Financial Performance - The Group's turnover for the year ended December 31, 2022, was approximately RMB 301.1 million, representing an increase of 24.3% compared to 2021[14]. - The gross profit margin was approximately 24.9%, while the net loss margin was approximately 4.8%[14]. - The Group recorded a loss attributable to owners of the Company of approximately RMB 15.1 million, a decrease of 14.6% from a loss of approximately RMB 17.7 million in 2021[14]. - Revenue increased from RMB242.2 million in 2021 to RMB301.1 million in 2022, representing a growth of 24.3%[32]. - CMS business revenue decreased by 2.7% to RMB195.0 million, accounting for 64.8% of total revenue, while OBM business revenue surged by 154.0% to RMB106.1 million, making up 35.2% of total revenue[27]. - Revenue from the CMS business decreased from approximately RMB200.5 million in 2021 to approximately RMB195.0 million in 2022, representing a decrease of approximately 2.7%[47]. - Revenue from the OBM business increased from approximately RMB41.8 million in 2021 to approximately RMB106.1 million in 2022, representing an increase of approximately 154.1%[49]. - The Group's total revenue from fabric care, personal hygiene, and home care products was RMB18.6 million, a new addition to the revenue stream[30]. - Clothing and other products generated revenue of RMB249.4 million, representing a 22.9% increase from the previous year[30]. Acquisitions and Investments - The Group acquired Zhejiang Kelee, which is engaged in the research and development, manufacturing, and sale of fabric care, personal hygiene, and home care products[13]. - The Group acquired High Kelee Investment Holdings Limited, which focuses on R&D, manufacturing, and sales of fabric care and personal hygiene products[38]. - The company acquired 100% of the issued share capital of High Kelee for a total consideration of HK$42.8 million, with HK$8.8 million paid in cash and the remainder settled through the issuance of 170 million shares at HK$0.2 each[110]. - The Group invested RMB6 million for a 15% equity interest in Diamond Virtue Limited in December 2022[39]. - The guaranteed net profit for Zhejiang Kelee for the years ending December 31, 2022, and 2023 was set at no less than RMB 20 million in total, with each year required to be at least RMB 10 million[115]. Financial Position - The Group maintained a healthy financial position with net current assets of RMB 59.9 million and a net cash position at the financial year-end[14]. - As of December 31, 2022, the total bank balances and cash decreased to approximately RMB47.6 million, a decrease of approximately RMB52.1 million compared to December 31, 2021, mainly due to net repayment of borrowings of approximately RMB22.3 million and capital expenditure of approximately RMB40 million[84]. - The Group's borrowings amounted to approximately RMB71.9 million as of December 31, 2022, with a current ratio of 164.6% and a gearing ratio of 19.6%[85]. Operational Efficiency - The establishment of the "Party Culture Industrial Park" in Yiwu aims to enhance production efficiency and collaboration within the industry[33]. - 65% of the gross floor areas of Yiwu and Yichun Production Plants were sub-leased as of December 31, 2022[36]. Cost and Expenses - Cost of sales increased by approximately RMB49.8 million, from approximately RMB176.2 million in 2021 to approximately RMB226.0 million in 2022[59]. - Selling expenses increased by approximately RMB0.4 million, from approximately RMB5.1 million in 2021 to approximately RMB5.5 million in 2022[61]. - Administrative and other operating expenses increased by approximately RMB9.0 million, from approximately RMB86.7 million in 2021 to approximately RMB95.7 million in 2022[62]. - The income tax expense increased from an income tax credit of approximately RMB433,000 in 2021 to approximately RMB3.7 million in 2022, primarily due to an increase in deferred tax recognized[76]. - Finance costs slightly increased from approximately RMB4.5 million in 2021 to approximately RMB4.6 million in 2022, mainly due to an increase in the average borrowings interest rate[74]. Employee and Compensation - Total staff costs for the year amounted to approximately RMB77.5 million, an increase from RMB70.5 million in 2021[97]. - The company has adopted a stock option plan to recognize and reward employee contributions, aiming to retain talent for continued growth[104]. - The employee compensation policy is regularly reviewed by the compensation committee based on performance, qualifications, and market statistics[104]. - As of December 31, 2022, the company had approximately 567 employees, with total employee costs amounting to RMB 77.5 million, an increase from RMB 70.5 million in 2021[103]. Governance and Compliance - The company has fully complied with the Corporate Governance Code for the year ended December 31, 2022, demonstrating commitment to high standards of corporate governance[127][132]. - The board consists of five directors, including two executive directors and three independent non-executive directors, ensuring a balanced governance structure[139][142]. - The independent non-executive directors play a significant role in providing impartial views on the company's strategies and performance, ensuring shareholder interests are considered[146][147]. - The company has established an internal control system to maintain checks and balances within its operations[128]. - The chairman and CEO roles are segregated, with Mr. Teng Hao as Chairman and Mr. Xu Chengwu as CEO, ensuring effective leadership and management[144][145]. Risk Management and Internal Control - The Audit Committee is responsible for reviewing the interim and annual reports and overseeing the Company's financial reporting system[193]. - Risk assessment and internal control reports were evaluated, focusing on the effectiveness of the risk management and internal control system[200]. - The effectiveness of the internal audit function performed by an independent professional adviser was reviewed[200]. Future Outlook - The operating environment remains uncertain in 2023, but the Group is committed to delivering sustainable growth[19]. - The Group aims to diversify its business and broaden revenue streams by acquiring intellectual property rights and collaborating with companies in upstream and downstream industries[20]. - The Group will continue to evaluate and identify target companies with investment value that can generate synergies within the industry[20].
中国派对文化(01532) - 2022 - 年度财报