Business Expansion and Strategy - In 2022, the company opened the world's largest single duty-free store, Haikou International Duty Free City, which became a new growth point for the business[18]. - The company successfully won the operating rights for duty-free stores at multiple locations, including Hangzhou Xiaoshan Airport T4 terminal and Chengdu Shuangliu Airport[18]. - The company plans to focus on the "Deepening Hainan" strategy to enhance core business capabilities and market competitiveness in 2023[18]. - The company aims to accelerate overseas expansion, leveraging the "A+H" dual capital platform to seize opportunities in popular tourist destinations[18]. - The company will advance the construction of duty-free retail complexes, including projects in Haikou and Sanya[18]. - The company is actively exploring innovative marketing strategies, including live streaming and online-to-offline (OTO) promotions, to attract younger consumers[29]. - The company is enhancing its core competitiveness by optimizing procurement strategies and strengthening strategic cooperation with suppliers[30]. - The potential for the Hainan duty-free market is expected to provide new opportunities for the company's future growth[43]. Financial Performance - Revenue for 2022 was RMB 54,433 million, a decrease of RMB 13,243 million (approximately 19.6%) compared to RMB 67,676 million in 2021[20]. - Gross profit for 2022 was RMB 14,860 million, down RMB 7,434 million (approximately 33.4%) from RMB 22,294 million in 2021[20]. - Net profit attributable to equity shareholders was RMB 5,114 million, a decline of RMB 4,613 million (approximately 47.4%) from RMB 9,727 million in 2021[20]. - The gross margin decreased to 27.30%, down 5.64 percentage points from 32.94% in 2021[20]. - The operating profit of the group decreased by 48.25% from RMB 14.94 billion for the year ended December 31, 2021, to RMB 7.73 billion for the year ended December 31, 2022, primarily due to a significant decline in customer traffic impacting offline business[58]. - The group's profit attributable to equity shareholders decreased by 49.59% from RMB 12.44 billion for the year ended December 31, 2021, to RMB 6.27 billion for the year ended December 31, 2022, mainly due to the same reasons as above[58]. - The company's sales and promotion expenses decreased by 8.52% from RMB 5.41 billion in 2021 to RMB 4.95 billion in 2022[52]. - Other income, including interest income and government subsidies, decreased by 46.56% from RMB 786 million in 2021 to RMB 420 million in 2022[49]. Membership and Customer Engagement - The total number of members exceeded 26 million, reflecting a significant increase in online business layout and brand categories[18]. - The total number of members exceeded 26 million, enhancing the membership system to meet the differentiated service needs of high-end members[30]. Corporate Governance - The company is committed to maintaining high standards of corporate governance through the expertise of its independent directors and supervisory board members[74][75][76][77]. - The board comprises experienced professionals with diverse backgrounds in finance, law, and management, enhancing strategic decision-making capabilities[74][75][76][77]. - The company has adopted corporate governance practices in accordance with the principles and code provisions of the Corporate Governance Code as per the Hong Kong Listing Rules[85]. - The board believes that during the reporting period, the company has complied with all code provisions of the Corporate Governance Code and met the majority of the recommended best practices[85]. - The management team has a strong educational background, with degrees from prestigious institutions, contributing to informed decision-making processes[74][75][76][77]. Risk Management - The company emphasizes the importance of risk management, identifying key operational risks including market conditions and regulatory changes[118]. - The company has established internal audit and risk control functions to assess and improve the effectiveness of its risk management[131]. - The board confirmed the effectiveness and adequacy of the company's risk management and internal control systems as of December 31, 2022[131]. Sustainability and ESG - The company is committed to sustainable development and has introduced an ESG report to the capital market for the first time[18]. - The board of directors is responsible for the company's ESG strategy, with a dedicated committee overseeing sustainable development strategies and ESG policy implementation[122]. - The company actively identifies and analyzes climate-related risks and opportunities, developing measures to address potential impacts on operations and costs[125]. Employee Development and Training - The company conducted 27 training sessions in 2022, totaling approximately 80 hours of training[185]. - The online training platform "China Duty-Free Academy" provided 17 course topics and organized 17 live training sessions, with over 710,000 participants in total[185]. - The company aims to enhance its talent development mechanism to improve organizational competitiveness[185]. Shareholder Communication and Dividends - The company actively expanded investor communication channels through various events, including performance briefings and investor reception days[138]. - The company aims to distribute at least 5% of its distributable profits in cash dividends annually, with a cumulative distribution of at least 30% over any three consecutive fiscal years[142]. - The proposed annual caps for transactions under the framework service procurement agreement are RMB 1,288 million for 2022, RMB 1,807 million for 2023, and RMB 2,000 million for 2024[194].
中国中免(01880) - 2022 - 年度财报