编号：2018-001 证券代码：002919 证券简称：名臣健康 投资者关系活动记录表 | --- | --- | |-----------------------|--------------------------------------------------------------| | | | | | 特定对象调研 □分析师会议 | | | □ 媒体采访 □业绩说明会 | | 投资者关系活动 类别 | □ 新闻发布会 □路演活动 | | | □ 现场参观 | | | □ 其他（请文字说明其他活动内容） | | 参与单位名称及 | 中金公司 樊俊豪 | | 人员姓名 | | | 时间 | 2018 年 2 月 6 日 14:00-17:00 | | 地点 | 名臣健康用品股份有限公司 3 楼会议室 | | 上市公司接待人 员姓名 | 名臣健康用品股份有限公司董事长陈勤发、董秘陈东松 | | 投资者关系活动 | 一、公司董事长陈勤发先生向调研人员介绍调研相关注意事项、签署 | | 主要内容介绍 | 承诺 | | | 二、问答环节 | | | 1 、品牌是一个企业长期的积淀，在日化行业中，比如公司的 | ...

证券代码：002919 证券简称：名臣健康 编号： 2018-003 投资者关系活动记录表 | --- | --- | --- | |---------------------|--------------------------------------------|------------------------------------------------------| | | | | | | □ 特定对象调研 □分析师会议 | | | | □媒体采访 □业绩说明会 | | | 投资者关系活动 类别 | □ 新闻发布会 □路演活动 | | | | □现场参观 | | | | 其他（电话会谈） | | | 参与单位名称及 | 中信里昂证券 张嘉瑜 | | | 人员姓名 | | | | 时间 | 2018 年 6 月 28 日 14:00-14:35 | | | 方式 | 电话会谈 | | | 上市公司接待人 | 名臣健康用品股份有限公司董秘陈东松 | | | 员姓名 | | | | 投资者关系活动 | | 一、公司人员向调研人员介绍调研相关注意事项、签署承诺 | | 主要内容介绍 | 二、问答环节 | | ...

Group 1: Company Operations and Management - The daily operations of the company are managed by the board of directors, with Chairman Chen Qinfang also serving as the General Manager, making key decisions for daily business management [3] - The company is considering employee stock ownership or equity incentive plans in the future [3] - The decline in Q1 performance is attributed to the impact of the traditional Spring Festival, which affected order fulfillment due to extended holidays and adverse weather conditions [3] Group 2: Brand and Marketing Strategy - The selection criteria for brand ambassadors include a good overall image and reputation, with a focus on appealing to younger consumers [4] - The brand ambassador for "Ti Hua Zhi Xiu" is Wang Likun, known as the "Bare-faced Goddess," while "Mei Wang" is represented by the "Jiu Yue Qi Ji" group [4] - The company has a significant presence in supermarkets, with a notable market share among domestic brands, particularly for the "Ti Hua Zhi Xiu" brand [4] Group 3: Sales Channels and E-commerce - The company primarily opens stores through distributors, with a significant expansion in physical store presence [5] - Currently, the company does not operate its own online stores but relies on authorized distributors on platforms like JD, Taobao, Tmall, and Pinduoduo [5] - The company plans to launch new brands, including "Chu Cui," which targets sensitive skin care and was showcased at the 2018 Shanghai Beauty Expo [5] Group 4: Future Development and Product Innovation - The company aims to develop higher-end products in response to the evolving consumer market, particularly targeting younger demographics [6] - The company is focused on enhancing product quality while seeking innovative breakthroughs in product development [7] - The name "Ming Chen Health" reflects the company's commitment to personal health care and beauty, with plans to explore the broader "big health" sector [7][8]

证券代码：002919 证券简称：名臣健康 投资者关系活动记录表 编号：2021-001 | --- | --- | --- | |----------------|----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | | □特定对象调研 | □分析师会议 | | | □媒体采访 □业绩说明会 | | | 投资者关系活动 | □新闻发布会 | □路演活动 | | 类别 | □现场参观 | | | | 其他（电话会议） | | | 参与单位名称 | | 信诚基金、富安达基金、博时基金、东吴基金、万家基金、新 时代证券、上海证券、华西证券、东方证券、招银理财、盈科 资本、泓信投资、乾信投资、麦星投资、道谊资产、玖龙资产、 | | | | 创迈投资、百年保险 ...

证券代码：002919 证券简称：名臣健康 投资者关系活动记录表 编号：2022-001 | --- | --- | --- | --- | |--------------------------------------|-----------------------------|---------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | | | □特定对象调研 | □分析师会议 | | | | | □媒体采访 □业绩说明会 | | | 投资者关系活动 | □新闻发布会 | □路演活动 | | | 类别 ...

