Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 1,889.5 million, an increase of 6.5% compared to the same period last year[2] - Net profit after tax grew by 48.2% to RMB 99.8 million for the six months ended June 30, 2023[2] - Sales revenue in the Chinese market decreased by 9.3% due to intensified competition[2] - International business showed strong growth with sales revenue increasing by 34.9%, particularly in Europe and Southeast Asia[2] - Gross profit for the six months ended June 30, 2023, was RMB 297.0 million, compared to RMB 259.9 million in the same period last year[4] - Total comprehensive income for the period was RMB 138.9 million, significantly up from RMB 49.3 million in the previous year[4] - Basic and diluted earnings per share increased to RMB 0.075 from RMB 0.050 year-on-year[4] - The gross profit margin for the six months ended June 30, 2023, was approximately 15.7%, compared to 14.7% in the previous year, reflecting improved operational efficiency[15] - The total segment performance for the six months ended June 30, 2023, was RMB 297,019 thousand, up 14.3% from RMB 259,886 thousand in the same period of 2022[15] - The company reported a net profit of RMB 99,829 thousand for the six months ended June 30, 2023, representing a 48.3% increase from RMB 67,371 thousand in the previous year[15] Cash Flow and Assets - Total assets as of June 30, 2023, were RMB 3,896.6 million, down from RMB 4,279.7 million at the end of 2022[5] - Total liabilities decreased to RMB 1,137.7 million from RMB 1,659.7 million at the end of 2022[6] - Cash and cash equivalents were RMB 493.1 million, down from RMB 607.4 million at the end of 2022[5] - Operating cash flow for the six months ended June 30, 2023, was RMB 53,301 thousand, a decrease of 71.7% compared to RMB 188,211 thousand in the same period of 2022[8] - Net cash used in operating activities was RMB (3,322) thousand, compared to RMB 167,082 thousand in the previous year, indicating a significant decline[8] - Cash and cash equivalents at the end of the period were RMB 493,069 thousand, down from RMB 585,114 thousand at the end of the previous year[8] - The financing activities generated cash inflow of RMB 38,631 thousand, while cash outflow for repayment of borrowings was RMB (140,662) thousand, indicating a net cash outflow from financing activities[8] Expenses and Investments - Total expenses for the six months ended June 30, 2023, amounted to RMB 1,801,143 thousand, compared to RMB 1,721,808 thousand in 2022, reflecting an increase of about 4.6%[17] - Research and development expenses rose to RMB 13,038 thousand in 2023, compared to RMB 9,687 thousand in 2022, indicating a growth of approximately 34.5%[17] - The company recognized a provision for obsolete inventory amounting to RMB 13,640 thousand in 2023, significantly higher than RMB 4,044 thousand in 2022, indicating a rise of about 237.5%[17] - Other income increased to RMB 20,965 thousand in 2023 from RMB 14,729 thousand in 2022, representing a growth of approximately 42.2%[16] - The company’s total capital expenditure for the six months ended June 30, 2023, was approximately RMB 15.1 million, down from RMB 88.6 million as of December 31, 2022[68] Market and Product Development - The company plans to expand its product offerings in the non-carbonated soft drink segment, which has shown significant growth potential[9] - The company is focusing on enhancing its digital services, which contributed RMB 572 thousand in revenue for the six months ended June 30, 2023, compared to RMB 2,368 thousand in the previous year[15] - The company plans to continue developing new products and diversify its packaging solutions to enhance its market presence[44] - The company is focusing on developing environmentally friendly products to enrich its product portfolio[44] - The company continues to focus on developing more environmentally friendly packaging, including aluminum-free packaging that reduces carbon footprint by approximately 40% compared to traditional aluminum foil packaging[45] Employee and Governance - As of June 30, 2023, the company employed approximately 1,785 employees, with total employee benefits expenditure amounting to approximately RMB 175.9 million, an increase from RMB 160.6 million for the same period in 2022[70] - The company has established a performance review system for employee evaluations, which influences decisions on salary increases and promotions[70] - The company has made changes to its board of directors, including the appointment of new independent non-executive directors[76] - The company has adopted a corporate governance code and confirmed compliance with all applicable rules and best practices as of June 30, 2023[74] Sustainability and Corporate