JINSHENG(SZ:300849)2021-04-25 16:00Dividend Distribution and Capital Reserves - The company plans to distribute a cash dividend of 2.5 RMB per 10 shares to all shareholders, based on a total of 100,000,000 shares[5]. - The company will also increase capital reserves by converting 5 shares for every 10 shares held by shareholders[5]. - The company plans to distribute a cash dividend of RMB 2.5 per 10 shares, totaling RMB 25,000,000, which represents 100% of the distributable profit[129]. - The total number of shares will increase from 100,000,000 to 150,000,000 due to a capital reserve transfer of 5 shares for every 10 shares held, totaling 50,000,000 new shares[131]. - The company's net profit attributable to ordinary shareholders for 2020 was RMB 34,489,371.21, with a cash dividend payout ratio of 72.49%[134]. - The total distributable profit for the year was RMB 201,595,259.82, with cash dividends accounting for 100% of the total profit distribution[129]. - The company has a policy to ensure that cash dividends represent at least 20% of profit distribution during significant capital expenditure phases[129]. - The cash dividend distribution aligns with the company's articles of association and dividend management policies[129]. - The company has not proposed any cash dividend distribution plans in years when it reported a positive net profit[134]. Financial Performance - The company's operating revenue for 2020 was ¥259,561,794.03, a decrease of 24.30% compared to ¥342,879,253.56 in 2019[15]. - The net profit attributable to shareholders for 2020 was ¥34,489,371.21, down 47.46% from ¥65,641,214.98 in 2019[15]. - The net profit after deducting non-recurring gains and losses was ¥30,516,105.29, a decline of 49.84% from ¥60,841,741.46 in 2019[15]. - The net cash flow from operating activities was ¥58,299,970.87, a decrease of 35.82% compared to ¥90,842,097.45 in 2019[15]. - The total assets at the end of 2020 were ¥740,999,805.53, an increase of 77.43% from ¥417,625,287.30 at the end of 2019[15]. - The net assets attributable to shareholders at the end of 2020 were ¥697,199,137.66, up 88.50% from ¥369,859,766.45 at the end of 2019[15]. - The basic earnings per share for 2020 were ¥0.40, down 54.55% from ¥0.88 in 2019[15]. - The weighted average return on equity for 2020 was 6.77%, a decrease of 12.71% from 19.48% in 2019[15]. - The company achieved a revenue of RMB 259.56 million in 2020, a decrease of 24.30% compared to the previous year[63]. - The net profit attributable to shareholders was RMB 34.49 million, down 47.46% from RMB 65.64 million in 2019[65]. - The company's gross margin for 2020 was 35.59%, which increased to 38.10% after adjusting for certain costs, reflecting a year-on-year increase of 0.93%[64]. Risks and Challenges - The company acknowledges various risks including fluctuations in gross profit margin, high customer concentration, and rising human resource costs[5]. - The company emphasizes the importance of understanding the differences between plans, forecasts, and commitments in its strategic outlook[5]. - The profit levels in the cosmetic plastic packaging industry are influenced by raw material prices, innovation capabilities, production technology, and product iteration speed[35]. - High-end cosmetic brands tend to invest more in packaging materials, resulting in higher profit margins for suppliers compared to those serving low-end brands[36]. - Fluctuations in upstream plastic prices significantly impact production costs, but companies have managed to control profit levels through efficiency improvements and price adjustments[37]. - The company faces risks from rising labor costs due to economic development in central and western regions, necessitating higher wages to attract workers[120]. - The company is exposed to exchange rate fluctuations, with a significant portion of sales settled in USD, which could impact financial performance[123]. - The company’s export revenue to the U.S. represented 30.20%, 35.71%, and 38.85% of total revenue over the past three years, making it vulnerable to U.S.-China trade tensions[124]. Research and Development - The company holds 56 patents, showcasing its strong research and development capabilities in precision cosmetic plastic bottle molds[53]. - The company has implemented automation in injection molding processes, enhancing production efficiency and reducing labor costs[54]. - The company has achieved significant advancements in mold temperature control technology, improving product quality and reducing defects during the injection molding process[53]. - The company has established a complete injection molding technology system, enabling it to provide comprehensive solutions from precision mold design to injection part formation[55]. - The company is committed to increasing R&D investment to mitigate risks associated with raw material price volatility and maintain competitive advantages[118]. - The company aims to develop new cosmetic products and extend its product line from skincare to color cosmetics, supported by advanced injection molding technology[117]. - R&D investment for the reporting period amounted to ¥11,115,147.19, accounting for 4.28% of operating revenue[79]. - The number of R&D personnel decreased to 85, representing 10.10% of total employees, compared to 10.80% in 2019[79]. Market Position and Strategy - The company has established a strong customer base with leading cosmetic brands such as Estée Lauder and L'Oréal, enhancing its market position[63]. - The company is well-positioned in the overseas market due to its competitive advantages in raw materials and geographical location, despite facing design competition from international players[50]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[136]. - The company is actively participating in domestic and international exhibitions to enhance brand visibility and expand its marketing reach[116]. - The company plans to expand its marketing network by enhancing the sales team and improving sales incentives, aiming for simultaneous growth in domestic and international sales[115]. Compliance and Governance - The financial report is guaranteed to be true, accurate, and complete by the company's management team[4]. - The company has appointed an accounting firm for its financial audits, ensuring compliance and transparency[14]. - The company is under the supervision of regulatory authorities to ensure compliance with securities laws and regulations[140]. - The company’s commitment to transparency and accountability is emphasized through its various promises regarding the IPO process and share buyback measures[141]. - The company has established internal control systems to ensure the proper and efficient use of raised funds, with funds stored in designated accounts for specific purposes[148]. Shareholder Structure and IPO - The company completed its initial public offering (IPO) with 25 million shares issued at a price of RMB 13.99 per share, raising a total of RMB 349.75 million[190]. - Post-IPO, the total share capital increased from 75 million shares to 100 million shares, reflecting a significant change in the shareholder structure[191]. - Major shareholders include Ruan Rongtao with 20.32% (20,324,644 shares) and Shanghai Liyi Equity Investment Center with 18.75% (18,750,000 shares)[193]. - The company has a total of 11,976 shareholders at the end of the reporting period, an increase from 11,176 at the previous month-end[193]. - The company’s equity structure includes a significant portion of shares held under lock-up conditions, indicating a controlled release of shares into the market[188]. - The largest shareholder, Ruan Rongtao, directly holds 20.32% of the company's shares, while he and his wife, Gao Lijun, collectively control 35.11% of the shares[194]. - The company has not conducted any repurchase transactions among the top ten shareholders during the reporting period[195]. - The controlling shareholders, Ruan Rongtao and Gao Lijun, have not changed during the reporting period[196]. Operational Efficiency and Future Plans - The company aims to enhance its competitiveness by integrating precision injection molding, hot stamping, and assembly processes, while reducing manufacturing cycles and costs[111]. - The company plans to launch a new production facility for cosmetic packaging containers with an annual capacity of 45 million sets, expected to commence production in June 2021[67]. - The company is committed to sustainability, with plans to reduce carbon emissions by 20% over the next five years through innovative production processes[137]. - The company plans to implement stock price stabilization measures when the closing price remains below the audited net asset value per share from the previous fiscal year[138]. - The company will consider profit distribution or capital reserve conversion to increase share capital as a primary method for stabilizing stock prices[138].