Financial Performance - The company's revenue for Q3 2022 was ¥218,438,464.02, representing a 27.29% increase compared to the same period last year[5] - The net profit attributable to shareholders was -¥45,526,989.51, a decrease of 305.80% year-on-year[5] - The net cash flow from operating activities was -¥91,884,294.74, a significant decline of 2,529.31% compared to the previous year[5] - The company's basic earnings per share were -¥0.27, down 307.69% year-on-year[5] - The company reported a net operating loss of RMB 29,404,454.99, a significant decline from a profit of RMB 120,971,502.78 in the previous period[26] - The net profit for the third quarter of 2022 was -18,380,380.51 CNY, compared to a net profit of 121,021,881.50 CNY in the same period last year, indicating a significant decline[27] - The total revenue from operating activities was 556,680,888.09 CNY, down from 577,286,645.38 CNY year-over-year, reflecting a decrease of approximately 3.5%[28] - The company experienced a total comprehensive loss of -18,380,380.51 CNY for the quarter, aligning with the net loss reported[27] Assets and Liabilities - Total assets at the end of the reporting period were ¥978,654,484.61, an increase of 0.86% from the end of the previous year[5] - Total liabilities increased to RMB 283,116,750.51 from RMB 212,535,291.07, indicating a significant rise in financial obligations[24] - The total equity attributable to shareholders decreased to RMB 695,537,734.10 from RMB 757,810,648.61, reflecting a decline in shareholder value[24] Operating Costs and Expenses - The company's operating costs increased by 44.28% to ¥391,488,946.25 due to significant promotional investments in overseas markets[11] - Operating costs surged to RMB 592,534,091.04, compared to RMB 451,708,983.89 in the prior period, reflecting increased operational expenses[26] - Research and development expenses rose to RMB 77,079,189.10, up from RMB 69,316,626.75, highlighting a focus on innovation[26] Shareholder Information - Total number of common shareholders at the end of the reporting period is 4,986[14] - The largest shareholder, Chen Qinfang, holds 37.00% of shares, totaling 63,270,900 shares[14] - The company plans to repurchase shares with a total fund of no less than RMB 50 million and no more than RMB 100 million, at a price not exceeding RMB 35.00 per share[16] - The repurchase price has been adjusted to not exceed RMB 24.79 per share, with an estimated repurchase quantity of 201,694.2 shares at the lower limit and 403,388.4 shares at the upper limit[18] - As of September 30, 2022, the company has repurchased a total of 390,000 shares, accounting for 0.11% of the total share capital, with a total payment of RMB 7,250,795.4[19] - The company distributed cash dividends of RMB 3 per 10 shares, totaling RMB 36,640,723.5, and increased total share capital by 48,854,298 shares through capital reserve conversion[19] Government Support and Investments - The company received government subsidies amounting to ¥6,631,472.74, a 611.12% increase compared to the previous year[11] - The company plans to continue expanding its market presence and investing in new game development despite current challenges[11] - The company transferred assets related to its daily chemical business to its wholly-owned subsidiary, with a book value of RMB 181,202,454.10[20] - The company plans to acquire 100% equity of Kashgar Aoshut Network Technology Co., Ltd. for RMB 21,900 million, with a 30% advance payment already made[21] - The company is actively progressing with the acquisition project, with further details disclosed in public announcements[21] Cash Flow and Liquidity - The company's cash and cash equivalents decreased to RMB 121,681,883.77 from RMB 250,898,429.01, indicating liquidity challenges[23] - The cash inflow from investment activities was 227,103,942.61 CNY, down from 374,835,397.52 CNY year-over-year, indicating a decline in cash generated from investments[28] - The total cash outflow from investing activities was 216,512,219.29 CNY, compared to 320,561,837.02 CNY in the previous year, indicating a reduction in investment expenditures[28] - The cash flow from financing activities resulted in a net outflow of -49,724,015.09 CNY, compared to -73,667,624.02 CNY in the same period last year, showing an improvement in financing cash flow[29] - The cash and cash equivalents at the end of the period were 121,681,883.77 CNY, down from 175,823,317.82 CNY at the end of the previous year, representing a decrease of about 30.8%[29] Market and Product Development - The company did not report any new product launches or significant market expansion strategies during this quarter[30]

证券代码：002919 证券简称：名臣健康 公告编号：2022-043 名臣健康用品股份有限公司 关于参加广东辖区上市公司 2022 年投资者网上 集体接待日活动的公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有虚 假记载、误导性陈述或重大遗漏。 为进一步加强与投资者的互动交流，名臣健康用品股份有限公司（以下简称 "公司"）将参加由广东证监局、广东上市公司协会联合举办的"2022 年广东 辖区上市公司投资者网上集体接待日活动"，现将相关事项公告如下： 本次投资者网上集体接待日活动将通过深圳市全景网络有限公司提供的网 上平台举行，投资者可以登录"全景·路演天下"网站（http://rs.p5w.net） 参与公司本次投资者网上集体接待日活动。网上互动交流时间为 2022 年 9 月 22 日（星期四）15:50-16:50。 届时公司部分高管将在线就公司业绩、公司治理、发展战略、经营状况和可 持续发展等投资者关心的问题，与投资者进行沟通与交流，欢迎广大投资者踊跃 参与。 特此公告。 名臣健康用品股份有限公司 董事会 二〇二二年九月二十日 ...