Responsibility - The company aims to achieve net-zero carbon emissions by 2025 as part of its commitment to sustainability and corporate social responsibility[50] - The company is actively participating in initiatives to promote sustainable development in the beverage paper-based composite packaging industry[51] - The company emphasizes the importance of environmental, social, and economic impacts, aiming to enhance its sustainability capabilities[71] Economic Outlook - The global economic growth forecast for 2023 is 2.1%, which is lower than the 3.1% growth in 2022, indicating ongoing economic uncertainty[43] - The management highlighted the challenges of understanding consumer needs in a mature and segmented market[43] Shareholder Information - The company did not recommend an interim dividend for the six months ended June 30, 2023, consistent with the previous year[38] - The company has not proposed an interim dividend for the six months ended June 30, 2023, consistent with the previous year[75] Reporting and Compliance - The mid-term report will be published on the Hong Kong Stock Exchange website and the company's website[78] - The company is committed to complying with all relevant information disclosure requirements as per listing rules[78] - The report will contain all necessary information as mandated by the listing regulations[78] - The announcement is dated August 30, 2023, from Beijing, China[78] - The CEO and executive director is Mr. Bi Hua[78] - The board includes Mr. Hong Gang and Mr. Peng Yaojia as non-executive directors[78] - The company has appointed Mr. Sun Yanjun as a replacement director[78] - The independent non-executive directors include Mr. Lueth Allen Warren, Mr. Behrens Ernst Hermann, and Mr. Guo Kai[78] - The company emphasizes transparency and timely communication with stakeholders[78]

Financial Performance - Revenue for the year ended December 31, 2022, was RMB 3,937.0 million, representing a 13.6% increase from RMB 3,464.3 million in 2021[9] - Gross profit decreased by 15.7% to RMB 588.0 million from RMB 697.7 million in the previous year[9] - Net profit fell by 36.0% to RMB 182.4 million compared to RMB 285.1 million in 2021[9] - Revenue increased by approximately 13.6% from about RMB 3,464.3 million for the year ended December 31, 2021, to about RMB 3,937.0 million for the year ended December 31, 2022[46] - Revenue from the China segment rose by about RMB 117.2 million or 4.9% to approximately RMB 2,520.0 million, driven mainly by sales volume growth[46] - International segment revenue increased by approximately RMB 355.5 million or 33.5% to about RMB 1,417.0 million, primarily due to sales volume growth[46] - Gross profit decreased by approximately RMB 109.7 million or 15.7% to about RMB 588.0 million, with gross margin declining by about 5.2 percentage points to approximately 14.9%[48] - Selling costs rose by approximately RMB 582.3 million or 21.0% to about RMB 3,349.0 million, mainly due to increased sales volume and rising raw material prices[47] - Net profit decreased by approximately RMB 102.7 million or 36.0% to about RMB 182.4 million, with net profit margin declining by about 3.6 percentage points to approximately 4.6%[55] Sales and Market Growth - The company achieved a sales volume of over 24 billion packages, marking an approximate growth of 14.2%[23] - The company sold approximately 24 billion packaging units in 2022, representing a 14.2% increase compared to 2021, driven by sales growth in both China and international markets[29] - The Chinese business experienced a sales increase of approximately 6.9% in 2022, supported by a growing consumer focus on health and nutrition[27] - The company reported a 33.5% increase in international sales volume in 2022 despite challenges from the pandemic and geopolitical tensions[27] Product Development and Innovation - The company launched new products including "Greatview® Plant-Based Packaging" and aluminum-free packaging products[23] - The company expanded its product offerings by introducing the "Fengmei Brick 180ml Slim" to North American consumers and enhanced smart packaging solutions in Southeast Asia[29] - The company launched the "Greatview® Planet" sustainable packaging product, which incorporates plant-based polyethylene and has been certified by the Sustainable Biomaterials Roundtable, enhancing brand image and supporting responsible sourcing commitments[31] - The company’s new aluminum-free packaging product replaces traditional aluminum foil with high-performance polymer materials, enhancing recyclability and convenience[31] Sustainability and Corporate Social Responsibility - The company has set mid-to-long-term carbon reduction goals and aims for carbon neutrality by 