n.n.store(SH:600712)2023-04-12 16:00Financial Performance - The company's net profit for 2022 was approximately -64.49 million RMB, resulting in no profit distribution or capital reserve transfer to share capital for the year [4]. - Total revenue for 2022 was 655.69 million RMB, a decrease of 18.84% compared to 807.88 million RMB in 2021 [20]. - The net asset attributable to shareholders decreased by 7.28% to 821.09 million RMB at the end of 2022 from 885.58 million RMB at the end of 2021 [20]. - The total assets decreased by 6.55% to 1.60 billion RMB at the end of 2022 from 1.72 billion RMB at the end of 2021 [20]. - Basic earnings per share for 2022 were -0.1184 RMB, a decrease of 2,566.67% compared to 0.0048 RMB in 2021 [21]. - The weighted average return on net assets was -7.56% for 2022, a decrease of 7.86 percentage points from 0.30% in 2021 [21]. - The cash flow from operating activities for 2022 was -48.74 million RMB, a decline of 215.00% compared to -15.47 million RMB in 2021 [20]. - The company reported a net profit attributable to shareholders after deducting non-recurring gains and losses of -72.61 million RMB for 2022, compared to -20.87 million RMB in 2021, representing a decrease of 247.99% [20]. - The company reported a significant increase in credit impairment losses, primarily due to provisions for bad debts related to seafood, amounting to -25.12 million RMB [43]. - The company’s cash flow from operating activities was -48.74 million RMB, indicating a decline of 215.00% compared to the previous year [42]. Revenue Breakdown - The main business income accounted for 89.32% of total operating income, with the breakdown being 14.82% from department stores, 56.02% from home appliances, 14.88% from supermarkets, 9.95% from automotive, and 0.50% from e-commerce [36]. - The company achieved operating revenue of 655.69 million RMB, a year-on-year decrease of 18.84% [41]. - The total retail sales of consumer goods in China for 2022 were 43.9733 trillion RMB, down 0.2% from the previous year [27]. - The company reported a rental income of CNY 29.50 million in 2022, a decrease of 8.86% compared to the previous year [76]. - Online sales accounted for 4.71% of total sales, with approximately CNY 53.60 million in online sales, while offline sales were about CNY 1,084.58 million, representing 95.29% [79]. Operational Changes - The company closed the loss-making Wenhua Palace store, which contributed to a reduction in losses [28]. - The company implemented a strategy to enhance digital integration, establishing e-commerce teams across various business units [29]. - The company focused on optimizing assets by transferring the operation of the Wenhua Palace store to avoid further asset impairment [30]. - The company plans to enhance member engagement through targeted marketing campaigns, conducting 12 large-scale marketing events [29]. - The company is focusing on optimizing its department store operations by upgrading store formats and increasing rental income, aiming for a significant improvement in brand positioning and customer experience [90]. Market and Strategic Initiatives - The company is set to open 12 shopping centers in Guangxi, with 7 located in Nanning, as part of the national strategy to promote domestic consumption recovery [84]. - The company aims to enhance its digital transformation by focusing on member digitalization, product digitalization, and guide digitalization, leveraging various sales channels such as WeChat, community platforms, and live streaming [86]. - The company plans to optimize the consumption structure and environment while deepening information technology construction to enhance customer experience [86]. - The home appliance segment is expanding online sales channels, achieving breakthroughs with mini-programs and WeChat, and is also enhancing third-party operations to boost sales [90]. - The supermarket segment is maintaining a positive trend in single-store profitability and is developing a supply chain for pork and beef, while exploring community fresh food stores [91]. Governance and Compliance - The company received a standard unqualified audit report from Sichuan Huaxin (Group) CPA for the fiscal year [7]. - The company has established a comprehensive information disclosure system, adhering to the Shanghai Stock Exchange's rules and ensuring timely and accurate disclosures [101]. - The company has appointed independent directors to strengthen governance and oversight within the board [104]. - The company has actively engaged with investors through various communication channels to enhance understanding and recognition among stakeholders [100]. - The company has implemented measures to prevent insider trading and ensure confidentiality of sensitive information [101]. Legal and Regulatory Matters - The company faced significant litigation issues, including a contract dispute with Nanning Yizilian Rice Industry Co., Ltd., which has progressed to the execution phase [157]. - The company is involved in multiple ongoing lawsuits, including a case against Nanning Biaotebu Real Estate Development Co., Ltd. regarding a housing sale contract dispute [158]. - The company has received a first-instance judgment in the construction contract dispute with Nanning Biaotebu Real Estate Development Co., Ltd., with some claims supported by the court [159]. - The company is currently appealing a judgment related to a seafood sales contract dispute with Zhanjiang Xujun Aquatic Products Co., Ltd. [159]. Social Responsibility and Community Engagement - The company has invested CNY 17 million in rural revitalization projects, including infrastructure improvements and agricultural development [149]. - The company has actively engaged in community support, providing CNY 5.51 million for charitable donations, including CNY 2.67 million in cash and CNY 2.84 million in material donations [143]. - The company has organized various public welfare activities, including educational support for underprivileged students, with nine students receiving financial assistance [151]. - Total investment in social responsibility projects amounted to CNY 30.51 million, benefiting 112 individuals through various initiatives [147]. Future Outlook - In 2023, the company plans to actively seize opportunities to boost market consumption, focusing on core business development and implementing market-oriented reforms to achieve significant recovery growth in main business and overall revenue [89]. - The company provided guidance for the next fiscal year, projecting revenue growth of 25% and aiming for $1.875 billion [106]. - New product launches are expected to contribute an additional $300 million in revenue, with a focus on innovative technology solutions [106]. - The company aims to improve operational efficiency, targeting a 5% reduction in costs over the next year [106].