Financial Performance - Revenue increased by 19.6% to RMB 1,349.0 million compared to RMB 1,127.6 million in the previous year[12] - Profit attributable to owners of the company was RMB 87.8 million, a turnaround from a loss of RMB 24.4 million in the previous year[12] - Earnings per share was RMB 0.060, compared to a loss per share of RMB 0.017 in the previous year[12] - Total comprehensive income for the year was RMB 275.6 million, up from RMB 106.8 million in the previous year[13] - The company reported total income from self-operated sales of RMB 523.3 million, up from RMB 430.3 million[8] - Total sales revenue rose by 25.2% from RMB 2,520.2 million in the previous year to RMB 3,154.1 million[37] - Gross profit increased by 19.3% to RMB 785.4 million, while the gross profit margin decreased from 26.1% in 2022 to 24.9% in 2023[38] - Adjusted EBITDA rose by 9.6% to RMB 434.3 million from RMB 396.1 million in 2022, attributed to the recovery in sales and revenue[42] - The group's net profit attributable to shareholders increased by 68.9% to RMB 185.0 million for the year, up from RMB 109.5 million in the previous year[104] Income and Expenses - Rental income increased to RMB 302.9 million from RMB 224.5 million[8] - Interest income from bank deposits was RMB 55.8 million, compared to RMB 26.2 million in the previous year[9] - Total employee costs increased from RMB 208,753 thousand in 2022 to RMB 236,632 thousand in 2023[24] - General administrative expenses increased by 10.8% year-on-year to RMB 261.3 million, primarily due to rising employee costs as business operations normalized[90] - The total sales and distribution costs for the year 2023 amounted to RMB 612.1 million, an increase of 5.9% compared to RMB 577.8 million in the previous year, with the cost-to-sales ratio decreasing to 19.4% from 22.9% due to higher sales growth[64] - Financing costs for the year totaled approximately RMB 181.9 million, up from RMB 115.7 million in 2022, primarily due to an increase in bank loan interest to RMB 124.2 million from RMB 101.5 million[67] Assets and Liabilities - Non-current assets totaled RMB 13,811.8 million, an increase from RMB 12,409.7 million in the previous year[14] - The company’s total liabilities decreased to RMB 11,016.5 million from RMB 10,798.9 million[16] - As of December 31, 2023, the company's net debt decreased to approximately RMB 405.4 million from RMB 560.6 million a year earlier, attributed to increased cash flow from operations[68] Customer Engagement and Sales Strategy - The company aims to enhance customer engagement and sales growth through optimized store environments and marketing activities[36] - The company continues to enhance its product offerings and optimize the shopping environment, focusing on experiential consumption models and various themed marketing activities to attract customers[72] - The group plans to leverage big data analytics to understand customer preferences and enhance marketing strategies, aiming to improve customer engagement and loyalty[110] - The group aims to enhance brand exposure through live streaming, short videos, and emerging social media, while providing online shopping convenience[126] Market Trends and Performance - The company experienced a slowdown in sales growth in the second half of the year, with an increase of approximately 5.8% year-on-year[37] - The total retail sales of consumer goods in China grew by 7.2% year-on-year, with notable increases in jewelry and clothing sectors, which rose by 13.3% and 12.9% respectively[61] - The overall retail sales of the strategic equity holding in Beiren Group increased by approximately 9.3% year-on-year, driven by the recovery of the retail market post-pandemic[104] Employee and Operational Insights - The total number of full-time employees as of December 31, 2023, was 1,172, up from 1,168 the previous year[91] - Employee costs (excluding director remuneration) amounted to RMB 208.4 million for the year ended December 31, 2023, compared to RMB 192.7 million in 2022, reflecting an increase of approximately 8.8%[127] Dividends and Investments - The company did not declare any dividends for the year[12] - The group has not declared any dividends for the year ending December 31, 2023, consistent with the previous year[115] - The company has not made any significant investments or acquisitions during the year[97] Risks and Challenges - The independent legal opinion suggests that the likelihood of recovering any outstanding receivables is very low, with full bad debt provisions made since 2019[81] - The group continues to monitor the situation regarding receivables and has not made progress in recovering outstanding accounts[105] - The company is actively monitoring foreign currency risks and may consider appropriate measures to mitigate potential significant foreign currency risks as needed[69]
利福中国(02136) - 2023 - 年度业绩