香 港 交易 及 結 算 所 有限 公 司 及 香港 聯 合 交 易 所有 限 公 司 對 本公 告 的 內 容概 不 負 責， 對 其 準 確 性或 完 整 性 亦不 發 表 任 何 聲明 ， 並 明 確 表示 ， 概 不 就因 本 公 告全 部 或 任 何 部分 內 容 而 產生 或 因 倚 賴 該等 內 容 而 引 致之 任 何 損 失承 擔任何責任。 Shanghai Kindly Medical Instruments Co., Ltd. * 上 海 康 德 萊 醫 療 器 械 股 份 有 限 公 司 （ 於中華人民共和國註冊成立的股份有限公司 ） （股份代號：1501） 有關2022年報的補充公告 茲提述上海康德萊醫療器械股份有限公司於2023年4月13日刊發的年度報告 （「2022 年 報」）。 除 非 文 義 另 有 所 指 ， 否 則 本 公 告 所 用 詞 彙 與 2022 年 報 所 界 定 者 具 有 相同 涵 義 。 本 公 告 提供 年 報 的 補 充 資 料， 並 應 與 2022 年 報 一 併閱 讀。 有關股份激勵計劃及根據股份激勵計劃授出獎勵的詳情（ 載於2022年報第32 ...

Financial Performance - For the six months ended June 30, 2023, the company's revenue was approximately RMB 339.76 million, an increase of 50.86% compared to RMB 225.22 million for the same period in 2022[5]. - The gross profit for the reporting period was approximately RMB 200.35 million, with a gross margin increase from 55.07% to 58.97%[6]. - The profit for the period was approximately RMB 80.51 million, representing a 60.61% increase from RMB 50.13 million in the previous year[6]. - Basic earnings per share for the reporting period were RMB 0.48, up 54.84% from RMB 0.31 in the same period last year[6]. - Other income for the reporting period was approximately RMB 22.79 million, a 4.51% increase from RMB 21.81 million for the same period last year[20]. - The total comprehensive income for the period was RMB 81,554,000, up from RMB 50,957,000 in the same period last year[74]. - The company reported a profit of RMB 80,502 thousand for the six months ended June 30, 2023, compared to RMB 50,841 thousand for the same period in 2022, marking a growth of 58.5%[78]. - The company reported a net cash outflow from financing activities of RMB 19,177,000, compared to an outflow of RMB 19,804,000 in the same period last year[79]. Revenue Breakdown - Revenue from interventional medical devices was approximately RMB 302.26 million, up from RMB 192.44 million for the same period last year, representing an increase of about RMB 109.82 million[17]. - Revenue from cardiovascular devices reached RMB 282,085,000, up 53.3% from RMB 184,171,000 year-on-year[83]. - Revenue from external customers in mainland China was RMB 267,569,000, a 47.5% increase compared to RMB 181,503,000 in the previous year[85]. - Revenue for the same period was RMB 339,764,000, up 50.8% from RMB 225,217,000 year-on-year[72]. Research and Development - Research and development expenses totaled approximately RMB 86.53 million, accounting for about 25.47% of total revenue, compared to 23.71% for the same period last year[24]. - Research and development costs for the period amounted to RMB 86,537,000, which is a 62.0% increase from RMB 53,391,000 in the previous year[91]. - The company received government subsidies totaling RMB 5,913,000, compared to RMB 2,686,000 in the prior period, indicating a significant increase in support for R&D projects[89]. - The company plans to further develop its product pipeline and increase R&D investment in the second half of 2023[14]. Market Position and Strategy - The company is a leading manufacturer of cardiovascular interventional devices in China, with a complete industry chain from design to sterilization[7]. - The increase in revenue was primarily driven by growing market demand and an increase in the number of new customers[5]. - The company plans to leverage its strong brand marketing system and R&D capabilities to gain a larger market share as procurement scopes expand[8]. - The company is exploring market expansion opportunities, particularly in the medical device sector, to enhance its competitive position[1][58]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by the end of 2024[138]. Shareholder Information - The company’s board of directors consists of two executive directors, four non-executive directors, and three independent non-executive directors, ensuring strong governance and independence[41]. - The company has disclosed no additional interests or short positions held by directors or senior management as of June 30, 2023[49]. - Major shareholders include Mr. Wang Kai and Ms. Zhao Wei, each holding 14.19% of H shares, representing approximately 8.80% of total shares[1][57]. - The company continues to maintain transparency regarding its shareholder structure and compliance with regulatory requirements[50]. Capital Expenditures and Investments - Capital expenditures for the period amounted to approximately RMB 148.63 million, compared to RMB 103.99 million for the same period in 2022, representing an increase of 43%[38]. - The group