SYG(SZ:300740)2022-09-02 16:00Financial Performance - The company reported a total revenue of 1.2 billion RMB for the year 2021, representing a year-over-year growth of 15% compared to 2020[21]. - The net profit for 2021 was 150 million RMB, which is an increase of 20% from the previous year[21]. - The company's operating revenue for 2021 was ¥5,010,121,537.14, representing a 34.86% increase compared to ¥3,715,035,387.78 in 2020[28]. - The net profit attributable to shareholders for 2021 was ¥236,419,923.76, a significant increase of 68.54% from ¥140,273,625.84 in 2020[28]. - The net profit after deducting non-recurring gains and losses for 2021 was ¥215,127,899.27, up 58.31% from ¥135,886,436.76 in 2020[28]. - The basic earnings per share for 2021 was ¥0.62, reflecting a 67.57% increase compared to ¥0.37 in 2020[28]. - The company achieved a revenue growth of 18% year-over-year, reaching CNY 1.2 billion in total revenue[162]. - Total revenue for the year reached ¥5,010,121,537.14, representing a year-over-year increase of 34.86% from ¥3,715,035,387.78[73]. Market Expansion and Strategy - The company plans to expand its market presence by entering three new provinces in 2022, aiming for a 10% increase in market share[21]. - Future guidance estimates a revenue growth of 12-15% for 2022, driven by new product launches and market expansion[21]. - The company aims to become one of the top ten beauty companies globally, driven by its dual business strategy focusing on proprietary and agency brands[59]. - The company plans to enhance its market share and competitive advantage through resource integration and improved operational capabilities in the evolving cosmetics industry[46]. - The company is exploring potential acquisitions to enhance its product offerings and market reach, targeting a deal by the end of 2022[21]. Research and Development - The company has allocated 50 million RMB for research and development in new technologies for the upcoming year[21]. - The company applied for 38 patents during the reporting period, with 29 patents granted, including 17 invention patents[57]. - The company has a research and development team of over 200 people and collaborates with renowned universities and research institutions to innovate in skincare products[53]. - Research and development expenses rose by 38.70% year-on-year, amounting to 65,967,283.45 yuan, reflecting the company's increased investment in R&D[85]. - The company plans to increase R&D investment, focusing on unique raw material development and establishing specialized R&D centers for different product categories[129]. Digital Transformation and E-commerce - The company focuses on digital transformation, with its e-commerce systems capable of processing millions of daily orders[53]. - The company’s digital platform has been enhanced, with a focus on six core digital engines, providing comprehensive online and intelligent solutions for brand operators[59]. - The company’s self-operated platform sales reached 337.30 million yuan, a 172.45% increase year-on-year, while third-party platform sales were 4.08 billion yuan, a 26.53% increase[64]. - The company’s private traffic operation through its mini-program "Shuiyang Chaozhuang" added over 10 million new users, with transaction orders increasing by 80% year-on-year[64]. Risk Management - The company identified potential risks including market competition and supply chain disruptions, advising investors to remain cautious[6]. - The company faces supply chain management risks due to the need to maintain sufficient inventory levels and manage product expiration effectively[130]. - Intense competition in the cosmetics industry poses risks, particularly from similar brand competitors and the rapid evolution of online sales channels[130]. - The ongoing pandemic presents operational risks, complicating production and management processes[132]. Corporate Governance and Shareholder Relations - The company established investor communication channels, including a dedicated investor hotline and email, to enhance transparency and engagement with stakeholders[141]. - The company maintains independence from its controlling shareholders in terms of personnel, assets, finance, and operations[144]. - The total remuneration for directors, supervisors, and senior management in 2021 amounted to CNY 7.68 million[163]. - The company has not experienced any significant competition issues during the reporting period[145]. - The company plans to implement a shareholder return plan for the next three years (2021-2023)[176]. Employee and Management - The total number of employees at the end of the reporting period is 2,954, with 4,238 employees receiving salaries during the period[181]. - The number of R&D personnel increased by 85.95% to 225 in 2021, with a higher proportion of personnel holding master's degrees[88]. - The company emphasizes a young and stable management team, which is adept at responding to new consumer demands and market trends[56]. - The company has implemented a multi-incentive system to enhance employee welfare and stimulate organizational creativity[129]. Product Development and Innovation - A new product line is set to launch in Q3 2022, projected to contribute an additional 200 million RMB in revenue[21]. - The company launched the micro 800 hyaluronic acid repair essence, utilizing a breakthrough in hyaluronic acid technology with a minimum molecular weight of 800Da[60]. - The company’s collaboration with Johnson & Johnson and other international brands has led to significant sales growth, with Rogaine achieving over 200% year-on-year growth on JD[64]. Financial Management - The company reported a net cash flow from operating activities of ¥199,344,969.03 in 2021, a 52.64% increase from ¥130,601,784.86 in 2020[28]. - The net cash flow from investment activities decreased by 182.38%, resulting in a net outflow of ¥492,794,055.20, attributed to increased investments in the global smart mask production base[93]. - The company reported a fair value change gain of RMB 16,733,650.73 for financial assets measured at fair value[108]. - The company has cumulatively used RMB 782,586,126.44 of the raised funds, with RMB 61,678,601.95 used in the current year[112].