Financial Performance - The company's total sales revenue for the fiscal year 2023 was approximately RMB 981.6 million, representing a year-on-year increase of 2.5% compared to RMB 957.6 million in fiscal year 2022[11]. - Gross profit for the fiscal year 2023 was approximately RMB 258.9 million, an increase of RMB 11.6 million or 4.7% from RMB 247.3 million in fiscal year 2022, with a gross margin of 26.4%, up 0.6 percentage points from 25.8%[11]. - The company recorded a net loss attributable to shareholders of approximately RMB 2.0 million in fiscal year 2023, compared to a net loss of RMB 1.4 million in fiscal year 2022, representing an increase in net loss of RMB 0.6 million[11]. - The company reported a significant increase in EBITDA of 19.5%, reaching RMB 91.9 million in fiscal year 2023 compared to RMB 76.9 million in fiscal year 2022[20]. - Distribution and selling expenses decreased by approximately 11.7% to RMB 123.3 million in 2023 from RMB 139.6 million in 2022, accounting for 12.6% of total revenue[36]. - Administrative expenses rose by approximately 11.8% to RMB 137.2 million in 2023 from RMB 122.7 million in 2022, representing 14.0% of total revenue[37]. - The fair value loss on investments was approximately RMB 31.4 million in 2023, a slight decrease from RMB 33.6 million in 2022, due to ongoing impacts from the COVID-19 pandemic[38]. - The group has maintained a strong financial position with cash and bank balances of RMB 520.7 million as of December 31, 2023, compared to RMB 502.1 million in 2022, and bank loans of RMB 292.3 million, up from RMB 228.0 million in 2022[60]. - Total equity decreased by approximately 2.7% to RMB 1,201.3 million as of December 31, 2023, from RMB 1,234.7 million in 2022[81]. Operational Efficiency - The company has completed the construction of new production bases in five different regions of China, enhancing production capacity and environmental efficiency to support long-term development[24]. - The total energy consumption increased by 5.0% in 2023, primarily due to higher automation levels and extended operation times of air conditioning systems at the new production base[48]. - Water consumption density increased by 11.4% year-on-year, mainly due to wastage from aging water pipes and increased cleaning frequency at the new production base[48]. - The company plans to improve packaging efficiency and reduce material consumption through various initiatives, including upgrading printing devices and packaging equipment[33]. - The group is focused on optimizing resources, constructing new plants, and upgrading equipment to enhance production capacity and efficiency for long-term development[79]. - The group aims to enhance the automation of production facilities to reduce the impact of rising labor costs, collaborating with foreign equipment companies to introduce advanced production lines for jelly and puffed products[58]. Environmental and Sustainability Initiatives - The company aims to mitigate the impact of climate change on agricultural productivity by investing in environmentally friendly equipment and production processes[13]. - In 2023, the total amount of plastic packaging used increased by 30.3% to 10,667.35 tons compared to 8,187.02 tons in 2022, driven by higher sales of pudding and rice wine products[31]. - The density of plastic used per unit increased by 33.3% year-on-year, attributed to the rise in sales of products packaged in plastic bowls and cups[31]. - The company has implemented monthly and annual assessments of material consumption standards to reduce waste, linking performance directly to employee compensation[30]. Market Strategy and Growth - The company aims to expand its distribution network by entering new sales channels such as snack brand stores, convenience stores, and gas stations, resulting in significant sales increases from these new outlets[43]. - The group continues to collaborate with new retailers such as Alibaba, JD.com, and Pinduoduo to develop new retail channels, aiming for future profitability growth[77]. - The group is focusing on expanding its market presence in first- and second-tier cities through e-commerce and convenience stores, promoting products like "Coffee Circle" and "Chocolate Circle"[56]. - The group plans to continue developing new snack products, including candies, chocolates, and baked goods, focusing on health-conscious options to meet changing consumer preferences[55]. - The group adjusted its e-commerce strategy to reduce sales of low-margin products and increase the proportion of high-margin self-produced products, improving overall gross margin and net profit margin[77]. Corporate Governance - The company emphasizes the importance of high standards of corporate governance to manage business risks and enhance transparency[102]. - The board of directors is responsible for overall management, including business strategy, internal controls, and risk management[107]. - The company has adopted a corporate governance policy in accordance with the Hong Kong Stock Exchange's rules, ensuring compliance with all governance code provisions for the year ending December 31, 2023[124]. - The company has established a risk management framework to ensure that relevant risks are effectively controlled within the group's risk appetite[170]. - The board consists of 11 members, including four independent non-executive directors, contributing to rigorous oversight and monitoring of management procedures[152]. - The company has established a mechanism for directors to seek independent professional advice to ensure strong board independence[132]. - The company has a shareholder communication policy to ensure timely and equal access to information for shareholders and potential investors[178]. Employee and Workplace Management - The company experienced a 61% employee turnover rate at the end of the reporting period, indicating potential challenges in workforce stability[17]. - The company focuses on employee development, workplace safety, and sustainable practices to attract and retain talent[103]. - The group has approximately 2,500 employees as of December 31, 2023, down from 2,600 in 2022, with total employee benefits expenses around RMB 209.0 million[85]. Dividend and Capital Expenditure - The board does not recommend the declaration of a final dividend for the year ended December 31, 2023, consistent with the previous year[62]. - The total capital expenditure for new production facilities and improvements to existing facilities during the reporting period was approximately RMB 63.2 million[78]. - The group’s capital expenditure for 2023 was RMB 63.2 million, down from RMB 274.7 million in 2022, primarily for new production facilities and equipment in China[82].
亲亲食品(01583) - 2023 - 年度财报