Revenue and Profit Performance - Revenue for 2023 was RMB 11,390.6 million, a slight increase of 0.7% compared to RMB 11,312.0 million in 2022[2] - Net profit attributable to owners of the company increased by 11.9% to RMB 361.7 million in 2023 from RMB 323.3 million in 2022[2] - Total revenue increased by 0.7% from RMB 11,312.0 million in 2022 to RMB 11,390.6 million in 2023, with fruit and other food sales accounting for 97.2% of total revenue[25] - Net profit increased by 11.1% from RMB 306.1 million in 2022 to RMB 340.0 million in 2023, with the net profit margin rising from 2.71% to 2.98%[43] - Adjusted net profit (non-HKFRS measure) for 2023 was RMB 342.2 million, with an adjusted net profit margin of 3.00%[45] - Revenue for 2023 was RMB 11,390.6 million, an increase from RMB 11,312.0 million in 2022[65] - Net profit attributable to the company's owners for 2023 was RMB 361.7 million, up from RMB 323.3 million in 2022[65] - Total revenue for 2023 reached RMB 11,390,555 thousand, a slight increase from RMB 11,311,995 thousand in 2022[77] - Net profit attributable to the company's owners for 2023 was RMB 361,717 thousand, up from RMB 323,297 thousand in 2022[86] Retail and Franchise Operations - Total retail sales for 2023 were RMB 14,171.3 million, a decrease from RMB 14,580.7 million in 2022[5] - The company's total number of stores increased to 6,093 in 2023, with a net addition of 443 stores compared to 2022[4][10] - Fruit and food sales accounted for 97.2% of total revenue in 2023, with franchise stores contributing 74.62% of total revenue[2][3] - Total retail stores increased by 7.8% to 6,093 as of December 31, 2023, compared to 5,650 in 2022, driven by the company's strategy to expand and develop its retail store network[11] - Revenue from franchise stores accounted for 99.4% of total product sales revenue in 2023, amounting to RMB 8,499.789 million, slightly down from 99.3% in 2022[12] - Revenue from franchised stores decreased by 4.0% from RMB 8,851.5 million in 2022 to RMB 8,499.8 million in 2023, despite a 5.3% increase in the number of franchised stores to 4,818[30] Overseas and Direct Sales - Overseas direct sales grew significantly to RMB 250.0 million in 2023, up from RMB 154.4 million in 2022[5] - Revenue from direct sales of fruits and other food products increased by 42.5% to RMB 1,031.5 million in 2023, with overseas market sales growing by 62.0% year-on-year[16] - Direct sales revenue grew by 42.5% from RMB 723.8 million in 2022 to RMB 1,031.5 million in 2023, driven by growth in both overseas and domestic markets[28][29] - Revenue from overseas 2B customers increased by 62.0% from RMB 154.4 million in 2022 to RMB 250.0 million in 2023, while domestic 2B revenue grew by 37.2% from RMB 569.4 million to RMB 781.5 million[29] - Revenue from Indonesia saw significant growth, increasing to RMB 92,380 thousand in 2023 from RMB 52,272 thousand in 2022[77] - Revenue from Singapore more than doubled to RMB 62,498 thousand in 2023 from RMB 29,736 thousand in 2022[77] Membership and Online Sales - Membership increased to 83,905 thousand in 2023, compared to 74,029 thousand in 2022[5] - The company's membership base exceeded 83 million, with paid members reaching 1,170 thousand, and WeChat mini-program users grew by 26% to 68 million by the end of 2023[14] - Online orders accounted for 27.6% of total orders in 2023, with the number of WeChat store groups increasing to 27,455 and WeChat fan group followers surpassing 16.2 million, a 25.6% year-on-year growth[14] - The company's content on platforms like Douyin and Weibo during the 2023 Delicious Fruit Festival garnered over 120 million views, and Douyin channel sales increased by 190% compared to 2022[15] Product and Brand Performance - Signature and Grade A fruits accounted for 66.5% of the total retail sales in Baiguoyuan stores as of December 31, 2023[17] - The company launched 6 new signature fruit brands in 2023, bringing the total to 37, with all self-owned brand fruits contributing 14.0% to the total retail sales in Baiguoyuan stores[17] - Sales of fruit corn increased by 3,076% and Golden Venus apples by 515% in 2023 compared to 2022[17] Supply Chain and Logistics - The company operates 29 warehouses across China with a total area exceeding 207,000 square meters, of which 16 are self-operated and 13 are managed by regional agents[18] - Transportation costs decreased by 4.7% in 2023 due to the upgraded Transportation Management System (TMS)[18] - The proportion of fruit procurement from suppliers receiving agricultural technology and related services increased from 35.0% in 2022 to 41.0% in 2023[18] - The company completed the construction of 16 origin warehouses in collaboration with 16 suppliers, covering 10 types of fruits across 11 provinces[18] - Inventory turnover days