Financial Performance - Total revenue for the year reached RMB 1.27 billion, representing a year-on-year growth of 55.7%[7] - Adjusted net profit amounted to RMB 350 million, with a year-on-year increase of 52.9%[7] - The gross profit for the year ended December 31, 2021, was approximately RMB 826.6 million, up 43.8% from approximately RMB 575.0 million for the year ended December 31, 2020[20] - The net profit for the year ended December 31, 2021, was approximately RMB 285.6 million, representing an increase of 89.2% compared to approximately RMB 150.9 million for the year ended December 31, 2020[20] - The adjusted EBITDA for the year ended December 31, 2021, was approximately RMB 417.5 million, an increase of 40.7% from approximately RMB 296.6 million for the year ended December 31, 2020[20] - Revenue increased by 55.7% from RMB 816.5 million in 2020 to RMB 1,271.7 million in 2021[35] - Net profit increased by 89.2% year-on-year to RMB 285.6 million, while adjusted EBITDA grew by 40.7% to RMB 417.5 million[24] Operational Highlights - The number of cases treated was 183,200, reflecting a year-on-year growth of 33.1%[7] - The number of cases completed increased from approximately 137,600 for the year ended December 31, 2020, to approximately 183,200 for the year ended December 31, 2021[20] - The number of dental professionals served increased from approximately 19,900 for the year ended December 31, 2020, to approximately 25,000 for the year ended December 31, 2021[20] - The company launched a new generation of adaptive polymer composite materials, masterControl S and angelAttach, enhancing its product offerings[17] - The company introduced a children's facial management solution tailored to individual characteristics for early orthodontic treatment[17] - The company expanded its digital technology services by adding intraoral scanner sales, significantly improving dental professionals' treatment efficiency[17] Research and Development - The company invests nearly 10% of its revenue in R&D annually, maintaining a leading position in the industry[10] - Research and development expenses amounted to RMB 123.1 million, representing 9.7% of total revenue[27] - The company plans to continue investing in research and development to innovate digital orthodontic solutions and enhance user experience[18] - The company aims to leverage digital technology to drive innovation and improve the quality of orthodontic services[16] - The company established a digital oral intelligence research institute to enhance R&D capabilities and encourage innovation through cash rewards for patent inventors[180] Market Expansion and Strategy - The company aims to expand its services into emerging markets, focusing on cost-effective products and flexible channels[11] - The company is focused on international expansion, leveraging its advanced manufacturing and delivery capabilities to serve global markets[9] - The company is committed to expanding its digital orthodontics into international markets gradually[18] - The company has established partnerships with leading dental schools and researchers to support orthodontic research initiatives[10] - The company has launched a joint venture, CareCapital Aligner Tech L.P., to invest in global orthodontic digital technologies, supporting its international expansion[32] Corporate Governance and Compliance - The company has established a robust governance structure with independent directors and committees to oversee its operations and ensure compliance[71] - The board has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee to oversee specific areas of governance[135] - The independent non-executive directors confirmed their independence in accordance with the listing rules[137] - The company has maintained high corporate governance standards since the listing date, adhering to all applicable code provisions[135] - The audit committee oversees the financial reporting system, risk management, and internal control procedures[149] Employee Relations and Incentives - The company has implemented a continuous employee equity incentive plan to foster team cohesion and drive growth[7] - The total employee cost, including director remuneration and share-based payment expenses, was approximately RMB 400.4 million as of December 31, 2021[89] - The company employed 2,034 employees as of December 31, 2021[89] - The company provides pre-employment and ongoing management and technical training to employees to ensure they possess the necessary skills and work ethics[90] - The company has implemented employee incentive plans, including pre-IPO share reward plans and post-IPO restricted share unit plans, to promote long-term development[90] Environmental, Social, and Governance (ESG) - The company has established a three-tier ESG governance structure involving the board, management, and an ESG working group to oversee ESG initiatives[170] - The company actively engages with stakeholders, including government, shareholders, employees, and customers, to understand their expectations and feedback on sustainability strategies[175] - The company has committed to integrating ESG factors into its business strategy and daily operations to promote sustainable development[170] - The company has received several awards, including recognition as a "Jiangsu Province Small Giant" and "2021 Key Industrial Internet Platform" by Jiangsu Provincial Department of Industry and Information Technology[181] - The company has developed a comprehensive product traceability system, allowing for tracking of production records back to raw materials and equipment[189] Risk Management - The company has established an internal audit and internal control department to enhance its internal control and risk management processes[158] - The board is responsible for ensuring effective risk management and internal control systems, with management tasked with designing and maintaining these systems[157] - The company has implemented a whistleblowing mechanism to address financial, operational, and internal control issues, ensuring significant internal control deficiencies are reported to the audit committee[158] - The company has no knowledge of any significant uncertainties that may severely impact its ability to continue as a going concern[156] - The company faces market risks due to economic uncertainties, changing regulations, and the ongoing impact of the COVID-19 pandemic[74] Marketing and Customer Relations - The company emphasizes responsible marketing, strictly following advertising laws to avoid misleading customers and protect brand reputation[197] - The company has established a data security management regulation to oversee data handling processes, ensuring compliance with relevant laws[200] - The company has developed internal policies for complaint handling and product recall management to ensure timely resolution of customer issues[187] - The company received a total of 2,062 customer complaints during the reporting period, achieving a resolution rate of 100%[189] - The company has implemented strict regulations for supplier admission, process audits, and regular evaluations to ensure procurement quality[190]

