Financial Data and Key Metrics Changes - The company achieved a total revenue of 1.6 billion yuan, representing a year-on-year growth of 12% [7] - Net profit reached 170 million yuan, showing a significant year-on-year increase of 200% [7] - Gross margin improved to 44.5% [7] - The company has over 2.9 billion yuan in cash and deposits, maintaining a dividend payout ratio of 80% and a dividend yield of approximately 8% [7][15] Business Line Data and Key Metrics Changes - The home cleaning product line is expected to grow by about 10% [2] - The pet business is viewed as a second growth curve, projected to account for 30% of total revenue in five years, with in-store revenue primarily from live pet sales [2][12] - The company maintains a leading position in the insecticide market for nine consecutive years, with a market share increase of 0.1-0.2% annually [19] Market Data and Key Metrics Changes - The company holds the second position in the home cleaning market, with a gap of about 10 percentage points from the market leader [4][6] - Online sales account for approximately 30% of total sales, with online growth slightly outpacing offline, although offline remains more profitable [8][21] Company Strategy and Development Direction - The company is pursuing a multi-category development strategy, focusing on enhancing market share in home cleaning products and expanding the pet product line [4][12] - Plans to open 100 new stores by the end of the year to strengthen market presence [11] - The company aims to reduce the proportion of insecticide sales to 40%, home cleaning to 30%, and pet products to 30% in the long term [12] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining market leadership and continuing to capture market share from smaller competitors [19] - The company anticipates further cost reductions of 1-2% due to ongoing supply chain reforms [18] - The focus will be on maintaining high-end product sales while ensuring stable growth across traditional and new products [15] Other Important Information - The company has successfully controlled costs through supply chain reforms, resulting in a 2.223% decrease in costs year-on-year and a 3.5 percentage point reduction in sales and management expense ratios [7][8] - The company is exploring investment and acquisition opportunities to enhance competitiveness in the consumer sector [8] Q&A Session Summary Question: What is the product structure for traditional incense and mosquito repellent products? - Management noted that traditional products still generate over 100 million yuan in sales annually, with slight growth observed [1] Question: What is the future strategy for home cleaning products? - The company aims to enhance market share and maintain a competitive edge through new product launches and channel expansion [5][24] Question: What are the main growth drivers for different business segments? - Growth will be driven by market share increases and stable growth in insecticide and home cleaning businesses, while the pet segment will expand through proprietary brands and store openings [12][16] Question: What are the pricing strategies for insecticide and mosquito repellent products? - The company offers a range of pricing from high to low-end products, targeting different consumer demographics [10][17] Question: Are there further cost reduction strategies in place? - A dedicated supply chain reform team is in place, with expectations for continued cost reductions [18] Question: What are the company's competitive advantages in the market? - The company holds the second position in home cleaning market share, with plans to enhance product offerings and expand channels [24]

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Financial Performance - Net profit increased by 164.0% from RMB 65.5 million in 2022 to RMB 172.8 million in 2023, with a net profit margin rising from 4.5% to 10.7%[46] - Pre-tax profit surged by 151.3% from RMB 86.5 million in 2022 to RMB 217.3 million in 2023[45] - Operating cash inflow increased significantly to RMB 326.9 million in 2023, compared to RMB 71.7 million in 2022[47] - Revenue for 2023 increased to 1,615,585 thousand RMB, up from 1,446,638 thousand RMB in 2022, representing an 11.7% year-over-year growth[81] - Net profit for 2023 rose to 172,817 thousand RMB, a significant increase from 65,456 thousand RMB in 2022, marking a 164% growth[81] - Gross profit for 2023 was 718,258 thousand RMB, up from 601,374 thousand RMB in 2022, reflecting a 19.4% increase[81] - Other income for 2023 surged to 123,471 thousand RMB, compared to 76,001 thousand RMB in 2022, a 62.5% increase[81] - Earnings per share (EPS) for 2023 stood at 13.13 RMB cents, up from 4.96 RMB cents in 2022, a 164.7% increase[81] - Profit for the year rose to RMB 175,016 thousand in 2023, compared to RMB 66,101 thousand in 2022[129] - Total comprehensive income for the year was RMB 193,653 thousand in 2023, compared to RMB 171,872 thousand in 2022[129] - Home care segment revenue grew to RMB 1,471,917 thousand in 2023, accounting for 91.1% of total revenue, up from 89.6% in 2022[135] - Total revenue increased to RMB 1,615,585 thousand in 2023, up from RMB 1,446,638 thousand in 2022[135] Cash Flow and Liquidity - Cash and cash equivalents, along with fixed deposits, totaled RMB 2,901.3 million as of December 31, 2023[48] - Cash and cash equivalents at the end