2050[23] - Greatview was awarded the title of "Demonstration Enterprise for Producer Responsibility in Beverage Paper-Based Composite Packaging" by CRRA[23] - The company received the "Corporate Social Responsibility Practice Award" from the German Chamber of Commerce in China for 2022[23] - The company aims to reduce greenhouse gas emissions by 50% by 2030, using 2016 as the baseline year, and achieve net-zero emissions in its operations by 2040[90] - The company is committed to enhancing environmental protection and minimizing its operational impact on the environment through clean production and resource efficiency[90] - The company emphasizes the importance of sustainable packaging solutions in response to increasing consumer awareness and demand for eco-friendly products[29] - The company has implemented actions around carbon neutrality, waste management, and energy resource usage to continuously reduce its environmental impact[90] Operational Efficiency and Digitalization - Digitalization and decarbonization are identified as key directions and opportunities for future growth amid an uncertain macro environment[23] - The company has invested significantly in data collection and governance to improve operational efficiency and collaboration with customers and suppliers[34] - The company has successfully implemented a printing management system for a well-known Chinese dairy brand, improving efficiency in the packaging supply chain through digital solutions[31] - The company’s digital services continue to support customers in market expansion and channel management, leveraging IoT and mobile internet technologies[34] Corporate Governance and Management - The company’s management team has extensive experience in the industry, with key personnel holding significant roles in various sectors[85][86][87] - The company has adopted the corporate governance code as per the listing rules and confirmed compliance for the year ending December 31, 2022[138] - The board consists of eight members, including two executive directors, two non-executive directors, one alternate director, and three independent non-executive directors[141] - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Executive Committee to oversee specific areas of governance[139] - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[138] Risk Management - The company has adopted a "three lines of defense" risk management model, with management as the first line, risk monitoring as the second, and independent oversight by the internal audit department as the third[183][185] - The company identified that the top five liquid milk producers account for over 70% of the domestic market, indicating a high customer concentration risk[190] - Measures have been implemented to diversify the customer base, including maintaining strategic partnerships with major clients and expanding into domestic and international markets[190] - The company continues to monitor and assess risks related to environmental, social, and governance factors, adapting to changes in the business and external environment[186] Shareholder Relations and Dividends - The company has established a dividend policy aimed at providing stable and sustainable returns to shareholders, considering various financial and operational factors[98] - The board did not recommend the payment of a final dividend for the year ended December 31, 2022, consistent with 2021[131] - The company will continue to review its dividend policy and reserves the right to update or modify it at any time[100] Employee and Workforce Management - Employee benefits expenses totaled approximately RMB 3,415 million for the year ended December 31, 2022, compared to RMB 3,233 million in 2021, reflecting a focus on competitive compensation[67] - The company employed approximately 1,780 employees as of December 31, 2022, an increase from 1,754 employees in 2021[67] - As of December 31, 2022, approximately 25.7% of the total workforce, including senior management, are women[146] - The board aims to appoint at least one female director by December 31, 2024, to enhance gender diversity[144] Challenges and External Factors - The ongoing global pandemic and geopolitical tensions continue to pose challenges to supply chain management and economic stability[69] - The company has taken measures to manage risks associated with international geopolitical conflicts and post-pandemic challenges[193]