Financial Performance - The company's operating revenue for the first half of 2022 was ¥344,578,465.20, a decrease of 14.13% compared to ¥401,275,143.40 in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2022 was ¥27,146,609.00, down 72.55% from ¥98,899,969.23 in the previous year[18]. - The net cash flow from operating activities was -¥42,404,998.19, representing a decline of 36.35% compared to -¥31,100,027.12 in the same period last year[18]. - Basic earnings per share decreased by 72.41% to ¥0.16 from ¥0.58 in the previous year[18]. - The total assets at the end of the reporting period were ¥968,673,474.97, a slight decrease of 0.17% from ¥970,345,939.68 at the end of the previous year[18]. - The net assets attributable to shareholders decreased by 1.70% to ¥744,957,382.90 from ¥757,810,648.61 at the end of the previous year[18]. - The company reported a significant decline in net profit excluding non-recurring gains and losses, which was ¥20,190,495.82, down 79.31% from ¥97,580,250.47 in the previous year[18]. - The weighted average return on net assets decreased to 3.55% from 14.13% in the previous year, a drop of 10.58%[18]. Dividend and Fund Management - The company plans not to distribute cash dividends or issue bonus shares[4]. - The company reported a total of 21,690 million RMB in fundraising, with 1,228.7 million RMB used in the current period and a cumulative total of 23,286 million RMB used[48]. - The actual net fundraising amount was 216,905,303.28 RMB after deducting related expenses from a total of 255,721,600.00 RMB raised[49]. - The company has permanently supplemented its working capital with remaining fundraising amounts, including 93,175,084.67 RMB from the marketing network construction project[51]. - The company has not reported any unutilized raised funds or issues with the disclosure of fund usage, ensuring compliance with regulations[56]. - The company plans to incorporate the costs of terminated projects into its normal budget expenditures, reflecting a strategic shift in resource allocation[55]. Project Termination and Strategic Adjustments - The company terminated the "Marketing Network Construction Project" and will permanently supplement the remaining raised funds into working capital, citing changes in the domestic daily chemical market and increased competition as reasons[54]. - The "Daily Chemical Production Line Technology Renovation Project" was also terminated, with the company stating that the existing production capacity is sufficient to meet near-term product demand[54]. - The total investment amount for the terminated projects was 21,690 million, with 1,228.7 million already invested[54]. - The decision to terminate projects was made after careful consideration of market conditions and the company's product lifecycle[54]. - The company aims to adapt to emerging marketing channels and consumer trends while managing investment risks effectively[54]. Market Presence and Brand Development - The company has been engaged in the daily chemical industry since its establishment in 1994, focusing on health care products such as shampoos, conditioners, and skincare products[26]. - The company entered the gaming industry through an acquisition in August 2020, primarily focusing on game development and commercialization, with plans to expand into self-publishing and external agency operations[26]. - The company has developed a strong brand presence with notable brands like "Tihua Zhi Xiu" and "Mei Wang," which have been recognized as "Famous Trademarks of Guangdong Province"[29]. - The company has approximately 40,000 retail outlets across the country, with a significant presence in third and fourth-tier cities, and is actively expanding into first and second-tier markets[31]. - The company aims to enhance its market position by leveraging its technical development capabilities and rich market operation experience in the gaming sector[28]. Research and Development - The company has established a comprehensive R&D system with 1,008 independent intellectual property trademarks, 49 technology patents, and 88 design patents, positioning itself as a leader in local daily chemical R&D[32]. - Research and development expenses rose by 8.48% to ¥49,782,843.77, reflecting the company's commitment to enhancing its product offerings[36]. - The company has a strong and stable R&D team, with core members having over 8 years of industry experience, which is crucial for game quality[33]. Operational Efficiency and Challenges - The company has established a stable and efficient operational process, successfully validating projects with monthly revenues exceeding ¥100 million[33]. - The company is committed to technological innovation, with a focus on providing safe, healthy, and high-quality consumer experiences through its product offerings[26]. - The company is facing increased competition in the daily chemical market, with a notable rise in market penetration rates for various brands[55]. - The management highlighted the impact of the COVID-19 pandemic on market conditions and consumer behavior, leading to a reassessment of investment strategies[54]. Shareholder and Governance Matters - The company has implemented measures to enhance investor rights protection, ensuring timely and accurate information disclosure and facilitating shareholder participation in meetings[78]. - The company has not experienced any financial misconduct involving major shareholders or related parties, maintaining a clean financial record[79]. - The company has established a governance structure including a shareholders' meeting, board of directors, and supervisory board[172]. Future Outlook - The company plans to focus on enhancing operational efficiency and shareholder value in light of the current market environment[54]. - The company aims to optimize traditional distribution channels and enhance retail network construction, targeting stable growth in revenue and net profit for the second half of 2022[63]. - The company plans to expand its market presence and invest in new product development to drive future growth[164].

