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]