Financial Performance - The company reported a revenue of RMB 68,259,000 for the three months ended March 31, 2021, representing a 29.8% increase from RMB 52,573,000 in the same period last year[5]. - Gross profit for the same period was RMB 27,010,000, up from RMB 22,138,000, indicating a gross margin improvement[5]. - The company incurred a loss before tax of RMB 3,680,000, compared to a loss of RMB 4,127,000 in the previous year, reflecting a reduction in losses[5]. - The net loss for the period was RMB 2,945,000, an improvement from RMB 4,127,000 in the prior year[5]. - Basic and diluted loss per share was RMB 0.29, compared to RMB 0.41 for the same period last year[5]. - The net loss for the period was approximately RMB 29.45 million, a decrease of about RMB 12.7 million or 28.6% from the net loss of RMB 41.27 million in the previous year[28]. - The basic loss per share for the period was RMB 0.29, compared to RMB 0.41 in the same period last year[32]. - The net loss for the period was RMB 2.9 million, an improvement of approximately RMB 1.2 million or 28.6% compared to a net loss of approximately RMB 4.1 million in the same period last year, with a net loss margin of 4.3%[40]. Revenue Breakdown - Revenue from household hygiene products increased by approximately RMB 87 million or 34.9% to RMB 336 million, while oral care products revenue rose by approximately RMB 48 million or 19.9% to RMB 290 million[33]. - The leather care products revenue increased by approximately RMB 22 million or 62.5% to RMB 57 million, recovering from the low levels impacted by COVID-19 last year[33]. Operational Efficiency - The company is committed to maintaining its operational efficiency and reducing administrative expenses, which decreased to RMB 10,292,000 from RMB 11,494,000 year-over-year[5]. - Administrative expenses decreased to approximately RMB 10.3 million from approximately RMB 11.5 million, a reduction of approximately RMB 1.2 million or 10.5%[38]. - Interest expenses for the period were approximately RMB 0.2 million, down approximately RMB 0.5 million or 71.1% from approximately RMB 0.8 million in the same period last year[39]. Future Plans - The company plans to enhance its market presence and product offerings in the oral care and household hygiene segments[12]. - The company plans to increase inventory of raw materials and packaging to address rising costs[29]. - A new highly automated production line for household hygiene products is expected to commence production in Q3 2021, aimed at meeting growing customer demand[29]. Shareholder Information - Major shareholders include Ms. Li Qiu Yan with a 57.56% stake and Mr. Tong Xing with a 10.69% stake in the company[44][48]. Compliance and Governance - The company has adopted a code of conduct for securities trading that meets or exceeds the standards set by GEM Listing Rules, confirming compliance by all board members during the reporting period[55]. - The audit committee has reviewed the unaudited consolidated performance for the period and believes it complies with applicable accounting standards and GEM Listing Rules[59]. - The company maintains sufficient public float as required by GEM Listing Rules since the listing date[63]. Dividends and Investments - The company did not declare any dividends for the period ending March 31, 2021[26]. - The board decided not to declare a dividend for the period[41]. - The company redeemed a wealth management product with a principal amount of RMB 10 million during the period[41]. - No significant investments, acquisitions, or disposals of subsidiaries or associates were held during the period[41].

