Financial Performance - Total revenue for the year 2023 was RMB 317,353,000, a significant increase from RMB 134,155,000 in 2022[8] - Gross profit for 2023 was RMB 23,846,000, compared to a loss of RMB 3,811,000 in 2022[8] - The company reported a loss attributable to owners of the company of RMB 8,665,000 for the year 2023[8] - The net loss attributable to owners of the company was approximately RMB10.1 million for the Reporting Period, an increase of approximately 12.9% from RMB8.9 million in 2022[16] - The Group recorded a net loss of approximately RMB10.1 million for the Reporting Period, compared to a net loss of approximately RMB8.9 million for the year ended 31 December 2022[48] - Other income decreased by approximately 18.0% from approximately RMB5.4 million for the year ended 31 December 2022 to approximately RMB4.4 million for the Reporting Period, mainly due to a reduction in one-off government grants[33] - Other gains, net for the Reporting Period were approximately RMB2.5 million, a decrease of approximately 41.1% from approximately RMB4.2 million for the year ended 31 December 2022, primarily due to exchange differences from foreign currency translations[34] Revenue Breakdown - The footwear business segment accounted for approximately 76.7% of total revenue in 2023, up from 38.2% in 2022[12] - The entire revenue for 2023 was derived from Mainland China and Hong Kong, totaling RMB317.4 million[28] - The Group recorded footwear revenue of approximately RMB243.4 million for the Reporting Period, representing an increase of approximately 3.7 times from approximately RMB51.3 million for the year ended 31 December 2022[31]. - Revenue from dyeing services decreased by approximately 5.0% from RMB56.1 million in 2022 to RMB53.3 million in 2023[29] - Lace revenue decreased by approximately 22.7% from RMB26.8 million in 2022 to RMB20.7 million in 2023[30] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 492,175,000, an increase from RMB 354,943,000 in 2022[9] - Total liabilities were RMB 176,291,000 in 2023, compared to RMB 29,045,000 in 2022[9] - Total equity decreased to RMB 315,884,000 in 2023 from RMB 325,898,000 in 2022[9] - The Group had net current assets of approximately RMB191.4 million as at 31 December 2023, with a current ratio decreasing from approximately 7.7 times to approximately 2.1 times during the same period[48] - As of December 31, 2023, the Group had cash and cash equivalents of approximately RMB 269.0 million, an increase of 43.1% from RMB 187.9 million in 2022[49] - The Group's borrowings amounted to approximately RMB 36.9 million as of December 31, 2023, compared to nil in 2022[49] - The gearing ratio as of December 31, 2023, was 0.1, indicating the Group's total debt relative to total equity[49] Business Strategy and Operations - The company aims to enhance its market presence and explore new strategies for growth in the coming years[11] - The company plans to gradually reduce investment in the lace manufacturing and dyeing business and shift focus to the footwear business due to its explosive growth[17] - The company aims to enhance production efficiency, reduce operating costs, and strengthen research and development capabilities[18] - The footwear business's growth is expected to continue as the company aligns with fashion trends and market demand[17] - The company is focused on strategic planning and overall budget management to navigate the current economic challenges[68] Management and Governance - The company has undergone significant leadership changes, with new appointments aimed at enhancing operational efficiency and strategic direction[76][77] - The management team brings a wealth of experience from various sectors, enhancing the company's strategic planning and execution capabilities[75][76][78] - The Board consists of four executive Directors and three independent non-executive Directors, ensuring a balanced composition for effective leadership[99] - The Company has adopted corporate governance practices that align with the Corporate Governance Code as set out in the Listing Rules[87] - The Board will continue to review and improve corporate governance practices to ensure compliance with the Corporate Governance Code[89] ESG and Sustainability - The Group has established an ESG governance structure, which includes a Board and an ESG working group, to integrate ESG into business operations[185] - The Group has set targets to reduce emissions from business operations and evaluate the effectiveness of its ESG policies[184] - The Group emphasizes the importance of implementing appropriate ESG strategies for sustainable corporate development[188] - The Group is committed to complying with all relevant laws and regulations related to its business operations, including health and safety and environmental standards[188] - The Group has implemented stringent environmental protection policies to comply with the latest environmental laws and regulations[199] Employee and Operational Efficiency - The total employee benefit expenses for the Reporting Period were approximately RMB 36.4 million, up from RMB 32.4 million in 2022, reflecting a 12.3% increase[55] - As of December 31, 2023, the Group employed 527 employees, an increase of 45.6% from 362 employees in 2022[55] - Selling and distribution expenses increased approximately 8.7 times from approximately RMB1.7 million for the year ended 31 December 2022 to approximately RMB16.2 million for the Reporting Period, in line with the increase in footwear revenue[40] - Administrative expenses increased by approximately 23.6% from approximately RMB14.4 million for the year ended 31 December 2022 to approximately RMB17.8 million for the Reporting Period, mainly due to hiring more staff to manage the footwear business[41] Audit and Compliance - The company maintains an effective internal control and risk management system to safeguard shareholder investments and group assets, with annual reviews conducted by the board[151] - The consolidated financial statements of the Group for the Reporting Period comply with applicable accounting standards and the Listing Rules, with adequate disclosures made[131] - The Company received written annual confirmations of independence from all independent non-executive Directors, affirming their independence as per Listing Rule 3.13[97] - The Company has established an Audit Committee to review the Group Anti-Bribery and Anti-Corruption Policy periodically[88] - The appointment of Mazars CPA Limited as the new auditor took effect on December 4, 2023, following the resignation of PricewaterhouseCoopers[146]
应星控股(01440) - 2023 - 年度财报