of 2023 were 1,543,424 thousand RMB, up from 1,340,980 thousand RMB at the end of 2022, a 15.1% increase[83] - Investment activities used a net cash of 43,930 thousand RMB in 2023, significantly lower than the 1,289,423 thousand RMB used in 2022[83] - The company paid dividends of 84,000 thousand RMB in 2023, down from 96,133 thousand RMB in 2022[83] - Fixed deposits under current assets surged to RMB 1,737,883 thousand in 2023 from RMB 1,455,986 thousand in 2022[124] - Dividends recognized as distributions amounted to RMB 84,000 thousand in 2023, down from RMB 96,133 thousand in 2022[129] - Operating cash flow before working capital changes increased to RMB 190,776 thousand in 2023, up from RMB 48,693 thousand in 2022[132] - Net cash from operating activities rose to RMB 326,915 thousand in 2023, compared to RMB 71,681 thousand in 2022[132] Assets and Liabilities - As of December 31, 2023, the company had no pledged assets[25] - The company's capital gearing ratio increased from 0.6% in 2022 to 1.0% in 2023 due to the rise in lease liabilities and right-of-use assets[49] - The company's total assets minus current liabilities stood at 2,843,250 thousand RMB in 2023, up from 2,838,452 thousand RMB in 2022[66] - The company's non-current assets were 417,855 thousand RMB in 2023, slightly up from 417,853 thousand RMB in 2022[66] - Total assets increased to RMB 2,968,402 thousand in 2023, up from RMB 2,843,250 thousand in 2022[124] - Net current assets decreased to RMB 2,274,316 thousand in 2023 from RMB 2,425,395 thousand in 2022[124] - Total equity increased to RMB 2,937,472 thousand in 2023, up from RMB 2,824,568 thousand in 2022[126] - Trade and other receivables decreased to RMB 87,632 thousand in 2023 from RMB 97,231 thousand in 2022[124] - Inventory levels dropped to RMB 268,033 thousand in 2023 from RMB 319,177 thousand in 2022[124] - Non-current liabilities increased to RMB 30,930 thousand in 2023 from RMB 18,682 thousand in 2022[126] - Contract liabilities increased by RMB 89,866 thousand in 2023, up from RMB 74,653 thousand in 2022[132] Taxation and Financial Costs - Income tax expenses increased by 111.5% from RMB 21.0 million in 2022 to RMB 44.4 million in 2023, driven by higher pre-tax profits[45] - The company's effective tax rate was 20.5% in 2023, lower than the statutory rate of 25%, due to preferential tax rates for high-tech enterprises[45] - Financial costs remained relatively stable at RMB 1.0 million in 2023, compared to RMB 0.9 million in 2022[44] Corporate Governance and Board Structure - The company's board of directors includes three independent non-executive directors with diverse industry backgrounds, accounting for one-third of the board members[14] - The company's gender ratio (including senior management) was approximately 52% male and 48% female as of December 31, 2023[14] - The company encourages directors to participate in continuous professional development to update their knowledge and skills[15] - The company's directors and senior management received at least 15 hours of relevant professional training during the fiscal year ended December 31, 2023[96] - The company's internal control measures include establishing an audit committee, implementing policies to ensure compliance with listing rules, and conducting regular training for employees and management[95] - The company's directors' remuneration is determined based on the time commitment, responsibilities, and performance of the group, with details provided in the annual report[87] - The company's shareholder communication policy was reviewed for implementation and effectiveness during the fiscal year ended December 31, 2023[98] Acquisitions and Investments - The company acquired 100% equity of Guangdong Zhongke Research Cosmetics Technology Co., Ltd., which focuses on scientific analysis, research, and testing of cosmetics, maternal and infant care products, personal care products, and pet products[21] - The company acquired 100% equity of Guangdong Zhongke Research Cosmetics Technology Co., Ltd. for RMB 5.036 million in cash, which was fully paid on April 6, 2023[106] Inventory and Asset Management - The carrying value of finished goods as of December 31, 2023, was approximately RMB 216.786 million, with a provision of approximately RMB 1.982 million[103] - Inventory decreased by RMB 50,689 thousand in 2023, compared to a decrease of RMB 20,649 thousand in 2022[132] - Impairment losses on intangible assets amounted to RMB 9,323 thousand in 2023, with no such losses recorded in 2022[132] - Depreciation of property, plant, and equipment increased to RMB 25,655 thousand in 2023, up from RMB 24,490 thousand in 2022[132] Foreign Exchange and Risk Management - The company faces foreign exchange risks primarily due to deposits denominated in USD and HKD, and closely monitors exchange rate fluctuations while reviewing foreign exchange risk management strategies[24] - Other losses amounted to RMB 10.4 million in 2023, compared to other gains of RMB 9.8 million in 2022, primarily due to valuation changes in investments and exchange rate impacts[43] Revenue Recognition and Financial Reporting - The company's consolidated financial statements for the year ended December 31, 2023, include the impact of a business combination under common control, with revenue increasing by RMB 1.446 million and net profit increasing by RMB 1.371 million[112] - The