Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue from continuing operations in the jewelry new retail business was approximately RMB 157.6 million, a decrease from RMB 410.5 million in 2023[26]. - The profit attributable to owners from continuing operations was approximately RMB 3.7 million in 2024, a significant recovery from a loss of RMB 21.0 million in 2023[26]. - The overall gross margin for the company increased significantly to approximately 30.7% in 2024, compared to 9.0% in 2023[27]. - The company reported a revenue of approximately RMB 157.6 million for the year ended December 31, 2024, a significant decrease of about 61.6% compared to RMB 410.5 million in 2023, primarily due to a sharp decline in gold product sales[57]. - Silver product sales accounted for 87.3% of total revenue in 2024, generating RMB 137.6 million, while gold product sales dropped to 9.9% with revenue of RMB 15.6 million, down from 73.3% and RMB 300.7 million in 2023 respectively[58]. - The company's gross profit increased by approximately 31.1% to RMB 48.4 million in 2024, up from RMB 36.9 million in 2023, driven by higher sales of silver products which typically have a higher profit margin[61]. Business Strategy - The company plans to focus on high-margin silver jewelry and reduce sales of low-margin gold jewelry, leading to a turnaround in the core jewelry new retail business[27]. - The company is exploring suitable business opportunities within and outside the jewelry industry to diversify its business risks[27]. - The company aims to achieve strong business and profit growth in 2025 and beyond through strict cost control and restructuring measures[27]. - The company plans to enhance its core gold and silver jewelry business while seeking breakthroughs in product development and channel expansion following the divestment of its fresh food retail business[55]. - The company aims to transform into a significant gold resource enterprise with large-scale mining potential and has entered the semiconductor materials sector, which is expected to provide substantial profit growth opportunities[54]. Operational Changes - The total number of physical stores decreased from 16 in 2023 to 7 in 2024 as the group shifted its sales focus to online channels[28]. - The group strategically reduced marketing expenses for its cultivated diamond brand SISI, as the market for cultivated diamonds in China is still in its early development stage[30]. - The group completed the acquisition of 51% of Jiangxi Letong New Materials Co., Ltd., which owns 100% of Tibet Longtian Yong Mining Co., Ltd., enhancing its upstream business layout[48]. - The group completed the sale of 51% equity in Shenzhen Fresh Life Technology Co., which operates the fresh food retail business, on January 13, 2025[80]. Cost Management - The sales cost decreased significantly by approximately 70.8% from RMB 373.5 million in 2023 to RMB 109.2 million in 2024, mainly due to the decline in gold product sales[60]. - Sales and distribution expenses decreased by approximately 21.6% from RMB 198 million for the year ended December 31, 2023, to about RMB 155 million for the year ending December 31, 2024[63]. - Administrative expenses reduced by approximately 14.8% from RMB 277 million for the year ended December 31, 2023, to about RMB 236 million for the year ending December 31, 2024, due to cost control measures[64]. Corporate Governance - The company has adopted the corporate governance code and has complied with its provisions, except for the separation of the roles of chairman and CEO[92][93]. - The board consists of three executive directors and three independent non-executive directors as of the report date[101]. - The company aims to provide satisfactory and sustainable returns to shareholders while safeguarding the interests of business partners[95]. - The board regularly reviews the performance of directors to ensure they contribute adequately to the company's responsibilities[99]. - The company has established a whistleblowing policy allowing employees and stakeholders to report misconduct confidentially and anonymously[144]. Risk Management - The company faces various strategic, legal, compliance, third-party, and operational risks that could adversely affect its performance and operations[142]. - The company has established compliance and risk management policies to monitor adherence to significant legal and regulatory requirements, with no major violations reported for the year ending December 31, 2024[177]. - The audit committee is responsible for reviewing and monitoring the financial reporting process and the effectiveness of risk management and internal control systems[130]. - The company has established a risk management team to assist the board and audit committee in monitoring the effectiveness of its risk management and internal control systems[135]. Employee Relations - The group recognizes employees as its most valuable asset and aims to provide competitive compensation and development opportunities[180]. - The company has adopted two employee share ownership plans as a reward for eligible employees, with all shares granted and fully vested[197]. - Both employee stock ownership plans aim to align the interests of participants with those of the company and enhance employee motivation[199][200]. Shareholder Communication - The company has established a shareholder communication policy to ensure timely and transparent communication with shareholders[161]. - The board has conducted a satisfactory review of the execution and effectiveness of the shareholder communication policy[162]. - The company has adopted a dividend policy without a predetermined payout ratio, allowing the board to propose dividends based on financial conditions[169].
金猫银猫(01815) - 2024 - 年度财报