Financial Performance - For the year ended December 31, 2022, the company generated revenue of RMB 1.64 billion and an adjusted net profit of RMB 157 million, serving nearly one million customers[12]. - Revenue for 2022 was RMB 1,635,414, a decrease of 8.1% from RMB 1,780,740 in 2021[40]. - Gross profit for 2022 was RMB 717,842, with a gross profit margin of 43.9%, down from 46.8% in 2021[40]. - Net profit for 2022 was RMB 110,532, a decline of 47% compared to RMB 208,341 in 2021[40]. - The Group's total revenue decreased by 8.2% from RMB 1,780.7 million in 2021 to RMB 1,635.4 million in 2022 due to the Pandemic[104]. - The adjusted profit for the year (non-HKFRS measure) was RMB 157.4 million, down from RMB 226.7 million in 2021, reflecting a decrease of 30.6%[44]. - The Group's selling expenses decreased from RMB 299.5 million in 2021 to RMB 287.2 million in 2022, primarily due to reductions in staff costs and travel expenses related to the impact of the Pandemic[120]. - Net cash generated from operating activities was RMB 382.0 million in 2022, down from RMB 669.9 million in 2021[138]. Market Position and Strategy - The company aims to capitalize on opportunities in the beauty and health management industry as the Chinese economy recovers[13]. - The beauty and health management services market in China is expected to grow steadily, with the company confident in future market share growth[35]. - The company plans to open over 50 new direct and franchised stores for traditional beauty services in 2023, expanding its service network and customer base[92]. - Mergers and acquisitions are identified as key strategies for rapid growth and market consolidation, focusing on leading chain brands in direct sales areas[95]. - The company is expanding its market presence, targeting an increase in market share by 15% in the next year[166]. Operational Efficiency and Development - The company has focused on enhancing operational efficiency and unifying its team to achieve stable revenues despite challenges from the COVID-19 pandemic[12]. - The company aims to enhance multi-business collaboration and standardize service processes to further improve operational management and customer satisfaction[26]. - The Group maintained its original store-opening plan and focused on employee training and digital construction to enhance competitiveness[47]. - The company aims to improve operational efficiency and customer experience through standardization and digitalization initiatives in 2023[98]. Customer Engagement and Loyalty - The average number of visits per active member at direct stores was nearly 10, with a high repeat purchase rate of 83.2% across three business lines, indicating strong customer loyalty[21]. - The average number of visits per active member increased to 3.5 in 2022 from 3.3 in 2021, reflecting improved customer engagement[65]. - The Group's proactive measures during the pandemic included promoting services through online channels, which helped maintain stable demand for prepaid packages[67]. Innovation and R&D - The company launched a series of popular women's body care and health procedures, and obtained five national medical utility model patents related to aesthetic medical services[20]. - The aesthetic medical business obtained five national medical utility model patents in 2022, enhancing its research and innovation capabilities[76]. - The Group has invested $5 million in research and development for new technologies in the medical beauty sector[166]. Corporate Governance - The company was listed on the Main Board of the Stock Exchange on January 16, 2023, and has complied with all applicable code provisions of the Corporate Governance Code since that date[181]. - The Board consists of two executive Directors, three non-executive Directors, and three independent non-executive Directors, meeting the requirements of the Listing Rules[185]. - The company has established three Board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, with plans to create an Environmental, Social, and Governance (ESG) Committee[187]. - The company emphasizes the importance of Board independence, with more than one third of the Board comprising independent non-executive Directors[192]. Employee Development and Culture - The Group launched nearly 3,000 learning projects in 2022, with over 50,000 cumulative participants and more than 100,000 effective learning hours[83]. - The establishment of BeautyFarm Training Centers has provided over 13,000 courses to service personnel, enhancing service quality[102]. - New employees are required to attend orientation and training programs to understand the corporate culture and policies[174]. - Regular employee meetings and seminars are held to communicate the company's values, performance expectations, and strategic goals[175]. Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of 20% to $180 million[166]. - The implementation of supportive economic policies in China is anticipated to create new opportunities for the company's development in 2023[36]. - The company aims to adapt to market changes and promote continuous and stable performance growth[37].
美丽田园医疗健康(02373) - 2022 - 年度财报