Breo(SH:688793)2022-04-24 16:00Financial Performance - The company's operating revenue for 2021 was CNY 1,189,539,638.54, representing a year-on-year increase of 43.93%[21]. - The net profit attributable to shareholders for 2021 was CNY 91,861,861.17, up 29.92% compared to the previous year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 76,689,994.03, reflecting a growth of 22.23% year-on-year[21]. - Basic earnings per share for 2021 increased by 13.73% to CNY 1.74[22]. - The total assets at the end of 2021 reached CNY 960,876,447.77, a 101.78% increase from the previous year[21]. - The company's net assets attributable to shareholders rose to CNY 655,330,600.73, marking a significant increase of 179.49% year-on-year[21]. - The cash flow from operating activities for 2021 was CNY 86,917,959.84, an increase of 27.36% compared to 2020[21]. - The total cash dividend for the year, including the interim distribution, amounts to 66,941,040.00 RMB (including tax)[5]. - The company plans to distribute a cash dividend of 6.00 RMB per 10 shares, totaling 36,984,000.00 RMB (including tax) for the year 2021[5]. Research and Development - Research and development expenses accounted for 3.97% of operating revenue in 2021, down from 4.46% in 2020[22]. - The company has increased R&D investment to enhance product competitiveness in areas such as usability, design, and user experience[30]. - The company achieved a total R&D investment of ¥47,204,969.72, representing a 27.96% increase compared to the previous year[69]. - The total R&D investment accounted for 3.97% of the operating revenue, a decrease of 0.49 percentage points from the previous year[69]. - The company added a total of 96 new patents during the reporting period, including 7 domestic invention patents and 8 overseas invention patents[58]. - The company holds a total of 672 domestic and international patents as of December 31, 2021, establishing itself as a leading brand in the smart portable massager industry[48]. - The company is committed to continuous innovation in health sensing technology, achieving breakthroughs in user-specific adaptations and individual feature recognition[64]. Market Expansion and Strategy - The company is exploring new franchise models to penetrate lower-tier markets, aiming to expand its consumer base by leveraging appropriate pricing strategies[43]. - The company has increased its marketing efforts on new media platforms like Douyin, WeChat, and Xiaohongshu, enhancing product exposure and consumer interaction through live streaming and promotional activities[44]. - The collaboration with Tonino Lamborghini has led to the launch of high-end massage products, enhancing brand recognition and supporting the company's international expansion strategy[45]. - The company is expanding its overseas market presence with subsidiaries in Hong Kong, the USA, and Japan, while also facing risks from international investment policies and management complexities[90]. - The company plans to expand its sales channels and increase efforts in overseas markets, particularly in the US, Russia, Japan, and Southeast Asia[141]. - The company aims to enhance its market competitiveness through breakthroughs in product innovation, focusing on intelligent, portable, and user-friendly designs[81]. Product Development and Innovation - The company launched the smart moxibustion box in Q3 2021, which received positive market feedback and expanded the moxibustion product line[32]. - The company launched the sixth generation portable head massager, featuring the industry's first dual-channel high-fidelity stereo audio online voice recognition module[64]. - The company upgraded its user-end APP platform, enhancing user engagement through new interactive technologies and features[65]. - The company is developing new technologies to enhance user data collection and health analysis capabilities, expanding its market potential[72]. - The integration of AI and IoT technologies in new products is expected to simplify user operations and improve health management services[72]. - The company aims to strengthen its competitive position in the eye care product line through innovative product upgrades and enhanced user interaction[73]. Corporate Governance and Compliance - The company has received a standard unqualified audit report from Tianjian Accounting Firm[5]. - The company has not faced any non-operational fund occupation by controlling shareholders or related parties[8]. - The company has not violated decision-making procedures for external guarantees[8]. - The company has established a cash dividend policy that protects the rights of minority investors, with no adjustments made during the reporting period[180]. - The company actively engages in corporate social responsibility, contributing to social welfare and environmental protection while enhancing its governance structure[187]. - The company has implemented a comprehensive internal control system, focusing on key areas such as sales, procurement, production, R&D management, and financial reporting, with no significant deficiencies identified[184]. Risks and Challenges - The company has detailed various risks and countermeasures in its report, particularly in the "Management Discussion and Analysis" section[4]. - The company faced risks related to high sales expense ratios due to a significant proportion of direct sales, leading to increased promotional and personnel costs[92]. - The company is at risk of declining gross margins if industry competition leads to lower product prices or if raw material costs rise without effective cost control[91]. - The company is actively addressing the impact of the COVID-19 pandemic on its direct sales performance, particularly in physical retail locations[95]. Employee and Management Information - The company employed a total of 1,083 staff members, with 348 in the parent company and 735 in major subsidiaries[176]. - The workforce includes 721 sales personnel, 126 technical staff, and 111 production workers, reflecting a strong focus on sales and technical capabilities[176]. - The education level of employees shows that 29 hold master's degrees or higher, while 314 have bachelor's degrees[176]. - Total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 9.5432 million yuan[163]. - Total remuneration for core technical personnel at the end of the reporting period was 838,500 yuan[163]. - Key personnel changes include the resignation of several executives, impacting the leadership structure[154].