Cre8 Direct(SZ:300703)2022-04-21 16:00Financial Performance - In 2021, the company's operating revenue was 1,382.96 million yuan, an increase of 27.29% compared to the previous year[4]. - The company's net profit attributable to shareholders was 9.47 million yuan, a decrease of 81.73% year-on-year, primarily due to rising costs and decreased gross margin[4]. - The gross margin for the company's educational and leisure products decreased by approximately 7% due to the depreciation of the USD against the RMB and rising raw material costs[4]. - The company's operating revenue for 2021 was ¥1,382,961,553.54, an increase of 27.29% compared to ¥1,086,506,000.98 in 2020[37]. - The net profit attributable to shareholders was ¥9,466,723.64, a decrease of 81.73% from ¥51,826,045.17 in the previous year[37]. - The net profit after deducting non-recurring gains and losses was ¥618,182.20, down 98.30% from ¥36,353,367.64 in 2020[37]. - The net cash flow from operating activities improved to ¥16,886,823.55, a significant increase of 177.87% compared to -¥21,686,152.15 in 2020[37]. - The total assets at the end of 2021 were ¥1,371,618,597.29, a decrease of 1.94% from ¥1,398,743,532.57 at the end of 2020[37]. - The net assets attributable to shareholders decreased by 2.82% to ¥690,291,665.11 from ¥710,342,832.36 in 2020[37]. - The basic earnings per share dropped to ¥0.05, down 82.76% from ¥0.29 in the previous year[37]. - The weighted average return on equity was 1.35%, a decline of 5.72% compared to 7.07% in 2020[37]. - The company reported a total of ¥8,848,541.44 in non-recurring gains in 2021, down from ¥15,472,677.53 in 2020[43]. Cost and Expense Management - International logistics costs increased by approximately 96% year-on-year, adding around 39.8 million yuan in expenses, while advertising expenses rose by about 63%, increasing by approximately 9.6 million yuan[4]. - Financial expenses, particularly interest expenses, increased by approximately 736 million yuan, representing a growth of about 87% compared to the previous year[4]. - The gross margin for the company's educational and leisure products decreased by approximately 7% due to rising raw material costs and currency exchange rates[71]. - Sales expenses increased by 42.35% to ¥91,773,892.03, primarily due to higher cross-border e-commerce advertising and platform service fees[89]. - Management expenses rose by 18.94% to ¥126,816,242.96, mainly due to increased personnel salaries and benefits[89]. - Financial expenses increased by 33.74% to ¥26,431,577.73, primarily due to higher loan interest expenses[89]. - R&D expenses grew by 9.42% to ¥72,516,117.98, reflecting increased investment in research and development[89]. Strategic Initiatives and Market Expansion - The company plans to enhance R&D investment and improve product quality to increase market competitiveness and expand its product categories[6]. - The company aims to reduce costs and improve efficiency through production line upgrades and technological transformation[6]. - The company is implementing a foreign exchange hedging management system to mitigate risks associated with currency fluctuations[10]. - The company is enhancing its customer credit management system to mitigate risks related to accounts receivable collection[17]. - The company has established a base in Vietnam to mitigate risks associated with US-China trade tensions, while actively expanding into domestic, European, and Southeast Asian markets[18]. - The company is focusing on developing new product categories to enhance research and design value, thereby increasing bargaining power[18]. - The company is actively engaged in research and development of new products and technologies to strengthen its market position[18]. - The company is committed to enhancing its production capabilities and market reach through strategic expansions and partnerships[18]. - The company is focusing on expanding its e-commerce presence through platforms like Amazon and its own website to enhance customer experience and sales[54][55]. - The company is committed to ensuring consumer rights and privacy through effective customer service and secure online transactions[54][55]. - The company aims to enhance its brand presence through partnerships with retail chains and participation in trade shows[63]. - The company is exploring strategic measures to address potential risks from external macroeconomic changes, including customer order shifts and tariff cost negotiations[18]. Research and Development - R&D expenditures for 2021 amounted to CNY 72.52 million, representing 5.24% of total revenue, with a consistent increase in R&D investment over the past three years[68]. - The company has developed over 30 patents and has built a strong technology R&D team to enhance its market position[62]. - The company has completed several R&D projects, including the development of antibacterial storage products, which are expected to increase annual order revenue[90]. - The company has successfully developed a low-pressure injection molding technology, which is expected to increase annual sales after product launch[91]. - The company has developed a fully recycled notebook, with all components made from recycled materials, expected to increase annual sales[91]. - The