company's financial statements for the year ended December 31, 2023, were audited by an independent auditor, with key audit matters including the provision for finished goods[101][103] - The company's financial statements reflect the application of revised International Accounting Standard 12, which narrows the scope of exemptions for recognizing deferred tax liabilities and assets[90] - The company recognizes revenue from customer contracts when control of goods is transferred according to agreed delivery terms, and at the point when customers obtain control of specific goods[179] - Goodwill from business acquisitions is recorded at cost established on the acquisition date, less any accumulated impairment losses[177] - The company measures lease liabilities at the present value of unpaid lease payments at the lease commencement date, using the incremental borrowing rate if the implicit lease rate is difficult to determine[181] - Intangible assets with finite useful lives acquired in business combinations are presented at cost less accumulated amortization and any accumulated impairment losses[186] - Deferred tax assets and liabilities are measured at the tax rates expected to apply when the liability is settled or the asset is realized, based on tax rates enacted or substantively enacted at the reporting date[191] - Variable consideration is included in the transaction price only if it is not likely to result in a significant revenue reversal when the uncertainty related to the variable consideration is subsequently resolved[189] - The company uses the effective interest method to calculate the amortized cost of financial assets or liabilities and allocate interest income or expense over the relevant period[173] - Non-controlling interests are initially measured at the proportionate share of the acquiree's identifiable net assets or at fair value, with the measurement basis selected on a transaction-by-transaction basis[171] - The company allocates goodwill to cash-generating units expected to benefit from the synergies of the business combination for impairment testing purposes[168] - The company consolidates subsidiaries from the date it obtains control and ceases consolidation when control is lost, with income and expenses of subsidiaries acquired during the year included from the date control is obtained[175] - The company expects to refund part or all of the consideration received from customers, and records a refund liability (included in trade and other payables)[198] - Revenue from transferred products is recognized based on the amount of consideration the company expects to be entitled to, and no revenue is recognized for products expected to be returned[199] - The consolidated financial statements notes are for the year ended December 31, 2023[200] Interest and Other Financial Metrics - Interest income rose to RMB 91,362 thousand in 2023, compared to RMB 48,065 thousand in 2022[132] - Trade and other receivables decreased by RMB 12,393 thousand in 2023, compared to an increase of RMB 22,921 thousand in 2022[132]

Summary of Conference Call Company/Industry Involved - The conference call is related to Huazhang Securities Research Institute, focusing on the futures investment sector Core Points and Arguments - The call is intended exclusively for a select group of clients, indicating a targeted approach to investor relations [1] - It emphasizes that the content of the meeting does not constitute investment advice, highlighting the importance of personal investment decision-making [1] - Participants are reminded that they bear the responsibility for any investment risks associated with the information provided during the call [1] - Huazhang Securities disclaims any liability for losses incurred by participants due to the use of the meeting content [1] Other Important but Possibly Overlooked Content - The call serves as a reminder of the regulatory framework surrounding futures investment and the importance of suitability management for investors [1]

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 2.90 [2][5]. Core Insights - The company has reversed its profit decline, achieving a net profit increase of 170.4% year-on-year to RMB 175 million in FY23, with a net profit margin of 10.8% [3][5]. - Revenue for FY23 reached RMB 1.62 billion, reflecting a year-on-year growth of 12.0%, driven by a recovery in the home care segment, which saw a revenue increase of 13.5% [3][6]. - The company is expanding its pet store operations, aiming to increase the number of stores to 80-100 in 2024, with expected revenue of RMB 60 million from this segment [4][5]. Financial Performance - The home care category accounted for 91.1% of total revenue in FY23, with a gross margin improvement to 44.5%, the highest since 2019 [3][6]. - The company has effectively reduced costs, with the ratio of sales and administrative expenses to revenue decreasing from 41.5% in FY22 to 37.9% in FY23 [3][5]. - The operating profit margin significantly improved from 6.0% to 13.5% in FY23, indicating enhanced operational efficiency [3][5]. Future Projections - The forecast for FY24 estimates a net profit of RMB 190 million, representing a 6.0% increase year-on-year, with an adjusted gross margin of 44.9% [5][6]. - The company maintains a high dividend payout ratio of approximately 80%, with a projected dividend yield of 7%-8% [5][6].

