百盛集团(03368.HK)：一季度，本公司所有人应占利润为人民币340万元，而去年同期为人民币1910万 元。 ...

Financial Performance - For the three months ended March 31, 2025, total revenue was RMB 2,254.6 million, a decrease of 15.4% compared to RMB 2,666.5 million for the same period in 2024[5] - Same-store sales declined by 19.2% year-over-year for the three months ended March 31, 2025[5] - Operating profit for the same period was RMB 122.9 million, down 14.6% from RMB 143.9 million in the previous year[5] - Profit attributable to owners of the company was RMB 3.4 million, significantly lower than RMB 19.1 million for the same period in 2024[5] - The total operating revenue decreased from RMB 1,052.8 million for the three months ended March 31, 2024, to RMB 996.4 million for the three months ended March 31, 2025, a reduction of RMB 56.4 million or 5.4%[13] - Revenue from customer contracts, which includes self-operated sales, commission from franchised counters, and consulting and management service fees, accounted for 67.0% of total operating revenue, down 11.8% year-on-year[13] - Operating profit for the three months ended March 31, 2025, was RMB 122.9 million, a decrease of RMB 21.0 million or 14.6% from RMB 143.9 million for the same period in 2024[15] - Profit attributable to the owners of the company was RMB 3.4 million for the three months ended March 31, 2025, compared to RMB 19.1 million for the same period in 2024[16] Cash Flow and Assets - The group reported a net cash flow from operating activities of RMB 66.986 million for the three months ended March 31, 2025[9] - Total assets as of March 31, 2025, were RMB 8,414.1 million, compared to RMB 8,500.3 million as of December 31, 2024[7] - Non-current assets amounted to RMB 8,414.1 million, with property, plant, and equipment valued at RMB 2,619.3 million[7] - The group’s cash and cash equivalents at the end of the period were RMB 1,450.6 million, down from RMB 1,530.5 million at the beginning of the period[9] - The group’s total equity was RMB 3,090.8 million as of March 31, 2025, slightly up from RMB 3,087.1 million at the end of 2024[8] Operating Expenses and Sales Decline - Total operating expenses, excluding procurement of goods and changes in inventory, increased from RMB 427.7 million to RMB 434.5 million, an increase of RMB 6.9 million or 1.6%[14] - Same-store operating expenses, excluding procurement of goods and changes in inventory, decreased by 4.6%[14] - The decline in sales was attributed to increased external uncertainties, weak revenue growth expectations, and cautious consumer spending behavior[10] Store Operations - The company operates 43 Parkson stores across 27 cities in China and Laos, including department stores, shopping plazas, city outlets, "Parkson Beauty" concept stores, and supermarkets[16]

Financial Performance - For the year ended December 31, 2024, the Group recorded gross sales proceeds of RMB8,696.6 million, a decrease of 13.8% compared to the previous year[26]. - Same-Store-Sales (SSS) decreased by 16.1% year-on-year, reflecting a cautious consumer spending environment[26]. - The overall gross profit margin of the Group was 13.3% in 2024, down from previous levels[26]. - The operating profit for the Group was RMB244.9 million, a decrease of RMB260.6 million from RMB505.5 million in the previous year[26]. - The Group recorded total sales of RMB 8,696.6 million, a decrease of 13.8% year-on-year, primarily due to lower-than-expected economic recovery and cautious consumer spending[29]. - Same-store sales declined by 16.1% year-on-year, with an overall gross margin of 13.3% for the Group in 2024[29]. - Total merchandise sales (net of value-added tax) fell by RMB1,236.9 million or 15.9% to RMB6,554.3 million in 2024[56]. - Concessionaire sales, which accounted for 72.6% of total merchandise sales, decreased by 16.0% compared to 2023[56]. - Direct sales decreased by 15.6% compared to 2023, indicating a decline across all sales channels[56]. - The merchandise gross margin decreased from 13.5% in 2023 to 13.3% in 2024, reflecting pressure on profitability[57]. - Total operating revenues decreased by RMB450.8 million or 10.8% to RMB3,726.7 million in 2024, primarily due to a decline in direct sales and concessionaire sales commissions[61]. - Revenue from contracts with customers, which constituted 65.6% of total operating revenues, decreased by RMB456.9 million or 15.7% compared to 2023[62]. - Purchases of goods and changes in inventories decreased by RMB273.6 million or 14.9% to RMB1,562.1 million in 2024, mainly due to reduced direct sales[63]. - Staff costs decreased by RMB6.4 million or 1.3% to RMB479.4 million in 2024, with a same store basis decrease of 2.2%[64]. - Other operating expenses increased by 22.7% to RMB861.5 million in 2024, primarily due to an increase in asset impairment provisions from RMB67.0 million in 2023 to RMB230.0 million in 2024[74]. - Profit from operations was recorded at RMB244.9 million in 2024, down from RMB505.5 million in 2023[76]. - Loss before tax was RMB147.9 million in 2024, compared to a profit before tax of