Financial Performance - The company's revenue for the year was approximately RMB 476.4 million, a decrease of about 15.9% compared to the previous year[28]. - The net profit for the year was approximately RMB 35.2 million, down by about 12.9% year-on-year[28]. - The CMS business and OBM business experienced declines of 14.3% and 27.4% respectively due to external factors[28]. - The basic earnings per share were approximately RMB 0.07, compared to RMB 0.08 in the previous year[28]. - The total comprehensive income attributable to the owners of the company was approximately RMB 45.8 million, an increase from RMB 9.9 million in the previous year[29]. - The revenue from the CMS business for the reporting period was approximately RMB 430.2 million, a decrease of about 14.3% compared to RMB 502.7 million in 2020[31]. - The revenue from the OBM business for the reporting period was approximately RMB 46.2 million, a decrease of about 27.4% compared to RMB 63.6 million in 2020[32]. - The cost of sales for the reporting period was approximately RMB 347.8 million, a decrease of about 9.7% from RMB 385.3 million in 2020[33]. - The gross profit for the reporting period was approximately RMB 128.6 million, a decrease of about 29.0% compared to RMB 181.0 million in 2020, with a gross margin of 27.0%[35]. - The net profit for the reporting period was approximately RMB 35.2 million, a decrease of about 12.9% from RMB 40.4 million in 2020, with a net profit margin increasing from 7.1% to 7.4%[36]. - Other comprehensive income for the reporting period was approximately RMB 10.6 million, an increase of about 121.0% compared to a loss of RMB 50.4 million in 2020[37]. Market Strategy and Expansion - The company has actively expanded its domestic market and developed high value-added products to improve pricing power[23]. - The company has increased its e-commerce sales channels in response to market conditions[23]. - The company plans to closely monitor international market changes and adjust strategies accordingly for better performance[23]. - The company aims to strengthen its market share and enhance its CMS and OBM businesses by launching high-quality products that meet market demand[74]. - The company will expand its product line through the development of medicinal and edible aerosol products and cosmetics by its subsidiary, Guoyao Jingyue Aerosol Co., Ltd.[74]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[155]. - A strategic acquisition of a local competitor is under consideration, which could enhance the company's production capabilities and market reach[155]. Corporate Governance - The board of directors emphasizes the importance of effective leadership and monitoring for the company's transparent and accountable operations[77]. - The company deviates from the corporate governance code by having the same individual serve as both chairman and CEO, which the board believes provides stable leadership necessary for swift business decisions[78]. - The board consists of three executive directors and three independent non-executive directors, ensuring compliance with listing rules regarding board composition[84]. - Independent non-executive directors possess extensive professional knowledge in accounting, finance, law, and business, contributing to independent opinions and judgments in board discussions[84]. - The company has adopted a "Director Nomination Procedure" to ensure a transparent process for evaluating and selecting board candidates[90]. - The board is responsible for comprehensive business management and strategy development, as well as overseeing financial performance[88]. - The company is committed to long-term success and safeguarding the interests of shareholders and stakeholders through effective corporate governance[82]. - All directors are subject to re-election at least every three years, ensuring accountability and governance standards[90]. - The board will continue to review and monitor corporate governance practices to maintain high standards[78]. - The company recognizes the need for a balance of skills and experience on the board to support effective leadership and business development[87]. - The company has established a board diversity policy, considering factors such as gender, age, cultural background, and professional experience to achieve diversity among board members[103]. - The board held five meetings during the reporting period, exceeding the minimum requirement of four meetings per year[106]. - The audit committee, consisting of three independent non-executive directors, is responsible for reviewing the company's financial information and overseeing the financial reporting system[108]. - The company has adopted a standard code of conduct for securities trading, ensuring all directors comply with the regulations during the reporting period[99]. - All newly appointed board members are required to undergo orientation training to understand the company's operations and their responsibilities as directors[100]. - The nomination committee reviews the director nomination process annually to ensure its ongoing effectiveness[94]. - The company has a compliance advisor to assist the board in fulfilling its corporate governance responsibilities[102]. - The chairman and CEO roles are held by the same individual to provide stable market leadership and facilitate quick decision-making[95]. - The company emphasizes