首创钜大(01329) - 2022 - 年度业绩

Overall Performance Overview Consolidated Income Statement For the year ended December 31, 2022, the Group's revenue decreased by 16% year-on-year to RMB 1,124,138 thousand, and the annual loss expanded by 76% to RMB 393,269 thousand, primarily due to reduced rental income, goods and property sales, and lower net other gains, impacted by the pandemic Consolidated Income Statement Key Data (RMB '000) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Revenue | 1,124,138 | 1,341,049 | | Cost of Sales | (650,304) | (702,095) | | Gross Profit | 473,834 | 638,954 | | Operating Profit | 231,754 | 462,771 | | Loss Before Income Tax | (287,951) | (46,145) | | Loss for the Year | (393,269) | (223,947) | - Revenue decreased by 16%, primarily due to the impact of the COVID-19 pandemic, leading to a decline in investment property rental income, goods sales, and property sales revenue[159] - Operating profit decreased by 50%, mainly due to lower revenue and a 55% reduction in net other gains[160] Consolidated Statement of Comprehensive Income The Group's total comprehensive loss for 2022 significantly increased to RMB 396,578 thousand from RMB 207,077 thousand in 2021, primarily reflecting the expanded loss for the year Consolidated Statement of Comprehensive Income Key Data (RMB '000) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Loss for the Year | (393,269) | (223,947) | | Other Comprehensive Income/(Loss) for the Year | (3,309) | 16,870 | | Total Comprehensive Loss for the Year | (396,578) | (207,077) | Consolidated Statement of Financial Position As of December 31, 2022, the Group's total assets increased to RMB 19,810,293 thousand, total liabilities increased to RMB 15,416,818 thousand, with an increase in total current liabilities and a decrease in net current assets and total equity Consolidated Statement of Financial Position Key Data (RMB '000) | Metric | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total Non-current Assets | 15,452,783 | 15,155,753 | | Total Current Assets | 4,357,510 | 3,880,919 | | Total Assets | 19,810,293 | 19,036,672 | | Total Current Liabilities | 3,914,691 | 3,073,332 | | Total Non-current Liabilities | 11,502,127 | 11,173,287 | | Total Liabilities | 15,416,818 | 14,246,619 | | Total Equity | 4,393,475 | 4,790,053 | | Net Current Assets | 442,819 | 807,587 | Loss Per Share For the year ended December 31, 2022, diluted loss per share attributable to owners of the Company expanded to RMB 0.15 from RMB 0.09 in 2021, reflecting the increased loss for the year Loss Per Share (RMB) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | Diluted Loss Per Share | (0.15) | (0.09) | | Loss Attributable to Owners of the Company (RMB '000) | (393,288) | (224,346) | | Weighted Average Number of Ordinary Shares | 961,538,462 | 961,538,462 | - Potential ordinary shares were not included in the calculation of diluted loss per share as they had an anti-dilutive effect, thus diluted loss per share was the same as basic loss per share[81] Company and Group Information Company Profile and Business BC Grand Limited primarily engages in commercial property development in mainland China, focusing on the development, operation, and management of outlet integrated commercial projects and non-outlet retail properties, with its ultimate controlling shareholder being the state-owned enterprise Beijing Capital Group Co., Ltd - The Group is primarily engaged in commercial property development, focusing on the development, operation, and management of outlet integrated commercial projects and non-outlet retail property projects in mainland China[23] - The Company's ultimate holding company is Beijing Capital Group Co., Ltd., a state-owned enterprise established in China[34] - The Company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited, and the consolidated financial statements are presented in RMB[56] Basis of Preparation and Accounting Policies The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, using the historical cost convention and revaluing investment properties and derivative financial assets; despite a loss in 2022 and reduced net current assets, the Board believes the Group has sufficient financial resources based on cash flow forecasts to prepare the statements on a going concern basis - The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, on a historical cost basis, and are revised for the revaluation of investment properties and derivative financial assets measured at fair value[36] - For the year ended December 31, 2022, the