Company Overview - Lianhua Supermarket has a total of 3,352 stores across 24 provinces and municipalities in China as of December 31, 2022[1]. - The company operates three main retail formats: large supermarkets, hypermarkets, and convenience stores, under various brands including "Century Lianhua" and "Lianhua Supermarket"[1]. - Lianhua Supermarket has been recognized as one of the "Outstanding Franchise Brands" by the China Chain Store & Franchise Association in recent years[1]. - The company maintained its leading position in the fast-moving consumer goods retail sector in China[1]. Financial Performance - In 2022, the company's total revenue was approximately RMB 24.681 billion, a year-on-year decrease of about 0.3%[28]. - The total loss for the year was approximately RMB 0.24 billion, reduced by RMB 2.5 billion compared to the previous year[28]. - The net loss attributable to shareholders was approximately RMB 2.12 billion, a decrease in loss of about RMB 2.11 billion year-on-year[28]. - The company's revenue for 2022 was approximately RMB 24.68 billion, a decrease of about RMB 0.78 billion or 0.3% compared to 2021[42]. - Gross profit for 2022 was approximately RMB 3.38 billion, an increase of about RMB 0.32 billion or 10.5% year-on-year, with a gross margin of 13.70%, up from 12.37% in the previous year[43]. - Other income decreased to approximately RMB 2.06 billion, down by about RMB 0.20 billion or 8.7% compared to the previous year[44]. - The company reported a net loss attributable to shareholders of approximately RMB 0.21 billion in 2022, an improvement from a loss of RMB 0.42 billion in 2021[1]. - The total assets amounted to approximately RMB 22.93 billion, while total liabilities were approximately RMB 21.74 billion, indicating a capital structure under pressure[37]. - The cash flow from operations improved significantly to approximately RMB 1.01 billion, compared to RMB 0.18 billion in 2021[37]. - The company maintained a current ratio of 0.60, indicating liquidity challenges compared to previous years[37]. - The average return on total assets was -0.93%, reflecting ongoing operational difficulties[37]. Pandemic Response and Community Support - The company has expanded its logistics capabilities, providing over 41,000 "Home Comfort Packages" in response to emergency supply demands during the Shanghai pandemic[14]. - Lianhua Supermarket has been involved in community support initiatives, including the distribution of over 113,100 "New Year Gift Packages" to citizens in quarantine during the pandemic[13]. - The company has established a leadership group for pandemic response, ensuring continuous supply of essential goods through its supply chain advantages[14]. - Lianhua Supermarket's logistics company operates 24/7 to meet urgent supply needs, demonstrating its operational resilience[14]. - In Q2 2022, the company achieved a supply guarantee amount of RMB 810 million for pandemic-related living materials[18]. - The company provided over RMB 1 billion in essential supplies during the pandemic, serving over 5,400 community committees and distributing 450,000 citizen gift packages[29]. - The company’s Jiangsu subsidiary provided emergency supplies totaling RMB 928,500 during a pandemic response, delivering 25,645 items[22]. - The company completed over 300,000 orders for epidemic prevention materials and achieved a total supply amount exceeding RMB 1 billion during the year[87]. Store Operations and Expansion - The company opened 348 new stores during the period, including 161 direct-operated and 187 franchised stores, while closing 275 stores[77]. - The net increase in supermarket outlets was 70, with 276 new openings and 206 closures[80]. - The total number of stores as of December 31, 2022, was 3,352, representing a net increase of 73 stores from the previous year[81]. - The company maintained a store renewal rate of 90% across its national network[77]. - The company opened the "New Standard Supermarket 3.0" model store, focusing on fresh produce and enhancing product quality[20]. - The company’s new store in Yiwu introduced 111 high-fit brands, including 23 first stores, to meet local consumer demands[24]. Digital Transformation and Marketing - The company launched its first "Metaverse" concept store, enhancing its digital presence[18]. - The "Light Up Dreams Dinner" campaign reached 2.08 million visits, a 96% year-on-year increase, and added 111,000 new members, a 160% increase[18]. - The company participated in the "Love Shopping Shanghai" electronic coupon initiative, with 594 stores involved, resulting in sales of RMB 156.4 million and government subsidies of RMB 58.93 million[20]. - The company is actively pursuing digital transformation projects to enhance operational efficiency and customer experience through advanced systems and intelligent hardware[88]. - The company plans to enhance its digital transformation strategy, allocating 500 million RMB for technology upgrades and digital marketing efforts[134]. Strategic Focus and Future Outlook - The company plans to focus on business transformation, category optimization, and system upgrades as part of its 2023 strategy[33]. - The company aims to integrate online and offline sales networks to achieve sustainable development in the retail sector[33]. - The management highlighted plans for market expansion and enhancing online business growth in response to changing consumer behavior[40]. - The company is focusing on integrating online and offline sales networks and enhancing the supply chain to improve operational efficiency[97]. - The company will implement a digital transformation strategy, including system upgrades and the establishment of a digital store framework[108]. - In 2023, the company will prioritize business development and expansion in key urban areas while optimizing supply chain and product categories[111]. - The company is exploring potential acquisitions to strengthen its market position, with a budget of 500 million allocated for this purpose[126]. - Overall, the company remains optimistic about future growth, driven by new strategies and market expansion efforts[126]. Shareholder Information and Corporate Governance - The company has not declared any interim or final dividends for the fiscal year 2022[9]. - The company proposed not to distribute a final dividend for the year ending December 31, 2022, based on its financial performance and other factors[163]. - As of December 31, 2022, the total number of issued shares was 1,119,600,000, with H-shares accounting for 372,600,000 shares, representing approximately 33.28% of the total share capital[173]. - The company confirmed that its public float complied with the listing rules during the review period[172]. - The company’s major shareholder, Bailian Group, directly and indirectly holds 45.90% of the company's shares, totaling 513,869,400 shares[184]. - The company’s board of directors and executives do not hold any shares or related interests that require disclosure under the Securities and Futures Ordinance as of December 31, 2022[180]. - The company must comply with regulatory requirements in China for the conversion of non-listed foreign shares into new H shares[181]. - The company has established a framework for resolving disputes between H shareholders and domestic shareholders through arbitration[178].
联华超市(00980) - 2022 - 年度财报