[ReportFinancialIndex] 主要财务指标 净利润预增 120%，下半年经营稳健 目标价：2.5 港元 当前价：1.4 港元 研究员：吴晓婵 证 券 研 究 报 告 朝云集团（06601.HK）2023 年度正面盈利预告点评 推荐（维持） 事项： 公司发布 2023 年度正面盈利预告，预计 2023 财年实现净利润不低于 1.44 亿 元，较 2022 年同期增长超 120%；预计 2023 财年收入不低于 15.91 亿元，较 2022 年同期增长超 10%。公司净利润翻倍增长，并于下半年实现盈利（过往 下半年均处于亏损状态）。预计公司 2023 财年派息率不低于 80%，中期、末期 各派一次（中期已经派息 40%）。 评论： 收购宠物线下实体门店，布局服务业态，全渠道战略进一步完善。公司通过收 购爪爪、米乐乖乖两个品牌将线下实体门店服务业态战略落地，并在选址优化、 供应链资源整合等方面提供帮助。截至 2024 年 3 月初，公司共开设 29 家门 店，其中爪爪 15 家，米乐乖乖 14 家，全面加速"千店计划"进程，比如 2023 年 12 月米乐乖乖深圳罗湖店开业，2024 年 1 月米 ...

证券研究报告 | 公司点评 朝云集团（06601.HK） 2023 年业绩良好，大力布局宠物线下门店服务业态 公司布局宠物线下实体门店服务业态，建立护城河。公司持续推动宠物业务 发展及变革，线下门店快速扩张，通过战略收购爪爪、米乐两个品牌将线下 实体门店服务业态战略快速落地，两个品牌旗下的线下门店数持续拓展，截 至 2024 年 2 月，爪爪喵星球/米乐乖乖分别有 15/14 家门店，主打购物中心 /生活社区消费业态。公司针对外部收购的团队多维度赋能，驱动业绩稳健 增长的同时对费率进行优化，从而提升盈利能力。针对自有品牌"倔强的尾 巴"、"倔强嘴巴"，公司重点布局淘宝、抖音、京东等线上渠道，重推核 心品类，基于数字化工具开展个性化、全渠道营销。通过自有品牌孵化加资 本投资运作的方式，公司已初步形成了涵盖宠物食品、宠物清洁用品、宠物 保健品的产业布局版图，宠物业务有望持续稳步发展提供业绩驱动力。 投资建议：公司作为家居护理细分龙头，持续推进多品牌多品类全渠道战略， 稳步推进宠物业务布局，渠道布局兼具线上高增平台及线下下沉拓展。公司 业绩稳健、现金流强劲，基于公司 2023 年业绩预告表现良好，我们维持"增 持" ...

Financial Reporting - Cheerwin Group Limited reported no changes to the content of the 2022 annual report as of December 31, 2022[2] Governance Structure - The board of directors includes executive directors and independent non-executive directors, ensuring a diverse governance structure[4] Share Award Scheme - The company provided additional information regarding the "Restricted Share Award Scheme" indicating no purchase price applies under this scheme[5]

Financial Performance - For the six months ended June 30, 2023, the company's revenue increased by 10.7% to RMB 1,132.8 million, compared to RMB 1,023.2 million for the same period in 2022[3]. - Gross profit for the same period was RMB 467.8 million, representing a 16.8% increase from RMB 400.5 million year-on-year[2]. - Net profit rose by 51.7% to RMB 135.7 million, up from RMB 89.4 million in the previous year[3]. - The overall gross margin improved by 2.2 percentage points to 41.3% due to ongoing optimization of product mix and supply chain cost management[5]. - The total comprehensive income for the six months ended June 30, 2023, was RMB 174,976,000, compared to RMB 143,642,000 in 2022, showing an increase of about 21.8%[49]. - The basic earnings per share for the six months ended June 30, 2023, was RMB 10.24, compared to RMB 6.72 in 2022, marking a significant increase of approximately 52.5%[49]. - The company reported a net profit of RMB 136,502,000 for the six months ended June 30, 2023, compared to RMB 89,658,000 for the same period in 2022, representing a growth of approximately 52.2%[73]. - Adjusted net profit for the six months ended June 30, 2023, was RMB 135.9 million, compared to RMB 91.8 million for the same period in 2022[130]. Revenue Breakdown - Revenue from home care products reached RMB 1,043.9 million, a 10.8% increase year-on-year[6]. - Online channel revenue grew by 25.0% to RMB 341.3 million, compared to the same period last year[7]. - Revenue from offline channels amounted to RMB 791.5 million, showing a growth of 5.5% compared to the six months ending June 30, 2022[22]. - Revenue from pet and pet products increased by 41.1%, rising from RMB 32.1 million for the six months ended June 30, 2022, to RMB 45.2 million for the same period in 2023[84]. - Home care products generated revenue of RMB 1,043.9 million, accounting for 92.1% of total revenue, while personal care products decreased by 3.9% to RMB 42.6 million[136][137]. Dividends and Shareholder Returns - The company declared an interim dividend of RMB 0.0410 per share, with a payout ratio increasing to 40.0% from 25.0% in the previous year[3]. - The company declared a final dividend of RMB 0.0220 per ordinary share, totaling approximately RMB 29,333,000, compared to RMB 73,733,000 for the previous year, which reflects a decrease of about 60.3%[72]. - The company maintains a high and stable annual dividend policy to maximize shareholder returns[48]. Cost and Expenses - Employee costs, including director remuneration, increased to RMB 95,340,000 for the six months ended June 30, 2023, up from RMB 77,243,000 