Investment Rating - The report maintains an "Outperform the Market" rating for the company [12]. Core Views - The company reported a significant recovery in profitability for 2023, achieving a net profit of 1.75 billion RMB, a year-on-year increase of 164.77% [12][17]. - The company has implemented a high dividend policy, with a dividend per share of 0.1050 RMB and a payout ratio of 80% [13]. - The company is actively expanding its offline pet service store layout, marking the first step in its offline thousand-store plan [10]. Financial Performance - In 2023, the company achieved a total revenue of 1.616 billion RMB, representing a year-on-year growth of 11.68% [12]. - The company's gross profit margin reached 44.5% in 2023, an increase of 2.9 percentage points compared to the previous year [17]. - The company expects net profits for 2024-2026 to be 1.83 billion, 1.94 billion, and 1.97 billion RMB, respectively, with growth rates of 4.3%, 6.0%, and 1.7% [12][15]. Business Segments - The company's home care product revenue in 2023 was 1.472 billion RMB, growing by 13.5% year-on-year [10]. - The pet products segment generated revenue of 0.77 billion RMB in 2023, with a modest growth of 0.5% [10]. - Personal care products revenue was 0.61 billion RMB, showing a decline of 4.6% year-on-year, but with a significant improvement in gross margin to 40.3% [10]. Market Positioning - The company is positioned as a leading player in household and personal cleaning products, with a reference PE valuation of 15-16 times for 2024, suggesting a reasonable value range of 2.05-2.19 RMB [12][18]. - The company has a concentrated ownership structure, with the largest shareholder holding 74.25% of the total shares, indicating strong control over dividend policies [13].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% in the next six months [1][11]. Core Views - The company achieved an annual revenue of 1.616 billion yuan in 2023, representing a year-on-year growth of 11.68%, with a net profit of 173 million yuan, up 164.02% year-on-year [9]. - The company continues to maintain a high dividend payout ratio of 80% during the operational period, reflecting strong cash flow management [1]. - The home care segment shows steady growth, with online sales channels maintaining a stable proportion of total revenue [1]. Financial Performance - Revenue breakdown for 2023 includes home care at 1.472 billion yuan (up 13.49%), personal care at 61 million yuan (down 4.55%), and pet products at 77 million yuan (up 0.47%) [1]. - The company's gross margin and net margin for 2023 were 44.46% and 10.70%, respectively, both showing improvements of 2.89 and 6.17 percentage points year-on-year [1]. - The company’s cash and cash equivalents stood at 2.901 billion yuan as of December 31, 2023 [9]. Business Strategy - The home care segment remains the core business, with the company maintaining its leading market position in insecticides and home cleaning products while launching differentiated high-margin products [1]. - In the pet segment, the company is actively building its supply chain and distribution capabilities, expanding its presence through strategic partnerships and investments [1]. - The company is pursuing a multi-channel strategy, integrating online and offline sales to drive growth across various dimensions [1]. Earnings Forecast - Projected revenues for 2024, 2025, and 2026 are 1.788 billion yuan, 1.937 billion yuan, and 2.083 billion yuan, respectively, with corresponding net profits of 183 million yuan, 195 million yuan, and 210 million yuan [3][9]. - The expected earnings per share (EPS) for the same years are 0.14 yuan, 0.15 yuan, and 0.16 yuan, with price-to-earnings (P/E) ratios of 11.46, 10.80, and 10.02 [3][9].

