Financial Performance - Revenue decreased by 7.1% to RMB 1,252.6 million compared to the previous year[4] - The company reported a loss attributable to owners of RMB 20.1 million, down from a profit of RMB 87.8 million in the previous year[4] - Loss per share was RMB 0.014, compared to earnings per share of RMB 0.060 in the previous year[4] - Total comprehensive income for the year was RMB 119.1 million, down from RMB 275.6 million in the previous year[5] - Total revenue for the year 2024 was RMB 1,252,612, a decrease of 7.1% from RMB 1,348,975 in 2023[11] - The company reported a net loss attributable to shareholders of RMB 20,105 for 2024, compared to a profit of RMB 87,767 in 2023[18] - Total sales revenue dropped 11.8% from RMB 3,154.1 million in the previous year to RMB 2,782.3 million, primarily due to increased uncertainty in the domestic economic outlook and rising online penetration rates[30] - The company's attributable net loss for the year was approximately RMB 20.1 million, a significant decline from a profit of RMB 87.8 million in 2023, mainly due to sales slowdown and a 25.4% decrease in profit from the associated company, Beiren Group[32] Revenue Breakdown - Self-operated sales revenue was RMB 507,233, down from RMB 523,341, representing a decline of 3.1%[11] - Revenue from franchise sales decreased by 19.3% to RMB 388,685 from RMB 481,262[11] - Service revenue fell to RMB 35,545, down 14.3% from RMB 41,509[11] Expenses and Costs - Gross profit margin decreased, with gross profit at RMB 702.0 million compared to RMB 785.4 million last year[5] - Total employee costs for the year were RMB 238,417, slightly up from RMB 236,632 in the previous year[16] - The group's sales and distribution costs for 2024 were RMB 578.3 million, a decrease of 5.5% from RMB 612.1 million in the previous year, primarily due to a reduction in total sales and related expenses[33] - General administrative expenses decreased by 2.4% to RMB 255.0 million from RMB 261.3 million in 2023, mainly due to a reduction in maintenance costs[34] - Employee costs (excluding director remuneration) decreased by 1.7% to RMB 204.9 million from RMB 208.4 million in 2023, attributed to a reduction in employee numbers and bonuses[35] Assets and Liabilities - Non-current assets decreased to RMB 14,250.5 million from RMB 14,374.5 million in the previous year[6] - Current assets increased to RMB 2,743.5 million from RMB 2,662.4 million in the previous year[6] - Total liabilities decreased slightly to RMB 11,069.7 million from RMB 11,016.5 million in the previous year[7] Cash Flow and Financing - As of December 31, 2024, the group's net debt decreased to approximately RMB 196.8 million from about RMB 405.4 million, mainly due to increased operating cash flow and dividends received from associates[39] - The group's cash and cash equivalents, bank deposits, and structured bank deposits increased to approximately RMB 2,953.3 million from RMB 2,823.6 million in 2023, with a significant portion held in RMB[40] - Total financing costs increased to RMB 186,916, up 2.0% from RMB 181,938[15] Dividends - The board of directors did not declare any dividends for the year[4] - The company did not declare any dividends for the year 2024, consistent with 2023[17] - No dividend declared for the year ending December 31, 2024, consistent with 2023[67] Market and Consumer Trends - The retail sales of consumer goods in China reached RMB 43.2 trillion, reflecting a year-on-year growth of 3.2%, indicating challenges in the market[28] - The group plans to enhance its digital infrastructure and introduce unique products and promotions to attract younger consumers, maintaining competitiveness in the retail market[58] - The group aims to optimize its merchant and product mix to meet rising consumer demand for high-quality, personalized, and environmentally friendly products[60] - The group is committed to responding to green consumption trends and promoting environmental sustainability through its product offerings and consumer behavior initiatives[59] Strategic Initiatives - The company has implemented various measures to adapt to changing consumer demands, including optimizing product offerings and enhancing the shopping experience[28] - The group actively adjusted its market strategy to enhance online member interaction and drive traffic to offline stores, including live streaming on Douyin to expand sales opportunities[45] - The group is focused on integrating online and offline marketing strategies to boost brand exposure and drive foot traffic to physical stores[62] Operational Performance - The operating loss before tax for the year was RMB 61.8 million, compared to a profit of RMB 21.5 million in 2023[32] - The group's EBITDA for the year decreased by 17.5% to RMB 358.1 million from RMB 434.3 million in 2023, primarily due to a decline in sales and revenue[39] Employee Acknowledgment - Acknowledgment of employees' efforts and contributions despite challenging operating environment[72]
利福中国(02136) - 2024 - 年度业绩