Financial Performance - The company recorded a loss attributable to equity holders of approximately RMB 6.5 million for the year ended December 31, 2021, compared to a profit of RMB 48.3 million in 2020[16]. - The group's total revenue for the reporting period was approximately RMB 248.8 million, a decrease of about 13.6% compared to RMB 287.8 million in the same period last year[31]. - The gross profit recorded was approximately RMB 65.7 million, with a gross margin of about 26.4%, down from 40.9% in the previous year[31]. - The group reported a loss attributable to equity holders of approximately RMB 6.5 million, compared to a profit of RMB 48.3 million in the previous year[31]. - ODM product segment revenue was approximately RMB 194.3 million, a decrease of about 16.5% from RMB 232.6 million in the previous year, primarily due to the absence of mask sales and the impact of COVID-19[31]. - Brand product segment revenue was approximately RMB 54.5 million, a slight decrease of about 1.4% from RMB 55.2 million in the previous year[34]. - Gross profit for the reporting period was approximately RMB 65.7 million, a decrease of about RMB 52 million or 44.2% compared to the same period last year, primarily due to the absence of sales revenue from high-margin mask products and increased production costs[35]. - Other income and gains for the reporting period were approximately RMB 34.2 million, a decrease of about RMB 41.9 million or 55.1% compared to the same period last year, mainly due to lower government subsidy income[36]. Operational Challenges - The production cost increased by approximately RMB 20 million due to rising labor and material costs, with a turnover rate of over 40% for frontline production staff[16]. - The company acknowledges the challenges posed by the COVID-19 pandemic and rising costs, which have impacted sales performance in both ODM and brand sales segments[16]. - The total number of retail stores decreased from 179 as of December 31, 2020, to 165 as of December 31, 2021, due to the closure of underperforming stores during the COVID-19 pandemic[26]. Strategic Initiatives - The company plans to actively cooperate with quality international brand partners to ensure a stable increase in overseas ODM order volume[18]. - The company aims to significantly develop online retail channels to quickly respond to differentiated consumer demands and create "hit" products to boost online sales[18]. - The company intends to close loss-making self-operated brand stores on schedule to enhance the profitability of remaining stores[18]. - The company will compress management costs and strengthen procurement cost control to optimize production processes and improve efficiency[18]. - The group invested approximately RMB 25.7 million in product design and R&D during the reporting period, up from RMB 20.7 million in the previous year[27]. - The group plans to continue focusing on R&D to improve product quality, functionality, and design, enhancing its R&D capabilities[27]. Management and Governance - The company has over 20 years of experience in the intimate apparel manufacturing industry, established in 2001[72]. - The financial director has over 30 years of experience in accounting and textile industry management, ensuring robust financial oversight[75]. - The company has expanded its management team with experienced professionals in finance and administration, enhancing operational efficiency[88]. - The company is focused on strategic management and operational guidance, leveraging the expertise of its non-executive directors[77]. - The company has a strong emphasis on compliance and internal management, with dedicated roles for financial strategy and internal compliance[75]. - The company has a diverse board with expertise in finance, law, and management, ensuring comprehensive oversight and strategic direction[82]. - The company has established a solid foundation for future growth through its experienced management team and strategic initiatives[88]. Corporate Governance - The company is committed to high standards of corporate governance, adhering to all applicable codes during the reporting period, except for a specific deviation noted in the corporate governance report[100]. - The chairman and CEO, Mr. Jin, continues to hold both positions due to his extensive experience, which the board believes benefits the company and its shareholders[105]. - Independent non-executive directors provide diverse business and financial expertise, contributing to effective governance and safeguarding shareholder interests[106]. - The company has implemented a standard code for securities trading by directors and senior management, ensuring compliance and transparency[101]. - The company has adopted the corporate governance code principles to regulate its business activities and decision-making processes appropriately[100]. - The board consists of seven members, including two executive directors, two non-executive directors, and three independent non-executive directors, ensuring a balanced governance structure[101]. Future Plans and Investments - The company plans to establish a production base in Jiangxi Shangrao, with an expected utilization of HKD 5.5 million from the unutilized proceeds, and aims to complete this by 2024[61]. - The company has no major investments during the reporting period[67]. - There are no other future plans for significant investments or capital assets beyond those disclosed in the prospectus[68]. Environmental and Social Responsibility - The company aims to enhance its sustainable development practices and has appointed Riskory Consultancy Limited for ESG consulting services[200]. - The group is dedicated to implementing clean production and complying with local environmental laws and regulations[175].
博尼控股(01906) - 2021 - 年度财报