in the previous year, reflecting a rise of about 23.4%[70]. - The total depreciation expense for the period was RMB 17,500,000, compared to RMB 15,726,000 for the same period in 2022, indicating an increase of approximately 11.3%[70]. - Total sales and distribution expenses for the six months ended June 30, 2023, were RMB 264,799,000, an increase from RMB 238,532,000 in the same period of 2022, reflecting a rise of approximately 11%[92]. - The cost of inventory recognized as an expense during the period was RMB 663,194,000, compared to RMB 622,665,000 in the previous year, representing an increase of approximately 6.5%[70]. Assets and Liabilities - As of June 30, 2023, total assets amounted to RMB 3,053,401 thousand, a decrease from RMB 3,160,304 thousand as of December 31, 2022, representing a decline of approximately 3.4%[50]. - Current liabilities decreased to RMB 493,785 thousand from RMB 734,909 thousand, a reduction of about 32.8%[50]. - The net current asset value increased to RMB 2,559,616 thousand, up from RMB 2,425,395 thousand, reflecting an increase of approximately 5.5%[50]. - Trade payables decreased from RMB 177.2 million as of December 31, 2022, to RMB 117.5 million as of June 30, 2023[107]. Strategic Initiatives - The company plans to enhance its home cleaning product offerings and accelerate marketing efforts across online and offline channels[12]. - The company aims to strengthen its upstream supply chain and optimize production costs to improve cost competitiveness[12]. - The company is actively pursuing acquisition opportunities in the domestic and international pet and fast-moving consumer goods sectors[12]. - The group plans to strengthen its multi-brand and multi-category channel development strategy in the second half of 2023, focusing on product innovation and enhancing channel profitability[24]. - The company plans to enhance its online distribution channels with an investment of RMB 241.9 million, representing 10.0% of the total funds raised[1]. - The company aims to strengthen its offline distribution network with an investment of RMB 120.9 million, accounting for 5.0% of the total funds raised[1]. - The establishment of a supply chain base in Shanghai, including a warehouse and logistics center, is projected to require an investment of RMB 169.3 million, which is 7.0% of the total funds raised[1]. Market Position and Growth - The group has maintained a strong market presence by enhancing the distribution of high-margin products and optimizing the quality of distribution points[23]. - The group's pest control products have ranked first in market share among similar products in China for eight consecutive years from 2015 to 2023, according to NielsenIQ retail market data[24]. - The company is focused on increasing market penetration in lower-tier cities with an investment of RMB 120.9 million, representing 5.0% of the total funds raised[1]. - The company is committed to developing new markets and optimizing its overseas online and offline sales networks with an investment of RMB 120.9 million, which is 5.0% of the total funds raised[1]. Research and Development - The company has integrated its R&D and product testing capabilities through the acquisition of Guangdong Zhongke Research Cosmetics Technology Co., Ltd., enhancing its technological development[48]. - The company’s research and development costs included in administrative expenses were RMB 14,081,000 for the period, up from RMB 9,925,000 in the previous year, indicating a growth of about 41.5%[70]. Taxation - The company’s tax rate for eligible group entities is structured at 8.25% for the first RMB 2,000,000 of profits and 16.5% for profits exceeding that threshold[68]. - The company’s income tax expense for the six months ended June 30, 2023, was RMB 50,328,000, compared to RMB 48,988,000 in the same period of 2022, reflecting an increase of approximately 2.7%[93]. - The actual tax rate decreased from 27.3% for the six months ended June 30, 2022, to 22.0% for the six months ended June 30, 2023, due to a subsidiary qualifying for a reduced tax rate of 15%[167].