continuous professional development for all directors to enhance their knowledge and skills in corporate governance and regulations[100]. Risk Management and Internal Control - The risk management and internal control system aims to identify and manage risks at an acceptable safety level to achieve business objectives[126]. - The company has adopted a continuous risk assessment approach to identify and evaluate inherent risks affecting its objectives[127]. - The management confirmed the effectiveness of the risk management and internal control systems as of December 31, 2021[130]. - An independent consultant was hired to review the internal control system, identifying minor deficiencies but no major flaws[130]. - The company has implemented a rigorous internal control system to ensure timely and accurate disclosure of information to shareholders[135]. - The board is responsible for the company's environmental, social, and governance (ESG) risk management and internal control systems[133]. - The company has adopted a three-tier risk management process to identify, analyze, assess, and manage significant risks[128]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the importance of maintaining good standards in environmental, social, and governance (ESG) practices, ensuring sustainable development in all business operations[161]. - The company engages with stakeholders to understand risks and opportunities, ensuring effective communication and maintaining good relationships with key stakeholders[162]. - The company has established various channels for stakeholder engagement, including annual reports, meetings, and community participation[165]. - The board of directors plays a crucial role in overseeing ESG matters, assessing risks related to operations, and developing policies to address these risks[177]. - The company aims to provide heating and cooling services using new green energy to replace traditional energy sources, promoting long-term sustainability and environmental protection[161]. - The company is committed to transparency and information disclosure to shareholders and investors, ensuring their rights and interests are protected[165]. - The company conducts regular discussions with stakeholders to identify and prioritize key environmental, social, and governance issues relevant to its business[171]. - The company established an Environmental, Social, and Governance (ESG) working group consisting of 6 members, including 3 executive directors and 3 independent non-executive directors, to oversee ESG processes and risk management[178]. - The company conducted a materiality assessment to understand stakeholder expectations regarding ESG issues, ensuring comprehensive communication channels were utilized[179]. - The company is committed to reducing its operational environmental impact and has implemented measures to enhance employee environmental awareness and practices[185]. - The company achieved compliance with all relevant environmental laws and regulations, with no legal cases related to environmental issues during the reporting period[185]. - The company aims to reduce air pollutant emissions by 3% by 2025, with a significant reduction in emissions achieved in 2021 due to effective energy-saving policies[188]. - In 2021, the total air pollutant emissions were as follows: Nitrogen Oxides (NOx) at 798.76 kg, Sulfur Dioxide (SO2) at 19.23 kg, and Particulate Matter (PM) at 104.54 kg[189]. - The company continuously improves its environmental management system, certified to meet higher standards from ISO14001:2004 to ISO14001:2015[185]. - The company has implemented internal policies to save resources, manage waste, and reduce pollution, ensuring environmental considerations remain a priority in daily operations[185]. - The company is setting strategic goals for the next three to five years to focus on achieving its aspirations and objectives[183]. - The company emphasizes the importance of effective communication with stakeholders regarding the progress of its ESG objectives and goals[182]. - The total greenhouse gas emissions for 2021 amounted to 7,347.71 tons of CO2 equivalent, slightly up from 7,322.87 tons in 2020[193]. - The company aims to reduce greenhouse gas emissions by 5% by 2025[193]. - The greenhouse gas emissions from the aerosol business were 3,062.85 tons of CO2 equivalent in 2021, while the clean energy business contributed 4,280.45 tons[193]. - The increase in greenhouse gas emissions in 2021 was primarily due to the manufacturing of aerosol products and the energy consumption during the construction of facilities for the newly acquired aerosol group[193]. - The company has set a target to reduce hazardous waste by 5% by 2025[200]. - The hazardous waste generated in 2021 increased mainly due to the manufacturing of aerosol products[200]. - The company has implemented a solid waste management system to minimize waste generation and environmental impact[194]. - The greenhouse gas emissions density for the aerosol business was 0.051 tons of CO2 equivalent per ton of production in 2021[193]. - The company acquired a clean energy business in China in 2017, focusing on wastewater heat recovery to replace traditional coal energy[193]. - The indirect emissions from purchased electricity (Scope 2) were a significant source of greenhouse gas emissions for the company[193].
中国绿岛科技(02023) - 2021 - 年度财报