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.

U.S. FDA: Youth E-Cigarette Prevention Campaign Prevented About 444,000 Initiations and Reduced Illegal Vape Sales
U.S. FDA: Youth E-Cigarette Prevention Campaign Prevented About 444,000 Initiations and Reduced Illegal Vape Sales
The U.S. Food and Drug Administration (FDA) said its youth e-cigarette prevention campaign, “The Real Cost,” prevented about 444,000 U.S. youth from starting e-cigarette use between 2023 and 2024 and blocked more than $42 million in unauthorized e-cigarette sales that would have been used by youth.
Market
Jun.25
Innovation, Insights and Networking: NUBIZ Brings the Global NGP Industry Together in Dortmund
Innovation, Insights and Networking: NUBIZ Brings the Global NGP Industry Together in Dortmund
The market for next-generation products is expanding rapidly, with vapes, e-cigarettes, pouches, snus and heat-not-burn products among the industry’s most innovative segments. As part of InterTabac, NUBIZ provides a central platform for reduced-risk tobacco and nicotine products, bringing together global leaders and newcomers from 15 to 17 September. The show combines market insights, product comparisons, networking, a high-level conference programme and exclusive side events.
Jun.03
U.S. Military Nicotine Policy Sparks Debate as Nicotine Pouches Enter Discussion
U.S. Military Nicotine Policy Sparks Debate as Nicotine Pouches Enter Discussion
An opinion article published by Stars and Stripes argued that the Pentagon’s January nicotine clinical guidelines overemphasize abstinence, fail to reflect the reality that about 30% of active-duty personnel use nicotine, and do not address nicotine pouches as potential harm-reduction products.
Industry Insight
Jun.08
North Carolina Adds $1,000 Vape Shop Tax and 21+ Age Verification Requirement
North Carolina Adds $1,000 Vape Shop Tax and 21+ Age Verification Requirement
North Carolina’s new state budget introduces additional vape retail regulations, including a $1,000 tax on vape shops and mandatory age verification requiring customers to be at least 21.
Jul.08
BP, Marathon and Valero Warn U.S. Gas-Station Stores: Illegal Vape Sales Could Bring Heavy Fines and Card-Processing Limits
BP, Marathon and Valero Warn U.S. Gas-Station Stores: Illegal Vape Sales Could Bring Heavy Fines and Card-Processing Limits
Fiserv and service station operators including BP, Marathon Petroleum and Valero have warned U.S. partners and gas-station convenience-store owners that selling illegal vapes could lead to heavy fines, breach brand agreements and even put stores’ card-processing access at risk, according to Reuters.
Regulations
Jul.07 by 2Firsts Perspectives
New West Virginia Vape Law Begins, With Packaging and Ad Restrictions Ahead
New West Virginia Vape Law Begins, With Packaging and Ad Restrictions Ahead
West Virginia’s Vape Safety Act will take effect Thursday, requiring vapor products sold in vape and smoke shops to carry health warnings, legal-age notices, manufacturer information and ingredient disclosures, while introducing new licensing and enforcement rules.
Jun.10