Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 18,638,021 thousand, a decrease of 20.2% compared to RMB 23,350,235 thousand in 2021[2] - Gross profit for the same period was RMB 6,688,046 thousand, down 19.4% from RMB 8,299,283 thousand in the previous year[2] - Operating profit decreased by 55.4% to RMB 414,530 thousand from RMB 928,457 thousand in 2021[2] - Profit attributable to owners of the company was RMB 89,164 thousand, a decline of 75.0% compared to RMB 356,587 thousand in the prior year[2] - Basic earnings per share dropped by 74.9% to RMB 1.72 from RMB 6.86 in 2021[2] - The proposed final dividend was zero, compared to HKD 0.016 in the previous year, marking a 100% decrease[2] - The company's net profit attributable to shareholders for 2022 was RMB 89,164, a significant decline of 75% compared to RMB 356,587 in 2021[21] - Net profit for 2022 was RMB 100.2 million, a decrease of 73.3% compared to the previous year[38] Revenue and Sales - The company's revenue from sports apparel and footwear products for 2022 was RMB 18,528,602, a decrease of 20% from RMB 23,222,060 in 2021[12] - In 2022, the company's revenue decreased by 20.2% to RMB 18,638.0 million compared to the previous fiscal year[33] - Online sales accounted for approximately 24% of total sales in 2022, despite challenges from COVID-19 restrictions[30] - The retail environment in mainland China faced significant challenges, with a 6.5% year-over-year decline in retail sales for clothing and footwear in 2022[26] Costs and Expenses - The total employee costs for 2022 amounted to RMB 2,425,598, down from RMB 2,764,107 in 2021, reflecting a reduction of approximately 12%[17] - Selling and distribution expenses for 2022 were RMB 5,806.8 million, accounting for 31.2% of total revenue, an increase from 29.8% in 2021[36] Assets and Liabilities - Inventory decreased by 19.9% to RMB 6,071,858 thousand from RMB 7,578,037 thousand in 2021[6] - Accounts receivable and other receivables fell by 23.4% to RMB 2,149,713 thousand from RMB 2,807,379 thousand[6] - The accounts receivable at the end of 2022 was RMB 862,084, a decrease from RMB 1,165,003 in 2021, indicating a reduction of approximately 26%[22] - The accounts payable at the end of 2022 was RMB 819,396, down from RMB 1,655,096 in 2021, representing a decrease of about 50%[24] - Cash and cash equivalents as of December 31, 2022, were RMB 1,190.1 million, down from RMB 1,233.8 million in 2021[40] - Bank borrowings were significantly reduced by 71.2% to RMB 456,162 thousand from RMB 1,581,640 thousand in the previous year[6] Store Operations - The number of directly operated stores decreased from 4,631 at the beginning of 2022 to 4,093 by the end of the year, a net reduction of 538 stores[28] - As of December 31, 2022, the retail network covered 7,293 stores, including 4,093 directly operated and 3,200 franchised stores[27] Digital Transformation and Strategy - The company continued to enhance its digital transformation, investing in ERP systems and other digital tools to improve operational efficiency[32] - The private traffic channels, including WeChat mini-programs and Douyin live streaming, showed strong sales growth, contributing to better sales conversion rates[30] - The company aims to optimize its omnichannel strategy to reduce reliance on promotions and improve inventory management efficiency, targeting better profit margins and operational efficiency[45] - The company plans to accelerate its digital transformation and expand its membership integration program in 2023[44] Future Outlook - The company remains cautiously optimistic about sales growth in 2023, driven by a recovery in consumer sentiment and increased foot traffic[44] - The sports industry outlook in the Greater China region remains promising, with an expected industry value of RMB 5 trillion by 2025, aiding the company in recovering and surpassing previous growth trends[45] Corporate Governance - The company has complied with the corporate governance code as per the listing rules during the year ending December 31, 2022[52] - The company will hold its 2023 Annual General Meeting on May 25, 2023[48]
宝胜国际(03813) - 2022 - 年度业绩