Financial Performance - Zibuyu Group Limited reported a significant increase in revenue, achieving a total of $50 million for the first half of 2024, representing a 25% growth compared to the same period last year[4]. - In the first half of 2024, the Group achieved total revenue of approximately RMB1,462.1 million, representing an increase of approximately 6.3% compared to RMB1,375.3 million in the same period of 2023[11]. - Gross profit for the same period was approximately RMB1,080.9 million, reflecting an increase of approximately 8.0% from RMB1,001.3 million in the prior year[11]. - Profit before income tax increased by approximately 775.9% to approximately RMB93.3 million for the Reporting Period from approximately RMB10.7 million for the six months ended June 30, 2023, with profit before income tax as a percentage of revenue increasing to approximately 6.4% from 0.8%[40]. - The Group recorded a profit and total comprehensive income attributable to shareholders of approximately RMB91.4 million for the Reporting Period, representing an increase of approximately 789.1% compared to approximately RMB10.3 million for the six months ended 30 June 2023[46][48]. - Basic and diluted earnings per share increased to approximately RMB0.18, up from RMB0.02 in the same period of 2023[11]. - The company anticipates a revenue growth forecast of 20% for the second half of 2024, projecting total revenue to reach $120 million by year-end[4]. User Growth and Market Expansion - The user base expanded to 1.2 million active users, marking a 30% increase year-over-year[4]. - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share within the next two years[4]. Research and Development - Zibuyu is investing $10 million in R&D for new product development, focusing on enhancing user experience and technology integration[4]. - The total expenses for research and development of new IT systems were approximately RMB 17,652,000 for the six months ended June 30, 2024, compared to RMB 18,180,000 in 2023, showing a slight decrease of about 3%[150]. Cost Management and Profitability - The gross profit margin improved to 45%, up from 40% in the previous year, indicating better cost management[4]. - The cost of sales for the Group was approximately RMB381.2 million, an increase of approximately 1.9% from RMB374.0 million in the same period of 2023, primarily due to increased sales volume[22]. - Selling expenses and distribution costs amounted to approximately RMB941.7 million, an increase of approximately RMB17.8 million or 1.9% compared to RMB923.9 million in the same period of 2023, mainly due to increased marketing and advertising expenses[32]. - General and administrative expenses decreased to approximately RMB57.8 million, a reduction of approximately RMB15.3 million or 21.0% compared to RMB73.1 million in the same period of 2023, primarily due to decreased employee benefits expenses[33]. Strategic Initiatives - The management highlighted a strategic shift towards digital marketing, expecting a 40% increase in customer engagement through new campaigns[4]. - The Group has established a TikTok live broadcast team to explore new business models and optimize revenue structure[10]. - The company plans to actively explore diversified sales channels while consolidating existing cooperation platform advantages to achieve broader coverage[63]. - A high-end brand strategy will be implemented to drive new business growth and achieve a second growth curve[63]. Shareholder Value and Corporate Governance - Zibuyu's board of directors has approved a share buyback program worth $2 million to enhance shareholder value[4]. - The Company is committed to maintaining high standards of corporate governance to safeguard shareholder interests and enhance corporate value[79]. - The report indicates a focus on corporate governance and compliance with regulatory requirements[70]. Financial Position and Liquidity - As of June 30, 2024, the Group had cash and cash equivalents of approximately RMB371.7 million, an increase from approximately RMB277.5 million as of 31 December 2023[50][52]. - The total liabilities decreased to RMB 372,134 from RMB 409,668 at the end of 2023, indicating improved financial stability[102]. - The overall financial position has strengthened, as evidenced by the increase in cash and cash equivalents and improved cash flow from operations[109]. Employee Management - As of June 30, 2024, the company had 963 full-time employees, a decrease of approximately 7.0% from 1,155 employees in the same period of 2023[58]. - The total staff cost incurred by the Group was approximately RMB102.3 million for the Reporting Period, representing a year-on-year decrease of approximately 7.0% from approximately RMB110.0 million in the same period of 2023[56]. - The company has adopted Share Award Schemes for existing and new shares on September 15, 2023, and December 1, 2023, respectively, to incentivize employees[62]. Taxation and Compliance - The Company's subsidiaries in the PRC are subject to a corporate income tax rate of 25% on assessable profits, with certain subsidiaries recognized as High New Tech Enterprises benefiting from a reduced rate of 15% for three years[158]. - For the six months ended 30 June 2024, several subsidiaries in the PRC qualified as small and micro enterprises, enjoying a corporate income tax rate of 20%[159]. - The Group operates internationally and is within the scope of the OECD Pillar Two model rules, with no current tax exposure as of 30 June 2024[164].

Financial Performance - In the first half of 2024, the Group achieved total revenue of approximately RMB1,462.1 million, representing an increase of approximately 6.3% compared to RMB1,375.3 million in the same period of 2023[12]. - Gross profit for the same period was approximately RMB1,080.9 million, reflecting an increase of approximately 8.0% from RMB1,001.3 million in the prior year[12]. - Net profit attributable to shareholders was approximately RMB91.4 million, a significant increase of approximately 789.1% compared to RMB10.3 million in the same period of 2023[12]. - Revenue from third-party e-commerce platforms reached approximately RMB1,440.8 million, marking an increase of approximately 10.5% from RMB1,304.0 million in the previous year[15]. - Revenue from North America was approximately RMB1,396.9 million, representing an increase of approximately 8.6% compared to RMB1,286.5 million in the same period of 2023[20]. - Profit before income tax increased by approximately 775.9% to approximately RMB93.3 million for the Reporting Period from approximately RMB10.7 million for the six months ended 30 June 2023, with profit before income tax as a percentage of revenue increasing to approximately 6.4% from 0.8%[41]. - The Group recorded a profit and total comprehensive income attributable to shareholders of approximately RMB91.4 million for the Reporting Period, representing an increase of approximately 789.1% compared to approximately RMB10.3 million for the six months ended 30 June 2023[47][49]. - Basic and diluted earnings per share rose to RMB 0.18, compared to RMB 0.02 for the same period in 2023[98]. Cost and Expenses - The cost of sales for the Group was approximately RMB381.2 million, an increase of approximately 1.9% from RMB374.0 million in the same period of 2023, primarily due to increased sales volume[23]. - Selling expenses and distribution costs amounted to approximately RMB941.7 million, an increase of approximately RMB17.8 million or 1.9% compared to