Financial Performance - Revenue for the fiscal year ending March 31, 2024, was RMB 72,567 million, a decrease of 13.3% from RMB 83,662 million in the previous year[8]. - Gross profit decreased by 12.7% to RMB 17,958 million from RMB 20,581 million year-over-year[8]. - The company reported an operating loss of RMB 1,009 million, compared to an operating profit of RMB 1,177 million in the previous year, representing a decline of 185.7%[8]. - Net loss for the year was RMB 1,668 million, a significant increase from a profit of RMB 78 million in the prior year, marking a 2,238.5% decline[8]. - Total assets decreased by 5.3% to RMB 60,715 million from RMB 64,118 million year-over-year[9]. - Total liabilities decreased by 2.5% to RMB 38,921 million from RMB 39,921 million[9]. - Net cash decreased by 15.1% to RMB 16,504 million from RMB 19,449 million[9]. - Basic and diluted loss per share was RMB 0.17, compared to earnings of RMB 0.01 per share in the previous year[8]. - For the fiscal year ending March 31, 2024, the revenue from merchandise sales was RMB 69.431 billion, a decrease of RMB 11.104 billion or 13.8% compared to RMB 80.535 billion for the previous fiscal year[16]. - Same-store sales growth was -6.6%, with online B2C business achieving low single-digit positive growth despite a decline in average transaction value[16]. Management Strategy - The company aims to focus on revenue growth by offering more quality products at lower prices to a larger customer base[1]. - The new management team aims to focus on revenue growth and achieving profitability in the fiscal year 2025, emphasizing customer needs and retail fundamentals[15]. - The company plans to accelerate cost reduction and efficiency improvements while developing multi-format and omnichannel strategies[15]. - The new CEO has been appointed to lead the company back to its retail roots, focusing on product quality, pricing, service, and efficiency[14]. - The company is committed to regaining customer trust and loyalty by offering high-quality products at lower prices[14]. - The management expresses confidence in returning to a thriving business model in the new fiscal year[15]. Expenses and Cost Management - Selling and marketing expenses were RMB 18.178 billion, down RMB 0.332 billion or 1.8% from RMB 18.510 billion in the previous year, representing 25.0% of total revenue, an increase of 2.9 percentage points from 22.1%[19]. - Administrative expenses for the year ended March 31, 2024, were RMB 2.251 billion, a decrease of RMB 118 million or 5.0% compared to RMB 2.369 billion for the year ended March 31, 2023[20]. - Financial expenses for the year ended March 31, 2024, were RMB 425 million, a decrease of RMB 29 million or 6.4% compared to RMB 454 million for the year ended March 31, 2023[22]. - Income tax expenses for the year ended March 31, 2024, were RMB 234 million, a decrease of RMB 410 million or 63.7% compared to RMB 644 million for the year ended March 31, 2023[23]. Employee and Talent Management - As of March 31, 2024, the group had 86,226 employees, a decrease from 107,785 employees as of March 31, 2023, with total employee benefits expenditure amounting to RMB 9.558 billion, down from RMB 10.066 billion the previous year[42]. - The group has adopted a stock option plan and a revised employee trust benefit plan to recognize employee contributions and attract high-quality talent, with further details provided in the annual report[42]. - The group is committed to providing ongoing training for employees to enhance their skills and capabilities[42]. - The group aims to align the interests of participants in the stock option plan with those of the company and its shareholders[82]. Corporate Governance - The board of directors is committed to maintaining high standards of corporate governance to protect shareholder interests[178]. - The company has established a code of conduct for securities trading by directors and relevant employees, ensuring compliance with regulations[179]. - The board currently consists of seven members, including one executive director and three independent non-executive directors[182]. - The company maintained compliance with the Listing Rules by having at least three independent non-executive directors, constituting one-third of the board, with two meeting the required professional qualifications[185]. - The Audit Committee held five meetings during the year ending March 31, 2024, reviewing the annual and interim financial performance for the periods ending March 31, 2023, and September 30, 2023[192]. Related Party Transactions - The company has categorized ongoing related transactions with Alibaba Group to better manage long-term business interactions[118]. - The annual cap for procurement of goods and services from Alibaba Group is set at RMB 1.5 billion for the fiscal year ending March 31, 2022, RMB 1.8 billion for the fiscal year ending March 31, 2023, and RMB 2.1 billion for the fiscal year ending March 31, 2024[121]. - The company entered into a business cooperation framework agreement with Taobao China on June 22, 2021, which was approved by shareholders and is effective from September 24, 2021, until March 31, 2024[125]. - The agreements with Alibaba Group are classified as continuing connected transactions, reflecting the ongoing business relationship between the companies[130]. Economic and Market Conditions - The company's sales, revenue, and profitability are heavily influenced by the economic conditions in China[176]. - Fluctuations in exchange rates and government controls on currency exchange may negatively impact the company's ability to pay dividends[177]. - Concerns regarding product safety and quality may significantly impact the company's operating performance[174]. - Any outbreak of serious infectious diseases in China could adversely affect the company's financial performance and growth prospects[175].
高鑫零售(06808) - 2024 - 年度财报