Financial Performance - Revenue for the year ended December 31, 2022, decreased by 10.9% to RMB 1,715.4 million from RMB 1,924.7 million in 2021[7] - Gross profit for the year ended December 31, 2022, decreased by 19.6% to RMB 920.1 million, with a gross margin of 53.6%, down from 59.4% in 2021[7] - Profit attributable to shareholders for the year ended December 31, 2022, decreased by 42.6% to RMB 206.5 million, resulting in a net profit margin of 12.0%, down from 18.7% in 2021[7] - Basic earnings per share for the year ended December 31, 2022, was RMB 0.19[7] - In 2022, the company achieved revenue of RMB 1,715.4 million, a decrease of 10.9% compared to 2021, and recorded an annual profit of RMB 206.5 million, down 42.6% from 2021[17] - Revenue from tea sales dropped by 11.0% from RMB 1,398.2 million in 2021 to RMB 1,243.8 million in 2022[27] - The gross profit fell by 19.6% from RMB 1,144.0 million in 2021 to RMB 920.1 million in 2022, with a gross margin decline from 59.4% to 53.6%[30] - Operating profit decreased to RMB 293,320,000 from RMB 527,457,000, indicating a significant drop in operational efficiency[147] - Net profit attributable to shareholders was RMB 206,452,000, a decline of 42.5% from RMB 359,481,000 in the previous year[147] Assets and Liabilities - Total assets as of December 31, 2022, were RMB 3,139.5 million, a slight decrease from RMB 3,212.1 million in 2021[9] - Total equity as of December 31, 2022, was RMB 1,770.1 million, down from RMB 1,832.8 million in 2021[9] - Total liabilities as of December 31, 2022, were RMB 1,369.4 million, compared to RMB 1,379.2 million in 2021[9] - The capital-to-debt ratio increased to 27.7% in 2022 from 25.3% in 2021[9] - Cash and cash equivalents increased by RMB 110.0 million or 46.1% from RMB 238.4 million as of December 31, 2021, to RMB 348.4 million as of December 31, 2022[39] - Total bank borrowings rose from RMB 619.4 million as of December 31, 2021, to RMB 678.1 million as of December 31, 2022[40] - The debt-to-capital ratio increased from 25.3% as of December 31, 2021, to 27.7% as of December 31, 2022, primarily due to the increase in bank borrowings[43] Operational Strategy - The company plans to continue expanding its store network and optimizing sales points in 2023, focusing on both first and second-tier cities as well as third and fourth-tier cities[11] - New product development includes a dedicated culinary R&D department to create diverse traditional foods, aiming to expand the milk tea market share[11] - The company emphasizes enhancing customer service quality and increasing foot traffic to improve transaction numbers[12] - The digital economy's growth is driving online consumption, prompting the company to enhance its marketing activities, especially on e-commerce platforms[12] - The company is committed to strengthening its brand image and competitive advantages through significant operational measures[13] - Plans to develop a dual-brand strategy with Kinmen Kaoliang Liquor Inc. to sell sorghum liquor in China[14] - The company aims to improve employee training and welfare to enhance service quality and operational efficiency[15] - Focus on product quality and safety while continuously developing new products to meet the needs of mid-to-low-end consumers[15] - The company will actively promote tea-related events and exhibitions to engage with customers and enhance brand loyalty[15] Market and Product Development - The company has adjusted its product mix, increasing the proportion of mid-to-high-end products to meet customer needs in China[18] - The company has established a food research and development department to diversify its product line, including traditional delicacies such as Buddha Jumps Over the Wall and instant bird's nest[18] - The company aims to develop new tea-related products to maintain its leading brand position and adapt to changing consumer preferences[22] - The company is focusing on product innovation to differentiate itself in a highly competitive market, emphasizing health and variety in its offerings[97] - The company is exploring new product development opportunities aligned with seasonal consumer trends, such as spring tea and festival-related products[97] Governance and Compliance - The company has complied with the corporate governance code as of December 31, 2022, with no deviations reported[61] - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors, ensuring at least one-third independence[63] - The company emphasizes high-quality governance to enhance shareholder value and manage risks, including environmental and social risks[60] - The chairman