RMB86.6 million in 2023[86]. - The Group's recorded loss for the year was RMB174.5 million in 2024, compared to a profit of RMB70.5 million in 2023[89]. - The projected net loss for 2024 is approximately RMB174.8 million, with a basic loss per share of RMB0.066[51]. Market Environment - The PRC's GDP reached RMB134.91 trillion in 2024, representing a 5.0% increase from 2023, while total retail sales of consumer goods increased by 3.5% year-on-year[25]. - The Chinese market faced notable challenges, including a lack of consumer confidence and increased industry competition[24]. - The economic recovery in China has been slower than expected, necessitating strategic planning to adapt to evolving market conditions[23]. - The overall retail environment in China is characterized by increased consumer segmentation and competition, necessitating strategic adjustments by the Group[28][29]. Strategic Initiatives - The Group renewed tenancy agreements for several key stores, including those in Guiyang, Shenyang, Harbin, Shanghai, and Nanning, reinforcing its market presence[27]. - The Group opened two new supermarkets, Mianyang Guanhua Supermarket and Kunming Nanya Supermarket, to enhance customer service[27]. - The Group's market strategy focuses on localization and tailored merchandise assortments to better serve middle to middle-upper end consumers[4]. - The Group opened two new supermarkets: Mianyang Guanhua Supermarket in January 2024 and Kunming Nanya Supermarket in November 2024, reflecting its strategy of "Multiple Stores in a City" and "Model Innovation"[40][41]. - The Group plans to open two additional stores in Datong City and Mianyang City in 2025, including outlet and shopping mall formats, to enhance market share and competitive positioning[42]. - The Harbin store launched a themed street district called "Erbin Story," significantly boosting foot traffic and customer engagement[34][37]. - The Group aims to revamp and remodel stores to improve their image and introduce new shopping experiences in response to market trends[39][43]. - The Group's operational improvement plans focus on enhancing service quality and adapting to evolving consumer expectations, categorized into three store types for targeted strategies[32][36]. Leadership and Governance - Tan Sri Cheng is the Chairman and Managing Director of Parkson Holdings Berhad, overseeing multiple public listed companies in Malaysia and Singapore[119]. - Juliana Cheng San San, the Executive Director, has been with the company since 2015 and is responsible for audit, legal, and public relations[121]. - The company has a strong leadership team with diverse backgrounds in retail, finance, and government, enhancing its strategic direction[120]. - The company is focused on leveraging its extensive experience in the retail sector to drive growth and innovation[126]. - The leadership team is committed to corporate governance and strategic oversight through various committees[130]. - The company has a strong governance structure with independent non-executive directors serving on key committees such as Audit and Remuneration[137]. - The management team has a diverse background in finance, operations, and business development, enhancing the company's strategic capabilities[143]. - The Company fully complied with the Corporate Governance Code for the year ended December 31, 2024[152]. - The Board consists of 6 Directors, including 2 executive Directors, 1 non-executive Director, and 3 Independent non-executive Directors[155]. - The Company has established a Board Independence Evaluation Mechanism to ensure strong independent judgment on the Board[169]. - The Company emphasizes a healthy corporate culture based on core values such as integrity, customer orientation, and mutual respect[162]. - The Company has adopted written guidelines for securities transactions by employees to prevent non-compliance[154]. - The Company focuses on innovative services and responsible operations as its main business strategy[162]. - The Board regularly reviews its composition to ensure a balance of expertise, skills, and experience relevant to the Company's business[185]. - Directors participated in continuous professional development, with training records summarizing participation for the year ended 31 December 2024[193]. - The Board reserves decision-making on major policy matters, strategies, budgets, and material transactions[184]. - All Directors have full access to Company information and can seek independent professional advice at the Company's expense[180]. - The Company has received annual independence confirmations from all Independent Non-executive Directors[173]. - The Board will engage external recruitment agencies when necessary for the selection process of new Directors[186]. - The board held four (4) meetings during the year ended December 31, 2024[200]. - Directors participated in ongoing professional development and training sessions[196]. - Attendance records for training sessions included various formats such as briefings, seminars, and workshops[199].

