Financial Performance - Revenue for the year ended February 28, 2022, was RMB 594.2 million, a decrease of 4.2% compared to RMB 569.0 million for the previous year[9]. - Consolidated profit attributable to owners of the company dropped to RMB 3.0 million, a significant decline of 97.2% from RMB 106.2 million in the prior year[9]. - Basic earnings per share fell to RMB 0.42, down 97.2% from RMB 15.04 in the previous year[9]. - Total equity decreased to RMB 705.3 million, representing a 30.0% decline from RMB 1,007.9 million[10]. - Net cash balances were reported at RMB 442.6 million, a decrease of 41.4% from RMB 754.9 million[10]. - Net assets value per share dropped to RMB 1.00, down 30.1% from RMB 1.43[10]. - Net cash per share decreased to RMB 0.60, a decline of 43.9% from RMB 1.07[10]. - For the financial year 2021/22, the total revenue decreased by 4.2% year-on-year to RMB 569,000,000[49]. - The consolidated gross profit increased by 0.7% year-on-year to RMB 357,900,000, with a gross profit margin of 62.9%, up 3.1 percentage points from the previous year[49][52]. - Selling and distribution expenses increased by 8.1% year-on-year to RMB 259,200,000, with the ratio to total revenue rising to 45.6%[54]. - General and administrative expenses decreased by 36.6% to RMB 93,300,000, resulting in a reduction of 8.4 percentage points in the expense ratio to 16.4%[58]. - Other income decreased by 47.6% year-on-year to RMB 4,600,000, primarily due to the absence of one-off incentives from local governments[60]. - Income tax expense decreased by 66.2% year-on-year to approximately RMB 20,900,000, attributed to provisions related to relocation compensation[65][68]. Inventory and Cash Management - As of February 28, 2022, the Group's inventory balance was RMB 186,300,000, representing an increase of 22.1% compared to the previous year[66][69]. - As of February 28, 2022, the finished goods inventory amounted to RMB 186.3 million, representing a year-on-year increase of 22.1% from RMB 152.6 million[71]. - The proportion of inventory aged one year or less increased to 71.4% as of February 28, 2022, compared to 47.2% on February 28, 2021[74]. - The inventory turnover for finished goods decreased by 24 days to 293 days for the year ended February 28, 2022, down from 317 days in 2021[74]. - The Group's cash and bank balances decreased by 41.4% year-on-year to RMB 442.6 million as of February 28, 2022, down from RMB 754.9 million[75]. - The quick ratio at the end of the financial year was 3.8 times, a decrease from 7.2 times on February 28, 2021[75]. - The Group borrowed a bank loan of RMB 40.4 million during the year, with a remaining balance of RMB 20.2 million as of February 28, 2022[75]. - The Group maintains sufficient cash flow despite the retail market not returning to pre-pandemic levels, with adequate financial resources for future development needs[79]. - The Group has adopted a prudent inventory management strategy, actively clearing off-season items to reduce their proportion in ending inventory[74]. - The Group's financial position remains strong, with access to banking facilities for working capital if necessary[75]. Retail Performance and Strategy - Annual retail revenue decreased by 4.2% year-on-year to RMB 569,000,000, compared to RMB 594,200,000 in the previous year[86]. - Same store sales declined by 0.2%, an improvement from the previous year's decline of 10.5%[86]. - Retail sales in Mainland China decreased by 3.9% to RMB 560,700,000, down from RMB 583,600,000 in the previous year[94]. - The Group maintained a retail network of 389 stores in Mainland China, with a net increase of 6 self-owned stores and a net decrease of 6 franchise stores[89]. - As of February 28, 2022, there were 297 core brand le saunda stores, unchanged from the previous year, while LINEA ROSA stores decreased by 6 to 34[89]. - The retail environment remains challenging due to pandemic-related restrictions, impacting consumer spending and store performance[94]. - The Group is enhancing online sales and customer interaction while reviewing the physical store network to improve efficiency and same-store sales growth[95]. - The Group's proactive measures included expanding online sales channels through livestream shopping and upgrading the membership system to WeChat Mini Program[86]. - Revenue from the e-commerce business decreased by 4.8% year-on-year due to the impact of new infections and natural disasters[101]. - Sales in Hong Kong and Macau decreased by 21.8% year-on-year to RMB 8,300,000, down from RMB 10,600,000 in the previous year[106]. Marketing and Brand Development - The Group strategically expanded its store network in promising areas while closing inefficient ones to enhance efficiency and focus on brand management and product development[36]. - The Group adopted a live-streaming sales model as part of its marketing strategy to enhance brand influence and encourage offline consumption[38]. - The Group aims to maintain its leading position in mid-to-high-end women's footwear by capitalizing on market rebounds as retail activities in Mainland China pick up[37]. - The Group is focused on integrating online and offline operations to adapt to the evolving retail landscape shaped by the pandemic[38]. - The Group continues to explore new online channels to meet the shopping habits of the new generation[38]. - The Group emphasizes the importance of high-quality services in its physical stores to enhance customer experience[42]. - The Group is committed to optimizing operational efficiency to meet consumer needs and improve shopping experiences[44]. - The Group aims to enhance its online and offline channel integration and optimize the supply chain to ensure stable online supply[105]. - The Group plans to focus on social e-commerce and collaborate with internet celebrities to promote products and increase brand awareness[112]. - The Group will enhance membership services through the VIP Mini Program to increase customer loyalty and improve interaction[112]. - The Group expects profitability to improve in the coming year due to a gradually improving marketing environment and accelerated turnover of goods[120]. Corporate Governance and Management - The Company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee various affairs[160]. - The Chief Executive Officer position has been vacant since October 2019, with responsibilities currently handled by other Executive Directors[153]. - The Company has complied with the Corporate Governance Code, except for the separation of the roles of Chairman and Chief Executive Officer[153]. - The Group is committed to enhancing corporate governance practices to align with statutory and professional standards[154]. - The Board comprises independent non-executive directors with extensive backgrounds in finance and management, enhancing corporate governance[144][145]. - The Board will continue to review and enhance governance practices in line with business growth[157]. - Independent Non-Executive Directors represent not less than one-third of the Board, ensuring checks and balances for safeguarding shareholder interests[170]. - The Company ensures that all Directors have the required character, integrity, and familiarity with the Group's business and culture[169]. - The Board is responsible for overall strategies, policies, and monitoring the Group's financial and operational performance[176]. - Each Director is entitled to seek independent professional advice at the Company's expense under appropriate circumstances[175]. - The Company has arranged directors' and officers' liability insurance to cover costs and liabilities arising from corporate activities[194].
莱尔斯丹(00738) - 2022 - 年度财报