Financial Performance - The total revenue for the year ended December 31, 2024, was approximately RMB 253.0 million, representing an increase of approximately 6.4% from RMB 237.7 million in 2023[25]. - The operating profit for 2024 was approximately RMB 7.6 million, a decrease from approximately RMB 14.9 million in 2023[25]. - The net profit for the year was approximately RMB 6.6 million, down from approximately RMB 13.6 million in 2023[26]. - The gross profit margin improved to 50.9% in 2024 from 50.4% in 2023[6]. - The net profit margin decreased to 2.6% in 2024 from 5.7% in 2023[6]. - Basic earnings per share for 2024 were RMB 0.2073, compared to RMB 0.4309 in 2023[6]. - Selling and distribution costs increased to RMB 94.9 million in 2024 from RMB 81.1 million in 2023[6]. - Administrative expenses rose to RMB 29.4 million in 2024, compared to RMB 27.6 million in 2023[6]. - The profit attributable to the owners of the company for the fiscal year 2024 is approximately RMB 6.6 million, a decrease of about 51.9% compared to RMB 13.6 million in fiscal year 2023[124]. Revenue Sources - Revenue from shampoo and hair-care products was RMB 230.4 million in 2024, up from RMB 217.7 million in 2023[9]. - Revenue from the online sales channel was approximately RMB 135.9 million, an increase of approximately 7.7% from RMB 126.2 million in 2023[87]. - The core brand, Bawang, generated approximately RMB 240.9 million in revenue, accounting for approximately 95.2% of the Group's total revenue, with a 4.0% increase compared to 2023[88]. - The Royal Wind anti-dandruff hair-care series generated approximately RMB 2.4 million in revenue, accounting for approximately 1.0% of total revenue, with a 19.3% increase from 2023[93]. - The Litao natural-based product series generated approximately RMB 9.6 million in revenue, accounting for approximately 3.8% of total revenue, with a significant increase of approximately 146.0% from 2023[94]. Market Strategy - The company plans to focus on expanding its product categories and enhancing brand presence in the market[25]. - The Group aims to strengthen its business model and positioning to acquire market shares from competitors, maintaining a multi-brand and multi-product strategy[39]. - The company continued to promote its Bawang branded products, emphasizing the brand concept of "Daunted by hair-fall, Use Bawang Shampoo" to enhance consumer understanding[46]. - The company utilized social media platforms like Weibo, Douyin, Kuaishou, and Xiaohongshu for word-of-mouth marketing, which stimulated customer interest and accelerated sales growth[46]. - New anti-hair fall shampoo products with fresh packaging were launched to attract young consumers, aligning with their preferred lifestyles[49]. - Various marketing activities, including quizzes and educational webinars on hair health, were conducted to enhance brand recognition and consumer preference for Bawang products[49]. - The company participated in community welfare events while promoting its brand image, further enhancing brand visibility[49]. Distribution and Sales Channels - The distribution network for the Bawang brand includes approximately 837 distributors and three key retailers, covering 27 provinces and four municipalities in China as of December 31, 2024[61]. - The Royal Wind brand distribution network also comprises approximately 837 distributors, primarily targeting online sales channels[62]. - The Litao products distribution network includes approximately 795 distributors, focusing on consumers in second-tier and third-tier cities in China[63]. - The company established 11 online retail platforms for its brands, with two new platforms launched during the review year[66]. - The company recorded significant same-store sales growth in JD direct-operated stores and expanded its live-streaming team, enhancing its e-commerce distribution channels[59]. Financial Management - The Group has implemented measures to manage credit risks, resulting in a reversal of impairment losses of approximately RMB 1.7 million for trade receivables[74]. - The Group maintains sufficient cash and cash equivalents to manage liquidity risks effectively[76]. - The Group closely monitors foreign exchange risks due to sales in foreign currencies and considers hedging when appropriate[77]. - The Group's bank balances, time deposits, and cash as of December 31, 2024, were approximately RMB 120.3 million, an increase from RMB 88.3 million in 2023[153]. - The Group's total assets as of December 31, 2024, were approximately RMB 235.4 million, compared to RMB 230.3 million in 2023[155]. Corporate Governance - The Board of Directors comprised six members as of December 31, 2024, including the Chairman and the CEO[185]. - The Group has complied with the applicable code provisions of the Corporate Governance Code for the year ended December 31, 2024[183][188]. - The Board consists of six members, including Chairman Mr. CHEN Qiyuan and CEO Mr. CHEN Zheng He, with responsibilities including approving the overall strategy and monitoring performance[190]. - The Board held six meetings in 2024, with all directors attending the majority of them, ensuring active participation in governance[194]. - The Company has adopted a Nomination Policy and a Diversity Policy to enhance board diversity and ensure independent views are represented[195]. Future Outlook - The Group plans to regain sales growth momentum and profitability by building a management team with strong experience in both domestic and global sectors[39]. - Projections for retail sales growth in 2025 indicate an increase of 4.0% to 5.0% due to government subsidies and merchant discounts[38]. - The corporate theme for 2025 is "Striving Forward in Full Power!" with strategies focused on enhancing publicity and promoting Bawang-branded products to increase sales revenue[131]. - The company plans to strengthen publicity around patented technologies, particularly focusing on the anti-hair loss product line to boost sales[131]. - The Group will leverage Pinduoduo's official 10-billion-yuan subsidy program to stimulate sales growth on that platform[138].
霸王集团(01338) - 2024 - 年度财报