[Important Notice, Table of Contents, and Definitions](index=2&type=section&id=Item%20I%20Important%20Notice%2C%20Table%20of%20Contents%2C%20and%20Definitions) This section includes important disclaimers, the report's table of contents, and the company's proposed profit distribution plan [Important Notice](index=2&type=section&id=Important%20Notice) The board guarantees report accuracy, forward-looking statements are not commitments, and the 2021 profit distribution plan is presented - The company's 2021 profit distribution plan proposes a cash dividend of **3.00 yuan (tax inclusive) per 10 shares** and a capital reserve transfer of **4 shares per 10 shares** to all shareholders, based on 122,135,745 shares[4](index=4&type=chunk) [Company Profile and Key Financial Indicators](index=6&type=section&id=Item%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides an overview of the company's business transformation and key financial performance indicators for the reporting period [Company Information and Key Financial Indicators](index=6&type=section&id=Company%20Information%20and%20Key%20Financial%20Indicators) In 2021, the company achieved **744 million yuan** in revenue and **133 million yuan** in net profit, transitioning to a dual-core business model of daily chemicals and online gaming Key Accounting Data and Financial Indicators for 2021 | Indicator | 2021 | 2020 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue (Yuan) | 744,148,561.43 | 680,571,308.29 | 9.34% | | Net Profit Attributable to Shareholders (Yuan) | 133,493,915.47 | 102,240,267.90 | 30.57% | | Net Profit Attributable to Shareholders Excluding Non-recurring Items (Yuan) | 109,582,759.28 | 91,722,575.51 | 19.47% | | Net Cash Flow from Operating Activities (Yuan) | 79,866,171.40 | 170,972,764.94 | -53.29% | | Basic Earnings Per Share (Yuan/Share) | 1.09 | 0.84 | 29.76% | | Weighted Average Return on Net Assets | 18.96% | 16.78% | 2.18% | | Total Assets (Yuan) | 970,345,939.68 | 879,177,170.27 | 10.37% | | Net Assets Attributable to Shareholders (Yuan) | 757,810,648.61 | 655,461,348.12 | 15.61% | - The company entered the online gaming business through equity investments in gaming companies like Hainan Huaduo Network Technology Co., Ltd., establishing a dual-core business model of daily chemicals and online gaming[17](index=17&type=chunk) - Total non-recurring gains and losses in 2021 amounted to **23.9112 million yuan**, primarily from the **19.24 million yuan** gain on disposal of non-current assets from transferring 100% equity of Shantou Jiasheng Printing Co., Ltd[23](index=23&type=chunk)[24](index=24&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Item%20III%20Management%20Discussion%20and%20Analysis) This section analyzes the company's industry landscape, business operations, core competencies, financial performance, and future outlook [Industry Overview During the Reporting Period](index=10&type=section&id=I.%20Industry%20Overview%20During%20the%20Reporting%20Period) The daily chemical industry shows segmentation and diversified channels, while the gaming industry experiences steady growth with increasing self-developed game capabilities - Daily chemical industry trends include **category segmentation**, **multi-channel marketing** (especially online and live streaming e-commerce), and **decreasing consumer brand loyalty**[28](index=28&type=chunk) - Gaming industry trends show **steady market growth**, with the domestic market reaching **296.513 billion yuan** (+6.4%) and **666 million users** (+0.22%) in 2021; self-developed game capabilities are improving, and overseas market revenue growth (+16.59%) outpaces domestic growth (+6.51%)[29](index=29&type=chunk) [Company's Main Businesses During the Reporting Period](index=10&type=section&id=II.%20Company's%20Main%20Businesses%20During%20the%20Reporting%20Period) The company operates a dual-core business model encompassing daily chemicals, with established brands like "Dihua Zhixiu," and online gaming, focusing on R&D and expanding into publishing - The company operates a dual-core business model of daily chemicals and online gaming, with the gaming business acquired through external mergers and acquisitions in August 2020[30](index=30&type=chunk) - Key daily chemical brands include Dihua Zhixiu and Meiwang, with products covering hair care, skincare, oral care, and home care[32](index=32&type=chunk) - The gaming business primarily focuses on R&D, successfully developing popular titles like "King's Realm" and "Bailong Baye," and began exploring game publishing in Q4 2021 to achieve self-development and self-publishing[30](index=30&type=chunk)[33](index=33&type=chunk) [Analysis of Core Competencies](index=13&type=section&id=III.%20Analysis%20of%20Core%20Competencies) The company's core strengths lie in its established daily chemical brands, extensive distribution network, strong R&D capabilities, and a stable, efficient gaming development team - Daily chemical business advantages include well-known trademarks like "Dihua Zhixiu" and "Meiwang," a nationwide distribution network with approximately **40,000 retail outlets**, and **47 technical invention patents** with an R&D center certified by CNAS[39](index=39&type=chunk)[40](index=40&type=chunk) - Gaming business advantages include an efficient, stable, and strong R&D team with core members having over **8 years of industry experience**, an experienced management team with successful projects generating over **100 million yuan in monthly revenue**, and long-term stable cooperation with mainstream domestic mobile game publishers[41](index=41&type=chunk) [Analysis of Main Business](index=14&type=section&id=IV.