Financial Performance - The company's revenue for the year ended December 31, 2021, reached RMB 1.372 billion, representing a year-on-year growth of 48.3% compared to RMB 925.366 million in 2020[9]. - Gross profit for the same period was RMB 620.304 million, an increase of 41.8% from RMB 437.490 million in the previous year[9]. - Adjusted net profit amounted to RMB 156.719 million, reflecting an 85% increase from RMB 84.709 million in 2020[9]. - The company reported a pre-tax loss of RMB 518.022 million, which is a 114.3% increase from a loss of RMB 241.763 million in 2020[9]. - The basic loss per share was RMB (4.38), compared to RMB (3.28) in the previous year, indicating a 33.5% increase in loss per share[9]. - The gross margin for 2021 was 45.2%, down from 47.3% in 2020, showing a decrease of 2.1 percentage points[9]. - The company reported a significant increase in new customers, reaching 526,820 for the year ended December 31, 2021, compared to 361,754 in 2020, representing a growth of approximately 45.5%[25]. - Cumulative customers at the end of the year totaled 2,180,825, up from 1,654,005 in the previous year, indicating a growth of about 31.7%[25]. - The number of customer visits increased to 2,673,000, a rise from 1,787,000 in 2020, reflecting a growth of approximately 49.5%[25]. - The customer retention rate improved to 62.8% in 2021, compared to 57.5% in 2020, showing an increase of 5.3 percentage points[25]. Business Operations - The company operates a network of over 300 cities across China, establishing itself as a leading chain of traditional Chinese medicine services[11]. - The company operates 42 offline medical institutions across 11 cities, establishing a standardized and branded chain of medical halls[15]. - Over 20,000 renowned traditional Chinese medicine practitioners provide services through the company's online and offline network[15]. - The company has signed strategic cooperation agreements with over ten traditional Chinese medicine universities and top-tier hospitals to enhance clinical capabilities[15]. - The implementation of the OMO business model allowed the company to maintain service continuity during the COVID-19 pandemic, shifting to online consultations when necessary[16]. - The company aims to promote high-quality medical resources through a modernized traditional Chinese medicine medical alliance[15]. - The company aims to strengthen partnerships with public hospitals and traditional Chinese medicine universities to enhance resource allocation at the grassroots level[20]. - The company has established a rapid response mechanism to address various levels of pandemic impact, ensuring uninterrupted medical services[16]. Membership and User Engagement - Membership user count increased significantly from 25,310 in 2019 to 139,039 in 2021, with a retention rate exceeding 50%[13]. - Membership user consumption ratio rose from 8% in 2019 to 31% in 2021, with average revenue per member being about twice that of non-members[13]. - The company reported a member annual retention rate of approximately 88.2%, 89.1%, and 87.3% over the past three years[13]. - Average user spending per visit over the past three years was approximately RMB 515, 518, and 513, indicating stable customer spending[13]. - The average spending of members rose to RMB 3,118 in 2021, compared to RMB 2,782 in 2020, reflecting an increase of about 12.1%[27]. Strategic Initiatives - The company plans to develop OMO (Online-Merge-Offline) business to enhance internet-based traditional Chinese medicine services, aiming for high-quality growth in 2022[19]. - Increased R&D investment is planned to establish a product system for common prescriptions and treatment pathways for the top five diseases[20]. - The company intends to expand its membership system and explore new service models, including family doctor services[20]. - A high-quality expansion strategy will be implemented, focusing on both existing and new city layouts[20]. - The company will enhance supply chain supervision and digital capabilities to improve the quality of traditional Chinese medicine[20]. - The company aims to maintain industry-leading revenue growth while addressing public healthcare accessibility issues[20]. Digital Transformation and Compliance - The company invested significantly in digital operations and compliance management in 2021, enhancing user experience and increasing patient return rates through a digital store system[17]. - The company plans to enhance its OMO platform and attract quality medical resources to address healthcare service challenges[32]. - Future strategies include the introduction of smart hardware for remote medical services and the development of in-house formulations for various medical conditions[32]. - The company aims to strengthen risk management and internal controls to ensure stable growth amid market fluctuations and supply chain risks[33]. Governance and Management - The company has a strategic focus on expanding its business through the expertise of its board members in various sectors, including healthcare and investment[62][63][65]. - The management team is composed of individuals with extensive backgrounds in finance, investment, and healthcare, enhancing the company's strategic decision-making capabilities[63][65]. - The company is committed to maintaining high standards of governance and oversight through its experienced board and management team[63][65]. - The board includes members with significant experience in both domestic and international markets, which is expected to benefit the company's strategic direction[63][65]. - The company has established formal procedures for evaluating the independence of non-executive directors and for succession planning[172]. Environmental, Social, and Governance (ESG) - The company has established an ESG governance framework, with a dedicated ESG management committee to oversee the implementation of ESG policies[196]. - The board of directors is responsible for setting ESG management policies and strategies, with a focus on identifying and managing ESG-related risks[195]. - The company has committed to sustainable development and has set important ESG performance indicators to ensure goal achievement[195]. - The first ESG report covers the company's performance from January 1, 2021, to December 31, 2021, adhering to the ESG reporting guidelines[193]. Shareholder Relations - The company emphasizes active communication with shareholders and stakeholders, ensuring timely disclosure of significant developments[190]. - The company has a dedicated investor relations department to address shareholder inquiries and concerns[191]. - The company’s annual general meeting requires at least 21 days' notice, ensuring shareholder participation in key decisions[190]. - The company has a structured process for shareholders to propose special meetings and resolutions, enhancing shareholder rights[191].
固生堂(02273) - 2021 - 年度财报