Financial Performance - Revenue for the year ended December 31, 2022, decreased by 21.9% to RMB 680.7 million compared to RMB 871.6 million in 2021[2]. - Gross profit for the same period decreased by 19.3% to RMB 189.8 million, with a gross margin increase to 27.9%[2][4]. - Net profit recorded for the year was RMB 96.6 million, a significant recovery from a net loss of RMB 0.9 million in 2021[2][4]. - Total sales revenue for the year was RMB 680,727,000, compared to RMB 871,578,000 in 2021, reflecting a decline of 22%[12]. - The group reported a profit attributable to equity holders of RMB 96,604,000 for 2022, a significant recovery from a loss of RMB 939,000 in 2021[14]. - Basic and diluted earnings per share for 2022 were RMB 0.098, compared to a loss of RMB 0.001 per share in 2021[14]. - Fresh fruit sales and other income accounted for 6.1% of total revenue for the year ended December 31, 2022, down from 6.2% in 2021, with a year-on-year decrease of RMB 12.5 million or 23.1% to approximately RMB 41.7 million[41]. - Gross profit decreased from approximately RMB 235.1 million for the year ended December 31, 2021, to approximately RMB 189.8 million for the year ended December 31, 2022, a year-on-year decrease of RMB 45.3 million or 19.3%[42]. - Overall gross margin increased from 27.0% in 2021 to 27.9% in 2022, primarily due to a decrease in average costs of processed fruit products[44]. - Net profit increased from a net loss of approximately RMB 0.9 million in 2021 to a net profit of RMB 96.6 million in 2022, an increase of approximately RMB 97.5 million[49]. Dividends and Shareholder Returns - Proposed final dividend is HKD 0.05 per ordinary share[2]. - The board proposed a final dividend of approximately RMB 43.4 million for the year ended December 31, 2022, compared to no dividend in 2021[16]. - The board proposed a final dividend of HKD 0.05 per share for the year ended December 31, 2022, subject to approval at the 2023 annual general meeting[66]. Assets and Liabilities - Total assets as of December 31, 2022, amounted to RMB 1,295.2 million, down from RMB 1,372.5 million in 2021[5]. - Cash and cash equivalents increased to RMB 659.6 million from RMB 490.1 million in the previous year[5]. - Total liabilities decreased to RMB 262.9 million from RMB 255.5 million in 2021[5]. - The group’s trade receivables net amount was RMB 116,007,000 as of December 31, 2022, down from RMB 127,241,000 in 2021[17]. - The group’s income tax expense for the year was RMB 20,637,000, compared to RMB 29,264,000 in 2021[13]. - As of December 31, 2022, the company's current ratio was 3.49, up from 2.85 in 2021[50]. - Total equity and liabilities as of December 31, 2022, were approximately RMB 1,129.5 million and RMB 243.0 million, respectively[53]. Operational Highlights - The company continues to focus on the production and sale of processed fruit products and beverages, as well as fresh fruit trading[6]. - The group had no single customer contributing over 10% of total revenue for both 2022 and 2021[11]. - The group is focusing on R&D, increasing product variety, and enhancing packaging design to strengthen revenue and profitability in the post-pandemic environment[29]. - The group has a range of proprietary brands and is actively enhancing brand image and product quality while expanding its product line in functional beverages[30]. - The fresh fruit sales network is planned to be expanded to more regions, leveraging the rich fruit resources around the Yunnan production base[32]. - The company aims to enhance its online sales of self-owned brand products by utilizing digital technology advantages and various marketing activities[31]. - The company has successfully developed new fruit particle vitamin sports drinks and fruit enzyme sports drinks, which are expected to be launched in the market shortly[34]. - The Shandong production base is enhancing production facilities and automation to increase capacity, with new workshops nearing completion[35]. - The company is actively seeking acquisition and strategic cooperation opportunities to enrich existing businesses and expand its network[36]. - The functional beverage market in China is projected to grow from RMB 123.8 billion in 2021 to RMB 182.0 billion by 2026, with a compound annual growth rate of 8.0%[34]. Expenses and Cost Management - Selling and distribution expenses decreased from approximately RMB 22.1 million in 2021 to approximately RMB 9.3 million in 2022, a year-on-year decrease of approximately RMB 12.8 million or 57.9%[45]. - Research and development expenses decreased from RMB 27.6 million in 2021 to RMB 22.9 million in 2022, a year-on-year decrease of approximately RMB 4.7 million or 17.0%[46]. - General and administrative expenses increased from RMB 30.9 million in 2021 to RMB 40.3 million in 2022, a year-on-year increase of approximately RMB 9.4 million or 30.4%[47]. - As of December 31, 2022, the total employee cost, including director remuneration, was approximately RMB 32.7 million, a decrease from RMB 46.9 million as of December 31, 2021[58]. Corporate Governance and Compliance - The independent auditor's report issued a qualified opinion due to the inability to access complete accounting records of a subsidiary, impacting the financial statements[26]. - The audit committee reviewed the group’s accounting principles and practices, discussing audit, internal control, and financial reporting matters for the year ended December 31, 2022[61]. - The group has complied with the corporate governance code, except for the provision regarding the separation of the roles of chairman and CEO[63]. Strategic Developments - The group has not engaged in any significant acquisitions or disposals of subsidiaries or associates during the reporting period[60]. - The group has not used any derivative instruments to hedge interest rate risk, facing cash flow interest rate risk from floating-rate bank borrowings, partially offset by floating-rate bank balances[56]. - The group has not implemented any hedging measures to mitigate foreign exchange risks, which arise mainly from transactions in currencies other than RMB[57]. - On August 10, 2022, the group decided to liquidate its indirect wholly-owned subsidiary Strong Won Investment Hong Kong Limited, which held all issued shares of Tian Tong Food (Yichang) Co., Ltd., with a cash consideration of RMB 90 million for the sale[59].
天韵国际控股(06836) - 2022 - 年度业绩