Financial Performance - Revenue decreased by approximately RMB 150.2 million or 18.8% to about RMB 646.9 million for the year ended December 31, 2020[10]. - Gross profit decreased by approximately RMB 122.9 million or 20.5% to about RMB 475.6 million for the year ended December 31, 2020[10]. - Profit attributable to equity holders decreased by approximately RMB 13.5 million or 8.1% to about RMB 154.1 million for the year ended December 31, 2020[10]. - The decrease in net profit was primarily due to reduced customer traffic in pharmacies and supermarkets caused by the pandemic[14]. - The group's revenue for the year ended December 31, 2020, was approximately RMB 646.9 million, a decrease of about RMB 150.2 million or 18.8% compared to RMB 797.1 million for the year ended December 31, 2019[60]. - Revenue from the sale of Jin Sang Zi throat lozenges (OTC) was approximately RMB 581.8 million, down RMB 139.4 million or 19.3% from RMB 721.2 million in the previous year, primarily due to reduced customer traffic caused by the COVID-19 pandemic[60]. - The group's gross profit decreased to approximately RMB 475.6 million, down RMB 122.9 million or 20.5% from RMB 598.5 million in the previous year, with a gross margin of 73.5% compared to 75.1% in 2019[65]. - Net profit decreased to RMB 154.1 million, down RMB 13.5 million or 8.1% from RMB 167.6 million in the previous year, mainly due to the decrease in revenue[73]. COVID-19 Impact - In 2020, the company faced challenges due to the COVID-19 pandemic, impacting offline sales channels[46]. - The COVID-19 pandemic impacted offline sales, leading to a decline in customer traffic in pharmacies and supermarkets[56]. - The company actively engaged in pandemic response efforts, utilizing resources for donations[46]. - The company donated over RMB 1.6 million in anti-epidemic materials during the COVID-19 pandemic[14]. Product Development and Market Strategy - A new pharmaceutical production and R&D base in Liuzhou, Guangxi, covering approximately 60,000 square meters, has been completed and is in trial production phase[15]. - The new automated production line is expected to enhance production efficiency and improve product quality and competitiveness[15]. - The company plans to continue expanding in the pharmaceutical and fast-moving consumer goods sectors in 2021[15]. - The company plans to continue optimizing its product system and enhancing organizational capabilities in 2021[47]. - The company plans to expand into new regional markets, including Qinghai, Jilin, and Inner Mongolia, while enhancing online sales channels[58]. - The company aims to strengthen its brand recognition and market presence through targeted advertising and collaboration with distributors[59]. - The company has successfully developed 31 new products since 1994, obtaining production licenses for these products[51]. Distribution and Sales - As of December 31, 2020, the distribution network consists of over 630 distributors covering all provinces, autonomous regions, and municipalities in China[54]. - The company has established an online flagship store on Tmall, offering six new products in the Golden Throat series, enhancing its distribution system[55]. - Revenue from the top five customers accounted for approximately 30.0% of total sales, with the largest customer contributing 8.9%[107]. - Procurement from the top five suppliers represented about 65.4% of total purchases, with the largest supplier accounting for 22.5%[107]. Corporate Governance - The company has established a solid framework for independent oversight through its independent non-executive directors[94]. - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors, ensuring compliance with relevant listing rules[170]. - The independent non-executive directors have confirmed their independence according to the Listing Rules, contributing valuable business experience and expertise to the board[170]. - The company has adopted high standards of corporate governance to protect shareholder interests and enhance corporate value and accountability[168]. - The company provides relevant training to directors to ensure they understand their responsibilities and comply with listing rules[173]. Financial Position and Capital Management - As of December 31, 2020, the group's current assets net value was approximately RMB 696.4 million, compared to RMB 677.0 million as of December 31, 2019, maintaining a current ratio of 2.5[74]. - Interest-bearing bank loans and other borrowings totaled approximately RMB 152.5 million, an increase of RMB 56.4 million from RMB 96.1 million as of December 31, 2019[75]. - As of December 31, 2020, the group's debt-to-equity ratio increased from approximately 8.3% in 2019 to about 12.5%[77]. - The company's distributable reserves as of December 31, 2020, were approximately RMB 712.3 million, an increase from RMB 668.5 million as of December 31, 2019[109]. Employee and Management - The total employee cost for the year ended December 31, 2020, was approximately RMB 742 million, compared to RMB 691 million in 2019, reflecting an increase of about 7.4%[79]. - The group employed a total of 938 full-time employees as of December 31, 2020, up from 903 employees in the previous year, indicating a growth of approximately 3.9%[79]. - The company reported a significant increase in sales management experience, with over 18 years accumulated by the General Manager, Mr. Zeng Yong[91]. - The company has a strong leadership team with extensive experience in the pharmaceutical industry, with executives like Mr. Huang Jianping and Mr. Zeng Kexiong each having over 20 years of experience[92]. Stock Options and Shareholder Matters - The group had no outstanding stock options granted, exercised, canceled, or expired since the adoption of the stock option plan on June 8, 2017[118]. - The stock option plan aims to reward participants for their contributions to the group's development and growth[119]. - The total number of shares that can be issued under the stock option plan is capped at 10% of the total issued shares as of the approval date, which amounts to 73,930,200 shares[124]. - The company’s management trust holds 7.97% of the issued share capital, with specific individuals having defined shareholdings[133]. - The family trust holds 453,025,800 shares, representing approximately 61.28% of the total issued shares[137]. Related Party Transactions - The company had a continuous related party transaction with Changbao, procuring raw materials amounting to RMB 3,754,000 for the year ended December 31, 2020, against an annual cap of RMB 15,016,000[147]. - The company confirmed compliance with the non-competition agreement by the controlling shareholders for the year ended December 31, 2020[142]. - The procurement framework agreement with Changbao for sugar substitutes has been renewed for the period from January 1, 2021, to December 31, 2023[154]. Audit and Compliance - The audit committee has reviewed the accounting principles and policies adopted by the group for the year ended December 31, 2020, ensuring compliance with applicable accounting standards[162]. - Ernst & Young has been appointed as the auditor for the year ended December 31, 2020, and has not been changed since the company's listing on July 15, 2015[164]. - The company has established an internal audit department to review its financial condition, operational status, risk management, compliance monitoring, and internal controls[199]. - The board has confirmed that there are no significant uncertainties that may cast doubt on the group's ability to continue as a going concern[196].
金嗓子(06896) - 2020 - 年度财报