Financial Performance - Revenue for the year ended December 31, 2022, was approximately RMB 64.4 million, a decrease of about RMB 6.2 million or 8.8% compared to RMB 70.7 million for the year ended December 31, 2021[21]. - Gross profit for the year was RMB 4.8 million, down from RMB 8.4 million in the previous year, reflecting a decline in sales and increased costs[8]. - The company reported a loss from continuing operations of RMB 48.2 million for the year, compared to a loss of RMB 43.9 million in 2021[8]. - The group's net loss for the year ended December 31, 2022, was approximately RMB 48.2 million, compared to a net loss of RMB 43.9 million for the previous year[51]. - The company reported a net loss of RMB 48,247,000 for 2022, compared to a net loss of RMB 43,859,000 in 2021, indicating a worsening financial performance[171]. - Loss before tax increased from approximately RMB 43.9 million for the year ended December 31, 2021, to approximately RMB 48.3 million for the year ended December 31, 2022, an increase of about RMB 4.4 million[27]. - Total equity decreased from RMB 154,374,000 in 2021 to RMB 118,375,000 in 2022, representing a decline of approximately 23.3%[174]. - The company’s basic and diluted loss per share improved slightly from RMB 9.33 in 2021 to RMB 8.95 in 2022[171]. Assets and Liabilities - Total assets as of December 31, 2022, were RMB 155.2 million, a decrease from RMB 191.3 million in 2021[10]. - Total liabilities were RMB 36.8 million, slightly down from RMB 37.0 million in the previous year[10]. - Current liabilities increased significantly from RMB 13,618,000 in 2021 to RMB 26,348,000 in 2022, representing a rise of 93.0%[173]. - Cash and bank balances totaled approximately RMB 9.6 million as of December 31, 2022, down from approximately RMB 10.1 million as of December 31, 2021[31]. - The company's cash and cash equivalents decreased slightly from RMB 10,134,000 in 2021 to RMB 9,559,000 in 2022, a decline of 5.7%[173]. Operational Performance - The average selling price of watches decreased during the year, impacting overall revenue[21]. - Sales cost decreased from approximately RMB 62.3 million for the year ended December 31, 2021, to approximately RMB 59.6 million for the year ended December 31, 2022, a reduction of about RMB 2.7 million or approximately 4.3%[23]. - Gross profit decreased from approximately RMB 8.4 million for the year ended December 31, 2021, to approximately RMB 4.8 million for the year ended December 31, 2022, a decline of about RMB 3.6 million or approximately 42.9%, with the overall gross margin dropping from approximately 11.8% to approximately 7.5%[24]. - Selling and distribution expenses decreased from approximately RMB 14.7 million for the year ended December 31, 2021, to approximately RMB 9.0 million for the year ended December 31, 2022, a reduction of about RMB 5.7 million or approximately 38.9%[25]. - Administrative expenses increased from approximately RMB 13.9 million for the year ended December 31, 2021, to approximately RMB 16.4 million for the year ended December 31, 2022, an increase of about RMB 2.5 million or approximately 18.0%[26]. Market Outlook - The luxury watch and jewelry market is expected to remain strong in the long term due to rising disposable income and increased participation of women in the workforce[14]. - The company aims to adapt its business and product mix to meet market demands, focusing on luxury watches and jewelry[13]. - The company is committed to exploring new opportunities and preparing to stand out in the future despite current uncertainties[15]. Corporate Governance - The board of directors has reviewed and confirmed compliance with the corporate governance code during the year ended December 31, 2022[105]. - The board is responsible for determining overall strategy, monitoring operational and financial performance, and managing risks related to achieving the company's objectives[108]. - The company has adopted a remuneration policy that ensures no director can determine their own remuneration[123]. - The company emphasizes the importance of independent non-executive directors in decision-making processes[111]. - The company confirmed that all directors complied with the standards set out in the code for securities transactions from the listing date to the report date[73]. Risk Management - The group faces operational risks from market fluctuations, changing industry standards, competition, and evolving customer demands[52]. - The group’s financial risk management includes liquidity risk, interest rate risk, and currency risk[52]. - The board is responsible for evaluating and determining the nature and extent of risks the company is willing to take to achieve its strategic objectives[133]. Employee and Talent Management - The company plans to enhance its design and development capabilities by recruiting more talent and improving the design team's skills[13]. - The total number of employees decreased from 108 as of December 31, 2021, to 56 as of December 31, 2022, with total salary costs for the fiscal year approximately RMB 3.9 million, down from approximately RMB 12.2 million[37]. - The company has adopted a share option scheme to reward employees for their contributions[95]. Environmental and Social Responsibility - The company is committed to long-term sustainable development and aims to achieve efficient resource utilization and energy conservation[89]. - The company will publish its Environmental, Social, and Governance (ESG) report within three months after the end of each financial year[91].
励时集团(01327) - 2022 - 年度财报