Financial Performance - The group's revenue decreased by 45.9% to RMB 611.0 million (2017: RMB 1,129.4 million) [12] - The group's gross profit decreased by 45.0% to RMB 208.4 million (2017: RMB 378.6 million) [12] - The group's EBITDA decreased by 58.5% to RMB 45.0 million (2017: RMB 108.4 million) [12] - The group reported a net loss of RMB 44.1 million (2017: net profit of RMB 22.1 million) [12] - Basic and diluted loss per share was RMB 0.09 (2017: basic and diluted earnings per share of RMB 0.05) [12] - No final dividend was proposed (2017: nil) [12] - The net loss margin for 2018 was -7.2%, a decrease of 9.2 percentage points from 2.0% in 2017 [13] - The company recorded a net loss of RMB 44.1 million in 2018, down from a net profit of RMB 22.1 million in the previous year [20] - The total liabilities of the company in 2018 were RMB 852.6 million, compared to RMB 827.4 million in 2017 [22] - The company's total assets in 2018 were RMB 2,262.4 million, slightly down from RMB 2,279.6 million in 2017 [22] - The company reported a significant decline in revenue from the Northeast region, which fell by 90.2% to RMB 2.8 million in 2018 [30] - The company reported a loss attributable to shareholders of approximately RMB 44.4 million, compared to a profit of RMB 22.1 million in the previous year [39] - The total comprehensive income for the year was RMB (39,624) thousand, compared to RMB 30,998 thousand in the previous year, highlighting a negative shift in overall financial health [180] Operational Efficiency - The company's revenue decreased by 45.9% to RMB 611.0 million in 2018, compared to RMB 1,129.4 million in 2017 [16] - The number of retail stores decreased from 1,071 to 672, a net reduction of 399 stores [20] - The company is focusing on closing underperforming stores and enhancing control over distributors to improve operational efficiency [19] - The average inventory turnover days increased to 44 days from 27 days year-on-year, primarily due to the termination of distribution relationships with slow-paying distributors [53] - The average trade receivables turnover days rose to 114 days from 94 days year-on-year, with total trade receivables decreasing by approximately 25.2% to RMB 191.9 million as of December 31, 2018 [53] - The distribution network included 636 retail stores across over 250 cities and 29 provinces as of December 31, 2018, with a net decrease of 399 stores from the previous year [40] - The company adopted a cautious approach by suspending expansion plans and closing underperforming stores, resulting in a total of 672 retail stores as of December 31, 2018 [41] Investments and Acquisitions - New business ventures in 2018 included the acquisition of a duck farming and processing business and the establishment of an online platform for high-end food retail [19] - The company acquired 100% of Tianjin Yueshin E-commerce Co., Ltd. in July 2018, which operates online platforms and physical stores in China [27] - The company also acquired 60% of Linqu Dongda Goose Industry Co., Ltd. in November 2018, focusing on goose breeding and foie gras sales [27] - The acquisition of Dongda Goose Industry Co., Ltd. was recorded at RMB 4,645,000, with a focus on the valuation of identifiable assets and related fair value adjustments [170] - The group is in discussions regarding a potential acquisition of Jiahe Limited, which would allow for diversification and entry into asset management services [162] Corporate Governance - The board is committed to high corporate governance and business ethics standards, which are essential for enhancing investor confidence and maximizing shareholder returns [65] - The board currently consists of three executive directors and three independent non-executive directors, with independent directors making up 50% of the board, exceeding the listing rules requirement [66] - The audit committee, comprising three independent non-executive directors, assists the board in financial reporting, internal controls, and risk management, and held two meetings during the year [72] - The company has appointed three independent non-executive directors, exceeding one-third of the board, ensuring adequate checks and balances for shareholder interests [72] - The company has implemented appropriate insurance arrangements for its directors and executives against potential legal claims [70] - The board regularly reviews its governance practices to align with stakeholder expectations and regulatory requirements [66] - The company encourages all directors to participate in continuous professional development programs to enhance their knowledge and skills [70] Environmental and Social Responsibility - The company emphasizes sustainable development and integrates environmental concepts into daily production and management activities [111] - The company has implemented a solid waste classification and recycling program, selling reusable waste materials to third parties for recycling [106] - The company encourages the use of electronic communication to reduce paper usage and promotes double-sided printing [111] - The group has maintained a zero record of fatalities or work-related injuries over the past four years, adhering to all applicable labor and safety laws [118] - The group has established a childcare center, "Tiger Baby Home," to support employees with children, reflecting its commitment to employee welfare [115] - The company is committed to community investment, focusing on urban greening projects to enhance local environments [125] Risk Management - The company has established a risk management framework to identify, assess, and manage significant risks, with annual reviews conducted by the board [86] - The board believes that the risk management and internal control systems are effective and sufficient to manage business risks [86] - The company faces risks from changing fashion trends, which could impact its ability to meet consumer demands [127] - The company competes with both local and international brands, affecting its market share and profitability [128] Financial Reporting and Compliance - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2018 [163] - The board is responsible for preparing the consolidated financial statements in accordance with International Financial Reporting Standards and ensuring the absence of material misstatements due to fraud or error [172] - The audit report emphasizes the importance of professional judgment and maintaining professional skepticism throughout the audit process [173] - The financial statements are presented in Renminbi (RMB) and rounded to the nearest thousand [200] - The group has adopted IFRS 16, which affects the measurement and presentation of lease liabilities and right-of-use assets [198] Employee Management - The group had a total of 1,460 employees, a decrease from 2,169 employees in 2017, with 918 employees engaged in men's apparel business [114] - The average monthly employee turnover rate in 2018 was 7.6%, significantly higher than 2.8% in 2017, indicating a need for improved employee retention strategies [115] - The group recorded a total of 1,162 hours of employee training in 2018, emphasizing the importance of skilled workforce for business success [119] - The group provides free quality accommodation for 602 employees in Quanzhou, designed with various amenities to enhance employee satisfaction [115] Supplier and Customer Relations - The group conducts annual performance evaluations of all suppliers to ensure product quality and timely delivery, enhancing competitiveness and brand image [121] - The largest customer accounted for approximately 14% of total revenue for the year, down from 19% in 2017 [138] - The top five customers contributed about 38% of total revenue, an increase from 32% in 2017 [138] - The largest supplier accounted for around 12% of total raw material purchases, consistent with 2017 [138] - The top five suppliers represented 39% of total raw material purchases, up from 30% in 2017 [138]