Financial Performance - For the fiscal year ending December 31, 2021, the group's revenue was approximately RMB 741.635 million, a decrease of about RMB 147 million compared to the fiscal year 2020[42]. - The net loss attributable to shareholders for the fiscal year 2021 was approximately RMB 38.045 million, an increase in loss of about RMB 21.5 million compared to the fiscal year 2020[42]. - The decline in revenue and increase in net loss were primarily due to the impact of the COVID-19 pandemic and the pressure from online e-commerce, which led to reduced sales in retail and wholesale distribution[42]. - The group's gross profit for the fiscal year 2021 was RMB 107.843 million, down from RMB 125.817 million in the previous year[39]. - Operating loss for the fiscal year 2021 was RMB 27.273 million, compared to an operating loss of RMB 2.702 million in fiscal year 2020[39]. - The company's revenue for the fiscal year 2021 was approximately RMB 742 million, a decrease of about RMB 147 million compared to the fiscal year 2020[59]. - Retail store revenue for fiscal year 2021 was approximately RMB 607.6 million, down by about RMB 84.1 million or 12.2% from fiscal year 2020[72]. - Wholesale distribution revenue for fiscal year 2021 was approximately RMB 134.0 million, a decrease of about RMB 63.0 million or 32% compared to fiscal year 2020[72]. - The company's gross profit margin increased to 14.5% in fiscal year 2021 from 14.2% in fiscal year 2020, primarily due to improved management of fresh products[75]. - Other operating income for fiscal year 2021 was approximately RMB 30.7 million, a decrease of about RMB 4.3 million or 12.3% compared to fiscal year 2020[78]. - Sales and distribution costs for fiscal year 2021 were approximately RMB 133.9 million, an increase of about RMB 6.6 million or 5.2% from fiscal year 2020[79]. - Administrative expenses for fiscal year 2021 were approximately RMB 31.8 million, a decrease of about RMB 4.3 million or 11.9% compared to fiscal year 2020[80]. - Financing costs for fiscal year 2021 were approximately RMB 10.6 million, a decrease of about RMB 0.9 million or 7.8% from fiscal year 2020[81]. - The total comprehensive expenses attributable to shareholders for fiscal year 2021 were approximately RMB 38.4 million, an increase of about RMB 20.2 million or 111.0% compared to fiscal year 2020[87]. - The group incurred an impairment loss of RMB 12,000 on properties, plants, and equipment in fiscal year 2021, primarily due to the impact of the COVID-19 pandemic on retail operations in Macau[82]. Assets and Liabilities - Total assets less current liabilities as of December 31, 2021, amounted to RMB 256.883 million, a decrease from RMB 316.279 million in the previous year[39]. - Non-current assets were valued at RMB 170.933 million as of December 31, 2021, down from RMB 186.444 million in the previous year[39]. - Current liabilities stood at RMB 224.702 million as of December 31, 2021, compared to RMB 284.003 million in the previous year[39]. - The company's net assets attributable to shareholders were RMB 199.751 million as of December 31, 2021, a decrease from RMB 238.160 million in the previous year[39]. - As of December 31, 2021, the group had cash and cash equivalents of approximately RMB 103.3 million, a slight decrease from RMB 104.0 million as of December 31, 2020[90]. - The group had a net asset value of approximately RMB 200.8 million as of December 31, 2021, down from RMB 239.5 million as of December 31, 2020[90]. - The total bank borrowings as of December 31, 2021, were approximately RMB 60.0 million, a decrease from RMB 108.0 million as of December 31, 2020[95]. Business Operations and Strategy - The retail and wholesale distribution business faced increased costs, contributing to the overall financial challenges experienced during the fiscal year 2021[42]. - The company opened one new retail store and closed four stores, resulting in a total of 68 retail stores by the end of fiscal year 2021[49]. - The company established partnerships with 15 new fruit and vegetable bases, which helped reduce procurement costs by over 5% for approximately 35% of vegetable items[60]. - Online sales increased by approximately 62% compared to the previous year, driven by new sales methods such as live streaming[60]. - The company maintained exclusive distribution rights for 23 brands in Foshan, Jiangmen, and Zhaoqing, focusing on expanding its distributor client base[55]. - The company launched the "Shun Ke Long Fresh Community" model, successfully opening multiple pilot stores to support its business transformation[46]. - The company upgraded 12 physical stores, which is expected to effectively boost sales[60]. - The company has a franchise program that allows interested parties to apply for brand retail store franchises, contributing to its wholesale distribution revenue[56]. - The company is actively expanding its market presence in the Guangdong-Hong Kong-Macao Greater Bay Area and other provinces, particularly in the Hainan Free Trade Zone[46]. - The company plans to enhance consumer loyalty through the new "Shun Ke Long Warehouse Membership Store" model, offering high-quality and differentiated products[63]. - The company aims to expand its online platform, particularly through its own e-commerce platform "Shun Ke Long You Xuan," to integrate online and offline sales channels[63]. - The group plans to reallocate part of the unutilized proceeds from the global offering to renovate existing retail stores to enhance competitiveness in Guangdong Province[196]. Leadership and Governance - Mr. Shang was appointed as the Chairman and Executive Director of the company on February 25, 2022, and has held multiple positions in major companies including serving as the Chairman of Supply and Marketing Group since January 2022[105]. - Mr. Han was appointed as the Chief Executive Officer on July 27, 2020, after serving as the Chief Financial Officer, and has been involved in various roles within the company and its subsidiaries since 2017[110]. - Ms. Wang was appointed