Financial Performance - Revenue for the year ended December 31, 2022, increased by 13.6% to RMB 3,937.0 million compared to RMB 3,464.3 million in 2021[3] - Net profit after tax for the year was RMB 182.4 million, down from RMB 285.1 million in 2021, impacted by rising raw material costs[3] - Gross profit for the year was RMB 587.9 million, a decrease from RMB 697.7 million in the previous year[5] - The company reported a total comprehensive income of RMB 199.9 million for the year, compared to RMB 216.1 million in 2021[6] - The total comprehensive income for the year ended December 31, 2022, was RMB 182,397,000, compared to RMB 285,072,000 for the previous year, reflecting a decrease of approximately 36.1%[9] - The operating profit for 2022 was RMB 227,483,000, down from RMB 362,318,000 in 2021, indicating a decline of about 37.1%[19] - The net profit for the fiscal year 2022 was RMB 182,397,000, down from RMB 285,072,000 in 2021, indicating a decrease of approximately 36.0%[19] - Basic and diluted earnings per share for the year were RMB 0.14, down from RMB 0.21 in 2021[6] - The total profit attributable to equity holders for 2022 was RMB 182,397,000, compared to RMB 285,072,000 in 2021, reflecting a decrease of approximately 36%[28] Revenue Segmentation - Domestic business in China showed stable performance with sales and revenue growth of approximately 6.9% and 4.9%, respectively[3] - International business experienced strong growth, with both sales and revenue increasing by 33.5%[3] - Revenue from packaging materials for dairy products was RMB 3,115,165,000 in 2022, up from RMB 2,861,575,000 in 2021, reflecting an increase of approximately 8.8%[20] - Revenue from the China segment rose by approximately RMB 117.2 million or 4.9% to about RMB 2,520.0 million, while the international segment saw an increase of approximately RMB 355.5 million or 33.5% to about RMB 1,417.0 million, both driven by sales growth[67] Costs and Expenses - Total costs for the year 2022 amounted to RMB 3,773,250,000, compared to RMB 3,171,886,000 in 2021, representing an increase of about 18.9%[23] - Sales cost increased by approximately RMB 582.3 million or 21.0% to about RMB 3,349.0 million, mainly due to increased sales volume and rising prices of key raw materials[68] - The company incurred research and development expenses of RMB 20,334,000 in 2022, an increase from RMB 18,063,000 in 2021, reflecting a growth of about 12.6%[23] Assets and Liabilities - Total assets as of December 31, 2022, amounted to RMB 4,279.7 million, up from RMB 3,658.5 million in 2021[8] - Total liabilities increased to RMB 1,659.7 million from RMB 1,238.4 million in the previous year[8] - The company reported a total equity of RMB 2,619,924,000 as of December 31, 2022, up from RMB 2,420,034,000 at the beginning of the year, representing an increase of approximately 8.2%[9] - The company’s retained earnings as of December 31, 2022, were RMB 1,839,556,000, an increase from RMB 1,670,035,000 at the beginning of the year, indicating a growth of approximately 10.1%[9] Cash Flow and Liquidity - Cash flow from operating activities for the year ended December 31, 2022, was RMB 345,186,000, an increase of 158.5% from RMB 133,827,000 in the previous year[10] - Cash and cash equivalents rose to RMB 607.4 million, compared to RMB 425.2 million in 2021[7] - The cash and cash equivalents at the end of the year increased to RMB 607,439,000 from RMB 425,242,000, marking a growth of approximately 42.8%[10] Market and Strategic Developments - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[19] - The company aims to enhance customer relationships through digital services and the development of environmentally friendly products[54] - The company launched its first sustainable packaging product, "Greatview® Planet," which incorporates plant-based polyethylene[56] - The company expanded its production of "Greatview Diamond" packaging to its German factory, enhancing product offerings in Europe[55] - The company acquired a factory in Italy to upgrade its supply chain in response to global market demands[54] Corporate Governance and Compliance - The company has adopted several new accounting standards and amendments effective from January 1, 2022, which are not expected to have a significant impact on the financial statements[14] - The company’s financial statements are prepared in accordance with International Financial Reporting Standards and the Hong Kong Companies Ordinance, ensuring compliance with applicable regulations[12] - The board has decided against the proposed sale, considering feedback from major clients and partners, believing it could significantly harm business and financial performance[91] - The company has adopted the corporate governance code as per the listing rules and confirmed compliance by all directors as of December 31, 2022[94] Employee and Operational Metrics - As of December 31, 2022, the company employed approximately 1,780 employees, an increase from 1,754 employees in 2021[85] - Total employee benefits expenditure for the year ended December 31, 2022, was approximately RMB 341.5 million, compared to RMB 323.3 million in 2021, reflecting a year-on-year increase of about 5.5%[85] Challenges and Risks - The company faced high raw material purchasing prices and ongoing supply chain pressures due to multiple factors, including geopolitical tensions and global inflation[61] - Concerns have been raised regarding the potential impact on business relationships with major clients due to the proposed sale, particularly with the company's largest customer[90]

