Financial Performance - For the year ended December 31, 2021, revenue increased by 12.4% to RMB 1,924.7 million from RMB 1,712.6 million in 2020[7] - Gross profit rose by 9.4% to RMB 1,144.0 million, with a gross margin of 59.4%, down from 61.1% in 2020[7] - Profit attributable to shareholders increased by 17.7% to RMB 359.5 million, with a net profit margin of 18.7%, up from 17.8% in 2020[7] - Basic earnings per share for the year were RMB 0.33[7] - Total revenue for 2021 reached RMB 1.92 billion, despite challenges from COVID-19 and economic slowdowns[10] - In 2021, the company achieved revenue of RMB 1,924.7 million, an increase of 12.4% compared to 2020, and recorded an annual profit of RMB 359.5 million, up 17.7% from 2020[17] - Revenue from tea sales rose by 14.4% from RMB 1,222.1 million in 2020 to RMB 1,398.2 million in 2021[27] - Revenue from tea food sales increased by 16.2% from RMB 213.4 million in 2020 to RMB 248.0 million in 2021[27] - Revenue from tea utensils grew by 8.4% from RMB 182.6 million in 2020 to RMB 198.0 million in 2021[27] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.23 per share, equivalent to RMB 0.19 per share[7] - The company intends to declare dividends of no less than 20% of the group's after-tax consolidated profit for each financial year, subject to financial and business conditions[102] - The company paid dividends to shareholders totaling RMB 255,725 thousand in 2021, compared to RMB 201,704 thousand in 2020, representing an increase of 26.7%[144] Retail and Market Presence - The company operates over 1,300 retail outlets and specialty stores across 31 provinces in China as of December 31, 2021[3] - As of December 31, 2021, the company owned a total of 1,313 retail outlets and specialty stores, up from 1,243 as of December 31, 2020[17] - The company has been actively acquiring retail stores since 2008 to enhance its sales network and customer service capabilities[103] - The company plans to expand its sales network and optimize store locations, particularly in tier 3 and tier 4 cities[14] Product Development and Innovation - The company offers more than 1,300 types of traditional Chinese tea products, holding the largest market share in the traditional Chinese tea segment by retail sales[3] - New product development includes a focus on traditional foods and expanding the milk tea market, aiming to meet diverse consumer demands[11] - The company has adjusted its product offerings, increasing the proportion of mid-to-high-end products to meet customer needs in China[18] - The company is focused on developing new tea-related products to meet market demand and maintain its leading brand position[22] - The company aims to enhance its product innovation capabilities to build market competitiveness through differentiation[98] Financial Position and Assets - The total assets increased from RMB 2.90 billion in 2019 to RMB 3.21 billion in 2021, reflecting a growth of approximately 10.5%[9] - The total liabilities rose from RMB 1.21 billion in 2020 to RMB 1.38 billion in 2021, indicating an increase of about 13.4%[9] - The capital-to-debt ratio remained stable at 25.3% in 2021, compared to 25.1% in 2020[9] - Cash and cash equivalents decreased by RMB 122.6 million or 34.0% from RMB 361.0 million as of December 31, 2020, to RMB 238.4 million as of December 31, 2021[35] - Total bank borrowings increased from RMB 586.6 million as of December 31, 2020, to RMB 619.4 million as of December 31, 2021[37] Governance and Compliance - The company has adhered to the corporate governance code as per the listing rules, with no deviations reported for the year ending December 31, 2021[58] - The board consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors, complying with the requirement that at least one-third of the board members are independent[60] - The company emphasizes high-quality governance to enhance shareholder value and ensure stakeholder interests are met[58] - The board is responsible for overseeing the company's business, strategic decisions, and performance, with authority delegated to the CEO for daily operations[59] Risk Management and Internal Controls - The company has implemented effective internal controls and risk management frameworks to address environmental, social, and governance (ESG) matters[58] - The company conducted a comprehensive risk assessment, identifying risks across business processes and summarizing them into a final risk list, which is evaluated based on likelihood and impact[79] - The company's risk management and internal control systems were deemed effective and adequate in all material aspects as of December 31, 2021[81] Market Trends and Consumer Behavior - The overall retail industry remains sluggish, with a long recovery period anticipated due to factors such as inflation, trade tensions, and the ongoing impact of the pandemic[95] - The shift in tea consumption trends is moving from first and second-tier cities to third and fourth-tier cities, presenting new growth opportunities[97] - The rise of health-conscious consumption is leading to diversified consumer demands, necessitating innovation in product offerings to break the homogenization in the tea industry[98] - The company is leveraging online platforms like Douyin and Kuaishou to reach consumers, adapting to changing shopping habits post-pandemic[97] Employee and Management Information - The group has a total of 3,508 full-time employees as of December 31, 2021[126] - The management team has over 15 years of financial experience, contributing to the company's strategic planning and operational management[57] - The company has not encountered any significant difficulties in recruitment or experienced major employee turnover during the year[49] Related Party Transactions - The group has ongoing related party transactions, including lease agreements with various related parties since 2009[115] - The group has complied with the disclosure requirements of the Listing Rules regarding related party transactions[115] - The independent non-executive directors confirmed that the ongoing connected transactions were conducted on normal commercial terms and in the overall interest of shareholders[125]