味知香(605089) - 2021 Q4 - 年度财报

Company Profile and Key Financial Indicators Company Information This section outlines the company's fundamental corporate details, including its official name, legal representative, contact information, and disclosure channels - The company's full name is "Suzhou Weizhixiang Food Co., Ltd.", abbreviated as "Weizhixiang", with Xia Jing as the legal representative[13] Key Accounting Data and Financial Indicators for the Past Three Years In 2021, the company reported 765 million yuan in operating revenue and 133 million yuan in net profit, with total assets and net assets significantly increasing due to its IPO, though per-share metrics declined due to share dilution Key Accounting Data for the Past Three Years (Unit: Yuan) | Key Accounting Data | 2021 (Yuan) | 2020 (Yuan) | YoY Change (%) | 2019 (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 764,646,362.88 | 622,468,529.81 | 22.84 | 542,424,535.17 | | Net Profit Attributable to Shareholders | 132,635,699.91 | 125,052,675.49 | 6.06 | 86,243,277.50 | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | 122,410,194.44 | 124,102,029.38 | -1.36 | 85,978,441.62 | | Net Cash Flow from Operating Activities | 128,286,065.00 | 134,802,572.82 | -4.83 | 72,830,612.07 | | Total Assets | 1,224,509,501.20 | 426,958,478.69 | 186.80 | 303,621,691.96 | | Net Assets Attributable to Shareholders | 1,170,585,367.62 | 391,332,310.21 | 199.13 | 266,279,634.72 | Key Financial Indicators for the Past Three Years | Key Financial Indicators | 2021 | 2020 | YoY Change (%) | 2019 | | :--- | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/Share) | 1.45 | 1.67 | -13.17 | 1.15 | | Weighted Average Return on Net Assets (%) | 28.98% | 38.03% | Decreased by 9.05 percentage points | 38.65% | | Weighted Average Return on Net Assets (Excluding Non-Recurring Items) (%) | 26.75% | 37.74% | Decreased by 10.99 percentage points | 38.53% | Quarterly Financial Data for 2021 The company's 2021 quarterly revenue and profit were relatively balanced, with Q2 and Q3 as peak revenue periods, while Q4 operating cash flow was notably lower Key Quarterly Financial Data for 2021 (Unit: Yuan) | | Q1 (Jan-Mar) (Yuan) | Q2 (Apr-Jun) (Yuan) | Q3 (Jul-Sep) (Yuan) | Q4 (Oct-Dec) (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 163,047,903.26 | 202,288,442.42 | 205,058,643.83 | 194,251,373.37 | | Net Profit Attributable to Shareholders | 28,510,081.23 | 32,910,355.30 | 41,153,778.48 | 30,061,484.90 | | Net Cash Flow from Operating Activities | 33,521,260.98 | 40,949,149.96 | 44,046,727.55 | 9,768,926.51 | Non-Recurring Gains and Losses In 2021, the company's non-recurring gains and losses totaled 10.23 million yuan, primarily from government subsidies and fair value changes in financial assets Major Non-Recurring Gains and Losses Items in 2021 (Unit: Yuan) | Non-Recurring Gains and Losses Item | 2021 Amount (Yuan) | | :--- | :--- | | Government subsidies recognized in current profit and loss | 6,659,444.34 | | Investment and fair value change gains/losses from transactional financial assets | 8,570,179.06 | | Net non-operating income and expenses | -1,363,938.73 | | Total | 10,225,505.47 | Management Discussion and Analysis Discussion and Analysis of Operations In 2021, the company listed on the SSE, using IPO funds to expand capacity, enhance R&D, upgrade brands, and build e-commerce and IT teams for national expansion and digital transformation - Following its successful listing, the company accelerated new capacity construction to address current full-capacity sales bottlenecks[31] - The company strengthened brand building, comprehensively upgrading its C-end brand "Weizhixiang" and B-end brand "Zhuanyu" to support national market expansion[32] - To adapt to market changes, the company recruited new talent to establish e-commerce and information department teams, expanding online business and promoting corporate digital transformation, respectively[32] Industry Development In 2021, the pre-cooked dish industry grew in volume and quality, driven by consumption upgrades and the pandemic, but faces cost pressures and remains highly fragmented with low brand concentration - The pre-cooked dish industry emerged in the C-end due to the pandemic, "lazy economy," and fast-paced lifestyles, while continuously growing in the B-end due to demand for cost reduction and efficiency improvement[33][35] - The industry faces rising costs for raw materials, packaging, labor, and logistics, demanding higher supply chain management and operational efficiency from companies[35] - The current pre-cooked dish industry structure is generally fragmented, dominated by regional