Revenue Performance - Total revenue for the year ended December 31, 2022, was RMB 1,442,194,000, a decrease of 18.5% from RMB 1,769,157,000 in 2021[29]. - Home care products accounted for 89.9% of total revenue in 2022, generating RMB 1,296,901,000, down from RMB 1,608,309,000 in 2021[29]. - The revenue from offline channels decreased by 29.6% to RMB 945.7 million in 2022[32]. - The company's revenue from pet products increased by 46.1% from RMB 527 million in 2021 to RMB 769 million in 2022[40]. - Online channel revenue rose by 16.4% from RMB 426.6 million in 2021 to RMB 496.5 million in 2022, accounting for 34.4% of total revenue[42][41]. - Revenue for home care products, including pest control and cleaning products, was RMB 1,296.9 million for the year ended December 31, 2022, a decrease of 19.4% from RMB 1,607.5 million for the year ended December 31, 2021[144]. - Revenue for the pet products category reached RMB 769 million for the year ended December 31, 2022, an increase of 46.1% compared to RMB 526 million for the year ended December 31, 2021[144]. - Revenue from personal care products decreased by 36.2% from RMB 100.8 million for the year ended December 31, 2021, to RMB 64.3 million for the year ended December 31, 2022[196]. Profitability and Margins - Gross profit for the year was RMB 599,808,000, representing a gross margin of 41.6%, down from RMB 787,426,000 and 44.5% in 2021[33]. - The overall gross profit margin for personal care products dropped to 36.4% in 2022 from 48.1% in 2021[33]. - The gross profit for pet products was RMB 340 million in 2022, with a gross margin decline from 58.0% in 2021 to 44.2% in 2022[45]. - The gross profit for offline channels was RMB 366.3 million in 2022, with a gross margin decrease from 42.2% in 2021 to 38.7% in 2022[48]. - The company's profit decreased by 29.4% from RMB 90.8 million for the year ended December 31, 2021, to RMB 64.1 million for the year ended December 31, 2022[68]. - The net profit margin slightly decreased from 5.1% for the year ended December 31, 2021, to 4.4% for the year ended December 31, 2022[68]. Expenses and Costs - The company's administrative expenses decreased by 8.5% from RMB 179 million in 2021 to RMB 163.8 million in 2022[51]. - Sales and distribution expenses decreased by 17.3% to RMB 435.3 million, while administrative expenses decreased by 8.5% to RMB 163.8 million[126]. - Total employee costs for the year amounted to RMB 156,025,000, down from RMB 165,989,000 in the previous year, reflecting a reduction of about 6.0%[1]. - Research and development expenses, including administrative costs, significantly increased to RMB 32,318,000 from RMB 11,113,000, marking a rise of approximately 191.5%[1]. - Capital expenditures decreased from RMB 58.0 million for the year ended December 31, 2021, to RMB 24.7 million for the year ended December 31, 2022, primarily for the purchase of properties, plants, and equipment[86]. Cash Flow and Financial Position - The company's cash and cash equivalents totaled RMB 2,359.5 million as of December 31, 2022[58]. - The net operating cash inflow for the year ended December 31, 2022, was RMB 66.8 million, a significant improvement from a net cash outflow of RMB 191.9 million for the year ended December 31, 2021, driven by a pre-tax profit of RMB 85.0 million[86]. - The group maintained strong cash reserves totaling RMB 2,359.5 million as of December 31, 2022, to support business expansion[118]. - The group reported a net asset value of RMB 2,819,770,000 as of December 31, 2022, compared to RMB 2,735,259,000 in the previous year, indicating a growth of 3.1%[151]. - The total amount of unfulfilled contractual obligations as of December 31, 2022, was approximately RMB 243,719,000, an increase from RMB 169,066,000 in 2021[160]. Strategic Plans and Future Outlook - The company plans to expand its business scope into upstream technology research through acquisitions, aiming to shorten the research and development cycle for potential new products[75]. - The company plans to establish an overseas supply chain to enhance cost advantages, with an expected investment of RMB 36.3 million, projected to be fully utilized by the end of 2026[104]. - The company aims to enhance its digital infrastructure and develop technology for supply chain management, with an investment of RMB 241.9 million, anticipated to be fully utilized by the end of 2026[104]. - The group plans to strengthen multi-brand and multi-category channel development strategies and enhance product innovation to improve profitability in the long term[118]. - The group aims to capture growth opportunities in emerging channels, such as Douyin, to enhance overall profitability[148]. - The company aims to accelerate acquisition opportunities in the domestic and international pet and fast-moving consumer goods sectors, focusing on projects with