Business Operations - The company focuses on health and wellness tourism, managing hot spring resorts and hotels, and has developed and sold seven tourism property projects[4]. - The flagship Gudou Hot Spring Resort is a national AAAA-level tourist attraction located in Jiangmen, Guangdong Province[4]. - The company provides consulting services to third-party hot spring resorts and hotel operators[4]. - The company has a commitment to managing and operating hot spring resorts to revitalize guests' physical and mental well-being[4]. - The company has established a significant presence in the tourism property market, including villas, apartments, and commercial units[4]. - The company is primarily engaged in the operation and management of hot spring resorts and the development and sale of tourism properties in Guangdong Province[88]. - The company aims to expand its management services to third-party resorts and hotel operators as part of its growth strategy[92]. - The company has adopted standardized development procedures to enhance efficiency and control costs in tourism property development[102]. - The company plans to continue promoting the "Gu Dou" brand through various marketing events, including the opening of the Gu Dou Tian Ji Hot Spring Hotel in August 2022[103]. Financial Performance - Revenue for the year ended December 31, 2022, was RMB 41,900,000, a decrease of 34.5% compared to RMB 63,964,000 in 2021[10]. - Operating loss increased to RMB (133,667,000) in 2022 from RMB (52,253,000) in 2021, representing a 155.8% increase[10]. - Adjusted EBITDAF for 2022 was RMB 3,416,000, a significant improvement from RMB (333,000) in 2021, indicating a 1,125.8% change[16]. - Net loss for the year was RMB (132,693,000), an increase of 92.4% compared to RMB (68,950,000) in 2021[10]. - The company reported a significant increase in adjusted net loss to RMB (128,682,000) from RMB (68,763,000) in the previous year, marking an 87.1% increase[16]. - Revenue from the hot spring resort and hotel operations decreased by approximately 31.9% to RMB 41,500,000, primarily due to the resurgence of COVID-19 impacting recovery[36]. - The company recorded a gross loss of approximately RMB 41,100,000, with a gross loss margin of about 98.1%, compared to a gross profit margin of 0.1% in the previous year[38]. - The company recorded a revenue of approximately RMB 41,900,000 for the year, a decrease of about 34.5% compared to RMB 64,000,000 in the previous year[36]. - Revenue from tourism property development decreased by approximately 86.1% to around RMB 400,000, primarily due to weak demand in the real estate market[93]. Market Conditions - Average occupancy rate for luxury resorts dropped to 30% in 2022 from 45% in 2021, while city hotels decreased to 46% from 65%[17]. - Average room rate for luxury resorts decreased to RMB 675 in 2022 from RMB 780 in 2021[17]. - Total revenue per available room (RevPAR) for luxury resorts fell to RMB 206 in 2022 from RMB 347 in 2021[17]. - The decrease in revenue was mainly attributed to the impact of COVID-19 measures, including travel restrictions and mandatory quarantine[91]. - The occupancy rate of the company's nine themed hotels decreased from approximately 27% to about 26% due to strict pandemic prevention and quarantine policies[92]. - The average room rate for the nine themed hotels decreased from approximately RMB 286.4 to about RMB 276.6, primarily due to a reduction in rates for mid-range resort and city hotels[92]. - The company has faced challenges in its tourism property development business due to weak demand in the general real estate market[91]. Governance and Compliance - The company has a diverse board of directors with recent changes in executive positions, ensuring governance and compliance[7]. - The company has implemented internal monitoring systems to ensure compliance with necessary permits and licenses for business operations[108]. - The independent auditor raised concerns regarding the financial data of a joint venture, indicating a lack of cooperation from the partner in providing necessary information[61]. - An independent review revealed doubts about the existence of a RMB 15 million loan under a commitment letter, highlighting internal control deficiencies[62]. - The audit committee believes that once a ruling is made regarding the joint venture rights, there will be no further disputes with Guangdong Aoyuan[64]. - The company has adopted a standard code of conduct for securities trading, which is not less stringent than the GEM listing rules[160]. - The company has confirmed the independence of its independent non-executive directors in accordance with GEM listing rules[152]. - The company has established four board committees: audit, nomination, remuneration, and compliance, to assist the board in fulfilling its responsibilities[168]. Future Outlook - The company is optimistic about 2023, viewing it as a year for recovery and innovation in the tourism sector, supported by favorable government policies[33]. - The company anticipates that the tourism industry will recover as global conditions improve, with a focus on health and wellness[94]. - The company plans to continue investing in the renovation of its resort properties, which significantly impacts its cost structure and financial performance[13]. - The company expects the sales of the Gu Dou Yi Shui Ming Ting and Guan Shan Yue Gong Guan projects to continue into 2023, with deliveries starting in the same year[102]. - The management expects that the audit opinion can be removed within 2 to 3 years after the auditor performs alternative audit procedures[63]. Shareholder Information - The total reserves available for distribution to shareholders as of December 31, 2022, amounted to approximately RMB 310.7 million, an increase from RMB 303.4 million in 2021[116]. - The company did not recommend any final dividend for the year, with no final dividend paid during the year[115]. - The company has not issued any shares, bonds, or similar rights during the reporting period[112]. - The company has granted stock options totaling 54.3 million shares at an exercise price of HKD 0.1742 on June 20, 2022, with a remaining balance of 49.35 million shares after cancellations[127]. - The total number of stock options granted during the period was 39.2 million, with 14.35 million options exercised or forfeited[130]. - Major shareholders include Mr. Li with 97,500,000 shares (9.80%) and Sky Success Ventures with 143,000,000 shares (14.37%)[139]. Risk Management - The company is dependent on existing hot spring water sources, and any adverse geological changes could significantly impact its business[110]. - The company may face risks related to the operation of hot spring resorts, including accidents and environmental issues, which could negatively affect the brand reputation[110]. - The company has implemented internal control and risk management systems, which are monitored by the audit committee[169]. - The board reviews the overall risk management system at least annually to ensure adequate monitoring and management of significant risks[196]. - The company has adopted a risk management system that includes identifying risk ownership and assessing the potential impact on business objectives[197]. Employee and Operational Costs - Employee costs for the fiscal years ending December 31, 2021, and December 31, 2022, were approximately RMB 35.8 million and RMB 23.9 million, respectively[57]. - The group employed 256 full-time employees as of December 31, 2022, with about 97.3% based in China[57]. - The company has implemented cost-saving measures that have led to a reduction in material and energy costs despite an increase in employee costs[37]. - Administrative expenses decreased slightly by about 0.4% to RMB 28,800,000, primarily due to reduced professional fees[43].
古兜控股(08308) - 2023 - 年度财报