Financial Performance - Revenue decreased by approximately 14.9% to RMB 252.3 million (2020: RMB 296.5 million) [10] - Gross profit decreased by approximately 18.7% to RMB 138.8 million (2020: RMB 170.7 million) [11] - Loss for the year was approximately RMB 31.7 million (2020: Loss of RMB 49.6 million) [12] - Loss per share was RMB 3.35 cents (2020: Loss per share RMB 5.24 cents) [13] - The Board does not recommend the payment of any final or special dividend for the year (2020: Nil) [14] - The gross profit margin for the year was approximately 55.0% [19] - The net loss for the year showed improvement compared to previous years, decreasing from RMB 49.6 million in 2020 to RMB 31.7 million in 2021 [20] - The Group's revenue for the year was approximately RMB252.3 million, representing a decrease of approximately 14.9% from approximately RMB296.5 million in 2020 [56] - The Group recorded a loss of approximately RMB31.7 million for the year, a decrease of approximately 36.1% compared to a loss of approximately RMB49.6 million in 2020 [56] - The loss per share was approximately RMB3.35 cents, down from approximately RMB5.24 cents in 2020 [56] Product Development and Market Strategy - The company has not indicated any new product launches or technological advancements in the current report [23] - The Group launched a total of 14 new products during the year, including 3 Zhongsheng series products and 11 Good Health series products [48] - The Group is focusing on the development of maternal and infant product series for the PRC market in 2022 [32] - The Group aims to enhance the influence of the Good Health brand through cross-border e-commerce channels in target markets [32] - The Group has optimized its cost structure and is concentrating resources on two core businesses: nutritional supplements for young and middle-aged consumers and for infants and children [30] - The Group's ability to introduce new products in a timely manner is critical to avoid obsolescence and maintain competitive advantage [67] - The Group's success is dependent on accurately predicting consumer trends and preferences to introduce new products [67] Sales and Distribution - Revenue from the online call centers business decreased by approximately 88.8%, from approximately RMB26.9 million in 2020 to approximately RMB3.0 million for the year [56] - Sales through TV shopping channels decreased by approximately 49.6%, from approximately RMB67.1 million in 2020 to approximately RMB33.8 million for the year [56] - The Group continued to expand its local distribution network and e-commerce platforms in the Chinese market, collaborating with major platforms such as Tmall International and JD.com [51] - The Group's overseas sales platforms include a distribution network in countries such as the UK, Germany, and Australia [50] Cost Management and Expenses - The Group's selling and distribution expenses decreased by approximately 20.2% from approximately RMB132.9 million in 2020 to approximately RMB106.0 million for the Year, representing approximately 44.8% and 42.0% of the Group's revenue in 2020 and for the Year respectively [59] - The Group's administrative expenses decreased by approximately 9.5% from approximately RMB77.6 million in 2020 to approximately RMB70.2 million for the Year, representing approximately 26.2% and 27.8% of the Group's revenue in 2020 and for the Year respectively [59] - Other income and gains increased from approximately RMB12.7 million in 2020 to approximately RMB15.1 million for the year [56] Inventory and Receivables - The Group's inventories amounted to approximately RMB60.0 million as at 31 December 2021, a decrease of approximately 27.8% compared with approximately RMB83.1 million as at 31 December 2020 [63] - The inventory turnover period was approximately 228 days for the Year, decreasing by 23 days compared with 251 days in 2020, mainly due to the rapid turnover of the core product Modified Milk Powder with lactoferrin [63] - The Group's trade receivables amounted to approximately RMB26.2 million as at 31 December 2021, representing a decrease of approximately RMB6.8 million compared to approximately RMB33.0 million as at 31 December 2020 [63] - The Group's trade payables decreased by approximately RMB0.5 million to approximately RMB15.7 million as at 31 December 2021, compared to approximately RMB16.2 million as at 31 December 2020 [63] Management and Governance - The Company was established in May 1999 by Mr. Gui Pinghu, who has over 20 years of experience in the nutritional supplements industry [81] - Ms. Zhang Yuan was appointed as Chief Executive Officer on June 17, 2011, and has more than 20 years of experience in the industry [81] - The management team includes independent non-executive directors who contribute to the governance and strategic oversight of the Company [88] - The Company has established various board committees, including the Audit Committee, Remuneration Committee, Nomination Committee, and Strategy and Development Committee, to enhance governance [150][149][150] - The Remuneration Committee is responsible for reviewing and recommending remuneration packages for Directors and senior management [149] - The Strategy and Development Committee conducts research and submits proposals regarding long-term development strategies and material investment decisions [150] Employee and Labor Relations - As of December 31, 2021, the Group employed 279 employees, a decrease from 449 employees as of December 31, 2020 [68] - Total salaries and related costs for the year amounted to approximately RMB68.9 million, compared to approximately RMB72.8 million in 2020 [68] - The company has maintained good working relations with its staff, experiencing no significant issues in recruitment and retention of experienced employees [152] - The company is required to pay various social security funds for its employees in the PRC, including basic pension and medical insurance [152] - The company has not suffered from any material disruption of its normal business operations due to labor disputes or strikes [152] Environmental and Social Responsibility - The company is committed to environmental protection, actively managing and minimizing the environmental impacts of its operational activities [157] - The company aims to maximize energy conservation by promoting efficient resource use and adopting green technologies [157] - The Group is actively seeking to identify and manage its environmental impact, promoting effective resource use and adopting eco-friendly technologies [162] Shareholder Information - Mr. Gui Pinghu holds approximately 81.18% of the Domestic Shares and 2.37% of the H Shares of the Company [78] - Ms. Zhang Yuan has an interest of approximately 0.98% in Domestic Shares and 0.08% in H Shares [81] - The Company has not entered into any management contract with any individual or firm to manage any substantial part of its business during the year [177] - The report indicates that the company is compliant with the Securities and Futures Ordinance regarding substantial shareholders [196] - The document outlines the interests and short positions of shareholders holding 5% or more of the issued share capital [196]
中生联合(03332) - 2021 - 年度财报