Financial Performance - For the fiscal year ending December 31, 2024, total operating revenue decreased to RMB 3,726.7 million, a decline of 10.8% year-on-year[2] - Same-store sales dropped by 16.1% in the fiscal year 2024[3] - Total sales revenue (including VAT) for the fiscal year 2024 was RMB 8,696.6 million, down 13.8% compared to the previous year[3] - Operating profit for the fiscal year 2024 was RMB 244.9 million, significantly lower than RMB 505.5 million in 2023[3] - The company reported a loss attributable to owners of RMB 174.8 million for the fiscal year 2024[4] - Total sales revenue for the fiscal year 2024 decreased by 13.8% to RMB 8,696.6 million, attributed to lower-than-expected economic recovery and cautious consumer spending[49] - Same-store sales declined by 16.1% in fiscal year 2024, reflecting a trend of consumer downgrade[49] - Total merchandise sales (excluding VAT) fell by RMB 1,236.9 million or 15.9% to RMB 6,554.3 million, with licensed counter sales down 16.0% and direct sales down 15.6%[51] - The gross margin for merchandise sales decreased from 13.5% in fiscal year 2023 to 13.3% in fiscal year 2024[52] - Operating profit for fiscal year 2024 dropped by RMB 450.8 million or 10.8% to RMB 3,726.7 million, primarily due to reduced self-operated sales and licensed counter commissions[53] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 8,500.3 million, compared to RMB 8,041.7 million in 2023[9] - Non-current assets decreased from RMB 8,041.7 million in 2023 to RMB 8,500.3 million in 2024[9] - The company's net asset value decreased to RMB 3,087.1 million in 2024 from RMB 3,317.1 million in 2023[10] - Cash and bank balances decreased to RMB 1,466.5 million in 2024 from RMB 1,583.4 million in 2023[9] - Trade receivables increased to RMB 1,043,523 thousand, up from RMB 681,132 thousand in the previous year, indicating a significant rise in credit sales[31] - Total debt to total assets ratio increased to 24.7% in 2024 from 22.5% in 2023[68] - Current assets as of December 31, 2024, were RMB 2,881.8 million, with net assets amounting to RMB 3,087.1 million[69] Costs and Expenses - The company's financing costs for the fiscal year 2024 were RMB 445.9 million, down from RMB 498.1 million in 2023[6] - Financing income for 2024 was RMB 38,590 thousand, down from RMB 55,367 thousand in 2023, a decrease of 30.3%[25] - Financing costs netted RMB 407,307 thousand in 2024, compared to RMB 442,750 thousand in 2023, showing a reduction of 8.0%[25] - Employee costs totaled RMB 479,358 thousand in 2024, slightly down from RMB 485,837 thousand in 2023, a decrease of 1.0%[23] - Rental expenses decreased from RMB 90.1 million in 2023 to RMB 80.4 million in 2024, a reduction of RMB 9.7 million, primarily due to a decline in performance of several stores, resulting in a 12.0% decrease in same-store rental expenses[57] - Other operating expenses increased by 22.7% from RMB 701.9 million in 2023 to RMB 861.5 million in 2024, mainly due to an increase in asset impairment provision from RMB 67.0 million to RMB 230.0 million[58] Strategic Initiatives - The company signed lease agreements for stores in Guiyang, Shenyang, Harbin, Shanghai, and Nanning, reinforcing its market presence[41] - The company opened two new supermarkets in Mianyang and Kunming to better serve customers[41] - The company plans to open two additional stores in Datong and Mianyang in 2025, aligning with its market differentiation strategy[47] - The company is committed to enhancing store image and customer experience through continuous renovations and the introduction of new shopping experiences[44] - The strategic focus remains on balancing stability and innovation to adapt to the evolving retail market in China[48] Future Outlook - The group reported a pre-tax loss of RMB 1,562,074 thousand for 2024, compared to a loss of RMB 1,835,698 thousand in 2023, indicating a reduction in losses by 14.9%[23] - The company reported a basic loss attributable to equity holders of RMB (174,759) thousand for the year, compared to a profit of RMB 66,413 thousand in the previous year[30] - Overall, the company remains optimistic about achieving its long-term growth objectives amid market challenges[83] - The future outlook