Financial Performance - The company's maternity service business revenue decreased by 18.0% year-on-year to approximately HKD 554.6 million due to the impact of the pandemic and the depreciation of the RMB against the HKD [9]. - The net profit for the maternity service business was HKD 11.7 million, a significant improvement from a net loss of approximately HKD 63.6 million in the previous year, attributed to the gradual recovery from the pandemic and the implementation of a light-asset model [9]. - The gross profit increased by 27.2% year-on-year to approximately HKD 121.0 million, driven by the optimization of the financial model of mature stores and reduced upfront investments in new stores [9]. - The company's revenue for the year was approximately HKD 554,581,000, a decrease of about HKD 125,365,000 or 18.4% compared to HKD 679,946,000 in 2022 [26]. - Gross profit for the year was approximately HKD 121,032,000, an increase of about HKD 22,292,000 or 22.6% from HKD 98,740,000 in 2022, resulting in a gross margin of 21.8% [26]. - The net loss for the year was approximately HKD 176,848,000, a slight decrease of about HKD 1,292,000 from HKD 178,140,000 in 2022, indicating a gradual recovery from the pandemic's impact [31]. - The adjusted loss for the year 2023 was HKD 176,848,000, a slight improvement from the loss of HKD 178,140,000 in 2022 [36]. - The adjusted profit for 2023 was HKD 15,727,000, compared to an adjusted loss of HKD 56,101,000 in 2022 [36]. Operational Developments - The company successfully completed its first year of the "Five-Year, Fifty Cities Plan," achieving market coverage in ten cities with a total of 18 operational centers [5]. - The company launched a new non-residential maternity service under the "Combined Aidi Gong" brand, marking its entry into the home maternity service market [6]. - The number of operational stores increased from 12 to 18, with new centers opened in cities such as Xiamen, Dongguan, Quanzhou, and Fuzhou [10]. - The company plans to continue expanding its service offerings and increase market penetration in the maternity service sector [6]. - The strategic upgrade of the "Five-Year, Fifty Cities Plan" will focus on customer-centric services and product-driven business development [6]. - The company implemented an "extremely light asset model" for new stores, significantly reducing upfront investment and optimizing financial models for mature stores [31]. Cost Management - Marketing expenses decreased by 21.7% year-on-year to approximately HKD 116.3 million, enhancing marketing efficiency [9]. - Administrative expenses increased to approximately HKD 140,920,000, up by about HKD 19,897,000 or 16.4% compared to HKD 121,023,000 in 2022 [27]. - Sales and distribution expenses decreased to approximately HKD 116,266,000, a reduction of about HKD 32,187,000 or 21.7% from HKD 148,453,000 in 2022, due to improved marketing efficiency [28]. - Financial costs were approximately HKD 53,768,000, a decrease of about HKD 10,803,000 or 16.7% compared to HKD 64,571,000 in 2022 [29]. - The total employee cost for the year is approximately HKD 220,280,000, a decrease from HKD 289,310,000 in 2022, reflecting a reduction in workforce from about 1,581 to 1,311 employees [103]. Shareholder Information - The company expressed gratitude to shareholders for their support and acknowledged the contributions of its board members [8]. - The group did not recommend any final dividend for the year, consistent with 2022 [37]. - The company's available distributable reserves as of December 31, 2023, amounted to approximately HKD 636.7 million, down from HKD 814.9 million in 2022 [76]. - The company issued a total of 374,531,836 convertible preferred shares for a total consideration of HKD 222.7 million, with HKD 153.6 million allocated for repaying outstanding debts [73]. - The company plans to raise approximately HKD 62.09 million through a rights issue, offering up to 1,478,338,324 shares at a subscription price of HKD 0.042 per share [80]. Corporate Governance - The company is committed to maintaining high levels of corporate governance to ensure transparency and protect shareholder interests [156]. - The board has delegated daily management and operational powers to senior management, ensuring effective oversight of the company's operations and financial performance [158]. - The company has established effective self-regulatory practices to maintain a robust internal control system [156]. - The independent non-executive directors provided independent opinions on the company's strategy, performance, and compliance standards [173]. - The company has received annual confirmations from all independent non-executive directors regarding their independence as per listing rules [160]. Board of Directors - The board of directors consists of five executive directors, one non-executive director, and four independent non-executive directors, with independent directors making up more than one-third of the board [159]. - The company has appointed new directors, including Mr. Lin Zhiwei and Ms. Kai Xiangmei, effective October 26, 2023, with their qualifications confirmed [161]. - The company held a total of four board meetings during the year, with management and the company secretary in attendance to report on governance, risk management, compliance, accounting, finance, and business matters [166]. - The audit committee held 2 meetings during the year, with management present at both meetings [183]. - The Nomination Committee held two meetings this year to review the qualifications of directors and approve nominations for executive and non-executive directors [193]. Risk Management and Compliance - The company actively monitors industry trends, technological innovations, and changes in consumer behavior to manage business risks [62]. - The company has established compliance procedures to ensure adherence to applicable laws and regulations, with no significant violations reported during the year [69]. - The company’s financial risk management details are outlined in the consolidated financial statements [63]. - The Audit Committee evaluated the adequacy and effectiveness of the group's internal audit functions and risk management systems [186].
爱帝宫(00286) - 2023 - 年度财报