Financial Performance - The company's revenue increased to approximately RMB 364.2 million, showing a slight growth compared to the previous year[62]. - The net profit attributable to the owners of the company was approximately RMB 0.1 million[62]. - The gross profit margin for the year was reported at 17.3%[18]. - The group recorded a gross profit of approximately RMB 631 million for the year ended December 31, 2021, a decrease of about 28.5% compared to RMB 883 million in 2020, primarily due to increased sales volume of lower-margin gold products[65]. - The company's revenue for the year ended December 31, 2021, was approximately RMB 364.2 million, an increase of about 4.7% compared to RMB 347.8 million in 2020[94]. - The company recorded a gross profit of approximately RMB 63.1 million for the year ended December 31, 2021, a decrease of about 28.5% from RMB 88.3 million in 2020, with a gross margin decline from approximately 25.4% to 17.3%[101]. - Other income and losses decreased from approximately RMB 11.5 million in 2020 to about RMB 1.0 million in 2021, primarily due to foreign exchange gains and losses on property, plant, and equipment[102]. Sales Channels and Market Strategy - Online sales contributed 77% of the total revenue, while offline retail accounted for 23%[20]. - The group has integrated online and offline sales channels to develop a new retail model, providing a multi-dimensional shopping experience[79]. - The group has partnered with 49 influencers, including top streamers like Li Jiaqi and Wei Ya, to enhance online sales through live streaming and short video marketing[63]. - The group plans to develop colored gemstones as a new growth point, focusing on the increasing market potential and investment value of high-quality rubies[66]. - The company plans to focus on digital marketing and leverage third-party platforms to enhance brand exposure and capitalize on live-streaming opportunities[89]. - The group has collaborated with major third-party platforms, including JD.com and Tmall, to leverage their traffic for online sales, reaching over 100 million households daily in China[69]. Business Expansion and Investments - The company plans to expand its business operations into the agricultural products new retail sector through an investment in Jiangsu Nongmuren E-commerce Co., Ltd.[27]. - The investment in the agricultural platform is expected to become a major business growth point and core business for the company in 2022[90]. - The company signed an investment agreement to invest in Jiangsu Nongmuren E-commerce Co., Ltd., expanding its business into the essential consumer goods sector[90]. - A new investment agreement was signed to acquire 51% actual ownership of a target company for a total consideration of RMB 26 million, to be injected in two phases[126]. - The company completed the first phase of investment in a target company amounting to RMB 6 million on January 10, 2022[139]. - A second phase of investment of RMB 20 million was initiated, with RMB 3 million already contributed[139]. Operational Adjustments - The company faced significant pressure in the jewelry retail industry due to the impact of the pandemic on consumer demand[62]. - The company implemented various measures to respond to the crisis, including improving business planning and restructuring[62]. - The group opened 26 new stores and closed 86 stores during the year, with no specific plans for further expansion of offline retail networks[65]. - The company closed 86 stores and opened 26 new stores during the year, reflecting a strategic shift in its retail approach[99]. - The group has established 38 CSmall experience stores across 13 provinces and municipalities in China, adapting to the impact of COVID-19 on offline retail[72]. Financial Management and Governance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with the relevant provisions[155]. - The board consists of two executive directors and three independent non-executive directors[160]. - The company is committed to maintaining high levels of corporate governance to protect shareholder interests and enhance corporate value[155]. - The audit committee, consisting of three independent non-executive directors, held two meetings during the year ending December 31, 2021, to review financial reports[182]. - The company established a risk management team to assist the board and audit committee in monitoring the risk management and internal control systems[199]. - The internal audit department was created to provide useful information and recommendations regarding the adequacy and effectiveness of the risk management and internal control systems[200]. Cost Management - The cost of sales increased by approximately 16.0% to about RMB 301.1 million, up from RMB 259.5 million in the previous year, mainly due to increased sales of gold products[100]. - Selling and distribution expenses increased by approximately 8.4% to about RMB 29.7 million for the year ended December 31, 2021, up from RMB 27.4 million in 2020, mainly due to store reopening costs and increased commissions for third-party online sales channels[103]. - Administrative expenses significantly decreased by approximately 24.9% to about RMB 34.3 million for the year ended December 31, 2021, down from RMB 45.7 million in 2020, due to the suspension of the self-operated online platform and a reduction in average employee numbers[105]. Inventory and Cash Management - Inventory turnover days increased to approximately 988.7 days for the year ended December 31, 2021, from 776.2 days in 2020, mainly due to increased procurement of colored gemstones[110]. - Trade receivables turnover days decreased to approximately 51.6 days for the year ended December 31, 2021, down from 221.0 days in 2020, due to a significant reduction in trade receivables[110]. - As of December 31, 2021, the group's cash and bank balances were approximately RMB 312.6 million, a decrease of 52% from RMB 652.8 million as of December 31, 2020[120]. - The company had a net cash position with a net asset liability ratio of approximately -22.4% as of December 31, 2021, improved from -46.0% in 2020, as all trade loans were repaid[111]. Shareholder Returns - No final dividend was recommended for the year ended December 31, 2021, consistent with the previous year[121].
金猫银猫(01815) - 2021 - 年度财报