includes a revenue guidance of $500 million for the next fiscal year, reflecting a 20% growth target[83] - New product development includes the launch of three innovative products expected to contribute an additional $100 million in revenue[83] - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share by 2026[83] - Recent acquisitions have added $200 million in annual revenue, enhancing the company's competitive position[83] - The company is investing $50 million in new technology to improve operational efficiency, aiming for a 10% reduction in costs[83] - A strategic partnership has been formed with a leading tech firm to enhance product offerings and drive innovation[83] - The company has implemented a new marketing strategy projected to increase customer engagement by 25%[83]

Financial Performance - For the third quarter of 2024, operating revenue decreased by 16.5% year-on-year to RMB 835.5 million, and for the nine months ended September 30, 2024, it decreased by 13.6% to RMB 2,780.2 million[3]. - Same-store sales declined by 23.1% in the third quarter of 2024, and by 16.1% for the nine months ended September 30, 2024[3]. - Operating profit for the third quarter of 2024 was RMB 89.6 million, a decrease of 27.3% compared to RMB 389.9 million in the same period last year[3]. - The company reported a loss attributable to owners of RMB 29.3 million for the nine months ended September 30, 2024, compared to a profit of RMB 67.3 million in the same period last year[3]. - Total sales revenue for Q3 2024 was RMB 1,812.1 million, a decrease of 20.4% year-over-year, while revenue for the nine months ended September 30, 2024, was RMB 6,504.9 million, down 14.9% compared to the previous year[25]. - Operating profit for Q3 2024 was RMB 89.6 million, and for the nine months ended September 30, 2024, it was RMB 283.4 million, representing a decrease of 27.3% from RMB 389.9 million in the same period last year[29]. - The company recorded a loss attributable to owners of RMB 10.6 million in Q3 2024 and a loss of RMB 29.3 million for the nine months ended September 30, 2024[31]. Revenue and Sales Breakdown - Total sales revenue (including VAT) for the three months ended September 30, 2024, was RMB 1,812.1 million, down from RMB 2,277.7 million in the same period last year[5]. - Revenue from customer contracts accounted for 66.9% of total operating revenue, decreasing by RMB 367.4 million[27]. - The total sales amount from licensed counters was RMB 3,559.2 million, accounting for 72.1% of total sales, while direct sales were RMB 1,376.7 million, making up 27.9% of total sales, both showing a decline of 15.7% and 16.6% respectively year-over-year[26]. Expenses and Cash Flow - Total operating expenses for the nine months ended September 30, 2024, were RMB 2,496.8 million, compared to RMB 2,828.4 million in the same period last year[5]. - Total operating expenses for the nine months ended September 30, 2024, were RMB 1,303.2 million, down 7.7% from RMB 1,411.4 million in the previous year[28]. - The net cash flow from operating activities for the nine months ended September 30, 2024, was RMB 333.6 million[13]. - Cash and cash equivalents at the end of the period were RMB 1,446.6 million, down from RMB 1,683.6 million at the beginning of the period[20]. Assets and Liabilities - Non-current assets as of September 30, 2024, totaled RMB 8,177.9 million, compared to RMB 8,041.7 million as of December 31, 2023[7]. - Total liabilities as of September 30, 2024, were RMB 5,199.2 million, an increase from RMB 4,917.8 million as of December 31, 2023[10]. Company Operations - The company operates 43 Parkson stores across 28 cities in China and Laos, including department stores and shopping plazas[31].

PARKSON 百盛 Retail Group Limited 商業集團有限公司 Stock Code 股份代號:3368 nterim 中期 Report 中期報告 CONTENTS 目錄 CONTENTS 目錄 | --- | --- | |-------------------------------------------------------------------|----------------------------| | | | | Corporate Information | 公司資料 | | Financial Highlights | 財務摘要 | | Independent Review Report | 獨立審閱報告 | | Interim Condensed Consolidated Statement of Profit or Loss | 中期簡明綜合損益表 | | Interim Condensed Consolidated Statement of Comprehensive Income | 中期簡明綜合全面收益表 | | Interim Condensed Con ...

