Winka Times(SH:603101)2023-04-27 16:00Financial Performance - The company's operating revenue for 2022 was approximately ¥1.91 billion, a decrease of 20.31% compared to ¥2.39 billion in 2021[21]. - The net profit attributable to shareholders for 2022 was a loss of approximately ¥156 million, a decline of 397.45% from a profit of ¥52 million in 2021[21]. - The basic earnings per share for 2022 was -¥0.3316, representing a decrease of 397.40% compared to ¥0.1115 in 2021[23]. - The company reported a cash flow from operating activities of approximately ¥130 million, down 65.90% from ¥382 million in 2021[21]. - The total assets at the end of 2022 were approximately ¥4.24 billion, a decrease of 5.96% from ¥4.51 billion at the end of 2021[21]. - The net assets attributable to shareholders decreased by 10.74% to approximately ¥1.30 billion from ¥1.45 billion in 2021[21]. - The weighted average return on net assets for 2022 was -11.35%, a decrease of 15.03 percentage points from 3.68% in 2021[23]. - The gross profit margin for the total operating revenue was 35.62%, slightly up from 35.57% in the previous year[44]. - The operating costs decreased by 20.46% to 1,228,113,426.99 RMB from 1,543,953,971.24 RMB in the previous year[44]. - The company reported a net loss of CNY 15,598.65 million for 2022, primarily due to a goodwill impairment provision of CNY 13,653.15 million[57]. Operational Challenges - The company faced significant operational challenges, with many stores closed for four months due to external environmental factors, leading to a substantial decline in revenue[23]. - The company recognized an impairment loss on goodwill amounting to approximately ¥136.53 million during the reporting period[23]. - The net cash flow from operating activities decreased by 65.90% year-on-year, primarily due to the closure of stores for 4 months, leading to a significant decline in cash inflows[24]. - The company experienced a significant impact on revenue due to external factors, with many stores being closed for four months during the reporting period[46]. - The retail market in Xinjiang experienced a decline in total retail sales of consumer goods by 9.6% year-on-year, which is 9.4 percentage points lower than the national average[36]. Market Expansion and Strategy - The company introduced 55 new brands in its flagship store in Urumqi, enhancing its competitive position in the market[32]. - The new supermarket format in the newly opened Fukang Shopping Center commenced operations on December 31, 2022, indicating ongoing market expansion efforts[32]. - The company is focusing on optimizing its business structure and enhancing operational efficiency to lay a solid foundation for the recovery of existing businesses and the rapid layout of new businesses in 2023[32]. - The company has implemented a strategy to increase self-operated and direct brands, reducing intermediaries and improving profitability in its self-operated business[32]. - The company plans to continue expanding its market presence while optimizing its operational strategies and management practices[42]. - The company is committed to digital transformation and enhancing customer experience by integrating online and offline operations and expanding its private label offerings[38]. - The company plans to open a new shopping center in Karamay with a total building area of 88,535.16 square meters by the end of 2023[65]. - The company is set to open new shopping centers in 2023, including locations in Fukang, Alar, Karamay, and Urumqi[86]. Customer Engagement and Loyalty - The company successfully recruited over 80,000 new members throughout the year, enhancing member engagement and loyalty through personalized services and marketing strategies[33]. - The company is enhancing customer loyalty by introducing "butler-style" services and value-added service projects, leveraging brand resources[32]. - The total number of members reached 1,744,047, with the age group of 35-55 years accounting for 48.10% of sales[69]. - Customer satisfaction ratings improved to 90%, reflecting a 5% increase from the previous year[101]. Governance and Compliance - The company emphasizes the importance of corporate governance, ensuring compliance with laws and regulations while protecting the rights of minority shareholders[90]. - The board of directors operates independently and is supported by specialized committees to enhance decision-making processes[91]. - The company maintains active communication with investors through various channels to uphold transparency and trust in the capital market[92]. - The company has been involved in various strategic meetings to discuss funding and operational strategies[108]. - The company has established a comprehensive internal control management system to ensure compliance and asset security, which was audited with a standard unqualified opinion[126]. Future Outlook - For 2023, the company expects an increase in both operating revenue and operating costs compared to the previous year[81]. - The company plans to enhance operational efficiency and accelerate digital transformation to improve consumer interaction and drive consumption growth[79]. - The company aims to strengthen its market position in Xinjiang while seeking opportunities for expansion into new areas[80]. - The company will focus on optimizing existing brands and introducing new business formats to adapt to retail trends[82]. - The company intends to implement effective promotional controls to manage gross margins and enhance profitability[82]. Environmental and Social Responsibility - The company invested ¥2.0827 million in environmental protection during the reporting period[128]. - The company encourages the use of reusable shopping bags and promotes environmental awareness among consumers[131]. - The company actively uses clean energy for power generation, with approximately 30% of total power generation coming from clean energy sources[132]. - Total investment in public welfare projects amounted to 1.1227 million yuan, all of which was in cash donations[133]. - The company emphasizes environmental management and has implemented measures to reduce carbon emissions through technology and resource optimization[132]. Legal and Regulatory Matters - The company faced multiple lawsuits related to alleged false statements, with claims amounting to 32,403.72 thousand and 41,135.77 thousand respectively from individual investors[152][154]. - The Xinjiang Uygur Autonomous Region High People's Court upheld the original judgment, dismissing the appeals from investors, including a ruling on February 3, 2023, that rejected a retrial request from one investor[153][154]. - The company received an administrative penalty from the China Securities Regulatory Commission, indicating regulatory scrutiny over its disclosures[153][154]. - The company faced multiple lawsuits from individual investors claiming investment losses due to alleged false statements, with one case involving a claim for compensation of 62,565.40 million RMB[156].