ESG and Stakeholder Engagement - The Group conducted a materiality assessment to identify key ESG issues, confirmed by the Board and senior management[1] - The preparation approach of the ESG Report is consistent with the previous year, including FY2021 for comparison[2] - The Group maintained close communication with key stakeholders, including government, shareholders, employees, and customers, throughout FY2022[10] - Stakeholders expressed expectations for sustainable profitability, shareholder return, and corporate governance[12] - The Group aims to improve potentially overlooked ESG performances by collaborating with stakeholders in decision-making processes[14] - A questionnaire was compiled to collect responses and opinions from stakeholders regarding identified material ESG issues[17] - The Group's material ESG issues are categorized based on their relative importance to the business and stakeholders[19] Economic Overview - China's GDP for 2022 reached RMB 121.02 trillion, growing by 3.0% at constant exchange rates[23] - The IMF forecasts China's growth to remain at 5.2% for 2023, a revision of 0.8 percentage points from previous estimates[23] - China is expected to contribute one-third of global growth in 2023, with a 1.0% increase in China's growth leading to a 0.3% increase in associated economies[23] - The global economic growth is projected to slow from 3.2% in 2022 to 2.7% in 2023, marking the weakest growth since 2001, excluding the global financial crisis and the Covid-19 pandemic[22] - The IMF has noted significant differences in growth rates among countries, with emerging economies, particularly in Asia, expected to drive growth[22] - The ongoing geopolitical tensions and high inflation continue to pose challenges for a strong economic recovery globally[22] Business Segment Performance - The Group's money lending segment maintained steady business growth, generating a good revenue stream during 2022[25] - The eCommerce subsidiary faced difficulties due to global uncertainties, including flight delays and country lockdowns, impacting performance[25] - The online education business segment in China was suspended in 2022, with plans to resume operations after restructuring later this year[25] - The lending business in Hong Kong maintained strong demand despite global economic uncertainty, with a focus on sub-mortgage loans for high net worth customers[27] - The eCommerce subsidiary faced challenges in 2022 due to the prolonged U.S.-China trade battle and Covid-19 pandemic, resulting in reduced business and market demand[28] - The online education business in China was suspended in July 2021 due to regulatory changes, with plans for future engagement in vocational training and restructuring for new operations[34] - The company operates three reporting segments, each with different business strategies to meet market needs[25] Financial Performance - The Group's profit for the year ended 31 December 2022 was approximately RMB10.8 million, a significant improvement from a loss of approximately RMB255.9 million in the previous year[102] - Earnings per share attributable to the owners of the Company was approximately RMB0.26 for the year ended 31 December 2022, compared to a loss per share of approximately RMB6.49 for the year ended 31 December 2021[102] - The Group's total equity as of 31 December 2022 was approximately RMB141.8 million, up from RMB53.8 million in 2021[102] - The Group's bank balances and cash as of 31 December 2022 were approximately RMB44.2 million, slightly down from RMB44.6 million in 2021[102] - The Group's outstanding promissory notes as of 31 December 2022 amounted to approximately RMB159.3 million, down from RMB242.8 million in 2021[102] - The Group's gearing ratio as of 31 December 2022 was 47%, a decrease from 69% in 2021[105] - The Group's cost of sales decreased by approximately 68.3% from RMB101.1 million in 2021 to approximately RMB32.1 million in 2022, mainly due to reduced eCommerce revenue and the suspension of internet education services[92] - Gross profit slightly decreased by approximately 1.7% to RMB24.9 million for the year ended 31 December 2022, compared to RMB25.3 million in 2021[92] - Other gains increased to approximately RMB86.9 million for the year ended 31 December 2022, up from RMB64.4 million in 2021, due to the issuance of convertible preference shares[96] Regulatory and Structural Changes - The restructuring of Wowxue is ongoing, with all VIE Agreements terminated as of December 31, 2022[48] - The ICP license for Wowxue was surrendered and cancelled in 2022, with the restructuring expected to be completed in mid-2023[86] - The Group plans to explore potential projects in education-related business once the restructuring processes are completed[87] - The PRC Legal Adviser confirmed that the VIE structure and Agreements do not violate prevailing laws in China[143] - The Company plans to unwind the VIE Agreements once regulations allow foreign investors to operate value-added telecommunications businesses without a VIE structure, though the timeline for this remains uncertain[142] Human Resources - As of December 31, 2022, the Group employed approximately 47 staff members in mainland China and Hong Kong, a decrease from 83 in 2021[55] - Total staff costs for the year were approximately RMB11.5 million, down from RMB13.8 million in 2021[55] - The Company expressed gratitude to staff and partners for their support during challenging market conditions, particularly during the Covid-19 pandemic[39] Market Trends and Challenges - The Chinese eCommerce market was valued at USD 1,156.3 billion in 2022, making it the largest eCommerce market globally[68] - The pandemic and government regulations have led to a substantial increase in eCommerce activities as consumers shifted to online shopping[69] - The "double reduction" policy in China significantly affected the after-school tutoring industry, which was previously valued at $112 billion[72] - The introduction of the Revised Vocational Education Law in April 2022 emphasized the importance of vocational education in China, providing new opportunities for growth[75] - The demand for accurate satellite location-based services is increasing across various sectors, including smart city development and logistics[87]
赛伯乐国际控股(01020) - 2022 - 年度财报