Financial Performance - Total comprehensive income for the year amounted to RMB 12,788,000, compared to RMB 43,207,000 in the previous year, indicating a significant decrease [5]. - Basic earnings per share were RMB 0.08, down from RMB 0.15 in the previous year, reflecting a decline in profitability [6]. - Total revenue for 2022 was RMB 2,178,409,000, a decrease of 9.2% compared to RMB 2,400,426,000 in 2021 [24]. - Gross profit for 2022 was RMB 338,141,000, down 7.8% from RMB 366,725,000 in 2021 [24]. - Net profit for the year was RMB 22,821,000, representing a significant decline of 47.7% from RMB 43,629,000 in 2021 [24]. - Basic earnings per share for 2022 were RMB 0.08, down from RMB 0.15 in 2021, reflecting a 47.7% decrease [24]. - The company recorded a net profit of approximately RMB 22.8 million, a decrease of about 47.7% from RMB 43.6 million in 2021, resulting in a net profit margin decline from 1.8% to 1.0% [125]. - The profit attributable to equity holders of the company was RMB 22.8 million, a decrease of approximately 47.7% or about RMB 20.8 million compared to RMB 43.6 million in 2021 [144]. Assets and Liabilities - Property, plant, and equipment increased to RMB 794,579,000 from RMB 695,730,000, showing a growth of approximately 14.2% [8]. - Current assets decreased to RMB 866,744,000 from RMB 920,520,000, a decline of about 5.8% [8]. - Total liabilities increased slightly to RMB 794,957,000 from RMB 782,634,000, indicating a rise of approximately 1.6% [8]. - The net asset value decreased to RMB 602,546,000 from RMB 630,395,000, reflecting a reduction of about 4.4% [8]. - The company reported a decrease in inventory to RMB 111,483,000 from RMB 164,781,000, a decline of approximately 32.3% [8]. - Accounts receivable decreased to RMB 635,642,000 from RMB 683,690,000, indicating a reduction of about 7.0% [8]. - The total lease liabilities as of December 31, 2022, amounted to RMB 315,166,000, an increase from RMB 238,091,000 in 2021 [84]. - The group’s total liabilities included RMB 348,340,000 in secured bank loans as of December 31, 2022, compared to RMB 330,000,000 in 2021 [104]. Revenue Sources - The group generated over 90% of its operating revenue and operating profit from manufacturing and selling packaging materials in China [58]. - The group's revenue from the food and beverage sector in 2022 was RMB 601,865 thousand, a decrease from RMB 625,381 thousand in 2021, representing a decline of approximately 3.3% [64]. - Revenue from the paper and packaging sector in 2022 was RMB 297,027 thousand, down from RMB 350,759 thousand in 2021, indicating a decrease of about 15.4% [64]. - The group's operating revenue from the sale of corrugated paper packaging products for the year was approximately RMB 1,970.0 million, a decrease of about 9.3% compared to RMB 2,171.4 million in 2021, accounting for approximately 90.4% of the total operating revenue for the year [91]. Expenses and Costs - The cost of goods sold for 2022 was RMB 1,840,268,000, compared to RMB 2,033,701,000 in 2021 [42]. - The company reported a decrease in sales and distribution expenses to RMB 120,824,000 from RMB 124,507,000 in 2021 [27]. - Administrative expenses slightly decreased to RMB 156,524,000 from RMB 159,293,000 in 2021 [27]. - The total sales cost for the year was approximately RMB 1,840.3 million, a decrease of about 9.5% from RMB 2,033.7 million in 2021, primarily due to reduced sales volume [118]. Cash Flow and Investments - The net cash generated from operating activities was approximately RMB 238.0 million, an increase of about RMB 189.0 million or approximately 385.6% compared to RMB 49.0 million in 2021 [128]. - The net cash used in investing activities was approximately RMB 70.3 million, compared to RMB 91.5 million in 2021, primarily due to equipment purchases for existing and new plants [146]. - The net cash used in financing activities was approximately RMB 128.4 million, compared to a net cash inflow of about RMB 8.9 million in 2021, mainly due to repayments of sale and leaseback arrangements, dividend payments, and interest payments [147]. - The company had cash and cash equivalents of approximately RMB 98.8 million as of December 31, 2022, compared to RMB 58.8 million at the beginning of the year [126]. Future Outlook and Strategy - The company plans to maintain a final dividend of HKD 0.08 per share, consistent with the previous year [24]. - The company plans to expand its business in Central China and focus on improving the utilization rate of its production facilities, anticipating stronger demand in 2023 [150]. - The company established a new production facility in Chuzhou, Anhui Province, which commenced operations in August 2022, to improve overall performance [115]. Risks and Challenges - The company faced significant challenges in revenue and profit due to adverse economic conditions and supply chain disruptions in various industries [137]. - The overall economic downturn and repeated COVID-19 outbreaks in mainland China have negatively impacted consumer activity and trade orders across multiple sectors [136]. - The company has identified several risks and uncertainties that may affect its business operations, including rising prices of key raw materials and uncertainties in obtaining external financing [163]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value [165]. - The audit committee, consisting of four directors, has reviewed the audited annual performance of the group for the year [166]. - The company has adopted the standards for securities trading as outlined in the Listing Rules, confirming compliance by all directors for the year [167]. - There were no purchases, sales, or redemptions of any listed securities by the company or its subsidiaries during the year [168].
济丰包装(01820) - 2022 - 年度业绩