Financial Performance - For the year ended December 31, 2023, the Group's revenue reached RMB1,349 million, representing a 19.6% year-on-year growth[8]. - The Group turned around from a loss to a profit, with profit attributable to owners of the Company amounting to RMB87.8 million, compared to a loss of RMB24.4 million in 2022[8]. - Earnings per share were RMB0.06, recovering from a loss per share of RMB0.017 in 2022[8]. - The Group's net profit attributable to shareholders for the year ended December 31, 2023, was RMB 87.8 million, compared to a loss of RMB 24.4 million in 2022[29]. - Total sales proceeds rose by 25.2% year-on-year to RMB3,154.1 million from RMB2,520.2 million in the previous year[61]. - The Group's operating profit before tax was RMB21.5 million for the year, compared to an operating loss of RMB15.9 million in 2022[78]. - Adjusted EBITDA for the year increased by 9.6% to RMB434.3 million from RMB396.1 million in 2022, driven by a recovery in sales and revenue[82]. - The total profit for the year after tax was RMB 82.16 million, compared to RMB 78.85 million in the previous year[147]. Market and Economic Outlook - The Central Government has designated 2024 as the "Year of Consumption Promotion," which is expected to boost retail market growth[9]. - The Chinese economy is anticipated to sustain recovery momentum, positively impacting consumer confidence and retail market growth[22]. - The outlook for the Chinese economy remains stable and positive, with expectations for improvement in the retail market[196]. Customer Engagement and Marketing Strategies - The Group plans to enhance its use of artificial intelligence (AI) analytic tools to better understand consumer preferences and improve marketing activities[10]. - The Group aims to optimize the shopping environment and increase experiential content to attract consumers and encourage frequent visits[11]. - The Group will continue to improve its VIP membership program with exclusive offers and benefits to enhance customer experience[10]. - The Group plans to enhance customer engagement through AI tools to analyze consumer behavior and optimize product offerings and marketing activities[36]. - The Group aims to leverage both physical and online business channels, utilizing social media to enhance customer shopping experiences and drive foot traffic to stores[35]. - The Group is enhancing its VIP membership program by utilizing AI technology to analyze purchasing habits and provide personalized recommendations to increase customer satisfaction and loyalty[171]. - The Group will leverage both physical and online business channels to increase brand exposure and attract consumers[195]. Operational Efficiency and Cost Management - Total selling and distribution costs increased by 5.9% year-on-year to RMB 612.1 million, while the percentage of these costs to total sales decreased to 19.4% from 22.9% in 2022[31]. - General administrative expenses rose by 10.8% year-on-year to RMB 261.3 million, primarily due to increased staff costs as business operations normalized[31]. - Staff costs (excluding directors' emoluments) increased by 8.1% year-on-year to RMB 208.4 million, reflecting the return to normal business operations and salary increments[31]. - The Group's total finance costs for the year amounted to approximately RMB181.9 million, an increase of 57.1% from RMB115.7 million in 2022, primarily due to higher bank loan interest and lease liabilities[82]. Environmental and Sustainability Initiatives - The Group aims to reduce total waste intensity to 1.09 tons/sq.m. by 2030, a 2% reduction from 2023 levels[156]. - The Group has established a sewage treatment system in compliance with government standards for urban sewage treatment[157]. - The Group is committed to minimizing overall energy consumption through scientific management and appropriate controls in daily operations[164]. - The Group has established disposal agreements with municipal government departments for the collection and treatment of kitchen waste, ensuring compliance with government regulations[161]. - The Group aims to reduce total water consumption intensity to 1.29 ton/sq.m. by 2030, representing a 3% reduction from the 2023 level[181]. - The total emissions for the financial year 2023 amounted to 725,916.74 tons, with an emission intensity of 1.11 ton/sq.m.[184]. - The total greenhouse gas emissions of carbon dioxide for the financial year 2023 were 84,518.03 tons, with an intensity of 0.13 ton/sq.m.[185]. - The Group aims to reduce greenhouse gas emissions intensity to 0.13 tons/sq.m by 2030, a 3% reduction from 2023 levels[190]. Investment and Asset Management - The Group's investment property is primarily composed of leasehold land and buildings, held for long-term rental yields or capital appreciation[95]. - The Group pledged assets to secure bank facilities amounting to RMB 3,300 million, an increase from RMB 2,240 million in the previous year[128]. - The Group did not make any significant investments or acquisitions during the year, nor were there any material disposals of subsidiaries, associates, or joint ventures[128]. - The Group's property, plant, and equipment in China had a book value of approximately RMB 3,631 million, down from RMB 3,786 million in 2022[128]. Performance Metrics and Sales Analysis - Sales in the first half of the year increased by 50.7% year-on-year, but growth slowed to approximately 5.8% year-on-year in the second half due to cautious consumer sentiment[61]. - The Group's share of profit in its associate Beiren Group increased by 68.9% year-on-year to RMB185.0 million[78]. - The average concession rate for the year slightly increased by 0.3 percentage points to 15.3%[137]. - The conversion rate and average transaction value decreased by 8.3 percentage points and 9.7% year-on-year to 55.5% and RMB 464, respectively[137].
利福中国(02136) - 2023 - 年度财报