stable cash flow and clear profit models[133]. Dividends and Shareholder Returns - The board has declared a final dividend of RMB 0.0220 per share, equivalent to HKD 0.0251 per share, compared to RMB 0.0553 per share for the year ended December 31, 2021, resulting in a total dividend of RMB 0.0388 per share with a payout ratio of approximately 80%[80]. - The group will implement a high ratio and stable annual dividend policy to maximize shareholder returns[150]. - The company declared an interim dividend of RMB 0.0168 per ordinary share, totaling approximately RMB 22,400,000 for the year, compared to no interim dividend in the previous year[185]. Corporate Governance and Compliance - The company has maintained compliance with corporate governance standards and best practices throughout the reporting period[108]. - The group has maintained a stable financing and treasury policy to ensure optimal financial condition and minimal financial risk[88]. - The company's public float meets the listing rules, with at least 25% of shares held by the public[111].

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 1,021,635 thousand, a decrease of 19.7% from RMB 1,271,905 thousand in 2021[7] - Gross profit for the same period was RMB 400,383 thousand, down 28.2% from RMB 557,988 thousand in 2021[7] - The adjusted profit for the period was RMB 91,706 thousand, a decline of 29.1% compared to RMB 129,477 thousand in 2021[7] - The net profit for the group was RMB 89.3 million, representing a year-on-year decrease of 25.1%[11] - Profit decreased by 25.1% from RMB 119.3 million for the six months ended June 30, 2021, to RMB 89.3 million for the same period in 2022, with a slight decline in net profit margin from 9.4% to 8.7%[36] - Basic earnings per share decreased to RMB 6.72 from RMB 9.95, a drop of 32.5% year-on-year[81] - The company reported a total comprehensive income of RMB 143,550 thousand for the period, up from RMB 119,139 thousand in the previous year, an increase of 20.5%[81] Assets and Liabilities - Total assets as of June 30, 2022, were RMB 3,242,208 thousand, a decrease from RMB 3,422,650 thousand as of December 31, 2021[8] - Current liabilities decreased to RMB 421,758 thousand from RMB 677,999 thousand at the end of 2021, a reduction of 37.8%[82] - Total liabilities decreased to RMB 299,016,000 as of June 30, 2022, from RMB 419,529,000, indicating a reduction of 28.7%[128] Revenue Breakdown - Revenue from pet products reached RMB 32.1 million, an increase of 22.6% compared to the same period in 2021[12] - Revenue from home care products was RMB 942.0 million, a decrease of 19.6% year-on-year[12] - Revenue from personal care products was RMB 44.3 million, down 38.1% year-on-year[12] - Online channel revenue was RMB 273.0 million, an increase of 6.2% year-on-year, while offline channel revenue was RMB 748.6 million, a decrease of 26.2%[12] Challenges and Market Conditions - The company faced challenges in online shipping due to pandemic-related restrictions, affecting delivery times and overall sales[10] - Offline business was hindered by reduced foot traffic and marketing activities, leading to slower expansion of distribution channels[10] - Production was limited due to raw material supply issues, particularly in the East China region, impacting the supply of key product categories[10] - The demand for pest control products decreased due to extreme weather conditions, significantly affecting sales in this leading category[10] - Rising costs of raw materials and packaging due to international turmoil and the pandemic have pressured the company's profit margins[10] Strategic Initiatives - The company plans to enhance its product layout in home cleaning and launch high-end cleaning products to improve gross margins[15] - The company aims to expand its pet food business and strengthen both online and offline channels to increase market share and profitability[15] - Strategic investment in Wuhan Zhongbo Luyia Biotechnology Co., Ltd. aims to enhance the supply chain and R&D capabilities in the pet medicine and health products sector[14] - The company will focus on cost reduction and efficiency improvement through upstream supply chain construction and strategic cooperation[18] Employee and Shareholder Information - The total employee count as of June 30, 2022, is 877, an increase from 855 as of June 30, 2021[50] - Total employee costs for the six months ended June 30, 2022, were RMB 75.8 million, down from RMB 92.3 million in the same period of 2021, primarily due to a reduction in performance bonuses[50] - Major shareholders, including Ms. Ma, Ms. Li, Mr. Chen Kai-xuan, and Mr. Chen Kai-chen, collectively hold 990,000,000 shares, representing 74.25% of the total issued shares[56] Cash Flow and Capital Expenditures - Operating cash outflow for the six months ended June 30, 2022, was RMB 172.4 million, a