Financial Performance - Revenue decreased from RMB 3,618.9 million in 2021 to RMB 2,675.3 million in 2022, representing a decline of approximately 26.1%[6] - Gross profit fell from RMB 2,360.6 million in 2021 to RMB 1,699.6 million in 2022, a decrease of about 28.0%[6] - Net profit for 2022 was RMB 137.1 million, down from RMB 338.8 million in 2021, indicating a decline of approximately 59.6%[6] - Skincare revenue decreased by 27.4% from RMB 2,679.7 million in 2021 to RMB 1,944.8 million in 2022, while maternal and infant care revenue decreased by 21.6% from RMB 901.9 million to RMB 706.7 million[23] - The company's total comprehensive income for the year was RMB 330,623,000, down from RMB 338,771,000 in the previous year, reflecting a decrease of about 2%[178] - The company's operating cash flow for 2022 was RMB 36,561,000, a significant decrease from RMB 335,193,000 in 2021, reflecting a decline of approximately 89%[180] Dividend and Shareholder Returns - The board proposed a final dividend of RMB 0.25 per share for the year ended December 31, 2022, compared to RMB 0.56 per share for the previous year[6] - The proposed final dividend for the year ended December 31, 2022, is RMB 0.25 per share, compared to approximately RMB 0.56 per share in 2021[112] Brand Strategy and Market Position - The company focuses on a multi-brand strategy, successfully launching several cosmetic brands including Han Shu, Yi Ye Zi, and Hong Se Xiao Xiang to meet diverse consumer needs[7][8] - The company aims to consolidate its three main brand core positions to drive overall performance growth[8] - The company continues to leverage its multi-brand strategy to seize market opportunities and differentiate itself from competitors[7] Revenue Breakdown by Brand - Han Shu generated revenue of RMB 1,267.4 million in 2022, a decrease of 22.3% compared to 2021, accounting for 47.4% of total annual revenue[9] - Yi Ye Zi's revenue in 2022 was RMB 529.9 million, down 36.2% from 2021, representing 19.8% of total annual revenue[9] - Hong Se Xiao Xiang's revenue for 2022 was RMB 655.1 million, a decrease of 24.8% year-over-year, contributing 24.5% to total annual revenue[11] - Total revenue from the three main brands in 2022 was RMB 2,452.4 million, reflecting a decline of 26.4% from 2021, and accounting for 91.7% of total revenue[11] Research and Development - Research and development expenses for 2022 were RMB 110.3 million, representing 4.1% of total revenue, compared to RMB 104.7 million and 2.9% in 2021[14] - New product launches in 2022 included the TIRACLE PRO and blue copper peptide series, which received multiple awards for innovation[9] - Yi Ye Zi is being repositioned to focus on natural plant-based skincare, with a new product line featuring Gansu olive leaf extract[10] - The company plans to enhance its R&D activities in plant extraction technology and skin barrier repair for Yi Ye Zi[10] Financial Position and Assets - The total assets increased from RMB 2,274.6 million in 2021 to RMB 3,145.7 million in 2022[17] - As of December 31, 2022, cash and cash equivalents amounted to RMB 1,147.7 million, up from RMB 145.2 million in 2021[31] - The debt-to-equity ratio increased from 29.9% in 2021 to 42.7% in 2022, indicating a higher leverage position[32] Corporate Governance - The board consists of a balanced mix of executive and non-executive directors, ensuring independent judgment[52] - The company has established appropriate liability insurance for directors and senior management, which is reviewed annually[57] - The board is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[50] - The company has confirmed that all directors complied with the trading standards during the relevant period[51] Risk Management - Major risks identified include business risks, financial risks, compliance risks, insider information risks, and internal control risks[80] - The company has established a risk management framework to identify and control significant risks, ensuring business objectives are met and compliance with regulations is maintained[81] Employee and Management Structure - The total number of full-time employees as of December 31, 2022, is 2,572, with 2,505 located in mainland China and 67 in Japan[35] - The company has achieved a gender diversity ratio of 84.91% female employees (2,184) and 15.09% male employees (388) across the organization[75] Audit and Compliance - The audit opinion confirms that the consolidated financial statements present a true and fair view of the group's financial position as of December 31, 2022[164] - The independent auditor confirmed that there were no findings indicating that disclosed continuing connected transactions were not approved by the board[131] Shareholder Communication - The company is committed to effective communication with shareholders, particularly through annual general meetings and other shareholder meetings[91] - The company encourages shareholder participation in annual general meetings and provides various communication channels for shareholder inquiries[95] Future Plans and Utilization of Proceeds - 32% of the net proceeds, approximately HKD 275.5 million, is allocated for brand building activities to enhance brand recognition and establish new brand images, expected to be fully utilized by the end of 2026[100] - The company plans to gradually utilize the net proceeds based on current market conditions and business needs, with adjustments as necessary[102]
上美股份(02145) - 2022 - 年度财报