Aokanginternational(SH:603001)2023-04-25 16:00Financial Performance - The company reported a net profit attributable to shareholders of -370 million RMB for 2022, with a year-end distributable profit of 517 million RMB, and proposed no cash dividends or stock bonuses for the year [4]. - Net profit attributable to shareholders was CNY -369,781,962.58, a decline of 1,185.93% compared to CNY 34,052,108.68 in 2021 [13]. - Operating revenue fell by 6.91% to CNY 2,754,135,834.59 in 2022 from CNY 2,958,569,639.91 in 2021 [13]. - Cash flow from operating activities showed a net outflow of CNY -98,710,094.64, a decrease of 144.36% compared to CNY 222,516,194.15 in 2021 [13]. - The weighted average return on equity dropped by 12.61 percentage points to -11.64% in 2022 from 0.97% in 2021 [13]. - The company’s basic earnings per share were CNY -0.9608, a decline of 1,179.55% from CNY 0.0890 in 2021 [13]. Market Trends - In 2022, the total retail sales of consumer goods in China reached 43.97 trillion RMB, a decrease of 0.2%, while the retail sales of clothing, shoes, and textiles fell by 6.5% to 1.3 trillion RMB [9]. - The company has seen a structural adjustment opportunity in the industry as domestic brands begin to fill the gap in the high-end market previously dominated by international brands [8]. Business Strategy - The company aims to address consumer demand for comfort in men's dress shoes, focusing on a strategy for "more comfortable men's dress shoes" to enhance product offerings [8]. - The company operates under a multi-brand strategy, with the main brand "Aokang" targeting mid-to-high-end products priced between 399-699 RMB, while other brands like "Kanglong" and "Puma" cater to different market segments [9]. - The company plans to continue exploring new market opportunities and expanding its product lines to meet the evolving preferences of consumers [7]. Production and Quality Control - The company has adopted a production model that combines in-house and outsourced production, ensuring quality control across all stages of the supply chain [10]. - The company has implemented strict controls over outsourced production to maintain product quality and meet diverse consumer demands [10]. Sales and Marketing - The sales model includes a mix of direct sales and distribution, with a focus on expanding market reach through group purchases and online sales channels [11]. - The company is leveraging digital economy and e-commerce platforms to connect with new consumer demographics, particularly the younger generation [8]. - The company reported a significant increase in advertising and promotional expenses, totaling CNY 12,884.54 million, with advertising costs rising by CNY 6,989.29 million [22]. - The company plans to continue its brand strategy upgrade, focusing on advertising and business promotion despite the revenue decline [22]. Shareholder Information - The number of ordinary shareholders decreased to 14,196 by the end of the reporting period from 15,312 a month prior [17]. - The company recognized a credit impairment provision of CNY 4,087.71 million due to extended aging of accounts receivable [22].