RMB923.9 million in the same period of 2023, mainly due to increased marketing and advertising expenses[33]. - General and administrative expenses decreased to approximately RMB57.8 million, a reduction of approximately RMB15.3 million or 21.0% compared to RMB73.1 million in the same period of 2023, primarily due to decreased employee benefits expenses[36]. - Finance costs amounted to approximately RMB4.4 million, a decrease of RMB0.8 million compared to approximately RMB5.2 million for the six months ended 30 June 2023, mainly due to reduced interest expenses for lease liabilities[40]. Cash Flow and Liquidity - As of 30 June 2024, the Group had cash and cash equivalents of approximately RMB371.7 million, an increase from approximately RMB277.5 million as of 31 December 2023[51][53]. - Cash generated from operations for the six months ended June 30, 2024, was RMB 126,261, an increase of 68.5% compared to RMB 74,881 for the same period in 2023[108]. - Net cash generated from operating activities reached RMB 130,116, up from RMB 57,332, reflecting a significant growth of 126.5% year-over-year[108]. - The total unutilized amount of net proceeds as of June 30, 2024, is HK$71.8 million, down from HK$86.4 million at the end of 2023[91]. Shareholder Information - As of June 30, 2024, Mr. Hua Bingru holds 236,056,036 shares, representing approximately 47.21% of the shareholding[68]. - The total number of shares issued by the company is 500,000,000[70]. - The Company does not hold any treasury shares as of June 30, 2024[80]. - The Board does not recommend the payment of interim dividend for the reporting period, consistent with the previous period where no dividend was paid[80]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to safeguard shareholder interests and enhance corporate value[80]. - The Company has adopted the Model Code for securities transactions by Directors, with all Directors confirming compliance during the Reporting Period[82]. - The Company continues to monitor and review its corporate governance practices to maintain high standards[82]. Organizational Changes and Strategy - The board of directors includes Mr. Hua Bingru as Chairman and Mr. Chen Caixiong as Chief Executive Officer, with a recent change in executive roles[5]. - The Group has established a TikTok live broadcast team to explore new business models and optimize revenue structure[10]. - The Group's operational strategies included organizational changes, efficiency enhancements, and inventory structure optimization[14]. - The company plans to actively explore diversified sales channels while consolidating existing cooperation platforms to achieve broader coverage and sales synergies[63]. Market Outlook - The company remains optimistic about the recovery and development of the global economy despite a complex macroeconomic environment[64].

Core Viewpoint - In 2023, the global economy underwent significant adjustments due to unexpected interest rate hikes by the Federal Reserve and ongoing geopolitical conflicts, impacting the trade landscape and supply chains, particularly in the consumer sector [1] Company Performance - In 2023, the company reported revenue of 3 billion yuan, remaining stable compared to the previous year [1] - The company is one of the largest cross-border e-commerce B2C firms in China, primarily selling apparel and footwear through third-party platforms like Amazon, which holds a 50% market share in North America [1] - The company has successfully expanded into new sales channels such as Temu and TikTok, with notable revenue growth from these platforms [1] Brand and Inventory Management - The company's top ten brands saw sales revenue increase by over 15% year-on-year, contributing to sustainable growth [1] - The company undertook significant inventory adjustments, focusing on clearing slow-moving stock and reallocating resources to best-selling products, which improved inventory turnover [1] - The company recorded an inventory impairment of approximately 388 million yuan, a substantial increase from 55 million yuan the previous year, impacting profitability [1] Cash Flow and Operational Efficiency - Despite profitability pressures, the company maintained a positive operating cash flow of 76.73 million yuan, indicating healthy business operations [2] - The company has embraced technological advancements, integrating AI and digitalization into its operations to enhance efficiency across the entire business chain [2] Industry Outlook - The Chinese e-commerce market is experiencing slower growth, while overseas markets still have significant potential for expansion, particularly in cross-border B2C e-commerce [2] - The cross-border e-commerce market for apparel is projected to grow from 750.3 billion yuan in 2021 to 1,827.6 billion yuan by 2026, with a compound annual growth rate of 19.5% [2] - The company is expected to continue expanding its non-Amazon channels and international markets, focusing on high-quality development and enhancing brand investment [2]

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 3,000,292, a decrease of 2.15% from RMB 3,066,331 in 2022[9] - Gross profit for 2023 was RMB 1,955,273, down 16.66% from RMB 2,347,755 in 2022[10] - The company reported a loss before income tax of RMB 247,211 for 2023, compared to a profit of RMB 127,190 in 2022[11] - The net loss attributable to shareholders for the year was RMB 265,786, a significant decline from a profit of RMB 110,694 in 2022[12] - Total assets as of December 31, 2023, were RMB 893,406, down from RMB 1,360,708 in 2022, representing a decrease of 34.4%[14] - Current assets decreased to RMB 839,070 in 2023 from RMB 1,253,503 in 2022, a decline of 33.1%[14] - Total liabilities were RMB 409,668 as of December 31, 2023, down from RMB 573,387 in 2022, a decrease of 28.6%[16] - Total equity attributable to shareholders decreased to RMB 483,738 in 2023 from RMB 787,321 in 2022, a decline of 38.5%[17] - Cash flow from operating activities showed a net inflow of RMB 76.7 million despite the net loss, indicating healthy operating conditions[41] Inventory and Cost Management - The company undertook substantial inventory clearance, resulting in an increase in the provision for write-down of inventories[22] - The provision for write-down of inventories during the reporting period amounted to approximately RMB 387.8 million, an increase of RMB 333.0 million compared to RMB 54.8 million in the previous year[40] - The proportion of inventory was significantly reduced, contributing to more stable cash flow[27] - Inventory balance at the end of 2023 decreased by RMB 355.3 million compared to the end of 2022, mainly due to large-scale disposal of inventories[78] - The Group's cost of sales for the year ended December 31, 2023, amounted to approximately RMB 1,045.0 million, an increase of approximately RMB 326.4 million or 45.4% from RMB 718.6 million for the year ended December 31, 2022[52] Sales and Market Strategy - The company primarily sells products through channels including Amazon and Temu, indicating a focus on e-commerce expansion[2] - Revenue from third-party e-commerce platforms was approximately RMB 2,921.4 million, remaining stable compared to RMB 2,939.0 million in 2022[45] - The sales income of the top ten brands grew by over 15% year-on-year, with multiple brands exceeding annual sales income of RMB 100 million[35] - The Group focused resources on hot-selling products, improving inventory turnover and optimizing inventory