Financial Performance - The company's operating revenue for 2020 was ¥2,636,488,348.17, representing a 35.64% increase compared to ¥1,943,745,540.84 in 2019[13]. - The net profit attributable to shareholders for 2020 was ¥543,507,903.96, a 31.94% increase from ¥411,945,198.00 in 2019[13]. - The net cash flow from operating activities decreased by 16.29% to ¥431,026,329.20 in 2020 from ¥514,923,171.93 in 2019[13]. - The total assets at the end of 2020 were ¥1,601,869,244.94, up 47.80% from ¥1,083,837,433.09 at the end of 2019[13]. - The net assets attributable to shareholders increased by 58.54% to ¥1,199,004,473.80 at the end of 2020 from ¥756,296,569.84 at the end of 2019[13]. - The basic earnings per share for 2020 was ¥1.51, a 32.46% increase from ¥1.14 in 2019[13]. - The company reported a total of ¥34,231,996.35 in government subsidies for 2020, compared to ¥23,975,748.16 in 2019[18]. - The company experienced a decrease in the weighted average return on net assets to 56.57% in 2020 from 65.81% in 2019, a decline of 9.24%[13]. - The fourth quarter revenue reached ¥1,209,504,065.57, contributing significantly to the annual performance[15]. - The company reported a net profit of ¥328,237,129.76 in the fourth quarter, indicating strong year-end performance[15]. Dividend Distribution - The company plans to distribute a cash dividend of 4.5 RMB per 10 shares to all shareholders, based on a total of 423,600,000 shares[3]. - The cash dividend distribution plan complies with the company's articles of association and has been approved by the board of directors, pending shareholder meeting approval[124]. - The cash dividend for 2020 represents 18.55% of the net profit attributable to ordinary shareholders, which was 543,507,903.96 RMB[126]. - The company has maintained a consistent cash dividend policy over the past three years, with significant cash distributions in 2018, 2019, and 2020[126]. - The company’s total distributable profit for the year was 586,213,167.91 RMB, with cash dividends accounting for 100% of the total profit distribution[123]. Market Position and Strategy - The company has a focus on expanding its product offerings in the skincare and medical device sectors, including hyaluronic acid repair products[6]. - The company operates through various sales channels, including both online and offline sales, to enhance market reach[6]. - The company's main brand "Winona" focuses on gentle, professional skincare products targeting sensitive skin, leveraging natural plant active ingredients[20]. - The "Winona" brand maintained the top position in the domestic dermatological skincare market, increasing its market share by 2.5 percentage points compared to 2019[26]. - The company plans to enhance its product development capabilities and expand its brand matrix strategy to improve market position and brand influence[104]. - The company aims to strengthen marketing channels and increase brand promotion efforts to become a leading cosmetics enterprise[104]. - The company plans to expand into Southeast Asian markets as part of its international cooperation strategy, responding to the Belt and Road Initiative[109]. Research and Development - The report highlights the company's commitment to ensuring the accuracy and completeness of financial reports, as stated by the management team[2]. - The company is actively involved in research and development of new products and technologies to stay competitive in the market[6]. - The company has a robust R&D team of over 100 members and has obtained 15 invention patents, 17 utility model patents, and 18 design patents[31]. - The company plans to increase R&D investment to enhance its research capabilities, focusing on the safety and efficacy of unique Yunnan plants for skincare, aiming to meet consumer demands with innovative technologies[106]. - Research and development expenses totaled ¥68,851,683.45 in 2020, accounting for 2.61% of operating revenue[87]. Sales and Marketing - The company achieved a revenue of CNY 2,636.49 million, a year-on-year increase of 35.64%[35]. - Online sales through self-operated channels amounted to ¥165,826.70 million, representing 63.28% of main business revenue, with a 54.28% increase from ¥107,484.12 million in 2019[41]. - The company’s self-operated online store sales accounted for approximately 95.42% of total online self-operated channel sales revenue[47]. - The company actively engaged in brand marketing, achieving significant results during major sales events like "Double 11," ranking ninth in Tmall beauty sales and first among domestic brands[36]. - The company’s sales expenses increased significantly due to heightened marketing efforts and investments in brand promotion across various channels[35]. Operational Efficiency - The company implemented an "end-to-end" supply chain management system, significantly improving supply chain decision-making efficiency and quality[38]. - The company’s inventory turnover efficiency improved significantly compared to the previous year, thanks to precise supply chain planning and execution[38]. - The company has established several wholly-owned and controlled subsidiaries to support its business operations across different regions[5]. - The company continues to invest in the construction of a new central factory base during the reporting period[27]. - The company has established local warehouses in Kunming and Shanghai and collaborated with logistics companies to enhance supply chain management and improve customer experience[55]. Corporate Governance - The company has a diverse board with members holding expertise in various fields, including law, finance, and pharmaceuticals[197]. - The average age of the board members is approximately 50 years, indicating a mix of experience and youthful leadership[195]. - The company has maintained a stable management team with no changes in the positions of directors and supervisors during the reporting period[194]. - The financial director and board secretary, Wang Long, has been with the company since 2019, contributing to financial oversight[193]. - The company has committed to strict management of raised funds to ensure effective utilization, focusing on projects closely related to its main business[149]. Social Responsibility and Sustainability - The company emphasizes social responsibility and aims to create value for society, shareholders, consumers, and employees[168]. - The company donated a total of nearly 8 million RMB in medical supplies and cash to various locations during the COVID-19 pandemic, including 2.41 million RMB in medical supplies and 1 million RMB in cash[172]. - The company has established a green supply chain management concept, focusing on environmental protection, pollution prevention, and energy conservation[172]. - The company has implemented a comprehensive approach to sustainable development, integrating environmental protection into its operational strategies[174]. - The company has not reported any environmental pollution incidents or legal penalties related to environmental protection during the reporting period[173].