BUSEN(SZ:002569)2023-07-05 16:00Financial Performance - The company's operating revenue for 2022 was ¥138,315,708.87, a decrease of 50.43% compared to ¥279,012,085.49 in 2021[22]. - The net profit attributable to shareholders was -¥71,027,828.25 in 2022, representing a decline of 318.17% from ¥32,556,654.38 in 2021[22]. - The basic earnings per share for 2022 was -¥0.49, a decrease of 313.04% from ¥0.23 in 2021[22]. - The total assets at the end of 2022 were ¥295,613,214.70, down 22.72% from ¥382,518,666.52 at the end of 2021[22]. - The net assets attributable to shareholders decreased by 35.86% to ¥159,227,754.67 at the end of 2022 from ¥248,263,647.45 at the end of 2021[22]. - The company's cash flow from operating activities was -¥21,549,622.24 in 2022, an improvement of 32.35% compared to -¥31,852,225.11 in 2021[22]. - The company reported a significant decline in shirt sales, which fell by 60.60% to ¥16,584,583.23 in 2022[47]. - The company reported a net loss of 70,252,556.70 CNY for the year[76]. - The company reported a cumulative net loss of RMB 341.17 million as of December 31, 2022, with negative cash flow from operating activities for three consecutive years[181]. Business Operations - The company continues to focus on the design, production, and sales of men's business casual clothing, enhancing product quality and variety[33]. - The company has maintained its independent R&D design model, actively participating in fashion shows to align with market trends[34]. - The company has established long-term partnerships with quality suppliers to strengthen product quality control from the source[36]. - The company maintains a dual production model, combining in-house and outsourced production to optimize costs and maximize revenue[37]. - The company aims to enhance its direct sales model and support high-performing franchisees to improve overall sales performance[38]. - The company is actively expanding its new retail business to integrate online and offline sales channels, enhancing its market reach[41]. - The company is focused on optimizing its innovation operating model and market segmentation[93]. - The company aims to enhance its men's clothing market and improve product competitiveness[92]. - The company is committed to developing a new retail model that integrates online and offline sales, emphasizing the importance of e-commerce growth and supply chain efficiency[96]. Risk Factors - The company faces major risk factors including macroeconomic risks, operational underperformance risks, policy risks, and management risks[5]. - The company emphasizes the importance of risk awareness for investors regarding its future operational plans and development strategies[5]. - Rising labor costs pose a risk to the company's profitability, necessitating improved management efficiency and talent retention strategies[100]. - The company faces market competition risks due to a crowded menswear sector, which may impact revenue if consumer confidence does not recover[99]. Governance and Compliance - The company has established a comprehensive governance framework to protect shareholder rights and ensure operational integrity[108]. - The company has implemented a robust internal audit system, with an independent internal audit department reporting directly to the board of directors[107]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate reporting through designated newspapers and websites[108]. - The company is under investigation by the China Securities Regulatory Commission for suspected violations of information disclosure laws[157]. - The company has improved its internal control and information disclosure systems following the investigation[157]. - The company reported zero major defects in financial reporting and four important defects in non-financial reporting during the reporting period[155]. - The company has committed to continuous improvement of its governance documents in line with regulatory requirements[108]. Shareholder Information - The company reported a total shareholding of 41.50 million shares for the current period, with no changes in holdings[114]. - The financial director, Xiao Xia, holds 13.10 million shares, maintaining the same number as the previous period[114]. - The company's major shareholder holds 22.4 million shares, accounting for 15.55% of the total share capital[195]. - Another shareholder, Shanghai Ruizhi Asset Management, holds 16.72 million shares, representing 11.60% of the total share capital[195]. Future Outlook - The company plans to upgrade its clothing business comprehensively and expand into the fashion new retail industry[91]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of 300 million RMB allocated for potential deals[132]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25%[132]. - The company aims to enhance customer experience through improved offline shopping environments and efficient online services, leveraging data analytics for market insights[97]. Employee and Management Information - The total number of employees at the end of the reporting period was 578, with 43 in the parent company and 535 in major subsidiaries[140]. - The company has a stock incentive plan approved in April 2020, which includes a management assessment method[146]. - The total pre-tax remuneration for directors, supervisors, and senior management in the reporting period amounted to 5.12 million CNY[129]. - The company established a comprehensive salary management system, including fixed salary, performance salary, and welfare allowances[141]. Legal and Regulatory Issues - The company faced administrative penalties for failing to disclose important information in a timely manner, leading to regulatory actions[195]. - The company is currently involved in a litigation case with a claim amount of 7.32 million RMB, which is still in progress[192]. - The company is involved in a lawsuit regarding a share transfer agreement, seeking 73.2 million yuan in unpaid transaction fees and interest[193]. - The company is appealing a court decision that dismissed its claims in a previous lawsuit[193].