Financial Performance - The net profit for the year reached RMB 182 million, representing a significant increase of about 89.3% compared to the previous year[10]. - The group's revenue for the year was approximately RMB 305.8 million, a slight decrease of about 0.5% compared to the previous year[17]. - Net profit for the year was approximately RMB 18.2 million, representing a significant increase of about 89.3% year-on-year[29]. - The net profit margin improved to approximately 5.9%, an increase of about 2.8% from the previous year[29]. - The gross profit margin increased from approximately 41.4% to about 43.3%, attributed to a higher proportion of high-margin products[22]. - Revenue from household hygiene products rose by approximately RMB 19.7 million or 17.8% to about RMB 130.0 million, driven by increased consumer awareness during the COVID-19 pandemic[19]. - Revenue from oral care products decreased by approximately RMB 15.7 million or 9.2% to about RMB 154.5 million, primarily due to disruptions caused by the COVID-19 pandemic[18]. - The company reported a significant increase in revenue, achieving a total of 1.5 billion in 2020, representing a growth of 15% compared to the previous year[66]. Operational Efficiency - The company plans to upgrade its household hygiene products factory, expected to be operational by Q3 2021, with highly automated production equipment to enhance capacity and reduce labor costs[12]. - The company reduced sales and distribution costs by approximately 8.7% due to a decrease in the number of sales personnel employed in offline channels[10]. - The management emphasized the importance of enhancing operational efficiency, targeting a 5% reduction in operational costs[66]. - The company is enhancing its production capacity through renovations expected to be completed by Q3 2021, aiming to reduce reliance on manual labor[47]. - The company has implemented measures to mitigate supply chain risks due to potential COVID-19 outbreaks, including increasing automation and diversifying suppliers[47]. Investments and Financial Management - The management team has been investing surplus cash in reputable financial products to increase revenue[10]. - The company made investments in wealth management products totaling RMB 52.9 million during the year, including RMB 30 million and RMB 10 million in products from related companies[39]. - The company's cash and cash equivalents were approximately RMB 74.7 million as of December 31, 2020, down from RMB 80.9 million as of December 31, 2019[31]. - The company's capital debt ratio was approximately 8.5% as of December 31, 2020, a significant decrease from 27.5% as of December 31, 2019, primarily due to a reduction in average outstanding loans[36]. Market Outlook and Growth Strategies - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12%[66]. - New product launches are expected to contribute an additional 200 million in revenue in the upcoming year[66]. - Market expansion plans include entering three new regions, which are projected to increase market share by 5%[66]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 100 million allocated for potential mergers and acquisitions[66]. - Future strategies include diversifying product lines to mitigate market risks and enhance revenue streams[66]. Corporate Governance - The company has complied with all applicable code provisions during the year, demonstrating a commitment to high corporate governance standards[151]. - The roles of the Chairman and CEO are clearly distinguished, with Ms. Li Qiuyan as Chairman and Mr. Tong Xing as CEO[152]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced governance structure[159]. - The company has established specific committees, including the Audit Committee, Remuneration Committee, and Nomination Committee, to enhance governance[172]. - The board has implemented a formal and transparent director appointment process, with one-third of directors retiring at each annual general meeting[155]. Compliance and Risk Management - The group has not faced any significant violations of applicable laws and regulations during the year, indicating strong compliance[60]. - The group manages credit risk through a dedicated team that sets credit limits and monitors overdue debts, ensuring a proactive approach to credit management[53]. - The group faces foreign exchange risk due to fluctuations in currency rates, primarily as sales and production are mainly located in China, with no significant sales, assets, or liabilities denominated in currencies other than RMB[52]. Employee and Community Engagement - The company employed approximately 273 staff as of December 31, 2020, down from 298 in 2019, with employee costs around RMB 28.1 million[46]. - Charitable donations made by the group during the year amounted to RMB 205,000, down from RMB 336,000 in 2019[144]. - The company aims to improve customer satisfaction scores by 15% through enhanced service offerings[66].

China Golden Classic Group Limited 中 國 金 典 集 團 有 限 公 司 (於開曼群島註冊成立之有限公司) 股份代號：8281 VIT 75 雪豹 第三季度報告 2020 香港聯合交易所有限公司（「聯交所」）GEM（「GEM」）之特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在主板 上市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風 險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之 證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的 市場。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本報告全部或任何部分內容而產生 或因依賴該等內容而引致之任何損失承擔任何責任。 | --- | --- | |------------------------------------------------------------------------------------------ ...

