Financial Performance - The company reported a net profit attributable to shareholders of the parent company of RMB 2,325.04 million for 2021, with a proposed cash dividend distribution of RMB 1.62 per 10 shares, totaling RMB 1,048.11 million (including tax) which represents 45.08% of the net profit[2]. - The company's operating revenue for 2021 was CNY 13,071,038,722.80, representing a 44.88% increase compared to CNY 9,021,862,071.20 in 2020[15]. - The net profit attributable to shareholders for 2021 was CNY 2,325,042,862.20, a 71.36% increase from CNY 1,356,816,474.89 in 2020[15]. - The net cash flow from operating activities reached CNY 5,700,890,811.58, marking a significant increase of 178.00% compared to CNY 2,050,707,496.59 in 2020[15]. - The basic earnings per share for 2021 was CNY 0.36, up 63.64% from CNY 0.22 in 2020[15]. - Total assets at the end of 2021 amounted to CNY 56,210,380,877.13, a 41.13% increase from CNY 39,830,136,184.08 at the end of 2020[15]. - The net profit after deducting non-recurring gains and losses for 2021 was CNY 2,229,169,775.91, which is a 75.72% increase from CNY 1,268,620,833.31 in 2020[15]. - The company reported a weighted average return on equity of 12.43% for 2021, up from 8.41% in 2020[15]. - The company achieved a total sales volume (GMV) of 104.03 billion yuan in 2021, with 13.3 billion yuan generated through its local e-commerce platform and third-party sales platforms[48]. - The company reported a year-on-year revenue increase of 17.63%, with total revenue reaching 704.20 million yuan in 2021 compared to 581.96 million yuan in 2020[47]. Market Position and Expansion - The company operated 421 home furnishing stores across 29 provinces, including 95 directly operated and 326 franchised stores as of December 31, 2021[24]. - The home furnishing market in China exceeded 4.5 trillion yuan, indicating a vast industry space with significant growth potential[22]. - The company has established a strong market position in the home furnishing sector, focusing on customer service and digital integration[23]. - The company signed 46 new stores and opened 49 stores in 2021, bringing the total signed stores to 753 and operational stores to 421[27]. - The company continues to expand its store network and optimize its operational strategies to enhance market presence[40]. - The company plans to enhance store operations through smart fire IoT systems and intelligent building upgrades, aligning with its "big home" and "big consumption" strategy, although direct economic benefits are not quantifiable[94]. - The company is committed to investing in 100 home living malls in county-level cities with populations of at least 300,000 over the next 3-5 years, and 1,000 convenience stores in rural areas[188]. Digital Transformation and Innovation - Digital transformation expenditures exceeded 139 million yuan in 2021, leading to significant breakthroughs in digital initiatives[26]. - The company has established a comprehensive digital transformation strategy, enhancing its online and offline marketing capabilities and improving data acquisition efficiency[28]. - The company aims to transform into an S2B2C digital service platform, enhancing its service capabilities across design, construction, materials, and logistics[111]. - The company is focusing on digital transformation and supply chain enhancements to improve operational efficiency and resilience against risks[96]. - The company has integrated digital transformation to enhance consumer service experiences, connecting design, renovation, and logistics[182]. Governance and Compliance - The company emphasizes the importance of accurate financial reporting, with key executives affirming the truthfulness and completeness of the annual report[2]. - The company has a clear governance structure with a board of directors and supervisory board in place to oversee operations and financial integrity[3]. - The board of directors consists of 12 members, including 4 independent directors, ensuring a balanced governance structure[124]. - The company maintains transparent communication with stakeholders, ensuring the protection of their rights and interests[125]. - The company has implemented strict internal controls and auditing processes to ensure compliance with legal and regulatory requirements[123]. - The company has committed to maintaining compliance with the Company Law of the People's Republic of China and has not engaged in any prohibited activities[194]. Corporate Social Responsibility - The company has donated a total of 10 million RMB to the Zhengzhou Red Cross and provided 430,000 RMB in cash and materials to disaster relief efforts in Henan[185]. - The company has achieved sales of nearly 50 million RMB through its poverty alleviation initiatives, including the establishment of over 30 large agricultural product bases[188]. - The company has implemented measures to enhance environmental protection and sustainability, including smart renovations to reduce energy consumption[178]. - The company has established a green low-carbon development strategy, including the creation of green home improvement standards and a low-carbon public welfare foundation[187]. Future Outlook - The company anticipates a robust growth trajectory in the home furnishing sector, driven by a 12.5% increase in retail sales of consumer goods, with furniture sales rising by 14.5%[101]. - Future guidance suggests a projected revenue growth of approximately 10% for the next fiscal year[134]. - The company plans to continue enhancing its training system and innovate training methods to support digital transformation[161]. - The company is exploring potential mergers and acquisitions to strengthen its market position, with a budget of 2 billion RMB allocated for this purpose[139].