increased slightly from 10.7 days in 2022 to 12 days in 2023, mainly due to increased overseas direct sales of fruits with longer storage periods such as apples[61] - Trade receivables turnover days decreased from 36.7 days in 2022 to 35 days in 2023, primarily due to proactive collection efforts by the company[61] Financial Position and Cash Flow - Cash and bank balances increased from RMB 1,776.2 million in 2022 to RMB 2,537.1 million in 2023, including unrestricted cash and cash equivalents of RMB 2,224.8 million[48] - Net assets increased from RMB 3,019.5 million in 2022 to RMB 3,337.1 million in 2023, with current assets of RMB 5,265.8 million and current liabilities of RMB 3,517.6 million[47] - Net proceeds from the global offering amounted to HKD 474.0 million, with HKD 229.5 million (48.4%) allocated for improving and upgrading operational and supply chain systems[51] - The company's debt-to-asset ratio increased from 44.2% at the end of 2022 to 56.8% at the end of 2023, primarily due to increased bank borrowings[54] - As of December 31, 2023, the company had non-current bank borrowings of RMB 126.3 million and short-term bank borrowings of RMB 1,768.9 million[54] - Net cash used in operating activities for the year ended December 31, 2023, was RMB 48.5 million, compared to net cash generated from operating activities of RMB 589.2 million in the previous year[55] - Net cash generated from financing activities for the year ended December 31, 2023, was RMB 414.9 million, driven by net proceeds from bank borrowings of RMB 560.3 million and IPO proceeds of RMB 426.8 million[56] - The company held RMB 180.4 million in structured deposits (classified as financial assets at fair value through profit or loss) as of December 31, 2023[57] - Capital expenditures for the year ended December 31, 2023, amounted to RMB 112.6 million, primarily for the construction of a new office building in Shenzhen[58] - Total assets increased to RMB 7,590,985 thousand in 2023, up from RMB 6,809,741 thousand in 2022, reflecting a growth of 11.5%[67] - Property, plant, and equipment rose to RMB 521,842 thousand in 2023, a 15.9% increase compared to RMB 450,153 thousand in 2022[67] - Cash and cash equivalents surged to RMB 2,114,823 thousand in 2023, a significant 44.3% increase from RMB 1,465,908 thousand in 2022[67] - Total liabilities grew to RMB 4,253,889 thousand in 2023, up 12.2% from RMB 3,790,250 thousand in 2022[68] - Bank borrowings under current liabilities increased to RMB 1,768,876 thousand in 2023, a 43.7% rise compared to RMB 1,231,191 thousand in 2022[68] - Net assets expanded to RMB 3,337,096 thousand in 2023, up 10.5% from RMB 3,019,491 thousand in 2022[68] - Equity attributable to owners of the company increased to RMB 3,224,972 thousand in 2023, a 9.1% growth from RMB 2,954,686 thousand in 2022[68] - Non-current assets grew to RMB 2,325,137 thousand in 2023, up 11.8% from RMB 2,080,119 thousand in 2022[67] - Trade receivables decreased to RMB 1,063,440 thousand in 2023, down 4.9% from RMB 1,118,438 thousand in 2022[67] - Long-term bank deposits increased significantly to RMB 110,000 thousand in 2023, up 450% from RMB 20,000 thousand in 2022[67] - Trade receivables decreased to RMB 1,063,440 thousand in 2023 from RMB 1,118,438 thousand in 2022, with a provision for impairment of RMB 53,824 thousand[88] - Trade receivables aged 0-90 days accounted for RMB 765,132 thousand in 2023, down from RMB 803,891 thousand in 2022[88] - Trade payables decreased to RMB 364,158 thousand in 2023 from RMB 509,916 thousand in 2022, with the majority aged 0-30 days[90] Strategic Initiatives and Business Restructuring - The company strategically restructured into three business groups: Retail, 2B, and Category, to enhance operational efficiency and explore new revenue sources[9] - The company completed its global offering and H-share listing on the Hong Kong Stock Exchange in January 2023, marking a significant milestone[9] - The company plans to enhance retail store profitability and expand the OMO distribution network in 2024[20] - The company aims to strengthen its 2B business by deepening cooperation with existing clients and expanding the 2B customer base[21] - The company will continue to invest in information technology to accelerate digital transformation across the entire supply chain[23] - The company completed a global offering and listing in Q1 2023, raising net proceeds of approximately HKD 474.0 million[46] Expenses and Costs - Gross profit slightly increased by 0.04% from RMB 1,314.3 million in 2022 to RMB 1,314.8 million in 2023, with gross margin decreasing from 11.6% to 11.5%[32] - Other income decreased by 9.8% from RMB 40.8 million in 2022 to RMB 36.8 million in 2023, mainly due to reduced government subsidies and franchisee penalty income[33] - Net