Financial Performance - In 2024, the Group faced significant challenges and reported a loss due to increased store rents and market competition[25]. - In 2024, the Group faced significant challenges, resulting in a loss despite various reform measures implemented to adapt to rising store rents and changing market conditions[28]. - The Group's total retail principal operating income decreased by approximately 15.2% to RMB 2,525,448,000 in 2024 from RMB 2,977,313,000 in 2023[63]. - The Group's retail business revenue decreased by approximately 15.2% due to store closures and operational strategy adjustments[66]. - The net profit margin attributable to shareholders of the parent company decreased to -1.7% from -0.9% in the previous year, reflecting a significant loss[80]. - Net profit attributable to shareholders of the parent company decreased by approximately 112.3%, from RMB(75,675,109) in 2023 to RMB(160,673,532) in 2024, primarily due to increased rent[102]. - Basic earnings (loss) per share in 2024 was approximately RMB (0.39), compared to RMB (0.18) in 2023, reflecting the decrease in net profit[105]. - The Group's gross profit decreased by approximately 17.5% compared to the same period last year, with a gross profit margin decline of about 2.7% due to reduced margins in the wholesale business[84]. Operational Strategy - The Group implemented multiple transformation measures, including optimizing product structure and launching on-site production and sales projects[26]. - The focus was on developing purpose-driven categories and refining membership strategies to enhance customer loyalty and create new sales growth points[26]. - The Group launched on-site production items and optimized product structure to enhance operational efficiency and customer experience[40]. - The Group's retail strategy included focusing on essential items such as vegetables, fruits, meat, and eggs, aiming to improve product structure and reduce supply chain costs[33]. - The Group actively expanded its wholesale business by promoting a multi-channel network and enhancing logistics management capabilities[31]. - The Group is enhancing logistics management capabilities through an integrated logistics system, improving efficiency and customer service[68][70]. - The Group is focusing on expanding e-commerce channels, with a gradual increase in sales through online marketing models[72][74]. - The Group is developing its own brands and co-branded products to enhance its product matrix and marketing strategy[74][75]. - The Group will implement a "goods + service" business philosophy in its wholesale business and strengthen omni-channel network operations[135]. Membership and Customer Engagement - Nearly 500,000 new members were added, and approximately 100,000 memberships were reactivated, leading to a year-on-year increase in monthly active members[53]. - The Group implemented a refined selection strategy for membership products, enhancing the consumption experience and significantly improving member loyalty[54]. Cost Management - The gross profit margin of directly-operated retail business increased from approximately 15.5% in 2023 to 15.8% in 2024, attributed to optimizing supply chain and enhancing product competitiveness[65]. - Administrative expenses decreased by approximately 12.1% from RMB280,000,000 in 2023 to RMB247,487,059 in 2024, primarily due to reduced depreciation and labor costs[93]. - Financial expenses rose from RMB112,289,227 in 2023 to RMB115,964,520 in 2024, mainly due to increased exchange gains and losses[94]. - Income tax expenses decreased from RMB57,906,328 in 2023 to RMB22,883,942 in 2024, attributed to a decline in total profit due to market conditions[101]. Corporate Governance - The Company has adopted the principles of the Corporate Governance Code to enhance corporate governance quality and ensure fair and transparent business conduct[138]. - The Company complied with all provisions of the Corporate Governance Code except for provisions B.2.2 and C.5.1, which relate to director retirement by rotation and board meeting frequency, respectively[140]. - The Board held three meetings during the Reporting Period to review annual and interim results and consider substantial acquisitions, deviating from the requirement of at least four meetings per year[145]. - The Company has adopted new terms of reference for the remuneration committee in line with updates in the Listing Rules, published on 30 March 2023[146]. - Directors confirmed compliance with the Model Code for Securities Transactions throughout the Reporting Period[148]. - The Board is collectively responsible for safeguarding the best interests of the Group and shareholders, overseeing overall strategies and substantial transactions[150]. Human Resources - The Group employed 4,084 employees as of 31 December 2024, with total staff costs amounting to approximately RMB686,735,696, down from RMB720,988,340 in 2023[113]. - The Group's employee count in China decreased to 4,084 as of December 31, 2024, down from 4,370 in 2023[118]. - The Company has implemented a diversity policy that considers various aspects including age, gender, skills, and experience when reviewing Board composition[184]. - The average age of directors is about 55, with 11.1% under 45 years old, 55.6% between 46 and 60, and 33.3% over 60[185]. - The Company has established an independence policy to ensure that independent non-executive directors can perform their duties fairly and objectively[193]. Future Outlook - In 2025, the Group plans to leverage favorable policies and consumption recovery to create new growth opportunities in the wholesale and retail industry[33]. - In 2025, the Group plans to enhance product and service capabilities and focus on transforming and upgrading its core business formats[130]. - The Group aims to reshape the Jingkelong brand image and expand its targeted categories in retail business[131].
北京京客隆(00814) - 2024 - 年度财报