Financial Performance - Revenue for 2023 was RMB 1,448,376, a decrease of 3.2% compared to RMB 1,496,977 in 2022[13]. - Gross profit margin improved to 69.2% in 2023 from 64.3% in 2022, an increase of 4.9 percentage points[13]. - Loss before tax significantly reduced to RMB (52,625) in 2023 from RMB (658,407) in 2022, a decrease of 92.0%[13]. - Loss attributable to owners of the Company decreased to RMB (50,475) in 2023 from RMB (645,398) in 2022, a reduction of 92.2%[13]. - Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) improved to RMB 7,429 in 2023 from RMB (302,727) in 2022, a change of 102.5%[13]. - Adjusted non-HKFRS earnings for the year were RMB 35,517 in 2023, compared to RMB (339,537) in 2022, reflecting a change of 110.5%[13]. - The Group recorded a loss from operations of RMB 21,323,000 in 2023, significantly improved from a loss of RMB 558,304,000 in 2022[76]. - The adjusted earnings before interest, tax, depreciation, and amortization improved to RMB 35,517,000 in 2023 from a loss of RMB 339,537,000 in 2022[76]. - The Group's total loss for the year was RMB 50,475,000 in 2023, a significant reduction from a loss of RMB 645,398,000 in 2022[77]. Assets and Liabilities - Current assets decreased by 21.5% to RMB 3,887,031, while total assets fell by 17.8% to RMB 5,395,014[14]. - The total liabilities decreased by 20.5% to RMB 4,386,124, while equity attributable to owners of the Company fell by 27.7% to RMB 1,021,330[14]. - As of December 31, 2023, the Group's cash and cash equivalents were approximately RMB 926,265,000, an increase from RMB 889,944,000 in 2022[102]. - The Group's borrowings as of December 31, 2023, were approximately RMB 470,444,000, down from RMB 480,986,000 in 2022[102]. - The gearing ratio as of December 31, 2023, was 8.7%, compared to 7.3% as of December 31, 2022, primarily due to a decrease in balances with the central bank[102]. Operational Efficiency - The average annual transaction volume per merchant increased by 33%, with medium-to-large merchants showing the most significant growth[17]. - The average renewal fee for the core customer group rose by 21%, particularly a 25% increase in the new retail business segment[17]. - Net cash inflow from operations was RMB 76,998,000, indicating strong operational performance despite market challenges[24]. - The company maintained high service efficiency while acquiring more medium-and large-sized offline customers, despite a wave of store closures among small and micro customers[24]. - The vibrancy rate of new customers across various segments improved, indicating positive renewal leading indicators for future revenue growth[18]. - In 2023, Youzan achieved an adjusted operating profit of RMB 35,517 thousand and a net operating cash inflow of RMB 76,998 thousand, maintaining high efficiency in sales and service despite challenges in the market[26]. Strategic Focus and Future Outlook - The Company is focusing on new product development and market expansion strategies to drive future growth[12]. - The management anticipates continued improvement in financial performance and operational efficiency in the upcoming year[12]. - The Company is exploring potential mergers and acquisitions to enhance its market position and capabilities[12]. - Future guidance indicates a commitment to achieving profitability and sustainable growth in the long term[12]. - Youzan aims to be among the first batch of profitable medium-sized enterprise service companies in China, achieving its business objectives for 2023[22]. - The company aims to exceed a manpower efficiency of 1 million per capita in 2024 through marketing innovation and better utilization of AI tools[32]. Product and Service Development - Youzan's new value positioning focuses on helping merchants with public domain content marketing, private domain operations, and intelligent solutions for sales transformation, marking the most significant upgrade in a decade[27][30]. - The retail industry in China has shifted from a traffic era to a customer operation era, with Youzan providing a comprehensive "intelligent consumer operation" system[28]. - The company plans to enhance its offerings from "digital software" for small and medium-sized merchants to "intelligent consumer operating systems" for brand retailers starting in 2024[31]. - Youzan's AI assistant (Copilot) and automation tools (Agent) are designed to improve operational efficiency and generate targeted business strategy suggestions for merchants[29]. - The company recognizes the growing need for digitalization, automation, and intelligence among enterprises, positioning itself as a key provider of these services[33]. Cost Management - Selling expenses decreased by 20.9% year-on-year, with the selling expense rate dropping to 45.4%[49][51]. - Administrative expenses went down by 47.1% year-on-year, with the administrative expense rate decreasing to 10.7%[49][51]. - The Group's cost of sales decreased by 16.6% to approximately RMB 446,231,000 in 2023 from RMB 535,055,000 in 2022, mainly due to a 15.8% reduction in transaction costs[68]. - Staff costs decreased by 24.2% to approximately RMB 119,312,000 in 2023, down from RMB 157,399,000 in 2022, due to organizational restructuring[68]. Leadership and Governance - Mr. Yu Tao has been appointed as the executive Director and CFO since May 2018, with a background in accounting and experience in financial planning and management[88]. - Ms. Ying Hangyan has served as the executive Director and chief service officer since May 2018, focusing on client services and organizational operations[88]. - The company has a strong leadership team with diverse backgrounds in finance, management, and client services, enhancing its operational capabilities[88][89][90][91]. - The management team has experience in both local and international markets, which is crucial for strategic decision-making and market expansion[88][89]. - The Board comprises seven Directors, including four executive Directors and three independent non-executive Directors, complying with GEM Listing Rules[195]. Shareholder Information - The Directors did not recommend the payment of any dividend for 2023, consistent with 2022[102]. - As of December 31, 2023, Mr. Zhu Ning holds a total interest of 7,433,532,082 shares, representing 22.54% of the company's shareholding[164]. - The total interests of directors and executives reflect a significant ownership concentration within the company[164]. - The company has a structured approach to reporting interests and positions in accordance with the Securities and Futures Ordinance[165]. Compliance and Regulations - The company has complied with the Corporate Governance Code during the year ended December 31, 2023, except for a deviation from code provision C.2.1[182]. - The Company has established five committees to assist the Board, including Audit, Risk, Nomination, Remuneration, and Inside Information Committees[192]. - The auditor issued an unqualified letter regarding the Group's continuing connected transactions, confirming compliance with relevant regulations[144].
有赞(08083) - 2023 - 年度财报