Financial Performance - The company reported a significant increase in revenue, achieving a total of HK$XXX million, representing a growth of XX% compared to the previous year[12]. - The Group's revenue for the year ended December 31, 2021, was approximately RMB 631.4 million, with a profit of approximately RMB 49.0 million, reflecting a year-on-year revenue growth of 33.7% and profit growth of 20.3% despite the challenges posed by the COVID-19 pandemic[25][37]. - Earnings per share increased by 18.6% year-on-year, demonstrating strong financial performance amid adverse market conditions[25]. - The Group's revenue increased by approximately RMB159.2 million or 33.7% to approximately RMB631.4 million for the year ended 31 December 2021 from approximately RMB472.2 million for the year ended 31 December 2020[50]. - The Group's gross profit increased by approximately RMB13.0 million or 12.0% to approximately RMB121.1 million for the year ended 31 December 2021 from approximately RMB108.1 million for the year ended 31 December 2020[50]. - The Group's gross profit margin decreased to 19.2% for the year ended 31 December 2021 from approximately 22.9% for the year ended 31 December 2020[50]. - The Group's profit for the year ended 31 December 2021 is detailed in the audited financial statements, with no dividend recommended for the year[156]. User Engagement and Market Expansion - User data showed an increase in active users, reaching a total of XXX million, which is an increase of XX% year-over-year[12]. - The company provided a positive outlook for the next fiscal year, projecting revenue growth of XX% and an expected increase in user engagement[12]. - Market expansion plans include entering the Southeast Asian market, targeting a market share of XX% within the next two years[12]. - The Group successfully expanded into Central and Eastern European markets while maintaining traditional markets in Western Europe and Australia[25]. Research and Development - The Group's research and development expenses reached a record high, contributing to enhanced market competitiveness through the development of various flavors and plant sprays with independent intellectual property rights[26]. - The Group has obtained 73 patents as of December 31, 2021, focusing on technological breakthroughs in personal-care products, including essential oils and fragrance depositing[43]. - The Group aims to strengthen research and development capabilities to enrich product offerings and increase competitiveness[95]. Operational Efficiency and Cost Management - Cost management strategies have been implemented, resulting in a reduction of operational costs by XX%[12]. - The introduction of intelligent assembly lines at the Binhai Factory and the preparatory production layout at the Wuhu Factory are expected to significantly improve production capacity in 2022[30]. - The Group is upgrading production equipment and planning new production lines to enhance manufacturing capabilities[47]. - The Group plans to establish a new production base in the PRC to expand production capacity and introduce advanced equipment, targeting location selection in 2022 and completion by the end of 2024[92]. Strategic Acquisitions and Partnerships - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the industry[12]. - The company has established new partnerships to enhance distribution channels, aiming to increase market penetration by XX%[12]. Sustainability Initiatives - Sustainability initiatives are being prioritized, with a commitment to reduce carbon emissions by XX% over the next five years[12]. Employee and Director Information - The total salaries and related costs for employees amounted to approximately RMB 62.9 million for the year ended December 31, 2021[187]. - The Group had 481 employees across the PRC, Australia, and Hong Kong as of December 31, 2021[187]. - Mr. Jin is the chairman and CEO, responsible for executing board resolutions and overseeing daily operations[98]. - The independent non-executive Directors confirmed their independence as per the Listing Rules[168]. Financial Position and Taxation - The Group's financial position as of 31 December 2021 is presented in the audited financial statements, covering assets and liabilities[156]. - The statutory income tax rate for Hong Kong was 16.5% for the year ended December 31, 2021, with the first HK$2,000,000 of assessable profits taxed at 8.25%[67]. - The overall effective tax rate dropped from approximately 15.2% for the year ended 31 December 2020 to approximately 12.6% for the year ended 31 December 2021, mainly due to increased research and development expenses claimed for tax deduction[75]. Future Plans - Future plans include establishing a physical presence overseas to enhance market penetration and better serve major customers[95]. - Upgrading the Group's information system and logistics capacities is planned to enhance operational efficiency[95]. - The establishment of two regional sales offices in Europe is planned, with an expected completion by the end of 2022[161].

