Financial Performance - Revenue for the year ended December 31, 2022, amounted to RMB 271.6 million, representing an increase of 7.5% from RMB 252.7 million recorded in 2021[4]. - Gross profit for the year ended December 31, 2022, amounted to RMB 74.8 million, representing an increase of 9.2% from RMB 68.5 million recorded in 2021[4]. - Loss attributable to ordinary equity holders for the year ended December 31, 2022, amounted to RMB 486.3 million, representing an increase of 52.7% from RMB 318.4 million recorded in 2021[4]. - The gross profit margin of the Group's products increased from 27.1% in 2021 to 27.5% in 2022 due to adjustments in product structure and price increases[29]. - The company had a loss attributable to ordinary equity holders of approximately RMB 486.3 million in 2022, an increase of 52.7% compared to RMB 318.4 million in 2021, primarily due to increased finance costs from new borrowings[32][35]. - Loss before income tax increased by 52.7% from RMB 318.4 million to RMB 486.3 million[104]. Market Position and Sales - The Group's offline sales market share was 17.7% in 2022, ranking first in the industry for the fifth consecutive year[12]. - Cooking wine products accounted for approximately 64.9% of total revenue, while soy sauce products generated approximately RMB 23.8 million, representing about 8.8% of total revenue[28]. - Sales revenue in Eastern China increased by approximately RMB 27.9 million or 17.1% compared to the previous year, driven by the Group's efforts to ensure product supply during the Shanghai epidemic[27]. - Revenue from cooking wine products rose by 3.7% to RMB 176.2 million, while revenue from soy sauce products decreased by 8.1% to RMB 23.8 million due to changing consumer preferences[91]. - Revenue from other products surged by 39.7% from RMB 38.5 million to RMB 53.8 million, attributed to a strategic focus on well-performing products[93]. Assets and Liabilities - Total assets as of December 31, 2022, were RMB 1,123.1 million, a decrease from RMB 1,193.8 million in 2021[9]. - Total liabilities as of December 31, 2022, were RMB 2,931.2 million, an increase from RMB 2,511.7 million in 2021[9]. - The Group's total (deficit)/equity as of December 31, 2022, was RMB (1,808.2) million, compared to RMB (1,317.9) million in 2021[9]. - The gearing ratio increased to 273.8% from 220.9%, indicating a rise in financial leverage[84]. Operational Strategies - The Group engaged Shanghai Osens Creative to upgrade brand positioning and marketing strategies, introducing the core concept of "fragrance of time" cooking wine[16]. - The Group has implemented a dual upgrade of software and hardware for quality control, enhancing food safety technology and establishing a digital food safety traceability system[21]. - New production line equipment was purchased to improve labor efficiency, expand production capacity, and reduce production costs[22]. - The company aims to focus on the development of distribution and catering channels in the Yangtze River Delta region to enhance market penetration[29]. - The company is implementing various promotional measures to increase product shelf presence in local communities and towns[31]. Management and Governance - Chen Wei serves as the Chairman of the Board and Executive Director, responsible for overall strategic planning and business operations since September 11, 2020[52]. - Liu Jianbin, the Executive Director and CEO, manages financing activities and overall business operations, appointed on February 2, 2021[54]. - The company is expanding its distribution network and enhancing its overall business operations under the leadership of its executive team[52]. - The management team has a strong background in finance and investment, with key members having extensive experience in banking and asset management[54][57]. - The company is committed to maintaining high standards of governance and financial oversight through its audit committee[57]. Employee and Community Engagement - The total remuneration paid to employees for the year ended December 31, 2022, was approximately RMB 42.5 million, an increase from RMB 39.5 million in 2021[182]. - As of December 31, 2022, the company had approximately 535 full-time employees, up from 490 in 2021[181]. - Employee benefits contributions amounted to RMB 56 million in 2022, compared to RMB 40 million in 2021, reflecting a rise of 40%[185]. - The Group made charitable donations totaling RMB 70,251 during the year 2022[189]. Audit and Compliance - The auditor issued a qualified opinion on the Group's consolidated financial statements for the year ended December 31, 2022, due to insufficient audit evidence regarding the cost of sales for the year ended December 31, 2021[190]. - The Management believes that, aside from the qualified items, the consolidated financial statements for the year ended December 31, 2022, present a reasonable view of the Group's affairs[196]. - The Audit Committee confirmed that there were no disagreements with Management regarding the Audit Qualification for the year ended December 31, 2022[198]. - The Management and Audit Committee agreed that the technical audit qualification related to FY2021 will be removed in the year ending December 31, 2023, as there are no audit issues for the year ended December 31, 2022[199].
老恒和酿造(02226) - 2022 - 年度财报