DAZZLE FASHION(SH:603587)2023-04-27 16:00Financial Performance - The company's operating revenue for 2022 was ¥2,400,371,623.03, a decrease of 17.16% compared to ¥2,897,599,885.26 in 2021[23]. - Net profit attributable to shareholders was ¥384,546,423.10, down 44.23% from ¥689,483,326.02 in the previous year[23]. - Basic earnings per share decreased by 44.44% to ¥0.80 in 2022, compared to ¥1.44 in 2021[24]. - The weighted average return on equity fell to 10.28%, a decrease of 8.72 percentage points from 19.00% in 2021[24]. - The net cash flow from operating activities was ¥496,371,793.66, down 43.20% from ¥873,850,725.55 in 2021[23]. - Total assets at the end of 2022 were ¥4,360,229,143.43, a decrease of 7.06% from ¥4,691,541,561.23 at the end of 2021[23]. - The company's net profit in Q4 2022 significantly dropped to ¥9,117,215.58, down from ¥123,584,482.64 in Q3[26]. - The total operating revenue for the year was approximately 2.5 billion CNY, with a gross profit margin of 75.18% for tops, 74.88% for outerwear, and 69.64% for fur products, all showing a decrease compared to the previous year[70]. - The total revenue for 2022 was CNY 239,373.26 million, a decrease of 17.27% compared to 2021[90]. Dividends and Share Repurchase - The company plans to distribute a cash dividend of 7.00 CNY per 10 shares, totaling approximately 331.13 million CNY, which represents 86.11% of the net profit attributable to shareholders for 2022[5]. - The total cash dividends distributed by the company for 2022 amount to approximately 400.99 million CNY, exceeding the net profit attributable to shareholders by 4.28%[5]. - The company repurchased a total of 4,837,322 shares during the year, with a cash outflow of approximately 69.86 million CNY, accounting for 18.17% of the net profit attributable to shareholders[5]. - The total cash distribution, including share buybacks, amounts to RMB 400,985,812.76, exceeding the net profit by 104.28%[160]. Market and Industry Trends - In 2022, the total retail sales of clothing, shoes, hats, and textiles in China amounted to CNY 1.3 trillion, a year-on-year decrease of 6.5%[49]. - The online retail sales in China reached CNY 13.79 trillion in 2022, with a year-on-year growth of 4%, while the physical goods online retail sales were CNY 11.96 trillion, growing by 6.2%[50]. - The retail market in 2022 faced challenges, with the total retail sales of consumer goods declining by 0.2% year-on-year, reflecting a volatile consumption environment[48]. - The company anticipates continued recovery in the apparel market driven by economic improvement and increased consumer spending[96]. - The trend of "quality-price ratio" among consumers is expected to favor mid-to-high-end apparel brands, providing growth opportunities[99]. Brand and Product Development - The company's brands include "DAZZLE," "DIAMOND DAZZLE," "d'zzit," and "RAZZLE," focusing on mid-to-high-end fashion products[34]. - The company launched new products under the brands DIAMOND DAZZLE, DAZZLE, and RAZZLE, focusing on the theme of "contradictory aesthetics" for the 2023 Spring collection[51]. - The company designed nearly 1,000 clothing styles each quarter, showcasing its strong design capabilities[60]. - The company invests significantly in new fabric research and development each year to maintain brand uniqueness and quality[43]. Digital Transformation and E-commerce - The company has made significant progress in digital transformation, implementing a consumer digital operation system and enhancing supply chain digital capabilities[54]. - The company emphasizes the importance of e-commerce, with a focus on platforms like Tmall, Douyin, and JD.com to reach consumers effectively[50]. - The company aims to enhance user experience through differentiated strategies and multi-channel approaches in e-commerce[50]. - The company has established a strong retail network through direct sales, distribution, and e-commerce platforms, enhancing sales efficiency across major cities[46]. Governance and Compliance - The company has provided a standard unqualified audit report from its accounting firm, indicating the financial statements' accuracy and completeness[4]. - The company has not reported any significant differences in governance compared to regulations set by the China Securities Regulatory Commission[117]. - The company has established various governance rules to ensure effective performance of rights by shareholders, directors, supervisors, and senior management[117]. - The company’s governance structure includes a board of 9 members, with 3 independent directors, ensuring compliance with relevant laws and regulations[116]. Research and Development - R&D expenses increased by 10.41% to CNY 71,335.48 million, reflecting the company's commitment to innovation[66]. - The company has 213 R&D personnel, accounting for 10.72% of the total workforce[77]. - The company plans to increase R&D investment significantly, emphasizing the recruitment and development of top design talent to improve product quality and innovation[102]. Social Responsibility and Sustainability - The company invested a total of 3.4 million yuan in charitable donations during the reporting period, supporting various social responsibility initiatives[172]. - The company is dedicated to sustainable fashion practices, investing in responsible consumption and production initiatives to fulfill its social responsibility[101]. - The company did not report any significant internal control deficiencies in managing its subsidiaries, ensuring effective execution of internal controls[165]. Future Outlook - The company provided guidance for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion RMB[179]. - New product launches are expected to contribute an additional 200 million RMB in revenue, with a focus on expanding the product line[179]. - The company plans to continue expanding its market presence and developing new products[126].