JINSHENG(SZ:300849)2022-04-22 16:00Financial Performance - The net profit attributable to shareholders of the listed company for 2021 was 10.587 million RMB, a decrease of 69.30% compared to 34.4894 million RMB in the same period last year[5]. - The decline in profit was primarily due to rising raw material prices, increased personnel costs, and a decrease in export sales caused by the pandemic and shipping uncertainties[5]. - The company's operating revenue for 2021 was ¥293,159,461.84, representing a 12.94% increase compared to ¥259,561,794.03 in 2020[19]. - The net profit attributable to shareholders decreased by 69.30% to ¥10,586,961.03 in 2021 from ¥34,489,371.21 in 2020[19]. - The net profit after deducting non-recurring gains and losses was ¥2,341,985.69, down 92.33% from ¥30,516,105.29 in the previous year[19]. - The net cash flow from operating activities was ¥28,766,992.00, a decrease of 50.66% compared to ¥58,299,970.87 in 2020[19]. - The total assets at the end of 2021 were ¥776,853,506.32, an increase of 4.84% from ¥740,999,805.53 at the end of 2020[19]. - The net assets attributable to shareholders decreased by 2.07% to ¥682,786,098.69 from ¥697,199,137.66 in 2020[19]. - The basic earnings per share dropped by 74.07% to ¥0.07 in 2021 from ¥0.27 in 2020[19]. - The weighted average return on net assets was 1.53%, down 5.24% from 6.77% in the previous year[19]. - The gross profit margin decreased to 23.14% in 2021 from 35.59% in 2020, a drop of 12.45%[67]. - The gross profit margin for the injection molded parts was 23.27%, down 12.80% compared to the previous year[75]. Research and Development - The company established a wholly-owned subsidiary, Shanghai Jianhong Technology Co., Ltd., in July 2021 to enhance R&D capabilities, which has not yet turned profitable[5]. - The company plans to continuously increase R&D investment to improve product quality and develop new products to enhance market competitiveness[6]. - The company has invested in product design and technology development to enhance its competitiveness against overseas rivals, particularly in product design[35]. - The company has a strong focus on research and development, particularly in acrylic packaging, to maintain its competitive edge in the industry[37]. - The company's R&D investment amounted to ¥14,532,416 in 2021, representing 4.96% of total revenue, an increase from 4.28% in 2020[88]. - The number of R&D personnel increased by 18.82% from 85 in 2020 to 101 in 2021, with a notable rise in the proportion of personnel under 30 years old[88]. - The company is focusing on enhancing customer satisfaction and market competitiveness through various R&D projects aimed at improving product quality and sustainability[86]. - The company plans to enhance its R&D capabilities by collaborating with top research institutions and attracting high-end talent to develop innovative packaging solutions[122]. Market Position and Strategy - The company has established itself as a supplier for well-known cosmetic brands including Estée Lauder, L'Oréal, and Pechoin, indicating a strong market presence[37]. - The company is well-positioned to capitalize on the growing potential of the Chinese cosmetic market, which is attracting international brands[35]. - The company aims to strengthen marketing efforts to develop new high-quality customers and improve overall operational profitability[6]. - The company is focusing on expanding its market share both domestically and internationally, aiming to reduce the impact of global trade conflicts on sales[124]. - The company is actively seeking partnerships to leverage synergies and enhance its product offerings in the new materials sector[154]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by 2025[163]. Production and Operations - The company operates under a just-in-time production model, minimizing inventory and ensuring efficient order fulfillment[48]. - The company has developed strong capabilities in mold design and injection technology, which enhances cooperation with high-end clients and supports higher profit margins[54]. - The company has mastered advanced mold processing technologies, including multi-cavity mold technology and high-precision manufacturing techniques[56]. - The company is leveraging intelligent warehousing and logistics systems to improve efficiency and reduce delivery times[121]. - The company has established a new project with an annual production capacity of 45 million cosmetic packaging containers, which was launched in July 2021[69]. - The company plans to extend its product line into color cosmetics and personal care packaging with a new project for 60 million sets of packaging containers, which commenced construction in January 2022[70]. Financial Management and Governance - The company proposed a profit distribution plan to distribute a cash dividend of 1.00 RMB per 10 shares to all shareholders[7]. - The company has established a cash dividend management system and a three-year shareholder return plan for 2021-2023, which has been approved by independent directors[182]. - The company reported a distributable profit of RMB 185,826,307.01 for the year[183]. - The company has a structured governance framework with a shareholders' meeting as the highest authority, a board of directors for decision-making, and a supervisory board for oversight[148]. - The company has established a governance structure that complies with relevant laws and regulations, ensuring transparency and accountability in its operations[140]. - The company emphasizes maintaining the interests of all shareholders, particularly minority investors[171]. Challenges and Risks - The company faced a 25% tariff on $200 billion worth of goods exported to the U.S. since May 2019, directly impacting its export business[133]. - The company experienced delays in shipments and reduced customer orders due to the COVID-19 pandemic, affecting its operational efficiency[135]. - Upstream raw material prices, particularly for PMMA, ABS, AS, significantly impact production costs; in 2021, these materials saw substantial price increases affecting profit levels[53]. - The company is enhancing its R&D capabilities and product competitiveness to mitigate risks from U.S. tariffs and raw material price fluctuations[133][134]. Employee Management - The total number of employees at the end of the reporting period is 920, with 699 in production, 101 in technical roles, and 25 in sales[176]. - Employee compensation policies are designed to be fair and competitive, aligning with local industry standards and rewarding performance through bonuses[177]. - The company emphasizes training across multiple levels, focusing on management, technical, and process-related skills to enhance employee capabilities[179]. - The company has no retired employees requiring financial support, indicating a fully active workforce[176]. Environmental and Social Responsibility - The company strictly adheres to environmental laws and has not faced any administrative penalties related to environmental issues during the reporting period[194]. - The company promotes green manufacturing and aims to eliminate high-energy-consuming and high-polluting production lines[198]. - The company emphasizes employee rights protection, ensuring compliance with labor laws and providing various social insurance benefits[197].