Financial Performance - Revenue for the first half of 2022 was RMB 1,774.2 million, representing a 14.5% increase from RMB 1,549.8 million in the same period of 2021[6] - Gross profit decreased to RMB 259.9 million, down 26.7% from RMB 354.6 million year-on-year[6] - Net profit fell by 53.4% to RMB 67.4 million compared to RMB 144.6 million in the previous year[6] - Basic and diluted earnings per share were RMB 0.05, a decrease of 53.7% from RMB 0.108 in the prior year[6] - Revenue for the six months ended June 30, 2022, was RMB 1,774,154 thousand, an increase from RMB 1,549,787 thousand in the same period of 2021, representing a growth of 14.5%[73] - Gross profit decreased to RMB 259,886 thousand from RMB 354,585 thousand, reflecting a decline of 26.6% year-over-year[73] - Operating profit for the period was RMB 84,367 thousand, down 56.7% from RMB 194,930 thousand in the previous year[73] - Net profit attributable to the owners of the company was RMB 67,371 thousand, a decrease of 53.3% compared to RMB 144,551 thousand in the same period last year[75] - The company reported a total comprehensive income of RMB 49,280 thousand for the period, down from RMB 118,939 thousand in the same period of 2021, a decrease of 58.6%[75] Market and Economic Conditions - Global economic growth is expected to slow to approximately 3.6% in 2022, down from about 6.1% in 2021[10] - The cost of living crisis is impacting global markets, with inflation in OECD countries reaching an average of 9.6%[11] - China's consumer price index growth remains low at around 2%, supporting the continuous growth of the dairy industry[11] - By 2024, annual consumer spending on dairy products in China is expected to exceed RMB 500 billion[11] Operational Highlights - The company remains the third largest supplier of aseptic packaging materials in the liquid food industry[10] - In the first half of 2022, the company sold approximately 11 billion packages, representing an increase of about 18.0% compared to the same period in 2021[16] - The production capacity of the company as of June 30, 2022, was approximately 30 billion packages, with a utilization rate of about 77.0%, up from 64.3% in the previous year[20] - The international and Chinese divisions saw sales increases of approximately 29.1% and 13.3%, respectively, due to new product specifications and expanded customer penetration[16] Sustainability and Innovation - The company launched its first sustainable product, "Greatview® Planet," which incorporates plant-based polyethylene and has been certified by the Sustainable Biomaterials Roundtable[1] - The company is committed to sustainability, helping beverage producers transition to sustainable materials and circular economy practices through its product offerings[18] - The company is actively developing new products and diversifying its packaging solutions to enhance its customer base and brand image globally[1] Financial Position and Cash Flow - Cash and cash equivalents as of June 30, 2022, were approximately RMB 585.1 million, up from RMB 425.2 million as of December 31, 2021[37] - The group's current assets exceeded current liabilities, resulting in working capital of approximately RMB 1,179.9 million as of June 30, 2022, up from RMB 1,069.1 million as of December 31, 2021[42] - Total capital expenditure for the group was approximately RMB 20.4 million as of June 30, 2022, significantly lower than RMB 88.3 million as of December 31, 2021, primarily for the procurement of production machinery and equipment[44] - Operating cash flow for the six months ended June 30, 2022, was RMB 167,082 thousand, a significant increase from a cash outflow of RMB 11,247 thousand in the same period of 2021[83] Challenges and Risks - The company faced significant supply chain challenges due to high raw material prices, global inflation, and disruptions caused by the pandemic and geopolitical tensions[21] - Distribution expenses increased by approximately RMB 20.1 million or 19.3% to about RMB 124.3 million, mainly due to rising transportation costs[33] Corporate Governance - The audit committee consists of three independent non-executive directors and one non-executive director, ensuring compliance with corporate