structure[40] - Revenue from Asia for the year ended December 31, 2023, was approximately RMB 106.5 million, representing an increase of approximately RMB 92.6 million or 664.0% compared to RMB 13.9 million for the year ended December 31, 2022[50] Strategic Initiatives and Future Plans - In 2024, the company aims to refine its brand globalization strategy and establish a brand matrix[29] - The company plans to attract international talent and deploy a global supply chain system to enhance operational efficiency[29] - Continued investment in research and development is planned to promote digital transformation and system optimization[29] - The company will expand its diversified sales channel system, focusing on non-Amazon and offline channels in Europe and Asia[29] - The company aims to establish Zibuyu as an internationally renowned operator of fashionable apparel and footwear products, focusing on high-quality offerings to consumers globally[93] Management and Governance - The organizational structure was transformed to create a more innovative system, laying a solid foundation for succession[26] - The management team has a strong educational background, with degrees in marketing, bioscience, and phytology from reputable universities[104] - The Group aims to enhance its business development and management strategies through the insights provided by its diverse board members[105] - The company is focused on enhancing its corporate governance through experienced independent directors with diverse backgrounds in law and finance[113] - The leadership team has been actively involved in the supply chain and administrative management, ensuring effective business operations[100] Risks and Challenges - The company faced challenges in 2023 due to inflationary pressures and fragile consumer spending recovery[22] - Major risks include disruptions in relationships with third-party e-commerce platforms like Amazon and Temu, which could adversely affect business operations[146] - The Group's success is dependent on accurately predicting fashion trends and consumer preferences to design and launch new products[146] - The Group recognizes its social responsibilities in monitoring and reducing environmental risks associated with its operations[147] - The Group faces risks related to foreign exchange rate fluctuations, which could impact financial performance[149] Shareholder Information - The Group's five largest customers accounted for approximately 3.80% of its total revenue during the Reporting Period, compared to 0.35% in 2022[177] - The aggregate percentage of the Group's total purchases attributable to the five largest suppliers was 70.5% during the Reporting Period, up from 66.2% in 2022[177] - The largest supplier accounted for approximately 65.4% of the Group's total purchases during the Reporting Period, compared to 62.8% in 2022[177] - The Group's distributable reserves amounted to RMB 281.7 million, an increase from approximately RMB 161.7 million as of December 31, 2022, representing a growth of 74%[184] - The Share Award Scheme (Existing Shares) was adopted on September 15, 2023, and is designed to recognize and reward eligible participants for their contributions to the Group's growth[184]

Financial Performance - Revenue for 2023 decreased to 3,000,292 from 3,066,331 in 2022, reflecting a decline of approximately 2.2%[8] - Gross profit for 2023 dropped to 1,955,273 from 2,347,755 in 2022, a decrease of approximately 16.7%[9] - Loss before income tax for 2023 was 247,211, compared to a profit of 127,190 in 2022[10] - Loss for the year 2023 was 265,786, compared to a profit of 110,694 in 2022[10] - Total assets decreased to 893,406 in 2023 from 1,360,708 in 2022, a decline of approximately 34.3%[13] - Total liabilities decreased to 409,668 in 2023 from 573,387 in 2022, a reduction of approximately 28.5%[15] - Total equity decreased to 483,738 in 2023 from 787,321 in 2022, a decline of approximately 38.5%[15] - Non-current assets decreased to 54,336 in 2023 from 107,205 in 2022, a reduction of approximately 49.3%[12] - Current assets decreased to 839,070 in 2023 from 1,253,503 in 2022, a decline of approximately 33.1%[13] - Current liabilities decreased to 399,292 in 2023 from 529,725 in 2022, a reduction of approximately 24.6%[14] - Total revenue for 2023 was approximately RMB3,000.3 million, remaining stable compared to 2022[33][37][42] - Gross profit for 2023 was approximately RMB1,955.3 million, a year-on-year decrease of 16.7%[37][38] - Net loss attributable to shareholders for 2023 was approximately RMB265.8 million, compared to a profit of RMB110.7 million in 2022[37][38] - Revenue from third-party e-commerce platforms in 2023 was approximately RMB2,921.4 million, remaining stable compared to 2022[44] - Provision for write-down of inventories in 2023 increased to RMB387.8 million, up from RMB54.8 million in 2022[39][40] - Total staff costs increased by RMB47.7 million, a year-on-year increase of 28.4%[39][40] - Cash flow from operating activities remained positive with a net inflow of RMB76.7 million despite a net loss[40] - North America revenue decreased by 5.1% to RMB2,799.8 million in 2023, primarily due to reduced self-operated online store operations[48][49] - Asia revenue surged by 664.0% to RMB106.5 million in 2023, driven by increased marketing efforts for consignment services[48][49] - Cost of sales increased by 45.4% to RMB1,045.0 million in 2023, mainly due to a RMB333.0 million increase in inventory provisions[51][53] - Gross profit decreased by RMB392.5 million to RMB1,955.3 million in 2023, with gross profit margin dropping to 65.2% from 76.6% in 2022[52][54] - Other income decreased by RMB5.0 million to RMB8.2 million in 2023, primarily due to reduced government grants[58] - Net foreign exchange gains decreased to RMB11.2 million in 2023 from RMB13.5 million in 2022, contributing to lower other gains[61][62] - Selling and distribution costs decreased by 1.6% to RMB2,052.3 million in 2023 from RMB2,085.9 million in 2022, primarily due to reduced marketing expenses and freight costs[64] - General and administrative expenses increased by RMB15.6 million to RMB157.7 million in 2023, driven by higher employee benefits, IT server expenses, and office costs[65][66] - Finance costs decreased by RMB6.4 million to RMB9.5 million in 2023, mainly due to lower interest expenses on bank borrowings[69][70] - Loss before income tax was RMB247.2 million in 2023, compared to a profit of RMB127.2 million in 2022, primarily due to increased inventory provisions[71][72] - Income tax expenses increased by 12.7% to RMB18.6 million in 2023, mainly due to the reversal of deferred income tax assets[75] - The company recorded a loss attributable to shareholders of RMB265.8 million in 2023, compared to a profit of RMB110.7 million in 2022[77] - Inventory balance decreased by RMB355.3 million in 2023 due to large-scale disposal and refined inventory management[77] - Capital expenditures decreased to RMB6.4 million in 2023 from RMB12.6 million in 2022, primarily due to increased investment in office and warehouse equipment[77] - Cash and cash equivalents decreased to RMB277.5 million as of 31 December 2023 from RMB294.5 million in 2022[79] - Total indebtedness as of 31 December 2023 was RMB193.4 million, comprising borrowings of RMB162.0 million and lease liabilities of RMB31.4 million[79] - Gearing ratio increased to 45.9% in 2023 from 42.1% in 2022, primarily due to inventory clearance losses[82] - Total staff costs