decrease from RMB 318.5 million for the same period in 2021, attributed to pre-tax profit adjustments and changes in working capital[39] - Capital expenditures decreased from RMB 31.9 million for the six months ended June 30, 2021, to RMB 13.0 million for the same period in 2022, primarily for the acquisition of property, plant, and equipment[40] Share-Based Payment and Dividends - The interim dividend declared is RMB 0.0168 per share, with a payout ratio of approximately 25% for the six months ended June 30, 2022[51] - The company has a stock option plan effective from July 23, 2021, with a total cost of RMB 8,000 recognized for the six months ended June 30, 2022, compared to RMB 0 for the same period in 2021[142] Compliance and Governance - The company has maintained compliance with all applicable provisions of the corporate governance code during the six-month period ending June 30, 2022[71] - The audit committee, consisting of three independent non-executive directors, has reviewed the accounting principles and practices adopted by the group for the six-month period ending June 30, 2022[76]

Financial Performance - Total revenue for 2021 reached RMB 1,769,157,000, representing a year-over-year increase of 3.9% from RMB 1,702,154,000 in 2020[7] - Gross profit for 2021 was RMB 787,426,000, with a gross margin of approximately 44.5%[7] - The company reported a net profit of RMB 90,765,000 for 2021, a significant decrease of 61% compared to RMB 232,909,000 in 2020[7] - The company's gross profit increased by 6.0% to RMB 787.4 million, despite rising raw material costs, by optimizing product mix and supply capabilities[14] - Adjusted net profit for 2021 was RMB 103.755 million, a decrease from RMB 261.623 million in 2020, reflecting a significant drop in operational performance[40] - Profit before tax decreased by 59.0% from RMB 293.3 million in 2020 to RMB 120.3 million in 2021[35] - Net profit fell by 61.0% from RMB 232.9 million in 2020 to RMB 90.8 million in 2021, with a net profit margin dropping to 5.1%[37] Asset and Equity Growth - Non-current assets increased to RMB 318,967,000 in 2021, up from RMB 210,157,000 in 2020, indicating a growth of 51.6%[8] - Current assets surged to RMB 3,103,683,000 in 2021, a substantial increase of 122.4% from RMB 1,398,268,000 in 2020[8] - Total assets reached RMB 3,422,650,000 in 2021, reflecting a growth of 112.5% compared to RMB 1,608,425,000 in 2020[8] - The company's equity attributable to owners increased dramatically to RMB 2,733,761,000 in 2021, compared to RMB 247,681,000 in 2020, marking an increase of 1,102.5%[8] Revenue by Product Category - Revenue from pet products increased by 138.9% from RMB 22.0 million in the year ended December 31, 2020, to RMB 52.7 million in the year ended December 31, 2021, with a gross margin rising from 54.5% to 58.0%[10] - Revenue from home care products grew by 3.1% to RMB 1,608.3 million, driven by an 11.8% increase in insecticide and mosquito repellent products to RMB 1,113.8 million[10] - Revenue from personal care products decreased by 7.0% to RMB 100.8 million, impacted by the previous year's surge in hand sanitizer demand due to COVID-19[11] - Revenue from air care products declined by 9.8% to RMB 57.2 million, reflecting market dynamics[11] - Revenue from traditional offline distribution channels grew by 1.8% to RMB 1,064.2 million, despite challenges from emerging sales channels[12] - Revenue from retail channels decreased by 24.5% from RMB 358.1 million in 2020 to RMB 270.4 million in 2021, primarily due to a decline in traditional retail[24] Online and Offline Sales Performance - Online channel revenue reached RMB 426.6 million, a significant increase of 45.0% year-on-year, primarily due to the expansion of self-operated online stores[12] - Online channel revenue grew by 45.0% from RMB 294.3 million in 2020 to RMB 426.6 million in 2021, attributed to the expansion of self-operated online stores and new sales channels[23] - The offline distribution revenue increased by 1.8% from RMB 1,045.9 million in 2020 to RMB 1,064.2 million in 2021, reflecting the continuous expansion of the distribution network[23] Strategic Initiatives and Market Focus - The company successfully launched ten new product categories, enhancing its market presence in home care, pet products, and personal care[4] - The company is focusing on digital, social, and personalized marketing strategies to enhance consumer engagement and market reach[5] - The company aims to leverage its multi-brand strategy and strong distribution network to capitalize on the anticipated growth in the consumer goods sector[5] - The company aims to solidify its leading position in the home care industry and accelerate the growth of its pet business through a multi-brand strategy and optimized product mix[18] - The company plans to enhance its pet food R&D