星盛商业(06668) - 2022 - 年度业绩

Performance Highlights This section summarizes the company's 2022 financial performance, key operational metrics, and strategic outlook. 2022 Annual Performance Overview In 2022, total revenue slightly decreased by 1.8% to RMB 561.9 million, gross profit margin declined to 55.7%, while core profit attributable to owners increased by 6.0%. 2022 Key Financial Indicators | Indicator | 2022 | 2021 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 561.9 million | RMB 572.2 million | -1.8% | | Gross Profit | RMB 313.0 million | RMB 330.4 million | -5.3% | | Gross Profit Margin | 55.7% | 57.7% | -2.0pp | | Profit Attributable to Owners of the Company | RMB 154.3 million | RMB 184.9 million | -16.6% | | Core Profit Attributable to Owners of the Company | RMB 198.9 million | RMB 187.6 million | +6.0% | - As of December 31, 2022, the Group's contracted GFA for commercial operation services was approximately 3.7 million sq.m., with 60.0% developed or owned by independent third parties; GFA in operation was approximately 1.908 million sq.m.[81] - The Board proposed a final dividend of HKD 0.07 per share, making the total annual dividend HKD 0.105 per share including the interim dividend[81] Management Discussion and Analysis This section reviews the company's 2022 business operations, strategic initiatives, and detailed financial performance. Overview and Business Review The Group maintained its leading position in Greater Bay Area commercial property operations, expanding nationwide with 65 contracted projects totaling 3.7 million sq.m. - As of December 31, 2022, the Group had 65 contracted projects covering 24 cities, with a total contracted GFA of approximately 3.7 million sq.m., of which 60.0% were developed or owned by independent third parties[160] - The Group possesses a comprehensive brand system, including urban "COCO Park", regional "COCO City" and "iCO", and community "COCO Garden" shopping centers[208] - In 2022, the Group ranked 10th among "Top 100 Chinese Commercial Real Estate Enterprises" and received "Top 10 Chinese Commercial Real Estate Operators in 2022" awards[329] Business Models The company offers commercial property operation services via entrusted management, brand and management output, and master lease models, each with distinct characteristics. Comparison of Three Business Models | Business Model | Role & Services | Revenue Sources | Cost Structure | Characteristics | | :--- | :--- | :--- | :--- | :--- | | Entrusted Management Services | Full management, including positioning, tenant sourcing, operation management, and value-added services | Fixed fees, revenue/profit sharing, management fees, value-added service fees | Bears all operating costs | High autonomy, enables ideal operational performance | | Brand and Management Output Services | Professional manager, dispatches core management team | Fixed fees, revenue/profit sharing | Bears only partial staff costs, owner bears main operating costs | Asset-light model, high gross profit margin, conducive to rapid regional expansion | | Master Lease Services | Leases properties then subleases, fully responsible for management and operation | Tenant rents, management fees, value-added service fees | Bears all operating costs and rent to property owner | Maximizes revenue, but carries higher risks | Project Expansion and Operational Performance In 2022, the Group added 5 third-party projects, increasing contracted area by 408,000 sq.m., while total contracted GFA decreased due to strategic terminations. - In 2022, 5 third-party commercial operation service agreements were signed, adding 408,000 sq.m. of contracted GFA[194] Changes in Contracted GFA and Project Count (as of year-end) | Indicator | 2022 | 2021 | | :--- | :--- | :--- | | Contracted Projects | 65 | 84 | | Total Contracted GFA | 3.7 million sq.m. | 3.9 million sq.m. | - The Group proactively terminated 6 projects in 2022 to reallocate resources to high-quality projects, ensuring sustainable development[197] Average Occupancy Rate of Operational Retail Properties | Product Type | December 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | COCO Park | 96.0% | 98.3% | | COCO City and iCO | 91.1% | 92.4% | | Others | 94.8% | 95.0% | | Total | 92.5% | 94.0% | 2023 Work Plan For 2023, the Group plans to focus on "Operation Year" initiatives, emphasizing quality, efficiency, and high-quality expansion, targeting an occupancy rate of no less than 95%. - Focus on "Operation Year": Emphasizing dual improvement in quality and efficiency for high-quality development[298][273] - Stabilize and support merchants: Strengthen brand reserves, introduce first-time brands and innovative formats, targeting an occupancy rate of no less than 95%[26] - Quality openings: Plan to complete the opening of 5-7 projects in 2023, ensuring timely openings through a "Special Project Opening Team"[274] - High-quality expansion: Focus on acquiring premium projects in core tiered cities (4 breakthrough, 23 deep-cultivation, 8 reserve cities) under a "quality-first" strategy[300][28][275] Financial Review In 2022, total revenue slightly decreased to RMB 561.9 million, gross profit margin declined, and expenses increased, yet the company maintained a stable financial position with increased cash. Revenue Analysis Total revenue decreased by 1.8% to RMB 561.9 million in 2022, driven by entrusted management growth, significant master lease expansion, and a decline in brand and management output services. 2022 Revenue Breakdown by Business Model | Business Model | 2022 Revenue (RMB thousands) | Revenue Share | 2021 Revenue (RMB thousands) | Revenue Share | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Entrusted Management Services | 381,701 | 67.9% | 351,650 | 61.5% | +8.5% | | Brand and Management Output Services | 137,904 | 24.6% | 198,495 | 34.7% | -30.5% | | Master Lease Services | 42,249 | 7.5% | 22,064 | 3.8% | +91.5% | | Total | 561,854 | 100.0% | 572,209 | 100.0% | -1.8% | Gross Profit and Gross Profit Margin Analysis Gross profit decreased by 5.3% to RMB 313.0 million, with overall gross profit margin falling to 55.7% due to changes in business mix and master lease services' margin decline. 2022 Gross Profit and Gross Profit Margin by Business Model | Business Model | 2022 Gross Profit (RMB thousands) | 2022 Gross Profit Margin | 2021 Gross Profit (RMB thousands) | 2021 Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | | Entrusted Management Services | 205,686 | 53.9% | 172,559 | 49.1% | | Brand and Management Output Services | 101,134 | 73.3% | 148,820 | 75.0% | | Master Lease Services | 6,219 | 14.7% | 9,053 | 41.0% | | Total/Overall | 313,039 | 55.7% | 330,432 | 57.7% | Expense and Profit Analysis Service, selling, administrative, and finance costs, along with expected credit losses, all increased in 2022, leading to a 19.1% decrease in profit for the year. - Service costs increased by 2.9% year-on-year to RMB 248.8 million, mainly due to increased operating costs from the Jiaxing Xinghe COCO City master lease project opening[31] - Selling expenses increased by 41.4% to RMB 12.0 million, and administrative expenses increased by 16.1% to RMB 82.6 million, both related to new master lease projects[85][60] - Finance costs surged by 503.3% to RMB 23.3 million, primarily due to increased interest expenses on lease liabilities from new master lease projects[36] - Expected credit losses (net of reversal) increased by 108.0% to RMB 21.4 million, due to higher provision rates for certain projects[59] - Profit for the year decreased by 19.1% year-on-year to RMB 148.9 million; profit attributable to owners of the Company decreased by 16.6% year-on-year to RMB 154.3 million[285] Financial Position and Liquidity As of year-end 2022, the Group's financial position remained stable, with significant growth in investment properties and an increased gearing ratio due to new master lease projects. - Investment properties increased by 1,515.0% to RMB 767.5 million, mainly due to the recognition of lease assets from new Jiaxing and Xiamen master lease projects[64] - Bank balances and cash increased by 8.2% to RMB 482.8 million, with management confident in sufficient financial resources for current operations and future expansion[91] - Gearing ratio significantly increased from 20.5% (end of 2021) to 44.9% (end of 2022), primarily due to the recognition of substantial lease assets and liabilities from master lease projects[314] - The Board resolved to change the