increased by 28.4% to RMB215.5 million in 2023, driven by expansion of talent reserves and hiring of mid-to-high level management and IT technicians[85] - Full-time employees decreased to 1,063 in 2023 from 1,233 in 2022, mainly based in mainland China[85] - The Group's distributable reserves as of 31 December 2023 were RMB281.7 million, compared to RMB161.7 million in 2022, representing an increase of approximately 74.2%[183] Strategic Initiatives and Future Plans - The company plans to refine its brand globalization strategy and establish a brand matrix to create more differentiated global brands[28] - Efforts will be made to expand the talent base, particularly focusing on attracting international talent and deploying a global supply chain system[28] - The company will continue its digital transformation, increase R&D investment, and enhance digital management capabilities[28] - Expansion of diversified sales channels, including non-Amazon channels, offline channels, and regions such as Europe and Asia, will be intensified[28] - The company anticipates that the 2024 fiscal year will continue to present both challenges and opportunities due to the slow global economic recovery in the post-pandemic era[91] - The company plans to expand sales channels, including non-Amazon channels, offline channels, and regions such as Europe and Asia[93] - The company aims to increase brand investment to create a global brand and enhance brand competitiveness[93] - The company will continue to invest in the supply chain and overseas layout to improve product innovation capabilities and operational efficiency[93] - The company plans to increase investment in digital infrastructure to enhance digital management capabilities[93] - The company will further enrich the management talent structure across various segments to improve overall management levels[93] - The Group aims to further consolidate its leading position in China's cross-border e-commerce industry in 2024[152] Operational Efficiency and Inventory Management - Inventory structure was optimized, significantly reducing the proportion of inventory and stabilizing cash flow[26] - The company undertook substantial inventory clearance of slow-moving stock, resulting in an increase in the provision for write-down of inventories[21] - The company restructured its supply chain, refined business processes, and utilized intelligent algorithm systems to improve inventory turnover efficiency[25] - The company focused on hot-selling products, optimizing inventory structure and increasing inventory turnover[33][39] - The company expanded its presence on emerging e-commerce platforms, enhancing its sales network and customer base[33] Leadership and Management - The company's founder, Mr. Hua Bingru, has over ten years of industry experience and is responsible for formulating overall corporate and business strategies[94] - Mr. Hua Bingru founded the company in April 2011 and has been the chairman of the board and general manager of Zhejiang Zibuyu since then[95] - Mr. Hua Bingru was awarded the Top 10 Pioneer Youth in Hangzhou in 2019 and received a nomination for the Ten Outstanding Entrepreneur in Hangzhou[96] - Mr. Wang Weiping, an executive Director and vice president, is primarily responsible for overseeing the administrative management of the Group[98] - Mr. Wang has over ten years of experience in the Group, managing supply chain and administrative operations since joining in April 2013[99] - Mr. Dong Zhenguo, aged 35, has been an executive Director and vice president since June 2021, overseeing the self-operated online stores business[99] - Mr. Dong has over ten years of experience in sales, marketing, and business management, joining Zhejiang Zibuyu in June 2013 and holding various director and general manager roles in subsidiaries[101] - Ms. Hua Hui, aged 35, was appointed as a non-executive Director in June 2021, with eight years of experience in the Group, primarily responsible for business development recommendations[103] - Ms. Hua served as the sales director of Zhejiang Zibuyu from October 2013 to May 2020, focusing on third-party platform online store operations[103] - Mr. Yu Kefei, aged 45, was appointed as an independent non-executive Director, bringing over 20 years of experience in accounting and business management[105] - Mr. Yu has served as financial director for several companies, including Zhejiang Ming Jewelry Co., Ltd. since March 2017[106] - Mr. Yu obtained the certificate of secretary to the board issued by the Shenzhen Stock Exchange in December 2019 and passed the Certified Public Accountants Examination of the PRC in December 2015[108] - Mr. Shen Tianfeng has over 30 years of legal practice experience and served as the managing partner of Grandall Law Firm (Hangzhou) from January 2001 to April 2019[110] - Mr. Shen has served as an independent director for multiple listed companies, including Hangzhou Weiguang Electronic Co., Ltd. and Zheshang Securities Co., Ltd.[110] - Dr. Lau Kin Shing Charles has more than 20 years of experience in financial and business management and served as the chief financial officer of Sitoy Group Holdings Limited from August 2015 to July 2021[113] - Dr. Lau obtained a bachelor's degree in accounting from Curtin University of Technology in August 1993 and a doctor of business administration degree from the University of Newcastle, Australia in July 2008[115] - Dr. Lau was admitted as a Certified Practising Accountant by CPA Australia in March 2001 and a Certified Public Accountant by the Hong Kong Institute of Certified Public Accountants in July 2001[115] - Dr. Lau was honored as the Model Worker of China Central Government Enterprises by the Ministry of Human Resources and Social Security and the State-owned Assets Supervision and Administration Commission of the State Council in April 2009[115] - Mr. Chen Caixiong appointed as co-chief executive officer on 27 March 2024, responsible for overseeing overall operations and supply chain management[117][119] - Mr. Chen joined the Group in March 2023 and was appointed as vice president in May 2023, with extensive experience in supply chain management[118][119] - Ms. Yuan Ding, vice president and financial senior director, joined the Group in July 2023, overseeing operation and daily financial management[120][123] - Ms. Yuan previously served as senior financial manager and financial director at Alipay (Hangzhou) Information Technology Co., Ltd. (Ant Group) from September 2014 to May 2023[120][123] - Ms. Xie Xi, senior merchandise operations director, joined the Group in December 2023, responsible for merchandise planning and allocation management[121][123] - Ms. Xie has over ten years of experience in supply chain and merchandise management, previously working at Decathlon Group and Shanghai Shading Technology Co., Ltd.