company is researching a new type of LED light that flashes with music, aiming to enhance product appeal and increase sales[91]. - The company plans to establish new product development departments to explore new materials, processes, and structures, increasing product value and transitioning from integrated to customized products[132]. - The company is committed to fully implementing product R&D centers in Hangzhou, Shanghai, and Ningbo[132]. Governance and Compliance - The company has established a comprehensive internal control management system in accordance with regulations from the China Securities Regulatory Commission and the Shenzhen Stock Exchange, enhancing decision-making efficiency and ensuring asset safety[197]. - The internal control self-evaluation report was disclosed on April 22, 2022, confirming that 100% of the total assets and total revenue of the evaluated units were included in the consolidated financial statements[200]. - The company has not reported any major defects in internal control during the reporting period, reflecting a stable operational environment[198]. - The company adheres to strict information disclosure regulations, ensuring timely and accurate communication with investors[141]. - The company has established multiple channels for investor relations, including interactive platforms and dedicated communication lines[142]. - The company maintains independence from its controlling shareholders in business, personnel, assets, and financial matters, ensuring a complete and independent operational capability[143]. - The company has a fully independent financial accounting department, capable of making independent financial decisions and managing its own tax obligations[144]. - The company is focused on enhancing its governance structure and ensuring compliance with regulatory requirements[1]. Employee Development and Training - The total number of employees at the end of the reporting period was 2,741, with 757 in the parent company and 1,984 in major subsidiaries[179]. - The company organized a total of 73 training sessions in 2021, achieving a training completion rate of 96.7%[183]. - The company plans to conduct 80 training sessions in 2022, aiming for a participation rate of over 98%[184]. - The company has a total of 1,747 production personnel, 173 sales personnel, and 504 technical personnel[180]. - The company’s employee compensation policy is based on job value and competency, ensuring a competitive and fair salary system[181]. - The company aims to encourage long-term employee commitment to its growth and sustainable development[182]. Dividend and Profit Distribution - The company plans to distribute a cash dividend of 0.50 RMB per 10 shares to all shareholders, based on a total of 180,391,840 shares[21]. - The net profit attributable to shareholders for the year 2021 was RMB 9,466,723.64, with distributable profits available for shareholders amounting to RMB 199,147,463.94[188]. - The total number of shares for the dividend distribution is based on 180,391,840 shares after accounting for repurchased shares[188]. - The company has not proposed any stock bonus or capital reserve transfer to increase share capital for this period[186]. - The remaining undistributed profits will be carried forward to the next fiscal year[188]. - The company’s cash dividend represents a minimum of 20% of the profit distribution in cases of significant capital expenditure arrangements[186]. Market Trends and Industry Insights - The revenue of China's educational and office supplies industry reached CNY 156.33 billion in 2020, an increase of CNY 4.09 billion or 2.7% compared to 2019[47]. - The online sales channel for writing instruments in China accounted for 12.8% in 2019, up from 3.9% in 2005, indicating a significant shift towards e-commerce[50]. - The global sports equipment and apparel market was valued at USD 363.29 billion in 2020, projected to reach USD 551.47 billion by 2027, with a CAGR of 5.7%[51]. - The Chinese stationery industry saw a revenue of USD 17 billion in 2018, with a growth rate of 4.0%, indicating a slowdown compared to previous years[48]. - The average per capita stationery consumption in China was CNY 105 in 2018, significantly lower than the global average of CNY 240[49]. Subsidiary Performance - The subsidiary He Yuan Textile reported a net profit increase due to continuous growth in home textile product sales, with a total revenue of RMB 135,823,440 and a net profit of RMB 10,723,202.05[126]. - The subsidiary Rui Te Fei experienced a net profit increase attributed to rapid growth in cross-border e-commerce, with total revenue of RMB 129,109,855.55 and a net profit of RMB 2,935,719.73[126]. - The subsidiary Anhui Chuangyuan reported a decrease in net profit due to increased operating costs and inventory impairment provisions, with total revenue of RMB 456,251,128.09 and a net profit loss of RMB 8,183,013.50[127]. - The subsidiary American Zhiyuan reported a decrease in net loss due to significant growth in core cross-border e-commerce business, with total revenue of RMB 72,214,139.4 and a net loss of RMB 5,009,546.9[128]. - The subsidiary Vietnam Chuangyuan reported an increase in net loss due to decreased production efficiency caused by the overseas pandemic[128].