has utilized approximately RMB 647.41 million of the net proceeds from the global offering, with planned uses including the construction of a R&D center and expansion of production facilities[30]. - The group has significant investments in various partnerships, with a total investment cost of RMB 125 million and a fair value of RMB 159.974 million as of June 30, 2023[34]. - The company is exploring potential acquisitions to enhance its product portfolio, with a budget of RMB 200 million allocated for this purpose[138]. Cash Flow and Liquidity - As of June 30, 2023, the group's cash and cash equivalents were approximately RMB 458.22 million, down from RMB 518.27 million as of December 31, 2022, with net cash flow from operating activities of approximately RMB 66.19 million for the six months ended June 30, 2023[27]. - The total current assets as of June 30, 2023, were approximately RMB 728.20 million, while total current liabilities were approximately RMB 306.35 million, resulting in a current ratio of about 2.38[27]. - The company’s cash and cash equivalents included bank deposits of RMB 458,164 thousand as of June 30, 2023, compared to RMB 518,245 thousand as of December 31, 2022[112]. - Cash and cash equivalents decreased to RMB 458,217 thousand from RMB 518,266 thousand, a decline of 11.6%[75]. Share Incentive Plan - The board approved a share incentive plan to grant up to 5,000,000 restricted shares to no more than 100 employees, with 2,500,000 shares allocated to Dr. Liang Dongke and the incentive platform[60]. - The total number of restricted shares granted to Dr. Liang Dongke is 3,234,300, with no cancellations or forfeitures reported during the period[62]. - The company plans to seek shareholder approval for amendments to the performance targets of the share incentive plan, extending the review period to December 31, 2023[61]. - The company did not grant any restricted shares during the six months ended June 30, 2023, compared to 341,900 shares granted in the same period of 2022, indicating a complete halt in new grants[106].

Financial Performance - The company's revenue for the six months ended June 30, 2023, was approximately RMB 339.76 million, an increase of 50.86% compared to RMB 225.22 million for the same period in 2022[2] - Gross profit for the reporting period was approximately RMB 200.35 million, with a gross margin increase from 55.07% to 58.97% due to higher sales of medical devices with better margins[3] - Profit for the period was approximately RMB 80.51 million, representing a 60.61% increase from RMB 50.13 million in the same period last year[3] - Basic earnings per share for the reporting period were RMB 0.48, up from RMB 0.31 in the previous year, while diluted earnings per share were RMB 0.47 compared to RMB 0.30[4] - The company reported other income of RMB 22.79 million for the period, compared to RMB 21.81 million in the previous year[5] - The net profit for the six months ended June 30, 2023, was RMB 80,505,000, compared to RMB 50,125,000 for the same period in 2022, reflecting a growth of 60.5%[21] - The group's net profit for the reporting period was approximately RMB 80.51 million, a 60.61% increase from RMB 50.13 million for the six months ended June 30, 2022[57] Revenue Breakdown - Revenue from cardiovascular devices was RMB 282,085,000, up from RMB 184,171,000, indicating a growth of 53.2%[16] - Revenue from external customers in mainland China reached RMB 267,569,000, a significant increase of 47.5% compared to RMB 181,503,000 in the previous year[17] - The sales revenue from interventional medical devices was approximately RMB 302.26 million, up from RMB 192.44 million for the same period last year, representing an increase of approximately RMB 109.82 million[48] Research and Development - Research and development expenses increased to RMB 64.59 million from RMB 37.93 million in the previous year[5] - Research and development costs for the six months ended June 30, 2023, amounted to RMB 86,537,000, an increase from RMB 53,391,000 in the previous year, representing a rise of 62.1%[23] - The R&D team consists of professionals with over 10 years of experience, holding 292 registered patents and 213 pending patent applications as of June 30, 2023[43] - The company plans to increase R&D investment and advance core product development and new product certification in the second half of 2023[47] Assets and Liabilities - Non-current assets as of June 30, 2023, totaled RMB 1,207.72 million, an increase from RMB 1,025.39 