Financial Performance - For the six months ended June 30, 2020, the company reported revenue of RMB 135,450 thousand, an increase from RMB 134,944 thousand in the same period of 2019, representing a growth of 0.37%[20] - Gross profit for the same period was RMB 61,602 thousand, compared to RMB 55,843 thousand in 2019, reflecting a year-on-year increase of 10.00%[20] - The company achieved a profit before tax of RMB 7,908 thousand, a significant increase from a loss of RMB 1,326 thousand in the previous year[20] - The net profit for the period was RMB 6,383 thousand, compared to a loss of RMB 1,731 thousand in the same period last year, indicating a turnaround in profitability[20] - Total comprehensive income for the period amounted to RMB 6,520 thousand, compared to a loss of RMB 1,675 thousand in 2019, showcasing improved financial performance[20] - Total comprehensive income for the six months ended June 30, 2020, was RMB 6,520,000, compared to RMB 6,383,000 for the same period in 2019, representing an increase of 2.14%[27] - The company reported basic earnings per share of RMB 0.64 for the six months ended June 30, 2020, compared to a loss per share of RMB 0.17 in the same period of 2019[20] - The basic earnings per share for the six months ended June 30, 2020, was RMB 6.38, compared to a loss per share of RMB 1.73 for the same period in 2019[61] Assets and Liabilities - As of June 30, 2020, total assets were RMB 362,809 thousand, slightly down from RMB 376,737 thousand at the end of 2019[22] - The total liabilities as of June 30, 2020, were RMB 138,152 thousand, a decrease from RMB 158,600 thousand as of December 31, 2019, reflecting a reduction of approximately 12.9%[53] - The company's net asset value increased to RMB 224,657 thousand from RMB 218,137 thousand at the end of 2019, indicating a growth of 2.37%[22] - Trade receivables, net of impairment, were RMB 40,870,000 as of June 30, 2020, down from RMB 45,567,000 as of December 31, 2019, representing a decrease of approximately 10.5%[69] - The group reported a total of RMB 69,663,000 in trade and other receivables as of June 30, 2020, compared to RMB 72,040,000 as of December 31, 2019, indicating a decline of about 3.5%[69] - The group’s trade payables amounted to RMB 48,485,000 as of June 30, 2020, slightly down from RMB 48,595,000 as of December 31, 2019[83] Cash Flow and Investments - Net cash generated from operating activities decreased significantly to RMB 690,000 from RMB 7,039,000 in the previous year, a decline of approximately 90.2%[29] - Total cash and cash equivalents at the end of the period were RMB 36,189,000, down from RMB 66,425,000 at the end of the previous year, reflecting a decrease of 45.5%[29] - The company incurred a net cash outflow from investing activities of RMB 35,067,000, compared to RMB 2,967,000 in the previous year, indicating a significant increase in investment expenditures[29] - Bank borrowings generated RMB 20,000,000 during the period, while repayments totaled RMB 30,000,000, resulting in a net cash outflow from financing activities of RMB 10,519,000[29] Revenue Segmentation - Revenue from the oral care products segment was RMB 71,694,000, while leather care products and household hygiene products generated RMB 5,711,000 and RMB 58,045,000 respectively, totaling RMB 135,450,000 for the six months ended June 30, 2020[44] - The gross profit from the oral care products segment was RMB 36,401,000, with a gross profit margin of approximately 50.8%[44] - The company’s revenue from oral care products for the three months ended June 30, 2020, was RMB 47,498 thousand, up from RMB 42,971 thousand in the same period of 2019, marking an increase of approximately 11.8%[49] - The company’s revenue from household hygiene products for the three months ended June 30, 2020, was RMB 33,162 thousand, compared to RMB 20,752 thousand for the same period in 2019, representing a significant increase of about 59.9%[49] - The leather care segment accounted for only 4.2% of total revenue, with a gross margin of 16.5%, down from 22% in the previous year due to declining demand[95] Future Plans and Strategies - The company plans to continue expanding its market presence and investing in new product development to drive future growth[13] - The company plans to continue focusing on the development and marketing of oral care, leather care, and household hygiene products to drive future growth[39] - The company has signed a cooperation agreement with Jiangnan University to jointly develop environmentally friendly household chemical products and disinfectants[98] - The company has adopted new retail channels, including influencer marketing, to expand customer support and reach[95] Employee and Governance - The group had 275 full-time employees as of June 30, 2020, and maintained good relationships with them, offering competitive compensation and training programs[121] - The audit committee has reviewed the unaudited consolidated results for the six months ending June 30, 2020, and confirmed compliance with applicable accounting standards and GEM listing rules[143] - The company has established an audit committee responsible for overseeing financial reporting and risk management[141] - The company has confirmed that all directors have complied with the code of conduct during the reporting period[145] Shareholder Information - Major shareholders included Zhongbao Mali with 575,625,000 shares (57.56%) and Tongxing Holdings with 106,875,000 shares (10.69%) as of June 30, 2020[129] - The company did not recommend any dividend for the six months ended June 30, 2020, consistent with the previous year[65]

China Golden Classic Group Limited 中 國 金 典 集 團 有 限 公 司 (於開曼群島註冊成立之有限公司) 股份代號：8281 VIT 75 雪豹 第一季度報告 2020 香港聯合交易所有限公司（「聯交所」）GEM（「GEM 」）的特色 GEM的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險的中小型公 司提供一個上市的市場。有意投資的人士應瞭解投資於該等公司的潛在風險，並 應經過審慎周詳的考慮後方作出投資決定。 由於在GEM上市的公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所 主板買賣的證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有 高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本報告全部或任何部分內容而產生 或因倚賴該等內容而引致的任何損失承擔任何責任。 本報告乃根據GEM證券上市規則（「GEM上市規則」）之規定提供有關中國金典集團 有限公司（「本公司」及連同其附屬公司（「本集團」））之資料。本公司各董事（「董 事」）共同及個別對本報告承擔全部責任。各董事 ...