and CEO positions are held by different individuals to maintain independence and balanced judgment[64] - Each director has a service contract of three years, with provisions for re-election and succession planning[65] - The board is responsible for strategic decisions and overseeing the company's operations and performance[62] - The company regularly reviews its corporate governance practices to ensure compliance with regulations[61] Risk Management - The company has implemented effective internal controls and risk management frameworks[60] - The management team has extensive experience, with the CFO having over 15 years in finance[59] - The company employs a three-line defense model for risk management, focusing on operational management as the first line, which is responsible for identifying and managing daily operational risks[81] - The internal audit department provides reasonable assurance regarding governance, risk management, and internal controls, conducting risk-oriented audits of subsidiaries and recommending necessary actions[82] - The board reviews risk management activities and overall risk exposure at least annually, confirming the effectiveness of the risk management and internal control systems[83] Shareholder Relations - The company emphasizes effective communication with shareholders to enhance investor relations and ensure transparency in disclosures[86] - The company has established a whistleblowing policy for employees and stakeholders to report suspected misconduct confidentially[84] - The company reported a comprehensive income for the year ended December 31, 2022, with detailed financial performance metrics available in the annual report[92] - The company emphasizes the importance of shareholder communication and encourages participation in shareholder activities and meetings[88] - The board of directors has reviewed the implementation and effectiveness of the shareholder communication policy for the year ended December 31, 2022[88] Employee and Management - The company has 3,643 employees as of December 31, 2022, with the majority based in China[52] - Employee costs rose to RMB 334.9 million in 2022 from RMB 315.4 million in 2021, marking an increase of approximately 6.5%[52] - The company has established a mandatory provident fund plan, requiring both employer and employee contributions of 5% of relevant income, with a monthly income cap of HKD 30,000[131] Related Party Transactions - The company has ongoing related party transactions, including lease agreements with various related parties since 2009[115] - The total rent paid or payable under the lease agreements with Mr. Li Jialin for the year ended December 31, 2022, amounted to RMB 1,290,000[117] - The company has maintained compliance with the listing rules regarding related party transactions[115] Future Outlook - The company plans to declare dividends of no less than 20% of the consolidated net profit after tax for each financial year[101] - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the H sector[55] - The company plans to optimize its retail network and expand into third and fourth-tier cities, aiming to enhance profitability and market penetration[21]

Financial Performance - For the year ended December 31, 2022, revenue decreased by 10.9% to RMB 1,715.4 million from RMB 1,924.7 million in 2021[2] - Gross profit for the year ended December 31, 2022, decreased by 19.6% to RMB 920.1 million, with a gross margin of 53.6%, down from 59.4% in 2021[2] - Profit attributable to shareholders for the year ended December 31, 2022, decreased by 42.6% to RMB 206.5 million, resulting in a net profit margin of 12.0%, down from 18.7% in 2021[2] - Basic earnings per share for the year ended December 31, 2022, were RMB 0.19, compared to RMB 0.33 in 2021[4] - The company reported a net profit of RMB 206,452 thousand for the year ended December 31, 2022[17] - The net profit attributable to shareholders for 2022 was RMB 206,452,000, down from RMB 359,481,000 in 2021, representing a decline of approximately 42.5%[29] - The company reported a basic earnings per share of RMB 0.19 for 2022, compared to RMB 0.33 for 2021, reflecting a decrease of 42.4%[29] - The company's net profit for the year ended December 31, 2022, decreased by 42.6% to RMB 206.5 million, with a net profit margin of 12.0%[65] Revenue Breakdown - Total revenue for the year ended December 31, 2022, was RMB 1,715,400 thousand, a decrease of 10.9% from RMB 1,924,651 thousand in 2021[16] - Revenue from tea sales was RMB 1,243,753 thousand, down 11.1% from RMB 1,398,189 thousand in the previous year[16] - Revenue from tea