[122][123] - Mr. Xu Shijian, vice president and chief financial officer, responsible for financial strategic planning, investment and financing, investor relations, legal affairs, and inspection[124][125] - Mr. Xu has over twenty years of experience in finance and corporate management, joined the Group in November 2016, and served as chief financial officer and vice president[125] - Mr. Xu previously served as financial director of Lvcheng E-commerce Co., Ltd. from February 2011 to May 2016[125] - Mr. Xu was a practicing certified public accountant and served as project manager and head of department at Shaoxing Tianyuan Accountant Office from March 2006 to January 2011[125] - Mr. Cheng Bing, Vice President, is responsible for managing new business, including expansion into new channels and development of new product offerings[128] - Mr. Cheng Bing oversees sales and marketing management through third-party e-commerce platforms such as Amazon, Temu, and TikTok[129] - Mr. Peng Yulong, Chief Technology Officer, is responsible for formulating the overall technology strategy and overseeing the design, development, and operation of the company's information products[130] - Mr. Peng Yulong has extensive experience in big data and internet industries, previously serving as the head of data and algorithm product department at Ant Financial[131] - The company's legal compliance matters are managed by Ms. Zheng Huanxin, who serves as the manager of the legal department[133] - Ms. Yu Anne, appointed as one of the joint company secretaries, has over 20 years of experience in the corporate secretarial field[135] - Mr. Hua Bingru was re-designated as a co-chief executive officer of the Group on 27 March 2024[158] - Mr. Chen Caixiong was appointed as a co-chief executive officer of the Group on 27 March 2024, assisting in the overall business development[158] - Mr. Hua Bingru was appointed as Co-CEO on 27 March 2024, assisting the founder and Chairman in leading the company's business development[159] - Mr. Chen Caixiong was appointed as Co-CEO on 27 March 2024[159] Shareholder and Corporate Governance - Mr. Hua Bingru holds a 47.21% stake in the company with 236,056,036 shares[167] - Mr. Wang Weiping holds a 4.52% stake in the company with 22,608,772 shares[167] - Mr. Dong Zhenguo holds a 3.93% stake in the company with 19,634,654 shares[167] - Ms. Hua Hui holds a 2.10% stake in the company with 10,498,364 shares[167] - No significant transactions or contracts involving directors or controlling shareholders were reported during the year[161][162][163] - No changes in directors' resumes were reported except for the appointment of Mr. Hua Bingru as Co-CEO[159] - Compensation for directors and top executives is detailed in Notes 34 and 11 of the consolidated financial statements[159] - Total number of shares issued as of 31 December 2023 is 500,000,000[169] - Mr. Hua holds a 47.21% stake in the company through Hone Ru Trust, Gfxtmyun, and TMY ONE[171] - Ms. Yu holds a 5.02% stake in the company through Wiloru Holding and Hyufeng[171] - Mr. Wang Shijian and Ms. Rao Xingxing each hold an 8.89% stake in the company through Chichiboy Holdings Limited and Xringirl[172] - TMY THREE holds a 5.65% stake in the company[172] - The Group's five largest customers accounted for approximately 3.80% of its total revenue (2022: 0.35%)[176] - The Group's five largest suppliers accounted for 70.5% of total purchases (2022: 66.2%), with the largest supplier contributing approximately 65.4% (2022: 62.8%)[176] - The total number of issued shares as of 31 December 2023 was 500,000,000[182] - The Board did not recommend the payment of a final dividend for the Reporting Period (2022: HK$ 25.0 million)[178] - The Annual General Meeting is proposed to be held on 13 May 2024, with the register of members closed from 8 May to 13 May 2024 for eligibility determination[179][180] - The Share Award Scheme (Existing Shares) was adopted on 15 September 2023, with a maximum award limit of 10% of the Company's issued share capital, equivalent to 50,000,000 shares[189] - The Share Award Scheme (Existing Shares) is valid for a period of approximately 9 years and 6 months from the adoption date, ending on the earlier of the 10th anniversary or when all awarded shares are fully vested, settled, lapsed, forfeited, or canceled[187] - Eligible participants for the Share Award Scheme (Existing Shares) include employees of the Group and individuals who have contributed to the Group's past or long-term growth[185] - The Share Award Scheme (Existing Shares) is administered by the Board, with decisions being final and binding, and is supported by a trustee, Core Trust Company Limited, or its wholly-owned subsidiary, Gongfenxiang One[184] - The maximum number of Shares that may be granted to a selected participant under the Share Award Scheme (Existing Shares) shall not exceed 1% of the Company's total issued Shares during any 12-month period[191] - Awards granted are subject to the acceptance of the grant by the selected participant in the time and manner stipulated in the grant letter, otherwise, the award shall be forfeited[192] - The vesting period and vesting schedule are subject to the discretion of the Board, and the awarded Shares shall vest in the selected participant upon fulfillment of all vesting conditions[193] - No awards have been granted, cancelled, or lapsed under the Share Award Scheme (Existing Shares) since its adoption up to the date of the annual report[194] - The Share Award Scheme (New Shares) was approved by Shareholders and adopted on 1 December 2023, and is to be funded solely by new shares[197] - The purpose of the Share Award Scheme (New Shares) is to provide selected participants with an opportunity to obtain a proprietary interest in the Company and to incentivize contributions to the Company[197] - The Board will administer the Share Award Scheme (New Shares) in accordance with the scheme rules and may appoint a third-party professional service provider as the administrator[198] -

Financial Performance - The total revenue for the first half of 2023 was approximately RMB1,375.3 million, representing a year-over-year increase of approximately 7.7% compared to RMB1,277.5 million in the same period of 2022[11]. - Gross profit for the first half of 2023 was approximately RMB1,001.3 million, reflecting a year-over-year increase of approximately 3.3% from RMB969.1 million in the same period of 2022[11]. - Profit attributable to shareholders for the semi-annual period was approximately RMB10.3 million, a significant decrease of approximately 83.2% compared to RMB61.3 million in the same period of 2022[11]. - Basic and diluted earnings per share for the profit attributable to shareholders was approximately RMB0.02, down from RMB0.13 for the six months ended June 30, 2022[11]. - The Group's revenue for the Reporting Period was approximately RMB1,375.3 million, an increase of approximately 7.7% compared to RMB1,277.5 million in the same period of 2022[13]. - Revenue from third-party e-commerce platforms was approximately RMB1,304.0 million, representing an increase of approximately RMB103.7 million, or approximately 8.6%, compared to RMB1,200.3 million in the same period of 2022[14]. - Revenue from North America was approximately RMB1,286.5 million, an increase of approximately RMB66.4 million, or approximately 5.4%, compared to RMB1,220.1 million in the same period of 2022[19]. - The Group's cost of sales for the Reporting Period was RMB374.0 million, an increase of approximately RMB65.6 million, or approximately 21.3%, compared to RMB308.4 million in the same period of 2022[22]. - Gross profit amounted to approximately RMB1,001.3 million, an increase of approximately RMB32.2 million compared to RMB969.1 million in the same period of 2022, with a gross profit margin of approximately 72.8%, down 3.1 percentage points from 75.9%[24]. - Selling expenses and distribution costs amounted to approximately RMB923.9 million, an increase of approximately RMB85.6 million, or approximately 10.2%, compared to RMB838.3 million in the same period of 2022[33]. - General and administrative expenses increased by