million as of December 31, 2022[8] - As of June 30, 2023, total current liabilities amounted to RMB 306,350 thousand, an increase of 27.8% compared to RMB 239,665 thousand as of December 31, 2022[9] - Net current assets decreased to RMB 421,846 thousand from RMB 562,276 thousand, reflecting a decline of 25%[9] - Total assets less current liabilities increased to RMB 1,629,566 thousand from RMB 1,587,669 thousand, representing a growth of 2.6%[9] - Non-current liabilities totaled RMB 35,857 thousand, up from RMB 33,565 thousand, indicating a rise of 6.8%[9] - Net assets increased to RMB 1,593,709 thousand from RMB 1,554,104 thousand, showing a growth of 2.5%[9] Cash Flow and Financing - Cash and cash equivalents decreased to RMB 458.22 million from RMB 518.27 million as of December 31, 2022[8] - Loans and borrowings increased significantly to RMB 96,060 thousand from RMB 32,683 thousand, reflecting a growth of 194.5%[9] - The group borrowed approximately RMB 96.06 million from banks in China, resulting in a debt-to-equity ratio of 6.99%[59] Market Presence and Expansion - The company plans to continue expanding its market presence, particularly in Europe and the United States, where revenues increased to RMB 18,240,000 and RMB 15,964,000 respectively[17] - The distribution network covers 23 provinces, 4 municipalities, and 5 autonomous regions in China, with 2,650 hospitals served, including 920 tertiary hospitals[44] - The company is focusing on expanding its market presence in the medical device and biotechnology sectors through strategic investments[69] Employee and Operational Costs - Employee costs for the reporting period amounted to approximately RMB 132.87 million, compared to RMB 100.74 million for the same period last year[64] - The company has a total of 1,532 employees as of June 30, 2023, down from 1,632 employees as of December 31, 2022[64] Dividends and Shareholder Returns - The company did not declare any interim dividend for the reporting period[3] - The board has resolved not to declare any interim dividend for the six months ended June 30, 2023[61] - The company approved and paid a final cash dividend of RMB 0.24 per share for the year ended December 31, 2022, totaling RMB 40.32 million, a decrease from RMB 0.26 per share and RMB 43.68 million in the previous year[40] Capital Expenditure and Commitments - The company has utilized RMB 328.38 million (41.17%) for the purchase of additional production equipment and automation of production lines, with a remaining balance of RMB 304.48 million expected to be used by December 2023[62] - A total of RMB 110.07 million (13.80%) has been allocated to expand the distribution network and marketing efforts, with RMB 72.98 million remaining to be utilized by June 2024[62] - As of June 30, 2023, the group's capital expenditure on property, plant, and equipment amounted to approximately RMB 148.63 million[71] Compliance and Risk Management - The group’s independent auditor has reviewed the interim financial report for the reporting period, confirming compliance with applicable accounting principles[78] - The group plans to continue monitoring foreign exchange risks and will consider hedging strategies as necessary[73]

Financial Performance - The company's revenue for the year ended December 31, 2022, reached approximately RMB 585.88 million, an increase of about 26.08% compared to RMB 464.68 million for the year ended December 31, 2021[5]. - Revenue from the sale of interventional medical devices was approximately RMB 505.48 million, representing a growth of about 15.89% from RMB 436.16 million in the previous year[5]. - The company's profit for the reporting period was approximately RMB 133.83 million, a decrease of about 4.7% from RMB 140.45 million in the previous year[5]. - The gross profit for 2022 was RMB 332.49 million, resulting in a gross margin of 56.7%, down from 59.3% in 2021[11]. - The net profit for the year was RMB 133.83 million, with a net profit margin of 22.8%, a decrease from 30.2% in 2021[11]. - The basic and diluted earnings per share for the reporting period were RMB 0.79 and RMB 0.78, respectively, compared to RMB 0.86 for both in the previous year[5]. - Other income decreased by approximately 32.15% to RMB 34.04 million from RMB 50.17 million in the previous year[30]. - Distribution costs increased by approximately 87.85% to RMB 56.39 million, accounting for about 9.63% of total revenue, up from 6.46% in the previous year[32]. - Administrative expenses for the reporting