Financial Performance - Total operating revenue for the six months ended June 30, 2024, was RMB 1,944.7 million, a decrease of 12.3% compared to RMB 2,218.2 million in the same period last year[1]. - Same-store sales declined by 13.3% during the period[1]. - Total sales revenue (including VAT) for the period was RMB 4,692.8 million, down 12.5% year-on-year[1]. - Operating profit for the period was RMB 193.8 million, a decrease of RMB 71.0 million from RMB 264.8 million in the previous year[1]. - The loss attributable to equity holders of the company was RMB 18.6 million, compared to a profit of RMB 63.1 million in the same period last year[1]. - Total revenue for the six months ended June 30, 2024, was RMB 4,222,156 thousand, a decrease of 12.5% compared to RMB 4,823,689 thousand for the same period in 2023[10]. - Self-operated sales amounted to RMB 995,320 thousand, down 14.5% from RMB 1,164,266 thousand in the previous year[10]. - Total sales from licensed counters were RMB 2,624,925 thousand, a decline of 12.6% from RMB 3,003,808 thousand in 2023[10]. - Other operating income, including consulting and management service fees, rental income, and credit service income, totaled RMB 601,911 thousand, down 8.2% from RMB 655,615 thousand[10]. - The group reported a pre-tax loss of RMB 220,404 thousand for the six months ended June 30, 2024, compared to a loss of RMB 221,860 thousand in the same period of 2023[19]. - The income tax expense for the current period was RMB 40,036 thousand, significantly lower than RMB 79,058 thousand in the previous year[20]. - The group’s employee costs totaled RMB 239,663 thousand, a decrease of 4.2% from RMB 250,802 thousand in the prior year[16]. - Rental income from investment properties was RMB 304,601 thousand, down from RMB 341,058 thousand in the previous year[17]. - Financing income for the six months was RMB 22,816 thousand, compared to RMB 27,444 thousand in the same period of 2023[19]. - The company recorded total sales revenue of RMB 4,692.8 million for the six months ended June 30, 2024, a decrease of 12.5% compared to the same period last year[27]. - Same-store sales decreased by 13.3% during the review period[27]. - Operating profit for the period was RMB 193.8 million, down from RMB 264.8 million in the previous year, representing a decrease of RMB 71.0 million[27]. - Pre-tax loss for the first half of 2024 was RMB 17.8 million, compared to a pre-tax profit of RMB 60.6 million in the same period last year[43]. - The company recorded a net loss attributable to shareholders of RMB 18.6 million in the first half of 2024, compared to a profit of RMB 63.1 million in the same period last year[46]. - Employee costs decreased by 4.4% to RMB 239.7 million in the first half of 2024, while same-store employee costs fell by 4.7%[35]. - Other operating expenses decreased by 3.1% to RMB 346.8 million in the first half of 2024, primarily due to the closure of underperforming businesses[38]. Assets and Liabilities - Non-current assets totaled RMB 8,202.7 million as of June 30, 2024, compared to RMB 8,041.7 million as of December 31, 2023[4]. - Current liabilities amounted to RMB 2,472.8 million, down from RMB 2,841.8 million at the end of the previous year[4]. - Total equity attributable to equity holders was RMB 3,268.8 million as of June 30, 2024, compared to RMB 3,317.1 million at the end of 2023[6]. - As of June 30, 2024, trade receivables amounted to RMB 816.6 million, compared to RMB 681.1 million as of December 31, 2023[23]. - Trade payables as of June 30, 2024, totaled RMB 514.5 million, down from RMB 702.6 million as of December 31, 2023[24]. - Current assets amount to RMB 2,780.5 million as of June 30, 2024, while net assets are RMB 3,268.8 million[49]. - The fair value of financial assets measured at fair value through profit or loss is RMB 68.2 million, representing approximately 0.6% of the group's total assets as of June 30, 2024[50]. - Pledged accounts receivable as of June 30, 2024, total RMB 211.5 million, with pledged properties and investment properties valued at RMB 1,348.4 million and RMB 534.2 million, respectively[51]. - As of June 30, 2024, the total debt to total assets ratio of the group is 24.8%, an increase from 22.5% as of December 31, 2023[48]. Corporate Actions and Governance - The