sales decreased by 11.0% to RMB 1,243.8 million, while tea food sales decreased by 1.7% to RMB 243.7 million, and tea utensils sales decreased by 14.5% to RMB 169.2 million[56] Assets and Liabilities - Total assets as of December 31, 2022, were RMB 3,139.5 million, a decrease from RMB 3,212.1 million as of December 31, 2021[5] - Total liabilities as of December 31, 2022, were RMB 1,369.4 million, compared to RMB 1,379.2 million as of December 31, 2021[8] - Non-current assets increased slightly to RMB 1,361.8 million from RMB 1,330.9 million in 2021[5] - Trade and other receivables decreased to RMB 282.3 million from RMB 380.9 million in 2021[5] - The total amount of trade and other receivables was RMB 282,301,000 as of December 31, 2022, compared to RMB 380,895,000 in 2021, indicating a decline of about 25.9%[35] Dividends and Share Repurchase - The board proposed a final dividend of HKD 0.13 per share, equivalent to RMB 0.11 per share[2] - The company declared a final dividend of RMB 124,509,000 for 2022, down from RMB 204,789,000 in 2021, which is a reduction of approximately 39.2%[30] - The company repurchased 3,121,000 shares in 2022 at a total value of approximately HKD 15,956,000, equivalent to RMB 13,826,000[40] - The company repurchased a total of 3,121,000 shares during the year ended December 31, 2022, at a total cost of HKD 15,891,140[84] Operational Efficiency and Strategy - The company continues to enhance its market position and operational efficiency through various strategies, including expanding its network and improving employee training[50] - The company aims to leverage its strong brand recognition and market presence to capture a larger market share as the market recovers[50] - The company plans to optimize its retail network by establishing new retail stores in densely populated commercial areas and expanding into third- and fourth-tier cities[53] - The company aims to enhance brand reputation and customer awareness through targeted marketing activities, especially during traditional Chinese festivals[53] Compliance and Governance - The company has adhered to the corporate governance code and has not deviated from its provisions during the year ended December 31, 2022[83] - The audit committee for the company consists of independent non-executive directors, including Mr. Lu Wah Wei, Dr. Huang Wei, and Mr. Li Junxiong, with Mr. Lu serving as the chairman[88] - The annual performance for the year ending December 31, 2022, has been reviewed by the audit committee and approved by the company's auditor, PwC[88] Employee and Administrative Costs - Employee costs for the year ended December 31, 2022, amounted to RMB 334.9 million, an increase from RMB 315.4 million for the year ended December 31, 2021, representing a growth of approximately 6.5%[80] - The company's administrative expenses increased by 15.0% to RMB 272.6 million, primarily due to rising labor costs and depreciation of property, plant, and equipment[60] Government Grants and Other Income - The company reported government grants of RMB 19,101,000 in 2022, an increase from RMB 13,693,000 in 2021, reflecting a growth of approximately 39.5%[24] - Other income increased by 43.7% to RMB 28.3 million, mainly due to local government subsidies rising from RMB 13.7 million to RMB 19.1 million[61]

Financial Performance - The company reported a revenue of RMB 802.4 million for the first half of 2022, a decrease of 14.8% compared to the same period in 2021[9]. - Net profit for the same period was RMB 75.1 million, down 52.6% year-on-year[9]. - Revenue for the six months ended June 30, 2022, was RMB 802,411 thousand, a decrease of 14.8% compared to RMB 942,069 thousand for the same period in 2021[82]. - Gross profit for the same period was RMB 441,919 thousand, down from RMB 538,383 thousand, reflecting a gross margin decline[82]. - Operating profit decreased to RMB 101,691 thousand from RMB 234,205 thousand, indicating a significant reduction in operational efficiency[82]. - Profit attributable to shareholders decreased by RMB 83.5 million or 52.6% from RMB 158.6 million for the six months ended June 30, 2021, to RMB 75.1 million for the six months ended June 30, 2022, with a net profit margin declining from 16.8% to 9.4%[33]. - Basic and diluted earnings per share for the period were RMB 0.07, down from RMB 0.14 in the previous year[82]. - The company reported a net profit of RMB 75,065 thousand for the six months ended June 30, 2022, compared to the previous year's profit[111]. Revenue Breakdown - Revenue from tea sales dropped by 12.8% from RMB 670.6 million to RMB 584.7 million, while