period were approximately RMB 642.9 million, an increase from RMB 490.5 million for the year ended December 31, 2021, primarily due to salary and compensation increases from business expansion[33]. - Research and development expenses amounted to approximately RMB 1,409.4 million, with RMB 413.1 million capitalized as intangible assets and RMB 996.3 million deducted from profit and loss, representing a 28.35% increase from RMB 1,098.1 million for the year ended December 31, 2021[34]. Distribution Network and Market Presence - The company has a distribution network covering 2,317 hospitals in China, including 908 tertiary hospitals, and has 207 overseas customers across 58 countries and regions[6][8]. - The company expanded its distribution network to cover 2,317 hospitals in China, including 908 top-tier hospitals, and has 207 overseas clients across 58 countries[17]. - The largest customer accounted for 8.29% of total sales, while the top five customers collectively represented 22.38% of total sales[61]. - The largest supplier accounted for 8.14% of total purchases, with the top five suppliers making up 27.95% of total purchases[61]. Research and Development - As of December 31, 2022, the company held 260 registered patents, 184 pending patent applications, and 5 registered software copyrights[7]. - The company obtained 9 new product registration certificates during the reporting period, including 6 Class III medical device registrations and 3 Class II registrations[7]. - The company has obtained 6 Class III medical device registrations and 3 Class II registrations from the National Medical Products Administration in 2022, totaling 31 Class III and 23 Class II registrations by year-end[15]. - The company applied for 91 new patents during the reporting period, emphasizing its commitment to technological innovation and product competitiveness[163]. Future Plans and Investments - The company plans to enhance its product pipeline and increase R&D investment to maintain its leading position in the interventional medical device industry in 2023[5]. - The company aims to leverage its new R&D center in Shanghai and a new factory in Zhuhai to improve automation and scale production[5]. - The company plans to utilize RMB 156.33 million for the construction of the Shandong Yingtai Innovation Medical Devices Industrial Park, with an expected completion date in June 2024[43]. - The company has committed to invest RMB 50 million in the Chengdu Huige Fund, focusing on early-stage or growth-stage companies in the medical and biotechnology sectors[25]. Corporate Governance - The board of directors is committed to establishing good corporate governance standards to protect shareholder interests and enhance transparency and accountability[111]. - The company has a governance structure consisting of the general meeting of shareholders, board of directors, supervisory board, and management, ensuring clear responsibilities and coordination among these entities[112]. - The board has established an audit committee, remuneration committee, and nomination committee to oversee various responsibilities[115]. - The company has complied with the corporate governance code and has appointed more than the minimum required number of independent non-executive directors since its listing[119]. - The board believes that the company's structure provides adequate checks and balances to enhance risk management procedures[143]. Environmental, Social, and Governance (ESG) Initiatives - The company’s ESG report for 2022 highlights key issues such as product health and safety, supply chain management, and customer privacy[161]. - The company has established an ESG governance structure to oversee environmental and social matters, ensuring sustainable development[165]. - The company emphasizes the importance of timely and accurate information disclosure to enhance investor relations and transparency[155]. - The company is committed to energy conservation and resource-saving practices to contribute to an environmentally friendly society[164]. - The company has implemented strict quality control measures throughout the supply chain to ensure high-quality products for users[162]. Employee and Workforce Management - The total number of full-time employees at the end of the reporting period was 1,632, an increase from 1,189 in 2021, indicating a growth in workforce[199]. - The employee turnover rate for male employees in 2022 was 33.70%, while for female employees it was 33.00%[200]. - The company