capabilities by establishing a joint research laboratory to improve competitiveness in the pet business[19] Expenses and Financial Management - Selling and distribution expenses rose by 41.5% from RMB 372.0 million in 2020 to RMB 526.4 million in 2021[31] - Administrative expenses surged by 111.6% from RMB 84.6 million in 2020 to RMB 179.0 million in 2021, due to an increase in administrative staff[32] - Employee costs rose to RMB 166.0 million in 2021 from RMB 123.6 million in 2020, attributed to business growth and adjustments in employee bonus policies[50] Cash Flow and Liquidity - Cash and cash equivalents, along with time deposits, amounted to RMB 2,668.2 million as of December 31, 2021, indicating strong liquidity[14] - Operating cash flow for the year ended December 31, 2021, was a net outflow of RMB 191.9 million, compared to a net inflow of RMB 382.7 million in 2020, primarily due to changes in working capital[41] Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance and has adopted a corporate governance code[147] - The company has established an audit committee to review and oversee the financial reporting process and internal control systems[183] - The independent auditor Deloitte has issued an unqualified opinion regarding the group's continuing connected transactions for the year ended December 31, 2021[132] - The company has applied for and received exemptions from strict compliance with certain listing rules regarding ongoing related transactions[129] Shareholder Returns and Dividends - The company is committed to implementing a high and stable dividend policy to maximize shareholder returns[19] - The board has proposed a final dividend of RMB 0.0553 per ordinary share, equivalent to HKD 0.0680 per share, subject to shareholder approval at the annual general meeting on June 6, 2022[79] - The company plans to distribute approximately 80% of the consolidated profit attributable to shareholders for the fiscal year ended December 31, 2021, as dividends, subject to board discretion and shareholder approval[184] Risk Management - The company has established a comprehensive risk management and internal control process to monitor and manage risks in its business activities[182] - The company has identified key risks, including competition and changing consumer preferences, which may impact future performance if not effectively managed[73] Employee and Director Management - The company implemented employee incentive plans, including stock option and restricted stock reward programs, to align employee performance with corporate goals[15] - The stock option plan was approved by shareholders on July 23, 2021, aiming to attract and retain talented employees to achieve long-term performance goals[100] - The company has established retirement and employee benefit plans, details of which are included in the financial statements[99]

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 1,271,905 thousand, representing an increase of 4.97% compared to RMB 1,211,672 thousand for the same period in 2020[7] - Gross profit for the same period was RMB 557,988 thousand, up from RMB 509,306 thousand, indicating a growth of 9.5%[7] - Profit before tax decreased to RMB 152,221 thousand from RMB 240,499 thousand, reflecting a decline of 36.7% year-over-year[7] - Net profit for the period was RMB 119,330 thousand, down from RMB 192,365 thousand, a decrease of 38.0% compared to the previous year[7] - Basic and diluted earnings per share were both RMB 9.95, down from RMB 18.45 in the previous year[82] - Adjusted net profit for the six months ended June 30, 2021, was RMB 129.48 million, down from RMB 215.85 million in the same period of 2020[39] - Net profit fell by 38.0% to RMB 119.3 million, with net profit margin decreasing from 15.9% to 9.4%[36] Assets and Liabilities - The total assets as of June 30, 2021, amounted to RMB 3,324,910 thousand, significantly higher than RMB 1,608,425 thousand as of December 31, 2020, marking an increase of 106.5%[8] - Total liabilities decreased significantly to RMB 538,470 thousand from RMB 1,352,795 thousand, indicating a reduction in financial obligations[83] - The company’s equity attributable to owners increased to RMB 2,772,636 thousand from RMB 247,681 thousand, reflecting strong retained earnings growth[83] - The debt-to-capital ratio decreased significantly from 122.5% as of December 31, 2020, to 0.6% as of June 30, 2021, due to the repayment of bank loans totaling RMB 300.0 million[44] Revenue Breakdown - Revenue from pet care products surged by 350.5% for the six months ended June 30, 2021, compared to the same period in 2020[10] - Revenue from home care products increased by 4.4% for the six months ended June 30, 2021, with insecticide and mosquito repellent products growing by 11.4%[10] - Revenue from insect repellent products increased by 11.4% from RMB 825.2 million