Breo(SH:688793)2023-04-23 16:00Financial Performance - In 2022, the company's operating revenue was approximately 895.86 million, a decrease of 24.69% compared to 2021[21]. - The net profit attributable to shareholders was -124.43 million, representing a decline of 235.46% year-over-year[21]. - The basic earnings per share fell to -2.02, a decrease of 216.09% from the previous year[22]. - The net cash flow from operating activities was -2.23 million, down 102.57% compared to 2021[21]. - The company's total assets decreased by 16.84% to approximately 799.02 million at the end of 2022[21]. - The company's net assets attributable to shareholders decreased by 27.90% to approximately 472.50 million at the end of 2022[21]. - The company reported a significant loss in each quarter, with the fourth quarter net profit attributable to shareholders at -66.90 million[25]. - The company's gross profit margin for 2022 was 49.82%, showing a decline from the previous year[37]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -131.02 million, a decline of 270.85% compared to 2021[23]. - The company's revenue declined in 2022 due to macroeconomic changes, decreased consumer confidence, and reduced foot traffic in shopping centers, leading to a net profit loss[85]. Research and Development - Research and development expenses accounted for 6.40% of operating revenue, an increase of 2.43 percentage points from the previous year[22]. - The company invested 57.33 million yuan in R&D, an increase of approximately 21.45% compared to the previous year[36]. - The company has added 148 new patents during the reporting period, including 13 invention patents and 81 utility model patents, reflecting its commitment to innovation[59]. - The company has developed a new generation of massage devices that integrate IoT capabilities for enhanced user interaction and data analysis[70]. - The company is currently developing a smart massage device with voice interaction capabilities, with an investment of ¥9,194,700.00 in the current period and a cumulative investment of ¥1,852,611.24[67]. - The company is investing $50 million in R&D for new technologies aimed at enhancing user experience[141]. - The company is investing heavily in R&D, allocating 15% of its revenue, approximately 180 million, to develop new technologies and products[144]. Corporate Governance - The company has not proposed any special arrangements for corporate governance[8]. - The company has committed to preventing the controlling shareholder and related parties from occupying company assets, demonstrating a focus on corporate governance[154]. - The company has established specialized committees, including the audit committee, nomination committee, compensation and assessment committee, and strategic committee[157]. - The company has implemented a restricted stock incentive plan for 2022, involving 1,770,000 shares, representing 2.87% of the total[175]. - The company has established a compensation and assessment committee to continuously improve long-term incentive policies for senior management[182]. - The company has made amendments to various internal governance documents, including the company charter and decision-making rules for related transactions[154]. Market Position and Strategy - The company is a leading player in the domestic smart portable massager market, having pioneered various product categories including eye massagers and neck massagers since its establishment in 2000[55]. - The company operates under a dual-brand strategy with "breo" and "倍轻松," and utilizes a new retail model that integrates online and offline sales channels[51]. - The company plans to leverage its brand strength, "breo" and "倍轻松," to enhance consumer trust and market penetration[80]. - The company aims to enhance user interaction and satisfaction through the development of new technologies and products, focusing on health management[72]. - The company is actively expanding its overseas business, having established subsidiaries in Hong Kong, the United States, and Japan, and set up online stores on Amazon[88]. - The company plans to focus on the U.S., Japan, and Southeast Asia for international market expansion, promoting its brand globally[127]. - The company is considering strategic acquisitions to enhance its market position, with a budget of up to 300 million for potential targets[144]. Social Responsibility and Environmental Impact - The company actively engages in corporate social responsibility and environmental protection, contributing to social welfare and regional economic development[185]. - The company has established a reliable wastewater and waste gas treatment system, ensuring compliance with national and local environmental regulations without any significant pollution incidents during the reporting period[188]. - The company donated 20.10 million yuan worth of moxibustion boxes for pandemic support and contributed 10 million yuan to the Shanghai True Love Dream Foundation for educational projects[192]. - The company has received multiple awards for its social responsibility efforts, including recognition for its contributions to rural education and pandemic support[197]. - The management emphasized a commitment to sustainability, aiming for a 25% reduction in carbon footprint by 2025[141]. Employee Management - The company has implemented a restricted stock incentive plan for 2022, involving 1,770,000 shares, representing 2.87% of the total[175]. - The company strictly adheres to labor laws and regulations, ensuring compliance in employee management systems[200]. - Employee rights include pension insurance, unemployment insurance, maternity insurance, and housing provident fund[200]. - The company emphasizes the importance of employee safety and work environment[200]. - The company provides vocational education and training opportunities for employees[200]. - The company has established a clear upward mobility path for employees[200]. Audit and Compliance - The company received a standard unqualified audit report from Tianjian Accounting Firm, ensuring the accuracy of its financial statements[5]. - The audit committee convened 5 times during the reporting period, ensuring compliance with regulations and thorough discussions on all proposals[158]. - The company is focused on enhancing internal audit processes and has approved the internal audit work report for 2022[159].