emphasizes the importance of employee rights and provides competitive salaries and benefits to foster a supportive work environment[199]. - The company has established a comprehensive training system to foster a motivated workforce[163]. Financial Position and Capital Management - The total assets of the company as of December 31, 2022, were RMB 1,827.33 million, compared to RMB 1,621.55 million in 2021[12]. - The debt-to-capital ratio as of December 31, 2022, was 3.14%, up from 0.93% in 2021, with bank loans amounting to approximately RMB 326.8 million[38]. - Total equity attributable to equity shareholders was approximately RMB 15,120.2 million as of December 31, 2022, compared to RMB 13,954.7 million as of December 31, 2021[39]. - The company has a total of RMB 162.08 million in authorized but uncontracted capital commitments as of December 31, 2022[51]. Shareholder Information - The board proposed a final dividend of RMB 0.24 per share for the year ended December 31, 2022, compared to RMB 0.26 per share in 2021[40]. - The total number of shares outstanding as of December 31, 2022, is 168,000,000, consisting of 63,786,608 domestic shares and 104,213,392 H shares[81]. - The company has received shareholder approval to change its name to "Shanghai INT Medical Instruments Co., Ltd." to strengthen brand recognition and align with future strategic development[24]. Compliance and Risk Management - The company has established policies and procedures to identify, assess, and control risks that may hinder business operations[143]. - The board is responsible for the risk management and internal control systems, which are reviewed for effectiveness at least annually, with the audit committee assisting in oversight[143]. - The company has mechanisms in place to ensure that directors can seek independent professional advice when necessary, with costs covered by the company[121]. Community Engagement and Social Responsibility - The company provided suitable positions for 7 disabled individuals from the surrounding community, highlighting its commitment to social responsibility[163]. - The group donated RMB 100,000 to the Shanghai Jiading District Education Reward Foundation and RMB 30,000 for charity activities, along with over 220,000 self-produced masks to medical institutions and government agencies[101].

Financial Performance - The company's total revenue for the year ended December 31, 2022, was RMB 585.88 million, representing a 26.08% increase compared to RMB 464.68 million in 2021[2] - Gross profit for the same period was RMB 332.49 million, with a gross margin decrease from approximately 59.34% in 2021 to about 56.75% in 2022[3] - Net profit for the year was RMB 133.83 million, a decrease of 4.71% from RMB 140.45 million in the previous year[3] - Basic earnings per share (EPS) were RMB 0.79, down 8.14% from RMB 0.86 in 2021, while diluted EPS was RMB 0.78, down 9.30% from RMB 0.86[3] - Total revenue for the year ended December 31, 2022, was RMB 585,883,000, an increase from RMB 464,675,000 in 2021, representing a growth of approximately 26%[14] - Net profit for 2022 was RMB 133,833,000, a decrease of 4.4% compared to RMB 140,445,000 in 2021[21] Revenue Breakdown - Revenue from cardiovascular devices was RMB 483,059,000 in 2022, up from RMB 427,163,000 in 2021, indicating a growth of about 13%[14] - Revenue from neuro and peripheral devices increased significantly to RMB 19,755,000 in 2022 from RMB 7,123,000 in 2021, marking a growth of approximately 178%[14] - The company generated RMB 437,344,000 from mainland China in 2022, compared to RMB 361,762,000 in 2021, reflecting a growth of around 21%[16] - The company reported a total of RMB 497,054,000 in revenue from the heart intervention business for 2022, compared to RMB 411,178,000 in 2021, representing an increase of approximately 21%[20] - The company’s revenue from agency business rose to RMB 50,325,000 in 2022 from RMB 13,997,000 in 2021, showing a growth of about 260%[14] - The total revenue from other segments was RMB 133,262,000 in 2022, compared to RMB 81,732,000 in 2021, indicating an increase of approximately 63%[20] Assets and Liabilities - The company's total assets as of December 31, 2022, were RMB 1,587.67 million, compared to RMB 1,468.32 million at the end of 2021[8] - Current assets increased to RMB 1,025.39 million in 2022 from RMB 763.11 million in 2021[8] - The company's net current assets decreased to RMB 562.28 million in 2022 from RMB 705.22 million in 2021[8] - Non-current