governance standards[69] - The company has adopted the Corporate Governance Code as its own governance code and confirmed compliance as of June 30, 2022[67] Shareholder Information - JSH Venture Holdings Limited, Jardine Strategic Limited, and Jardine Matheson Holdings Limited collectively own 377,132,584 shares, representing 28.22% of the total issued shares[55] - Hill Garden and its associated entities hold 129,000,000 shares, accounting for 9.65% of the total issued shares[55] - Mittleman Investment Management, LLC and Aimia Inc. each own 80,667,762 shares, which is 6.04% of the total issued shares[55] Employee and Management - The group employed approximately 1,761 employees as of June 30, 2022, with total employee benefit expenses amounting to approximately RMB 160.6 million, an increase from RMB 151.0 million for the same period in 2021[47] - The remuneration for key management personnel for the six months ended June 30, 2022, was RMB 5,477,000, a decrease from RMB 6,424,000 for the same period in 2021, reflecting a decline of about 14.7%[134]

Financial Performance - Revenue for the year ended December 31, 2021, was RMB 3,464.3 million, representing a 14.0% increase from RMB 3,038.9 million in 2020[9] - Gross profit decreased by 13.4% to RMB 697.7 million from RMB 805.6 million in the previous year[9] - Net profit fell by 16.8% to RMB 285.1 million compared to RMB 342.8 million in 2020[9] - Basic and diluted earnings per share decreased by 19.2% to RMB 0.21 from RMB 0.26 in 2020[9] - The company did not declare a dividend for the year, compared to a proposed dividend of HKD 0.14 in 2020[9] - Revenue increased by approximately 14.0% from RMB 3,038.9 million in 2020 to RMB 3,464.3 million in 2021, driven by higher sales volumes in both domestic and international markets[51] - Revenue from the China segment rose by RMB 287.6 million or 13.6% to RMB 2,402.8 million, primarily due to increased sales volume[51] - International segment revenue increased by RMB 137.8 million or 14.9% to RMB 1,061.5 million, attributed to improved customer penetration and acquisition of new clients[51] - Gross profit decreased by RMB 107.9 million or 13.4% to RMB 697.7 million, with gross margin declining from approximately 26.5% to 20.1% due to price reductions and rising raw material costs[53] - Net profit decreased by RMB 57.7 million or 16.8% to RMB 285.1 million, with net profit margin declining from approximately 11.3% to 8.2%[60] Operational Highlights - The company achieved a sales volume of over 21 billion packages, marking an approximate growth of 20.1%[23] - The total annual production capacity of the company is approximately 30 billion packages, with a production of about 21.2 billion packages in 2021, resulting in a utilization rate of approximately 70.6%, up from 59.0% in 2020[35] - The company sold approximately 21 billion packaging units in 2021, representing a 20.1% increase compared to 2020[30] - Selling costs rose by RMB 533.4 million or 23.9% to RMB 2,766.7 million, mainly due to increased sales volume and raw material price hikes[52] - Inventory turnover days improved from approximately 111.4 days to 101.6 days, indicating better inventory management[63] Market and Product Development - The company launched new packaging specifications, including the "Greatview® Planet" sustainable packaging material, to enhance product sustainability and expand its customer base[32] - The company is committed to developing environmentally friendly products to meet the diverse and growing market demand for aseptic packaging materials[32] - The company launched a new packaging material, "Greatview® Planet," made from wood fiber polyethylene, and the German factory has successfully started production of this material[95] - In 2021, the company launched two new packaging products, the 200ml and 180ml slim packages, enhancing product differentiation and competitiveness for customers[38] - The company aims to create and enhance industry value for the liquid food sector, focusing on providing customized, high-quality, and affordable products[91] Strategic Initiatives - The company is focusing on enhancing its digital capabilities to improve operational efficiency and customer service in digital marketing[23] - The company aims to build a resilient supply chain and enhance its core capabilities while focusing on carbon reduction and circular economy manufacturing[24] - The company plans to deepen cooperation with existing customers and expand its market share in China through digitalization and innovation[74] - The company aims to enhance its international business by strengthening local operations and promoting new product development[74] - The company is actively seeking alternative sources for key