China Golden Classic Group Limited 中 國 金 典 集 團 有 限 公 司 (於開曼群島註冊成立之有限公司) 股份代號：8281 年度報告 2019 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險的中小型公司提供一個上市的市場。有意投資的人士 應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由於在GEM上市的公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所主板買賣的證券承受較大的市場波動風 險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不 就因本報告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 本報告乃根據聯交所GEM證券上市規則（「GEM上市規則」）之規定提供有關中國金典集團有限公司（「本公司」）之資料。本公 司各董事（「董事」）共同及個別對本報告承擔全部責任。各董事於作出一切合理諮詢後確認，就彼等所深知及確信本報告所 載之資料在各重大方 ...

香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險的中小型公司提供一個上市的市場。有意投資的人士 應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮後方作出投資決定。 由於在GEM上市的公司普遍為中小型公司，在GEM買賣的證券可能會較於聯交所主板買賣的證券承受較大的市場波動風 險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不 就因本報告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 本報告乃根據聯交所GEM證券上市規則（「GEM上市規則」）之規定提供有關中國金典集團有限公司（「本公司」）之資料。本公 司各董事（「董事」）共同及個別對本報告承擔全部責任。各董事於作出一切合理諮詢後確認，就彼等所深知及確信本報告所 載之資料在各重大方面均屬準確及完整，且無誤導或欺詐成份，且本報告並無遺漏任何其他事項，以致本報告所載任何陳 述或本報告有所誤導。 目錄 公司資料 3 主席報告 4 管理層討論及分析 6 董事及高級管理層 ...

Financial Performance - Revenue for the third quarter of 2019 was RMB 80,125,000, an increase of 14% compared to RMB 70,217,000 in the same period of 2018[7] - Gross profit for the third quarter was RMB 32,995,000, up 26% from RMB 26,226,000 year-on-year[7] - The net profit for the third quarter was RMB 6,483,000, compared to RMB 2,151,000 in the same quarter of 2018, representing a significant increase of 201%[7] - Basic and diluted earnings per share for the third quarter were RMB 0.65, compared to RMB 0.22 in the same period last year[7] - Total comprehensive income attributable to owners of the company for the third quarter was RMB 6,670,000, up from RMB 1,853,000 in the same quarter of 2018[7] - The company reported a total revenue of RMB 215,069,000 for the nine months ended September 30, 2019, compared to RMB 191,811,000 for the same period in 2018, reflecting a growth of 12%[7] - The cost of sales for the third quarter was RMB 47,130,000, which is an increase from RMB 43,991,000 in the same quarter of 2018[7] - Other income for the third quarter was RMB 1,231,000, compared to RMB 453,000 in the same period last year, indicating a growth of 172%[7] - For the nine months ended September 30, 2019, the total revenue was RMB 215,069 thousand, an increase from RMB 191,811 thousand for the same period in 2018, representing a growth of approximately 12.1%[53] - The net profit for the same period was approximately RMB 4.8 million, representing a year-on-year increase of about 32.7% from RMB 3.6 million[71] - The gross profit margin improved to 41.3%, up 2.0 percentage points from 39.3% in the previous year[76] - The net profit margin for the nine months was approximately 2.2%, compared to 1.9% in the same period last year, reflecting a growth of about 0.3 percentage points[67] Revenue Breakdown - The revenue breakdown for the nine months ended September 30, 2019, includes RMB 122,902 thousand from oral care products, RMB 16,509 thousand from leather care products, and RMB 75,658 thousand from household hygiene products[53] - The oral care products segment reported revenue of RMB 41,716 thousand for the three months ended September 30, 2019, compared to RMB 37,779 thousand for the same period in 2018, reflecting an increase of approximately 5.0%[55] - Oral care product revenue increased by approximately RMB 16.8 million or 15.8% to RMB 122.9 million, driven by larger promotional activities[72] - Household hygiene product revenue rose by approximately RMB 9.9 million or 15.0% to RMB 75.7 million, attributed to increased brand popularity among customers[72] - Leather care product revenue decreased by approximately RMB 3.4 million or 17.0% to RMB 16.5 million, primarily due to reduced consumer usage[72] Expenses and Taxation - Selling and distribution expenses for the nine months were approximately RMB 49.2 million, an increase of about RMB 8.3 million or 20.1% compared to RMB 41.0 million last year[77] - Administrative expenses for the nine months ended September 30, 2019, amounted to RMB 34.4 million, an increase of approximately RMB 4.7 million or 16.0% compared to RMB 29.7 million in the same period last year[80] - Interest expenses for the nine months ended September 30, 2019, were approximately RMB 2.5 million, an increase of about RMB 0.4 million or 21.9% from RMB 