Investment Rating - The report assigns an "Accumulate" rating for the company, marking its first coverage [1][19]. Core Insights - In 2023, the company achieved a revenue of 1.616 billion yuan, representing a year-on-year growth of 11.7%, and a net profit attributable to shareholders of 173 million yuan, reflecting a significant increase of 164% [1][19]. - The company's gross margin improved to 44.5%, up by 2.9 percentage points, while the net profit margin rose to 10.4%, an increase of 6.2 percentage points [1][19]. - The annual dividend payout ratio is approximately 80%, with a dividend yield of around 8%, indicating a strong commitment to returning value to shareholders [1][4]. Revenue and Growth - The company has successfully implemented a multi-brand and multi-category omnichannel strategy, achieving rapid growth both online and offline. Offline revenue reached 1.066 billion yuan, growing by 12.2% year-on-year, while online sales amounted to 550 million yuan, with a year-on-year increase of 10.7% [2][19]. - The home care segment continues to lead the market, with a steady increase in market share. The revenue from home care products was 1.472 billion yuan, up by 13.5% year-on-year, and the gross margin for this segment improved from 41.9% in 2022 to 45% in 2023 [17][19]. Future Projections - The company is expected to continue its growth trajectory, with projected revenues of 1.781 billion yuan, 1.973 billion yuan, and 2.198 billion yuan for 2024, 2025, and 2026, respectively. The net profit is forecasted to be 184 million yuan, 193 million yuan, and 205 million yuan for the same years [19][20]. - The report anticipates that the company will maintain a strong focus on product innovation and channel development, which will enhance profitability across various product lines and sales channels [19].

Investment Rating - The report assigns a rating of "Buy" for the company [2][13]. Core Insights - The company reported a significant increase in profitability for 2023, with total revenue reaching 1.616 billion RMB, a growth of 11.7% year-on-year. Gross profit was 718 million RMB, up 19.4%, and net profit attributable to shareholders was 175 million RMB, reflecting a remarkable increase of 164.8% [11]. - The second half of 2023 saw accelerated revenue growth, with 483 million RMB in revenue, a 23.3% increase, and a net profit turnaround from a loss in the previous year [11]. - The company has raised its EPS forecasts for 2024 and 2025 to 0.14 RMB, with a new forecast for 2026 at 0.15 RMB. The target price has been adjusted to 2.10 RMB based on comparable company valuations [11][13]. Financial Summary - Revenue for 2023 was 1,616 million RMB, with a year-on-year growth of 12.0%. The gross profit margin improved to 51.88%, up 4.4 percentage points, driven by the introduction of differentiated high-end products [11][5]. - The company achieved a net profit margin of 7.98% in the second half of 2023, an increase of 13.5 percentage points, primarily due to a reduction in sales and distribution expenses [11]. - The company’s financial metrics indicate a PE ratio of 39.46 for 2023, which is expected to decrease to 10.37 by 2026, reflecting improved profitability [5]. Business Performance - The company’s revenue from home care products was 428 million RMB, up 20.6%, while the pet business generated 32 million RMB, down 28.6%. The personal care segment saw a slight decline of 5.9% [11]. - Offline sales channels showed significant growth, with revenue of 274 million RMB, a 37.3% increase, while online sales decreased by 6.8% [11]. - The company has expanded its offline presence in the pet business, opening 15 stores under the "爪爪喵星球" brand and 14 stores under "米乐乖乖" by February 2024, enhancing its market coverage [11].