enterprises, with low market concentration and weak brand power[35] Company Business Overview The company specializes in R&D, production, and sales of over 300 pre-cooked dish categories under "Weizhixiang" (C-end) and "Zhuanyu" (B-end) brands, utilizing an independent production model and primarily offline distribution with supplementary online sales - The company's core business is the R&D, production, and sales of pre-cooked dishes, with two core brands: "Weizhixiang" for individual consumers and "Zhuanyu" for B-end clients[36] - The company's procurement model is based on production plans, orders, and inventory, utilizing methods like futures purchasing to lock in prices and mitigate raw material price fluctuations[36][37] - The sales model is primarily offline distribution, supplemented by online sales, with offline channels including retail (franchise and distribution stores) for individual consumers and wholesale for catering businesses[37][38] Analysis of Core Competencies The company's core competencies include its leading brand reputation, extensive East China distribution network with 1,319 franchise stores and self-built cold chain, a diverse product line of over 300 items, and stringent quality control with multiple certifications - The company has established a mature offline marketing network centered in East China, with 1,319 franchise stores and 572 cooperative distributors as of the end of the reporting period, and has begun expanding online channels like Tmall and JD.com[39] - The company has built a comprehensive self-owned cold chain logistics and distribution system, with its own fleet exclusively serving internal needs, ensuring product delivery efficiency and freshness[40] - The company is committed to product innovation, having developed over 300 product varieties covering various sub-categories such as main courses, hot pot, and Western-style steaks[41] - The company has established a stringent full-process quality control system, undergoing nearly 20 inspection procedures from raw material procurement to finished product warehousing, and has obtained multiple management system certifications including ISO9001 and ISO22000[41][42] Analysis of Key Operating Performance In 2021, the company's operating revenue grew by 22.84% to 765 million yuan, driven by wholesale and online channels, but rising costs led to a 4.31 percentage point decline in gross margin, with net profit attributable to shareholders increasing by 6.06% Major Changes in 2021 Income Statement and Cash Flow Statement Accounts | Account | Current Period (Yuan) | Prior Period (Yuan) | Change (%) | Explanation of Change | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 764,646,362.88 | 622,468,529.81 | 22.84 | Primarily due to significant growth in wholesale channel business and expansion into online channels | | Operating Cost | 572,681,258.86 | 439,061,355.12 | 30.43 | Primarily due to high fulfillment costs for newly launched e-commerce business and logistics expenses reclassified as operating costs this year | | Administrative Expenses | 34,359,686.65 | 20,009,393.83 | 71.72 | Primarily due to increased employee count and expenses incurred during the company's IPO period | | Financial Expenses | -14,256,250.14 | -2,108,235.90 | -576.22 | Primarily due to maturity of prior period time deposits and increased interest income from higher deposits | | Net Cash Flow from Investing Activities | -540,296,114.94 | -15,575,030.68 | -3,368.99 | Primarily due to increased bank wealth management investments and payments for new factory construction | | Net Cash Flow from Financing Activities | 644,592,386.25 | - | - | Primarily due to proceeds from the company's initial public offering | Analysis of Main Business In 2021, main business revenue grew by 22.67% to 754 million yuan, but gross margin declined by 4.31 percentage points, with beef products, East China, and franchise/wholesale channels being key contributors, while the new e-commerce channel had low profitability Main Business by Sales Model (Unit: Yuan) | Sales Model | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin (%) | YoY Operating Revenue Change (%) | YoY Gross Margin Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Franchise Stores | 346,788,018.33 | 256,599,652.63 | 26.01 | 8.37 | Decreased by 3.94 percentage points | | Distribution Stores | 130,257,833.74 | 97,225,662.92 | 25.36 | 24.30 | Decreased by 4.62 percentage points | | Wholesale Channels | 242,976,594.49 | 182,904,379.61 | 24.72 | 31.50 | Decreased by 3.27 percentage points | | E-commerce Channels | 15,215,931.16 | 14,768,122.17 | 2.94 | - | - | Main Business by Product (Unit: Yuan) | By Product | Operating Revenue (Yuan) | % of Main Business Revenue | Gross Margin (%) | YoY Gross Margin Change (%) | | :--- | :--- | :--- | :--- | :--- | | Beef Products | 355,168,491.60 | 47.10% | 26.93 | Decreased by 4.46 percentage points | | Poultry Products | 104,842,511.61 | 13.90% | 25.89 | Decreased by 7.00 percentage points | | Aquatic Fish Products | 98,472,775.45 | 13.06% | 24.06 | Decreased by 2.42 percentage points | | Aquatic Shrimp Products | 96,732,734.86 | 12.83% | 17.44 | Decreased by 1.31 percentage points | | Pork Products | 57,809,430.85 | 7.67% | 27.57 | Decreased by 4.16 percentage points | - The company's production and sales volumes were largely balanced, with 19,224.17 tons of pre-cooked dishes produced and 19,187.76 tons sold in 2021, representing year-on-year increases of 28.27% and 25.16% respectively[52] Cost Analysis In 2021, main business costs increased by 30.15% to 565 million yuan, primarily driven by direct materials (90.94% of total costs) and the reclassification of 20.45 million yuan in transportation expenses to operating costs under new accounting standards Main Business Cost Composition (Unit: Yuan) | Cost Component | Current Period Amount (Yuan) | % of Total Cost (Current Period) | Prior Period Amount (Yuan) | % of Total Cost (Prior Period) | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Direct Materials | 513,761,392.05 | 90.94 | 410,064,650.27 | 94.47 | 25.29 | | Direct Labor | 19,520,741.65 | 3.46 | 15,029,373.72 | 3.46 | 29.88 | | Manufacturing Overhead | 11,205,082.34 | 1.98 | 8,979,636.02 | 2.07 | 24.78 | | Transportation Costs | 20,452,875.42 | 3.62 | - | - | - | - According to new accounting revenue standards, transportation costs for 2021 were reclassified from selling expenses to operating costs[56] Major Customers and Suppliers The company maintains low customer and supplier concentration, with the top five customers accounting for 9.61% of sales and the top five suppliers for 33.54% of purchases in 2021, indicating no significant reliance on any single party - Sales to the top five customers totaled 73.5145 million yuan, accounting for 9.61% of total annual sales[57] - Purchases from the top five suppliers amounted to 183 million yuan, representing 33.54% of total annual purchases[59][62] R&D Investment In 2021, the company's R&D investment increased by 79.67% to 2.25 million yuan, representing 0.29% of operating revenue, with all R&D expenses fully expensed and a team of 7 individuals 2021 R&D Investment Overview | Item | Amount (Yuan) | | :--- | :--- | | Expensed R&D Investment for the Period | 2,250,035.23 | | Total R&D Investment | 2,250,035.23 | | Total R&D Investment as % of Operating Revenue | 0.29 | Cash Flow Analysis During the period, operating cash flow was 128 million yuan (down 4.83%), investing cash flow was -540 million yuan due to wealth management and new factory construction, and financing cash flow was 645 million yuan from IPO proceeds 2021 Cash Flow Overview (Unit: Million Yuan) | Item | 2021 (Million Yuan) | 2020 (Million Yuan) | Explanation of Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 128.2861 | 134.8026 | Increased payments to suppliers due to strategic raw material stocking and rising costs | | Net Cash Flow from Investing Activities | -540.2961 | -15.5750 | Increased bank wealth management investments and payments for new factory construction | | Net Cash Flow from Financing Activities | 644.5924 | 0 | Proceeds from initial public offering | Asset and Liability Analysis As of 2021 year-end, total assets surged by 186.80% to 1.225 billion yuan, driven by IPO proceeds and new factory construction, while total liabilities were 53.92 million yuan, resulting in a robust financial structure with an asset-liability ratio of 4.40% Major Balance Sheet Items Change Overview (Unit: Yuan) | Item Name | Current Period End (Yuan) | Prior Period End (Yuan) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 563,104,999.53 | 330,272,663.22 | 70.50 | Primarily due to proceeds from the company's initial public offering | | Transactional Financial Assets | 460,918,332.11 | 0 | - | Primarily due to the company using raised funds and own funds to purchase bank wealth management products | | Inventories | 53,026,887.84 | 36,333,682.30 | 45.94 | Primarily due to stocking for year-end sales peak | | Construction in Progress | 72,885,898.98 | 11,832,775.47 | 515.97 | Primarily due to the company's new factory construction | | Other Non-Current Assets | 18,444,210.58 | 216,527.24 | 8,418.19 | Primarily due to the company's prepaid amounts for new factory construction | Analysis of Investment Status During