Financial Performance - In 2023, the company's revenue was RMB 1,249 million, a significant increase of 86.1% in gold sales compared to the previous year, driven by a surge in gold prices[24]. - The group’s revenue for the year ended December 31, 2023, was approximately RMB 500.5 million, a significant decrease of about 72.0% compared to RMB 1,790.3 million in 2022, primarily due to the "Agricultural and Pastoral" S2B2C platform still being in the consolidation phase[51]. - Online sales channels recorded sales of approximately RMB 358.5 million, an increase of about 44.1% from RMB 248.7 million in 2022, driven by the acceleration of online sales due to the COVID-19 pandemic[55]. - Offline retail and experience network achieved sales of approximately RMB 52.0 million, a growth of about 63.6% compared to RMB 31.8 million in 2022, mainly due to increased sales of gold products in the Shenzhen jewelry showroom[56]. - The fresh food retail business reported sales of approximately RMB 90.1 million, a drastic decline of about 94.0% from RMB 1,509.8 million in 2022, attributed to the consolidation phase of the S2B2C platform and a decrease in pig prices[57]. - Gross profit for the year was approximately RMB 37.4 million, a decrease of about 28.6% from RMB 52.4 million in 2022, while the overall gross margin increased from about 2.9% to approximately 7.5%[59]. - The company recorded a loss attributable to owners of approximately RMB 35.0 million for the year ended December 31, 2023, compared to RMB 25.6 million in 2022, primarily due to lower gross margins from gold product sales and reduced sales in the fresh food retail segment[65]. Business Strategy and Diversification - The company is diversifying its business by entering the essential consumer goods sector, particularly in fresh food retail[23]. - The company has launched a new brand, SISI, focusing on lab-grown diamonds, which is expected to gain significant market traction in the coming years[26]. - The company plans to enhance its marketing and product design for the SISI brand, targeting younger consumers who prioritize sustainability[26]. - The company has shifted its strategy from rapid expansion in the pork market to focusing on more competitive categories like beef and lamb, establishing new business lines such as "Beef Cabinet" and "Lamb Cabinet"[44]. - The company is exploring suitable business opportunities within and outside the jewelry industry to mitigate commercial risks[23]. - The company plans to strengthen product innovation and expand its new retail jewelry business, aiming to establish SISI as the "first brand of DNA-cultivated diamonds" while deepening its market presence across various sectors[49]. Marketing and Sales Channels - The jewelry new retail business accounted for approximately 80.9% of total sales, with online sales channels contributing 13.9% and offline retail networks 71.6%[9]. - The online sales channels have been enhanced through partnerships with major platforms like JD.com, Tmall, and Douyin, significantly increasing brand awareness among over 100 million households daily[35]. - The new SISI brand emphasizes a unique marketing approach with a focus on emotional connections, targeting various life scenarios with customized diamond products[30]. - The company plans to leverage high-margin cultivated diamonds by sharing profits with channel partners, allowing for rapid channel expansion with low operational costs[30]. Financial Position and Assets - Total assets decreased to RMB 1,511 million in 2023 from RMB 1,587 million in 2022[11]. - The net assets of the company were RMB 1,397 million in 2023, showing a slight recovery from RMB 1,327 million in 2022[13]. - Bank borrowings as of December 31, 2023, amounted to approximately RMB 94.0 million, an increase from RMB 84.1 million in 2022, with RMB 14.0 million at fixed rates and RMB 80.0 million at floating rates[68]. - The company maintained a net cash position with a net asset liability ratio of approximately -24.4% as of December 31, 2023, compared to -28.4% in 2022[68]. Governance and Corporate Structure - The company has maintained a strong commitment to corporate governance, ensuring compliance with industry standards and regulations[94]. - The board consists of two executive directors and three independent non-executive directors, ensuring a balanced and independent decision-making process[104]. - The board is responsible for overseeing the implementation of strategies and plans adopted by the company, ensuring effective corporate governance[105]. - The company has adopted a transparent process for the appointment and re-election of directors, ensuring shareholder involvement[112]. - The board has adopted a diversity policy aiming for at least one female member by December 31, 2024[116][117]. - The audit committee, consisting of three independent non-executive directors, held three meetings during the year ending December 31, 2023[131][136]. Risk Management and Compliance - The company is committed to addressing any deficiencies in risk management and internal controls to maintain an effective internal control system[146]. - The board is responsible for reviewing the effectiveness of the risk management and internal control systems annually, ensuring they are adequate to manage risks associated with achieving business objectives[148]. - The company has established a risk management team to assist the board in monitoring the effectiveness of risk management and internal control systems, conducting annual risk assessments and reporting[144]. - The company confirmed that there are no significant uncertainties related to events that may cast doubt on its ability to continue as a going concern[140]. Employee and Stakeholder Relations - Employees are considered the most important asset of the group, with a focus on providing competitive compensation and performance evaluation systems to reward outstanding employees[196]. - The company recognizes the importance of stakeholder support, including employees, customers, suppliers, and shareholders[195]. - The company has established channels for ongoing dialogue with shareholders to gather their opinions and feedback[177]. Future Outlook - The company remains optimistic about the future market, particularly in gold and silver prices, which are expected to rise due to the Federal Reserve's loose monetary policy[49]. - The company provided guidance for the next fiscal year, projecting revenue growth of A% and an expected total revenue of $B million[86].
金猫银猫(01815) - 2023 - 年度财报