other gains increased by 16.7% from RMB 25.4 million in 2022 to RMB 29.6 million in 2023, primarily due to foreign exchange gains from overseas direct sales[34] - Selling expenses decreased by 3.4% from RMB 498.8 million in 2022 to RMB 482.0 million in 2023, driven by reduced transportation costs and a decrease in sales and marketing staff[35] - Management expenses decreased by 2.5% from RMB 321.6 million in 2022 to RMB 313.5 million in 2023, primarily due to a reduction in the number of management personnel from 538 to 525[36] - Financial asset impairment loss provisions increased from RMB 2.2 million in 2022 to RMB 23.5 million in 2023, mainly due to increased trade receivables aged over one year and defaults by some 2B enterprise clients[37] - R&D expenses decreased by 15.8% from RMB 173.0 million in 2022 to RMB 145.6 million in 2023, driven by a reduction in R&D personnel from 491 to 361[38] - Financial income increased by 28.7% from RMB 31.8 million in 2022 to RMB 40.9 million in 2023, mainly due to higher interest income from bank deposits[39] - Profit before tax increased by 10.0% from RMB 346.4 million in 2022 to RMB 381.0 million in 2023[41] - Depreciation and amortization expenses decreased to RMB 127,324 thousand in 2023 from RMB 128,358 thousand in 2022[75][76] - Financial costs net of income decreased to RMB 34,902 thousand in 2023 from RMB 51,968 thousand in 2022[83] - Income tax expense for 2023 was RMB 41,041 thousand, slightly higher than RMB 40,225 thousand in 2022[84] Dividends and Shareholder Returns - The company proposed a final dividend of RMB 0.043 per share for 2023, totaling approximately RMB 68.3 million[6] - The company proposed a final dividend of RMB 0.043 per share for 2023, totaling approximately RMB 68,307 thousand, subject to shareholder approval[91] - The final dividend will be paid in RMB for non-listed shareholders and in HKD for H-shareholders, with a 10% withholding tax for non-resident enterprise shareholders[92] Legal and Compliance - The company had no contingent liabilities, guarantees, or litigation as of December 31, 2023[59] - The company's subsidiary, Guangdong Baiguoyuan Agricultural Products Primary Processing Co., Ltd., won a lawsuit against a domestic bank for a financial contract dispute involving RMB 20.0 million[97] - The company maintained sufficient public float as required by the listing rules, with at least 25% of the total registered share capital held by the public[96] - The audit committee reviewed the company's accounting principles and financial statements for 2023, confirming compliance with applicable accounting standards[98] - The company's auditor, PricewaterhouseCoopers, confirmed the consistency of the financial data in the announcement with the draft consolidated financial statements for 2023[99] ESG and Corporate Governance - The 2023 Environmental, Social, and Governance (ESG) report will be published on the company and Hong Kong Stock Exchange websites in accordance with listing rules[102] - The board of directors expresses gratitude to shareholders, management team, employees, business partners, and customers for their support and contributions[103] Employee and Supplier Information - The company had a total of 2,637 employees as of December 31, 2023, with 18.7% in marketing, 15.7% in operations and store management, 20.4% in production and logistics, and 13.7% in IT[62] - Total employee benefit expenses for 2023 were RMB 653.2 million, accounting for approximately 5.7% of the company's total revenue for the year[62] - The company's largest supplier accounted for approximately 5.3% of total procurement costs in 2023, while the top five suppliers accounted for 19.0% of total procurement costs[63] - The company's largest customer contributed approximately 1.7% of total revenue in 2023, while the top five customers accounted for 7.4% of total revenue[63] - The company's distributable reserves as of December 31, 2023, were approximately RMB 300.0 million[64] Financial Instruments and Investments - The company subscribed to structured time deposit wealth management products issued by Bank of Communications with a total principal of RMB 350 million, with expected annualized returns of 1.75%, 3.00%, or 3.02% depending on the benchmark price[60] Earnings Per Share - Basic earnings per share increased to RMB 22.97 cents in 2023 from RMB 21.55 cents in 2022[86] - Diluted earnings per share for the year ended December 31, 2023, were the same as basic earnings per share due to no issuance of potentially dilutive ordinary shares[87] Public Information and Reporting - The company's 2023 annual performance announcement and annual report are available on the company's website (www.pagoda.com.cn) and the Hong Kong Stock Exchange website (www.hkexnews.hk)[101]
百果园集团(02411) - 2023 - 年度业绩