the period, the company's investments focused on a new 286 million yuan production plant (61.05 million yuan invested this period) and cash management, with 461 million yuan in bank wealth management products at year-end - The company's significant non-equity investment is a new production plant project, with a planned total investment of 286 million yuan, and 61.0531 million yuan invested during the reporting period[77] - The company's financial assets measured at fair value had an ending balance of 461 million yuan, entirely consisting of bank wealth management products, with a current period impact on profit of 6.4276 million yuan[28][79] Future Development Outlook The company anticipates significant growth in the early-stage pre-cooked dish industry, driven by industrialization and consumption trends, and plans to consolidate its position through a dual B/C-end strategy, focusing on R&D, product diversification, supply chain optimization, and national market expansion - The company's core development strategy involves simultaneous B-end and C-end efforts, continuous R&D investment, enriching the product matrix, enhancing supply chain efficiency, and comprehensively improving channel capabilities[87] - Future operational plans include: 1. Expanding network layout to increase market share; 2. Optimizing the supply chain to lay the foundation for national expansion; 3. Strengthening new product R&D to open new profit growth points; 4. Advancing both B-end and C-end to enhance brand influence; 5. Continuously building organizational capabilities and talent reserves[88][89][90] - The company identified key future risks including food safety, raw material price fluctuations, animal epidemics or natural disasters, and distributor management[91][92] Corporate Governance Overview of Corporate Governance During the reporting period, the company maintained a sound corporate governance structure, ensuring effective internal controls and investor interests through the balanced operation of its shareholder, board, and supervisory bodies, while strictly adhering to information disclosure regulations - The company's corporate governance structure complies with regulations such as the Company Law and Securities Law, with the General Meeting of Shareholders, Board of Directors, and Supervisory Board each performing their duties in a standardized manner[95] - During the reporting period, the company held 1 annual general meeting, 2 extraordinary general meetings, 8 board meetings, and 8 supervisory board meetings[95][96] - The company listed in April 2021, and its Board of Directors highly prioritizes information disclosure, maintaining good communication with investors through various channels[97] Directors, Supervisors, and Senior Management This section details the appointments, unchanged shareholdings, and remuneration of the company's directors, supervisors, and senior management, with Chairman Xia Jing holding 54.75% of shares and the total pre-tax remuneration for all executives being 4.4458 million yuan Shareholding and Remuneration of Selected Directors, Supervisors, and Senior Management | Name | Position | Shares Held at Year-End | Total Pre-Tax Remuneration from Company During Reporting Period (Million Yuan) | | :--- | :--- | :--- | :--- | | Xia Jing | Chairman, General Manager | 54,750,000 | 1.0309 | | Xie Linhua | Director, CFO, Board Secretary | 0 | 0.8158 | | Zhang Songbai | Director | 3,750,000 | 0 | | Xia Jiulin | Deputy General Manager | 7,500,000 | 0.4081 | | Total | / | 66,000,000 | 4.4458 | Employee Information As of the reporting period, the company employed 475 staff, predominantly production personnel (282) and those with junior high education or below (230), supported by comprehensive remuneration and training programs, including collaborations for further education Employee Professional Composition | Professional Category | Number of Employees | | :--- | :--- | | Production Personnel | 282 | | Sales Personnel | 90 | | Technical Personnel | 40 | | Financial Personnel | 6 | | Administrative Personnel | 57 | | Total | 475 | - The company has established comprehensive remuneration, welfare, performance appraisal, and promotion incentive systems, providing multi-level training covering corporate culture, professional ethics, and job functions for employees[123][124] Profit Distribution Plan The Board approved a 2021 profit distribution plan proposing a cash dividend of 1.00 yuan per share (tax inclusive) to all shareholders, totaling 100 million yuan, which aligns with the company's dividend policy and awaits shareholder approval - The 2021 profit distribution plan proposes a cash