Company Operations and Market Presence - Lianhua Supermarket operates a total of 3,356 stores across 27 provinces and municipalities in China, maintaining its leading position in the fast-moving consumer goods retail sector [4]. - The company has expanded its retail formats to include large supermarkets, hypermarkets, and convenience stores, catering to diverse consumer needs [2]. - Lianhua Supermarket has been recognized as one of the "Outstanding Franchise Brands" by the China Chain Store & Franchise Association for several consecutive years [2]. - The company is actively developing rural markets, having opened new stores in rural areas of Chongming District, Shanghai, to meet local consumer needs [17]. - Lianhua Supermarket's total number of stores includes various formats, with significant presence in Shanghai, Jiangsu, and Zhejiang provinces [3]. - The company opened 337 new stores while closing 333 stores, indicating a cautious approach to store management amidst market changes [90]. - The supermarket segment, as the core development model, opened 299 new stores (93 direct-operated and 206 franchised) while closing 213 stores (39 direct-operated and 174 franchised), achieving a net increase of 86 stores [93][95]. - The convenience store segment opened 36 new stores (12 direct-operated and 24 franchised) but closed 104 stores (21 direct-operated and 83 franchised), resulting in a net decrease of 68 stores [95]. - As of the end of 2023, approximately 84.06% of the company's stores are located in the Greater East China region [94]. Financial Performance - In 2023, the company's revenue was RMB 21,835,879 thousand, a decrease of 11.5% compared to RMB 24,681,396 thousand in 2022 [48]. - The gross profit for 2023 was RMB 2,781,072 thousand, with a gross margin of 12.74%, down from 13.70% in 2022 [48]. - The company reported a net loss attributable to shareholders of RMB 791,317 thousand in 2023, compared to a loss of RMB 206,527 thousand in 2022, reflecting a significant increase in losses [48]. - The total assets of the company were RMB 20,989,143 thousand in 2023, a decrease from RMB 22,988,706 thousand in 2022 [51]. - The company reported a cash flow deficit of RMB 751,325 thousand in 2023, compared to a positive cash flow of RMB 1,005,489 thousand in 2022 [51]. - The average net asset loss rate was (169.16%) in 2023, indicating a significant decline in financial health compared to previous years [51]. - The company reported a pre-tax loss of approximately RMB 589 million, an increase in loss of about RMB 566 million year-on-year [64]. - The group reported a net loss attributable to shareholders of approximately RMB 791 million, compared to a loss of RMB 207 million in the previous year, representing an increase in loss of 283.2% [80]. Online Sales and E-commerce - Lianhua Supermarket achieved a two-digit growth in online sales, continuing to enhance its home delivery business and optimize post-sale processes [38]. - Online sales showed stable growth, increasing by 12% year-on-year [54]. - Online sales experienced double-digit growth, driven by enhanced online traffic conversion, improved product offerings, and optimized user experience [97][98]. - The company plans to enhance its e-commerce platform, expecting a 50% increase in online sales by the end of 2023 [150]. Community Engagement and Social Responsibility - Lianhua Supermarket has committed to providing 100,000 yuan annually to support local community projects in Yunnan Province [17]. - The company has established four essential goods reserve warehouses in Liuzhou City to ensure the supply of daily necessities [17]. - The company received the "2023 Outstanding Contribution Award" from the Food Safety Industry Association in Liuzhou [32]. - The total charitable donations made by the company during the fiscal year amounted to RMB 316,165 [186]. Strategic Initiatives and Future Outlook - The company aims to focus on health, cost-effectiveness, and product differentiation as key consumer decision factors in 2024 [44]. - The company will focus on high-quality development in 2024, leveraging market opportunities and emphasizing sustainable business practices [126]. - The company plans to explore new business opportunities to supplement and enhance its existing operations amid a challenging environment [128]. - The company aims to enhance revenue and reduce costs through six key initiatives, including supply chain optimization and digital efficiency improvements [125]. - The management team emphasized a commitment to sustainability, with plans to reduce carbon emissions by 20% by 2025 [150]. Management and Governance - The company has a strong management team with extensive experience in retail and strategic investment, including members from Alibaba Group and other notable firms [140][142][144]. - The board of directors includes experienced professionals with backgrounds in finance, economics, and retail management, ensuring strategic oversight [140][144]. - The company has maintained a strong governance structure with no reported interests or short positions held by directors or executives [198]. Supply Chain and Product Development - The company is developing its private label products, focusing on quality and health, and has introduced new self-owned brands to meet consumer demand [101]. - Supply chain optimization efforts include the replacement of inefficient suppliers and the introduction of new brands, enhancing competitive advantages and reducing procurement costs [102]. - The group aims to enhance supply chain quality and focus on developing private labels to improve competitiveness in the fresh goods sector [111]. Employee and Labor Management - The group has 25,735 employees as of December 31, 2023, with total labor costs approximately RMB 2,171.16 million [105]. - The group has implemented a core position contract system and dynamic personnel adjustments to improve operational efficiency and reduce labor costs [105]. - The group is focusing on talent acquisition and training, creating a shared platform for internal resource allocation to balance human resource gaps [107]. Market Expansion and Strategic Acquisitions - The company is actively exploring new market opportunities to diversify its revenue streams and reduce dependency on traditional retail channels [145]. - The company is considering strategic acquisitions to enhance its supply chain efficiency, with a budget of 2 billion RMB for potential deals [159]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025 [150].
联华超市(00980) - 2023 - 年度财报