liabilities increased to RMB 33.57 million in 2022 from RMB 30.40 million in 2021[10] - Total equity rose to RMB 1,554.10 million in 2022, up from RMB 1,437.92 million in 2021[10] Research and Development - R&D expenses for 2022 amounted to RMB 140,941,000, up from RMB 109,801,000 in 2021, reflecting a 28.3% increase[26] - The R&D team consists of professionals with over 10 years of experience, holding 260 registered patents and 184 pending applications as of December 31, 2022[50] - The company plans to further develop its product pipeline and increase R&D investment in 2023, focusing on core product development and new product certification[59] Employee and Operational Costs - Employee costs for 2022 totaled RMB 190,667,000, a significant rise from RMB 133,925,000 in 2021, marking an increase of 42.3%[23] - The cost of goods sold for 2022 was RMB 253,397,000, compared to RMB 188,930,000 in 2021, indicating a 34.2% increase[26] - Distribution costs increased by approximately 87.85% to RMB 56.39 million, compared to RMB 30.02 million for the year ended December 31, 2021, accounting for about 9.63% of total revenue[65] - Administrative expenses for the reporting period were approximately RMB 64.29 million, up from approximately RMB 49.05 million for the year ended December 31, 2021, primarily due to increased salaries and other compensation related to business expansion[66] Dividends and Shareholder Information - The board proposed a final dividend of RMB 0.24 per share for the year ended December 31, 2022[3] - The company plans to declare a final dividend of RMB 0.24 per share for 2022, down from RMB 0.26 per share in 2021[44] - The group proposed a final dividend of RMB 0.24 per share for the year ended December 31, 2022, compared to RMB 0.26 per share for the year ended December 31, 2021[72] Compliance and Governance - The audit committee has reviewed the company's audited consolidated annual results and confirmed compliance with applicable accounting principles and regulations[90] - The preliminary financial figures for the year ending December 31, 2022, have been confirmed to be consistent with the audited consolidated financial statements by KPMG[91] - The company has adopted a code of conduct for securities transactions by directors and supervisors, confirming compliance during the reporting period[87] Future Plans and Investments - The company plans to invest RMB 156.33 million (19.60%) in the construction of the Shandong Yingtai Innovation Medical Devices Industrial Park, with a projected completion date of June 2024[76] - The company has committed to invest RMB 50 million in the Chengdu Huige Guosheng Venture Capital Partnership by June 30, 2026[37] - The company has established a partnership to invest RMB 50 million in the Chengdu Huai Ge Fund, targeting early-stage or growth-stage companies in the medical and biotechnology sectors[58]

Financial Performance - The company's revenue for the year ended December 31, 2020, was approximately RMB 358.43 million, an increase of about 25.12% from RMB 286.46 million in 2019[5] - The gross profit margin improved from 60.90% in 2019 to 65.40% in 2020[5] - Basic and diluted earnings per share for the year were RMB 0.73, compared to RMB 0.79 in the previous year[5] - Gross profit for 2020 was RMB 234.42 million, compared to RMB 174.44 million in 2019, reflecting a gross margin of 65.4%[11] - Net profit for the year was RMB 116.52 million, compared to RMB 96.54 million in 2019, resulting in a net profit margin of 32.5%[11] - The company's revenue for 2020 was approximately RMB 358.43 million, an increase of about 25.12% or RMB 71.97 million compared to RMB 286.46 million in 2019[12] - Revenue from interventional medical devices was approximately RMB 266.45 million, up from RMB 257.63 million in 2019, representing an increase of about RMB 8.82 million[18] - Sales from masks and medical standard parts contributed approximately RMB 70.39 million and RMB 12.20 million, respectively, with the mask business accounting for 19.64% of total revenue in 2020[18] - Net profit for the reporting period was approximately RMB 116.52 million, an increase of about 20.70% from RMB 96.54 million for the year ended December 31, 2019[26] Market Expansion and Distribution - The company had a distribution network covering 434 distributors in China, an increase from 360 in 2019, and reached 1,436 hospitals, including 664 top-tier hospitals[6] - In 2020, the company added 74 domestic distributors and 14 overseas customers, expanding its