Jinfa Labi Maternity & Baby Articles Co.Ltd(002762) : summary of 2021 Annual Report

Securities code: Jinfa Labi Maternity & Baby Articles Co.Ltd(002762) securities abbreviation: Jinfa Labi Maternity & Baby Articles Co.Ltd(002762) Announcement No.: 2022012 Jinfa Labi Maternity & Baby Articles Co.Ltd(002762) 2021 annual report summary I. important tips the summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should carefully read the full text of the annual report in the media designated by the CSRC. In addition to the following directors, other directors attended the meeting of the board of directors to consider the annual report in person

Name of director not present in person position of director not present in person reason for not attending the meeting name of the entrusted person

Tips on non-standard audit opinions □ applicable √ not applicable to the profit distribution plan of common shares or the plan of converting accumulation fund into share capital in the reporting period considered by the board of directors √ applicable □ not applicable whether to convert accumulation fund into share capital □ yes √ no

The company’s profit distribution plan for ordinary shares reviewed and approved by the board of directors is: take 354025000 as the base, distribute cash dividend of 0.50 yuan (including tax) to all shareholders for every 10 shares, send bonus shares of 0 share (including tax), and do not use the accumulation fund to increase the share capital. Preferred stock profit distribution plan for the reporting period adopted by the board of directors □ applicable √ not applicable II. Basic information of the company 1. Company profile

Stock abbreviation Jinfa Labi Maternity & Baby Articles Co.Ltd(002762) stock code Jinfa Labi Maternity & Baby Articles Co.Ltd(002762)

Shenzhen Stock Exchange

Contact person and contact information secretary of the board of directors securities affairs representative

Name: Xue Ping’an, Su Yucan

Office address: No. 107, Fupu Fuji South Road, Jinping District, Shantou City, Guangdong Province No. 107, Fupu Fuji South Road, Jinping District, Shantou City, Guangdong Province

Fax: 075482526662

Tel: 075482516061075482516061

E-mail [email protected]. [email protected].

2. Introduction to main business or products during the reporting period

(I) main business of the company

Founded in 1996, the company has long focused on the industry of maternal and infant consumer goods. It is mainly engaged in the design, R & D, production and sales of medium and high-end maternal and infant consumer goods. Its core business is the operation and management of the three private brands of “Labi baby”, “I love baby” and “baby Labi”. During the reporting period, the company invested in Hanfei Yimei and expanded to Yimei and other healthy and beautiful services that can meet the consumption upgrading needs of mother and child consumers, and carried out new exploration on the mutual promotion of products and services. Han Fei Yimei is a joint-stock enterprise of the company, which does not meet the standards of holding or statement consolidation. Therefore, there is no significant change in the company’s main business at present.

Based on the strategy of “product + service + Internet”, the company has established the development direction of “maternal and infant products + medical and medical beauty services”. The business layout of the company in the maternal and infant consumption service side is gradually clear, and the business framework is basically clear. In the future, the company will break the development bottleneck and improve its all-round comprehensive competitiveness in the maternal and infant field.

(II) main products of the company

The company has always focused on the mother and baby industry. Its products are mainly mother and baby consumer goods made of cotton. It has basically realized the coverage of the whole product line of “wear” and “use” for infants and young children.

The company’s main cotton products and daily necessities for infants and young children are based on the characteristics of weak resistance and rapid growth of infants and young children. They have high quality requirements, but they have short service cycle and dense consumption frequency. Most of them have the characteristics of high-quality FMCG. Maternal products are mainly used for prenatal care of mothers of childbearing age, wear and use products for postpartum repair, etc.

(III) business model of the company

The company’s business covers the whole industrial chain of brand operation, product R & D and design, production and manufacturing, franchise, direct marketing, online sales, after-sales service and so on.

The company’s products have formed a full product line covering the field of wear and use for 0-3-year-old infants, and some products are extended to 4-8 years old. The company’s main profit comes from the sales of three independent brand products of “Labi baby”, “I love baby” and “baby Labi”. Closely focusing on the overall strategy of “product + service + Internet”, the company has gradually increased its investment in service-side businesses such as medical treatment and medical beauty, arranged the field of “maternal and infant products + medical treatment and medical beauty services”, created a “product + service” two wheel drive collaborative development model, and improved the company’s comprehensive competitiveness in the maternal and infant industry. The specific business model of the company is as follows:

1. Brand management model

The company has three independent brands of “Labi baby”, “I love baby” and “baby Labi”, and is engaged in brand operation management integrating R & D, design, procurement, production, sales and after-sales service of the above brand products, so as to meet the needs of medium and high-end consumers with high-quality products and services.

With the brand concept of providing products that are “natural, safe, comfortable, convenient and suitable for physical fitness”, the Labi baby brand serves the middle and high-end consumer groups of maternal and infant products. The products cover the whole product line of “wear” and “use” for infants and young children. The sales network is spread all over the country, mainly concentrated in the first, second, third and fourth tier cities, and expands to the fifth and sixth tier cities.

With the brand concept of providing products with “children’s fun, fashion, safety, convenience and fitness”, I love baby is mainly targeted at the middle-end mother and baby consumer groups, and its main product line is mother and baby cotton products of “wear” and “use”. The sales network is mainly distributed in the second, third and fourth tier cities and extends to the fifth and sixth tier cities.

Baby Labi brand takes providing “safe, healthy and suitable for physical fitness” maternal and infant washing and care products as the brand concept, targeting medium and high-end maternal and infant consumer groups. The products cover functional products such as washing, washing and skin care.