as a Non-Executive Director on February 25, 2022, and previously served as the Chief Financial Officer from August 5, 2020, to February 25, 2022[115]. - The company has a strong leadership team with extensive experience in finance and management across various sectors, including logistics and technology[109]. - The company is focused on expanding its market presence and enhancing its operational efficiency through strategic leadership changes and management expertise[110]. - The company aims to leverage its leadership's extensive experience to drive growth and innovation in its operations and market strategies[110]. - The company is committed to maintaining high standards of corporate governance and financial transparency, as evidenced by the leadership's previous roles in regulatory compliance[109]. - The strategic appointments within the company are expected to enhance its competitive edge in the market and support future growth initiatives[110]. - The company has a strong governance structure with independent non-executive directors overseeing audit and remuneration committees[118]. - The management team includes professionals with extensive experience in finance and corporate governance, enhancing the company's strategic decision-making capabilities[120]. - The company emphasizes compliance and governance, with a dedicated company secretary managing regulatory affairs[126]. - The board of directors includes members with diverse backgrounds in finance, law, and corporate governance, contributing to comprehensive oversight[121]. Corporate Governance and Compliance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules and has complied with all provisions as of December 31, 2021[128]. - The board held five meetings during the year ending December 31, 2021, with attendance rates for individual directors recorded[138]. - The company has implemented a board diversity policy, considering various measurable aspects such as gender, age, and professional experience to enhance performance quality[134]. - The board is responsible for leading and controlling the company, making objective decisions in the best interest of the company[142]. - The company has arranged appropriate directors' and officers' liability insurance for potential legal claims against its directors and senior management[141]. - New appointees to the board receive formal training to understand the company's operations and their responsibilities under listing rules[145]. - The company has a nomination committee that monitors the execution of the board diversity policy and reviews it periodically[134]. - All directors have confirmed compliance with the standard code for securities trading as of December 31, 2021[129]. - The board's decision-making retains authority over significant matters, including policies, strategies, and financial information[143]. - The company encourages directors and senior management to participate in relevant training courses to enhance their knowledge and skills[145]. - The board of directors has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific written terms of reference[150]. - The Audit Committee consists of three independent non-executive directors and has held four meetings during the year ended December 31, 2021[151][152]. - The Remuneration Committee reviewed the remuneration policy and performance of executive directors during the year ended December 31, 2021[155]. - The Nomination Committee assessed the independence of independent non-executive directors and reviewed the board's structure and diversity during the year ended December 31, 2021[156]. - The annual audit fee charged by Shinewing (HK) CPA Limited was RMB 1,080,000, while the interim review fee was RMB 100,000[166][167]. - All independent non-executive directors confirmed their independence according to the listing rules, with none serving for more than nine years[146]. - The board members are required to retire and seek re-election at least every three years[146]. - The company has received independent confirmations from all independent non-executive directors regarding their independence[146]. - The board of directors is responsible for preparing the consolidated financial statements, ensuring they present a true and fair view of the group's financial position as of December 31, 2021[169]. - The company has not identified any significant uncertainties that may cast doubt on its ability to continue as a going concern[169]. - The company appointed Shinewing (HK) CPA Limited as the external auditor for the year ended December 31, 2021[171]. - The company has implemented strict internal control and risk management systems to maintain business performance and reputation[173]. - The board believes that the risk management and internal control systems are adequate and effective for the year ended December 31, 2021[173]. - The company did not have an internal audit function for the year ended December 31, 2021, and hired an independent consultant for evaluation[173]. - The company emphasizes effective communication with shareholders through various channels, including annual reports and shareholder meetings[179]. - The board held one shareholder meeting during the year ended December 31, 2021[179]. Market Outlook and Future Plans - The company operates as an investment holding company with a focus on supermarket chain operations in Guangdong Province, China[183]. - The group reported a financial performance discussion and analysis for the year ending December 31, 2021, highlighting key risks and uncertainties faced by the group[184]. - The board has decided not to declare any final dividend for the year ending December 31, 2021[189]. - The net proceeds from the global offering amounted to approximately HKD 188.6 million (equivalent to approximately RMB 155.0 million) after deducting underwriting fees and related expenses[196]. - The group is continuously evaluating the retail market outlook and the economic conditions in China to determine the most effective allocation of resources[196].
中国顺客隆(00974) - 2021 - 年度财报