2024-03-27-深交所-特_力Ｂ_2023年年度报告（英文版）_236页_1mb

Shenzhen Tellus Holding Co., Ltd. 2023 Annual Report Summary

Core Content Overview

This summary outlines the key aspects of Shenzhen Tellus Holding Co., Ltd.'s 2023 Annual Report, including important notices, company profile, financial performance, and business operations.

Important Notices and Interpretations

• The annual report is guaranteed to be true, accurate, and complete by the Board of Directors, Board of Supervisors, and senior executives.
• The financial report is also verified by the head of the company, the person in charge of accounting, and the accounting firm.
• All directors attended the board meeting to review the report.
• The report complies with the disclosure requirements of the Shenzhen Stock Exchange for jewelry-related businesses.
• Forward-looking statements do not constitute a substantial commitment to investors.
• The profit distribution plan for 2023 involves a cash dividend of RMB 0.31 per 10 shares, with no bonus shares or capitalization of reserves.

Company Profile and Financial Highlights

I. Company Information

• Stock Abbreviation: Tellus A and Tellus B
• Stock Code: 000025 and 200025
• Stock Exchange: Shenzhen Stock Exchange
• Company Name (Chinese): Shenzhen Tellus Holding Co., Ltd.
• Company Name (English): ShenZhen Tellus Holding Co., Ltd.
• Legal Representative: Fu Chunlong
• Registered Address: 3F, Tellus Building, No. 56, 2nd Shuipei Road, Luohu District, Shenzhen
• Postal Code: 518020
• Office Address: Same as registered address
• Website: www.tellus.cn
• Email: ir@tellus.cn

II. Contact Information

• Board Secretary: Qi Peng
• Securities Representative: Liu Mengei
• Board Secretary Email: ir@tellus.cn
• Securities Representative Email: liuml@tellus.cn
• Phone Numbers: (0755) 83989390 and (0755) 88394183
• Fax: (0755) 83989386

III. Information Disclosure

• Annual Report Website: Shenzhen Stock Exchange (www.szse.cn)
• Selected Newspapers: Securities Times and CNINFO (www.cninfo.com.cn)
• Annual Report Inspection Location: Secretariat of the Board of Directors

IV. Changes in Registration

• The company's main business has shifted from automobile sales to jewelry third-party services, commercial complex operation, and property leasing.
• SDG Group holds 49.09% of the company's total shares, with 210,391,621 voting shares.
• Shenzhen SASAC indirectly holds equity through SIHC, following a voting rights entrustment agreement.

V. Accounting Firm

• Accounting Firm: Grant Thornton China (Special General Partnership)
• Office Address: 5F of Scitech Plaza, No. 22, Jianguomenwai Street, Chaoyang District, Beijing
• Signing Accountants: Wu Liang, Xie Mingming

Financial Performance

VI. Major Accounting Data and Financial Indicators

IX. Non-recurring Profit or Loss Items

• Total Non-recurring Gains/Losses (2023): RMB 27,868,423.63

• Items and Amounts:

  • Gains on disposal of non-current assets: RMB 69,475,478.10
  • Government grants: RMB 6,476,027.99
  • Fair value changes of financial assets: -RMB 9,882,368.06
  • Other non-operating revenues/expenses: RMB 2,089,529.20
  • Other gains/losses: -RMB 36,363,757.77
  • Less: Effect on income tax: -RMB 13,674,541.65
  • Effect on minority equity: -RMB 9,598,055.82

• The company does not have any other non-recurring gains or losses.

Management Discussion and Analysis

I. Industry Development

(I) Gold and Jewelry Industry

• Macro-environment:

  • Global geopolitical tensions and trade protectionism affected the industry.
  • Domestic economic stability and recovery of the jewelry consumer market.
  • Policies to regulate and promote legal trade.

• Industry Overview:

  • Gold and jewelry retail sales grew by 13.3% year-on-year in 2023.
  • The market is expected to continue expanding, with increased consumer demand for gold.
  • Industry consolidation is increasing, with leading companies focusing on brand upgrades and product innovation.
  • Consumer demand is shifting from wedding scenarios to self-wearing and gifting.

• Development Trends:

  • Opportunities for future growth, especially in new gold product categories and lower-tier markets.
  • Digitalization and technology are enhancing customer experience, operational efficiency, and cost reduction.
  • The company is promoting standardization, informatization, and compliance in the jewelry industry.

(II) Commercial Real Estate Leasing Industry

• Market Trends:

  • Office building rents in major business districts declined in the first half of 2023, with moderate recovery in the third quarter.
  • Vacancy rates increased in some cities due to new supply.

• Company Strategy:

  • Enhancing operational efficiency and service quality.
  • Promoting green and low-carbon practices.
  • Transitioning from traditional leasing to commercial property operation.
  • Focusing on brand value enhancement and innovative industrial projects.

II. Main Business

• Main Business Areas:

  • Jewelry Third-party Services
  • Commercial Complex Operation
  • Property Leasing

• Jewelry Third-party Services:

  • The company has established subsidiaries such as Shenzhen Jewelry, Guorun Gold, Tellus Treasury, and Shanghai Fanyue.
  • Operates a comprehensive trade platform for jewelry and jade.
  • Offers gold circulation, third-party depository, and other services.
  • Sales revenue composition (2023):
    • Wholesale: RMB 152,304.14 (1.23% margin)
    • Other Services: RMB 1,903.03 (44.77% margin)
    • Total: RMB 154,207.17 (1.76% margin)

• Production Model:

  • The company primarily uses a commissioned processing model for gold and related products.
  • Diamonds, colored gemstones, and other products are not involved in processing.

• Purchase Model:

  • Gold: Purchased from Shanghai Gold Exchange or leased from banks.
  • Diamonds: Purchased from overseas diamond suppliers via Shanghai Diamond Exchange.
  • Other Jewelry and Jade: Purchased from overseas suppliers and imported through Shenzhen Jewelry.

• Physical Store Operations:

  • The Guorun Direct-sales Store opened in September 2023.
  • Achieved a sales volume of 55.89 kg and revenue of RMB 23.1971 million in Q4 2023.

• Online Sales:

  • Tmall Store opened in November 2023, generating RMB 5.3689 million in revenue with a 1.64% margin.
  • JD.com Store opened in November 2023, achieving RMB 7.8716 million in revenue with a 0.98% margin.

• Inventory:

  • As of December 31, 2023, the inventory balance was RMB 178.4258 million.

Key Takeaways

• The company has undergone strategic transformation, shifting focus from automobile sales to jewelry services and commercial property operations.
• Financial performance showed growth in operating revenue and net profit, with a focus on operational efficiency and digital transformation.
• Online sales and physical stores have been developed to meet diverse consumer needs.
• The company is building a third-party service platform and enhancing brand value through innovation and compliance.