by CNY 201.75 million, resulting in a decrease in the proportion of short-term debt from 9.51% to 7.35% of total liabilities [165]. - The company has a strong commitment to sustainable development, as evidenced by its various environmental and safety certifications [102]. Corporate Governance and Compliance - The company’s financial report has been confirmed by the board of directors and senior management for its authenticity and completeness [4]. - The company has obtained various certifications, including a cosmetic production license valid until April 2027, ensuring compliance with industry standards [101]. - The company has a robust quality control system and supply chain resources, contributing to its competitive edge in the ODM market [104]. - The company emphasizes quality control, adhering to international quality standards to prevent potential quality issues that could harm its brand reputation [197].