Hong Kong IPO disclosure precedents · 43 companies, 43 items
Decline in overall or channel/product gross margin during the track record, with causes such as pricing pressure, industry oversupply, new product ramp-up, project mix or FX, often followed by recovery.
In particular, our gross profit margin decreased slightly from 11.1% in 2020 to 9.0% in 2021, mainly attributable to the increased spending on enhanced promotional efforts to improve our brand influence, so as to support our rapid store network expansion.
Summary · p. 11
Subsequently, our gross profit margin improved from 9.0% in 2021 to 17.4% in 2022, mainly attributable to (i) products of higher margin, such as black beef tripe and thinly sliced lamb for hotpot and pork belly and skewers for barbecue; (ii) improved procurement cost-effectiveness of raw materials and food products due to economies of scale and brand awareness (for instance, the procured volume of beef products increased from approximately 9,800 tons in 2021 and further to 17,000 tons in 2022); and (iii) improved manufacturing costs due to the acquisition of our self-operated production facilities.
We recorded gross margins of 41.1%, 45.1%, 41.8% and 40.7% in 2019, 2020, 2021 and 2022, respectively.
Business · p. 175
We experienced a decrease in our overall gross margin in 2021 compared to 2020 primarily attributable to (i) the decreased gross margin of self-branded fitness products segment as we offered more discounts to incentivize user purchase and (ii) decreased gross margin of membership and online paid content segment as we incurred increased content related cost to further expand our content offerings.
Business · p. 175
We expect to experience an increase in gross margin as we intend to efficiently manage costs and expenses as a percentage of total revenue and further benefit from operating leverage.
The gross profit margin for operating lease services decreased from 53.1% for the year ended December 31, 2021 to 44.7% for the year ended December 31, 2022, primarily because the increase in cost of sales for providing operating lease services outpaced the increase in our revenue generated from operating lease services, which was primarily due to a decrease in the utilization rate for our equipment mainly attributable to the suspension of our operating leases with customers and suspension of operations of our service outlets in 2022 as a result of the COVID-19 pandemic.