Financial Performance - Revenue for the year ended December 31, 2024, was RMB 1,350,925 thousand, a decrease of 3.6% compared to RMB 1,401,972 thousand in 2023[15] - Gross profit for the same period was RMB 289,101 thousand, resulting in a gross margin of 21.4%, slightly down from 21.5% in 2023[15] - Profit before tax decreased to RMB 62,345 thousand, down 11.9% from RMB 70,058 thousand in the previous year[15] - Net profit for the year was RMB 43,975 thousand, a decline of 14.8% compared to RMB 51,602 thousand in 2023[15] - The group's net profit for the reporting period was approximately RMB 44.0 million, a decrease of about 14.73% from approximately RMB 51.6 million for the year ended December 31, 2023[17] - Gross profit decreased from approximately RMB 301.4 million to approximately RMB 289.1 million, with a stable gross margin of approximately 21.5% and 21.4% for the respective years[38][39] - Net profit decreased from approximately RMB 51.6 million to approximately RMB 44.0 million, with a net profit margin decline from approximately 3.7% to approximately 3.3%[48] - Adjusted net profit for the year ending December 31, 2024, is approximately RMB 51.3 million, down from RMB 55.1 million in 2023, reflecting a decrease of about 6.5%[51] - The adjusted net profit margin for 2024 is 3.8%, slightly down from 3.9% in 2023[51] Assets and Liabilities - Non-current assets increased to RMB 399,108 thousand from RMB 377,772 thousand in 2023, reflecting a growth of 5.4%[15] - Current assets rose to RMB 1,056,580 thousand, up from RMB 1,029,364 thousand in 2023, indicating a growth of 2.6%[15] - Current liabilities decreased to RMB 774,555 thousand from RMB 819,983 thousand in 2023, a reduction of 5.5%[15] - Total net assets increased to RMB 540,910 thousand, compared to RMB 493,341 thousand in 2023, marking an increase of 9.6%[15] - Cash and cash equivalents decreased from approximately RMB 236.2 million at the end of 2023 to RMB 216.9 million at the end of 2024, primarily due to higher cash outflows from investing and financing activities[55] - Inventory increased significantly from approximately RMB 266.3 million in 2023 to RMB 330.1 million in 2024, driven by increased procurement to meet anticipated food demand[58] - Trade receivables decreased from approximately RMB 213.8 million in 2023 to RMB 190.0 million in 2024, indicating improved collection efforts[60] - Trade payables decreased from approximately RMB 160.7 million in 2023 to RMB 110.3 million in 2024, reflecting timely settlements of trade payables[63] Revenue Breakdown - Revenue from general sales decreased to approximately RMB 505.8 million, down about 18.0% or RMB 111.0 million from approximately RMB 616.8 million for the year ended December 31, 2023[17] - Revenue from wholesale increased to approximately RMB 729.8 million, an increase of about 7.39% or RMB 50.2 million compared to approximately RMB 679.6 million for the year ended December 31, 2023[17] - General sales revenue decreased from approximately RMB 616.8 million to approximately RMB 505.8 million, primarily due to the cessation of tobacco sales and adverse weather conditions affecting promotional performance[35] Market Outlook and Strategy - Future outlook includes potential market expansion and new product development strategies to enhance revenue growth[15] - The retail market in Jiangsu Province shows strong growth potential, with small and medium-sized chain supermarkets experiencing a compound annual growth rate of 15.7% from 2017 to 2023, expected to reach 8.7% from 2024 to 2027[28] - The convenience store market has shown robust growth with a compound annual growth rate of 14.3% from 2017 to 2023, expected to continue expanding at 9.0% from 2024 to 2027[29] - The company plans to expand its market share and number of retail stores, establish new distribution centers, and enhance its ERP systems to improve operational efficiency[21][30] Corporate Governance and Management - The board consists of 12 members, including seven executive directors, one non-executive director, and four independent non-executive directors[103] - The supervisory board currently consists of three members, including two shareholder representatives and one employee representative, with a term of three years[138] - The company has appointed two joint company secretaries to enhance corporate governance[150][151] - The company emphasizes the importance of monitoring financial and operational performance through its supervisory board[138] - All independent non-executive directors confirmed their independence as per Listing Rules[137] Compliance and Risks - The company has complied with all relevant laws and regulations without incurring any fines or penalties related to health, safety, or environmental issues during the reporting period[181] - The company has faced risks related to finding ideal retail locations and competition with online stores, which may adversely affect its business[168] - The company is currently addressing compliance issues related to certain properties, with plans to relocate storage activities to areas with valid property certificates[180] Future Plans and Funding - The company plans to open new retail stores, allocating approximately 30.9% of the net proceeds from the global offering, which amounts to about HKD 32.5 million[161] - The company intends to establish a new distribution center, with 41.2% of the net proceeds, approximately HKD 43.3 million, designated for this purpose[161] - The company has not utilized any of the net proceeds from the global offering as of the last practicable date[163] - The net proceeds from the global offering are estimated to be approximately HKD 92.55 million after deducting underwriting fees and estimated expenses related to the listing[161]
江苏宏信(02625) - 2024 - 年度财报