Financial Performance - Revenue for 2021 was RMB 273,604,000, a decrease of 0.5% from RMB 275,987,000 in 2020[9] - Gross profit for 2021 was RMB 99,031,000, resulting in a gross margin of 36.2%, compared to 39.2% in 2020[9] - Loss for the year attributable to owners of the Company was RMB 9,084,000, with a net loss ratio of 3.3%[9] - The total revenue for the Group for the year ended 31 December 2021 was approximately RMB273.6 million, a decrease of approximately 0.9% from RMB276.0 million in 2020[27][28] - The net loss for the Group for the year ended 31 December 2021 was approximately RMB9.1 million, compared to a net loss of approximately RMB4.0 million in 2020[29] - The Group's gross profit decreased to approximately RMB99.0 million, representing a decrease of approximately 8.4% compared to RMB108.1 million in 2020, with a gross profit margin decline from approximately 39.2% to 36.2%[105] - The Group recorded a loss of approximately RMB9.1 million for 2021, compared to a loss of approximately RMB4.0 million for 2020[108] Revenue Breakdown - Revenue from shampoo and hair-care products was RMB 232,166,000, down from RMB 249,230,000 in 2020[11] - Revenue from other household and personal care products increased to RMB 40,259,000 from RMB 24,868,000 in 2020, representing a growth of 62.0%[11] - The core brand, Bawang, generated approximately RMB260.4 million in revenue, accounting for approximately 95.2% of total revenue by product category in 2021[91] - Revenue from online sales was approximately RMB141.0 million, representing a decrease of approximately 8.2% from RMB153.5 million in 2020, while conventional sales increased by approximately 8.3%[90] Marketing and Brand Strategy - The Group plans to focus on expanding its product lines and enhancing market presence in the coming year[26] - The Group's marketing strategy included a collaboration with a puppetry artist, resulting in a series of animations and a cobranded anti-hair fall haircare gift-pack, which gained significant attention[42][46] - The marketing campaign attracted over 15 million views and media coverage from more than 25 news agencies in China[46] - The Group launched a giftbox in collaboration with Grain Mill, combining Bawang Black Sesame Shampoo and Eruptive Hair-grow Black Sesame Pills to enhance consumer recognition of product functionality[47] - The Group's marketing strategy included collaborations with popular social media platforms like Little Red Book, Weibo, B Station, and Tik Tok to promote anti-hair fall products[52] Operational Challenges - The company reported an operating loss of RMB 7,534,000 for 2021, compared to an operating loss of RMB 2,804,000 in 2020[9] - The cost of sales in 2021 amounted to approximately RMB174.6 million, an increase of approximately 4.0% from RMB167.9 million in 2020[102] - The percentage of revenue attributed to cost of sales increased from approximately 60.8% in 2020 to approximately 63.8% in 2021[102] - The Group recognized impairment losses of approximately RMB0.9 million for trade receivables for the year ended December 31, 2021, using the expected credit loss model[76][80] Future Outlook and Strategy - The Group plans to focus on building a management team with strong experience in both domestic and global HPC sectors to regain sales growth momentum and profitability[35][38] - The Group aims to strengthen its business model and positioning to acquire market shares from competitors while maintaining a multi-brand and multi-product strategy in the HPC sectors[35][38] - The company expects the Chinese and global economies to be unstable in 2022 and beyond, necessitating cautious business strategies[113] - The corporate theme for 2022 is "Continue our Growth at a Steady Pace"[114] Human Resources and Governance - The Group employed approximately 499 employees as of December 31, 2021, an increase from approximately 477 employees as of December 31, 2020, representing a growth of about 4.6%[165] - The Group's human resources policies are designed to maintain a stable workforce, emphasizing promising career prospects and competitive remuneration[171] - The Board of Directors comprised six members as of December 31, 2021, including the Chairman and the CEO, ensuring a diverse governance structure[176] - The Company has adopted a Model Code for Securities Transactions by Directors, with all Directors confirming compliance throughout the year under review[175] Corporate Social Responsibility - During the year, the Group participated in community welfare events, donating Bawang-branded products to COVID-19 affected areas and impoverished families, enhancing its corporate image[57] - The Group is committed to investing in human capital to retain a quality workforce and maintain good relationships with employees[160] Financial Position - The Group's cash, bank balances, and time deposits amounted to approximately RMB 113.3 million as of December 31, 2021, down from RMB 122.3 million in 2020[134][135] - Total assets increased to RMB 295.6 million in 2021 from RMB 264.6 million in 2020, maintaining a gearing ratio of 0%[136][137] - The Group's trade receivables as of December 31, 2021, were approximately RMB 20.0 million, a decrease of approximately 9.5% from RMB 22.1 million in 2020, attributed to a decline in overall sales through online and conventional channels[154]
霸王集团(01338) - 2021 - 年度财报