Business Performance - The Group's total revenue in 2021 was approximately RMB292.0 million, a decrease of approximately RMB111.9 million or 27.7% compared to 2020[29]. - Net loss attributable to owners of the Company was approximately RMB170.1 million, an increase of approximately RMB59.7 million or 54.1% compared to 2020[29]. - Revenue from bread and cakes was RMB215.7 million in 2021, down from RMB286.7 million in 2020, representing a decline of approximately 24.8%[44]. - The Group's gross profit for 2021 was approximately RMB122.9 million, down from RMB161.7 million in 2020, reflecting a decrease of about 24%[44]. - The decline in revenue was attributed to the ongoing COVID-19 pandemic, the closure of loss-making stores, and the slow realization of new marketing strategies[46]. - In 2021, revenue from Shanghai decreased by approximately RMB64,727,000 to RMB182,754,000, accounting for 62.6% of total revenue, compared to 61.3% in 2020[49]. - Sales revenue from major products such as bread and cakes decreased by approximately RMB71,032,000 or 24.8% compared to 2020, while sales from pastries decreased by approximately RMB13,276,000 or 24.6%[49]. - Other income, gains, and losses for 2021 amounted to approximately RMB6,188,000, a decrease of approximately RMB41,117,000 from RMB47,305,000 in 2020, mainly due to reduced gains from property disposals and COVID-19 related subsidies[57]. - The overall revenue decline was attributed to the pandemic and the temporary closure of stores, impacting sales of daily necessities significantly[49]. Strategic Focus and Future Plans - The Group aims to establish "Christine" as a reputable food brand by providing safe, tasty, and healthy products[23]. - The Group plans to focus on the research and development of new products to align with current consumer trends, emphasizing health and aesthetics[31]. - The Group aims to establish strategic cooperation with Chinese medicine colleges to integrate food therapy and health care elements into its products[39]. - The Group will enhance its online sales channels and collaborate with well-known online platforms to expand brand influence[37]. - The Group's strategy includes exploring new business forms such as online sales and OEM for bakery products to improve future performance[102]. - The management plans to recruit high-level business personnel to inject new talent into the Group and enhance its operational capabilities[102]. - The Group's management remains optimistic about the bakery industry's growth in China, citing continuous economic growth, low entry barriers, and an expanding customer base from first and second-tier cities to third and fourth-tier cities[105][108]. Financial Management and Structure - The Group's gearing ratio increased to approximately 145.9% as at 31 December 2021 from 105.9% in 2020, attributed to decreased cash balances and increased borrowings[87]. - As of December 31, 2021, the Group had bank borrowings of approximately RMB130,000,000, up from RMB100,000,000 in 2020[90][91]. - The Group aims to improve its financial structure and replenish working capital before considering dividend distribution in the future[140]. - The Group's total distributable reserves as of December 31, 2021, were approximately RMB227,596,000, which includes share premium, reserves, and profits[170]. - The Group's unused net proceeds balance as of December 31, 2021 was approximately HK$5.5 million, held as short-term deposits[155]. Operational Changes and Challenges - The Group closed 55 loss-making stores in 2021, significantly reducing operating costs and eliminating outdated production facilities[30]. - Cash sales (including bank cards and third-party payment platforms) accounted for 51.1% of total sales in 2021, down from 54.7% in 2020, while sales through coupons and prepaid cards accounted for 48.9%[49]. - The Group is currently implementing store-closure plans and staff downsizing, which will lead to job rotation, multi-skills training, and legal severance[196]. - The Group continues to face ongoing risks including intense competition, rising labor costs, and raw material prices, leading to a strategy of closing loss-making stores[139]. Human Resources and Management - As of December 31, 2021, the Group had a total of 2,018 employees, down from 2,604 employees as of December 31, 2020, following the closure of loss-making stores and workforce optimization[102]. - The remuneration of executive Directors is reviewed by the Remuneration Committee and is determined based on qualifications, experience, duties, responsibilities, and performance[192]. - The Group's human resources focus includes training and controlling labor costs[196]. - The independent non-executive director, Ms. Hong Xue, has extensive experience in the financial system, having served as the president of Zhenjiang Branch of China Everbright Bank, which adds financial acumen to the board[127]. Governance and Compliance - The Group's principal activity is investment holding, with no significant changes in the nature of its principal activities during the year ended December 31, 2021[137]. - The annual report includes a section on "Management Discussion and Analysis," which provides a fair review of the Group's business and performance using financial key performance indicators[137]. - The composition of the Board and the summary of the work of all Board committees are included in the "Corporate Governance Report" section of the annual report[137]. - The Group's financial risk management objectives and policies are detailed in note 6 of the consolidated financial statements[137]. Market and Product Development - The Group is focused on improving operational efficiency and leveraging technology to drive growth in the upcoming fiscal year[121]. - The company is actively involved in the development of new technologies and products, focusing on expanding its market presence[117]. - The Group aims to enhance brand image and product awareness while targeting young consumer groups for healthier and high-quality bakery products[106][109]. - The Group's research and development department focused on improving products and optimizing mass production technology, including the development of new bread, cakes, and desserts[106][109].
克莉丝汀(01210) - 2021 - 年度财报