Financial Performance - In 2021, the company's revenue increased by 11.9% year-on-year to RMB 1,610.3 million, while net profit turned from a loss of RMB 14.5 million in 2020 to a profit of RMB 86.5 million[35]. - The company achieved a profit before tax of approximately RMB 113.7 million in 2021, a significant turnaround from a loss of RMB 53.1 million in 2020[67]. - The group recorded a profit of approximately RMB 86.5 million for the year ended December 31, 2021, compared to a loss of approximately RMB 14.5 million for the year ended December 31, 2020, indicating a significant turnaround in performance[70]. - Gross profit rose to approximately RMB 1,138.4 million in 2021, up from RMB 1,006.6 million in 2020, with a gross margin improvement from 70% to 70.7%[58]. - The company recorded a net reversal of financial asset impairment of approximately RMB 3.5 million in 2021, compared to a loss of RMB 9.6 million in 2020[64]. - The net cash flow from operating activities for 2021 was RMB 130.8 million, up from RMB 86.9 million in 2020, reflecting improved operational efficiency[79]. - As of December 31, 2021, the group's cash and cash equivalents increased by approximately 14.5% to RMB 646 million from RMB 564.2 million as of December 31, 2020[78]. - The company has established a comprehensive financial accounting system to ensure compliance with various performance measurement indicators[164]. - The company’s financial performance and position as of December 31, 2021, are detailed in the annual report, specifically in the financial statements[189]. Revenue Channels - Online channel revenue accounted for 36.5% of total revenue, an increase of 7.8 percentage points compared to 2020, while offline revenue decreased to 63.5% from 71.3% in the previous year[36]. - The e-commerce channel achieved revenue of RMB 587.4 million in 2021, representing a growth of 42.1% year-on-year[38]. - Sales from social e-commerce channels, including Douyin and Kuaishou, reached approximately RMB 130 million, showcasing the company's successful adaptation to emerging platforms[39]. - Offline channel sales accounted for 63.5% of total revenue in 2021, down from 71.3% in 2020, while online channel sales increased to 36.5% from 28.7%[56]. Strategic Initiatives - The company plans to continue focusing on natural, healthy, and additive-free food products, while expanding e-commerce and diversifying sales channels[31]. - The company aims to deepen its multi-brand strategy to explore potential single products further[31]. - The strategic focus for 2022 includes strengthening core product categories, expanding channels, and exploring new product opportunities[52]. - The company plans to enhance its online presence and capture new customer segments through social e-commerce platforms[56]. - The company is investing heavily in R&D, with a budget increase of 15% aimed at developing healthier snack options and sustainable packaging solutions[92]. - Future outlook includes a projected revenue growth of 10% for 2022, supported by new product launches and market expansion initiatives[92]. Brand Development - The company maintained its position as the top brand in the Tmall natural powder category for several consecutive years, benefiting from strong partnerships with e-commerce platforms[27]. - The brand's awareness and reputation have improved significantly during the year[26]. - The launch of the "Heizhi Yang" brand in the e-commerce channel aims to leverage the popularity of black foods, with products like "Walnut Sesame Black Bean Powder" and "Black Sesame Balls" planned for future expansion[48]. - The company aims to reshape the "Wugu Mofang" brand image, emphasizing "good ingredients, no additives, and professionalism" through diverse content marketing across social and e-commerce platforms[50]. - The brand ambassador, actress Guan Xiaotong, was appointed to enhance the brand's image and appeal to younger consumers[51]. Cost Management - Sales and distribution expenses decreased to approximately RMB 954.4 million in 2021 from RMB 967.2 million in 2020, attributed to reduced personnel costs and promotional activities[60]. - Administrative expenses slightly increased to approximately RMB 81.6 million in 2021 from RMB 81 million in 2020, mainly due to salary adjustments and increased R&D spending[63]. - Employee costs for the year ended December 31, 2021, totaled RMB 155.8 million, a decrease of approximately 7.5% from RMB 168.5 million in 2020, indicating cost management efforts[86]. Corporate Governance - The board of directors consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors[112]. - The company has established a high standard of corporate governance, adhering to the applicable provisions of the corporate governance code[107]. - Independent non-executive directors constitute at least one-third of the board, ensuring compliance with listing rules[116]. - The company provided training for directors on their duties and responsibilities, as well as updates on relevant laws and regulations[117]. - The board plans to hold four regular meetings annually, approximately once per quarter, with at least 14 days' notice given[123]. - The company has appropriate insurance arrangements for legal actions against directors[115]. - The board is responsible for overseeing the management of the group's business affairs and overall performance[111]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with clearly defined responsibilities[128]. Risk Management - The company emphasizes the importance of internal controls and risk management systems, ensuring management fulfills its responsibilities[131]. - The company has implemented a risk management system to identify, assess, and control operational risks associated with its business growth and expansion[197]. - The internal audit department evaluates the adequacy and effectiveness of the risk management and internal control systems, reporting findings to the board at least annually[163]. - The board believes that the risk management and internal control systems are adequate and effective, with annual reviews planned[165]. Environmental Compliance - The company has a dedicated team for environmental compliance and implements strict waste management procedures at its manufacturing base[195]. - The company aims to reduce its carbon footprint by 30% by 2025, aligning with global sustainability goals[92]. Shareholder Engagement - Shareholders can propose resolutions at general meetings, with voting results published on the company's and stock exchange's websites[170]. - Qualified shareholders can request the board to convene a special general meeting to present proposals[172]. - The company maintains a communication policy to ensure shareholders receive timely information, allowing them to participate actively in company affairs[181].
五谷磨房(01837) - 2021 - 年度财报