Financial Performance - For the six months ended June 30, 2021, the company's revenue was approximately RMB 571.0 million, an increase of 85.0% compared to approximately RMB 308.7 million for the same period in 2020[5]. - The gross profit for the same period was approximately RMB 377.6 million, up 78.3% from approximately RMB 211.7 million in the prior year[5]. - The net profit for the six months ended June 30, 2021, was approximately RMB 95.7 million, representing a 55.8% increase from approximately RMB 61.4 million in the previous year[5]. - Adjusted EBITDA for the period was approximately RMB 195.4 million, a 60.8% increase from approximately RMB 121.5 million for the same period in 2020[5]. - The company's revenue increased by 85.0% from RMB 308.7 million for the six months ended June 30, 2020, to RMB 571.0 million for the six months ended June 30, 2021[11]. - Net profit rose from RMB 61.4 million for the six months ended June 30, 2020, to RMB 95.7 million for the six months ended June 30, 2021[11]. - Adjusted EBITDA increased from RMB 121.5 million for the six months ended June 30, 2020, to RMB 195.4 million for the six months ended June 30, 2021[11]. - The company reported a total comprehensive income of RMB 113,288 thousand for the first half of 2021, compared to RMB 61,728 thousand in the same period of 2020[72]. - The company reported a net profit before tax of RMB 120,973 thousand for the six months ended June 30, 2021, compared to RMB 75,146 thousand in the same period of 2020, indicating a growth of around 61%[107]. Operational Metrics - The number of completed cases increased from approximately 47,200 for the six months ended June 30, 2020, to approximately 79,500 for the same period in 2021[8]. - The number of dental practitioners served rose from approximately 11,700 to approximately 17,300 during the same period[8]. - The production capacity of clear aligners increased to 13,500 units in 2021 from 9,900 units in 2020, representing a growth of 36.4%[11]. - The production volume of clear aligners rose to 12,020 units in 2021 from 6,300 units in 2020, marking an increase of 90.5%[11]. - Utilization rate improved to 89.0% in 2021 from 63.6% in 2020, indicating enhanced operational efficiency[11]. Costs and Expenses - The company's costs increased by 99.6% from RMB 96.9 million for the six months ended June 30, 2020, to RMB 193.4 million for the six months ended June 30, 2021, primarily due to the increased use of invisible orthodontic solutions and the development of new intraoral scanner sales[18]. - Sales and marketing expenses increased by 118.5% from RMB 44.2 million for the six months ended June 30, 2020, to RMB 96.6 million for the six months ended June 30, 2021, due to the costs associated with the 2021 A-Tech conference and the resumption of marketing activities[21]. - Administrative expenses rose by 80.9% from RMB 61.4 million for the six months ended June 30, 2020, to RMB 111.1 million for the six months ended June 30, 2021, mainly due to global offering preparation costs and increased employee benefits[22]. - Research and development expenses increased by 55.8% from RMB 38.3 million for the six months ended June 30, 2020, to RMB 59.6 million for the six months ended June 30, 2021, reflecting adjustments in personnel and salary levels post-COVID-19[23]. Capital and Liquidity - Cash and cash equivalents increased significantly from RMB 877.6 million as of December 31, 2020, to RMB 3,165.0 million as of June 30, 2021, primarily due to cash received from the global offering[40]. - The company's property, plant, and equipment increased from RMB 105.3 million as of December 31, 2020, to RMB 167.0 million as of June 30, 2021, due to the acquisition of new machinery and ongoing construction projects[36]. - The total liabilities increased from RMB 238.6 million as of December 31, 2020, to RMB 278.9 million as of June 30, 2021, mainly due to increased procurement of raw materials[41]. - The company maintained a healthy financial position with current assets rising from approximately RMB 1,003.7 million as of December 31, 2020, to approximately RMB 3,271.2 million as of June 30, 2021[43]. - The current ratio as of June 30, 2021, was 4.9, indicating strong liquidity[52]. Shareholder Information - Major shareholders include Mr. Feng Dai with a 59.41% stake and Ms. Li Huamin with a 14.05% stake in the company[54]. - The company has issued a total of 168,331,500 shares as of the report date, excluding any shares that may be issued under the share incentive plan[58]. - The board has resolved not to recommend any interim dividend for the six months ended June 30, 2021[59]. - The company has adopted the Corporate Governance Code as the basis for its corporate governance practices since its listing date[59]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim financial statements for the six months ended June 30, 2021[61]. - The independent auditor has reviewed the unaudited interim financial data in accordance with international review standards[62]. - The company has complied with the minimum public float requirements as per the stock exchange regulations[67]. - The financial review report confirms that the interim financial information is prepared in accordance with International Accounting Standard 34[71]. Future Plans and Strategy - The company aims to enhance R&D capabilities and continue innovating orthodontic solutions as part of its growth strategy[12]. - The company plans to continue expanding its market presence and investing in new product development to sustain growth momentum[76]. - The company plans to manage liquidity risk by monitoring cash reserves and expected cash flows to meet future cash needs[96]. - The company plans to utilize the raised funds for market expansion and new product development initiatives[140].