use of IPO proceeds, reallocating approximately 55% originally planned for acquisitions to lease fees and renovations under the master lease service model[68] Consolidated Financial Statements This section presents the company's consolidated financial statements, detailing its financial performance, position, and key accounting notes. Consolidated Statement of Profit or Loss and Other Comprehensive Income In 2022, revenue decreased to RMB 561.9 million, gross profit declined, and profit before tax fell to RMB 208.3 million, resulting in a 19.1% decrease in profit for the year. Consolidated Statement of Profit or Loss Summary (For the year ended December 31) | Item | 2022 (RMB thousands) | 2021 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 561,854 | 572,209 | | Gross Profit | 313,039 | 330,432 | | Profit Before Tax | 208,345 | 252,396 | | Profit for the Year | 148,882 | 183,922 | | Profit Attributable to Owners of the Company | 154,275 | 184,924 | | Basic Earnings Per Share (RMB cents) | 15.15 | 18.48 | Consolidated Statement of Financial Position As of December 31, 2022, total assets increased to RMB 2.142 billion, driven by investment properties, while total liabilities grew to RMB 961.1 million due to increased lease liabilities. Consolidated Statement of Financial Position Summary (As at December 31) | Item | 2022 (RMB thousands) | 2021 (RMB thousands) | | :--- | :--- | :--- | | Assets | | | | Non-current Assets | 818,905 | 112,029 | | Current Assets | 1,322,952 | 1,320,317 | | Total Assets | 2,141,857 | 1,432,346 | | Liabilities | | | | Current Liabilities | 292,821 | 230,343 | | Non-current Liabilities | 668,333 | 63,354 | | Total Liabilities | 961,154 | 293,697 | | Total Equity | 1,180,703 | 1,138,649 | Notes to the Financial Statements (Excerpts) These notes detail the company's accounting policies, revenue breakdown, dividend distributions, and changes in trade receivables and credit loss provisions. Revenue by Operating Model Category | Operating Model | 2022 (RMB thousands) | 2021 (RMB thousands) | | :--- | :--- | :--- | | Entrusted Management Services | 381,701 | 351,650 | | Brand and Management Output Services | 137,904 | 198,495 | | Master Lease Services | 42,249 | 22,064 | | Total | 561,854 | 572,209 | - Total dividends distributed in 2022 amounted to RMB 118.0 million, comprising the 2022 interim dividend and 2021 final dividend[151] - Trade receivables increased from RMB 29.14 million in 2021 to RMB 32.66 million in 2022, with credit loss provisions significantly rising from RMB 18.39 million to RMB 38.89 million[153] Other Company Information This section covers the company's dividend policy, share repurchase activities, and adherence to corporate governance standards, including the review of annual results. Dividend Policy and Arrangements The Board proposed a final dividend of HKD 0.07 per share for 2022, subject to AGM approval on June 8, 2023, with specific share transfer registration suspension dates. - The Board proposed a final dividend of HKD 0.07 per ordinary share[342] - The Annual General Meeting is scheduled for June 8, 2023[320] - Share transfer registration will be suspended from June 5 to 8, 2023 for AGM attendance eligibility, and from June 15 to 16, 2023 for final dividend entitlement[73][344] Share Repurchases In 2022, the company repurchased 915,000 shares for approximately HKD 1.35 million, subsequently cancelled to enhance shareholder value. 2022 Share Repurchase Details | Repurchased Shares | Total Consideration (net of expenses) | Repurchase Month | Cancellation Date | | :--- | :--- | :--- | :--- | | 915,000 shares | Approximately HKD 1.35 million | November 2022 | January 17, 2023 | Corporate Governance and Performance Review The company maintains high corporate governance standards, with directors complying with securities trading codes, and the audit committee, along with Deloitte, reviewing annual results. - The company has adopted and complied with the Model Code for Securities Transactions by Directors under the Listing Rules[322] - The company's Audit Committee has reviewed the annual results[325] - Auditor Deloitte confirmed that the financial data in the preliminary announcement aligns with the audited consolidated financial statements[78]