Leysen(SH:603900)2024-04-18 10:24Financial Performance - The company's operating revenue for the reporting period was ¥732.82 million, a decrease of 19.69% compared to ¥912.46 million in the previous year[25]. - The company's net profit attributable to shareholders was -¥76.20 million, compared to -¥38.26 million in the previous year, indicating a worsening financial performance[25]. - The company experienced a significant decline in cash flow from operating activities, with a net cash flow of -¥89.13 million compared to ¥220.03 million in the previous year[25]. - The company's revenue for jewelry reached ¥718,509,403.39, a decrease of 19.84% compared to the previous year, with a gross margin of 53.65%, down by 1.54 percentage points[32]. - Diamond jewelry sales amounted to ¥567,757,849.19, reflecting a significant decline of 31.34% year-on-year, while the gross margin increased by 1.55 percentage points to 56.62%[32]. - Direct sales revenue reached ¥615,938,953.73, a decrease of 18.54% compared to the previous year, with a gross margin of 55.99%, down by 1.45 percentage points[147]. - Franchise sales revenue was ¥59,439,746.94, down 37.78% year-on-year, with a gross margin of 33.12%, a decrease of 5.27 percentage points[147]. - Online sales revenue totaled ¥43,130,702.72, a slight decline of 3.42% year-on-year, with a gross margin of 48.46%, down by 4.57 percentage points[147]. - The net profit attributable to the parent company for 2023 was ¥-76,198,098.23, with a proposed cash dividend of ¥0.10 per share[160]. - The company's net assets attributable to shareholders decreased by 3.33% to RMB 2,125,385,685.41 in 2023 from RMB 2,198,568,451.36 in 2022[186]. - The basic earnings per share for 2023 was -0.22 yuan, compared to -0.11 yuan in 2022[189]. Market and Product Development - The company launched the "Chuan Shi Jin" series, which has gained significant consumer popularity, contributing to brand awareness and positioning[3]. - The company achieved over 100 million brand exposure through various media channels, including social media and outdoor advertising, by appointing Qin Lan as the brand ambassador[3]. - The company reported a 13.3% year-on-year growth in the gold and silver jewelry retail sector in China, with gold consumption increasing by 8.78%[8]. - The company expanded its product offerings by introducing new categories such as pearls and jade to meet diverse consumer demands[3]. - The company has initiated the expansion of its gold product retail business during the reporting period[27]. - The company focuses on enhancing its brand through unique craftsmanship and classic series iterations, leveraging its core advantages in royal IP[151]. - The company is focused on product innovation and brand differentiation to strengthen its competitive edge in the jewelry market[105]. - The company plans to optimize its product structure and streamline product SKUs to manage the risk of large inventory levels due to its expansion into the gold business[110]. Marketing and Customer Engagement - The company has established a marketing matrix focusing on young consumers, collaborating with brands like ROSEONLY and Keep to enhance brand interaction[5]. - The company plans to implement three new OKRs for 2024: "Direct store effect multiplication," "Franchise return to growth track," and "Online business index growth"[97]. - The company aims to open 30 new franchise stores to restore franchise business to a stable development phase[103]. - The company will enhance its online business by launching several high-value products and leveraging live streaming to increase sales conversion rates[100]. - The company will optimize franchise policies to boost franchisee confidence and improve gold sales performance[101]. - The company is focused on enhancing market responsiveness and product quality to create a better customer experience and increase product repurchase rates[110]. - The company focused on enhancing customer experience by creating new store themes and providing rich interactive spaces[199]. - The company utilized young social platforms for innovative brand marketing strategies[200]. Operational Efficiency and Management - The company has implemented a new performance innovation mechanism (OKR) to enhance operational efficiency and agility[2]. - The company has maintained a reasonable governance structure and operates independently from its controlling shareholder, ensuring no interference in decision-making and operational activities[127]. - The company has a strong commitment to protecting investors' rights and has established a sound governance framework in compliance with legal and regulatory requirements[120]. - The company has implemented measures such as increasing the design and R&D of gold products and innovating marketing strategies to improve profitability and inventory turnover[109]. - The company is actively managing inventory through refined management practices and optimizing its supply chain structure to align with market demand[110]. - The company has appointed Liu Jin as the financial head during the reporting period[139]. Financial Position and Assets - The total assets at the end of 2023 were RMB 2,402,811,992.51, down 6.08% from RMB 2,558,471,707.08 in 2022[186]. - The cash and cash equivalents at the end of the reporting period were ¥227,894,194.21, a decrease of 38.26% from the previous period[55]. - Inventory at the end of the period was 1,521,192,775.63, accounting for 63.31% of total assets, an increase of 5.13% compared to the previous period[59]. - Other current assets decreased by 39.57% to 42,586,788.65, primarily due to a reduction in receivable return costs[59]. - Deferred tax assets increased by 18.03% to 94,889,768.48, mainly due to deductible losses impacting income tax[59]. - Contract liabilities rose by 32.86% to 29,068,579.15, driven by an increase in advance payments[59]. - The net cash flow from investment activities was affected mainly by the timing differences in the purchase and redemption of entrusted financial management products[145]. Governance and Remuneration - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 7.0448 million yuan[138]. - The company’s board of directors and senior management remuneration is determined based on job responsibilities, performance, and company profitability[138]. - The remuneration for directors and supervisors is subject to approval by the shareholders' meeting[138]. - The compensation committee of the board proposed the remuneration for directors and senior management, which was reviewed and approved in a formal meeting[138]. - The company has no reported penalties from securities regulatory agencies in the past three years[141]. - The company’s independent directors do not concurrently hold senior management positions, ensuring a separation of duties[138]. - The company has a structured approach to remuneration that balances efficiency and fairness[138].