Financial Performance - For the year ended December 31, 2021, the Group's revenue grew 15.6% year-on-year to RMB1,299.7 million, surpassing the pre-pandemic level of RMB1,204.1 million in 2019[48]. - Profit attributable to owners of the Company for the year amounted to RMB143.4 million, a drop of 32.6% compared to RMB212.7 million recorded in 2020[48]. - Total sales proceeds grew by 17.3% year-on-year to RMB3,482.9 million in 2021, up from RMB2,968.2 million in 2020[59]. - The gross profit amounted to RMB790.4 million, an increase of 16.0% from RMB681.4 million in the previous year, with a gross profit margin of approximately 22.7%[59]. - Net profit attributable to shareholders decreased to RMB143.4 million from RMB212.7 million in 2020, primarily due to increased selling and distribution costs and administrative expenses[59]. Store Performance and Expansion - Shanghai Jiuguang and Suzhou Jiuguang department stores recorded sales growth of approximately 15.0% and 17.9% respectively for the year[49]. - The Shanghai Jiuguang Center, opened in late November 2021, includes a retail mall and two office blocks, enhancing the Group's market presence in Shanghai[49]. - The Shanghai Jiuguang Center aims to serve as a lifestyle and community hub, providing a wide range of retailers and merchandise[49]. - The leasing process for the two office blocks of the Shanghai Jiuguang Center has begun, which is expected to provide a stable rental income stream in the future[53]. - The Shanghai Jiuguang Center recorded nearly 220,000 visitors on its first day of operation and an average daily footfall of approximately 112,000 visitors during the first thirty-plus business days[79]. Strategic Initiatives - The Group has decided not to declare any dividend for the year[48]. - The retail environment in China faced operational challenges and market instability, prompting the Group to implement multifaceted strategies to optimize store operations[47]. - The Group is committed to enhancing customer services and optimizing its product mix to meet the diverse needs of local consumers[7]. - The group plans to continue expanding its product portfolio and improving customer services to maintain competitiveness and cater to the sophisticated needs of China's middle class[53]. - The Group enhanced its brand equity with the launch of the Shanghai Jiuguang Center, aiming to capture market opportunities and improve customer experience[78]. Cost Management - Selling and distribution costs grew by 28.1% to RMB523.7 million in 2021, attributed to increased operating expenses and one-off opening expenses of RMB34.8 million for the Shanghai Jiuguang Center[59]. - General administrative expenses surged by 52.7% to approximately RMB238.3 million from RMB156.1 million in 2020, mainly due to additional depreciation and staff costs[61]. - Staff costs increased by 22.9% to approximately RMB191.3 million from RMB155.6 million in 2020, primarily due to additional costs for the Shanghai Jiuguang Center and a one-off compensation of RMB6.2 million for dismissed staff[62]. Economic Outlook - The group remains cautiously optimistic about the retail sector in China, despite challenges from geopolitical tensions and sporadic COVID-19 outbreaks, aiming for a GDP growth target of 5.5% in 2022[53]. - The Group remains cautiously optimistic about China's economy, aiming for a GDP growth target of 5.5% for 2022 despite ongoing trade tensions and COVID-19 outbreaks[114]. Environmental and Sustainability Efforts - The company is committed to eliminating resource-wasting misconduct and minimizing the use of scarce resources and energy[139]. - The company aims to adopt the most effective environmentally friendly operating solutions and promote environmental protection awareness[139]. - The Group aims to reduce the intensity of greenhouse gas emissions to 0.16 ton/sq.m. by 2030 compared to 2019 levels[144]. - The Group has established a sewage treatment system to comply with government standards for urban sewage treatment[153]. - The Group aims for compatible development of people, buildings, and the natural environment while minimizing the use and destruction of natural resources[195]. Climate Change and Risk Management - The Group is committed to managing climate change and has identified various physical risks, including extreme weather events like droughts and floods, which may threaten its operations and financial performance[197]. - The Group will review climate change policies and regulations in its operational regions to identify potential climate-related risks affecting long-term sustainable development[198]. - The Group has established internal guidelines to issue safety warnings and make special work arrangements during extreme weather conditions to ensure employee safety[199]. - The Group conducts regular special drills to enhance employee awareness of protection and response to climate-related risks[199].
利福中国(02136) - 2021 - 年度财报