COVID-19 Impact and Recovery - In 2022, the company faced significant challenges due to the COVID-19 pandemic, leading to the cancellation or postponement of offline marathon events, impacting overall performance [8]. - The company reported a significant impact on its operations due to the pandemic, with a focus on adapting to new market conditions and consumer behaviors [10]. - The company anticipates a gradual recovery in the sports industry, with a focus on health and fitness as public interest in physical well-being increases [11]. - The recovery of profitability is expected to require multiple cycles, with a focus on diversifying sponsorship sources due to the impact of the pandemic on existing sponsors [105]. - The company believes that the sales market in the sports industry will rebound after the COVID-19 pandemic [136]. Business Strategy and Diversification - The company aims to diversify its business by exploring various sports-related services and products to meet consumer demands in the post-pandemic era [9]. - The company is actively preparing for events scheduled for 2023, including marathons that were postponed due to pandemic restrictions [10]. - The company is exploring new strategies to increase its resilience against market fluctuations and enhance its service offerings [9]. - New business expansion efforts are being approached cautiously to minimize initial capital investment while ensuring thorough market research [105]. - The company aims to expand the consumer market in sports and health sectors while continuously exploring product development and market research [136]. Financial Performance - The company's revenue decreased approximately 59.0% from RMB 12.2 million for the year ended December 31, 2021, to RMB 5.0 million for the year ended December 31, 2022, primarily due to the severe impact of the COVID-19 pandemic on the sports industry [13]. - The service costs dropped about 87.9% from RMB 12.4 million for the year ended December 31, 2021, to RMB 1.5 million for the year ended December 31, 2022, also due to the pandemic's impact [13]. - The gross profit for the year ended December 31, 2022, was RMB 3.5 million, compared to a gross loss of RMB 0.2 million for the year ended December 31, 2021, resulting in a gross margin of 70.0% [14]. - The net loss attributable to the company’s owners increased about 58.0% from RMB 47.8 million for the year ended December 31, 2021, to RMB 75.5 million for the year ended December 31, 2022 [21]. - Cash and cash equivalents as of December 31, 2022, were approximately RMB 172.4 million, compared to RMB 127.4 million as of December 31, 2021 [22]. Corporate Governance - The company has maintained compliance with the corporate governance code throughout the year ending December 31, 2022 [49]. - The board of directors held four meetings throughout the year, ensuring effective leadership and oversight of the company's affairs [53]. - The company has established three committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, to oversee specific aspects of corporate governance [72]. - The board includes at least three independent non-executive directors, meeting the requirement of being at least one-third of the board [55]. - Continuous professional development was provided to all directors, covering corporate governance, regulatory updates, financial and accounting knowledge, and industry updates [67]. Environmental, Social, and Governance (ESG) Initiatives - The company has set carbon reduction targets compared to the 2019 baseline, aiming for a 1% reduction in air emissions by 2025, 2% by 2027, and 3% by 2030 [158]. - The board is committed to integrating climate-related issues and ESG factors into long-term business strategy planning [142]. - The company reported a total greenhouse gas (GHG) emissions of 35.06 tons CO2 equivalent in 2022, a decrease of 37% from 55.83 tons in 2021 [163]. - The company has implemented measures to reduce emissions, such as encouraging employees to use trains for business trips under 1,300 kilometers [167]. - The company aims to enhance internal policies and improve ESG management and performance through active communication with stakeholders [156]. Employee Management and Turnover - The employee turnover rate for 2022 was 26.67%, with a breakdown of 27.27% for males and 25.00% for females [198]. - The total number of employees as of December 31, 2022, was 15, with 14 being full-time employees [198]. - The group provided competitive compensation and benefits, including retirement insurance and basic medical insurance [199]. - The employee turnover rate during the reporting period was calculated as 15 employees who left divided by the total number of employees at the end of the reporting period [200].
中国前沿科技集团(01661) - 2022 - 年度财报