%20Analysis%20of%20Main%20Business) In 2021, revenue grew by 9.34% to **744 million yuan**, driven by a **75.53% increase in gaming revenue**, while daily chemical revenue declined, and R&D expenses significantly rose [Revenue and Cost](index=15&type=section&id=2.%20Revenue%20and%20Cost) In 2021, the company's revenue composition shifted significantly, with online gaming revenue growing by **75.53%** to **211 million yuan**, increasing its share to **28.33%**, while daily chemical revenue decreased by **4.67%** Revenue Composition by Industry | Industry | 2021 Amount (Yuan) | Proportion of Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Chemical Raw Materials and Chemical Products Manufacturing | 528,061,226.20 | 70.96% | -4.67% | | Software and Information Technology Services | 210,830,713.39 | 28.33% | 75.53% | Gross Profit Margin by Product | Product | Revenue (Yuan) | Cost of Revenue (Yuan) | Gross Profit Margin | | :--- | :--- | :--- | :--- | | Daily Chemical Products | 527,038,749.04 | 350,105,629.93 | 33.57% | | Online Games | 210,810,230.80 | 13,109,077.32 | 93.78% | - During the reporting period, the company established **4 new subsidiaries**, including Hainan Xingxuan Shikong Network Technology Co., Ltd., which were included in the consolidated financial statements[52](index=52&type=chunk) [Expenses](index=18&type=section&id=3.%20Expenses) In 2021, the company experienced significant expense changes, with R&D and administrative expenses increasing due to the consolidation of gaming subsidiaries, while financial expenses decreased due to reduced short-term borrowing interest 2021 Expense Changes | Expense Item | 2021 (Yuan) | 2020 (Yuan) | YoY Change | Explanation of Significant Change | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 83,331,914.95 | 74,744,945.83 | 11.49% | - | | Administrative Expenses | 71,160,475.20 | 51,856,341.85 | 37.23% | Primarily due to different consolidation periods for gaming subsidiaries | | Financial Expenses | -328,762.61 | 436,580.20 | -175.30% | Primarily due to reduced short-term borrowing interest expenses during the reporting period | | R&D Expenses | 98,507,662.89 | 46,269,566.37 | 112.90% | Primarily due to different consolidation periods for gaming subsidiaries | [R&D Investment](index=18&type=section&id=4.%20R%26D%20Investment) In 2021, the company's R&D investment surged by **112.90%** to **98.5077 million yuan**, representing **13.24%** of revenue, with a growing R&D team focused on both daily chemical and diverse gaming projects R&D Investment Status | Indicator | 2021 | 2020 | Change Percentage | | :--- | :--- | :--- | :--- | | R&D Investment Amount (Yuan) | 98,507,662.89 | 46,269,566.37 | 112.90% | | R&D Investment as % of Revenue | 13.24% | 6.80% | 6.44% | - The company's in-development game projects include 3D MMORPG "My War Alliance," ACGN card-based turn-based mobile game "Anchor Point Descend," and simulation management card-based mobile game "Star King," aiming for product diversification and new market expansion[58](index=58&type=chunk) [Cash Flow](index=20&type=section&id=5.%20Cash%20Flow) In 2021, operating cash flow significantly decreased by **53.29%** to **79.8662 million yuan** due to subsidiary consolidation, while investment cash flow turned positive, and financing cash flow declined sharply from repayment of short-term bank loans Key Cash Flow Statement Items | Item | 2021 (Yuan) | 2020 (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 79,866,171.40 | 170,972,764.94 | -53.29% | | Net Cash Flow from Investing Activities | 49,629,692.22 | -270,201,282.25 | 118.37% | | Net Cash Flow from Financing Activities | -77,309,436.49 | -23,551,692.63 | -228.25% | | Net Increase in Cash and Cash Equivalents | 52,186,427.13 | -122,780,209.94 | 142.50% | [Analysis of Assets and Liabilities](index=21&type=section&id=VI.%20Analysis%20of%20Assets%20and%20Liabilities) As of year-end 2021, total assets grew by **10.37%** to **970 million yuan**, with a significant reduction in short-term borrowings and a portion of assets restricted due to collateral - As of the end of 2021, the company's total assets were **970 million yuan**, an increase of **10.37%** from the beginning of the year, with cash and cash equivalents accounting for **25.86%**, accounts receivable for **21.61%**, and inventories for **13.71%**[19](index=19&type=chunk)[64](index=64&type=chunk) - Short-term borrowings at year-end were **0**, a decrease of **39.0459 million yuan** from the beginning of the period, reducing their proportion of total assets from **4.30% to 0%**[65](index=65&type=chunk) - As of the end of the reporting period, **19.4634 million yuan** of the company's assets were restricted, primarily fixed assets and intangible assets used as collateral for bank credit[67](index=67&type=chunk) [Analysis of Investment Status](index=23&type=section&id=VII.