market presence to seven countries and regions[8] - The company plans to leverage brand recognition and distribution networks to increase market share and maintain its leading position in the interventional medical device industry in 2021[9] - The company has established a distribution network covering 434 distributors across 23 provinces and 1,436 hospitals in China as of the end of 2020[15] Research and Development - The company aims to enhance its R&D pipeline and increase investment in core product development and new product certification efforts[9] - The company holds 127 registered patents and 135 pending patent applications as of December 31, 2020[7] - The company achieved CE certification for six products, including cardiovascular guide wires and catheters, and obtained Class III medical device registration for three new products[7] - The company initiated clinical trials for a biodegradable sinus drug stent system and animal experiments for a transcatheter aortic valve system[7] - Research and development expenses increased by approximately 109.98% to RMB 64.59 million from RMB 30.76 million for the year ended December 31, 2019, due to ongoing development and commercialization of existing and new products[24] Corporate Governance - The company has established a corporate governance structure that includes a general meeting of shareholders, a board of directors, a supervisory board, and management, ensuring clear responsibilities and coordination[92] - The board currently consists of nine members, including two executive directors, three non-executive directors, and four independent non-executive directors[94] - The company has adopted a board diversity policy, considering factors such as gender, age, and professional experience[97] - The board is responsible for major decision-making, including policies, strategies, and financial matters[102] - The company has implemented a formal training program for newly appointed directors to ensure understanding of business operations and regulatory responsibilities[104] Employee Welfare and Corporate Culture - The company has established a comprehensive employee welfare system, including housing support and employee stock ownership plans, to foster a positive corporate culture[140] - The company implemented various employee welfare programs, including monthly meal and communication subsidies, and annual free health check-ups[169] - The workforce expanded to 967 full-time employees in 2020, up from 757 in 2019, representing a 27.7% increase[166] - Female employees accounted for 64.02% of the workforce in 2020, slightly down from 67.24% in 2019[167] Environmental and Social Responsibility - The company is committed to sustainable development, balancing environmental, social, and economic benefits for long-term growth[143] - The company has established an environmental management committee and emergency response team to oversee pollution incidents and ensure compliance with environmental laws[147] - The company has implemented a waste classification management system, ensuring proper disposal of hazardous and non-hazardous waste[153] - The company donated RMB 100,000 to the Jiading District Education Reward Foundation to support local education development[189] - The company actively participates in community development and social welfare initiatives[145] Risk Management and Compliance - The company has established a framework for internal control processes covering procurement, sales, human resources, and other business processes[122] - The board is responsible for the risk management and internal control systems, which are reviewed for effectiveness at least annually[122] - The company is actively monitoring and ensuring compliance with laws and regulations that significantly impact its operations, particularly in product safety and consumer data protection[195] Customer Satisfaction and Product Quality - Customer satisfaction survey response rate increased to 71.67% with an overall satisfaction score of 96.83%, up from 96.48% in the previous year[181] - The company has implemented strict quality control measures across all stages of production, ensuring compliance with various national and international regulations[179] - No product recalls occurred during the reporting year due to safety and health reasons, indicating strong product quality control[180] - The company has not received any complaints regarding products or services during the reporting year, reflecting high customer satisfaction[181]