Financial Performance - Total retail sales (including leasing merchants) reached RMB 13,926.3 million[1] - Sales revenue amounted to RMB 7,402.8 million, a year-on-year decrease of 6.7%[1] - The company recorded a net loss of RMB 78.2 million, a year-on-year decline of 138.1%[1] - Excluding the impairment impact on the associate company, net profit for the year was RMB 72.3 million[1] - Basic loss per share for the year was RMB 1.9 cents, with a proposed final dividend of HKD 0.75 per share[1] - Total revenue for the year ended December 31, 2023, was RMB 5,306,289 thousand, a decrease from RMB 5,395,975 thousand in 2022, representing a decline of approximately 1.65%[39] - Operating profit for the year was RMB 997,289 thousand, compared to RMB 1,510,410 thousand in the previous year, indicating a decrease of about 34%[39] - The company reported a net profit of RMB 381,546 thousand for 2023, down from RMB 630,724 thousand in 2022, reflecting a decline of approximately 39.5%[39] Revenue and Income Sources - Total rental income increased to RMB 1,124.2 million, up 6.9% year-on-year[1] - Revenue from direct sales in 2023 was RMB 1,512,516 thousand, slightly up from RMB 1,502,247 thousand in 2022, showing a growth of about 0.18%[43] - Property sales revenue decreased significantly to RMB 464,366 thousand in 2023 from RMB 787,638 thousand in 2022, a decline of approximately 41%[43] - Total other income for 2023 reached RMB 1,125,475,000, an increase of 7.6% from RMB 1,046,285,000 in 2022[49] - The breakdown of revenue sources showed that franchise sales accounted for 69.1%, direct sales for 17.7%, and rental income for 13.2%[89] - Franchise sales totaled RMB 5,890.2 million, down 8.5% from 2022, while direct sales increased by 0.7% to RMB 1,512.5 million, and rental income rose by 6.9% to RMB 1,124.2 million[89] Expenses and Costs - The total cost of sales for the year was RMB 1,850,950 thousand, compared to RMB 1,850,950 thousand in 2022, indicating stable cost management[40] - Employee expenses totaled RMB 414,298,000 in 2023, a decrease of 8.8% compared to RMB 454,586,000 in 2022[49] - Financing costs amounted to RMB 965,288,000 in 2023, down 8.1% from RMB 1,050,310,000 in 2022[51] - Depreciation and amortization expenses were RMB 990.1 million, down 5.6% from RMB 1,049.2 million in 2022[101] - Other operating expenses rose by 3.1% to RMB 1,041.8 million, reflecting increased utility costs as operations normalized post-COVID[103] Assets and Liabilities - Non-current assets totaled RMB 37,511.3 million, down from RMB 38,516.9 million in 2022[9] - Total equity amounted to RMB 15,922.5 million, a decrease from RMB 16,338.1 million in 2022[11] - As of December 31, 2023, the group's current liabilities net amount is approximately RMB 6,232,484,000[14] - The total amount of trade payables as of December 31, 2023, was RMB 1,458,160,000, a decrease from RMB 1,600,620,000 in 2022[62] - The group’s total bank borrowings amounted to RMB 11,797.2 million as of December 31, 2023, down from RMB 12,864.3 million in 2022[136] Future Outlook and Strategy - The group expects to generate cash inflows from operating activities in 2024, which will support its ability to repay maturing debts[14] - The group expects stable recovery growth in 2024, driven by fiscal expansion and monetary easing policies[65] - The group plans to continue optimizing operations and management to capitalize on the recovery of the retail industry in 2024[84] - The group is actively pursuing a diversified and cross-regional development strategy to strengthen its core competitiveness[84] Operational Highlights - The group operated 49 stores across 21 cities in China as of December 31, 2023, with a total building area of approximately 3.1 million square meters[67] - The "Maoyuehui" membership management system added 1.09 million new members in 2023, bringing the total to 17.9 million, with total member spending reaching RMB 4.25 billion[79] - Online sales across all platforms reached RMB 540 million in 2023, with over 2 million visitors attracted through the "Maolehui" WeChat mini-program[77] - The group achieved a 27.6% increase in rental income at the Huaqiangbei store during the reporting period, driven by the ongoing strategy of transitioning from joint operations to leasing[72] - The group's hotel business revenue grew by 50.8% year-on-year, reaching a historical high in 2023[80] Financial Reporting and Standards - The financial statements are prepared in accordance with International Financial Reporting Standards and reflect historical cost accounting[14] - The group has adopted new and revised International Financial Reporting Standards during the year, with no significant impact on the financial statements[22] - The group has not yet applied certain revised International Financial Reporting Standards that have been issued but are not yet effective[26] - The company is currently evaluating the impact of the amendments to IFRS 10 and IAS 28 regarding the treatment of asset sales or contributions between investors and their associates or joint ventures, with no significant impact expected on the financial statements[27]
茂业国际(00848) - 2023 - 年度业绩