dividend of 1.00 yuan per share (tax inclusive), totaling 100 million yuan (tax inclusive) in cash dividends[6][129] - The company's cash dividend policy stipulates that the annual cash distribution amount shall not be less than 10% of the distributable profit for the year, with differentiated cash dividend ratios based on the company's development stage[127][128] Environmental and Social Responsibility Environmental Information The company is not a key pollutant-discharging unit, received no environmental penalties, holds ISO14001 certification, and effectively manages all production-related emissions and waste to comply with environmental standards - The company's production and operations comply with environmental requirements, with all exhaust gas, wastewater, solid waste, and noise emissions meeting standards, and no significant environmental violations during the reporting period[140] - The company implements specific treatment measures for various pollutants: oil fume exhaust gas is processed by purification facilities; production and domestic wastewater are pre-treated on-site before discharge into municipal pipelines; solid waste is sorted, with recyclables sold and non-recyclables transported by specialized units[139] Significant Matters Fulfillment of Commitments All IPO commitments by the company and related parties, including share lock-up, price stabilization, profit distribution, and non-competition, were strictly and timely fulfilled during the reporting period - Controlling shareholder and actual controller Xia Jing committed not to reduce his shareholding within 36 months from the listing date, with conditions for extended lock-up periods and a reduction price no lower than the offering price[146] - The company has formulated a share price stabilization plan, which will sequentially trigger company buybacks, controlling shareholder increases, and director/supervisor/senior management increases if the share price falls below net assets per share for 20 consecutive trading days[164][165] - The company, controlling shareholder, and directors/supervisors/senior management all committed to taking measures such as share buybacks and compensating investor losses in accordance with the law if there are material information disclosure violations in the prospectus[174][175][176][178] Appointment of Accounting Firm The company re-appointed Grant Thornton China (Special General Partnership) as its auditor for 2021, with an audit fee of 0.8 million yuan, marking their fourth year of service - The company re-appointed Grant Thornton China (Special General Partnership) as its auditor for 2021, with an audit fee of 0.8 million yuan[191] Significant Related-Party Transactions The company reported no significant related-party transactions during the period, with only minor sales of goods to key management personnel totaling 13,978.72 yuan, representing a negligible 0.07% of similar transactions, conducted at fair prices - Total daily operating transactions with related parties during the reporting period amounted to only 13,978.72 yuan, primarily involving product sales to company supervisors and senior management, with negligible transaction amounts and fair pricing[193][195] Major Contracts and Their Performance During the period, the company signed major contracts for its new production base, including a 128 million yuan construction contract and equipment purchases, while also engaging in 830 million yuan of entrusted wealth management using idle funds - The company signed multiple major contracts related to the construction of its new production base, including a general construction contract totaling 128 million yuan, with the project currently under construction[205] Overall Entrusted Wealth Management Overview (Unit: Yuan) | Type | Source of Funds | Amount Incurred (Yuan) | Unmatured Balance (Yuan) | | :--- | :--- | :--- | :--- | | Bank Structured Deposits | Idle Raised Funds | 390,000,000 | 200,000,000 | | Bank Wealth Management | Own Funds | 440,000,000 | 335,000,000 | Share Changes and Shareholder Information Changes in Share Capital Following its April 2021 IPO of 25 million shares, the company's total share capital increased from 75 million to 100 million shares, comprising 75% restricted and 25% unrestricted shares - Due to the initial public offering, the company's total share capital increased from 75 million shares to 100 million shares[211] Share Capital Change Table (Unit: Shares) | | Before This Change | After This Change | | :--- | :--- | :--- | | | Quantity (Shares) | Proportion (%) | Quantity (Shares) | Proportion (%) | | I. Restricted Shares | 75,000,000 | 100 | 