tea food sales fell by 14.8% from RMB 119.6 million to RMB 101.9 million[22]. - Tea sales generated RMB 584,720 thousand, down 12.8% from RMB 670,646 thousand in the previous year[109]. - The adjusted operating profit for the tea segment was RMB 91,720 thousand, while the tea food segment reported RMB 11,612 thousand[111]. Cost and Expenses - The gross profit decreased by 17.9% from RMB 538.4 million to RMB 441.9 million, with the gross margin declining from 57.1% to 55.1%[23]. - Distribution costs increased by 1.8% from RMB 199.9 million to RMB 203.4 million, primarily due to rising labor and advertising expenses[25]. - Administrative expenses rose by 18.4% from RMB 120.2 million to RMB 142.3 million, mainly due to increased labor costs and depreciation of fixed assets[26]. - The company incurred depreciation expenses of RMB 39,806 thousand for property, plant, and equipment across all segments[113]. - Depreciation and amortization expenses for the six months ended June 30, 2022, totaled RMB 39,806,000 for property, plant, and equipment, an increase from RMB 35,446,000 in 2021[151]. Assets and Liabilities - Total assets amounted to RMB 2,972,672,000, a decrease from RMB 3,212,062,000 as of December 31, 2021[79]. - Total liabilities decreased to RMB 1,286,310 thousand from RMB 1,379,243 thousand, indicating improved financial leverage[80]. - Trade and other receivables decreased from RMB 380.9 million as of December 31, 2021, to RMB 221.1 million as of June 30, 2022, mainly due to a reduction in sales to third parties[42]. - Inventory decreased from RMB 1,061.9 million as of December 31, 2021, to RMB 1,014.0 million as of June 30, 2022, attributed to a decrease in purchase volume[42]. - The total amount of trade and other receivables was RMB 221,059,000 as of June 30, 2022, down from RMB 380,895,000 as of December 31, 2021, indicating a decrease of approximately 42.1%[128]. Cash Flow and Financing - Cash and cash equivalents increased by RMB 103.0 million or 43.2% from RMB 238.4 million as of December 31, 2021, to RMB 341.4 million as of June 30, 2022, primarily due to cash generated from operations[35]. - Cash generated from operating activities was RMB 332,344 thousand, an increase from RMB 318,231 thousand year-on-year[84]. - Total bank borrowings increased from RMB 619.4 million as of December 31, 2021, to RMB 672.7 million as of June 30, 2022, with a weighted average effective interest rate of 3.31%[35]. - Financing income increased from RMB 3.6 million for the six months ended June 30, 2021, to RMB 16.3 million for the six months ended June 30, 2022, mainly due to an increase in foreign exchange income[28]. - Financing costs decreased by 4.9% from RMB 14.2 million for the six months ended June 30, 2021, to RMB 13.5 million for the six months ended June 30, 2022, reflecting a reduction in interest expenses on bank borrowings[31]. Market Strategy and Operations - The company has adjusted its product mix, increasing the proportion of mid-to-high-end products to meet customer demand, with green tea sales revenue rising during the period[12]. - The company plans to continue optimizing its retail network, focusing on high-traffic areas in selected cities and expanding into third- and fourth-tier cities[12]. - A collaboration with Kinmen Kaoliang Liquor Inc. was established to sell liquor under a dual-brand strategy in China[12]. - The company continues to develop new tea-related products to meet market demand and adapt to changing consumer preferences[17]. - The company is focused on quality control, emphasizing the review and control of raw material quality in its supply chain[17]. Shareholder and Governance - The interim dividend declared is HKD 0.04 per share (equivalent to RMB 0.03), which is 50% of the after-tax consolidated net profit for the six months ended June 30, 2022[51]. - Major shareholders include Discerning Group Limited with 188,789,000 shares (17.26%) and KCL Trust with 378,273,000 shares (34.59%)[62]. - The board consists of four members, including three independent non-executive directors, ensuring governance standards are upheld[76]. - The company has established an audit committee to oversee financial reporting and risk management[76]. - The company maintained compliance with the corporate governance code as of June 30, 2022[67]. Challenges and Market Conditions - The impact of COVID-19 and economic slowdowns has led to tightened consumer spending, presenting challenges in the first half of 2022[9]. - Despite uncertainties in the retail market, the company aims to maintain its market share and continue expanding its retail presence[12].

