BUSEN(SZ:002569)2024-08-29 13:21Financial Performance - The company reported a total revenue of 1.2 billion RMB for the year 2022, reflecting a year-on-year increase of 15%[7]. - The net profit attributable to shareholders was 150 million RMB, representing a growth of 10% compared to the previous year[7]. - The company's operating revenue for 2022 was ¥154,524,987.95, a decrease of 40.32% compared to ¥258,931,764.43 in 2021[13]. - The net profit attributable to shareholders for 2022 was -¥67,503,074.03, representing a decline of 332.51% from ¥29,031,900.16 in 2021[13]. - The total assets at the end of 2022 were ¥295,613,214.70, down 22.72% from ¥382,518,666.52 at the end of 2021[13]. - The company's net assets attributable to shareholders decreased by 35.86% to ¥159,227,754.67 at the end of 2022 from ¥248,263,647.45 at the end of 2021[13]. - The company reported a basic earnings per share of -¥0.47 for 2022, a decline of 335.00% from ¥0.20 in 2021[13]. - The company reported a net profit of -¥70,252,556.70, with cash flow from operating activities at -¥21,549,622.24, indicating significant discrepancies due to non-cash items[57]. - As of December 31, 2022, the company reported a cumulative net loss of RMB 341.17 million, with negative cash flow from operating activities for three consecutive years[139]. Market Strategy and Expansion - The company plans to expand its market presence by increasing the number of retail outlets by 20% in 2023[2]. - User data indicates a 25% increase in active customers, reaching 1.5 million by the end of 2022[7]. - Future guidance estimates a revenue growth of 12% for 2023, targeting 1.34 billion RMB[2]. - The company is exploring potential mergers and acquisitions to enhance its product offerings and market share[2]. - The company aims to leverage technology advancements to improve supply chain efficiency, with an investment of 50 million RMB planned for digital transformation initiatives[2]. - The company is adapting to the retail environment by integrating online and offline sales channels, driven by the growth of e-commerce and live-streaming platforms[20]. - The company aims to optimize its franchise and direct sales models to improve brand visibility and sales performance[25]. - The company plans to upgrade its clothing business comprehensively and expand into the men's fashion market, focusing on product competitiveness and service quality[69]. - The company intends to adopt an online and offline integrated new retail model to accelerate its fashion industry layout and increase e-commerce sales[71]. Operational Challenges - The management highlighted risks including macroeconomic fluctuations and operational challenges, advising investors to remain cautious[2]. - The company faced significant challenges in the apparel industry, with a 5.8% decline in retail sales of clothing and a 7.7% drop in clothing retail sales in 2022[20]. - The company reported a significant drop in sales volume, with 395,358 units sold in 2022, down 75.53% from 1,615,360 units in 2021[38]. - The company has a high percentage of pledged shares, with 80% of shares held by the largest shareholder being pledged[191]. - The company is facing potential risks related to litigation involving its controlling shareholder, which could affect control stability if the court rules in favor of the plaintiffs[172]. Governance and Compliance - The company has established a transparent performance evaluation and incentive mechanism for senior management, ensuring compliance with legal regulations[77]. - The company has a dedicated internal audit department that independently assesses the quality of daily operations and the effectiveness of internal controls[78]. - The company strictly adheres to information disclosure regulations, ensuring that all shareholders have equal access to information[77]. - The company has established a comprehensive governance framework that complies with relevant laws and regulations, ensuring the protection of shareholder rights[78]. - The company has not faced any administrative penalties due to environmental issues during the reporting period and is not classified as a key pollutant discharge unit[122]. - The company has confirmed that its actual governance status complies with the requirements set by the China Securities Regulatory Commission and the Shenzhen Stock Exchange, with no major issues needing rectification[120]. - The company has been under scrutiny for not fulfilling its information disclosure obligations in a timely manner[156]. - The company received administrative penalties from the China Securities Regulatory Commission for inaccurate information disclosure regarding its 2021 performance forecast[155]. Employee and Management Structure - The total number of employees at the end of the reporting period was 578, with 43 in the parent company and 535 in major subsidiaries[105]. - The company has a total of 604 employees receiving salaries during the reporting period[105]. - The professional composition of employees includes 331 production personnel, 155 sales personnel, and 9 technical personnel[105]. - The company has a structured remuneration decision-making process involving a remuneration and assessment committee[91]. - The total pre-tax remuneration for the board of directors, supervisors, and senior management amounted to 5.12 million CNY[91]. - The company has a focus on maintaining competitive remuneration levels in line with industry standards[91]. Legal and Regulatory Issues - The company is under investigation by the China Securities Regulatory Commission for failing to disclose significant events as required, with the investigation still ongoing[172]. - The company has several ongoing litigation cases, including a dispute involving RMB 1.03 million related to a contract with Zhejiang Weikexi Clothing Co., which has been resolved[173]. - The company has faced a total of 12 litigation cases, all of which have been settled or resolved, indicating a proactive approach to legal disputes[174]. - The company has ongoing litigation regarding contract disputes, with claims for unpaid amounts of RMB 5.29 million and RMB 2.77 million, along with associated penalties and legal fees[178]. - The company has not recognized any expected liabilities for the ongoing lawsuits, suggesting a cautious approach to financial reporting[178]. Financial Management and Control - The company has established a commitment to protect the legitimate rights and interests of minority shareholders[128]. - The company guarantees compliance with relevant regulations and the company's articles of association to protect shareholder rights[130]. - The company has committed to maintaining the independence of its assets and financial decisions, without interference from controlling entities[133]. - The internal control audit report for the company as of December 31, 2022, indicates effective internal controls in all significant aspects, despite a reminder regarding delayed information disclosure on November 11, 2022[119]. - The company has not faced any objections from board members regarding company matters during the reporting period[98].