Financial Performance - Total revenue for the year ended December 31, 2023, was approximately RMB 177.7 million, an increase of about 10.4% compared to RMB 160.9 million in 2022[9] - The company recorded a loss attributable to owners of approximately RMB 45.3 million for 2023, an improvement from a loss of RMB 70.9 million in 2022[9] - The gross profit for 2023 was RMB 41.7 million, compared to RMB 31.6 million in 2022, indicating a recovery in profitability[9] - Revenue for the reporting period was approximately RMB 177.7 million, an increase of about RMB 16.8 million or approximately 10.4% compared to the same period last year (RMB 160.9 million) [15] - ODM product segment revenue was approximately RMB 135.0 million, up about RMB 15.3 million or approximately 12.8% from last year's RMB 119.7 million, primarily due to increased export orders, particularly a 142.4% increase in orders to the United States [15] - Gross profit for the reporting period was approximately RMB 41.7 million, an increase of about RMB 10.1 million or approximately 32.0% compared to last year's RMB 31.6 million [17] - Other income and gains amounted to approximately RMB 18.7 million, an increase of about RMB 11.8 million or approximately 171.0% compared to last year's RMB 6.9 million, driven by increased rental income and a settlement agreement resulting in RMB 3.5 million in litigation compensation [18] - Administrative and other expenses decreased by approximately RMB 9.2 million or about 14.7%, totaling RMB 53.2 million compared to RMB 62.4 million last year [20] - Financial costs increased by approximately RMB 1.4 million or about 30.4%, reaching RMB 6.0 million compared to RMB 4.6 million last year, mainly due to the cessation of interest capitalization on a specific construction loan [21] Store Operations - The company closed 32 underperforming stores and opened 23 new stores, resulting in a total of 111 self-operated retail stores and 12 franchise stores as of December 31, 2023[10] - As of December 31, 2023, the company operates a total of 111 retail stores across 12 provinces, municipalities, and autonomous regions in China[122] Workforce and Employment - The company maintained a workforce of 607 full-time employees as of December 31, 2023, a decrease from 642 employees in 2022[14] - The employee distribution as of December 31, 2023, includes 262 males and 345 females, totaling 607 full-time employees[195] - The overall employee turnover rate for 2023 is 77%, with male turnover at 85% and female turnover at 71%[195] - The total amount of employee compensation is based on performance, qualifications, and the company's operational performance, with no payments made to the top five highest-paid individuals during the reporting period[38] - The company provides competitive benefits to attract and retain talent, ensuring compliance with local labor laws[198] - The company adheres to fair and just principles in recruitment and promotion, ensuring equal opportunities for all employees regardless of various factors[200] - Recruitment channels include job fairs, internal referrals, online job postings, advertisements, headhunting, and campus recruitment[200] - The company has established an Employee Performance Assessment Management System to guide performance evaluations[200] - Performance evaluations are conducted annually to assess employee performance comprehensively[200] - Promotion opportunities are based on individual performance and skills, ensuring equal chances for all employees to showcase their expertise[200] - The Human Resources Department uses assessment results as a basis for promotions, salary increases, rewards, transfers, and training[200] Research and Development - Research and development expenses for product design and development were approximately RMB 17.1 million in 2023, down from RMB 21.2 million in 2022[11] - The company has invested $5 million in research and development for new technologies aimed at improving production processes[64] - New product development initiatives are underway, focusing on innovative materials that are expected to enhance product quality and customer satisfaction[64] Corporate Governance - The board consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors[70] - The company has adopted a strict code of conduct for securities trading by directors, ensuring compliance with the listing rules[69] - All independent non-executive directors have confirmed their independence according to the listing rules, ensuring effective governance and oversight[73] - The company has established a three-year service agreement for all directors, with provisions for reappointment and termination[74] - The board is responsible for the overall development strategy and financial performance monitoring of the group[77] - The company has arranged appropriate directors' liability insurance to cover responsibilities arising from company activities[81] - All directors participated in training related to their duties and responsibilities during the reporting period[82] - The company has complied with all applicable corporate governance codes, with the exception of a specific provision regarding the dual role of the chairman and CEO[68] - The nomination committee is responsible for reviewing the composition of the board and overseeing the appointment of directors[76] - The board will review its structure periodically to ensure an appropriate balance of power between the board and management[72] - The company held four board meetings and one annual general meeting during the reporting period, with all executive directors attending all meetings[84] - The Nomination Committee reviewed the board's structure, size, and composition, and assessed the independence of independent non-executive directors during its meeting[87] - The board currently consists of seven directors, with five male and two female members, reflecting a commitment to gender diversity[88] - The Nomination Policy has been formally adopted to ensure a balanced skill set and diverse perspectives among board members[91] - The company aims to maintain gender diversity in its hiring and management policies as part of its business development strategy[89] - The Nomination Committee is composed of one executive director and two independent non-executive directors, with the executive director serving as the chair[87] - The board is satisfied with the current gender diversity situation and aims to continue this trend in future appointments[88] - The company emphasizes the importance of character, integrity, and relevant qualifications in the selection of board candidates[92] - The Nomination Committee will recommend candidates for election or re-election at the shareholders' meeting as necessary[93] Environmental, Social, and Governance (ESG) Commitments - The company is committed to disclosing its environmental, social, and governance (ESG) policies and performance to stakeholders[123] - The company emphasizes integrating sustainable development strategies into its business operations[122] - The report period covers from January 1, 2023, to December 31, 2023, with a consistent disclosure of social and environmental key performance indicators[124] - The company has established a comprehensive quality and environmental management manual to assess and mitigate identified environmental risks[136] - The company is committed to sustainable development by optimizing its environmental, social, and governance mechanisms, and has engaged Riskory Consultancy Limited for advisory services[140] - The company aims to increase the production of garments that meet green and low-carbon requirements by researching sustainable technologies such as energy-saving dyeing and recycling of used fibers[141] - The company has established communication channels with stakeholders to understand their needs and expectations, facilitating sustainable development[149] - Key ESG issues identified include waste management, climate change response, supply chain management, product quality, and employee welfare[155] - The company emphasizes fair employment opportunities and community engagement as part of its ESG commitments[155] - The company has established policies to protect customer privacy and ensure that personal data is handled with care[173] Quality Management - The company has implemented strict quality management systems, including policies for production management and product recall, to ensure customer confidence in product safety[161] - The company has established strict quality assurance standards for its production processes and requires suppliers to meet the same quality management regulations[164] - During the reporting period, the company did not receive any fines or product recall orders from regulatory authorities due to product quality issues[167] - The company conducts annual assessments of its business partners based on criteria including supply capacity, production capability, and product quality[182] - The company has implemented a recall system for defective products to manage product safety risks[167] - The company provides regular internal training for retail staff to maintain service quality and enhance customer satisfaction[168] - The company adheres to the Consumer Rights Protection Law of the People's Republic of China to ensure a safe shopping environment for customers[172] - The company has not received any significant complaints regarding health or safety issues from customers during the reporting period[172] Supply Chain Management - The company collaborates with 199 suppliers, with 195 from mainland China, 3 from Hong Kong, and 1 from South Korea, to ensure a sustainable supply chain[182] - The company prioritizes suppliers that comply with local environmental policies, integrating sustainability into its supply chain[186] - The procurement department conducts regular assessments of suppliers' delivery capabilities, impacting their inspection levels and order ratios[188] - The company has established a comprehensive supplier management system to enhance supplier evaluation and compliance[186]
博尼控股(01906) - 2023 - 年度财报