Jingjia Corporation Expects 70-80% Profit Decline in 2022

Feb.06.2023
Jingjia Corporation Expects 70-80% Profit Decline in 2022
Packaging company Jinka's 2022 net profit may fall 70-80% YoY due to macroeconomic factors, reduced sales and asset write-offs.

Recently, Jingjia Co., Ltd. released a earnings forecast, stating that the net profit attributable to shareholders of the listed company is expected to be approximately RMB 204 million to 306 million in 2022, representing a year-on-year decrease of 70% to 80%.


Source Image: Jingjia Corporation


The main reason for the change in performance is:


Due to factors such as fluctuations in the global and domestic macroeconomic conditions and increased competition in the market, the sales and prices of the company's primary products have experienced a decline, leading to a decrease in profitability.


According to Regulation No. 8 on Accounting Supervision Risk Warning - Impairment of Goodwill, and taking into account factors such as market competition and actual operational conditions, the company will provision for impairment of goodwill in the asset group of its subsidiary, Jiangsu Shuntai Packaging Printing Technology Co., Ltd., based on the principle of prudence. The estimated amount provisioned is between RMB 300 million and RMB 400 million.


During this reporting period, the estimated amortization of share-based compensation expenses resulting from the implementation of a restricted stock incentive plan amounted to 66.16 million RMB, with an expected amount of 17.73 million RMB for the year 2021.


In 2021, the company changed the classification of its equity holdings in Shenzhen Huada Beidou Technology Co., Ltd. from long-term investments to financial assets held for trading, which were subsequently measured at fair value. This resulted in investment income and fair value changes amounting to RMB 94,521.5 million, which is considered as non-recurring gains and losses. It is expected that the impact of these gains on the current reporting period will be minimal.


In 2021, the company gained investment returns of RMB 58.48 million due to the step-by-step merger of Qingdao Inno Packaging Technology Co., Ltd., and an investment return of RMB 21.12 million from the disposal of equity in Qingdao Jiayi Ze Printing and Packaging Co., Ltd. These incomes were classified as non-recurring gains and losses and were not applicable in this reporting period. The fair value changes of the original equity were included in the investment income amount.


Shenzhen Jinjia Group is a leading modern large-scale comprehensive packaging industry group in China, with top production scale, research and innovation capabilities, and core competitiveness. The company currently has 18 production bases nationwide, producing high-tech and high value-added tobacco labels and products, premium packaging for well-known consumer brands, and new packaging materials such as laser paper/film and tobacco film.


References:


Shenzhen Jingjia Group Co., Ltd. releases 2022 performance forecast.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

FDA Proposes Foreign Tobacco Factory Registration Rule to Tighten Import Oversight
FDA Proposes Foreign Tobacco Factory Registration Rule to Tighten Import Oversight
The FDA has proposed a rule requiring foreign tobacco manufacturers to register facilities and list products before exporting to the U.S. If finalized, the rule could affect overseas OEM/ODM factories, contract manufacturers, specification developers, bulk product makers, and repackaging or relabeling firms. FDA says the proposal would help identify unauthorized imported tobacco products, including e-cigarettes.
Special Report
Jun.26
DOJ Trade Fraud Task Force Tops $1 Billion in Cases, Putting Vape Supply Chains at Risk of Fraud Enforcement
DOJ Trade Fraud Task Force Tops $1 Billion in Cases, Putting Vape Supply Chains at Risk of Fraud Enforcement
According to the U.S. Department of Justice (DOJ), Fox News and other reports, the DOJ’s Trade Fraud Task Force (TFTF) has been linked to more than $1 billion in recoveries, penalties, forfeitures and publicly charged losses in less than one year. The task force focuses on trade fraud issues including country-of-origin fraud, illegal transshipment, false declarations and tariff evasion. While vape products are not the main source of the $1 billion figure, the industry’s reliance on global manufacturing and cross-border supply chains places it within broader U.S. trade enforcement scrutiny. The development suggests that U.S. oversight of cross-border vape products may increasingly extend beyond product authorization into import compliance, supply-chain transparency and corporate accountability.
Jul.23
Pennsylvania Updates ENDS Certification List as Chinese-Linked Manufacturers Enter State Review
Pennsylvania Updates ENDS Certification List as Chinese-Linked Manufacturers Enter State Review
Pennsylvania’s June 26 Pending ENDS Certifications list includes 23 manufacturers under review, including Shenzhen Smoore, Shenzhen IVPS, YME Technology and China-linked Boulder International. The list shows state-level vape regulation moving beyond retail brands toward manufacturer-based market access alongside FDA oversight.
Regulations
Jul.06 by 2Firsts Perspectives
Philippine Customs Seizes $2.22 Million in Misdeclared Vape Products From China
Philippine Customs Seizes $2.22 Million in Misdeclared Vape Products From China
The Philippine Bureau of Customs said it intercepted nine containers of misdeclared vape and vape-related products from China at the Manila International Container Port, with an estimated value of about ₱137 millionor, about $2.22 million.
Jul.10
Chinese Disposable Brands OXBAR, LYCO Challenge Vuse and JUUL: Pennsylvania’s Pending List Offers a Glimpse of the Future Legal Vape Market
Chinese Disposable Brands OXBAR, LYCO Challenge Vuse and JUUL: Pennsylvania’s Pending List Offers a Glimpse of the Future Legal Vape Market
Pennsylvania’s June 26 ENDS Pending Certifications list previews the state’s future legal vape market, placing Vuse, JUUL and Logic alongside Chinese-linked disposable brands OXBAR and LYCO. Shaped by PMTA eligibility and state rules, the list shows competition shifting from market share to market access.
Special Report
Jul.06
Product | JT Launches Ploom AURA Glacier White in Japan, Expanding the Device Ecosystem Through Color and Accessories
Product | JT Launches Ploom AURA Glacier White in Japan, Expanding the Device Ecosystem Through Color and Accessories
Japan Tobacco Inc. (JT) has introduced the Ploom AURA Glacier White heated tobacco device in Japan, adding a new color option to the existing Ploom AURA lineup. The device maintains the existing SMART HEATFLOW technology and HEAT SELECT SYSTEM with four heating modes, while expanding the ecosystem through new accessories including front panels, back covers, a car holder and wireless charging covers. The product entered pre-sale in Japan on June 30, 2026, followed by broader retail availability from July 7.
Aug.03