raw materials to address supply chain disruptions caused by COVID-19, while maintaining reasonable safety stock levels[185] Risk Management and Governance - The company has identified major risks and uncertainties that could impact its financial condition, operating performance, and business outlook[92] - The board believes that its risk management and internal control systems are effective and sufficient to protect shareholder investments and company assets[173] - The company conducts annual reviews of its risk management and internal control systems to ensure their effectiveness[173] - The company has established a "three lines of defense" risk management framework to enhance its risk management and internal control systems[175] - The company has implemented a risk management plan that includes identifying, reviewing, and analyzing potential risks in its operations[179] Corporate Governance - The company’s board of directors and senior management have confirmed their independence as of December 31, 2021, in accordance with listing rules[100] - The board consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors[139] - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience to enhance performance[141] - The roles of the chairman and CEO are separated to ensure a balance of power, with Mr. Hong serving as chairman and Mr. Bi as CEO[145] - The company emphasizes the importance of board diversity for improving overall performance and will continue to seek potential successors to enhance gender diversity[141] Environmental and Social Responsibility - The company is committed to minimizing its environmental impact through clean production and efficient resource utilization[93] - The company has made charitable donations totaling approximately RMB 121,000 thousand during the year, compared to none in the previous year[129] - In July 2021, the company contributed to building 10 "Hope Houses" in Gaotang County, supporting children aged 8 to 14 without independent living and learning environments[93] - The company is actively participating in initiatives to improve the recycling rate of beverage paper-based composite packaging, aiming for a 40% resource utilization rate by 2025[44] - The company installed solar panels at its German factory, expected to generate approximately 2.28 million kWh of electricity annually, equivalent to the annual electricity consumption of about 500 households, reducing CO2 emissions by approximately 1,000 tons per year[95]

Financial Performance - Revenue for 2019 was RMB 2,706.9 million, an increase of 8.6% compared to RMB 2,492.7 million in 2018[12] - Gross profit for 2019 was RMB 668.2 million, reflecting an 8.1% increase from RMB 617.9 million in 2018[12] - Net profit decreased by 6.3% to RMB 337.3 million in 2019 from RMB 360.1 million in 2018[12] - Basic and diluted earnings per share for 2019 were RMB 0.25, down 7.4% from RMB 0.27 in 2018[12] - Total assets as of December 31, 2019, were RMB 3,592.4 million, an increase from RMB 3,220.5 million in 2018[22] - Total liabilities for 2019 were RMB 1,139.2 million, compared to RMB 781.1 million in 2018[22] - The company sold approximately 15.3 billion packages in the year ended December 31, 2019, an increase of about 13.3% compared to 2018, primarily driven by sales growth in the Chinese market[43] - Domestic revenue from the Chinese market rose by approximately RMB 316.2 million or 19.8% to approximately RMB 1,914.9 million in 2019, mainly due to increased sales volume[61] - International revenue decreased by approximately RMB 102.0 million or 11.4% to approximately RMB 792.0 million in 2019, due to strategic business integration efforts[61] - The company's gross profit increased by approximately RMB 50.3 million or 8.1% to approximately RMB 668.2 million, with a gross margin of about 24.7%[65] Strategic Initiatives - The company aims to enhance R&D investment and expand its technical service scope to improve product quality and operational efficiency[25] - The company launched a multi-year growth plan in 2019, focusing on higher-value technical services and digital solutions to improve its world-class aseptic packaging solutions[37] - The company aims to optimize its customer portfolio and expand its service value chain to ensure sustainable growth in a competitive market[40] - The company aims to diversify its product offerings and enhance its customer base through new product development and strategic acquisitions[44] - The company is focused on market expansion and new product development, aiming to leverage its expertise in sterile packaging to capture new market opportunities[89] Product Development and Innovation - Greatview's smart packaging has provided at least 5 billion digital touchpoints for