Financial Performance - The company's revenue for the year ended December 31, 2022, was RMB 11,311,995 thousand, representing a 9.9% increase from RMB 10,289,375 thousand in 2021[2] - Gross profit for the same period was RMB 1,314,286 thousand, up 13.6% from RMB 1,156,436 thousand in the previous year[2] - Profit attributable to owners of the company increased by 40.4% to RMB 323,297 thousand, compared to RMB 230,345 thousand in 2021[2] - Retail sales for the year amounted to RMB 14,580,673 thousand, compared to RMB 13,664,959 thousand in 2021[5] - The company's total revenue increased by approximately 9.9% from RMB 10,289.4 million in 2021 to RMB 11,311.995 million in 2022[26] - The total profit for the year ended December 31, 2022, was RMB 306,137 thousand, compared to RMB 221,363 thousand in the previous year, marking a significant increase of around 38.3%[73] - Net profit rose by approximately 38.3% from RMB 221.4 million in 2021 to RMB 306.1 million in 2022, with a net profit margin increasing from 2.2% to 2.7%[42] - Adjusted net profit for 2022 was RMB 338.4 million, compared to RMB 250.9 million in 2021, with an adjusted net profit margin of 3.0%[44] Retail Expansion - The total number of retail stores reached 5,650 as of December 31, 2022, an increase from 5,249 in 2021[4] - The company plans to continue expanding its retail network across more than 140 cities in over 22 provinces and municipalities in China[9] - As of December 31, 2022, the total number of stores reached 5,650, with 4,577 franchise stores and 1,054 other stores, showing a growth from 5,249 total stores in 2021[10] - The number of retail stores increased by 7.6% from 5,249 in 2021 to 5,650 in 2022, contributing to an 8.9% increase in sales revenue from franchise stores[29] Membership and Customer Engagement - Membership numbers grew to 74,029 thousand, up from 64,449 thousand in the previous year, with paying members increasing to 967 thousand from 724 thousand[5] - The total membership across all distribution channels exceeded 74 million, with over 967,000 paid members and 54 million users of the WeChat mini-program[14] - Approximately 27.2% of orders in 2022 were placed through various online channels, with a total of about 10.6 million WeChat followers and 1.8 million Douyin followers[13] Product and Brand Development - The company operates a multi-brand strategy with 5,650 retail stores, of which 5,533 are under the "Baiguoyuan" brand and 110 under the "Guoduomei" brand[15] - As of December 31, 2022, the company launched 31 exclusive signature and A-level self-owned product brands in China, with signature and A-level fruit sales accounting for approximately 70% of total retail sales in its stores[16] - Retail sales of self-owned brand fruits increased by approximately 36% in 2022, representing about 11% of total retail sales in the company's stores, up from 8% in 2021[16] - The retail sales of the company's star product, Liangzhi apples, reached approximately RMB 58 million in 2022, a growth of about 56% compared to 2021, with retail prices being twice that of B-level apples[16] Operational Efficiency and Logistics - The company has established a national warehousing network with 29 warehouses and over 194,700 square meters of total construction area, serving as initial processing and distribution centers[17] - The company has implemented a digital smart warehousing logistics system upgrade to reduce common warehousing and logistics errors, enhancing operational efficiency[17] - The company continues to optimize its OMO (Online-Merge-Offline) operational model, enhancing consumer experience through integrated online and offline services[12] Financial Position and Investments - As of December 31, 2022, the company's net asset value was RMB 3,019.5 million, up from RMB 2,713.0 million in 2021[46] - The group had total non-current bank borrowings of RMB 103.8 million and short-term bank borrowings of RMB 1,231.2 million as of December 31, 2022[50] - The group plans to use the proceeds from the global offering for capital expenditures as disclosed in the prospectus[49] - The company completed a global offering and listing in Q1 2023, raising approximately HKD 474.0 million, which will primarily fund its expansion and operations[45] Research and Development - R&D expenses grew by approximately 23.8% from RMB 139.7 million in 2021 to RMB 173.0 million in 2022, mainly due to increased average salaries for R&D personnel[36] - The company aims to strengthen its core competitive advantage in quality products by increasing its presence in the upstream fruit planting sector and developing more self-owned quality product brands in 2023[20] Dividend and Shareholder Information - The board proposed a final dividend of RMB 0.076 per share, totaling approximately RMB 120.7 million for the year[6] - The company proposed a final dividend of RMB 0.076 per share, totaling approximately RMB 120,729,000, subject to shareholder approval[85] Market and Economic Conditions - The company reported a significant increase in revenue from the mainland China market, reaching RMB 11,157,622 thousand for the year ended December 31, 2022, compared to RMB 10,138,716 thousand in the previous year, representing a growth of about 10%[73] - The company has identified new strategies for market expansion and product development, focusing on enhancing its franchise and retail networks[71]