MY GYM(SZ:002621)2024-04-29 18:31Financial Performance - The company's operating revenue for 2023 was ¥107,441,348.46, a decrease of 30.17% compared to ¥153,866,098.43 in 2022[26]. - The net profit attributable to shareholders for 2023 was ¥949,209,876, reflecting a significant decline of 115.82% from ¥440,027,236 in 2022[26]. - The net cash flow from operating activities for 2023 was ¥73,084,633.7, a decrease of 3.02% compared to ¥70,945,012.3 in 2022[26]. - The basic and diluted earnings per share for 2023 were both -¥1.16, representing a decline of 114.81% from -¥0.54 in 2022[26]. - Total assets at the end of 2023 were ¥1,229,491,300, a decrease of 54.46% from ¥2,694,909,590 in 2022[27]. - The net assets attributable to shareholders at the end of 2023 were -¥460,361,004, a decline of 196.61% from ¥476,100,395 in 2022[27]. - The company reported a total of ¥1,580,145.89 in non-operating asset disposal gains for 2023, down from ¥6,198,941.01 in 2022[34]. - The company experienced a significant loss in net profit attributable to shareholders, with a total of -¥796,381,803.42 in the fourth quarter of 2023[32]. - The company has indicated uncertainty regarding its ability to continue as a going concern, as the net profit excluding non-recurring gains and losses has been negative for the last three years[28]. - The company reported a net loss of approximately ¥7.49 million for the period, with a significant impact from non-operating income and expenses[35]. Business Operations and Strategy - The company has undergone changes in its main business focus, shifting from machinery manufacturing to education services and consulting since July 2020[24]. - The company operates 281 signed early education centers under the "Mei Jim" and "Xiao Jim" brands as of the end of the reporting period[46]. - The company emphasizes the development of high-quality early education services, focusing on children aged 0 to 3 years with a curriculum based on child psychology and neuroscience[45]. - The "Xiao Jim" brand targets third-tier and below cities, aiming to expand market depth and provide quality early education services to more families[45]. - The company has developed a comprehensive curriculum that includes core courses in movement, art, music, and dance, which are designed to enhance children's overall development[47]. - The company is enhancing its online platform to improve content quality and expand service offerings, aligning with changing consumer behaviors[45]. - The company aims to leverage its brand and operational expertise to meet the increasing demand for quality early education in a rapidly evolving market[44]. - The company launched a new physical fitness course and updated its core courses, adding over 60 new course contents[59]. - The company is focused on maintaining governance and transparency through regular shareholder meetings and reports[135]. Risk Management and Compliance - The company reported a negative opinion audit report for internal controls and a disclaimer of opinion audit report for financial statements, raising concerns about the accuracy and completeness of the 2023 annual report[7]. - The company has acknowledged potential risks in its future development and has outlined corresponding countermeasures in its management discussion[7]. - The company emphasizes the importance of risk awareness for investors regarding forward-looking statements in the report[7]. - The company faces risks from regulatory changes that may increase operational costs, and it plans to manage these risks through effective communication with local authorities and cost control measures[114]. - The company has not effectively monitored investment disposal processes, leading to potential risks in asset management[199]. - The company has not adhered to internal control regulations regarding the protection of company assets, indicating a need for improved oversight[199]. - The company has engaged in transactions without proper approval from the general manager's office, raising concerns about compliance with internal procedures[199]. - The company is required to ensure that internal controls are designed and operated effectively to protect asset safety and ensure reliable financial reporting[200]. Governance and Management Changes - The company experienced a leadership change with the resignation of several key executives, including the chairman and CEO, due to personal reasons[139][140][141]. - The company appointed Jin Hui as the new CEO and chairman, effective January 10, 2024, following a series of board meetings[141]. - The company reported a significant turnover in management, with multiple resignations from senior positions, including the vice presidents and board members[139][140]. - The company is focusing on restructuring its management team to enhance operational efficiency and strategic direction[140][141]. - The company has seen a shift in its board composition, with new members being elected to strengthen governance and oversight[141]. - The company is likely to pursue further strategic initiatives, including potential market expansions and product development, to enhance its competitive edge[147]. - The company is actively engaging with auditors to ensure compliance and transparency in financial reporting[168]. - The company is addressing regulatory compliance issues as indicated by the corrective measures taken in response to directives from the Dalian regulatory bureau[159]. Shareholder Engagement - The company held 5 shareholder meetings during the reporting period, ensuring equal rights for all shareholders through separate voting for minority investors[129]. - The company plans to hold the first temporary shareholders' meeting of 2024, indicating ongoing corporate governance activities[160]. - The company received a proposal from shareholders holding a total of 57,628,093 shares, representing 7.01% of the total share capital, to add temporary proposals for the fourth extraordinary general meeting of shareholders in 2023[164]. - The proposal was submitted 10 days prior to the shareholders' meeting, complying with relevant regulations including the Company Law of the People's Republic of China and the Shenzhen Stock Exchange's self-regulatory guidelines[165]. - The independent opinions expressed during the meetings highlight the need for improved corporate governance practices[163]. Employee and Talent Management - The company has implemented a fair compensation policy, with salary adjustments based on company performance and regional economic conditions[175]. - The company emphasizes talent development through targeted training programs to enhance employee skills and operational efficiency[176]. - The company has established a remote training platform to provide standardized training courses for early education center staff across different regions[176]. - The total compensation for directors and senior management in 2023 amounted to 10 million RMB, reflecting the company's performance-based pay structure[154]. Market Trends and Future Outlook - The average disposable income for residents in 2023 was ¥39,218, reflecting a nominal growth of 6.3% year-on-year, which supports increased demand for early education services[42]. - The urbanization rate in China reached 66.16% by the end of 2023, indicating a growing market potential for early education services in urban areas[42]. - The government has introduced policies to support early childhood education, which is expected to drive industry growth and development[40]. - The company anticipates that supportive fertility policies will drive the expansion of the early education market, contributing to high-quality development in the early education sector[102]. - The new urbanization process is expected to drive consumption and investment, creating significant demand for early childhood education services, particularly in lower-tier cities[103].