company declared an interim dividend of RMB 0.02 per share[1]. - The board has approved an interim dividend of RMB 0.02 per share, to be paid in Hong Kong dollars[22]. - The company plans to open three new stores in Kunming, Datong, and Mianyang between the second half of 2024 and 2026, expanding its business footprint[28]. - The company has signed lease agreements for stores in Guiyang, Shenyang, and Harbin, with plans for renovations to enhance store image and customer experience[28]. - The group has not purchased, sold, or redeemed any of its listed securities during the six months ending June 30, 2024[52]. - The company has fully complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules as of June 30, 2024[53]. - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2024[55]. - The mid-term report containing all information required by the listing rules will be sent to shareholders and published on the Hong Kong Stock Exchange and the company's website[56]. - The group expresses gratitude to the board, management, and all employees for their contributions and support from shareholders and business partners[57]. - The announcement is made by the executive director and chairman of the company, reflecting the leadership structure as of August 26, 2024[58]. Market Strategy and Adaptation - The company operates and manages department stores, shopping centers, outlet malls, and supermarket networks in China, and provides credit services in Malaysia[7]. - The company aims to adapt to changing market demands and consumer behavior while leveraging its extensive operational experience[26]. - Gross margin for merchandise sales decreased from 13.5% in the first half of 2023 to 13.2% in the first half of 2024[32]. - Net financing costs decreased by RMB 1.5 million or 0.7% to RMB 220.4 million in the first half of 2024[40].

Revenue Performance - For the three months ended March 30, 2024, the total operating revenue was RMB 1,052.8 million, a decrease of RMB 53.2 million or 4.8% compared to the same period last year[1]. - The total sales revenue (including VAT) for the same period was RMB 2,666.5 million, down 7.3% year-on-year, primarily due to a shift in consumer behavior post-pandemic[7]. - Same-store sales decreased by 10.3% compared to the same period last year[7]. - Total sales for the three months ended March 30, 2024, amounted to RMB 2,094.7 million, a decrease of 10.2% from RMB 2,331.4 million in the same period of 2023[37]. Profitability - Operating profit for the three months was RMB 143.9 million, an increase of RMB 39.7 million or 38.1% from RMB 104.2 million in the same period last year[1]. - The profit attributable to the owners of the company was RMB 19.1 million, down from RMB 26.6 million in the same period last year[22]. - The total operating expenses, excluding procurement and inventory changes, decreased by RMB 24.9 million or 5.5% to RMB 427.7 million for the three months ended March 30, 2024[38]. Market Expansion - The group opened a new supermarket in Mianyang, Sichuan Province, in January 2024, indicating ongoing market expansion efforts[8]. - The group operates 43 Parkson stores across 28 cities in China and Laos as of March 30, 2024[40]. Financial Position - Non-current liabilities included interest-bearing bank borrowings of RMB 148.9 million as of March 30, 2024, compared to RMB 2,330.6 million as of December 30, 2023[5]. - Current liabilities amounted to RMB 4,797.4 million as of March 30, 2024, compared to RMB 2,841.8 million as of December 31, 2023[28]. - Non-current assets as of March 30, 2024, totaled RMB 7,995.4 million, a slight decrease from RMB 8,041.7 million as of December 31, 2023[28]. - Trade receivables increased to RMB 437.7 million as of March 30, 2024, from RMB 391.9 million as of December 31, 2023[28]. Cash Flow - The net cash flow from financing activities was negative at RMB 313.0 million[6]. - Cash and cash equivalents at the end of the period were RMB 1,550.3 million, reflecting a decrease of RMB 133.3 million[32]. - The group reported a net cash flow from operating activities of RMB 198.9 million for the period[31]. - The group has entered into a financing agreement for a maximum amount of RMB 2,500 million with a syndicate of banks, aimed at refinancing existing loans maturing in January 2025[29].