2.0 million in the same period last year[81] - The company recognized income tax expenses of RMB 1,334 thousand for the nine months ended September 30, 2019, compared to RMB 979 thousand for the same period in 2018, indicating an increase of approximately 36.3%[56] - The deferred tax expense for the nine months ended September 30, 2019, was a negative RMB 45 thousand, while there was no deferred tax expense for the same period in 2018[56] - The company’s subsidiary in China is subject to a corporate income tax rate of 25%, with one subsidiary recognized as a high-tech enterprise benefiting from a reduced rate of 15%[60] - The company’s subsidiary recognized as a small and micro enterprise is subject to a preferential tax rate of 10%[60] Corporate Governance and Compliance - The company confirmed compliance with the standards of the code of conduct for securities trading during the nine months ended September 30, 2019[98] - The company maintained sufficient public float as per GEM listing rules since the listing date[106] - The audit committee reviewed the unaudited consolidated results for the nine months ended September 30, 2019, and confirmed compliance with applicable accounting standards and GEM listing rules[102] - The company adopted the corporate governance code as per GEM listing rules and has complied with its provisions for the nine months ended September 30, 2019[103] - The company has established an audit committee in accordance with GEM listing rules to oversee financial reporting and internal controls[102] - The company is committed to maintaining the highest standards of corporate governance practices[103] - The controlling shareholders have not violated any terms of the non-competition agreement since the company's listing date[100] - The company has no known interests or conflicts of interest from directors or controlling shareholders in competing businesses as of the report date[101] Future Plans and Strategies - The company plans to continue expanding its product lines in oral care, leather care, and household hygiene products[16] - The company plans to expand marketing strategies, including promoting toothpaste through live streaming in the fourth quarter of 2019[68] Shareholder Information - Major shareholders include Zhongbao Mali with 575,625,000 shares (57.56%) and Tongxing Holdings with 106,875,000 shares (10.69%) as of September 30, 2019[91] - The company has not granted any share options under the share option scheme adopted on June 17, 2016, since its adoption[95] - No purchases, sales, or redemptions of the company's listed securities occurred during the nine months ended September 30, 2019[97] - The board of directors decided not to declare any dividends for the nine months ended September 30, 2019[84]

Financial Performance - For the six months ended June 30, 2019, the company reported a revenue of RMB 134,944 thousand, an increase of 10.3% compared to RMB 121,594 thousand for the same period in 2018[20] - Gross profit for the same period was RMB 55,843 thousand, representing a gross margin of 41.4%, up from RMB 49,121 thousand in 2018[20] - The company incurred a loss of RMB 1,731 thousand for the six months ended June 30, 2019, compared to a profit of RMB 1,429 thousand in the same period of 2018[20] - The total comprehensive income for the six months ended June 30, 2019, was RMB (1,675) thousand, a decrease from RMB 1,113 thousand in the same period of 2018[28] - The company reported a basic and diluted loss per share of RMB 0.04 for the six months ended June 30, 2019, compared to earnings of RMB 0.14 in the same period of 2018[20] - The company reported a pre-tax loss of RMB 1,326 thousand for the six months ended June 30, 2019, compared to a profit of RMB 2,008 thousand for the same period in 2018[75] - The company reported a loss attributable to owners of RMB 1,731,000, compared to a profit of RMB 1,429,000 for the same period in 2018[96] - The company recorded a net loss of approximately RMB 1.7 million, a decrease of 221.1% from a net profit of RMB 1.4 million in the same period last year[148] Assets and Liabilities - Total assets as of June 30, 2019, were RMB 350,960 thousand, a decrease from RMB 364,429 thousand as of December 31, 2018[24] - The company's net asset value was RMB 206,847 thousand as of June 30, 2019, slightly down from RMB 208,522 thousand at the end of 2018[24] - The company’s