%20Analysis%20of%20Investment%20Status) The company had no major investments during the reporting period, and it terminated the "Marketing Network Construction Project," reallocating the remaining **93.1751 million yuan** in raised funds to permanent working capital - The company terminated the "Marketing Network Construction Project" and permanently supplemented working capital with the remaining **93.1751 million yuan** of raised funds from the project[75](index=75&type=chunk) - The termination of the "Marketing Network Construction Project" was due to changes in the domestic daily chemical market, intense industry competition, low brand loyalty among young consumers, and the impact of emerging channels, leading the company to believe that substantial investment might not yield corresponding returns[79](index=79&type=chunk) [Outlook on Company's Future Development](index=27&type=section&id=XI.%20Outlook%20on%20Company's%20Future%20Development) The company plans to deepen its dual-core business strategy by optimizing daily chemical channels and expanding into game publishing, while acknowledging risks such as brand image, distribution models, and intense industry competition - Future plans for the daily chemical business include optimizing traditional distribution channels, advancing the "258" project to add advantageous outlets, and leveraging new media and e-commerce channels to promote brand youthfulness and specialization[85](index=85&type=chunk)[86](index=86&type=chunk) - Future plans for the gaming business include adhering to boutique R&D, launching new products opportunely, expanding into overseas markets, and entering the game publishing sector to strive for self-development and self-publishing[86](index=86&type=chunk)[87](index=87&type=chunk) - The company faces key risks including potential damage to brand image, risks associated with the distribution model, uncertainty of advertising effectiveness, intense competition in the gaming industry, and potential bad debt risks due to long accounts receivable cycles in the gaming business[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) [Corporate Governance](index=30&type=section&id=Item%20IV%20Corporate%20Governance) This section details the company's governance structure, including the board, supervisors, and senior management, as well as its profit distribution policies [Basic Status of Corporate Governance](index=30&type=section&id=I.%20Basic%20Status%20of%20Corporate%20Governance) The company has established a sound governance structure with clear responsibilities and independent operations, ensuring compliance with regulatory requirements - The company's governance structure is sound, with the general meeting of shareholders, board of directors, supervisory board, and senior management each performing their duties and operating in a standardized manner[94](index=94&type=chunk) - The company maintains independence from its controlling shareholder in terms of business, personnel, assets, organization, and finance, with no horizontal competition[95](index=95&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) [Information on Directors, Supervisors, and Senior Management](index=32&type=section&id=V.%20Information%20on%20Directors%2C%20Supervisors%2C%20and%20Senior%20Management) During the reporting period, the company completed the re-election of its board and supervisory board, with Mr. Chen Jianming succeeding his father as Chairman and General Manager, and disclosed the compensation of its current executives - The company completed the re-election of its board of directors, with former Chairman Chen Qinfu stepping down and Chen Jianming elected as the new Chairman and appointed as General Manager[104](index=104&type=chunk)[106](index=106&type=chunk) Compensation of Selected Directors, Supervisors, and Senior Management (2021) | Name | Position | Total Pre-tax Compensation from Company (Million Yuan) | | :--- | :--- | :--- | | Chen Jianming | Chairman, General Manager | 0.4486 | | Peng Xiaoqing | Vice Chairman, Deputy General Manager and CFO | 0.4486 | | Chen Dongsong | Director, Deputy General Manager, Board Secretary | 0.3414 | | Zeng Xusheng | Director | 0.7848 | | Total | -- | 3.5925 | [Company's Profit Distribution and Capital Reserve to Share Capital Increase](index=43&type=section&id=X.%20Company's%20Profit%20Distribution%20and%20Capital%20Reserve%20to%20Share%20Capital%20Increase) The company's 2021 profit distribution plan proposes a cash dividend of **3.00 yuan per 10 shares** and a capital reserve transfer of **4 shares per 10 shares**, totaling **36.6407 million yuan** in cash dividends 2021 Profit Distribution and Capital Reserve to Share Capital Increase Plan | Item | Content | | :--- | :--- | | Number of Bonus Shares per 10 Shares (Shares) | 0 | | Cash Dividend per 10 Shares (Yuan) (Tax Inclusive) | 3.00 | | Number of Shares Transferred from Capital Reserve per 10 Shares (Shares) | 4 | | Share Capital Base for Distribution Plan (Shares) | 122,135,745 | | Cash Dividend Amount (Yuan) (Tax Inclusive) | 36,640,723.50 | [Environmental and Social Responsibility](index=48&type=section&id=Item%20V%20Environmental%20and%20Social%20Responsibility) This section outlines the company's commitment to environmental protection, investor and employee rights, partner relations, and social welfare, while maintaining a robust safety management system [Overview of Environmental and Social