Group recorded a loss attributable to owners of the Company of RMB 393,288,000 and net current assets of RMB 442,819,000[57] - The Board has reviewed the cash flow forecasts and believes the Group will have sufficient financial resources to meet its operations, thus preparing the consolidated financial statements on a going concern basis[57] Changes in Accounting Policies and Disclosures The Group first applied several new and revised Hong Kong Financial Reporting Standards, including those for onerous contracts and references to the Conceptual Framework, for the annual reporting period beginning January 1, 2022, and early adopted some amendments; these changes are not expected to have a significant impact on current or future periods - The Group first applied "Onerous Contracts – Cost of Fulfilling a Contract – Amendments to HKAS 37" and "Reference to the Conceptual Framework – Amendments to HKFRS 3" for the annual reporting period beginning January 1, 2022[58] - The Group also opted for early adoption of several amendments, including "Property, Plant and Equipment: Proceeds before Intended Use – Amendments to HKAS 16" and "Classification of Liabilities as Current or Non-current – Amendments to HKAS 1"[39][59] - The aforementioned amendments had no impact on amounts recognized in prior periods and are not expected to have a significant impact on the current or future periods[59] Operating Segment Information Segment Revenue and Operating Profit The Group's operating segments include property development, investment property development and operation, and sales of goods; in 2022, the investment property development and operation segment contributed the largest share of revenue, but all segments saw a decline in revenue and operating profit compared to 2021, with property development shifting from profit to loss - Management separately considers the performance of property development, investment property development and operation, and sales of goods[61] Segment Revenue (from external customers) and Operating Profit/(Loss) (RMB '000) | Segment | 2022 Revenue | 2021 Revenue | 2022 Operating Profit/(Loss) | 2021 Operating Profit/(Loss) | | :--- | :--- | :--- | :--- | :--- | | Property Development | 46,737 | 148,161 | (29,160) | 63,305 | | Investment Property Development and Operation | 866,835 | 914,088 | 335,333 | 430,634 | | Sales of Goods Inventory | 210,566 | 278,800 | 6,880 | 28,384 | | Other Segments | – | – | (77,726) | (73,166) | | Total | 1,124,138 | 1,341,049 | 235,327 | 449,157 | - All revenue from the property development segment and sales of goods inventory segment is recognized at a point in time from customer contracts[91] Segment Assets and Liabilities As of December 31, 2022, the Group's total segment assets increased to RMB 31,386,055 thousand, and total segment liabilities increased to RMB 15,753,975 thousand, with the investment property development and operation segment dominating both assets and liabilities Total Segment Assets and Liabilities (RMB '000) | Metric | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total Segment Assets | 31,386,055 | 28,991,528 | | Total Segment Liabilities | (15,753,975) | (13,698,196) | - Total segment assets exclude cash and cash equivalents, restricted cash, amounts due from related parties, deferred income tax assets, investments accounted for using the equity method, and derivative financial assets, which are centrally managed[62] - Total segment liabilities exclude borrowings, amounts due to non-controlling interests, deferred income tax liabilities, outlet plans, and senior asset-backed securities plans, which are centrally managed[62] Detailed Financial Performance Revenue, Other Gains and Other Income For 2022, the Group's total revenue was RMB 1,124,138 thousand, a 16% year-on-year decrease, mainly due to reduced investment property rental income, sales of goods, and property sales; net other gains and other income also declined, with a decrease in fair value gains on investment properties Revenue Sources (RMB '000) | Revenue Source | 2022 | 2021 | | :--- | :--- | :--- | | Investment Property Rental Income | 866,835 | 914,088 | | Sales of Goods | 210,566 | 278,800 | | Sales of Properties | 46,737 | 148,161 | | Total Revenue | 1,124,138 | 1,341,049 | Other Gains – Net and Other Income (RMB '000) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Other Gains – Net | | | | Fair Value Gains on Investment Properties | 81,075 | 124,900 | | Government Grants | 13,153 | 51,772 | | Exchange (Losses)/Gains – Net | (11,800) | 17,279 | | Net Impairment Losses on Financial and Contract Assets | (1,440) | (5,697) | | Others | 4,750 | 3,289 | | Other Income | | | | Temporary Lease Income | 17,366 | 23,361 | | Interest Income | 8,227 | 13,614 | | Others | 1,929 | 2,958 | - Revenue from the Group's external customers primarily originated from mainland China, with no single customer accounting for more than 10% of total revenue[71][74] Expenses by Nature For 2022, the Group's total expenses decreased to RMB 1,005,644 thousand from RMB 1,109,754 thousand in 2021, with major items including direct operating expenses from property management and other property-related services, cost of goods sold, and employee benefit expenses; a new inventory impairment of RMB 26,196 thousand was recognized this year Expenses by Nature (RMB '000) | Expense Item | 2022 | 2021 | | :--- | :--- | :--- | | Cost of Properties Sold | 31,130 | 80,317 | | Direct Operating Expenses from Property Management and Other Property-Related Services | 273,875 | 245,633 | | Cost of Goods Sold | 194,229 | 235,381 | | Employee Benefit Expenses | 194,178 | 211,450 | | Business Tax and Other Surcharges | 89,561 | 90,709 | | Depreciation and Amortization | 59,626 | 73,466 | | Advertising and Marketing | 60,502 | 90,211 | | Office and Travel Expenses | 41,833 | 45,184 | | Consultancy Fees | 15,698 | 19,557 | | Depreciation Expense for Right-of-Use Assets | 8,351 | 7,149 | | Auditor's Remuneration | 2,851 | 3,135 | | Impairment of Inventories | 26,196 | – | | Others | 7,614 | 7,312 | | Total | 1,005,644 | 1,109,754 | - Cost of properties sold in 2022 was adjusted by RMB 15,069,000 due to the final agreement with contractors on actual overall construction costs[76] Finance Costs For 2022, the Group's total finance costs slightly increased to RMB 509,225 thousand from RMB 502,962 thousand in 2021, primarily comprising interest expenses on bank and other financial institution borrowings and senior asset-backed securities plans, with a portion of interest costs capitalized Finance Costs (RMB '000) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Interest Expense on Bank and Other Financial Institution Borrowings | 307,750 | 289,227 | | Interest Expense on Outlet Plans | 23,221 | – | | Interest Expense on Senior Asset-Backed Securities Plans | 297,140 | 232,016 | | Interest Expense on Lease Liabilities | 737 | 771 | | Reclassification from Cash Flow Hedge Reserve | (19,388) | 46,018 | | Reclassification from Hedge Reserve Cost | 17,922 | 8,170 | | Ineffective Portion of Cash Flow Hedges | 2,903 | 4,959 | | Net Fair Value Loss/(Gain) on Derivative Financial Instruments | – | 48,749 | | Interest Expense on Guaranteed Notes | – | – | | Total | 630,285 | 629,910 | | Less: Interest Capitalized | (121,060) | (126,948) | | Finance Costs Presented in Consolidated Income Statement | 509,225 | 502,962 | - For the year ended December 31, 2022, the capitalization rate was 5.54% (2021: 5.40%), and capitalized finance costs related to investment properties and properties under development[77] Income Tax Expense For 2022, the Group's income tax expense decreased to RMB 105,318 thousand from RMB 177,802 thousand in 2021, primarily comprising PRC corporate income tax, land appreciation tax, and deferred income tax; PRC subsidiaries are subject to corporate income tax at a rate of 25% Income Tax Expense (RMB '000) | Item | 2022 | 2021 | | :--- | :--- | :--- | | Current Income Tax: | | | | - PRC Corporate Income Tax | 6,315 | 37,399 | | - PRC Land Appreciation Tax | 2,554 | 21,665 | | Deferred Income Tax | 96,449 | 118,738 | | Total Tax Expense for the Year | 105,318 | 177,802 | - Provision for PRC corporate income tax has been made at a rate of 25% on the estimated assessable profits of the Group's PRC subsidiaries for the year[78] - No provision for Hong Kong profits tax has been made as the Group had no assessable profits arising in Hong Kong for the year[99] Dividend Policy The Company neither paid nor declared any dividends for the years 2022 and 2021 - The Company did not pay or declare any dividends during the year (2021: Nil)[100] Detailed Assets and Liabilities Trade and Other Receivables and Prepayments As of December 31, 2022, the Group's current portion of trade and other receivables and prepayments was RMB 449,030 thousand, a decrease from 2021; trade receivables primarily arose from investment property rental income, with credit terms generally ranging from 1 to 3 months Trade and Other Receivables and Prepayments (RMB '000) | Item | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Trade