Financial Performance - For the year ended December 31, 2021, revenue increased by 12.4% to RMB 1,924.7 million from RMB 1,712.6 million in 2020[7] - Gross profit rose by 9.4% to RMB 1,144.0 million, with a gross margin of 59.4%, down from 61.1% in 2020[7] - Profit attributable to shareholders increased by 17.7% to RMB 359.5 million, with a net profit margin of 18.7%, up from 17.8% in 2020[7] - Basic earnings per share for the year were RMB 0.33[7] - Total revenue for 2021 reached RMB 1.92 billion, despite challenges from COVID-19 and economic slowdowns[10] - In 2021, the company achieved revenue of RMB 1,924.7 million, an increase of 12.4% compared to 2020, and recorded an annual profit of RMB 359.5 million, up 17.7% from 2020[17] - Revenue from tea sales rose by 14.4% from RMB 1,222.1 million in 2020 to RMB 1,398.2 million in 2021[27] - Revenue from tea food sales increased by 16.2% from RMB 213.4 million in 2020 to RMB 248.0 million in 2021[27] - Revenue from tea utensils grew by 8.4% from RMB 182.6 million in 2020 to RMB 198.0 million in 2021[27] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.23 per share, equivalent to RMB 0.19 per share[7] - The company intends to declare dividends of no less than 20% of the group's after-tax consolidated profit for each financial year, subject to financial and business conditions[102] - The company paid dividends to shareholders totaling RMB 255,725 thousand in 2021, compared to RMB 201,704 thousand in 2020, representing an increase of 26.7%[144] Retail and Market Presence - The company operates over 1,300 retail outlets and specialty stores across 31 provinces in China as of December 31, 2021[3] - As of December 31, 2021, the company owned a total of 1,313 retail outlets and specialty stores, up from 1,243 as of December 31, 2020[17] - The company has been actively acquiring retail stores since 2008 to enhance its sales network and customer service capabilities[103] - The company plans to expand its sales network and optimize store locations, particularly in tier 3 and tier 4 cities[14] Product Development and Innovation - The company offers more than 1,300 types of traditional Chinese tea products, holding the largest market share in the traditional Chinese tea segment by retail sales[3] - New product development includes a focus on traditional foods and expanding the milk tea market, aiming to meet diverse consumer demands[11] - The company has adjusted its product offerings, increasing the proportion of mid-to-high-end products to meet customer needs in China[18] - The company is focused on developing new tea-related products to meet market demand and maintain its leading brand position[22] - The company aims to enhance its product innovation capabilities to build market competitiveness through differentiation[98] Financial Position and Assets - The total assets increased from RMB 2.90 billion in 2019 to RMB 3.21 billion in 2021, reflecting a growth of approximately 10.5%[9] - The total liabilities rose from RMB 1.21 billion in 2020 to RMB 1.38 billion in 2021, indicating an increase of about 13.4%[9] - The capital-to-debt ratio remained stable at 25.3% in 2021, compared to 25.1% in 2020[9] - Cash and cash equivalents decreased by RMB 122.6 million or 34.0% from RMB 361.0 million as of December 31, 2020, to RMB 238.4 million as of December 31, 2021[35] - Total bank borrowings increased from RMB 586.6 million as of December 31, 2020, to RMB 619.4 million as of December 31, 2021[37] Governance and Compliance - The company has adhered to the corporate governance code as per the listing rules, with no deviations reported for the year ending December 31, 2021[58] - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors, complying with the requirement that at least one-third of the board members are independent[60] - The company emphasizes high-quality governance to enhance shareholder value and ensure stakeholder interests are met[58] - The board is responsible for overseeing the company's business, strategic decisions, and performance, with authority delegated to the CEO for daily operations[59] Risk Management and Internal