Financial Performance - For the year ended December 31, 2024, the Group recorded gross sales proceeds of RMB8,696.6 million, a decrease of 13.8% compared to the previous year[26]. - Same-Store-Sales (SSS) decreased by 16.1% year-on-year, reflecting a cautious consumer spending environment[26]. - The overall gross profit margin of the Group was 13.3% in 2024, down from previous levels[26]. - The operating profit for the Group was RMB244.9 million, a decrease of RMB260.6 million from RMB505.5 million in the previous year[26]. - The Group recorded total sales of RMB 8,696.6 million, a decrease of 13.8% year-on-year, primarily due to lower-than-expected economic recovery and cautious consumer spending[29]. - Same-store sales declined by 16.1% year-on-year, with an overall gross margin of 13.3% for the Group in 2024[29]. - Total merchandise sales (net of value-added tax) fell by RMB1,236.9 million or 15.9% to RMB6,554.3 million in 2024[56]. - Concessionaire sales, which accounted for 72.6% of total merchandise sales, decreased by 16.0% compared to 2023[56]. - Direct sales decreased by 15.6% compared to 2023, indicating a decline across all sales channels[56]. - The merchandise gross margin decreased from 13.5% in 2023 to 13.3% in 2024, reflecting pressure on profitability[57]. - Total operating revenues decreased by RMB450.8 million or 10.8% to RMB3,726.7 million in 2024, primarily due to a decline in direct sales and concessionaire sales commissions[61]. - Revenue from contracts with customers, which constituted 65.6% of total operating revenues, decreased by RMB456.9 million or 15.7% compared to 2023[62]. - Purchases of goods and changes in inventories decreased by RMB273.6 million or 14.9% to RMB1,562.1 million in 2024, mainly due to reduced direct sales[63]. - Staff costs decreased by RMB6.4 million or 1.3% to RMB479.4 million in 2024, with a same store basis decrease of 2.2%[64]. - Other operating expenses increased by 22.7% to RMB861.5 million in 2024, primarily due to an increase in asset impairment provisions from RMB67.0 million in 2023 to RMB230.0 million in 2024[74]. - Profit from operations was recorded at RMB244.9 million in 2024, down from RMB505.5 million in 2023[76]. - Loss before tax was RMB147.9 million in 2024, compared to a profit before tax of RMB86.6 million in 2023[86]. - The Group's recorded loss for the year was RMB174.5 million in 2024, compared to a profit of RMB70.5 million in 2023[89]. - The projected net loss for 2024 is approximately RMB174.8 million, with a basic loss per share of RMB0.066[51]. Market Environment - The PRC's GDP reached RMB134.91 trillion in 2024, representing a 5.0% increase from 2023, while total retail sales of consumer goods increased by 3.5% year-on-year[25]. - The Chinese market faced notable challenges, including a lack of consumer confidence and increased industry competition[24]. - The economic recovery in China has been slower than expected, necessitating strategic planning to adapt to evolving market conditions[23]. - The overall retail environment in China is characterized by increased consumer segmentation and competition, necessitating strategic adjustments by the Group[28][29]. Strategic Initiatives - The Group renewed tenancy agreements for several key stores, including those in Guiyang, Shenyang, Harbin, Shanghai, and Nanning, reinforcing its market presence[27]. - The Group opened two new supermarkets, Mianyang Guanhua Supermarket and Kunming Nanya Supermarket, to enhance customer service[27]. - The Group's market strategy focuses on localization and tailored merchandise assortments to better serve middle to middle-upper end consumers[4]. - The Group opened two new supermarkets: Mianyang Guanhua Supermarket in January 2024 and Kunming Nanya Supermarket in November 2024, reflecting its strategy of "Multiple Stores in a City" and "Model Innovation"[40][41]. - The Group plans to open two additional stores in Datong City and Mianyang City in 2025, including outlet and shopping mall formats, to enhance market share and competitive positioning[42]. - The Harbin store launched a themed street district called "Erbin Story," significantly boosting foot traffic and customer engagement[34][37]. - The Group aims to revamp and remodel stores to improve their image and introduce new shopping experiences in response to market trends[39][43]. - The Group's operational improvement plans focus on enhancing service quality and adapting to evolving consumer expectations, categorized into three store types for targeted strategies[32][36]. Leadership and Governance - Tan Sri Cheng is the Chairman and Managing Director of Parkson Holdings Berhad, overseeing multiple public listed companies in Malaysia and Singapore[119]. - Juliana Cheng San San, the Executive Director, has been with the company since 2015 and is responsible for audit, legal, and public relations[121]. - The company has a strong leadership team with diverse backgrounds in retail, finance, and government, enhancing its strategic direction[120]. - The company is focused on leveraging its extensive experience in the retail sector to drive growth and innovation[126]. - The leadership team is committed to corporate governance and strategic oversight through various committees[130]. - The company has a strong governance structure with independent non-executive directors serving on key committees such as Audit and Remuneration[137]. - The management team has a diverse background in finance, operations, and business development, enhancing the company's strategic capabilities[143]. - The Company fully complied with the Corporate Governance Code for the year ended December 31, 2024[152]. - The Board consists of 6 Directors, including 2 executive Directors, 1 non-executive Director, and 3 Independent non-executive Directors[155]. - The Company has established a Board Independence Evaluation Mechanism to ensure strong independent judgment on the Board[169]. - The Company emphasizes a healthy corporate culture based on core values such as integrity, customer orientation, and mutual respect[162]. - The Company has adopted written guidelines for securities transactions by employees to prevent non-compliance[154]. - The Company focuses on innovative services and responsible operations as its main business strategy[162]. - The Board regularly reviews its composition to ensure a balance of expertise, skills, and experience relevant to the Company's business[185]. - Directors participated in continuous professional development, with training records summarizing participation for the year ended 31 December 2024[193]. - The Board reserves decision-making on major policy matters, strategies, budgets, and material transactions[184]. - All Directors have full access to Company information and can seek independent professional advice at the Company's expense[180]. - The Company has received annual independence confirmations from all Independent Non-executive Directors[173]. - The Board will engage external recruitment agencies when necessary for the selection process of new Directors[186]. - The board held four (4) meetings during the year ended December 31, 2024[200]. - Directors participated in ongoing professional development and training sessions[196]. - Attendance records for training sessions included various formats such as briefings, seminars, and workshops[199].
百盛集团(03368) - 2024 - 年度财报