Financial Performance - Besunyen Holdings has sold over 5.585 billion bags of its three tea products, generating total sales exceeding RMB 7.494 billion as of December 31, 2021[3]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion in 2021, representing a growth of 15% compared to the previous year[79]. - In 2021, the company's revenue decreased by 14.81% to RMB 1,101.15 million from RMB 1,292.71 million in 2020[41]. - The revenue from weight loss products fell by 37.18% to RMB 381.47 million, down from RMB 607.31 million in 2020[42]. - The revenue from other products and medicines increased by 87.81% to RMB 375.79 million, compared to RMB 200.14 million in 2020[42]. - The company's gross profit for 2021 was RMB 698.55 million, down from RMB 913.33 million in 2020[41]. - The net loss for the year was RMB 113.99 million, compared to a profit of RMB 130.86 million in 2020[41]. - The company reported a basic loss per share of RMB 9.13 in 2021, compared to earnings of RMB 2.85 per share in 2020[41]. Product Development and Market Strategy - The company has expanded its product offerings to include OTC weight loss products, specifically the Besunyen Orlistat capsules, which have received positive consumer feedback since their launch[3]. - The company aims to achieve a full industry chain layout covering pharmaceuticals, health foods, medical devices, and general foods[3]. - The company is actively developing new products tailored to current consumer demands to drive future revenue growth[25]. - The company has focused on a dual strategy of "one vertical and two horizontals" to enhance its competitive position in the health and wellness industry[24]. - The company plans to continue focusing on weight management and gastrointestinal health while launching innovative products[40]. - The company has expanded its sales channels to include short video platforms like Kuaishou and Douyin, aiming to reach a broader audience[25]. - The company launched 12 pharmaceutical products, 11 health foods, and 62 regular food items in 2021, expanding its product structure[30]. Acquisitions and Partnerships - Besunyen acquired Henan Xueyinghua Pharmaceutical Co., enhancing its capabilities in pharmaceutical R&D and production, thus establishing a comprehensive layout in the pharmaceutical sector[3]. - The acquisition of Xue Ying Hua was completed, leading to upgrades in production, quality, and safety management systems, with the production license obtained in November 2021[33]. - The company completed the acquisition of 100% equity in Xueyinghua for RMB 31.99 million on April 21, 2021[62]. - The new retail division established a strategic partnership with Kuaishou, enhancing short video and live streaming marketing, which improved customer value and sales performance[28]. Sales and Distribution - The company operates through 87 distributors and 142 sub-distributors, covering nearly 500,000 retail outlets across 31 provinces in China, facilitating robust offline sales[6]. - Online sales are conducted through 122 stores across 35 e-commerce platforms, allowing for rapid market entry of new products[6]. - The company's market share for its weight loss product, Biyuan Brand Changqing Tea, was approximately 22.74% in 2021, an increase of 0.36 percentage points year-on-year[25]. Financial Management and Expenses - Total sales and marketing expenses decreased from RMB 661.5 million in 2020 to RMB 521.8 million in 2021, representing 47.4% of revenue[46]. - Advertising expenses decreased by RMB 29.8 million, while employee benefits increased by RMB 18.7 million due to an increase in sales personnel[48]. - Administrative expenses rose by 29.76% from RMB 134.4 million in 2020 to RMB 174.4 million in 2021, mainly due to increased employee benefits[50]. - Research and development costs were RMB 93.1 million in 2021, slightly down from RMB 93.8 million in 2020, representing 8.5% of revenue[51]. Employee Management and Training - The company had 1,626 employees as of December 31, 2021, a decrease from 1,799 employees as of December 31, 2020[71]. - Employee costs, including director remuneration, amounted to RMB 291.9 million in 2021, up from RMB 226.9 million in 2020, reflecting a significant increase[71]. - The percentage of trained employees as of December 31, 2021, was 78.00% for junior staff, 15.50% for middle management, and 6.50% for senior management[142]. - Average training hours for employees were 120 hours for junior staff, 98 hours for middle management, and 66 hours for senior management[143]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the importance of ESG initiatives, committing to reduce carbon emissions by 20% over the next five years[86]. - The company has implemented a top-down management approach for environmental, social, and governance (ESG) strategies, with the board responsible for assessing ESG risks and opportunities[90]. - Key ESG issues identified include air pollutant and greenhouse gas emissions management, supply chain management, business strategy and performance, product quality testing, and employee treatment[101]. - The company has committed to transparency in its ESG reporting, ensuring that all critical issues are reported in accordance with ESG guidelines[95]. Risk Management - The board is responsible for assessing the nature and extent of risks acceptable to achieve strategic objectives and ensuring effective risk management systems are in place[193]. - The company continues to optimize its risk management and internal control systems to adapt to the changing business environment and risks faced[194]. - The audit committee conducts regular assessments of major business risks and the effectiveness of the overall internal control system[197]. - The risk management process includes five steps: risk system organization, risk identification, risk assessment, risk handling, and reporting and control[199]. Community Engagement and Social Responsibility - The company donated over RMB 2.9 million to communities affected by flooding in Zhengzhou for disaster relief and reconstruction efforts[164]. - The company has established a professional customer service center and a consumer consultation hotline to manage complaints effectively[154]. - The company has not experienced any significant complaints or legal actions related to product quality and services during the reporting period[155].
碧生源(00926) - 2021 - 年度财报