Financial Performance - In the first half of 2021, the company reported a revenue of HK$XX million, reflecting a YY% increase compared to the same period last year[25]. - The Group's revenue increased by approximately RMB83.1 million or approximately 52.1% to approximately RMB242.8 million for the six months ended 30 June 2021, compared to approximately RMB159.7 million for the same period in 2020[44]. - Revenue for the six months ended June 30, 2021, was RMB 242,781,000, an increase of 52% compared to RMB 159,662,000 for the same period in 2020[121]. - Gross profit increased by approximately RMB 7.6 million or 17.3% to approximately RMB 51.7 million for the six months ended June 30, 2021, from approximately RMB 44.1 million for the same period in 2020[45]. - Gross profit for the same period was RMB 51,672,000, up from RMB 44,063,000, reflecting a gross margin improvement[121]. - Operating profit increased significantly to RMB 18,125,000, compared to RMB 5,734,000 in the prior year, marking a growth of 216%[121]. - Profit for the period reached RMB 15,250,000, a substantial increase from RMB 4,319,000 in the previous year, representing a growth of 253%[121]. - Total comprehensive income for the period was RMB 15,216,000, compared to RMB 4,390,000 in 2020, indicating a strong performance[126]. Market Expansion and Product Development - The company anticipates a revenue guidance of HK$BB million for the second half of 2021, indicating a projected growth of CC%[25]. - New product launches are expected to contribute an additional HK$DD million in revenue, enhancing market competitiveness[25]. - Market expansion efforts include entering the Southeast Asian market, targeting a market share of FF% by the end of 2022[25]. - The Group's core products, fragrance candles and fragrance diffusers, remain the main focus, with significant increases in both order value and order intake[33]. - The domestic fragrance market is emerging, with increasing consumer interest in fragrance and home products, presenting significant market opportunities[33]. Research and Development - The company is investing in R&D with a budget of HK$EE million, focusing on innovative technologies to drive future growth[25]. - The Group has maintained a strong technical research and development team, optimizing the entire process ingredient system and enriching the types of self-made flavors[33]. - Strengthening research and development capabilities has an allocated budget of RMB 10.348 million, with RMB 454 thousand already utilized, aiming for completion by the end of the first half of 2022[85]. Financial Position and Cash Flow - Cash and cash equivalents as of June 30, 2021, were RMB 131,889,000, an increase from RMB 110,735,000 at the end of 2020[130]. - Total assets as of June 30, 2021, amounted to RMB 412,363,000, up from RMB 396,113,000 at the end of 2020[130]. - The balance of retained earnings increased to RMB 120,321, up from RMB 105,043, marking a growth of 14.5%[141]. - Net cash used in operating activities was RMB (935), a significant improvement compared to RMB (14,415) in the previous year[151]. - Net cash generated from investing activities was RMB 24,603, contrasting with a cash outflow of RMB (34,458) in the same period last year[151]. Corporate Governance and Shareholding - The company has complied with the Corporate Governance Code throughout the six months ended June 30, 2021, despite not having a separate chairman and chief executive[81]. - As of June 30, 2021, Mr. JIN Jianxin holds 225,800,000 shares, representing 55.75% of the company's share capital[93]. - Mr. RU Liming owns 54,102,857 shares, accounting for 13.36% of the company's share capital[93]. - The total shareholding of Mr. JIN Jianxin and Mr. RU Liming combined is 279,902,857 shares, which is 69.11% of the company's share capital[93]. Risk Management - The Group's overall risk management program focuses on minimizing potential adverse effects on financial performance due to credit risk, liquidity risk, and foreign exchange risk[173]. - The Group's capital management aims to safeguard its ability to continue as a going concern and to maintain an optimal capital structure to reduce the cost of capital[175]. - The Group's activities expose it to various financial risks, and it seeks to minimize these risks to protect its financial performance[173]. Employee and Compensation - The Group had 475 employees across China, Australia, and Hong Kong as of June 30, 2021[110]. - Total salaries and related costs for employees amounted to approximately RMB 16.5 million for the six months ended June 30, 2021[110]. - The company participates in mandatory provident fund retirement benefit schemes in Hong Kong and the central pension scheme in the PRC[110].