75,000,000 | 75 | | II. Unrestricted Tradable Shares | 0 | 0 | 25,000,000 | 25 | | III. Total Shares | 75,000,000 | 100 | 100,000,000 | 100 | Major Shareholder Information As of the reporting period, the company had 21,305 shareholders, with a highly concentrated equity structure where controlling shareholder Xia Jing held 54.75% and related parties collectively held 18.75% of shares Top Five Shareholders' Shareholding | Shareholder Name | Shares Held at Period End (Shares) | Proportion (%) | Restricted Shares Held (Shares) | | :--- | :--- | :--- | :--- | | Xia Jing | 54,750,000 | 54.75 | 54,750,000 | | Xia Jiulin | 7,500,000 | 7.50 | 7,500,000 | | Suzhou Jinhua Sheng Management Consulting Enterprise (Limited Partnership) | 7,500,000 | 7.50 | 7,500,000 | | Zhang Songbai | 3,750,000 | 3.75 | 3,750,000 | | Chen Hong | 1,500,000 | 1.50 | 1,500,000 | - Shareholders Xia Jing and Xia Jiulin are brothers; Zhang Songbai is a cousin to Xia Jing and Xia Jiulin; shareholder Jinhua Sheng is the company's employee stock ownership platform, controlled by Xia Jing[218][220] Controlling Shareholder and Actual Controller Mr. Xia Jing serves as both the controlling shareholder and actual controller, directly holding 54.75% of shares and indirectly controlling additional shares through an employee stock ownership platform, with no changes during the reporting period - The company's controlling shareholder and actual controller is Mr. Xia Jing, whose primary positions are Chairman and General Manager of the company[221][222] Financial Report Audit Report Grant Thornton China issued a standard unqualified audit opinion on the 2021 financial statements, with "Revenue Recognition" identified as a key audit matter due to its significance and inherent risk - The auditing firm, Grant Thornton China (Special General Partnership), issued a standard unqualified audit opinion[5][227] - The key audit matter is Revenue Recognition, with audit procedures including internal control testing, sample examination, analytical review, confirmations, and cut-off testing[229][230] Financial Statements This section presents the company's 2021 financial statements, showing rapid asset expansion and continued profitability post-IPO, despite diluted EPS, indicating a healthy financial position with strong cash flow Balance Sheet Summary (December 31, 2021) | Item | December 31, 2021 (Yuan) | December 31, 2020 (Yuan) | | :--- | :--- | :--- | | Total Current Assets | 1,099,818,785.62 | 391,022,105.79 | | Total Non-Current Assets | 124,690,715.58 | 35,936,372.90 | | Total Assets | 1,224,509,501.20 | 426,958,478.69 | | Total Liabilities | 53,924,133.58 | 35,626,168.48 | | Total Owners' Equity | 1,170,585,367.62 | 391,332,310.21 | Income Statement Summary (2021) | Item | 2021 (Yuan) | 2020 (Yuan) | | :--- | :--- | :--- | | I. Operating Revenue | 764,646,362.88 | 622,468,529.81 | | II. Operating Profit | 141,083,727.33 | 132,439,958.75 | | III. Total Profit | 145,709,137.85 | 131,054,659.41 | | IV. Net Profit | 132,635,699.91 | 125,052,675.49 | Cash Flow Statement Summary (2021) | Item | 2021 (Yuan) | 2020 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 128,286,065.00 | 134,802,572.82 | | Net Cash Flow from Investing Activities | -540,296,114.94 | -15,575,030.68 | | Net Cash Flow from Financing Activities | 644,592,386.25 | - | | Net Increase in Cash and Cash Equivalents | 232,582,336.31 | 119,227,542.14 | Significant Accounting Policies and Estimates The company's financial statements, prepared under enterprise accounting standards on a going concern basis, detail key policies for financial instruments, inventories, fixed assets, and revenue recognition, with the adoption of new lease standards from January 1, 2021 - The company adopted the Ministry of Finance's revised "Enterprise Accounting Standard No. 21 – Leases" from January 1, 2021, and made corresponding changes to its accounting policies[308] - Revenue recognition policy: The company primarily sells pre-cooked dishes, which are performance obligations satisfied at a point in time, with revenue recognized when the customer obtains control of the related goods[296][297] - Financial instrument impairment: For receivables, the company consistently measures loss provisions at an amount equal to the expected credit losses over the entire lifetime[273] Taxation The company's primary taxes are VAT (6%, 9%, 13%) and CIT (25%), with its pre-cooked dish business qualifying for corporate income tax exemption/reduction as primary processing of agricultural products - The company benefits from corporate income tax exemption/reduction policies for primary processing of agricultural products[310]