Controls - The company has implemented effective internal controls and risk management frameworks to address environmental, social, and governance (ESG) matters[58] - The company conducted a comprehensive risk assessment, identifying risks across business processes and summarizing them into a final risk list, which is evaluated based on likelihood and impact[79] - The company's risk management and internal control systems were deemed effective and adequate in all material aspects as of December 31, 2021[81] Market Trends and Consumer Behavior - The overall retail industry remains sluggish, with a long recovery period anticipated due to factors such as inflation, trade tensions, and the ongoing impact of the pandemic[95] - The shift in tea consumption trends is moving from first and second-tier cities to third and fourth-tier cities, presenting new growth opportunities[97] - The rise of health-conscious consumption is leading to diversified consumer demands, necessitating innovation in product offerings to break the homogenization in the tea industry[98] - The company is leveraging online platforms like Douyin and Kuaishou to reach consumers, adapting to changing shopping habits post-pandemic[97] Employee and Management Information - The group has a total of 3,508 full-time employees as of December 31, 2021[126] - The management team has over 15 years of financial experience, contributing to the company's strategic planning and operational management[57] - The company has not encountered any significant difficulties in recruitment or experienced major employee turnover during the year[49] Related Party Transactions - The group has ongoing related party transactions, including lease agreements with various related parties since 2009[115] - The group has complied with the disclosure requirements of the Listing Rules regarding related party transactions[115] - The independent non-executive directors confirmed that the ongoing connected transactions were conducted on normal commercial terms and in the overall interest of shareholders[125]

Financial Performance - For the year ended December 31, 2020, revenue decreased by 4.7% to RMB 1,712.6 million from RMB 1,796.8 million in 2019[6]. - Gross profit for the year ended December 31, 2020, decreased by 1.1% to RMB 1,045.8 million, while the gross profit margin increased to 61.1% from 58.9% in 2019[6]. - Profit attributable to shareholders increased by 11.8% to RMB 305.4 million, with a net profit margin rising to 17.8% from 15.2% in 2019[6]. - The basic earnings per share for the year ended December 31, 2020, was RMB 0.28[6]. - Total revenue for 2020 reached RMB 1.7 billion, despite challenging economic conditions due to COVID-19 and trade tensions with the US[9]. - In 2020, the company achieved revenue of RMB 1,712.6 million, a decrease of 4.7% compared to 2019, while annual profit increased by 11.8% to RMB 305.4 million[13]. - The company's gross profit margin improved from 15.2% in 2019 to 17.8% in 2020, primarily due to reduced costs and expenses[13]. - Revenue from tea sales increased by 0.6% to RMB 1,222.1 million, while revenue from tea food decreased by 3.3% to RMB 213.4 million, and revenue from tea utensils decreased by 11.1% to RMB 182.6 million[23]. Retail and Market Presence - As of December 31, 2020, the company operated 1,243 retail outlets and specialty stores across 31 provinces, regions, and municipalities in China[3]. - The company continues to leverage its strong brand recognition, being ranked first in the 2019 China Tea Chain Brand Power Index[3]. - The company plans to expand its tea beverage business, which is expected to contribute additional revenue and profitability[11]. - The company is committed to expanding its presence in third and fourth-tier cities and enhancing e-commerce capabilities[11]. - The company plans to continue optimizing its retail network in 2021, focusing on profitability and enhancing third-party retailer engagement[16]. - The company has been acquiring retail stores and points of sale since 2008 to maintain a strong sales network[97]. Cost Management and Profitability - The gross profit