Financial Performance - The group's sales revenue reached RMB 8.198 billion, representing a decline of about 18% year-on-year[150]. - In 2022, the company achieved a revenue of RMB 1.124 billion, representing a 16% increase compared to the previous year, despite a net loss attributable to the parent company of RMB 393 million[196]. - The total retail sales of consumer goods in China approached RMB 44 trillion in 2022, a decrease of 0.2% compared to the previous year[41]. - The total customer footfall for the year was 39.07 million, a decrease of approximately 20% compared to the previous year[150]. - The company provided rental reductions totaling approximately RMB 35 million to support merchants during the year[150]. Market and Economic Outlook - The retail sector is expected to recover rapidly, driven by strong consumer demand from over 1.4 billion people and an ongoing trend of consumption structure upgrades[5]. - In 2023, the overall Chinese economy is expected to improve, with job growth and rising household income likely to boost consumer spending[16]. - The company aims to leverage policy benefits to drive growth and actively participate in the dual circulation economic strategy, enhancing consumer experience with "big brands, small prices" offerings[196]. - The company has identified strategic risks stemming from macroeconomic trends and the sustainability of its corporate strategy[21]. Corporate Strategy and Development - The company aims to transition from a real estate enterprise to a retail enterprise, focusing on profit-centered operations and customer-centered services[6]. - The company plans to enhance its market capabilities, operational efficiency, and digital capabilities to solidify its long-term development[6]. - The company is focused on enhancing its digital marketing capabilities to optimize customer experience and retention[55]. - The company plans to implement a diversified strategy to promote light-asset projects, further solidifying its leading position in the outlet industry[197]. Consumer Engagement and Marketing - The company has implemented various consumer promotion policies to enhance consumption capacity and improve consumption conditions, aiming to stimulate domestic demand[17]. - The company has actively engaged in innovative marketing strategies, significantly reducing ineffective spending and enhancing merchant participation[27]. - The company launched a "super product live streaming" event in May 2022, which significantly boosted sales performance, resulting in a 20% increase in total foot traffic and sales[182]. - The company established nearly 500 WeChat groups, attracting over 100,000 fans and generating direct sales of nearly RMB 10 million, with around 50,000 customers visiting stores[188]. Corporate Governance and Compliance - The board of directors does not recommend the distribution of any dividends for the year ended December 31, 2022[23]. - The company has confirmed compliance with non-competition commitments under the second revised non-competition agreement during the year[68]. - The board consists of nine members, including two executive directors and three independent non-executive directors, with no significant relationships among them[137]. - The company has established a compliance culture to ensure adherence to listing rules and regulatory requirements[132]. Risk Management - The company has faced market risks due to domestic real estate policies, pandemic impacts, and market competition[22]. - The board is committed to maintaining good corporate governance standards and effective risk management as a foundation for long-term success[132]. - The audit committee is responsible for reviewing financial statements and providing important opinions on financial reporting matters[148]. Employee and Board Diversity - As of December 31, 2022, the company had 722 employees, with approximately 50.8% being female, indicating a commitment to gender diversity[141]. - The company has adopted a diversity policy for board members, emphasizing the importance of diversity in maintaining competitive advantage[138]. - The company has implemented a comprehensive training program for directors, ensuring they receive adequate professional development[147]. Asset Management and Investments - The group issued an asset-backed securities plan with a total amount of RMB 3,579,000,000, including RMB 2,700,000,000 in senior securities at a fixed interest rate of 5.2%[1]. - The company issued 905,951,470 Class B convertible preferred shares to acquire 100% equity in Beijing Innovation Real Estate Investment Co., Ltd. and Zhejiang Outlets Property Co., Ltd. as part of a purchase agreement signed on June 8, 2016[78]. - The company raised funds by issuing 313,140,124 perpetual convertible securities to Smart Win Group Limited and 200,045,787 perpetual convertible securities to KKR CG Judo Outlets on November 25, 2016[78]. Operational Challenges - Multiple outlet projects experienced closures exceeding 40 days, significantly impacting customer traffic and sales, particularly in Beijing, Kunshan, Zhengzhou, Nanchang, and Qingdao[48]. - The impact of the pandemic in 2022 was significantly greater than in the previous year, affecting the overall business performance[48]. - The company maintained its leading position in the domestic outlet industry with all 15 self-operated outlet projects now open[196].
首创钜大(01329) - 2022 - 年度财报