Financial Performance - Total revenue for the fiscal year 2025 was RMB 4,392,071, a decrease of 37.5% compared to RMB 7,072,564 in fiscal year 2024[7]. - The company reported a net profit of RMB 6,191 for fiscal year 2025, down from RMB 1,719,508 in fiscal year 2024, representing a decline of 99.64%[8]. - Adjusted net profit for fiscal year 2025 was RMB 173,546, a significant decrease from RMB 2,180,710 in fiscal year 2024[8]. - The company’s operating loss for fiscal year 2025 was RMB (109,884), compared to an operating profit of RMB 419,948 in fiscal year 2024[8]. - The company’s basic earnings per share for fiscal year 2025 was RMB 0.01, down from RMB 0.24 in fiscal year 2024[7]. - The net revenue from continuing operations decreased by 32.7% from RMB 6.5 billion in FY2024 to RMB 4.4 billion in FY2025, but net profit turned positive at RMB 6.2 million compared to a loss in the first half of FY2025[16]. - Total revenue from continuing operations decreased by 32.7% from RMB 6.5 billion in FY2024 to RMB 4.4 billion in FY2025, with app revenue increasing from RMB 900 million to RMB 1.1 billion[33]. - Revenue from self-operated products and live e-commerce decreased by 32.7% from RMB 6.5 billion in FY2024 to RMB 4.4 billion in FY2025, with self-operated product revenue reaching approximately RMB 3.5 billion[34]. - Gross profit for continuing operations decreased by 17.0% from RMB 1.7 billion in FY2024 to RMB 1.4 billion in FY2025, while gross margin increased from 25.9% to 32.0%[35]. - Other income, gains, and losses increased by 28.1% from RMB 138.1 million in FY2024 to RMB 176.9 million in FY2025, mainly due to fair value changes of financial assets[36]. Assets and Liabilities - The company’s total assets decreased to RMB 6,092,513 in fiscal year 2025 from RMB 6,541,519 in fiscal year 2024, reflecting a decline of 6.85%[10]. - The equity attributable to the owners of the company increased to RMB 5,117,097 in fiscal year 2025 from RMB 4,969,216 in fiscal year 2024, an increase of 2.98%[10]. - The company’s total liabilities to total assets ratio improved to 16.0% in FY2025 from 24.0% in FY2024[48]. - Cash and cash equivalents as of May 31, 2025, totaled RMB 2.5 billion, an increase from RMB 2.26 billion as of May 31, 2024[47]. - The company incurred a net cash outflow of RMB 53.12 million from financing activities in FY2025, primarily due to share repurchases of RMB 110.4 million[53]. Operational Highlights - The company aims to focus on providing high-quality products and services through its self-operated product and live e-commerce platform[12]. - The company is committed to promoting traditional Chinese culture and positive values through its offerings[12]. - The company's self-operated products and live e-commerce business have expanded significantly, with the "Dongfang Zhenxuan" platform becoming a well-known online platform for high-quality agricultural products, contributing to rural revitalization[13]. - The company launched 732 self-operated product SKUs by May 31, 2025, up from 488 in FY2024, focusing on daily consumer goods and home products[17]. - The self-operated products accounted for approximately 43.8% of total GMV in FY2025, indicating a shift towards stable demand products[17]. - The company has successfully introduced competitive self-operated product lines, including health foods and pet products, with strong growth in categories like gummies and probiotics[18]. - The company has established a presence in 28 provincial-level regions, directly connecting high-quality fruit production areas with consumer markets, leading to the popularity of products like citrus and apples[18]. - The company has adopted a multi-platform strategy, expanding its reach through various sales channels, including Douyin, Taobao, and its own app, enhancing brand visibility[19]. - The average contribution per user is steadily increasing, reflecting high user loyalty and engagement, supported by marketing activities and the introduction of a "Friend Card" to enhance user experience[19]. - User satisfaction for the application reached a new high of 98.7% in FY2025, up from 97.3% in FY2024[20]. Cost and Expenses - Total cost of revenue for continuing operations decreased by 38.2% from RMB 4.8 billion in FY2024 to RMB 3.0 billion in FY2025, primarily due to reduced inventory and logistics costs[35]. - Selling and marketing expenses increased by 4.2% from RMB 866.1 million in FY2024 to RMB 902.1 million in FY2025, primarily due to increased advertising expenses[37]. - Research and development expenses decreased by 3.5% from RMB 131.6 million in FY2024 to RMB 127.0 million in FY2025, mainly due to reduced stock option expenses[38]. - Administrative expenses increased by 22.5% from RMB 395.6 million in FY2024 to RMB 484.8 million in FY2025, primarily due to undistributed profits related to a specific announcement[41]. - Total employee compensation expenses, including share-based payments, decreased by 17.6% to RMB 1.2 billion in FY2025 from RMB 1.4 billion in FY2024[61]. Shareholder and Governance - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors[74]. - The company maintains the public float percentage required by listing rules as of the last practicable date[72]. - The company has established a remuneration committee to formulate the remuneration policy for directors and senior management[105]. - The independent external auditor confirmed that there were no undisclosed significant contracts with the controlling shareholder during the fiscal year 2025[147]. - The company has complied with all applicable regulations regarding related party transactions as per Listing Rule Chapter 14A[146]. Future Strategies - The company plans to optimize the application and membership system to increase monthly active users (MAU) and registered members[27]. - The company will continue to innovate in live streaming content and formats, hosting outdoor live events to promote local products and culture[29]. - New features will be introduced in the application to enhance user engagement and interaction during live streaming sessions[30]. - The company plans to continue investing in core technology innovations to enhance platform stability and scalability, aiming for seamless user experiences and future expansion[31]. Social Responsibility - The company made charitable donations of approximately RMB 2 million for the fiscal year ending May 31, 2025[154]. - The company is committed to social responsibility, employee welfare, environmental protection, and community contributions[152].
东方甄选(01797) - 2025 - 年度财报