Financial Performance - The Group's net profit increased despite a slight decline in business results in 2020 due to the impact of COVID-19[22]. - The Group's revenue for the year ended December 31, 2020, was approximately RMB 472.2 million, a decrease of about 5.8% compared to 2019, while profit increased by approximately 46.6% to around RMB 40.8 million[29]. - The Group's gross profit decreased by approximately RMB 25.5 million or 19.1% to approximately RMB 108.1 million for the year ended 31 December 2020 from approximately RMB 133.7 million for the year ended 31 December 2019[48]. - The gross profit margin decreased to 22.9% for the year ended 31 December 2020 from approximately 26.7% for the year ended 31 December 2019, mainly due to the depreciation of the United States dollar against RMB[49]. - The Group recorded a net finance income increase of approximately RMB 0.8 million or 658.0% to approximately RMB 0.9 million for the year ended 31 December 2020, up from approximately RMB 0.1 million for the year ended 31 December 2019[67]. - Adjusted profit before tax for the year ended December 31, 2020, was RMB 48,574,000, compared to RMB 50,684,000 for the year ended December 31, 2019, reflecting a decrease of approximately 4.4%[86]. - Adjusted profit for the year ended December 31, 2020, was RMB 41,268,000, down from RMB 45,263,000 in 2019, indicating a decline of about 8.8%[86]. Sales and Revenue - Sales of candles reached approximately RMB 299.6 million, accounting for about 63.5% of total sales, while home fragrance products and home accessories generated RMB 83.2 million and RMB 89.4 million, representing 17.6% and 18.9% of total sales, respectively[29]. - In the second half of 2020, sales rebounded to approximately RMB 312.5 million, reflecting an increase of approximately 95.7% compared to the first half of the year[30]. - Self-branded product sales reached approximately RMB 19.1 million, a 56.7% increase from 2019, with offline sales at RMB 13.7 million and online sales at RMB 5.4 million[35]. - The number of self-branded retail stores increased to 27, up by 17 stores compared to the previous year, with store sales increasing by 3.3 times[35]. - The Group expects the rapid sales growth momentum of candle fragrance products, driven by increased domestic demand due to COVID-19, to continue into the coming year[119]. Dividends and Shareholder Returns - The Group distributed a special dividend at the end of 2020 to provide better returns to shareholders[22]. - A special dividend of HK$0.06 per share was paid on December 23, 2020[183]. - The Board does not recommend the payment of any dividend for the year ended December 31, 2020[183]. Operational Adjustments and Strategies - The Group launched an online showroom at the beginning of the year, which significantly aided business during restrictions on social activities[34]. - The Group is upgrading production equipment and planning a new production line to enhance manufacturing capabilities and flexibility[42]. - The Group is confident in its performance in the foreseeable future, leveraging the emerging opportunities in the fragrance and innovative home products market[120]. - The Group plans to expand its business-to-consumer sales channels, currently operating 24 retail stores in the PRC, to strengthen brand building and enhance sales growth of its products globally[121]. - Strengthening research and development capabilities is a priority to enrich product offerings and improve overall competitiveness[125]. - Upgrading information systems and logistics capacities is aimed at increasing operational efficiency[125]. - Enhanced sales and marketing efforts are intended to enlarge market share and cultivate brand loyalty, particularly in markets outside Europe[125]. Financial Position and Assets - The balance of cash and cash equivalents rose by approximately RMB 42.9 million or 63.2% to approximately RMB 110.7 million as of December 31, 2020, from approximately RMB 67.8 million as of December 31, 2019, mainly due to the unutilized portion of net proceeds raised from the Listing in the first quarter of 2020[110]. - Trade receivables increased by approximately RMB 17.0 million or 25.8%, from approximately RMB 65.9 million as of December 31, 2019, to approximately RMB 82.9 million as of December 31, 2020, due to delayed purchase orders[97]. - The Group's inventory balance increased by approximately RMB 12.4 million or 29.0%, reaching approximately RMB 55.0 million as of December 31, 2020, primarily due to finished goods pending delivery[96]. - The net carrying amounts of property, plant, and equipment decreased by approximately RMB 2.8 million during the year ended December 31, 2020, due to renovation costs and depreciation[89]. - The Group's investment properties, previously used for production, were leased to independent third parties as warehouses during the year ended December 31, 2020, following the completion of new production facilities[92]. Management and Governance - The company has a diverse board with independent non-executive directors providing strategic advice and independent opinions to enhance governance and operational oversight[161]. - The board includes members with extensive backgrounds in various industries, including finance, law, and management, ensuring a well-rounded approach to corporate governance[161]. - The independent directors are responsible for ensuring compliance and providing oversight, which is critical for maintaining investor confidence and regulatory adherence[162]. - The company emphasizes the importance of independent advice in its decision-making processes to enhance transparency and accountability[161]. Risks and Compliance - Further discussion on principal risks and uncertainties facing the Group is available in the Management Discussion and Analysis section[182]. - The Group's financial reporting affairs and compliance are overseen by the financial controller[176]. - The Company has a focus on maintaining compliance and overseeing treasury functions in its PRC operations[176]. Miscellaneous - The Group recorded a small provision for impairment of trade receivables of approximately RMB 1.8 million as of December 31, 2020, based on expected credit loss percentage[98]. - The Group made charitable contributions totaling RMB 1 million during the year[198]. - Sales to the company's five largest customers accounted for approximately 56% of total sales for the year, with the largest customer contributing about 13%[199].