Responsibility](index=48&type=section&id=Overview%20of%20Environmental%20and%20Social%20Responsibility) The company is not a key polluter, has no environmental penalties, actively protects stakeholders' rights, engages in philanthropy, and maintains a comprehensive safety production management system - The company and its subsidiaries are not classified as key polluting entities by environmental protection authorities and received no environmental administrative penalties during the reporting period[144](index=144&type=chunk) - The company actively fulfills its social responsibilities, including protecting investor rights, valuing employee rights, maintaining partner relationships, and participating in social welfare activities[145](index=145&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) - The company has established a comprehensive safety production management system, including "Safety Production Management Regulations" and "Emergency Response System," to ensure safe operations[148](index=148&type=chunk) [Significant Matters](index=50&type=section&id=Item%20VI%20Significant%20Matters) This section details significant accounting policy changes, related party transactions, major contracts, and subsidiary-related matters during the reporting period [Explanation of Changes in Accounting Policies, Accounting Estimates, or Correction of Significant Accounting Errors Compared to Last Year's Financial Report](index=52&type=section&id=VI.%20Explanation%20of%20Changes%20in%20Accounting%20Policies%2C%20Accounting%20Estimates%2C%20or%20Correction%20of%20Significant%20Accounting%20Errors%20Compared%20to%20Last%20Year's%20Financial%20Report) Effective January 1, 2021, the company adopted the new lease accounting standard, recognizing right-of-use assets and lease liabilities for most leases, which impacted the consolidated balance sheet - The company adopted the new lease accounting standard effective January 1, 2021, making corresponding adjustments to its accounting policies[158](index=158&type=chunk)[435](index=435&type=chunk) Impact of Adopting New Lease Standard on Consolidated Balance Sheet Items as of January 1, 2021 | Item | Adjustment Amount (Yuan) | | :--- | :--- | | Right-of-use Assets | +28,899,058.27 | | Long-term Deferred Expenses | -410,319.00 | | Non-current Liabilities Due Within One Year | +4,737,114.11 | | Lease Liabilities | +23,751,625.16 | [Significant Related Party Transactions](index=55&type=section&id=XIV.%20Significant%20Related%20Party%20Transactions) The company completed a significant related party transaction by transferring 100% equity of its wholly-owned subsidiary, Shantou Jiasheng Printing Co., Ltd., for **28.2913 million yuan**, generating a **19.366 million yuan** investment gain - The company transferred 100% equity of its wholly-owned subsidiary, Shantou Jiasheng Printing Co., Ltd., to related party Ms. Cai Xu (spouse of former Vice Chairman Mr. Xu Shaobi) for **28.2913 million yuan**[173](index=173&type=chunk) - This equity transfer transaction generated an investment gain of **19.366 million yuan** for the company[173](index=173&type=chunk) [Significant Contracts and Their Performance](index=57&type=section&id=XV.%20Significant%20Contracts%20and%20Their%20Performance) The company signed a major acquisition contract to acquire 100% equity of Kashi Aoshu Network Technology Co., Ltd. for **219 million yuan**, but the resolution for this acquisition has been postponed - On October 29, 2021, the company signed a contract to acquire 100% equity of Kashi Aoshu Network Technology Co., Ltd. for **219 million yuan**[189](index=189&type=chunk) - This acquisition requires approval from the company's general meeting of shareholders, but the resolution has been postponed[189](index=189&type=chunk)[195](index=195&type=chunk) [Significant Matters Concerning Company's Subsidiaries](index=60&type=section&id=XVII.%20Significant%20Matters%20Concerning%20Company's%20Subsidiaries) During the reporting period, the company established a new wholly-owned subsidiary, Hainan Xingxuan Shikong Network Technology Co., Ltd., and divested Shantou Jiasheng Printing Co., Ltd - The company established a new wholly-owned subsidiary, Hainan Xingxuan Shikong Network Technology Co., Ltd., with a registered capital of **10 million yuan**[196](index=196&type=chunk) - The company transferred 100% equity of its wholly-owned subsidiary, Shantou Jiasheng Printing Co., Ltd., which is no longer included in the consolidated financial statements[197](index=197&type=chunk) [Changes in Shares and Shareholder Information](index=61&type=section&id=Item%20VII%20Changes%20in%20Shares%20and%20Shareholder%20Information) This section details the changes in the company's share structure, particularly the reduction in restricted shares, and provides information on its shareholders and actual controller [Changes in Shareholding](index=61&type=section&id=I.%20Changes%20in%20Shareholding) During the reporting period, the company's total share capital remained unchanged at 122,135,745 shares, but restricted shares significantly decreased from **44.00% to 1.55%** due to executive departures and annual unlocking Share Structure Changes | Share Type | Number of Shares Before Change (Shares) | Proportion | Number of Shares After Change (Shares) | Proportion | | :--- | :--- | :--- | :--- | :--- | | Restricted Shares | 53,738,375 | 44.00% | 1,889,250 | 1.55% | | Unrestricted Shares | 68,397,370 | 56.00% | 120,246,495 | 98.45% | | Total Shares | 122,135,745 | 100.00% | 122,135,745 | 100.00% | [Shareholders and Actual Controller Information](index=63&type=section&id=III.