total liabilities were RMB 142,685 thousand as of June 30, 2019, down from RMB 155,507 thousand at the end of 2018[24] - Total liabilities decreased to RMB 143,113 thousand as of June 30, 2019, down from RMB 155,907 thousand at the end of 2018, representing a reduction of approximately 8.2%[87] - The company’s inventory stood at RMB 39,329 thousand as of June 30, 2019, compared to RMB 39,759 thousand at the end of 2018[24] - Trade receivables as of June 30, 2019, amounted to RMB 34,758,000, down from RMB 43,689,000 as of December 31, 2018[112] - The company recognized a trade receivables impairment of RMB 826,000 as of June 30, 2019, compared to RMB 470,000 as of December 31, 2018[116] Cash Flow - As of June 30, 2019, the net cash generated from operating activities was RMB 7,039 thousand, compared to a net cash used of RMB (37,584) thousand in the same period of 2018[31] - The cash and cash equivalents at the end of the period were RMB 66,425 thousand, up from RMB 9,638 thousand at the end of the previous year[31] - The net cash used in investing activities was RMB (2,967) thousand, compared to RMB (8,685) thousand in the same period of 2018[31] - The company generated RMB 30,000 thousand in bank borrowings during the period, with a repayment of RMB (30,000) thousand[31] Segment Performance - The oral care segment generated revenue of RMB 81,186 thousand, accounting for 60.2% of total revenue, while the leather care and household hygiene segments contributed RMB 9,246 thousand and RMB 44,512 thousand, respectively[75] - The overall segment profit for the six months ended June 30, 2019, was RMB 55,843 thousand, compared to RMB 49,121 thousand for the same period in 2018, indicating an increase of approximately 13.7%[75] - The oral care segment's profit margin was approximately 46.1%, while the leather care and household hygiene segments had profit margins of 22.0% and 36.8%, respectively[75] - Revenue from oral care and household hygiene products increased significantly by approximately 18.8% and 13.0%, respectively, compared to the same period last year[150] - In Q2 2019, the growth rate and gross profit margin for oral care products reached 32.0% and 47%, respectively[150] Expenses - Selling and distribution costs rose by approximately RMB 6.6 million or 24.6% to RMB 33.4 million, reflecting increased costs for sales personnel and advertising[163] - Administrative expenses increased by approximately RMB 3.9 million or 19.1% to RMB 24.3 million, primarily due to higher employee costs and R&D expenses[164] - The company incurred depreciation expenses of RMB 7,958,000 for property, plant, and equipment during the six months ended June 30, 2019, compared to RMB 5,347,000 in the same period of 2018[98] Shareholder Information - As of June 30, 2019, major shareholders include Ms. Li with 575,625,000 shares, representing 57.56% of the company, and Mr. Tong with 106,875,000 shares, representing 10.69%[181][182][186] - Ms. Li is the beneficial owner of all issued shares of Zhongbao Mali Investment Limited, while Mr. Tong is the beneficial owner of all issued shares of Tongxing Holdings Group Limited[181][182] - The company has not purchased, sold, or redeemed any of its listed securities during the six months ending June 30, 2019[193] - The company has adopted a share option scheme effective for 10 years from June 17, 2016, to reward selected participants for their contributions[191] Compliance and Governance - The audit committee has been established in accordance with GEM listing rules, consisting of three independent non-executive directors[200] - The audit committee reviewed the unaudited consolidated results for the six months ended June 30, 2019, and found them compliant with applicable accounting standards and GEM listing rules[200] - The financial information has been adequately disclosed as per applicable laws and regulations[200] - The company has confirmed compliance with the trading code and conduct rules as per GEM Listing Rules during the reporting period[194]

