Financial Performance - The company's revenue decreased by 28.9% to RMB 961 million in 2022, with a net loss increasing from RMB 101 million in the previous year to RMB 171 million[9]. - Total revenue decreased by RMB 39.1 million to RMB 96.1 million in 2022, down 28.9% from RMB 135.2 million in 2021[19]. - Online retail sales amounted to RMB 85.5 million, representing 89.0% of total sales, a decrease of 32.1% from RMB 125.9 million in 2021[22]. - Revenue from the ELLE brand decreased to RMB 89.6 million, down 20.1% from RMB 112.1 million in 2021, while Jessie & Jane sales fell 71.8% to RMB 6.6 million[23]. - Gross profit declined by RMB 21.0 million or 28.8% to approximately RMB 51.9 million, with a gross margin of 54.0% in 2022[25]. - Sales and distribution costs decreased by RMB 18.8 million or 26.3% to approximately RMB 52.6 million, attributed to reduced sales activities[26]. - Offline retail sales dropped to RMB 0.7 million, a decline of 19.6% from RMB 0.9 million in 2021, with offline wholesale sales down 75.3%[21]. - The company faced significant pressure on consumer spending due to the impact of COVID-19 restrictions, resulting in fluctuating sales throughout the year[12]. - The company reported a total revenue of RMB 0 for the year ended December 31, 2022, compared to RMB 104 million in 2021[188]. Market Recovery and Strategy - The company experienced a significant sales recovery in the third quarter after the easing of COVID-19 restrictions, particularly in the luggage and travel accessories segment[9]. - The company anticipates benefiting from the reopening of borders in 2023, particularly in the luggage and travel accessories business[10]. - The company is focusing on expanding its product line in the luggage and travel accessories segment to drive further growth[10]. - The company plans to strengthen its live-streaming business and closely monitor sales channel data to respond quickly to changing consumer behavior[10]. - The company is collaborating closely with major online platforms to adjust sales plans and capitalize on consumer rebound opportunities[10]. - The company noted signs of consumer recovery in the handbag business, although the pace may be slower compared to other segments[10]. - The company anticipates a rebound in sales, particularly in luggage and travel products, with strong performance noted in January and February 2023[35]. Corporate Governance - The company emphasizes high standards of corporate governance and compliance with GEM listing rules[51]. - The company promotes a culture of integrity and ethical conduct among its board members and employees[52]. - The company has established strategic planning and operational oversight through its experienced management team[13][48]. - The company’s board includes independent non-executive directors with extensive backgrounds in finance and consulting, enhancing corporate governance[43][47]. - The board consists of seven directors, including two executive directors, two non-executive directors, and three independent non-executive directors[54]. - The roles of the chairman and the CEO are clearly defined and separated to ensure a balance of power and authority[66]. - The audit committee was established on December 15, 2017, with its responsibilities outlined in writing[67]. - The board is committed to ensuring its independence for effective corporate governance and board performance[65]. - The company has established mechanisms to review the effectiveness of its governance practices annually[66]. - The board of directors has reviewed the corporate governance policies and confirmed compliance with the corporate governance code for the year ending December 31, 2022[90]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report focuses on the environmental and social performance of the company's handbag business, particularly through its wholly-owned subsidiary in China[112]. - The company emphasizes the importance of good ESG management for long-term business development, with oversight from the board of directors[116]. - The company has authorized third-party ESG professionals to assist in monitoring ESG-related management and overall performance[116]. - Stakeholder engagement and materiality assessments were conducted to identify significant ESG issues impacting the business and stakeholders[119]. - The company aims to enhance its ESG performance through regular reviews of its business operations and sustainability plans[116]. - The company identified 9 significant ESG issues based on stakeholder surveys and detailed them in the ESG report[127]. - The company aims to reduce energy consumption by 10% by 2024, implementing measures such as using natural light and energy-efficient equipment[134]. - The company is committed to environmental protection and compliance with local regulations, including the Water Pollution Prevention Law of China[129]. - The company has implemented a waste management strategy that includes the collection and proper disposal of hazardous waste like batteries[130]. - The company actively monitors energy consumption and takes corrective actions in case of abnormal usage[134]. Employee and Workplace Policies - Total employee costs for the year ended December 31, 2022, were RMB 105 million, slightly down from RMB 107 million in 2021, with 55 employees hired compared to 60 in 2021[37]. - The company reported zero work-related fatalities and a work-related death rate of 0% for the past three years[145]. - The training participation rate for employees was 2% in 2022, with an average training duration of 2.96 hours[150]. - The company provided various employee benefits, including retirement contributions and insurance, adhering to local laws and regulations[149]. - The company implemented strict supply chain management and quality control procedures to ensure high service quality and compliance with retail laws[151]. - The company has adopted a non-discrimination policy throughout the recruitment process, ensuring equal opportunities for all applicants[147]. - The company has taken multiple preventive measures against COVID-19, including mandatory mask-wearing and temperature checks for all employees[146]. - The company organized recreational activities to promote work-life balance among employees[149]. Financial Management and Compliance - The company does not recommend any dividend payment for the year ended December 31, 2022, consistent with the previous year[183]. - The company's available distributable reserves as of December 31, 2022, were RMB 0, a decrease from RMB 104 million in 2021[188]. - The company has maintained compliance with relevant laws and regulations that significantly impact its business[181]. - The company has not conducted any anti-corruption training during the reporting period but plans to initiate such training in the future[176]. - The company’s financial performance and position are detailed in the consolidated financial statements from pages 70 to 131[182].
森浩集团(08285) - 2022 - 年度财报