target consumers through unique QR codes on each carton[25] - The company is transitioning to a provider of highly digitalized aseptic packaging solutions in response to market trends[25] - The company successfully developed and launched the "Fengmei Eco-Pack" and filling machines, significantly reducing plastic usage in production[37] - The company introduced new product sizes, including a 330ml variant of "Fengmei Brick" and a 1000ml-Square variant of "Fengmei Diamond," broadening its product range[37] - The company is committed to digital innovation, enhancing operational efficiency and customer interaction through data analysis and demand forecasting[40] Awards and Recognition - The "Smart Packaging Traceability Project" received recognition as an "Outstanding Golden Cauldron Project" from the National Technical Standard Innovation Base (Dairy Industry) in China[25] - The company received several awards in 2019, including the "Best Strategic Support Award" and "Most Valuable Creative Award" from Mengniu Dairy[50] - The company’s "Smart Packaging Traceability Project" won the "Outstanding Golden Cauldron Project" award from the National Technical Standards Innovation Base (Dairy Industry) in November 2019[40] Operational Efficiency - Total annual production capacity was approximately 30 billion packages as of December 31, 2019, up from approximately 25.4 billion packages in 2018[45] - The production volume for the year was approximately 15.2 billion packages, with a utilization rate of about 50.7%, down from 52.8% in 2018[45] - Inventory turnover days decreased from approximately 117.2 days to about 109.5 days, while trade receivables turnover days increased from approximately 57.0 days to about 65.6 days for the year ended December 31, 2019[74] Corporate Governance - The company has adopted the corporate governance code as its own governance code and has complied with all relevant provisions[187] - The board of directors consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors[193] - The company emphasizes the importance of board diversity for enhancing performance quality[199] - The board has adopted a diversity policy for its members, focusing on factors such as gender, age, cultural and educational background, race, professional experience, skills, knowledge, and tenure[200] Financial Management - Cash and cash equivalents held as of December 31, 2019, were approximately RMB 562.8 million, compared to RMB 556.4 million as of December 31, 2018[73] - Other income decreased by approximately RMB 3.3 million or 4.0% to about RMB 79.7 million for the year ended December 31, 2019, primarily due to a reduction in government subsidies, foreign exchange gains, and income from financial products[66] - Distribution expenses increased by approximately RMB 26.7 million or 19.6% to about RMB 163.0 million for the year ended December 31, 2019, mainly due to higher transportation and promotional expenses[67] - Administrative expenses rose by approximately RMB 15.0 million or 11.6% to about RMB 145.0 million for the year ended December 31, 2019, primarily due to increases in salaries, benefits, and R&D expenses[68] - Income tax expenses increased by approximately RMB 19.9 million or 23.6% to about RMB 104.4 million for the year ended December 31, 2019, with the effective tax rate rising from approximately 19.0% to about 23.6%[69] Market Expansion - The company expanded its customer base to seven new countries, covering over 50 markets, resulting in increased average selling prices and profit margins[33] - The "Smart Packaging" service was expanded from China to Central Asia, with a successful collaboration with Oman’s Topfruit brand, indicating broad overseas market potential[37] - The company plans to expand market share in China by increasing existing customer penetration and broadening the customer base, while also developing international business and enhancing product range and after-sales service[87] Shareholder Returns - The board proposed a final dividend of approximately HKD 187.2 million (HKD 0.14 per share) for the year ended December 31, 2019, compared to HKD 164.0 million for the previous year[174] - The company aims to provide stable and sustainable returns to shareholders as part of its dividend policy, which is subject to review and potential updates by the board[136] Risk Management - The group has identified various risks and uncertainties that may affect its financial condition, operational performance, and business outlook[119] - The company is closely monitoring the impact of COVID-19 on its financial condition and operational performance[179] - The company has implemented emergency measures including increasing logistics options and assessing supplier readiness[178]