Peacebird(SH:603877)2023-04-28 16:00Overall Financial and Operating Performance Summary of Core Financial Data In Q1 2023, operating revenue declined by 15.83% to RMB 2.074 billion, yet net profit attributable to shareholders rose 14.20% to RMB 217 million, with operating cash flow turning positive Q1 2023 Key Financial Data | Metric | Current Period (RMB Million) | YoY Change (%) | | :--- | :--- | :--- | | Operating Revenue | 2,073.61 | -15.83 | | Net Profit Attributable to Shareholders | 217.25 | 14.20 | | Net Profit Attributable to Shareholders Excluding Non-Recurring Items | 177.97 | 58.55 | | Net Cash Flow from Operating Activities | 144.81 | Not Applicable | | Basic Earnings Per Share (RMB/share) | 0.46 | 15.00 | | Weighted Average Return on Net Assets (%) | 5.10 | Increased by 0.75 percentage points | - Net profit excluding non-recurring items significantly increased by 58.55%, primarily due to improved sales gross margin and reduced operating expenses in the current period6 - Net cash flow from operating activities turned positive, mainly due to reduced cash outflows for salaries, taxes, and other operating expenses in the current period6 Non-Recurring Gains and Losses Total non-recurring gains and losses for the current period amounted to RMB 39.28 million, primarily comprising government subsidies recognized in current profit of RMB 44.27 million Q1 2023 Non-Recurring Gains and Losses Items | Item | Amount (RMB Million) | | :--- | :--- | | Government subsidies recognized in current profit/loss | 44.27 | | Fair value changes from financial assets held for trading | 7.97 | | Other non-operating income and expenses | 0.46 | | Gains/losses on disposal of non-current assets | -0.28 | | Income tax impact | -13.11 | | Total | 39.28 | Shareholder Information Total Shareholders and Top Ten Shareholders' Holdings As of the end of the reporting period, the company had 13,632 common shareholders; the top three shareholders, Taipingniao Group Co., Ltd., Chen Hongchao, and Ningbo Fanmei Investment Management Co., Ltd., collectively held over 61% of shares, with some major shareholders having pledged their equity - As of the end of the reporting period, the company had 13,632 common shareholders41 Top Ten Shareholders' Holdings | Shareholder Name | Shareholding Ratio (%) | Number of Shares Held | Share Status | | :--- | :--- | :--- | :--- | | Taipingniao Group Co., Ltd. | 43.14 | 205,539,588 | Pledged | | Chen Hongchao | 9.33 | 44,435,500 | Unknown | | Ningbo Fanmei Investment Management Co., Ltd. | 8.85 | 42,168,000 | Pledged | | Ningbo Penghao Investment Partnership (Limited Partnership) | 6.19 | 29,500,000 | Pledged | | Zhang Jiangbo | 5.07 | 24,156,612 | None | | Ningbo Hele Investment Co., Ltd. | 3.72 | 17,724,307 | None | | Hong Kong Securities Clearing Company Limited | 3.27 | 15,564,838 | Unknown | Operating Performance Analysis Analysis of Main Business The company's main business (apparel operations) revenue decreased by 15.76% year-on-year, but gross margin significantly increased by 5.87 percentage points; all core brands and online/offline channel revenues declined, with online channels experiencing a larger drop, yet gross margins across all segments generally improved By Industry Core apparel operations revenue was RMB 2.064 billion, a 15.76% year-on-year decrease, but gross margin improved from 54.34% to 60.21%, an increase of 5.87 percentage points, indicating enhanced profitability Operating Performance by Industry (RMB Million) | Industry | Operating Revenue | YoY Change in Operating Revenue (%) | Gross Margin (%) | Gross Margin Change from Prior Year | | :--- | :--- | :--- | :--- | :--- | | Apparel Operations | 2,064.17 | -15.76 | 60.21 | Increased by 5.87 percentage points | | Apparel Manufacturing and Others | 2.49 | 98.66 | 6.22 | Decreased by 4.80 percentage points | By Brand Revenue for all major brands declined, with PEACEBIRD Women's and LEDIN Women's experiencing over 20% drops; despite revenue decreases, gross margins for all major brands improved, notably PEACEBIRD Men's with a 7.92 percentage point increase, demonstrating brand quality and efficiency improvements Operating Performance by Brand (RMB Million) | Brand | Operating Revenue | YoY Change in Operating Revenue (%) | Gross Margin (%) | Gross Margin Change from Prior Year | | :--- | :--- | :--- | :--- | :--- | | PEACEBIRD Women's | 748.44 | -22.17 | 61.41 | Increased by 5.48 percentage points | | PEACEBIRD Men's | 816.32 | -1.30 | 62.56 | Increased by 7.92 percentage points | | LEDIN Women's | 215.84 | -24.12 | 52.76 | Increased by 3.23 percentage points | | MiniPeace Kids' | 249.74 | -20.56 | 57.70 | Increased by 3.04 percentage points | By Channel Both online and offline channel revenues declined, with online revenue decreasing by 29.54%, a larger drop than offline's 9.33%; gross margins for both channels significantly improved, with online increasing by 6.10 percentage points and offline by 4.71 percentage points Operating Performance by Channel (RMB Million) | Channel | Operating Revenue | YoY Change in Operating Revenue (%) | Gross Margin (%) | Gross Margin Change from Prior Year | | :--- | :--- | :--- | :--- | :--- | | Online Sales | 549.14 | -29.54 | 50.16 | Increased by 6.10 percentage points | | Offline Sales | 1,515.03 | -9.33 | 63.85 | Increased by 4.71 percentage points | By Store Type Revenue for both direct-operated and franchise stores declined, with franchise channel revenue decreasing by 14.95%, a larger drop than direct-operated's 6.96%; gross margins for both store types improved, with direct-operated stores increasing by 5.24 percentage points and franchise stores by 2.19 percentage points Operating Performance by Store Type (RMB Million) | Store Type | Operating Revenue | YoY Change in Operating Revenue (%) | Gross Margin (%) | Gross Margin Change from Prior Year | | :--- | :--- | :--- | :--- | :--- | | Direct-Operated | 1,093.51 | -6.96 | 69.55 | Increased by 5.24 percentage points | | Franchise | 421.53 | -14.95 | 49.08 | Increased by 2.19 percentage points | Physical Store Changes During the reporting period, the company continued to optimize its channel structure, net closing 330 stores, reducing the total number of stores from 4,671 at the beginning of the year to 4,341; all brands experienced varying degrees of store count reduction, with PEACEBIRD Women's having the highest net closures at 162 stores Physical Store Changes (Units: Stores) | Brand | Store Type | Number at Period End | Net New/Closed Stores | | :--- | :--- | :--- | :--- | | Total | Subtotal | 4,341 | -330 | | PEACEBIRD Women's | Subtotal | 1,719 | -162 | | PEACEBIRD Men's | Subtotal | 1,450 | -53 | | LEDIN Women's | Subtotal | 502 | -56 | | MiniPeace Kids' | Subtotal | 668 | -29 | Financial Statements Key Highlights of Consolidated Balance Sheet As of period-end, total assets were RMB 7.953 billion, a 7.00% decrease from the beginning of the year; total liabilities decreased by 19.03% to RMB 3.561 billion, optimizing the asset-liability ratio; inventory and accounts payable decreased by 11.75% and 33.55% respectively from the beginning of the year, indicating improved working capital management efficiency Key Balance Sheet Items (RMB Billion) | Item | March 31, 2023 | December 31, 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 7.95 | 8.55 | -7.00 | | Total Liabilities | 3.56 | 4.40 | -19.03 | | Total Equity Attributable to Parent Company Shareholders | 4.38 | 4.14 | 5.77 | | Inventory | 1.88 | 2.13 | -11.75 | | Accounts Payable | 0.91 | 1.36 | -33.55 | Key Highlights of Consolidated Income Statement Q1 operating revenue was RMB 2.074 billion, a 15.83% year-on-year decrease; operating costs decreased by 26.5%, a much larger drop than revenue, boosting gross margin from 54.2% to 60.0%; selling and administrative expenses were effectively controlled, decreasing by 20.3% and 10.3% respectively, ultimately achieving net profit attributable to parent company shareholders of RMB 217 million, a 14.20% year-on-year increase Key Income Statement Items (RMB Billion) | Item | Q1 2023 | Q1 2022 | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 2.07 | 2.46 | -15.83 | | Operating Cost | 0.83 | 1.13 | -26.50 | | Selling Expenses | 0.74 | 0.93 | -20.31 | | Administrative Expenses | 0.15 | 0.17 | -10.27 | | Net Profit Attributable to Parent Company Shareholders | 0.22 | 0.19 | 14.20 | Key Highlights of Consolidated Cash Flow Statement Net cash flow from operating activities was RMB 145 million, a significant improvement from RMB -228 million in the prior year, primarily due to reduced cash outflows for goods purchased, employee compensation, and various taxes; net cash flow from investing activities was RMB 554 million, mainly from investment recovery; period-end cash and cash equivalents increased to RMB 1.645 billion, indicating a healthy cash position Key Cash Flow Statement Items (RMB Billion) | Item | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 0.15 | -0.23 | | Net Cash Flow from Investing Activities | 0.55 | 0.17 | | Net Cash Flow from Financing Activities | -0.12 | -0.20 | | Net Increase in Cash and Cash Equivalents | 0.58 | -0.26 | | Cash and Cash Equivalents at Period End | 1.65 | 0.85 | Impact of Accounting Standard Changes The company adopted Interpretation No. 16 of Accounting Standards for Business Enterprises issued by the Ministry of Finance from January 1, 2023, retrospectively adjusting deferred income tax assets and retained earnings at the beginning of the period, increasing both by RMB 5.6983 million - The company adopted Interpretation No. 16 of Accounting Standards for Business Enterprises from January 1, 2023, and adjusted financial statement items at the beginning of 20232953 Adjustments to Financial Statements at Year-Beginning (RMB) | Item | Before Adjustment (Dec 31, 2022) | After Adjustment (Jan 01, 2023) | Adjustment Amount | | :--- | :--- | :--- | :--- | | Deferred Income Tax Assets | 426,704,315.90 | 432,402,592.92 | 5,698,277.02 | | Retained Earnings | 2,100,026,038.01 | 2,105,724,315.03 | 5,698,277.02 |