Financial Performance - For the fiscal year ending December 31, 2022, the company reported revenue of RMB 376.4 million, a decrease of 8.1% from RMB 409.8 million in 2021[9]. - The company's profit before tax for 2022 was RMB 25.4 million, down 39.0% from RMB 41.8 million in 2021[9]. - Net profit attributable to the company's owners for the year was RMB 15.2 million, a decline of 44.0% compared to RMB 27.2 million in the previous year[9]. - The company's revenue decreased by approximately 8.2% from RMB 409.8 million in the year ended December 31, 2021, to RMB 376.4 million in the year ended December 31, 2022[18]. - Gross profit for the year ended December 31, 2022, was approximately RMB 111.8 million, a decrease of about 14.1% from RMB 130.2 million in 2021, with gross margin dropping from 31.8% to 29.7%[20]. - The company's net profit for the year ended December 31, 2022, was approximately RMB 16.1 million, down from RMB 27.3 million in 2021, due to reduced gross profit and other income losses[27]. Assets and Equity - Total assets as of December 31, 2022, amounted to RMB 662.9 million, an increase of 7.1% from RMB 618.7 million in 2021[10]. - The company's total equity increased to RMB 395.3 million in 2022, up from RMB 380.0 million in 2021, reflecting a growth of 4.0%[10]. - As of December 31, 2022, the company's cash and cash equivalents were approximately RMB 27.5 million, a decrease of about 24.0% from RMB 36.2 million on December 31, 2021[37]. - Total borrowings as of December 31, 2022, amounted to approximately RMB 201.6 million, down from RMB 213.4 million on December 31, 2021[38]. - The company's debt-to-equity ratio increased to approximately 57.6% as of December 31, 2022, compared to 56.2% on December 31, 2021[39]. Business Operations - The company continues to focus on producing and selling a variety of confectionery products, including gummy candies, pressed candies, and hard candies, under both OEM and its own brands[5][14]. - The company has implemented measures to strengthen its existing business in response to the COVID-19 pandemic, ensuring that product and raw material supply remained unaffected[12][13]. - The company operates its own production facilities in Fujian Province, Jinjiang City, which allows for direct control over product quality and production costs[14]. - The decrease in profit was primarily due to a reduction in listing expenses of approximately RMB 14.9 million and a net impact of a decrease in gross profit of about RMB 18.4 million[14]. Future Strategies - The company aims to consolidate its existing business development to provide stable returns and growth prospects for shareholders in the future[6]. - The company plans to enhance marketing efforts and expand production capacity, with allocations of RMB 40.3 million for capacity expansion and RMB 20.1 million for replacing existing production line machinery[29]. - Future business strategies include focusing on product development and quality control to meet changing consumer preferences[18]. - The company aims to strengthen its market position in China through increased brand awareness and e-commerce sales channels[18]. Corporate Governance - The company has adhered to the corporate governance code and maintained high standards of corporate governance throughout the year ending December 31, 2022, with the exception of a deviation from code provision C.2.1[78]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balance of power and independent viewpoints[81]. - The company has implemented a strict code of conduct for directors regarding securities trading, with all directors complying with the trading standards during the review period[80]. - The board is responsible for overall management and oversight of the company's business, ensuring decisions are made in the best interest of the company[81]. - The company regularly reviews its corporate governance policies and practices, including training and professional development for directors and senior management[83]. Risk Management - The company faces risks related to reliance on major OEM customers and third-party distributors, which could significantly impact sales if agreements are terminated[31]. - The group has no significant credit risk related to other receivables, and management regularly monitors these risks[50]. - The group has no significant credit concentration risk and will continue to monitor such credit risks[52]. - The company has established communication channels with shareholders, including annual general meetings and timely disclosures of corporate communications[125]. Social Responsibility and Compliance - The group emphasizes the importance of corporate social responsibility in supplier selection and procurement processes[184]. - The group has established an environmental management system to promote environmental awareness among employees and ensure compliance with environmental regulations[139]. - The group has complied with relevant laws and regulations, with no serious violations reported during the year[186]. Shareholder Information - The board of directors does not recommend the payment of any dividends for the year ended December 31, 2022[54]. - There is no fixed dividend policy, and future dividends will depend on the group's operating performance, available cash flow, financial condition, and other relevant factors[109]. - The group did not recommend the payment of a final dividend for the year ended December 31, 2022 (2021: none)[137].
久久王(01927) - 2022 - 年度财报