Sales Performance - The cumulative sales of the two main products, Besunyen Tea and Changqing Tea, exceeded 4.8 billion bags with total sales revenue surpassing RMB 6.2 billion as of the end of 2018[3] - In 2018, the company's revenue was RMB 378.4 million, a decrease of 22.4% compared to RMB 487.8 million in 2017[64] - Gross profit fell from RMB 375.1 million in 2017 to RMB 255.3 million in 2018, a decline of 31.9%, with gross margin decreasing from 76.9% to 67.5%[64] - The sales volume of Bi Sheng Yuan's Chang Run Tea dropped from 151.7 million bags in 2017 to 86.3 million bags in 2018, a decline of 43.8%[98] - The revenue from weight loss products increased by 19.0% to RMB 67.0 million in 2018[98] Market Position - The market share of Changrun Tea is 13.82% and Changqing Tea is 33.19%, maintaining the leading position in the market[4] - The market share of Biyuan brand Changqing Tea in the weight loss product segment was 33.19% in 2018, an increase of 1.33 percentage points year-on-year[65] - Biyuan brand Changrun Tea held a market share of 13.82% in the intestinal health product segment in 2018, a decrease of 0.73 percentage points year-on-year[65] Distribution and Sales Network - The sales team covers all 31 provinces, autonomous regions, and municipalities in China, serving nearly 100,000 OTC retail stores[5] - The company has 63 distributors and 232 wholesalers, enhancing its national sales network[5] - The company aims to leverage its existing distribution channels for faster market entry of new products, maintaining its industry-leading position[5] Product Development and R&D - The company has extended its product line into the weight loss pharmaceutical market through partnerships and acquisitions, including the acquisition of Zhongshan Wanhua Pharmaceutical Co., Ltd.[3] - The company focuses on natural herbal ingredients for its products, providing safe and effective health solutions for weight management[4] - The company has a strong commitment to research and development in functional health teas and pharmaceuticals, enhancing its competitive edge in the market[3] - In 2018, the company registered six new eye drop products and submitted 21 invention patent applications, reflecting its commitment to R&D and product development[87] - The company aims to expand its product line and enhance R&D capabilities to improve its competitive position in the health industry[61] Marketing Strategies - The company has focused on innovation in marketing strategies and explored e-commerce channels to enhance brand promotion[66] - The collaboration with the "Sakura Girls" live streaming event resulted in over 30 million views and 4.68 billion total brand exposures, significantly boosting brand awareness among younger demographics[73] - The "Little Blue Box" marketing campaign on platforms like Douyin and Weibo generated over 300 million views and 50,000 discussions, effectively engaging the youth market[74] - The company signed contracts for six new product placements in popular TV dramas, aiming to enhance brand visibility and appeal to younger audiences[77] - The brand's new image campaign emphasized youthfulness and health, aligning with its marketing transformation goals[71] Financial Performance - The company recorded a total comprehensive loss of RMB 93.5 million in 2018, compared to a total comprehensive income of RMB 5.3 million in 2017[64] - The company's net loss for the year was RMB 93.472 million, compared to a profit of RMB 5.281 million in 2017, with a loss attributable to owners of the company amounting to RMB 95.299 million[94] - The total operating expenses for 2018 were RMB 382.8 million, down 6.0% from RMB 407.4 million in 2017[64] - The company's administrative expenses rose by 5.1% to RMB 112.4 million, accounting for 29.7% of total revenue[107] Corporate Social Responsibility - The company has established a charity fund to support social welfare activities, enhancing its corporate social responsibility initiatives[88] - The company received the "2018 Outstanding Corporate Social Responsibility Award" for its active participation in social welfare projects[89] - The group has a commitment to corporate social responsibility, aligning its development with national goals and promoting a healthy lifestyle[165] Environmental Impact - The company reported industrial waste gas emissions of 1,627,668 cubic meters in 2018, an increase from 1,336,430 cubic meters in 2017[180] - The company generated 4,533 tons of industrial wastewater in 2018, with a per ton production wastewater generation of 4 tons, which increased by 3,582 tons compared to 2017[187] - The company has implemented comprehensive measures for wastewater treatment, ensuring compliance with the Water Pollution Prevention Law[183] - The company has committed to sustainable development by promoting "clean production" and actively engaging employees in environmental protection activities[177] Employee Management - The company maintained a workforce of 1,121 employees as of December 31, 2018, an increase from 1,020 employees in 2017[141] - The group has implemented a human resources management philosophy that respects talent and motivates employees through scientific assessment policies[167] Quality Management - The production facilities comply with national GMP standards and have received ISO9001, ISO22000, and HACCP certifications[4] - The group emphasizes strict quality management, considering product safety as the top priority for corporate life[167] - The company has established a packaging material procurement system to ensure compliance with national food safety standards[199]