%20Shareholders%20and%20Actual%20Controller%20Information) As of year-end 2021, the company had 4,677 common shareholders, with Mr. Chen Qinfu remaining the controlling shareholder and actual controller despite a reduction in his shareholding - The controlling shareholder and actual controller is Chen Qinfu, holding **37.00%** of the shares at year-end[205](index=205&type=chunk)[207](index=207&type=chunk) - During the reporting period, controlling shareholder Chen Qinfu reduced his holdings by **15,064,500 shares**[205](index=205&type=chunk) - Liu Xiaowei became the second-largest shareholder, holding **15,064,500 shares**, accounting for **12.33%** of the total share capital[205](index=205&type=chunk) [Information on Preferred Shares](index=67&type=section&id=Item%20VIII%20Information%20on%20Preferred%20Shares) This section confirms that the company had no preferred shares during the reporting period [Preferred Shares](index=67&type=section&id=Preferred%20Shares) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[211](index=211&type=chunk) [Information on Bonds](index=68&type=section&id=Item%20IX%20Information%20on%20Bonds) This section confirms that the company had no bonds during the reporting period [Bonds](index=68&type=section&id=Bonds) The company had no bonds during the reporting period - The company had no bonds during the reporting period[214](index=214&type=chunk) [Financial Report](index=69&type=section&id=Item%20X%20Financial%20Report) This section presents the audited financial statements, including the audit report and detailed notes on consolidated financial statement items and changes in consolidation scope [Audit Report](index=69&type=section&id=I.%20Audit%20Report) Zhitong Certified Public Accountants (Special General Partnership) issued a standard unqualified audit opinion on the company's 2021 financial statements, highlighting key audit matters including revenue recognition, goodwill impairment, and expected credit losses for accounts receivable - The audit firm issued a **standard unqualified audit opinion**[216](index=216&type=chunk) - Key audit matters include: - **Revenue Recognition**: Due to revenue being a key performance indicator and the large volume of data in the online gaming business, inherent risks exist[218](index=218&type=chunk)[220](index=220&type=chunk) - **Goodwill Impairment Testing**: The acquisition of Hainan Huaduo and Hangzhou Leiyan resulted in **118 million yuan** in goodwill, and its impairment testing involves significant judgment[224](index=224&type=chunk) - **Determination of Expected Credit Losses for Accounts Receivable**: Given the significant amount of accounts receivable, determining their expected credit losses involves significant accounting estimates[227](index=227&type=chunk) [Notes to Consolidated Financial Statements](index=124&type=section&id=VII.%20Notes%20to%20Consolidated%20Financial%20Statements) The financial statement notes detail account balances and changes, including **230 million yuan** in accounts receivable (92.76% from gaming), a **321.31% increase in prepayments** for game revenue sharing, and **65.7 million yuan** in other non-current assets for an equity transfer prepayment - The year-end balance of accounts receivable was **230 million yuan**, with daily chemical business customers accounting for **7.24%** and online gaming business customers for **92.76%**[470](index=470&type=chunk) - Prepayments increased by **321.31%** year-on-year, primarily due to increased prepayments for game revenue sharing by subsidiaries[478](index=478&type=chunk) - The original book value of goodwill was **117.6575 million yuan**, formed from the acquisition of Hangzhou Leiyan (**91.5709 million yuan**) and Hainan Huaduo (**26.0866 million yuan**); no goodwill impairment provision was made this year after impairment testing[517](index=517&type=chunk)[520](index=520&type=chunk)[521](index=521&type=chunk) - The year-end balance of other non-current assets was **65.7 million yuan**, a significant increase from **2.1 million yuan** at the beginning of the period, primarily due to the prepayment for the equity transfer of Kashi Aoshu Network Technology Co., Ltd. as per contract[534](index=534&type=chunk) [Changes in Consolidation Scope](index=155&type=section&id=VIII.%20Changes%20in%20Consolidation%20Scope) During the reporting period, the company's consolidation scope changed due to the disposal of its wholly-owned subsidiary, Shantou Jiasheng Printing Co., Ltd., and the establishment of four new subsidiaries to expand its gaming business - The company disposed of its wholly-owned subsidiary, Shantou Jiasheng Printing Co., Ltd., for **28.2913 million yuan**, and it was no longer included in the consolidation scope as of December 31, 2021[609](index=609&type=chunk)[610](index=610&type=chunk) - During the reporting period, **4 new subsidiaries** were established, including Hainan Xingxuan Shikong Network Technology Co., Ltd., all of which were included in the consolidation scope[611](index=611&type=chunk)[612](index=612&type=chunk)