Business Performance - The Group's total revenue in 2021 was approximately RMB292.0 million, a decrease of approximately RMB111.9 million or 27.7% compared to 2020[29]. - Net loss attributable to owners of the Company was approximately RMB170.1 million, an increase of approximately RMB59.7 million or 54.1% in loss compared to 2020[29]. - The continued impact of the COVID-19 pandemic and the closure of loss-making stores contributed to the overall revenue decline in 2021[46]. - The Group's gross profit for 2021 was approximately RMB122,916,000, a decrease of approximately RMB38,774,000 or 24.0% from RMB161,690,000 in 2020, with a gross profit margin of 42.1%[53][56]. - Other income, gains, and losses for 2021 amounted to approximately RMB6,188,000, a decrease of approximately RMB41,117,000 from RMB47,305,000 in 2020, primarily due to reduced gains from property disposals and COVID-19 related subsidies[54][57]. - The overall revenue decline was attributed to the pandemic's impact on store operations and customer traffic, affecting daily necessity products[49]. Store Operations and Strategy - The Group closed 55 loss-making stores in 2021, significantly reducing operating costs and eliminating outdated production facilities[30]. - The Group plans to focus on R&D of new products to align with current consumer trends, aiming to provide healthier and more aesthetically pleasing products[31]. - The Group will enhance its online sales channels and establish strategic partnerships with well-known online sales platforms to drive product traffic[37]. - The Group's strategy includes exploring new business forms such as online sales and OEM bakery products to improve future performance[102]. - The management remains optimistic about the bakery industry in China, citing continuous economic growth, low entry barriers, and an expanding customer base from first and second-tier cities to third and fourth-tier cities[105][108]. Financial Position - The current ratio as at 31 December 2021 was 14.4%, down from 25.5% as at 31 December 2020, primarily due to the decrease in bank and cash balances[87]. - The Group's gearing ratio increased to approximately 145.9% as at 31 December 2021 from 105.9% in 2020, attributed to decreased cash balances and increased borrowings[87]. - Total equity amounted to a deficit of approximately RMB206,037,000 as at 31 December 2021, compared to a deficit of approximately RMB35,912,000 in 2020[99]. - The Group's total distributable reserves as of December 31, 2021, were approximately RMB227,596,000, which includes share premium, reserves, and profits[170]. Human Resources and Management - As of December 31, 2021, the Group had a total of 2,018 employees, down from 2,604 employees as of December 31, 2020, reflecting a workforce optimization strategy[102]. - The management team includes experienced professionals with over 30 years in the bakery and trade industries, enhancing operational expertise[121]. - The Group's human resources work focuses on training and controlling labor costs[196]. - The remuneration of executive Directors is reviewed by the Remuneration Committee and is determined based on qualifications, experience, duties, responsibilities, and performance[192]. Research and Development - The R&D department is focused on enhancing mass production technology and developing a variety of new products, including themed cakes for various festivals[106][109]. - Ongoing research and development efforts are aimed at enhancing product offerings, with an investment of RMB 2 million allocated for new technology initiatives[115]. Market Expansion and Future Outlook - The company has outlined a positive outlook for the upcoming year, projecting a revenue growth of 10% to 15% based on current market trends and product demand[115]. - The company is actively pursuing market expansion strategies, targeting new regions with a projected increase in market share of 5% over the next year[115]. - A new strategic partnership has been established, expected to enhance distribution channels and improve customer access to products[115]. Corporate Governance - The Group's commitment to food safety remains a top priority amidst ongoing industry risks[139]. - The Group is committed to maintaining high standards of corporate governance through its audit and nomination committees[126]. - The composition of the Board and the summary of the work of all Board committees are included in the "Corporate Governance Report" section of the annual report[137].
克莉丝汀(01210) - 2021 - 年度财报