approximately RMB10.2 million, or approximately 16.2%, to RMB73.1 million for the Reporting Period compared to RMB62.9 million in the same period of 2022[34]. - Profit before income tax decreased by approximately 85.1% to approximately RMB10.7 million for the Reporting Period from approximately RMB71.3 million for the six months ended 30 June 2022[41]. - Total comprehensive income attributable to shareholders decreased by approximately 83.2% to approximately RMB10.3 million for the Reporting Period from approximately RMB61.3 million for the six months ended 30 June 2022[48]. Operational Efficiency - The company expanded its product categories and focused on various core brand directions to enhance its market presence[7]. - New sales channels, including the Temu platform, were introduced to optimize the Group's revenue structure[7]. - A one-stop sales management system was established to improve operational efficiency through digitalization[8]. - The company adjusted its organizational structure for centralized management and resource allocation to enhance management efficiency[7]. - Sales through third-party e-commerce platforms, particularly on Amazon, contributed significantly to revenue growth[6]. - The company aims to become a world-renowned e-commerce operator in fashion apparel and footwear products[6]. - The company plans to explore new sales channels, such as TikTok, and develop overseas physical stores to achieve broader market coverage[64]. - Continuous upgrades to the product portfolio will cater to diverse fashion preferences and personalized needs, enhancing sales performance of hot-selling products[64]. - The company aims to consolidate brand concentration and implement a high-end branding strategy to increase product added value[64]. - Investment in digitization will be increased to develop IT systems for new product development and refined operation of the entire product lifecycle[65]. - The company will enhance inventory turnover efficiency through expanded sales channels and refined operations to improve inventory structure[65]. - Development of a global supply chain and full digitalization is planned to establish a flexible, efficient, green, and digital global supply chain platform[66]. Financial Position - As of June 30, 2023, the Group had cash and cash equivalents of approximately RMB314.6 million, an increase from approximately RMB294.5 million as of December 31, 2022, representing a growth of about 6.4%[53]. - The Group's total liabilities to total assets ratio (gearing ratio) remained stable at approximately 42.1% as of both June 30, 2023, and December 31, 2022[54]. - As of June 30, 2023, the Group's borrowings amounted to approximately RMB147.6 million and lease liabilities were approximately RMB62.0 million, indicating a total indebtedness of approximately RMB209.6 million[55]. - Total staff costs incurred by the Group during the Reporting Period were approximately RMB110.0 million, reflecting a year-over-year increase of approximately 47.7% compared to RMB74.5 million in the same period of 2022[60]. - The Group did not experience any significant operational difficulties due to fluctuations in currency exchange rates during the Reporting Period[58]. - The Group does not have any pledged assets as of June 30, 2023[58]. - The Group's employee count stood at 1,155 full-time employees as of June 30, 2023, primarily based in mainland China[60]. Corporate Governance - The company has established an Audit Committee consisting of three independent non-executive Directors to ensure compliance with the Listing Rules and Corporate Governance Code[87]. - The interim financial results for the Reporting Period have not been audited but are considered compliant with relevant accounting standards[88]. - The company is committed to maintaining high standards of corporate governance to safeguard shareholder interests and enhance corporate value[83]. - The company has complied with the Corporate Governance Code, except for a deviation regarding the separation of roles between the chairman and the chief executive officer[84]. - The company will continue to review and monitor its corporate governance practices to ensure compliance with the Corporate Governance Code[85]. - The company is governed by a trust structure involving multiple shareholders and their interests in controlled corporations[72]. - The report indicates no other directors or chief executives have interests in the shares as of June 30, 2023[72]. Shareholder Information - As of June 30, 2023, Mr. Hua Bingru holds 261,144,457 shares, representing 52.23% of the shareholding[69]. - Mr. Wang Shijian holds 44,466,717 shares, representing 8.89% of the shareholding[69]. - Mr. Wang Weiping holds 22,608,772 shares, representing 4.52% of the shareholding[69]. - As of June 30, 2023, the total number of shares issued by the company is 500,000,000[70]. - Hone Ru and its subsidiaries collectively hold 236,056,036 shares, accounting for about 47.21% of the total shareholding[74]. - The company has disclosed interests and short positions of substantial shareholders as required by the SFO[73]. - The company did not recommend the payment of an interim dividend for the Reporting Period, consistent with the previous year[82]. Cash Flow and Investments - The company generated cash from operations amounting to RMB 74,881,000, a significant increase from RMB 17,311,000 in the same period of 2022, representing a growth of approximately 333%[119]. - The net cash generated from operating activities for the first half of 2023 was RMB 57,332,000, compared to RMB 12,038,000 in the prior year, indicating a year-over-year increase of about 376%[119]. - The company incurred net cash used in investing activities of RMB 2,962,000 for the first half of 2023, a decrease from RMB 8,325,000 in the same period of 2022, showing an improvement of approximately 64%[120]. - The company reported a net cash used in financing activities of RMB 42,201,000 for the first half of 2023, compared to RMB 3,710,000 in the same period of 2022, representing an increase of approximately 1035%[121]. - The dividends distributed to shareholders amounted to RMB 21,885,000 during the reporting period[117]. Taxation - Current income tax expenses were RMB3.977 million for the Reporting Period, down from RMB11.597 million in the same period of 2022[45]. - The Group's total income tax expense for the six months ended June 30, 2023, was RMB 379,000, down from RMB 10,034,000 in 2022, a decrease of approximately 96.2%[178]. - The corporate income tax rate for the Company's subsidiaries in China is generally 25%, but certain subsidiaries qualified as high-tech enterprises benefit from a reduced rate of 15% for three years[187]. - Several subsidiaries in China qualified as small and micro enterprises, enjoying a corporate income tax rate of 20% for the six months ended June 30, 2023[189]. - A 10% withholding tax is levied on dividends declared by PRC subsidiaries to foreign holding companies, which may be reduced to 5% under certain tax treaty arrangements[191]. Future Outlook - In the second half of 2023, the market will face various unknown challenges, affecting overall performance in the consumer goods market[64]. - The company plans to enhance sales and branding capabilities, with an estimated HK$81.2 million allocated for this purpose, expected to be fully utilized by the end of 2025[97]. - The expected timetable for the use of unutilized net proceeds is by the end of 2025 for various projects[99].

