Financial Performance - The Group recorded a revenue of RMB 191.6 million for the year ended December 31, 2022, a decrease of 16.8% compared to RMB 230.1 million in 2021[23]. - The operating loss for the Group was RMB 595.4 million in 2022, compared to an operating loss of RMB 398.7 million in 2021[12]. - Loss attributable to owners of the Company amounted to RMB 556.1 million in 2022, up from RMB 438.0 million in 2021[23]. - The Group's revenue from rental income, direct sales, and commission from concessionaire sales was RMB 191.6 million in 2022, with rental income contributing 96.3% of total revenue[18]. - The Group's revenue for the year ended December 31, 2022, was RMB 191.6 million, representing a decrease of 16.7% compared to RMB 230.1 million in 2021[25][37]. - The loss attributable to owners of the Company for the year ended December 31, 2022, was RMB 556.1 million, compared to RMB 438.0 million in 2021[25][37]. - The Group's operating loss for the year ended December 31, 2022, was RMB 402.972 million, compared to RMB 131.524 million in 2021[42]. - Other losses – net amounted to RMB240.3 million for the year ended December 31, 2022, compared to other gains – net of RMB20.4 million in 2021[49]. - The company reported a consolidated loss of RMB 296.3 million as of December 31, 2022[137]. Assets and Liabilities - Total assets decreased to RMB 2,899.7 million in 2022 from RMB 3,971.3 million in 2021, representing a decline of approximately 27%[14]. - Total liabilities decreased to RMB 1,783.2 million in 2022 from RMB 2,293.4 million in 2021, a reduction of about 22.2%[14]. - The net assets of the Group decreased by 33.5% to RMB 1,116.5 million as of December 31, 2022, down from RMB 1,677.9 million in 2021[82]. - The Group's long-term and short-term borrowings as of December 31, 2022, were RMB 540.9 million and RMB 45.2 million, respectively, compared to RMB 561.5 million and RMB 95.4 million in 2021, with a gearing ratio of 52.5% as of December 31, 2022, up from 39.1% in 2021[81]. - The net current liabilities of the Group as of December 31, 2022, were RMB 73.1 million, a shift from net current assets of RMB 142.5 million in 2021[82]. Market Conditions - The per capita consumption expenditure of residents in China decreased by 0.2% in 2022 compared to 2021, indicating cautious consumer behavior[22]. - The national consumer price index (CPI) in December 2022 was only 1.8% higher year-on-year, reflecting low inflationary pressure[21]. - The total retail sales of consumer goods in China increased by 2.0% year-on-year in 2022, compared to a 1.0% increase in 2021[21]. - The retail and department store markets in China are expected to gradually recover following the relaxation of COVID-19 prevention measures at the end of 2022[29][33]. Operational Changes - The Group operated 15 department stores as of December 31, 2022, with a total gross floor area of approximately 253,730 sq.m, of which 36.4% are self-owned properties[6]. - The Group has upgraded its department store premises into "Shirble Plaza," a one-stop shopping mall concept to cater to the middle-class population in China[27][31]. - The Group's proactive measures to mitigate the negative impact of the pandemic included reducing property investments and enhancing customer engagement in retail business[28][32]. - The operating loss of the department store business segment amounted to RMB403.0 million for the year ended December 31, 2022, compared to an operating loss of RMB131.5 million in 2021[60]. Employee and Management Information - The total number of employees as of December 31, 2022, was 254, down from 327 in 2021, with a remuneration policy based on market conditions and individual performance[90]. - Employee benefit expenses decreased by 15.2% to RMB42.9 million for the year ended December 31, 2022, from RMB50.6 million in 2021[57]. Shareholder and Corporate Governance - The board has decided not to recommend any final dividend for the year ended December 31, 2022[125]. - The company was incorporated in the Cayman Islands on November 5, 2008[122]. - The directors of the company include independent non-executive directors with extensive experience in auditing and public offerings[147]. - The company has no provisions for pre-emptive rights under its articles of association[139]. - The company has no other service agreements with directors or subsidiaries, except those expiring within one year without compensation[156]. Legal and Regulatory Matters - As of December 31, 2022, the Group made an accumulated provision of approximately RMB 631,000 for ongoing legal proceedings related to disputes over contract terms[91]. - On December 30, 2022, the Company entered into the IEC Supplemental Termination Agreement with SRF, which constitutes a connected transaction subject to independent shareholder approval[102]. - The IEC Supplemental Termination Agreement was approved by independent shareholders at the extraordinary general meeting held on March 29, 2023[104]. Share Capital and Ownership - The company's share premium amounted to RMB 751.0 million as of December 31, 2022[137]. - As of December 31, 2022, Ms. HUANG Xue Rong holds 8,324,000 shares, representing 0.33% of the company's total shares[163]. - Mr. YANG Ti Wei owns 2,490,000 shares, which accounts for 0.09% of the total shareholding[163]. - The total issued share capital of Xiang Rong Investment Limited, managed by Ms. HUANG, includes 1,374,167,500 shares, equating to 55.08% of the company's shares[163]. - The largest customer contributed 32.0% of the total revenue, while the five largest customers together accounted for 40.9%[198]. - The largest supplier accounted for 17.6% of total purchases, and the five largest suppliers together represented 55.4%[198].
岁宝百货(00312) - 2022 - 年度财报