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].