Revenue Performance - Total revenue for the first half of 2023 was approximately RMB1,375.3 million, representing a period-over-period increase of approximately 7.7%[8] - The revenue increase was primarily driven by sales through third-party e-commerce platforms, particularly on the Amazon platform[8] - Revenue from third-party e-commerce platforms was approximately RMB1,304.0 million, an increase of approximately RMB103.7 million or 8.6% compared to RMB1,200.3 million in the same period of 2022[16] - Revenue for the six months ended June 30, 2023, was RMB 1,375,293, an increase of 7.67% compared to RMB 1,277,527 for the same period in 2022[110] - Revenue from self-operated online stores decreased significantly to RMB 28,362 from RMB 74,756, representing a decline of 62.1%[158] Profitability and Expenses - Gross profit for the reporting period was approximately RMB1,001.3 million, reflecting a year-on-year increase of approximately 3.3% from RMB969.1 million in the same period of 2022[13] - The Group's gross profit margin decreased to approximately 72.8%, down 3.1 percentage points from approximately 75.9% in the same period of 2022[26] - Profit attributable to shareholders for the first half of 2023 was approximately RMB10.3 million, a decrease of approximately 83.2% compared to RMB61.3 million in the same period of 2022[13] - Operating profit decreased significantly to RMB 15,825, down 80.01% from RMB 79,113 in the prior year[110] - Selling expenses and distribution costs amounted to approximately RMB923.9 million, representing an increase of approximately RMB85.6 million, or approximately 10.2%, compared to approximately RMB838.3 million in the same period of 2022[35] - General and administrative expenses increased by approximately RMB10.2 million, or approximately 16.2%, to approximately RMB73.1 million compared to approximately RMB62.9 million in the same period of 2022[36] Cash Flow and Financial Position - Cash and cash equivalents increased to RMB 314,550 from RMB 294,539 as of December 31, 2022[113] - The total balance at June 30, 2023, was RMB 775,712,000, a decrease from RMB 787,321,000 at the beginning of the year[119] - Cash generated from operations for the six months ended June 30, 2023, was RMB 74,881,000, significantly up from RMB 17,311,000 in the same period of 2022, marking an increase of approximately 333.33%[121] - Net cash generated from operating activities was RMB 57,332,000 for the six months ended June 30, 2023, compared to RMB 12,038,000 in 2022, reflecting an increase of approximately 376.73%[121] Strategic Initiatives and Future Plans - The company plans to explore new sales channels, including TikTok, and develop overseas physical stores to achieve broader market coverage and drive new business growth[66] - Continuous upgrades to the product portfolio will cater to diverse fashion preferences and personalized needs, enhancing sales performance of hot-selling products[66] - Investment in digitization will be increased to develop IT systems that assist in new product development and refine the entire product lifecycle operation[67] - The company will focus on improving inventory turnover efficiency through expanded sales channels and refined operations[67] - A global supply chain will be developed with full digitalization to establish a flexible, efficient, green, and customer-oriented platform[68] Shareholding and Corporate Governance - As of June 30, 2023, Mr. Hua Bingru holds 261,144,457 shares, representing 52.23% of the shareholding[71] - The company is governed by a trust structure involving multiple shareholders and their interests in controlled corporations[74] - The company continues to maintain compliance with corporate governance standards as outlined in the report[75] - The company has complied with the Corporate Governance Code, except for a deviation regarding the separation of roles between the chairman and the CEO[85] Taxation and Financial Regulations - The corporate income tax rate for subsidiaries in China is generally 25%, but small and micro enterprises may qualify for a reduced rate of 20%[191] - A 10% withholding tax is levied on dividends declared by PRC subsidiaries to foreign holding companies, with a potential reduced rate of 5% if a tax treaty exists[193] - The company's subsidiary in the United States is subject to a profits tax at a rate of 21% plus state tax rates[193] Financial Reporting and Compliance - The interim financial results for the reporting period have not been audited but are considered compliant with relevant accounting standards[90] - The Group's accounting policies remain consistent with those of the annual financial statements for the year ended 31 December 2022[130] - The Group adopted several amended standards effective from 1 January 2023, including IFRS 17 on Insurance Contracts and amendments to IAS 12 regarding deferred tax[133][136]

Financial Performance - Zibuyu Group's revenue for 2022 reached RMB 3,066.3 million, representing a year-on-year increase of 30.7%[17]. - The gross profit for 2022 was RMB 2,347.8 million, compared to RMB 1,765.5 million in 2021, indicating a significant growth[14]. - Profit for the year was RMB 110.7 million, down from RMB 200.5 million in 2021, reflecting the impact of economic challenges[14]. - Total assets as of December 31, 2022, amounted to RMB 1,360.7 million, an increase from RMB 1,019.7 million in 2021[15]. - Total equity increased to RMB 787.3 million in 2022, up from RMB 373.0 million in 2021, showcasing strong financial health[15]. - In 2022, the company's revenue reached approximately RMB 3,066.3 million, representing a year-on-year increase of approximately 30.7%, marking a historical high despite the global economic downturn[19][25]. - Gross profit for the year was approximately RMB 2,347.8 million, reflecting a year-on-year increase of approximately 33.0%[32][34]. - Profit attributable to shareholders decreased by approximately 44.8% to RMB 110.7 million compared to RMB 200.5 million in 2021[32][34]. - Basic and diluted earnings per share were approximately RMB 0.24, down from RMB 0.44 in 2021[32][34]. Market Expansion and Sales Growth - Footwear sales on Amazon increased by over 1.5 times compared to the previous year, indicating strong growth in this category[26][29]. - The company expanded its sales channels by collaborating with platforms such as TEMU, enhancing its sales network[27][29]. - The top ten best-selling brands saw nearly double sales growth year-on-year, showcasing effective brand cultivation capabilities[28][30]. - Revenue from third-party e-commerce platforms was approximately RMB2,939.0 million, representing an increase of approximately RMB886.7 million, or approximately 43.2%, compared to RMB2,052.3 million for the year ended 31 December 2021[39][40]. - Revenue from North America was approximately RMB2,949.3 million, an increase of approximately RMB919.9 million, or approximately 45.3%, compared to RMB2,029.4 million for the year ended 31 December 2021[43][44]. Strategic Initiatives and Future Plans - The company aims to enhance its product development, brand marketing, and multi-channel sales capabilities to improve consumer shopping experiences[16]. - The company aims to enhance its competitiveness by increasing investments in information technology and enriching management talent in design, development, supply chain, and marketing[20][23]. - The company is committed to becoming an internationally renowned operator of fashionable apparel and footwear products, providing timely and seamless service to global consumers[21][23]. - The Group plans to continue expanding sales channels and market coverage as part of its future strategies[107]. - The company anticipates that fiscal year 2023 will be a challenging year due to global economic conditions and high inflation in certain regions[106]. - The company aims to enhance its product innovation capabilities and increase the premium of new products[114]. - The company plans to increase investment in branding to raise the market share of core brands[114]. - The company will continue to invest in digital management capabilities to improve operational efficiency[114]. - The company intends to expand its management talent in supply chain and marketing to strengthen competitive advantages[114]. Management and Governance - Mr. Dong Zhenguo has over nine years of experience in sales and marketing, overseeing the management of self-operated online stores[128]. - Mr. Xu Shijian has more than twenty years of experience in finance and business management, responsible for financial management and compliance[132]. - Ms. Hua Hui was appointed to promote gender diversity at the Board level, having previously served as the sales director for seven years[136]. - The company has expanded its management team with experienced professionals in various roles to enhance operational efficiency[130][134]. - The management team is expected to drive the Group's business development and operational strategies effectively[136]. - The company emphasizes the importance of technology strategies in product development and operational efficiency[156]. - The management team collectively brings years of experience from various industries, contributing to the company's growth and innovation[164]. Risks and Challenges - Major risks include disruptions in relationships with third-party platforms like Amazon and Wish, which could adversely affect business operations[190]. - The company does not manufacture products but relies on OEM suppliers, making it vulnerable to supply shortages or quality issues[190]. - The company recognizes its social responsibilities in monitoring and reducing environmental risks associated with its operations[190]. - The company operates in the competitive cross-border e-commerce export B2C apparel and footwear industry in China, facing risks that could materially affect its customer base, market share, and profitability[193]. - Changes in international trade policies and the ongoing U.S.-China trade conflict could adversely affect the company's business[193]. - The company is subject to risks associated with foreign exchange rate fluctuations[193]. Operational Efficiency - Selling expenses and distribution costs increased by approximately 47.5% to approximately RMB2,085.9 million for the year ended 31 December 2022 from approximately RMB1,413.7 million for the year ended 31 December 2021[59][61]. - General and administrative expenses rose by approximately RMB33.1 million to approximately RMB142.1 million for the year ended 31 December 2022 from approximately RMB109.0 million for the year ended 31 December 2021[60][62]. - The Group's focus on self-operated online stores is a key strategy for driving sales growth and improving customer engagement[128]. - The company emphasizes maintaining good relationships with suppliers and providing high-quality services to customers, which are crucial for creating value[185]. - The management actively establishes risk management and internal control mechanisms to address operational, financial, and regulatory risks[191].

