Financial Performance - Revenue for the year ended December 31, 2022, was $128.592 million, a decrease of 20.6% compared to $162.018 million in 2021[7] - Gross profit for 2022 was $42.726 million, down 23.2% from $55.618 million in 2021, with a gross margin of 33.2%[7] - The company reported a net loss of $6.782 million for 2022, a significant increase of 228.4% from a loss of $2.065 million in 2021[7] - YesStyle's revenue decreased by approximately 26.1% compared to the previous year, primarily due to a 26.0% drop in the number of sales orders received[25] - Revenue generated from influencer referrals was approximately $21,901,000, accounting for about 19.9% of YesStyle's total revenue[27] - YesStyle's revenue from fashion and lifestyle products decreased by 36.9% compared to the previous year due to COVID-19 lockdowns in mainland China[26] - The company reported a significant increase in user data, with a growth rate of 25% year-over-year in active users[82] - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[83] Customer Metrics - Total active customers across all e-commerce platforms decreased to 1.02 million in 2022 from 1.26 million in 2021[8] - Average order value increased to $77.0 in 2022 from $73.6 in 2021[8] - The cost to acquire each new customer rose to $12.2 in 2022, compared to $11.0 in 2021[8] - Over 100,000 YesStyle members participated in the online beauty consultation feature by the end of 2022, contributing to a total membership of about 8.27 million[19] - The Elite Club loyalty program gained approximately 1.91 million new members in 2022, with 19 customized customer experience journeys generating around $14.89 million in revenue[19] Operational Developments - The company established a smart robotic warehouse in partnership with Geek Plus International, covering approximately 137,525 square feet and equipped with 161 autonomous mobile robots[13] - The total construction cost of the smart robotic warehouse was approximately $5.907 million, fully paid by the end of December 2022[13] - The company anticipates that the new robotic system will assist in completing over 1,000,000 customer orders in its first year of operation[14] - Cost-saving measures were implemented, including the introduction of a smart robotic warehouse, reducing total staff from 588 to 489 by the end of 2022[23] - The implementation of the smart robotic warehouse led to significant labor cost savings and improved order processing efficiency[34] Marketing and Partnerships - YesStyle has partnered with 430 K-Beauty brands since 2015, signing approximately 60 new brands in 2022, including AESTURA and Kaja[16] - By the end of 2022, YesStyle's Instagram had over 1.3 million followers, and its TikTok channel attracted over 240,000 followers, with content views reaching approximately 125 million and 19 million respectively[18] - The influencer program saw an increase of about 62,000 new influencers, bringing the total to approximately 279,000 by the end of 2022, with TikTok influencers growing from about 28,000 to 44,000[20] - YesStyle's logistics partnership with 嘉泓物流 has improved cost-effective order delivery to multiple countries, and a new subsidiary, YA Logistics Limited, was established to provide e-commerce delivery services[21] Cost Management - Selling expenses decreased by approximately $5.25 million or 21.6% to about $19.04 million, driven by reduced customer orders and controlled marketing expenses[47] - Administrative expenses decreased by approximately $2.65 million or 7.9% to about $30.68 million, mainly due to a reduction in employee costs and listing expenses[51] - Cost control measures resulted in a 10.7% decrease in employee costs compared to the previous year, with warehouse labor costs as a percentage of e-commerce revenue decreasing to approximately 5.2%[35] - The company plans to continue focusing on cost control and efficiency improvements in response to the revenue decline[51] Governance and Compliance - The management team emphasized the importance of maintaining strong corporate governance practices, adhering to the principles outlined in the corporate governance code[99] - The board of directors consists of nine members, ensuring a balanced representation of executive and independent directors[105] - The company has established appropriate insurance arrangements for directors and key personnel to mitigate legal risks[103] - The company has maintained compliance with listing rules, appointing at least three independent non-executive directors, with one possessing appropriate professional qualifications[108] - The company has adopted a board diversity policy, considering various factors such as gender, age, and professional experience in selecting board candidates[117] Future Outlook - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience and operational efficiency[84] - Market expansion plans include entering three new international markets by the end of the next fiscal year, targeting a 10% market share in each[85] - The company has completed a strategic acquisition of a tech startup for $30 million, expected to enhance its product offerings and competitive edge[86] - New product launches are anticipated to contribute an additional $20 million in revenue within the first six months post-launch[87] - The company has set a performance guidance of achieving EBITDA margins of 30% in the upcoming quarter[88] Risk Management - The company has established a risk and compliance committee to oversee environmental, social, and governance (ESG) performance and strategies[146] - The internal control system was reviewed and deemed effective by the board, ensuring the protection of assets and compliance with applicable laws[150] - The company has adopted a whistleblowing policy to allow employees and stakeholders to report misconduct confidentially[151] - The management team is responsible for identifying and assessing risks related to the business, including political, economic, and technological factors[148] Shareholder Communication - The company maintains a shareholder communication policy to ensure timely and comprehensive information dissemination to shareholders[157] - The board of directors will review the dividend policy based on future investment opportunities and development plans[160] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period, except for stock options granted under the IPO plan[178]
喆丽控股(02209) - 2022 - 年度财报