Financial Performance - Total revenue for the year ended December 31, 2021, was $162.0 million, a decrease of 6.5% from $173.3 million in 2020[10] - Gross profit was $55.6 million with a gross margin of 34.3%, down from $61.9 million and a gross margin of 35.7% in the previous year, representing a decline of 10.1% and a decrease of 1.4 percentage points respectively[10] - Revenue from fashion and lifestyle products was $82.4 million, a slight decrease from $84.2 million in 2020[12] - Revenue from beauty products was $73.1 million, down from $79.0 million in the previous year[12] - The group reported a net loss of approximately $2.1 million for the year, compared to a net profit of approximately $11.2 million in the same period last year, primarily due to a decrease in gross profit of about $6.3 million and an increase in employee costs of approximately $2.7 million[77] - Revenue decreased from approximately $173.3 million in 2020 to about $162.0 million in 2021, a decline of approximately $11.3 million or 6.5%[56] - The cost of sales for the year ended December 31, 2021, was approximately $106.4 million, a decrease of about $5.0 million or 4.5% from $111.4 million in 2020[60] - Total administrative expenses increased to approximately $33.3 million in 2021 from $29.7 million in 2020, an increase of about $3.6 million or 12.2%[70] - Sales expenses for the year ended December 31, 2021, were approximately $24.3 million, an increase of about $2.8 million or 12.7% from $21.6 million in 2020[67] - Other income and losses decreased from approximately $3.2 million in 2020 to about $0.5 million in 2021, a decline of approximately $2.6 million or 83.9%[66] Customer Metrics - Active customers across all e-commerce platforms totaled 1.26 million, down from 1.39 million in 2020[12] - Average order value increased to $73.6, compared to $72.8 in 2020[12] - Customer acquisition cost rose to $11.0 per new customer, up from $7.1 in the previous year[12] - The number of YesStyle Elite Club members reached 6.4 million by the end of 2021, with 2.3 million new members registered that year[25] - YesStyle mobile app downloads totaled 1.497 million, a decrease from 1.706 million in 2020[14] - YesStyle's app contributed 35.9% to annual revenue in 2021, up from approximately 31.7% in 2020, with total app downloads reaching about 6.2 million[28] Market Trends - The online fashion retail market in YesStyle's six key countries is projected to grow at approximately 21.1% annually from 2021 to 2025, reaching about $803.9 billion in total consumer spending[20] - YesStyle's K-Beauty business generated approximately $73.1 million in annual revenue in 2021, up from a low base in 2015, with the online K-Beauty retail market in six key countries reaching $5 billion in 2020[24] - The online K-Beauty retail market is expected to grow at an annual rate of approximately 22.9% from 2021 to 2025[23] Strategic Initiatives - In response to COVID-19 challenges, the company signed a memorandum of understanding with Kerry Logistics to provide logistics services at better rates, significantly reducing shipping costs[29] - The company plans to implement an AI robotic warehouse by Q3 2022 to reduce labor costs and improve delivery capacity, leasing a warehouse of approximately 137,525 square feet[30] - YesStyle launched a student program in December 2021 to attract students and Gen Z consumers, offering exclusive discounts and commissions to student organizations[28] - The company is exploring new business opportunities in the recovering Hong Kong music product market, leveraging the success of the MIRROR concert Blu-ray[55] - The company aims to focus on cost savings and efficiency improvements in response to ongoing economic uncertainties and rising logistics costs[53] Investments and Financial Position - The group’s cash and bank balance increased to approximately $36.5 million, up by about $8.0 million from $28.5 million in the previous year[82] - Capital expenditures for the year amounted to approximately $1.6 million, a decrease of about $0.7 million from $2.3 million in the previous year[81] - The group had no bank borrowings as of December 31, 2021, compared to $493,000 in borrowings the previous year[83] - The debt-to-equity ratio improved from approximately 64.5% to 35.2% due to an increase in total equity from the issuance of shares[90] - The group made a significant investment of approximately $1.4 million in 1,100,000 shares of Jia Hung Logistics, representing about 0.40% of its issued share capital[92] Governance and Management - The company has adhered to the corporate governance code since its listing, with the exception of a deviation from a specific code provision[141] - The chairman and CEO roles are held by different individuals to ensure effective division of responsibilities and balance of power[150] - The company has implemented appropriate directors' and officers' liability insurance for potential legal claims against directors and key personnel[144] - The executive committee, composed of all executive directors, is responsible for managing the company's daily operations and administrative matters[143] - The company has a diverse management team with extensive experience in various sectors, enhancing its operational capabilities[135] - The company has maintained a board diversity policy since its listing, with 2 out of 9 board members being female as of the reporting year[190] Committees and Meetings - The company has established an audit committee, a remuneration committee, and a nomination committee to oversee specific matters[157] - The Audit Committee, formed on August 17, 2020, consists of four members, including one non-executive director and three independent non-executive directors, and has held two meetings since the listing date[178][179] - The Remuneration Committee, also established on August 17, 2020, comprises four members and has conducted three meetings since the listing date, reviewing the existing remuneration policies and evaluating the performance of directors[183][188] - The Nomination Committee is responsible for reviewing the board's structure and composition, and it evaluates the independence of independent non-executive directors[189] - The board is required to meet at least quarterly, and additional meetings can be held as necessary[157] Employee Metrics - Employee costs increased to approximately $19.2 million in 2021, representing 57.7% of total administrative expenses, up from $16.5 million or 55.5% in 2020[74] - As of December 31, 2021, the company employed 588 staff, an increase from 577 in 2020[100] - The company focuses on competitive compensation packages, including basic salary, bonuses, and performance-based benefits[100] - Employee training and talent development programs are in place to enhance efficiency and retention[100] Compliance and Risk Management - The company has implemented appropriate internal controls and risk management measures related to sanctions, with no transactions in sanctioned countries[104] - The company has not planned any new activities in sanctioned countries or with sanctioned individuals[104] - The company has maintained a conservative approach to financial risk management, avoiding high leverage or speculative derivatives[89]
喆丽控股(02209) - 2021 - 年度财报