Financial Performance - Total revenue for the year ended December 31, 2022, was approximately RMB 1,719.1 million, an increase from RMB 1,610.3 million in 2021[26]. - The group recorded a profit of approximately RMB 116.5 million for the year ended December 31, 2022, compared to RMB 86.5 million in 2021, representing a year-on-year increase of 34.7%[34]. - The company's gross profit decreased to approximately RMB 1,098.4 million in 2022, with a gross margin of 63.9%, down from RMB 1,138.4 million and 70.7% in 2021[51]. - The company recorded a pre-tax profit of approximately RMB 137.3 million for the year ended December 31, 2022, compared to RMB 113.7 million in 2021[56]. - Financial asset impairment for the year ended December 31, 2022, was approximately RMB 6.0 million, compared to a reversal of impairment losses of RMB 3.5 million in 2021, primarily due to an increase in overdue trade receivables[31]. - The financing cost decreased from approximately RMB 0.8 million in 2021 to RMB 0.6 million in 2022, attributed to reduced interest expenses on lease liabilities[32]. Sales Channels - Offline channel sales revenue as a percentage of total revenue decreased from 63.5% in 2021 to 57.8% in 2022, while online channel sales revenue increased from 36.5% to 42.2%[27]. - Online channel sales increased to RMB 725.6 million, representing 42.2% of total sales, up from RMB 587.4 million or 36.5% in 2021[50]. - New channel business revenue surged to RMB 179.5 million, accounting for 10.4% of total sales, compared to RMB 24.9 million or 1.5% in 2021[50]. - The group believes that offline retail channels will continue to play a significant role in connecting with consumers despite the challenges posed by the COVID-19 pandemic[20]. Brand and Market Strategy - The brand "五谷磨房" contributed a GMV of approximately RMB 670.0 million in 2022, representing a year-on-year growth of 63.4%[42]. - The group aims to focus on health grain foods and adopt a multi-brand and omnichannel strategy to capture diverse consumer demands and retail opportunities[38]. - The group plans to enhance brand communication targeting new generation consumers through social media platforms like Douyin and Xiaohongshu, promoting product attributes of health, convenience, and fashion[18]. Operational Efficiency - Operating expenses for sales and distribution decreased to approximately RMB 891.0 million in 2022 from RMB 954.4 million in 2021[53]. - Trade payables turnover days remained stable at approximately 43 days as of December 31, 2022[36]. - The company maintained a stable trade receivables turnover period of approximately 39 days as of December 31, 2022[59]. - As of December 31, 2022, the company's inventory remained stable at approximately RMB 819 million, with a decrease in inventory turnover days due to strict inventory control measures[83]. Human Resources - Employee costs (excluding director remuneration) totaled RMB 1,563 million for the year ended December 31, 2022, an increase of approximately 0.3% compared to RMB 1,558 million in 2021[87]. - As of December 31, 2022, the company employed 697 staff, a decrease from 713 staff as of December 31, 2021[87]. - The total number of employees in the group was 697, with a gender ratio of approximately 1:2 (227 male and 470 female employees)[116]. - The company has maintained a stable employee gender ratio over the past five years, which is deemed appropriate for its business in natural health food manufacturing and sales[116]. Corporate Governance - The board is responsible for overseeing the management of the company's business affairs and overall performance[79]. - The company is committed to fulfilling its responsibilities to shareholders and enhancing shareholder value through good corporate governance[101]. - The board of directors will continue to review and monitor the company's corporate governance in accordance with the corporate governance code[102]. - The board consists of 7 members, including 2 executive directors, 2 non-executive directors, and 3 independent non-executive directors[106]. - The company has adopted a share option plan to provide incentives to directors, eligible employees, and third-party service providers[88]. - The board has established three committees: the audit committee, remuneration committee, and nomination committee, each with defined terms of reference[161]. Risk Management - The company has implemented strict internal control and risk management measures to ensure operational and financial performance[79]. - The board is responsible for assessing the nature and extent of risks acceptable to the company while ensuring effective risk management and internal control systems are in place[156]. - The group’s risk management and internal control systems include annual plans based on significant potential risks related to financial reporting, operations, and compliance[192]. - The audit committee is responsible for monitoring the integrity of the company's financial statements and reviewing significant judgments made in financial reporting[163]. Shareholder Engagement - The company has established procedures for shareholders to propose matters at general meetings, ensuring transparency and shareholder engagement[177]. - Shareholders can request the board to convene a special general meeting if they hold at least 10% of the paid-up capital with voting rights[196]. - The company encourages feedback from shareholders and the public, welcoming inquiries and suggestions through designated communication channels[183].
五谷磨房(01837) - 2022 - 年度财报