JAHEN(SZ:300955)2021-04-28 16:00Financial Performance - The company's operating revenue for 2020 was ¥968.61 million, representing a 23.29% increase compared to ¥785.66 million in 2019[18]. - Net profit attributable to shareholders for 2020 was ¥93.41 million, a 47.51% increase from ¥63.33 million in 2019[18]. - The net profit after deducting non-recurring gains and losses was ¥90.74 million, up 45.71% from ¥62.28 million in 2019[18]. - The total assets at the end of 2020 reached ¥873.93 million, a 25.37% increase from ¥697.10 million at the end of 2019[18]. - The company's basic earnings per share for 2020 was ¥1.24, an increase of 47.62% compared to ¥0.84 in 2019[18]. - The weighted average return on equity for 2020 was 19.37%, an increase from 15.75% in 2019[18]. - The gross profit margin for the manufacturing sector was 25.26%, a decrease of 3.48% from the previous year[80]. - The company achieved a capacity utilization rate of 97% for cosmetics production, with a design capacity of 21,000 tons[74]. - The company reported a total revenue of 1.5 billion yuan for the fiscal year 2020, representing a year-over-year growth of 15%[138]. Cash Flow and Dividends - The company reported a cash dividend of 4.1 RMB per 10 shares (including tax) based on a total share capital of 10.08 million shares[5]. - The proposed cash dividend for 2020 is 4.1 CNY per 10 shares, totaling 41,328,000.00 CNY, which represents 44.24% of the net profit attributable to shareholders[134]. - The cash dividend payout ratio for 2020 is 44.24%, indicating a strong commitment to returning value to shareholders[134]. - The total cash dividend for 2020 is 41,328,000.00 CNY, with no other forms of cash distribution reported[134]. - Cash and cash equivalents decreased by 130.42% year-on-year, resulting in a net decrease of CNY 21,347,841.57[96]. Research and Development - The company invested 18.53 million yuan in R&D during the reporting period, focusing on formula optimization and production process improvements[69]. - The company has established a comprehensive service capability in R&D, formulation, filling, and plastic packaging design, enhancing its core competitiveness[58]. - The company holds 183 domestic patents and 1 foreign patent, including 32 invention patents, demonstrating its strong R&D capabilities[60]. - Research and development expenses amounted to ¥18,530,556.50, representing 1.91% of total revenue[93]. - The company plans to enhance R&D investment and technological innovation to improve product added value[143]. Market and Industry Trends - The average disposable income of Chinese residents increased from ¥20,167 in 2014 to ¥32,189 in 2020, contributing to a significant rise in consumer spending[45]. - The retail sales of cosmetics in China grew from ¥182.21 billion in 2014 to ¥297.34 billion in 2019, with a compound annual growth rate (CAGR) of 10.29%[45]. - In 2020, while the total retail sales of consumer goods in China decreased by 3.9%, the cosmetics sector still experienced a growth of 9.5%[45]. - The demand for OEM/ODM services in the cosmetics industry is increasing due to the need for rapid product development and market responsiveness[48]. - Increased competition in the cosmetics market is anticipated as more domestic and international brands enter, potentially affecting the company's market position[120]. Operational Strategies - The company operates under a direct sales model, optimizing production and sales based on customer demand[74]. - The company maintains a robust supplier evaluation system, ensuring a stable supply of raw materials and effective cost control[41]. - The company has established long-term relationships with suppliers, ensuring quality and stability in raw material procurement[41]. - The company is committed to continuous product development and innovation in response to market demands[43]. - The company aims to enhance its R&D capabilities by improving product formulations and production processes, focusing on skincare, haircare, and fragrance products[117]. Risk Management - The company emphasizes the potential risks including market demand fluctuations, high customer concentration, and raw material price volatility[5]. - The company faces risks from market demand fluctuations due to changes in consumer income and economic conditions, which could impact its business performance[120]. - The revenue from the top five customers accounted for 73.66% of total income, indicating a high customer concentration risk[121]. - The company is committed to improving its human resources system to enhance management competitiveness and attract talented individuals[119]. - The company has established a comprehensive quality management system to prevent potential product quality issues and associated legal risks[125]. Governance and Compliance - The company is committed to maintaining the accuracy and completeness of its financial reports, as stated by its management[4]. - The company has established a strong governance structure with all board members present for the report's approval[4]. - The company has committed to full, complete, and timely execution of its profit compensation measures[145]. - The company will actively promote compliance with regulations set by the China Securities Regulatory Commission and the Shenzhen Stock Exchange[145]. - The company has pledged to accept ongoing regulatory oversight regarding its compliance with these commitments[149]. Future Plans - The company plans to enhance R&D investment and improve management systems to strengthen core competitiveness and adapt to international market competition[121]. - The company aims to mitigate raw material price fluctuation risks by optimizing the supply chain and improving product quality to maintain profit margins[122]. - The company is actively pursuing business development plans to capitalize on growth opportunities in the cosmetics industry[126]. - The company plans to expand its production capacity to 38,000 tons of cosmetics and 30 million plastic packaging units annually after the completion of its new production base[117]. - The company expects a revenue growth of 10-15% for the upcoming fiscal year, driven by new product launches and market expansion strategies[139].