margin improved despite a decrease in revenue, indicating effective cost management strategies[6]. - The company will continue to optimize cost management and control expenses to maintain profitability amid rising raw material costs[9]. - Distribution costs decreased by 11.1% to RMB 365.3 million due to rent reductions and decreased employee welfare expenses during the pandemic[26]. - Administrative expenses decreased by 4.5% to RMB 222.5 million, attributed to better human resource management and cost control measures[27]. - The company has implemented strict cost control measures in response to anticipated performance growth slowdown, emphasizing efficiency across all operational segments[89]. Assets and Liabilities - Total assets increased from RMB 2,903,112 thousand in 2019 to RMB 2,967,721 thousand in 2020, reflecting a growth of 2.2%[8]. - The total liabilities rose from RMB 1,208,814 thousand in 2019 to RMB 1,216,197 thousand in 2020, indicating a slight increase of 0.3%[8]. - The capital-to-debt ratio increased from 23.4% in 2019 to 25.1% in 2020, showing improved financial stability[8]. - Cash and cash equivalents increased by RMB 170.0 million or 89.0% from RMB 191.0 million as of December 31, 2019, to RMB 361.0 million as of December 31, 2020[31]. - Total bank borrowings increased from RMB 516.7 million as of December 31, 2019, to RMB 586.6 million as of December 31, 2020[32]. Corporate Governance - The company is committed to high standards of corporate governance to enhance shareholder value and protect shareholder rights[53]. - The board consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors, complying with listing rules[54]. - The company has adhered to the corporate governance code without deviation during the fiscal year ending December 31, 2020[53]. - The board has established various committees to oversee corporate governance responsibilities, including training and compliance monitoring[57]. - The independent non-executive directors have confirmed their independence annually, ensuring compliance with listing rules[54]. Risk Management - The company has established a comprehensive risk management and internal control system, which is reviewed annually by the board[72]. - The internal audit department plays a crucial role in monitoring governance processes, providing reasonable assurance on operations, asset protection, and compliance[75]. - The company has implemented a three-line defense model for risk management, with operational management as the first line of defense[73]. Future Outlook and Strategy - The company has set a future outlook with a revenue growth target of 10% for the upcoming fiscal year[49]. - New product development includes the launch of a premium tea line, expected to contribute an additional 5% to overall sales[50]. - The company is investing in new technology for tea processing, aiming to improve efficiency by 30%[49]. - The management team emphasizes a commitment to sustainability, with a goal to reduce carbon emissions by 25% over the next five years[50]. Shareholder Engagement - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and transparency[81]. - The company has established a platform for face-to-face communication between the board and shareholders during the annual general meeting[81]. - The company provides shareholders with contact details for inquiries regarding their shareholdings and dividend rights[83]. Product Quality and Safety - The company is enhancing product quality and safety through strict management and quality control measures, including a digital and intelligent management system[92]. - The company has implemented a comprehensive traceability and anti-counterfeiting system for its products, improving channel management capabilities[92]. - The company has implemented multiple quality testing procedures to ensure compliance with applicable quality regulations[16]. Employee and Operational Insights - The company had a total of 3,743 full-time employees as of December 31, 2020[126]. - The company has implemented an integrated ERP system since 2012 to improve distribution efficiency and data collection[17].