Financial Performance - The Group's revenue and net profit decreased during the six months ended June 30, 2020, due to the impact of COVID-19 on customer demand[29]. - Revenue decreased by approximately RMB56.6 million or 26.2% to approximately RMB159.7 million for the six months ended 30 June 2020 from approximately RMB216.3 million for the same period in 2019[37]. - Gross profit decreased by approximately RMB9.5 million or 17.8% to approximately RMB44.1 million for the six months ended June 30, 2020 from approximately RMB53.6 million for the same period in 2019[39]. - Operating profit decreased to RMB 5,734,000, a decline of 41.8% from RMB 9,792,000 in the previous year[142]. - Profit for the period was RMB 4,319,000, representing a 43.1% decrease from RMB 7,606,000 in 2019[142]. - The total comprehensive income attributable to owners of the Company was RMB 4,414,000, down from RMB 7,630,000 in 2019[144]. - Basic and diluted earnings per share for profit attributable to owners of the Company was 1.1 cents, compared to 2.5 cents in 2019[144]. Impact of COVID-19 - The COVID-19 outbreak has led to some customers requesting shipment postponements and cancellations of purchase orders[29]. - The Group has maintained good communication with existing customers, anticipating a resumption of suspended purchase orders once the COVID-19 situation stabilizes, particularly in the European market[30]. - Precautionary measures due to COVID-19 have included travel restrictions, quarantine measures, and heightened hygiene requirements in factories and offices[28]. - The Group's financial performance for the six months ended June 30, 2020, reflects the impact of COVID-19[29]. - The Group is optimistic about future performance despite the current challenges, due to strong customer relationships[30]. - The Group's business model as an original design manufacturer and supplier positions it well for recovery post-COVID-19[27]. Sales and Marketing - The number of retail stores increased to 19, with store sales revenue increasing by 9.9 times compared to the same period last year[35]. - Online sales revenue increased by 3.6 times compared to the same period last year[35]. - Sales and marketing expenses increased by approximately RMB3.7 million or 125.8% to approximately RMB6.7 million for the six months ended June 30, 2020, primarily due to additional advertising costs for promoting online direct sales channels and costs related to setting up online showrooms in response to COVID-19[51]. - The Group aims to continue promoting brand expansion strategy and optimizing product layout to improve market coverage[36]. Assets and Liabilities - Total assets increased to RMB 371,864,000 as of June 30, 2020, compared to RMB 274,545,000 as of December 31, 2019, representing a growth of 35.5%[148]. - Current assets rose significantly to RMB 302,394,000, up from RMB 203,000,000, marking an increase of 48.9%[148]. - Total liabilities decreased to RMB 61,798,000 from RMB 75,825,000, a reduction of 18.5%[151]. - The Group's inventory balance increased by approximately RMB6.8 million or 16.0% to approximately RMB49.5 million as of June 30, 2020, due to increased stock levels of raw materials for upcoming production plans[67]. - Trade receivables decreased by approximately RMB3.5 million or 5.4% to approximately RMB62.3 million as of June 30, 2020, primarily due to the postponement or cancellation of some purchase orders by overseas customers as a result of COVID-19[68]. Cash Flow and Financing - Cash and cash equivalents surged to RMB 138,257,000, a substantial increase from RMB 67,843,000, reflecting a growth of 103.5%[148]. - Net cash used in operating activities for the six months ended June 30, 2020, was RMB (14,415) thousand, compared to RMB (11,532) thousand for the same period in 2019, indicating a decline in operational cash flow[160]. - Net cash generated from financing activities was RMB 115,443 thousand for the six months ended June 30, 2020, slightly down from RMB 119,479 thousand in the previous year[162]. - The company reported a net cash used in investing activities of RMB (34,458) thousand, a decrease from RMB (138,382) thousand in the prior year, indicating reduced investment outflows[162]. Corporate Governance and Compliance - The company has complied with the Corporate Governance Code throughout the period from the Listing Date to June 30, 2020[96]. - The