Performance and Market Conditions - The overall performance of Parkson improved compared to 2022, with the lifting of pandemic control measures in China contributing to a gradual return to normalcy in work and daily life [29]. - The global economic environment in 2023 posed multiple challenges, including inflation risks and geopolitical tensions, impacting overall market conditions [23]. - Parkson's management anticipates further recovery and growth opportunities as consumer confidence returns post-pandemic [29]. - The overall economy in PRC is still growing, with significant market growth potential despite uneven regional development and ongoing challenges [30]. Store Operations and Expansion - As of December 31, 2023, Parkson operated and managed 43 stores and 2 Parkson Newcore City Malls across 29 cities in China and Laos [9]. - The Group successfully opened two new Parkson shopping malls in 2023, expanding its presence in Jiangxi Province with a focus on "Multiple Stores in a City" and "Model Innovation" strategies [30]. - The Group plans to open two new stores in Mianyang City, Sichuan Province, with one supermarket expected to open in January 2024 and another store anticipated in 2026 [38]. - The Group plans to open its third store in Datong City by 2025, following a cooperation agreement with Datong Dezhiyuan Real Estate Development Co., Ltd. [45]. Financial Performance - The Group recorded gross sales proceeds of RMB10,093.9 million, an increase of 9.5% over last year, driven by increased rental income and a Same Store Sales (SSS) growth of 7.1% [30]. - The Group's net profit attributable to ordinary equity holders for 2023 was approximately RMB66,413,000, resulting in a basic earnings per share of RMB0.025 [43][46]. - Total gross sales proceeds (GSP) increased by 9.5% to RMB10,093.9 million in 2023, driven by a 72.0% increase in rental income and a 7.1% increase in same-store sales (SSS) [51][53]. - The Group's total operating revenues for 2023 were RMB4,177.49 million, with a profit from operations of RMB505.481 million [46]. Merchandise and Product Strategy - The company focuses on tailoring merchandise assortments and brand mixes on a store-by-store basis to better serve middle to middle-upper end consumers [10]. - Parkson offers a wide range of internationally renowned brands across four main categories: Fashion & Apparel, Cosmetics & Accessories, Household & Electrical, and Groceries & Perishables [10]. - The Group aims to diversify its income sources and explore various business models to drive sustainable development amidst ongoing market changes and competition [38]. - Total merchandise sales increased by RMB432.4 million or 5.9% to RMB7,791.2 million in 2023, with concessionaire sales rising by 8.5% while direct sales decreased by 0.5% [57]. Corporate Governance and Management - The Company has fully complied with the Corporate Governance Code (CG Code) for the year ended December 31, 2023 [157]. - The Board consists of 6 Directors, including 2 executive Directors, 1 non-executive Director, and 3 Independent non-executive Directors [151]. - The Company has adopted a Director Nomination Policy to maintain a diverse and skilled board of directors [110]. - The Company recognizes the importance of good corporate governance for its healthy growth [160]. Employee and Compensation Practices - The Group employed 3,826 employees as of December 31, 2023, ensuring compensation aligned with market standards [79]. - The remuneration for senior management (excluding directors) for the year ended December 31, 2023, includes 3 individuals earning between HK$1,000,001 and HK$2,000,000, 1 individual earning between HK$2,000,001 and HK$3,000,000, and 1 individual earning between HK$3,000,001 and HK$4,000,000 [112]. - The Company emphasizes a corporate culture based on dedication, integrity, team spirit, customer orientation, and mutual respect [171]. Risk Management and Financial Oversight - The Group's financial policies include measures to minimize exposure to interest rate fluctuations [82]. - The Audit Committee held four meetings during the year, reviewing the Group's quarterly, interim, and annual performance, as well as financial and risk management matters [91]. - The Company will continue to enhance its corporate governance practices to align with the growth of its businesses [157].