Financial Performance - The company's revenue for the first quarter of 2019 was RMB 68,739,000, a decrease of 1.1% compared to RMB 69,493,000 in the same period last year[6] - Gross profit for the first quarter was RMB 26,862,000, down from RMB 28,193,000, reflecting a decline of 4.7% year-over-year[6] - The company reported a net loss of RMB 1,414,000 for the quarter, compared to a profit of RMB 2,106,000 in the previous year[6] - Basic and diluted loss per share was RMB (0.14), compared to earnings of RMB 0.21 per share in the same quarter last year[6] - The total comprehensive loss attributable to owners of the company for the period was RMB 1,414,000, compared to a comprehensive income of RMB 2,106,000 in the same period last year[6] - The net loss for the period was approximately RMB 1.4 million, a decrease of RMB 3.5 million or 167% compared to the net profit of RMB 2.1 million in the same period last year[38] - The overall gross profit margin decreased from approximately 40.6% in the previous year to about 39.1% in the current period[38] - The net loss margin for the current period was approximately 2.0%, compared to a net profit margin of about 3.0% in the previous year[38] - The gross profit decreased from approximately RMB 28.2 million to approximately RMB 26.9 million, a reduction of about RMB 1.3 million or 4.6%[46] - The gross margin decreased to 39.1%, down 1.5% from 40.6% in the same period last year, primarily due to a significant reduction in the gross margin of leather care products[46] Revenue Breakdown - The revenue from the oral care products segment was RMB 38.2 million, while leather care products and household hygiene products generated revenues of RMB 6.8 million and RMB 23.8 million, respectively[22] - Oral care product revenue increased by approximately RMB 5.4 million or 16.5% to approximately RMB 38.2 million, attributed to an increase in user repurchase rates[44] - The company experienced a temporary decrease in the selling price of household hygiene products, leading to a revenue decrease of approximately RMB 1.8 million or 7%[44] Expenses and Costs - Selling and distribution costs rose to RMB 17,220,000, up from RMB 14,350,000, indicating a 19.6% increase compared to the previous year[6] - Administrative expenses increased to RMB 11,197,000 from RMB 10,610,000, reflecting a rise of 5.5% year-over-year[6] - The company incurred finance costs of RMB 892,000, compared to RMB 629,000 in the previous year, representing an increase of 41.8%[6] - Sales and distribution costs for the period were approximately RMB 17.2 million, an increase of about RMB 2.8 million or 19.4% compared to RMB 14.4 million in the same period last year[49] - Administrative expenses for the period were approximately RMB 11.2 million, an increase of about RMB 0.6 million or 5.7% compared to RMB 10.6 million in the same period last year[50] Future Outlook and Strategy - The company plans to focus on expanding its operations in the oral care sector, driven by increasing demand for toothpaste due to growing awareness of oral hygiene[39] - New production facilities have been established for the production of FE enzymes and functional cosmetics to reduce overall production costs of oral care products[39] - The company provided a positive outlook for the upcoming quarters, projecting a revenue growth of 10-15% for the next quarter based on current market trends[71] - New product development is underway, with plans to launch two innovative products by Q3 2019, expected to contribute an additional HKD 30 million in revenue[71] - The company is exploring market expansion opportunities in Southeast Asia, targeting a 25% increase in market share within the next year[71] - There are ongoing discussions regarding potential acquisitions to enhance product offerings, with a budget of up to HKD 50 million allocated for this purpose[71] Corporate Governance and Compliance - The company does not recommend any dividend payment for the period, consistent with the previous year[35] - The company did not declare any dividends for the period[53] - Compliance with corporate governance standards has been maintained, ensuring transparency and accountability in operations[79] - The audit committee has reviewed the unaudited consolidated results for the period, confirming adherence to applicable accounting standards[75] - Public float requirements have been met since the listing date, ensuring sufficient public shareholding[80] User Engagement - User data indicated a rise in active users, with the total number of users increasing by 20% compared to the previous quarter, reaching 500,000 users[71] - The company has adopted a stock option plan to incentivize key employees, which is expected to improve retention and performance[67]