company raised a net amount of approximately RMB 84.1 million from its IPO, after deducting listing expenses[109]. - The company has a share option scheme effective for ten years starting from January 16, 2020, to incentivize eligible participants[127]. Future Plans and Investments - The company plans to strengthen its R&D capabilities and expand its market presence in Europe by the end of 2022[109]. - The establishment of two regional sales offices in Europe has been allocated RMB 18.846 million, which is fully utilized by the end of 2022[109]. - RMB 10.348 million has been allocated to strengthen research and development capabilities, expected to be fully utilized by the end of the first half of 2022[109]. - The company upgraded its information system and logistics capacities with an allocation of RMB 7.067 million, with RMB 6.381 million utilized by the end of 2022[109]. Financial Risk Management - The Group's financial risk management focuses on minimizing potential adverse effects on financial performance due to credit risk, liquidity risk, and foreign exchange risk[171]. - The Group's capital management aims to provide returns for owners and benefits for stakeholders while reducing the cost of capital[173]. - The Group's objectives in capital management include safeguarding the ability to continue as a going concern and maintaining an optimal capital structure[173].

Financial Performance - The company achieved sustainable revenue and profit growth in 2019, despite challenges such as fluctuating RMB exchange rates and rising production costs[17]. - The company's revenue increased from approximately RMB 444.7 million in the year ended December 31, 2018, to approximately RMB 501.1 million in the year ended December 31, 2019, representing a growth of about RMB 56.4 million or 12.7%[22]. - Gross profit rose from approximately RMB 107.0 million to approximately RMB 133.7 million, an increase of about RMB 26.7 million or 24.9%[23]. - The gross profit margin improved from approximately 24.1% to 26.7%, primarily due to the appreciation of the US dollar against the RMB[23]. - Operating profit decreased to RMB 32,963 thousand from RMB 88,881 thousand in 2018, reflecting a decline of approximately 62.9%[146]. - Net profit for the year was RMB 27,810 thousand, down from RMB 77,051 thousand in 2018, representing a decrease of around 63.8%[146]. - The group's income tax expense decreased from approximately RMB 118 million for the year ended December 31, 2018, to approximately RMB 48 million for the year ended December 31, 2019, a reduction of 59.5%[29]. - Adjusted profit before tax for the year ended December 31, 2019, was RMB 50.684 million, compared to RMB 51.495 million for the year ended December 31, 2018[33]. - Adjusted profit for the year ended December 31, 2019, was RMB 45.263 million, slightly down from RMB 45.335 million for the year ended December 31, 2018[33]. Expenses and Costs - Administrative expenses increased from approximately RMB 47.8 million to approximately RMB 70.3 million, a rise of about RMB 22.5 million or 47.2%[25]. - Sales and marketing expenses grew from approximately RMB 6.9 million to approximately RMB 8.6 million, an increase of about RMB 1.7 million or 24.1%[26]. - Financial costs rose from approximately RMB 0.2 million to approximately RMB 0.5 million, an increase of about RMB 0.3 million or 219.3%[27]. - Other income decreased from approximately RMB 5.9 million to approximately RMB 1.9 million, a decline of about RMB 4.0 million or 67.3% due to the absence of rental income[24]. Market Strategy and Expansion - The company plans to expand its overseas market share and export volume while enhancing sales scale and brand influence in the Chinese market[17]. - The company aims to implement a comprehensive logistics strategy and establish overseas marketing companies to integrate cooperation with foreign distributors and retail chains[17]. - The company intends to create a network of brand stores in key cities and expand online sales channels[17]. - The company is focusing on developing high-end products and recruiting senior marketing talent to improve operational efficiency[18]. - The company recognizes the opportunities presented by the growing demand for high-end health and leisure products in the domestic market[17]. - The company plans to expand its retail presence in China, currently operating 12 stores, and seeks to