Annual Performance Announcement - The company provided a supplementary announcement regarding its annual performance for the year ended December 31, 2022[1]. - The announcement includes details about the suspension of share transfer registration from June 15 to June 20, 2023, to determine eligibility for the annual general meeting[1]. - All transfer documents must be submitted by June 14, 2023, at 4:30 PM to qualify for the meeting[1]. Governance Structure - The board of directors includes both executive and independent non-executive members, ensuring diverse governance[2].

Financial Performance - Revenue for the year ended December 31, 2022, was RMB 3,066,331 thousand, representing a 30.7% increase from RMB 2,346,543 thousand in 2021[2] - Gross profit for the same period was RMB 2,347,755 thousand, up 33.0% from RMB 1,765,535 thousand in 2021[3] - Profit before tax decreased to RMB 127,190 thousand, down 46.5% from RMB 237,631 thousand in the previous year[3] - Net profit attributable to shareholders was RMB 110,694 thousand, a decline of 44.8% compared to RMB 200,509 thousand in 2021[2] - Basic and diluted earnings per share were RMB 0.24, down from RMB 0.44 in the previous year[3] - Total revenue for the year ended December 31, 2022, was RMB 110,694,000, a decrease from RMB 200,509,000 in 2021, resulting in a basic earnings per share of RMB 0.24 compared to RMB 0.44 in the previous year[29] - The company's net profit attributable to shareholders was approximately RMB 110.7 million, a decrease of about 44.8% compared to RMB 200.5 million in 2021[43] Assets and Liabilities - Total assets increased to RMB 1,360,708 thousand, compared to RMB 1,019,675 thousand in 2021, reflecting a growth of 33.5%[4] - Total liabilities decreased to RMB 573,387 thousand from RMB 646,699 thousand, a reduction of 11.3%[5] - Cash and cash equivalents at year-end rose to RMB 294,539 thousand, significantly up from RMB 80,855 thousand in 2021[6] - The debt-to-asset ratio improved from approximately 63.4% as of December 31, 2021, to about 42.1% as of December 31, 2022, due to the conversion of redeemable convertible preferred shares into ordinary shares and increased equity from retained earnings[63] Revenue Sources - Revenue from third-party e-commerce platforms was RMB 2,939,005,000, up from RMB 2,052,279,000 in the previous year, indicating a growth of 43.0%[14] - The North America region generated revenue of RMB 2,949,292,000 in 2022, a significant increase of 45.4% from RMB 2,029,381,000 in 2021[13] - Revenue through the company's self-operated website decreased to RMB 116,156,000 in 2022 from RMB 257,319,000 in 2021, a decline of 54.8%[14] Expenses - The total cost of sales, selling expenses, and general and administrative expenses for the year ended December 31, 2022, was RMB 2,946,527,000, compared to RMB 2,103,682,000 in 2021, reflecting an increase of 40%[19] - Sales and distribution expenses increased by approximately 47.5% to about RMB 2,085.9 million, primarily due to increased shipping and insurance costs[53] - General and administrative expenses rose to approximately RMB 142.1 million, an increase of about RMB 33.1 million from the previous year[54] Cash Flow - Operating cash flow for the year was RMB 92,084 thousand, recovering from a cash outflow of RMB 207,049 thousand in the previous year[6] - The company issued new shares post-listing, raising RMB 210,818 thousand, contributing to its financing activities[6] Shareholder Information - The company proposed a final dividend of HKD 0.05 per share for the year ended December 31, 2022, totaling approximately RMB 21,885,000, compared to no dividend in 2021[27] - The board proposed a final dividend of HKD 0.05 per share for the year ended December 31, 2022, compared to no dividend in 2021, subject to shareholder approval on June 20, 2023[69] Corporate Governance - The company has adhered to the corporate governance code since its listing, with the exception of the separation of the roles of Chairman and CEO, which are held by the same individual, Mr. Hua[71] - The audit committee, consisting of three independent non-executive directors, has reviewed the audited consolidated results for the year ended December 31, 2022, confirming compliance with applicable accounting principles[76] - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[70] Future Outlook - The company plans to continue expanding sales channels and markets, enhance product innovation capabilities, and increase brand investment to improve market share[68] - The company anticipates that the fiscal year 2023 will remain challenging due to ongoing global economic recovery issues and high inflation in Europe and the United States[67] Inventory and Receivables - The company’s total inventory provision increased to RMB 54,768,000 in 2022 from RMB 21,162,000 in 2021, indicating a growing concern over inventory management[19] - Trade receivables as of December 31, 2022, amounted to RMB 176,792,000, an increase of 47.5% from RMB 119,825,000 as of December 31, 2021[32] - The provision for impairment of trade receivables increased to RMB 884,000 as of December 31, 2022, from RMB 599,000 as of December 31, 2021, indicating a rise in expected credit losses[34] Significant Events - The company went public on November 11, 2022, with shares listed on the Hong Kong Stock Exchange[80] - There were no significant events affecting the group after the fiscal year ended December 31, 2022[70]