Financial Performance - The Group's turnover for the year ended December 31, 2024, was approximately RMB 240.3 million, representing a decrease of 32.4% compared to 2023[13] - The gross profit margin and net loss margin were approximately 19.4% and 31.4% respectively[13] - The Group recorded a loss attributable to owners of the Company of approximately RMB 66.9 million, an increase of 179.5% from a loss of approximately RMB 23.9 million in 2023[13] - Revenue decreased from RMB355.7 million in 2023 to RMB240.3 million in 2024, representing a decline of 32.4%[30] - CMS business revenue fell by 26.6% to RMB153.1 million, accounting for 63.7% of total revenue in 2024[27] - OBM business revenue decreased by 40.7% to RMB87.2 million, representing 36.3% of total revenue in 2024[27] - Loss attributable to equity holders rose from approximately RMB23.9 million in 2023 to approximately RMB66.9 million in 2024[33] - Revenue from the CMS business decreased from approximately RMB208.6 million in 2023 to approximately RMB153.1 million in 2024, representing a decrease of approximately 26.6%[73] - Revenue from the OBM business decreased from approximately RMB147.0 million in 2023 to approximately RMB87.2 million in 2024, representing a decrease of approximately 40.7%[75] - Total sales from both CMS and OBM segments in the sexy lingerie category decreased by approximately RMB18.6 million, or 86.1%[77] - Sales from fabric care, personal hygiene, and home care products decreased by approximately RMB50.1 million or 59.6% due to increased market competition[81] - Gross profit margin decreased from approximately 24.5% in 2023 to approximately 19.4% in 2024, primarily due to lower margins from cosplay wigs and costumes[83] Operational Efficiency - The Group maintained a healthy financial position with net current assets of RMB 151.4 million and a net cash position at the financial year end[13] - The Group continues to focus on improving operational efficiency and effectiveness[19] - The Group plans to relocate its wig and clothing production lines to Yichun City, Jiangxi Province, to enhance production efficiency and reduce costs[32] - The establishment of the Party Culture Industrial Park and E-commerce Operation Centre aims to improve production efficiency and collaboration within the industry[31] - The Group remains committed to enhancing product precision and actively seeks to engage new customers and explore new markets, particularly in the high-end sector[77] Market Trends - The rise of slow fashion and customization has led to a decline in fast fashion, with consumers prioritizing quality over quantity[18] - Geopolitical tensions and supply chain disruptions have prompted customers to explore nearshoring and reshoring options to reduce lead times and improve reliability[18] - The Group's product demand is influenced by changing trends and popularity of movie and animation characters, impacting revenue generation[40] - The popularity of animation characters significantly influences market demand and revenue generation, which may fluctuate based on market trends and marketing effectiveness[45] Financial Risks - Significant fluctuations in foreign currency exchange rates may adversely affect profit margins and reported earnings[39] - The Group's intangible assets, including trademarks and patents, are at risk of impairment if financial results do not align with their valuation, potentially impacting business operations[46] - The Group's joint venture partnerships carry risks related to control and alignment of goals, which could adversely affect financial conditions[47] Corporate Governance - The Company has fully complied with the Corporate Governance Code for the year ended December 31, 2024[151] - The Board consists of six Directors, including three Executive Directors and three Independent Non-executive Directors[162] - The Company has an internal control system in place, with nearly half of the Board being Independent Non-executive Directors[152] - The Board met the Listing Rules requirement of having at least three independent non-executive directors, representing one-third of the Board[169] - Independent non-executive directors provide impartial views on the Group's strategies and performance, ensuring shareholder interests are considered[170] - The Company received annual confirmations of independence from each independent non-executive director, in line with Listing Rules[173] - The Board is committed to assessing the independence of directors annually, considering various relevant factors[171] Shareholder Engagement - The Board is responsible for maintaining ongoing dialogue with shareholders, particularly during annual general meetings[189] - The Company Secretary provides unrestricted access to Board papers and related materials for all Board members[188] - The Chairman of the Board and committee chairs are expected to attend annual general meetings to address shareholder questions[189] Financial Position - The Group's total bank balances and cash increased by approximately RMB 14.1 million to approximately RMB 63.6 million as of December 31, 2024[113] - The current ratio and gearing ratio as of December 31, 2024, were 414.4% and 4.9%, respectively[114] - The Group's total staff costs for the year ended December 31, 2024, amounted to approximately RMB 66.3 million, down from RMB 85.5 million in 2023[126] - Income tax expenses for the year ended December 31, 2024, were approximately RMB 4.0 million, an increase from RMB 3.8 million in 2023[112] Capital Expenditure - Capital expenditure during the year ended December 31, 2024, was approximately RMB 41.0 million[117] - The Group has fully utilized the net proceeds of RMB 7.0 million, RMB 8.2 million, and RMB 6.2 million for their intended purposes by December 31, 2024[134] Impairment Losses - Impairment loss on property, plant, and equipment recognized was approximately RMB 11.3 million due to a drop in turnover affecting the recoverable amount[94] - Impairment loss on goodwill related to the fabric care, personal hygiene, and home care products business amounted to approximately RMB 8.4 million, attributed to a significant decline in operating revenue[96]
中国派对文化(01532) - 2024 - 年度财报