establish more stores in other countries, including Australia[42]. - Future plans include establishing physical stores overseas to enhance market penetration and improve service quality, expanding production facilities, and strengthening R&D capabilities[43]. Governance and Management - The management team includes experienced professionals with over 15 years in finance and accounting, ensuring robust oversight of investment and compliance matters[62][63]. - The independent non-executive directors bring over 18 years of experience in accounting, auditing, and financial management, enhancing corporate governance[54][60]. - The company emphasizes the importance of independent opinions in board decisions, ensuring transparency and accountability[54][60]. - The company has established a strong governance framework, with independent directors providing critical oversight and strategic direction[54][60]. - The board includes members with extensive backgrounds in various sectors, including legal, banking, and investment, contributing to diverse strategic insights[61][62]. - The company is committed to maintaining high standards of corporate governance and compliance, reflecting its dedication to stakeholder interests[62][64]. Financial Position and Assets - Total assets as of December 31, 2019, were RMB 274,545 thousand, a decrease from RMB 410,718 thousand in 2018, indicating a decline of approximately 33.1%[150]. - Total liabilities decreased to RMB 75,825 thousand from RMB 239,817 thousand in 2018, reflecting a reduction of about 68.4%[150]. - Cash and cash equivalents as of December 31, 2019, were RMB 67,843 thousand, down from RMB 92,611 thousand in 2018, a decrease of approximately 26.8%[148]. - The company's equity attributable to owners increased to RMB 198,720 thousand from RMB 170,901 thousand in 2018, representing a growth of about 16.3%[150]. Audit and Compliance - The company reported a comprehensive financial statement for the year ending December 31, 2019[64]. - The company's consolidated financial statements for the year ended December 31, 2019, were audited by PwC, and a resolution will be proposed at the upcoming annual general meeting to reappoint them as auditors[92]. - The Audit Committee is responsible for overseeing the relationship with external auditors, including recommending their appointment and reviewing their remuneration[103]. - The Audit Committee monitors the integrity of financial statements and reviews significant judgments made in financial reporting[104]. - The auditor's goal is to obtain reasonable assurance that the financial statements are free from material misstatement due to fraud or error[138]. - The auditor identified and assessed risks of material misstatement and designed audit procedures to address these risks[139]. Shareholder Information - No dividends were recommended for the year ending December 31, 2019[67]. - As of December 31, 2019, the company's distributable reserves were approximately RMB 163,681,000[71]. - The board will consider factors such as operational performance, cash flow, financial condition, and future business prospects when deciding on dividend payments[120]. - The company has the discretion to declare dividends in cash or in shares, subject to applicable laws and regulations[122]. Employee and Compensation - The total salary and related costs for employees amounted to approximately RMB 54.2 million for the year ending December 31, 2019[84]. - The company had 505 employees as of December 31, 2019[84]. - The Remuneration Committee is tasked with establishing and reviewing the remuneration policy for directors and senior management, ensuring transparency in the process[114]. Inventory and Receivables - Inventory balance increased by approximately RMB 3.4 million or 8.7% from RMB 39.3 million as of December 31, 2018, to RMB 42.7 million as of December 31, 2019, due to increased raw material stock levels for upcoming production plans[35]. - Trade receivables increased by approximately RMB 1.1 million or 1.7% from RMB 648 million as of December 31, 2018, to RMB 659 million as of December 31, 2019, reflecting business growth[36]. - Prepayments, deposits, and other receivables decreased by approximately RMB 137.2 million or 83.3% from RMB 1,647 million as of December 31, 2018, to RMB 276 million as of December 31, 2019, mainly due to the settlement of related party transactions[36].