Business Operations - As of December 31, 2022, Parkson operated 42 stores and 2 Parkson Newcore City Malls across 28 cities in the PRC and Laos[11] - The Group operates primarily in the retail segment, with significant revenues generated from direct sales and concessionaire sales in the PRC[66] - The Group operates primarily in China, focusing on department stores, shopping malls, outlets, and supermarkets, with revenue sources including self-operated sales, commission from franchised counters, consulting and management service fees, and rental income from tenants[68] - The Group's principal activities include operating a network of department stores, shopping malls, outlets, and supermarkets primarily in the People's Republic of China, along with providing credit services in Malaysia[147] - The Group's strategic focus includes expanding its store formats, including department stores, shopping malls, and concept stores like "Parkson Beauty"[115] - The Group plans to open a new store in Nanchang County, Jiangxi Province in the fourth quarter of 2023, which will be its fourth store in Jiangxi[124] - The Group's strategy of "Multiple Stores in a City" aims to increase market share by reaching more customers with diverse consumption habits[124] - The Group closed two stores in Shanxi Province in 2022 to improve resource utilization efficiency[124] Financial Performance - In 2022, China's GDP reached RMB121.0 trillion, representing a 3% increase from 2021[15] - Total retail sales of consumer goods in China decreased by 0.2% year-on-year in 2022[15] - The Group's performance in 2022 was weaker compared to the previous year due to pandemic-related challenges and soft consumer market dynamics[18] - In 2022, total GSP (including VAT) decreased by 22.6% to RMB 9,216.8 million, primarily due to a 22.8% decline in same-store sales (SSS)[25] - Total merchandise sales (excluding VAT) fell by RMB 2,253.1 million or 23.4% to RMB 7,358.8 million, with licensed counter sales dropping by 24.5% and direct sales decreasing by 20.7%[25] - Total operating revenues decreased by RMB989.8 million or 20.9% to RMB3,748.7 million in 2022, primarily due to a decrease in revenue from contracts with customers, which fell by RMB866.5 million or 23.3%[56] - The Group's merchandise gross margin decreased from 14.2% in 2021 to 13.5% in 2022[55] - The loss attributable to owners of the Company for 2022 was RMB413.2 million, compared to a loss of RMB176.0 million in 2021[60] - Basic loss per share for 2022 was RMB(0.157), compared to RMB(0.067) in 2021[60] - The Group recorded gross sales proceeds of RMB9,218.8 million for the year, representing a decrease of 22.6% compared to the previous year, primarily due to a decline in Same-Store Sales (SSS)[115] - Same-Store Sales (SSS) declined by 22.8%, mainly impacted by COVID-19[115] - The Group recorded a loss from operations of RMB11.0 million for 2022 compared to a profit of RMB323.6 million in 2021[127] - Loss from operations as a percentage of GSP was (0.1%) in 2022, while profit from operations was 3.0% in 2021[127] Cost Management - The Group implemented cost control measures, including lowering rental and operating costs, to mitigate the impact of the COVID-19 pandemic[9] - The Group's strategy includes cost control measures such as reducing rent and operating costs while promoting online platforms to stimulate consumer spending[46] - Operating expenses for the Group decreased, with the purchase of goods and changes in inventories down by RMB 466.1 million or 20.1% to RMB 1,850.1 million[29] - Staff costs decreased by RMB 43.8 million or 7.5% to RMB 536.6 million, attributed to the closure of unprofitable businesses[29] - Depreciation and amortization decreased by 8.3% from RMB 658.9 million in 2021 to RMB 604.3 million in 2022, with depreciation on right-of-use assets recognized at RMB 402.9 million[29] - Rental expenses decreased by RMB42.3 million or 73.5% to RMB15.2 million in 2022 from RMB57.5 million in 2021[127] - Other operating expenses decreased by 6.1% to RMB753.5 million in 2022 from RMB802.0 million in 2021[127] Market Outlook - The Group remains optimistic about market prospects despite ongoing uncertainties, driven by urbanization and improving living standards in China[15] - The Group plans to leverage its extensive retail market experience to achieve stable and sustainable performance post-COVID-19[22] - Future outlook includes potential market expansion and adaptation to changing consumer behaviors post-COVID-19[118] Employee Management - As of December 31, 2022, the total number of employees was 4,055, with competitive compensation aligned with market standards and performance-based rewards[69] - The Group emphasizes employee training and development, establishing a structured performance evaluation and promotion system, along with diverse training programs to enhance skills and capabilities[138] - In 2022, the average training hours completed per employee were 9.7 hours for senior management, 7.2 hours for middle management, and 6.8 hours for basic level employees[142] - The Group launched an online training course in 2022 focused on "Career planning and company strategy," providing comprehensive guidance to employees on integrating personal career development with company strategy[140] - The Group has a structured salary, incentives, and bonus scheme to reward employee performance[69] Risk Management - The Group is actively applying for government pandemic prevention allowances and tax incentives to minimize financial impacts[9] - The Group's business transactions are mainly denominated in Renminbi, minimizing exposure to foreign exchange risk, with hedging instruments used as necessary[69] - The Group's treasury policies include the use of swaps and forwards to hedge against interest rate fluctuations[69] - The Group is committed to maintaining a competitive workforce while ensuring financial stability through effective risk management strategies[69] Corporate Governance - The Group's strategic operations are overseen by Tan Sri Cheng Heng Jem, who has over 50 years of experience in various industries, including retail and credit financing[70] - Li Bing was appointed Chief Operating Officer in July 2022, bringing extensive experience from state-owned enterprises and a long tenure with the Group since 1996[80] - The appointment of a new Chief Financial Officer in February 2023 aims to strengthen financial oversight and compliance[112] - The Company maintained appropriate insurance cover for potential losses or liabilities incurred by Directors during the year ended December 31, 2022[176] - The Directors were not involved in any competing business interests during the year ended December 31, 2022[176] Community Engagement - The Group's charity activities in 2022 included donations to the Qingdao Foundation for the Disabled, demonstrating its commitment to vulnerable groups[146] - The Group's stores nationwide conducted multiple community service activities in 2022, promoting cultural communication and environmental protection[143] - The Group's environmental initiatives included a public education lecture on biodiversity conservation held on Earth Day 2022[144]
百盛集团(03368) - 2022 - 年度财报