Financial Performance - For the fiscal year ending December 31, 2023, total operating revenue increased to RMB 4,177.5 million, representing an 11.4% year-on-year growth[2]. - Same-store sales rose by 7.1% in the fiscal year 2023[3]. - Total sales revenue (including VAT) for the fiscal year 2023 was RMB 10,093.9 million, up 9.5% compared to the previous year[3]. - Operating profit for the fiscal year 2023 was RMB 505.5 million, a significant recovery from an operating loss of RMB 11.0 million in 2022[3]. - Profit before tax for the fiscal year 2023 was RMB 86.6 million, compared to a loss before tax of RMB 413.2 million in 2022[3]. - The profit attributable to owners of the company for the fiscal year 2023 was RMB 66.4 million[4]. - Basic and diluted earnings per share for the fiscal year 2023 were RMB 0.025, recovering from a loss of RMB 0.146 in 2022[6]. - The company's pre-tax profit for 2023 was RMB 66,413,000, compared to a loss of RMB 383,599,000 in 2022, indicating a significant turnaround in performance[31]. Revenue Sources - Total sales revenue for 2023 reached RMB 9,080,998 thousand, an increase of 9.9% compared to RMB 8,262,172 thousand in 2022[19]. - Self-operated sales amounted to RMB 2,130,142 thousand in 2023, slightly down from RMB 2,139,942 thousand in 2022[19]. - Franchise sales revenue increased to RMB 5,661,107 thousand in 2023, up from RMB 5,218,896 thousand in 2022, reflecting a growth of 8.5%[19]. - Other operating income rose to RMB 1,289,749 thousand in 2023, compared to RMB 903,334 thousand in 2022, marking a significant increase of 42.7%[19]. - Revenue from customer contracts, including self-operated sales, consignment sales commissions, and consulting and management service fees, accounted for 69.4% of total operating revenue, increasing by RMB 43.8 million or 1.5% compared to 2022[55]. Assets and Liabilities - Total assets decreased to RMB 8,234.978 million in 2023 from RMB 8,735.732 million in 2022[11]. - Current liabilities increased slightly to RMB 2,841.805 million in 2023 from RMB 2,816.118 million in 2022[11]. - The net asset value remained stable at RMB 3,317.147 million in 2023, compared to RMB 3,318.279 million in 2022[11]. - The total equity as of January 1, 2023, was RMB 3,318,279 thousand, a decrease from RMB 3,449,569 thousand as of December 31, 2022, indicating a decline of 3.8%[18]. - The company’s total liabilities increased from RMB 480,425,000 in 2022 to RMB 702,563,000 in 2023, reflecting a growth of approximately 46.2%[36]. Expenses - Total employee costs decreased from RMB 536,636,000 in 2022 to RMB 485,837,000 in 2023, reflecting a reduction of approximately 9.5%[24]. - The total rental expenses for 2023 amounted to RMB 90,132,000, a significant increase from RMB 15,214,000 in 2022, primarily due to the absence of COVID-19 related rent concessions[24]. - The net financing cost increased by RMB 43.8 million or 11.0% to RMB 442.8 million, primarily due to increased interest on bank loans[63]. - Operating expenses for the cost of goods sold decreased by RMB 14.4 million or 0.8% to RMB 1,835.7 million, attributed to a slight decline in direct sales leading to reduced procurement from third-party suppliers[56]. Government Grants and Taxation - The company received government grants totaling RMB 14,834 thousand in 2023, up from RMB 10,285 thousand in 2022, representing a growth of 44.5%[22]. - The company reported a current tax expense of RMB 89,367,000 for 2023, compared to RMB 51,575,000 in 2022, which is an increase of about 73%[28]. Market and Strategic Developments - The overall retail sales in China grew by 7.2% in 2023, reflecting a gradual recovery in consumer spending post-pandemic[42]. - The company aims to adapt to evolving consumer demands and market changes through flexible, customer-centric strategies and cost management[40]. - The company is focusing on its core business to become a leading operator of fashion commercial spaces, leveraging its experience and strategies developed over the past 30 years[49]. - The macroeconomic environment in China is expected to stabilize in 2024, although challenges and uncertainties remain[40]. Corporate Governance - The company fully complied with the corporate governance code as per the Hong Kong Stock Exchange Listing Rules for the year ended December 31, 2023[78]. - The board of directors confirmed adherence to the standard code of conduct for securities trading throughout the year ended December 31, 2023[79]. - An audit committee has been established to review financial reports and maintain appropriate relationships with external auditors for the year ended December 31, 2023[80]. - The auditor confirmed that the preliminary performance announcement figures are consistent with the audited consolidated financial statements for the year ended December 31, 2023[81]. Future Plans - The company successfully opened two new Parkson shopping centers in 2023, expanding its presence in Jiangxi Province with a total of 43 stores across 29 cities in China and Laos[44]. - The company plans to open two new stores in Mianyang, Sichuan Province, with one set to launch in January 2024 and another anticipated in 2026[46].