Financial Performance - Revenue increased by 11.7% to RMB 1,615.6 million for the year ended December 31, 2023, compared to RMB 1,446.6 million for the year ended December 31, 2022[10]. - Gross profit rose by 19.4% to RMB 718.3 million, with a gross margin increase of 2.9 percentage points due to ongoing product mix optimization and supply chain reforms[11]. - Net profit surged by 164.0% to RMB 172.8 million, up from RMB 65.5 million in the previous year[10]. - Basic and diluted earnings per share increased by 164.7% to RMB 13.13, compared to RMB 4.96 for the previous year[10]. - Total revenue for the year ended December 31, 2023, was RMB 1,615,585 thousand, an increase of 11.7% from RMB 1,446,638 thousand in 2022[54]. - The company reported a profit attributable to owners of RMB 175,016 thousand for the year ended December 31, 2023, compared to RMB 66,101 thousand for the year ended December 31, 2022[93]. - The company's profit increased by 164.0% from RMB 65.5 million for the year ended December 31, 2022, to RMB 172.8 million for the year ended December 31, 2023[193]. - The net profit margin improved from 4.5% for the year ended December 31, 2022, to 10.7% for the year ended December 31, 2023[193]. Revenue Breakdown - Offline sales channels generated revenue of RMB 1,065.9 million, reflecting a 12.2% increase year-on-year[14]. - Online sales channels also saw growth, with revenue increasing by 10.7% year-on-year, driven by platforms like Douyin and various direct sales channels[11]. - Revenue for the pet and pet product category for the year ended December 31, 2023, was RMB 773 million, an increase of 0.5% compared to the year ended December 31, 2022[29]. - Revenue from online channels for the year ended December 31, 2023, was RMB 5,496 million, representing a growth of 10.7% compared to the previous year[29]. - Revenue from home care products reached RMB 1,471,917 thousand, up from RMB 1,296,901 thousand, reflecting a growth of 13.5%[54]. - Revenue from home care products was RMB 1,471,917,000, accounting for 91.1% of total revenue, up from RMB 1,296,901,000 (89.6%) in the previous year[126]. Dividends and Shareholder Returns - The board declared a final dividend of RMB 0.0640 per share, with a total dividend payout for the year amounting to RMB 0.1050 per share, representing a payout ratio of approximately 80.0%[11]. - The total interim dividend declared for the six months ended June 30, 2023, was approximately RMB 54,667,000, compared to RMB 22,400,000 for the same period in 2022[92]. - The board has resolved to declare a final dividend of RMB 0.0640 per share to shareholders listed on June 26, 2024[181]. Cash and Liquidity - As of December 31, 2023, the company held cash and cash equivalents totaling RMB 2,901.3 million, indicating strong liquidity[11]. - Cash and cash equivalents, including time deposits, amounted to RMB 3,142,059 thousand, compared to RMB 2,364,700 thousand in the previous year[37]. - Operating cash inflow for the year ended December 31, 2023, was RMB 326.9 million, compared to RMB 71.7 million for the year ended December 31, 2022[141]. Strategic Plans and Investments - The company plans to enhance its home care product lineup and expand distribution in the high-end market, focusing on pest control product upgrades and marketing across both online and offline channels[19]. - The company aims to strengthen cost management through supply chain optimization and strategic partnerships to enhance cost competitiveness[19]. - The company plans to continue strengthening its multi-brand and multi-category channel development strategy in 2024[33]. - The company aims to expand its pet business through strategic investments and optimizing mergers and acquisitions[33]. - The company plans to establish and optimize its overseas online and offline sales networks, with an investment of 5.0% of the net proceeds, totaling RMB 120.9 million[178]. - The company is expected to fully utilize the funds for various strategic initiatives by the end of 2026[178]. Acquisitions - The company acquired 100% equity of Guangdong Zhongke Research Cosmetics Technology Co., Ltd. for RMB 5,036,000 thousand, completed on April 6, 2023[43]. - The company also acquired 75.0% of Shenzhen Mile Cloud Information Technology Co., Ltd. on September 21, 2023, focusing on pet products and services[173]. Cost Management and Efficiency - The company aims to deepen its digital strategy with an investment of RMB 241.9 million, anticipated to be fully utilized by the end of 2026[1]. - Continuous supply chain reforms are being implemented to enhance operational performance and profitability[31]. - The company is focused on product innovation and upgrading to improve the proportion of high-margin products[30]. Employee and Operational Metrics - The total employee count rose to 1,040 as of December 31, 2023, from 919 as of December 31, 2022, with total employee costs increasing to RMB 173.5 million from RMB 158.8 million year-over-year[176]. - The company reported a total employee cost of RMB 173,485,000 for the year ended December 31, 2023, compared to RMB 158,762,000 in 2022, reflecting an increase of approximately 9.3%[114]. Financial Position and Assets - Non-current assets totaled RMB 694,086 thousand, an increase of 66.1% from RMB 417,855 thousand in the previous year[37]. - Current assets net value was RMB 2,274,316 thousand, down from RMB 2,425,395 thousand, a decrease of 6.2%[37]. - The company’s total liabilities were RMB 3,160,304 thousand, reflecting a significant increase compared to the previous year[37]. - The company's goodwill increased to RMB 6,280 thousand from RMB 3,925 thousand, a growth of 60.0%[37]. - The company's reserves increased to RMB 2,927,363 thousand from RMB 2,817,269 thousand, an increase of 3.9%[39]. - The group's net asset value as of December 31, 2023, is RMB 2,937,472,000, an increase from RMB 2,824,568,000 in 2022, representing a growth of approximately 4%[63].