> **来源：[研报客](https://pc.yanbaoke.cn)** # 2022 Annual Report Summary ## Core Content This summary outlines the key details of the 2022 Annual Report of **Nanjing Sinolife United Company Limited**, a joint stock limited liability company incorporated in the People's Republic of China (PRC), with the stock code **3332**. The report includes corporate information, financial highlights, chairman's statement, management discussion and analysis, and various reports related to governance, sustainability, and audit. ## Main Points ### Corporate Information - **Company Name**: Nanjing Sinolife United Company Limited - **Stock Code**: 3332 - **Registered Office and Headquarters**: - **PRC**: 8/F, Deji Building, Block E-2, 188 Chang Jiang Road, Xuanwu District, Nanjing, Jiangsu Province - **Hong Kong**: 40th Floor, Jardine House, 1 Connaught Place, Hong Kong - **Joint Company Secretaries**: - Ms. Zhi Hui - Ms. Kam Mei Ha Wendy (FCG, HKFCG) - **Legal Advisors**: - **Hong Kong Law**: Chiu & Partners - **PRC Law**: King & Wood Mallesons - **H Share Registrar**: Computershare Hong Kong Investor Services Limited - **Principal Bankers**: - Shanghai Pudong Development Bank Cheng Dong Branch - Agricultural Bank of China Ma Qun Branch - **Auditor**: Ernst & Young - **Company Website**: www.zs-united.com ### Directors and Committees - **Executive Directors**: - Mr. Gui Pinghu (Chairman) - Ms. Zhang Yuan (Chief Executive Officer) - Ms. Zhu Feifei - **Independent Non-executive Directors**: - Mr. Zhang Jitong (resigned on 25 January 2022) - Mr. Yu Bo (appointed on 26 January 2022) - Ms. Cai Tianchen - Mr. Wang Wei - **Audit Committee**: - Ms. Cai Tianchen (Chairman) - Mr. Zhang Jitong (resigned on 25 January 2022) - Mr. Yu Bo (appointed on 26 January 2022) - Mr. Wang Wei - **Remuneration Committee**: - Mr. Wang Wei (Chairman) - Ms. Cai Tianchen - Ms. Zhu Feifei - **Nomination Committee**: - Mr. Yu Bo (Chairman, appointed on 26 January 2022) - Mr. Zhang Jitong (resigned on 25 January 2022) - Mr. Wang Wei - Ms. Zhang Yuan - **Strategy and Development Committee**: - Mr. Gui Pinghu (Chairman) - Mr. Zhang Jitong (resigned on 25 January 2022) - Mr. Yu Bo (appointed on 26 January 2022) - Ms. Cai Tianchen ### Financial Highlights - **Revenue**: Increased by approximately **9.0%** to **RMB274.9 million** (2021: RMB252.3 million) - **Gross Profit**: Increased by approximately **15.3%** to **RMB160.0 million** (2021: RMB138.8 million) - **Loss for the Year**: Decreased by approximately **55.2%** to **RMB14.2 million** (2021: RMB31.7 million) - **Loss per Share**: RMB1.51 cents (2021: RMB3.35 cents) - **Dividend Recommendation**: The Board does not recommend any final or special dividends for 2022 ### Chairman's Statement - The Group faced numerous challenges in 2022, including the pandemic, Russia-Ukraine conflict, domestic heat waves, and inflation. - The Group continued to focus on the development of the **Good Health** brand, achieving significant growth in e-commerce and maternity/child product distribution. - In 2023, the Group plans to: - Increase R&D investment to shorten product development cycles - Identify high-quality suppliers to reduce costs - Strengthen brand promotion through online and offline channels - Expand sales scale to improve profitability - The Group also aims to promote the **Good Health** series in the PRC, New Zealand, and Australia to improve public health conditions. ### Product Information - The **Good Health** brand offers a range of products, including: - Propolis Capsules - Oyster Plus Capsules - Hi Cal™ Liquid Calcium & Vitamin D - Viralex Attack Capsules - Grape Seed 55,000 Capsules - 1-a-day Glucosamine Capsules - CalciGrow Nutrient Powder with DHA and Multivitamins - Good Kids Vision Chews - Kids Magnesium Chews - Kids Immune Chews - Gummy Candy Series - Mussel 6000 Capsules - Milk Thistle 35,000 Capsules - Green-Lipped Mussel Capsules - Garcinia Capsules - Omega-3 Fish Oil Capsules - Bilberry & Lutein Capsules ### Management Discussion and Analysis #### Financial Review - **Revenue**: Increased by 9.0% to RMB274.9 million - **Gross Profit**: Increased by 15.3% to RMB160.0 million - **Gross Profit Margin**: Increased from 55.0% to 58.2% - **Loss for the Year**: Decreased by 55.2% to RMB14.2 million - **Loss per Share**: RMB1.51 cents (2021: RMB3.35 cents) - **Other Income and Gains**: Decreased to RMB7.9 million from RMB15.1 million in 2021 due to reduced government grants and one-time gain from asset disposal in 2021 #### Operating Performance - **Selling and Distribution Expenses**: Increased by 2.5% to RMB108.6 million, representing 39.5% of revenue - **Administrative Expenses**: Decreased by 9.0% to RMB63.9 million, representing 23.3% of revenue - **Income Tax Expense/Credit**: RMB3.7 million (2021: RMB1.4 million credit) - **Cash and Cash Equivalents**: Increased by RMB1.3 million - **Inventories**: Increased by 25.5% to RMB75.3 million, with inventory turnover days decreasing to 213 from 228 - **Trade Receivables**: Increased by 7.6% to RMB28.2 million - **Trade Payables**: Increased by 36.9% to RMB21.5 million #### Capital Resources and Risks - **Capital Expenditure**: Approximately RMB1.4 million invested in R&D, plants, and equipment - **Gearing Ratio**: 14.1% as of 31 December 2021, 23.3% as of 31 December 2022 - **Foreign Exchange Exposure**: The Group conducts transactions in RMB, NZD, USD, and AUD. It is exposed to currency fluctuations, particularly against USD, AUD, and NZD. - **Principal Risks**: 1. **Force Majeure Events**: May impact business operations and results 2. **Raw Material and Packaging Price Increases**: Could affect profitability and competitiveness 3. **Consumer Preferences**: Failure to respond to changes may harm sales and customer relationships 4. **Foreign Exchange Risk**: Fluctuations may affect financial performance and investor sentiment ## Key Information - The Group experienced a significant improvement in financial performance compared to 2021, with revenue and gross profit increasing, and loss decreasing. - Strategic focus on the **Good Health** brand and e-commerce platforms contributed to the growth in sales. - The Group's financial health is supported by increased cash flow and improved inventory turnover. - The Group is exposed to various risks, including currency fluctuations, raw material price changes, and the need to continuously innovate and respond to market trends. - The Board has not implemented any hedging strategies for foreign exchange risks. - The Group has no material capital commitments or contingent liabilities as of 31 December 2022.