for the six months ended June 30, 2020, to RMB 918.9 million for the six months ended June 30, 2021[17] - Revenue from household cleaning products decreased by 16.8% from RMB 262.4 million to RMB 218.4 million during the same period, primarily due to increased competition and the company's decision not to engage in price wars[17] Operational Strategy - The company has successfully launched ten product categories, covering home care, pet care, and personal care, with rapid growth in the pet care segment[3] - The multi-brand and multi-category strategy is expected to strengthen the company's market position and capitalize on growth opportunities in the consumer goods industry[4] - The company aims to continue product upgrades and iterations to provide safer and more convenient products for consumers[4] - The company plans to continue optimizing its product mix and structure while expanding its pet care and personal care segments in the second half of 2021[12] Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2021, was RMB 318.5 million, compared to RMB 87.4 million for the same period in 2020, driven by a pre-tax profit of RMB 152.2 million and changes in working capital[41] - Capital expenditures increased from RMB 12.1 million for the six months ended June 30, 2020, to RMB 31.9 million for the same period in 2021, primarily for the purchase of property, plant, and equipment[42] - The company plans to allocate approximately 10.0% of the net proceeds from the global offering (RMB 241.9 million) to further develop online distribution channels, with an expected full utilization by 2026[53] Employee and Corporate Governance - The total employee count increased to 855 as of June 30, 2021, up from 784 a year earlier, with total employee costs amounting to RMB 92.3 million compared to RMB 66.4 million in the same period of 2020[56] - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2021[57] - The company has complied with all applicable provisions of the corporate governance code since its listing date, with three out of seven board members being independent non-executive directors[68] Market Presence and Sales Channels - Online channel revenue grew significantly by 47.6% for the six months ended June 30, 2021, driven by a 51.4% increase from the self-operated online store[11] - Revenue from corporate and group customer channels increased by 47.7% for the six months ended June 30, 2021[12] - The sales and distribution network includes over 1,150 offline distributors covering approximately 640,000 sales points across China[20] Financial Compliance and Reporting - The independent auditor has not found any matters that would lead them to believe that the financial statements are not prepared in accordance with International Accounting Standard 34[77] - The company’s financial statements are prepared in accordance with International Financial Reporting Standards, ensuring compliance and transparency[104]

Financial Performance - Cheerwin Group reported a revenue of RMB 1,702,154 thousand for the year ended December 31, 2020, representing a growth from RMB 1,383,402 thousand in 2019, which is an increase of approximately 23.0%[8] - The gross profit for 2020 was RMB 742,582 thousand, up from RMB 599,860 thousand in 2019, indicating a growth of about 23.7%[8] - Adjusted net profit for the year was RMB 261,623 thousand, compared to RMB 197,660 thousand in 2019, reflecting an increase of approximately 32.4%[8] - Total revenue for the year ended December 31, 2020, reached RMB 1,702.2 million, a significant increase from RMB 1,383.4 million in 2019[24] - Net profit for the year rose to RMB 232.9 million in 2020, up from RMB 184.4 million in 2019, with a slight increase in net profit margin from 13.3% to 13.7%[41] - Profit before tax increased by 26.3% to RMB 293.3 million in 2020, compared to RMB 232.2 million in 2019[39] - The company reported a net profit of RMB 223,781 thousand for the year ended December 31, 2020, compared to a loss of RMB 10,014 thousand in the previous year, indicating a significant turnaround[176] Assets and Liabilities - Cheerwin Group's total assets increased to RMB 1,608,425 thousand in 2020 from RMB 1,225,878 thousand in 2019, marking a growth of approximately 31.2%[9] - The company’s total liabilities rose to RMB 1,357,891 thousand in 2020, up from RMB 1,211,948 thousand in 2019, which is an increase of about 12.0%[9] - The company’s equity attributable to owners increased to RMB 247,681 thousand in 2020 from RMB 13,234 thousand in 2019, showing a significant growth[9] - The debt-to-capital ratio increased from 72.5% as of December 31, 2019, to 122.5% as of December 31, 2020, mainly due to bank borrowings of RMB 300.0 million[48] - The company has maintained a strong liquidity position with current assets exceeding current liabilities, resulting in a net current asset value of