Performance and Market Conditions - The overall performance of Parkson improved compared to 2022, with the lifting of pandemic control measures in China contributing to a gradual return to normalcy in work and daily life [29]. - The global economic environment in 2023 posed multiple challenges, including inflation risks and geopolitical tensions, impacting overall market conditions [23]. - Parkson's management anticipates further recovery and growth opportunities as consumer confidence returns post-pandemic [29]. - The overall economy in PRC is still growing, with significant market growth potential despite uneven regional development and ongoing challenges [30]. Store Operations and Expansion - As of December 31, 2023, Parkson operated and managed 43 stores and 2 Parkson Newcore City Malls across 29 cities in China and Laos [9]. - The Group successfully opened two new Parkson shopping malls in 2023, expanding its presence in Jiangxi Province with a focus on "Multiple Stores in a City" and "Model Innovation" strategies [30]. - The Group plans to open two new stores in Mianyang City, Sichuan Province, with one supermarket expected to open in January 2024 and another store anticipated in 2026 [38]. - The Group plans to open its third store in Datong City by 2025, following a cooperation agreement with Datong Dezhiyuan Real Estate Development Co., Ltd. [45]. Financial Performance - The Group recorded gross sales proceeds of RMB10,093.9 million, an increase of 9.5% over last year, driven by increased rental income and a Same Store Sales (SSS) growth of 7.1% [30]. - The Group's net profit attributable to ordinary equity holders for 2023 was approximately RMB66,413,000, resulting in a basic earnings per share of RMB0.025 [43][46]. - Total gross sales proceeds (GSP) increased by 9.5% to RMB10,093.9 million in 2023, driven by a 72.0% increase in rental income and a 7.1% increase in same-store sales (SSS) [51][53]. - The Group's total operating revenues for 2023 were RMB4,177.49 million, with a profit from operations of RMB505.481 million [46]. Merchandise and Product Strategy - The company focuses on tailoring merchandise assortments and brand mixes on a store-by-store basis to better serve middle to middle-upper end consumers [10]. - Parkson offers a wide range of internationally renowned brands across four main categories: Fashion & Apparel, Cosmetics & Accessories, Household & Electrical, and Groceries & Perishables [10]. - The Group aims to diversify its income sources and explore various business models to drive sustainable development amidst ongoing market changes and competition [38]. - Total merchandise sales increased by RMB432.4 million or 5.9% to RMB7,791.2 million in 2023, with concessionaire sales rising by 8.5% while direct sales decreased by 0.5% [57]. Corporate Governance and Management - The Company has fully complied with the Corporate Governance Code (CG Code) for the year ended December 31, 2023 [157]. - The Board consists of 6 Directors, including 2 executive Directors, 1 non-executive Director, and 3 Independent non-executive Directors [151]. - The Company has adopted a Director Nomination Policy to maintain a diverse and skilled board of directors [110]. - The Company recognizes the importance of good corporate governance for its healthy growth [160]. Employee and Compensation Practices - The Group employed 3,826 employees as of December 31, 2023, ensuring compensation aligned with market standards [79]. - The remuneration for senior management (excluding directors) for the year ended December 31, 2023, includes 3 individuals earning between HK$1,000,001 and HK$2,000,000, 1 individual earning between HK$2,000,001 and HK$3,000,000, and 1 individual earning between HK$3,000,001 and HK$4,000,000 [112]. - The Company emphasizes a corporate culture based on dedication, integrity, team spirit, customer orientation, and mutual respect [171]. Risk Management and Financial Oversight - The Group's financial policies include measures to minimize exposure to interest rate fluctuations [82]. - The Audit Committee held four meetings during the year, reviewing the Group's quarterly, interim, and annual performance, as well as financial and risk management matters [91]. - The Company will continue to enhance its corporate governance practices to align with the growth of its businesses [157].
百盛集团(03368) - 2023 - 年度财报