Marubi(SH:603983)2023-04-28 16:00Financial Performance - The company reported a total revenue of 124,424.36 million RMB from online sales, representing a year-over-year increase of 21.06%[6] - Offline sales revenue was 48,557.38 million RMB, showing a decline of 30.49% compared to the previous year[6] - The company reported a decrease in net profit and earnings per share due to a decline in sales revenue compared to the previous year, alongside increased expenses from expanding online channels[48] - The company reported a net profit of 562.67 million RMB from its subsidiary, Marumi Technology, while other subsidiaries reported losses[3] - The company’s net profit attributable to shareholders was 174 million RMB, a decline of 29.74% year-on-year, primarily due to increased expenses from the online channel transformation[103] - The company achieved a significant breakthrough in online e-commerce operations in Q4 2022, enhancing its competitive advantage and laying a solid foundation for long-term high-quality development[55] - The company reported a total pre-tax remuneration of 183.38 million CNY for the CEO during the reporting period[175] - The company reported a revenue increase of 15% year-over-year, reaching 1.2 billion RMB in the last quarter[181] - The company’s overall sales expenses increased by 14.15% year-on-year to 846 million RMB, while management expenses rose by 10.87% to 111 million RMB[103] Gross Profit and Margins - The gross profit margin for the eye care segment increased by 6.46 percentage points to 68.74%, despite a revenue decrease of 16.73%[6] - The skincare segment's gross profit margin improved by 2.44 percentage points to 68.13%, with a revenue decline of 17.80%[6] - The company's gross margin increased to 68.40%, up 4.38 percentage points, due to optimized sales strategies and cost control, leading to higher prices for regular products and a reduction in promotional items[103] - The gross profit margin improved by 4.31 percentage points to 68.45% due to a decrease in operating costs by 11.85% to ¥545,763,947.39[137] - The gross margin improved to 45%, up from 40% in the previous year, indicating better cost management[181] Investments and Assets - The company has invested 99.90% in the Qingdao Maoda Equity Investment Partnership, increasing its total investment to 9,990 million RMB[11] - The total assets of the company’s major subsidiaries include 109,476.89 million RMB for Chongqing Bodo and 49,553.04 million RMB for Marumi Technology[3] - The company's total assets increased by 8.76% year-over-year, reaching approximately ¥4.09 billion[70] Production and Capacity - The company has established a new production base in Guangzhou with a design capacity of 1,710 tons for cosmetics, which officially commenced production in 2022[16] - The intelligent manufacturing factory in Guangzhou is expected to add 3,382.50 tons of skincare product capacity, with completion anticipated in 2023[16] - The company is currently evaluating the construction progress and future arrangements for its intelligent manufacturing project due to external uncertainties[16] Research and Development - The company applied for 77 new patents and received 69 new authorizations during the reporting period, including 55 invention patents[80] - R&D expenses amounted to 52.93 million RMB, reflecting a year-on-year increase of 4.83%, indicating continued investment in innovation[103] - The number of R&D personnel is 93, accounting for 8.77% of the total workforce[2] - The company is investing 50 million RMB in R&D for new technologies aimed at enhancing product efficiency[181] Procurement and Operating Costs - The procurement of additives showed a price decrease of 2%, while liquid oils, emulsifiers, and surfactants experienced price increases of 15%, 11%, and 15% respectively, impacting overall operating costs[19] - The average procurement price for water increased by 6%, electricity by 16%, and gas by 14%, contributing to higher operating costs[20] - The company has implemented phase-based reserves for long-cycle imported raw materials to mitigate risks associated with price fluctuations[23] - The company reduced its procurement costs, with raw material costs decreasing by 15.52% to ¥344,214,966.74[140] - Operating costs decreased by 14.89% to approximately 547.29 million RMB compared to the previous period[136] Market and Sales Strategy - The main brand "MARUBI" has established itself as a leading brand in the domestic high-end cosmetics market, recognized for its eye care products and anti-aging category[29] - The online channel generated 1.24 billion RMB in revenue, representing 71.93% of total revenue, with a year-on-year growth of 21.06%, primarily driven by the rapid development of Douyin and Kuaishou self-broadcasting and the Lianhuo brand[110] - The Lianhuo brand achieved revenue of 286 million RMB, a significant increase of 331.91% year-on-year, contributing 16.52% to total revenue[103] - The company optimized its product structure by reducing over 200 SKUs and focused on different sales strategies for online and offline channels[83] - The revenue from the restructured double collagen protein series reached approximately ¥205 million, accounting for 11.84% of the company's total revenue[83] Digital Transformation and Technology - The company completed its digital transformation 1.0 in 2022, establishing a comprehensive digital middle platform and integrating 12 internal systems with 46 external data sources[113] - The company initiated a three-year digital transformation 2.0 plan to enhance the application of data assets for high-quality development[113] - The company maintained a strong focus on digital transformation, improving supply chain efficiency and reducing inventory to historical lows, achieving a 45-day delivery time for key products[88] - The company plans to enhance its digital marketing strategy, allocating an additional 30 million RMB for online campaigns[181] Governance and Management - The company has established a comprehensive board governance structure with 9 directors, including 3 independent directors, ensuring effective decision-making[170] - The company has not experienced any significant governance issues or interference from major shareholders during the reporting period[172] - The independent director Qin Xin resigned due to personal work reasons, and the board has nominated Mr. Cao Yong as a candidate for independent director[199] - The company held one annual and one extraordinary shareholders' meeting during the reporting period, adhering to legal and procedural requirements[189] - The company is committed to continuous improvement in operational standards and governance practices to ensure long-term stability and growth[188] Future Outlook and Strategic Goals - The company plans to focus on "user-centric, excellent products, refined market operations, and precise management" in 2023[155] - The company aims for a comprehensive recovery and healthy growth in 2023, emphasizing execution and conversion[155] - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 300 million RMB allocated for potential deals[181] - Market expansion plans include entering three new regions, projected to increase market share by 5%[181] - The company aims for multi-brand and multi-channel collaborative development, prioritizing user-centric fine operations and continuous R&D innovation[168]