RMB 45,473 thousand[175] Revenue Sources - The pest control segment generated RMB 996.0 million, accounting for 58.5% of total revenue, while home cleaning products contributed RMB 501.1 million, representing 29.4%[20] - Revenue from insect repellent products increased by 13.7% from RMB 875.9 million in 2019 to RMB 996.0 million in 2020, driven by new product launches and improved category structure[21] - Revenue from home cleaning products surged by 38.3% from RMB 362.2 million in 2019 to RMB 501.1 million in 2020, primarily due to heightened consumer hygiene awareness and increased demand for disinfectants during the COVID-19 pandemic[21] - Personal care products revenue grew by 51.7% from RMB 71.5 million in 2019 to RMB 108.4 million in 2020, attributed to the rising demand for hand sanitizers and soaps during the pandemic[22] - Pet care products revenue skyrocketed from RMB 1.7 million in 2019 to RMB 22.0 million in 2020, following the official launch of the pet care business in the second half of 2019[23] Market Strategy - The company maintained a strong market position with a diversified product offering across seven core brands, addressing various consumer needs in home care, personal care, and pet care[3] - Cheerwin Group is focused on expanding its market presence and enhancing its product offerings through innovation and a robust R&D system[4] - The company aims to leverage its comprehensive distribution network and multi-brand strategy to capture growth opportunities in the home care industry in China[4] - The company aims to enhance its multi-brand strategy and expand its product categories, particularly in personal and pet care, to achieve sustainable growth[18] - The company plans to strengthen its omnichannel strategy, focusing on both offline and online channels, including community marketing and self-owned platforms[18] Online and Offline Sales - Online channel revenue grew by 92.8% compared to the previous year, contributing RMB 141.6 million to overall revenue growth[11] - The offline distribution network includes approximately 620,000 distributor points and about 11,000 retail points, with offline distributor revenue increasing by 11.5% year-over-year[11] - Online sales revenue surged by 58.5% from RMB 69.5 million in 2019 to RMB 110.2 million in 2020, reflecting the company's focus on developing online business strategies[26] Cost and Expenses - Administrative expenses increased by 35.5% to RMB 84.6 million in 2020, primarily due to an increase in the number of administrative staff[35] - Sales and distribution expenses increased by 11.3% to RMB 372.0 million in 2020, compared to RMB 334.2 million in 2019[34] - Financial costs rose significantly due to a short-term bank loan of RMB 300 million taken in 2020, with an interest rate of 2.05%[37] Corporate Governance - The company has adopted a corporate governance code to enhance shareholder value and accountability following its listing[119] - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a diverse skill set[122] - The company is committed to maintaining high standards of corporate governance and has established a diversity policy for its board[124] - The company has established an ESG committee to oversee its environmental, social, and governance management, and is forming an EHS team to assess and manage ESG-related matters[76] Risk Management - The company identified key risks including reliance on brand reputation, competition in the industry, and potential challenges in developing and launching new products[75] - The company has established a comprehensive risk management and internal control process to monitor and manage risks associated with its business activities[149] Future Outlook - The company provided a positive outlook for the next quarter, projecting revenue growth of A% and an increase in user engagement metrics[3] - Future guidance indicates a focus on sustainability initiatives, with plans to invest $H million in eco-friendly practices and technologies[10] Shareholder Information - The board has proposed a final dividend of RMB 0.044 per share, equivalent to HKD 0.0524 per share, subject to shareholder approval at the annual general meeting on June 3, 2021[80] - Major shareholders hold 74.25% of the company's shares, totaling 990,000,000 shares[96] - The company has no reserves available for distribution to shareholders as of December 31, 2020[87] Audit and Compliance - Deloitte Touche Tohmatsu has been appointed as the auditor for the fiscal year ending December 31, 2020[116] - The independent auditor's report confirms that the financial statements present a true and fair view of the group's financial position and performance in accordance with International Financial Reporting Standards[161] - The company has complied with relevant laws and regulations in all significant aspects as of December 31, 2020[73]