IDEAL(SZ:002740)2023-04-28 16:00Financial Performance - The company's operating revenue for 2022 was ¥366,492,533.90, a decrease of 56.47% compared to ¥841,981,877.10 in 2021[20]. - The net profit attributable to shareholders for 2022 was -¥708,542,825.69, an improvement of 8.21% from -¥771,881,728.25 in 2021[20]. - The cash flow from operating activities for 2022 was -¥16,094,862.50, showing a 33.99% improvement from -¥24,381,835.36 in 2021[20]. - The total assets at the end of 2022 were ¥1,627,574,431.79, a decrease of 23.70% from ¥2,133,099,422.69 at the end of 2021[20]. - The company's net assets attributable to shareholders at the end of 2022 were -¥569,098,259.56, a decline of 512.74% from ¥137,883,127.26 at the end of 2021[20]. - The basic and diluted earnings per share for 2022 were both -¥1.56, an improvement of 8.24% from -¥1.70 in 2021[20]. - The company reported a total of ¥359,165,267.85 in operating revenue after deductions for 2022, compared to ¥835,050,413.58 in 2021[20]. - The total revenue for 2022 was approximately ¥366.49 million, a decrease of 56.47% compared to ¥841.98 million in 2021[58]. - The revenue from embedded jewelry was ¥186.73 million, accounting for 50.95% of total revenue, down 58.97% from ¥455.12 million in 2021[58]. - The revenue from self-operated sales was ¥143.01 million, representing 39.02% of total revenue, with a decline of 10.51% from ¥159.81 million in the previous year[59]. - The company reported a total revenue of 365.6 million in 2022, a decrease of 27.4% compared to 2021[113]. - The net profit for 2022 was 91.1 million, down from 274.5 million in 2021, reflecting a decline of 66.8%[113]. Operational Changes - The company closed 230 stores during the reporting period, resulting in a total revenue loss of CNY 718.48 million, which accounted for 3.99% of the total revenue[42]. - The total number of self-operated stores decreased by 7, with 6 closures in the East China region[40]. - The company operated a total of 510 stores, including 497 franchise stores and 13 self-operated stores[38]. - The company added three subsidiaries during the reporting period, expanding its consolidation scope[65]. - The company has seen changes in its consolidation scope, with certain subsidiaries no longer included in the consolidated financial statements since April 2020[124]. - The company is currently in a restructuring phase and has been facing continuous losses for three years[131]. - The company is undergoing a bankruptcy reorganization process initiated by creditors, with a restructuring team appointed by the local government[188]. Internal Control and Governance - The company reported a significant financial control deficiency in its internal control self-assessment report[5]. - The internal control audit report issued a negative opinion, indicating that the company failed to maintain effective financial reporting internal controls as of December 31, 2022[154]. - The company has established a complete and independent business operation system, ensuring no reliance on the major shareholder for design, sales, or procurement[105]. - The company has a complete and independent governance structure, complying with relevant laws and regulations[104]. - The company has implemented effective internal control systems to manage daily operations and decision-making processes[103]. - The company has a robust internal accounting management system to oversee various economic activities[109]. - The company has identified one major deficiency in financial reporting and no major deficiencies in non-financial reporting as per the internal control self-assessment report[153]. - The company is in the process of rectifying the identified deficiencies, with a completion target set for December 2023[150]. Legal and Regulatory Issues - The company faced regulatory warnings for failing to disclose loan matters and other financial irregularities during the reporting period[156]. - The company’s subsidiary, Qian Nian Jewelry, was penalized for illegal invoice issuance, resulting in fines and the requirement to return illicit gains[157]. - The company has ongoing litigation matters with various amounts involved, including a case against Zhejiang Jin Brothers Jewelry with a disputed amount of 645.88 million yuan[193]. - The company is involved in multiple legal disputes with amounts of 894.57 million and 1,144.63 million, both of which have been ruled in favor of the company but are still pending execution[198]. - The company has a pending case with a total amount of 3,445.18 million, which has been ruled in favor of the company[200]. Market and Product Strategy - The jewelry market in China is expected to maintain a growth trend, driven by increasing consumer spending and the influence of younger demographics[31]. - The company aims to enhance its online and offline integrated marketing network to improve profitability across various markets[54]. - The company plans to enhance its product lines by focusing on wedding rings and design, aiming to achieve its performance goals through brand and market marketing strategies[86]. - The company is upgrading its brand image to appeal to younger consumers, involving changes in terminal decoration, product packaging, and marketing strategies[88]. - The company is focusing on research and development of new technologies to enhance product offerings and improve market competitiveness[113]. Financial Commitments and Obligations - The company committed to a net profit of no less than 36 million, 46 million, and 56 million for the years 2017, 2018, and 2019 respectively, totaling a cumulative commitment of 138 million[162]. - The profit compensation amount is calculated based on the difference between the committed profit and the actual profit achieved, divided by the total committed profit for the years 2017-2019[162]. - The company is obligated to complete profit compensation within 10 working days after the issuance of the special audit report[163]. Employee and Management Structure - The company reported a total of 236 employees at the end of the reporting period, with 85 in sales and 26 in finance[142]. - The company has a structured salary adjustment policy, with adjustments made twice a year based on performance evaluations[144]. - The company plans to conduct training programs annually to enhance employee skills and management capabilities[145]. - The company has a total of 49 employees with a bachelor's degree and 75 with a diploma[143]. Future Outlook - Future outlook includes plans for market expansion and the introduction of new products, aiming to recover from the current downturn[113]. - The company is exploring potential acquisitions to strengthen its market position, with a budget of 200 million yuan allocated for this purpose[117]. - The company provided guidance for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion yuan[117].