Receivables Arising from Contracts with Customers | 72,444 | 65,157 | | Less: Impairment Provision for Trade Receivables | (1,626) | (572) | | Net Trade Receivables | 70,818 | 64,585 | | Prepayments to Related Parties | 16,161 | 13,516 | | Prepayments for Goods Inventory | 79,458 | 79,549 | | Other Prepayments | 23,003 | 24,806 | | Input VAT to be Deducted and Other Prepaid Taxes | 131,794 | 354,859 | | Other Deposits | 7,472 | 10,264 | | Amounts Due from Related Parties | 73,741 | 74,342 | | Other Receivables | 86,213 | 61,703 | | Less: Impairment Provision for Other Receivables | (10,707) | (10,321) | | Total | 477,953 | 673,303 | | Less: Non-current Portion – Input VAT to be Deducted | (28,923) | (35,644) | | Current Portion | 449,030 | 637,659 | - Trade receivables primarily arise from investment property rental income, with credit terms for tenants generally ranging from 1 to 3 months[127] Ageing Analysis of Trade Receivables (RMB '000) | Ageing | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Within 3 months | 72,444 | 65,157 | Other Payables and Accrued Expenses As of December 31, 2022, the Group's current portion of other payables and accrued expenses was RMB 363,653 thousand, a slight decrease from 2021, with senior asset-backed securities plans and outlet plans being major components Other Payables and Accrued Expenses (RMB '000) | Item | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Other Taxes Payable | 41,463 | 58,119 | | Employee Benefits Payable | 3,772 | 1,773 | | Other Payables and Accrued Expenses to Related Parties | 6,015 | 16,373 | | Amounts Due to Non-controlling Interests | 118,225 | 118,225 | | Interest Payable | 1,364 | 5,708 | | Senior Asset-Backed Securities Plan | 5,291,529 | 5,286,574 | | Deposits Received | 139,330 | 126,755 | | Outlet Plan | 667,489 | – | | Amounts Collected and Paid on Behalf of Customers | 5,681 | 4,373 | | Prepaid Rental Income from Merchants | 35,199 | 34,828 | | Others | 12,604 | 11,032 | | Total | 6,322,671 | 5,663,760 | | Less: Non-current Portion – Senior Asset-Backed Securities Plan and Outlet Plan | (5,959,018) | (5,286,574) | | Current Portion | 363,653 | 377,186 | - On December 9, 2019, the Group issued the Zhonglian Yichuang - BC Grand Outlet No. 1 Phase I Asset-Backed Special Plan, with a total issuance of RMB 3,579,000,000, comprising senior asset-backed securities (RMB 2,700,000,000 at an annual interest rate of 5.2% for five years) and subordinated asset-backed securities (RMB 879,000,000 with no fixed coupon rate)[85][105] - On May 28, 2021, the Group issued the Zhonglian ShouChuang Securities - BC Grand Outlet Phase II Asset-Backed Special Plan, with a total issuance of RMB 3,268,000,000, comprising senior asset-backed securities (RMB 2,600,000,000 at an annual interest rate of 5.05% for three years) and subordinated asset-backed securities (RMB 668,000,000 with no fixed coupon rate)[4][106][129] - On April 27, 2022, the Group issued the China Life Investment - BC Grand Outlet Phase I Asset-Backed Plan, with an issued principal of RMB 670,000,000 at a fixed coupon rate of 4.85% for three years[86][130][164] Trade Payables As of December 31, 2022, the Group's total trade payables were RMB 1,835,198 thousand, a decrease from 2021; trade payables are non-interest bearing and repayable within the normal operating cycle or on demand Ageing Analysis of Trade Payables (RMB '000) | Ageing | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Within 1 year | 1,232,800 | 1,526,672 | | 1 to 2 years | 425,082 | 338,555 | | 2 to 3 years | 80,869 | 132,495 | | Over 3 years | 96,447 | 13,204 | | Total | 1,835,198 | 2,010,926 | - Trade payables are non-interest bearing and repayable within the normal operating cycle or on demand[88] - As of December 31, 2022, there were no trade payables due to related parties (2021: RMB 8,599,000)[131] Share Capital and Convertible Securities The Group's share capital structure includes ordinary shares, Class A and Class B convertible preference shares, and perpetual convertible securities, all classified as equity as the Company has no contractual obligation to redeem them Share Capital As of December 31, 2022, the Company's total issued and fully paid share capital was RMB 16,732 thousand, comprising ordinary shares, Class A convertible preference shares, and Class B convertible preference shares, consistent with 2021 Issued and Fully Paid Share Capital (RMB '000) | Share Class | Number of Shares 2022 | Number of Shares 2021 | Amount 2022 | Amount 2021 | | :--- | :--- | :--- | :--- | :--- | | Ordinary Shares | 961,538,462 | 961,538,462 | 7,828 | 7,828 | | Class A Convertible Preference Shares | 166,976,636 | 166,976,636 | 1,329 | 1,329 | | Class B Convertible Preference Shares | 905,951,470 | 905,951,470 | 7,575 | 7,575 | | Total | 2,034,466,568 | 2,034,466,568 | 16,732 | 16,732 | Convertible Preference Shares The Company issued Class A and Class B convertible preference shares, both non-redeemable with no maturity date; holders can convert them into ordinary shares and have equal dividend rights as ordinary shareholders, but with priority distribution rights upon liquidation, and Class B preference shares also have non-cumulative preferential distribution rights - Class A convertible preference shares are non-redeemable and have no maturity date; holders can convert them into ordinary shares at any time for zero consideration and enjoy dividend rights equal to those of ordinary shareholders[110][134][135] - Class B convertible preference shares are also non-redeemable and have no maturity date; holders can convert them into ordinary shares at any time for zero consideration and enjoy a non-cumulative preferential distribution right calculated at an annual interest rate of 0.01%[113][137][138] - Both Class A and Class B convertible preference shares do not confer voting rights at general meetings, except in cases involving liquidation or changes to their rights, and they have priority distribution rights upon company liquidation[111][114][136][140] Perpetual Convertible Securities The Company issued perpetual convertible securities with no fixed maturity date, redeemable by the Company at its discretion 30 years after the issue date; holders can convert them into ordinary shares at an initial conversion price of HKD 2.10 per share, and are entitled to non-cumulative interest at an annual rate of 0.01%, plus additional floating interest when ordinary shares pay dividends - Perpetual convertible securities have no fixed maturity date, and the Company may, at its sole discretion, choose to redeem them at any time from the 30th anniversary of the issue date[141] - Holders can convert perpetual convertible securities into a maximum of 513,185,911 new ordinary shares at an initial conversion price of HKD 2.10 per share[141] - Holders of perpetual convertible securities are entitled to receive interest at an annual rate of 0.01%, and when ordinary shares pay dividends, additional floating interest must be paid in the same form[116] Commitments and Guarantees Capital Commitments As of December 31, 2022, the Group's total capital commitments contracted but not provided for amounted to RMB 388,023 thousand, primarily related to properties under development, with capital commitments for investment properties reduced to zero Capital Commitments (RMB '000) | Item | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Properties Under Development | 388,023 | 423,204 | | Investment Properties | – | 51,977 | | Total | 388,023 | 475,181 | Financial Guarantees As of December 31, 2022, the Group provided financial guarantees for mortgage loans arranged by certain banks for property buyers, amounting to approximately RMB 702,104 thousand, an increase from 2021; in case of buyer default, the Group is liable to repay the outstanding mortgage principal and related fees Financial Guarantee Amounts (RMB '000) | Item | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Mortgage Financing for Certain Property Buyers of the Group | 702,104 | 603,605 | - Under the terms of the guarantees, if a buyer defaults on mortgage loans during the guarantee period, the Group is liable to repay the outstanding mortgage principal, accrued interest, and penalties owed to the bank by the defaulting buyer, while also having the right to take over the legal title and ownership of the relevant property[119] Asset Pledges As of December 31, 2022, the Group's total pledges of investment properties and land use rights arising from borrowings amounted to RMB 3,586,865 thousand, an increase from 2021 Total Asset Pledges (RMB '000) | Item | Dec 31, 2022 | Dec 31, 2021 | | :--- | :--- | :--- | | Total Pledges of Investment Properties and Land Use Rights | 3,586,865 | 2,873,260 | Contingent Liabilities As of December 31, 2022, the Group had no significant contingent liabilities - As of December 31, 2022, the Group had no significant contingent liabilities[167][208] Management Discussion and Analysis Macroeconomic and Industry Overview In 2022, China's GDP reached RMB 121 trillion, growing by 3% year-on-year, with