The sales outlets are mainly located in the second, third and fourth tier cities and extend to the fifth and sixth tier cities.

2. R & D mode

The company collects and analyzes data through consumer feedback, analyzes the trend of market changes and technology iteration, and organizes R & D personnel to carry out product and technology R & D and reserve. The company also cooperates with Shantou University and other relevant scientific research institutions to build a washing and care product laboratory, R & D and design center. Relying on the company’s internal R & D ability and R & D resources of colleges and universities, the company carries out product design, technology R & D and technology application industrialization based on the market demand of mother and baby consumer goods. Cooperate with Shantou University on the project of “research and development of washing and care products for women, infants and children”, and research and tackle key technical problems such as new processes and new equipment.

3. Procurement mode

The company’s procurement includes raw materials and finished products. Through communication with the annual budget of the sales department, analyze the production order and inventory according to the sales order forecast and delivery time node, reasonably arrange the procurement quantity and order time point, ensure the best procurement quantity and reduce the capital occupation time. The company constantly updates, optimizes and improves the supplier information base. When procurement occurs, the company requires suppliers to send samples. The procurement department and the quality department compare, demonstrate and inspect the samples, so as to strengthen the control of product quality from the source.

4. Production mode

The company mainly adopts the production mode of combining self owned factory production, outsourcing production and outsourcing production.

(1) Self owned factory production – the company’s internal production mainly adopts the production mode of combining inventory and order. The production center arranges production according to the inventory scale and order demand.

(2) Outsourcing production – the company will outsource some production and processing orders to manufacturers that meet the company’s unified technical standards and production specifications, and the company will provide raw and auxiliary materials required for production. After the outsourcing manufacturers complete the orders, they will deliver them to the company.

(3) Outsourcing production – the company is responsible for product R & D and design, and provides the original samples, technical data and some brand trademark materials completed by the design to the outsourcing manufacturer for production, and carries out process follow-up and quality monitoring. Before warehousing, only products that meet the double standards of the state and the enterprise and pass sampling inspection and re inspection can be accepted and warehoused.

5. Sales model

Labi baby and I love baby brands mainly adopt the offline + online sales mode. Offline stores include shopping malls, counter stores, shopping center stores and brand stores. Online sales channels include mainstream e-commerce platforms, micro malls, etc. The company set up a link between the middle and back office systems Wuxi Online Offline Communication Information Technology Co.Ltd(300959) , enabled offline physical stores through live delivery and social marketing, and diversified the scenes of single order payment through the construction of micro mall, so as to drain Wuxi Online Offline Communication Information Technology Co.Ltd(300959) each other and inject new vitality into offline stores. The brand of baby Labi mainly adopts the sales mode of building a distribution network. The company has formed an omni channel sales network such as “offline store retail network, mainstream e-commerce platform stores, micro mall and wholesale of washing and care products”.

(1) Franchise mode – the franchise agent authorized by the company opens a brand franchise store, and the property of relevant persons is controlled by the franchise agent and operated according to the unified management mode of the company. The company recognizes the sales revenue when delivering the goods to the franchise agent.

(2) Direct marketing mode

Offline Direct stores – the company directly sets up brand flagship stores or brand exclusive stores for retail. The revenue is recognized when the products are delivered to customers and the payment is received, or when the settlement is made within the time agreed with the mall.

E-commerce – the company opens stores on the e-commerce platform, increases traffic through live broadcasting and other tools, and the company settles the sales payment with the e-commerce platform on schedule.

Micro Mall – the company has opened a micro mall under the wechat ecosystem and promoted it through the two systems of direct marketing and franchise. The sales obtained by the direct marketing micro mall shall be directly collected by the company to confirm the income. The franchise micro mall shall be drained and promoted by the franchisee, and the company shall settle the payment with the franchisee on schedule.

Cross border integration – after the company invested in Hanfei Yimei, the two sides gradually realized the resource sharing between Yimei customers and maternal and infant member customers, and formed a symbiotic and win-win cross-border integration sales model through mutual drainage and collaborative development. With the deepening of business cooperation and the synergy of brand influence, the cross-border integration model will produce the effect of “1 + 1 2”.

(3) Wholesale mode

Wholesale mode – when the products are delivered to the regional agent, the sales revenue is recognized when the company has received or obtained the receipt certificate according to the agreement. 3. Main accounting data and financial indicators (1) whether the company needs to retroactively adjust or restate the accounting data of previous years in recent three years □ yes √ no

Unit: Yuan

Year end 2021 year end 2020 year end increase or decrease over the previous year year end 2019 year end

Total assets 106970521753110274652891 – 3.00% 1074779611

Net assets attributable to shareholders of listed companies 9812982630698853321095 – 0.73% 99487494170

20212020 year-on-year increase or decrease 2019

Operating income 2993199172731313013794 – 4.41% 43827949258

Net profit attributable to shareholders of listed company 140065521132 Shandong Publishing&Media Co.Ltd(601019) 25 – 57.04% 4660353999

Deduction attributable to shareholders of listed companies

Net profit of recurring profit and loss 12167029372322661533 – 47.62% 3895045171

Net cash flow from operating activities 38293599568403362622 – 54.43% 10126043226

Basic earnings per share (yuan / share) 0.04 0.09 – 55.56% 0.13

Diluted earnings per share (yuan / share) 0.04 0.09

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