per capita GDP exceeding USD 12,000, demonstrating economic resilience; however, the complex international environment, slowing global economic growth, and significant impact of the pandemic on the domestic consumer market led to decreased consumer willingness; looking ahead to 2023, with epidemic prevention entering a new phase and pro-consumption policies implemented, the domestic consumer market is expected to steadily recover - In 2022, China's GDP reached RMB 121 trillion, a year-on-year increase of 3%; per capita GDP reached RMB 85,698, equivalent to USD 12,741 at the average annual exchange rate[150] - The domestic consumer market was significantly affected by short-term pandemic disruptions, with restricted group and contact-based consumption, leading to decreased consumer willingness and a 0.2% year-on-year decline in total retail sales of consumer goods for the full year[173] - The state continues to introduce medium-to-long-term measures to boost consumption, such as the "Outline of the Strategic Plan for Expanding Domestic Demand (2022-2035)", with China's economy expected to improve overall in 2023, driving an increase in residents' consumption capacity and willingness[124][151] Business Review In 2022, the Group's business was severely impacted by the pandemic, leading to store closures, reduced foot traffic, and lower sales across multiple outlet projects; to address these challenges, the Group actively innovated marketing, strengthened member operations, expanded online channels, successfully opened the Xiamen Outlet project, and now all 15 self-owned outlet projects are operational; additionally, the Group successfully established asset-backed plans, attracting insurance capital, and achieved successful exits for entrusted management projects - For the full year 2022, foot traffic was 39.07 million visits, a year-on-year decrease of approximately 20%; full-year sales amounted to RMB 8.198 billion, a year-on-year decrease of approximately 18%[153] - The Group supported merchants through difficulties, providing rent reductions of approximately RMB 35 million[175] - The membership system was upgraded and revamped, leading to a significant 24% year-on-year increase in total members, with online sales of approximately RMB 30 million[154][155][177] - The Xiamen Outlet project made a splendid debut, and as of the end of 2022, all 15 of the Group's self-owned outlet projects were operational[156][179] - In collaboration with China Life Investment Holding Company Limited, the Group successfully established the "China Life Investment - BC Grand Outlet Phase I Asset-Backed Plan," opening a new channel for insurance capital to serve the real economy[156][180] Future Development and Outlook The Group will closely follow national policies, deepen its transformation from a real estate enterprise to a retail enterprise, and strengthen its "profit-centric" and "customer-centric" business philosophies; future focus will be on enhancing investment attraction, operations, digitalization, and innovation capabilities, enriching consumption scenarios, strengthening private domain traffic operations, and steadily advancing a light-asset strategic layout to consolidate its industry-leading position - Deepen the transformation and upgrade from a real estate enterprise to a retail enterprise, strengthening the "profit-centric" and "customer-centric" business philosophies[184] - Emphasize a shopping experience of "big brands, small prices, good service," enrich consumption scenarios, and explore integrating empowering business formats such as the pet economy, outdoor social activities, trendy home furnishings, and tea/coffee lifestyle into outlet operations[157] - Continuously strengthen private domain traffic operations, complete the transformation from an online mall to a member mall, build online retail channels, and expand the number of active members[157] - Steadily advance a light-asset strategic layout, adopting diversified approaches such as management output, overall leasing, and equity cooperation to achieve diversified revenue growth and consolidate its industry-leading position[158] Financial Review The Group's 2022 financial performance was significantly impacted by the pandemic, with substantial declines in revenue and operating profit, and an expanded annual loss; despite this, cash and cash equivalents increased, but the net gearing ratio rose; the Group actively financed through asset-backed plans and managed foreign exchange risks Revenue and Operating Results In 2022, the Group's