Share Capital and Stock Information - The company completed a private placement of 509,206,798 shares, increasing the total share capital to 6,529,036,899 shares[4]. - The company received approval from the China Securities Regulatory Commission for the private placement on October 10, 2020[4]. - The company’s stock is listed on the Shenzhen Stock Exchange under the code 000785[8]. - The company’s registered address is in Wuhan, Hubei Province, and its office is located in Beijing[8]. - The company’s legal representative is Wang Linpeng[8]. - The total number of shares held by the top 10 shareholders reflects a concentration of ownership, with the top three holding over 60%[199]. - The largest shareholder, Juran Holdings, holds 39.35% of the shares, totaling 2,569,147,817[199]. - Alibaba holds 8.84% of the shares, amounting to 576,860,841[199]. - The issuance of new shares was approved by the China Securities Regulatory Commission on October 10, 2020[196]. - The new shares were listed on December 2, 2020[195]. - The total amount raised from the non-public offering is capped at 456 million RMB[196]. - The number of ordinary shareholders at the end of the reporting period was 19,197, a decrease from 19,268[198]. - The proportion of restricted shares increased from 95.83% to 96.15% after the issuance[190]. - The total number of restricted shares at the beginning of the period was 5,768,608,403, with an increase of 509,206,798 shares, resulting in a total of 6,277,815,201 restricted shares at the end of the period[194]. - The largest increase in restricted shares was from 兴证全球基金管理有限公 司, which added 146,600,566 shares on June 2, 2021[192]. - The total number of restricted shares added by various shareholders on June 2, 2021, amounted to 509,206,798 shares[194]. - The report indicates that no restricted shares were released during the period, maintaining the total at the end of the reporting period[194]. - The data reflects a significant capital increase strategy by the company, with multiple institutional investors participating in the share issuance[192]. Financial Performance - The company's operating revenue for 2020 was approximately ¥8.99 billion, a decrease of 2.56% compared to ¥9.23 billion in 2019[15]. - The net profit attributable to shareholders for 2020 was approximately ¥1.36 billion, representing a significant decline of 56.81% from ¥3.15 billion in 2019[15]. - The net profit after deducting non-recurring gains and losses was approximately ¥1.27 billion, down 39.37% from ¥2.09 billion in the previous year[15]. - The net cash flow from operating activities for 2020 was approximately ¥2.06 billion, a decrease of 7.70% compared to ¥2.23 billion in 2019[15]. - The total assets at the end of 2020 were approximately ¥39.28 billion, an increase of 11.25% from ¥35.31 billion at the end of 2019[15]. - The net assets attributable to shareholders at the end of 2020 were approximately ¥19.67 billion, up 25.38% from ¥15.69 billion at the end of 2019[15]. - The basic earnings per share for 2020 were ¥0.22, a decrease of 59.26% from ¥0.54 in 2019[15]. - The weighted average return on equity for 2020 was 8.58%, down 16.08% from 24.66% in 2019[15]. - In 2020, the total revenue was approximately ¥8.99 billion, a decrease of 2.56% compared to ¥9.23 billion in 2019[60]. - The revenue from rental and franchise management services was ¥6.59 billion, accounting for 73.27% of total revenue, down 20.37% from ¥8.28 billion in 2019[60]. - The sales revenue from goods increased significantly to ¥1.96 billion, representing 21.75% of total revenue, a growth of 330.73% from ¥454 million in 2019[60]. - The company reported a significant decline in average revenue per unit area across all regions, with the Southwest region showing a decrease of 19.32%[54]. - The total revenue for the direct home furnishing stores in 2020 was CNY 581,963.58 million, a decrease of 21.98% compared to the previous year[54]. - The average revenue per unit area for direct home furnishing stores in 2020 was CNY 1,225.63 per square meter, down from CNY 1,570.99 in 2019[54]. - The company reported a significant impairment amount for the target assets, which exceeds the total number of shares compensated by the performance commitment person multiplied by the issue price per share plus the cash amount already compensated[132]. Profit Distribution - The profit distribution plan proposed a cash dividend of 0.52 RMB per 10 shares, based on a total of 6,525,751,295 shares[4]. - The total distributable profit available for shareholders was RMB 340,591,868.40, after accounting for the previous year's cash dividends of RMB 469,546,747.88[118]. - The proposed cash dividend distribution is RMB 0.52 per 10 shares, totaling RMB 339,339,067.34, which represents 24.90% of the net profit attributable to shareholders[118]. - The company will not issue bonus shares or convert capital reserves into share capital for the year 2020[118]. - The remaining undistributed profits will be carried forward to future years for distribution[118]. - The company has maintained a cash dividend policy that ensures at least 30% of the average distributable profit over the last three years is distributed[113]. - The profit distribution plan requires approval from the board of directors and independent directors, ensuring transparency and compliance with regulations[114]. - The company has a structured decision-making process for profit distribution, including communication with minority shareholders[115]. - The cash dividend for 2020 represents 100% of the total distributable profit of CNY 340,591,868.40[122]. - The cash dividend for 2019 was CNY 469,546,747.88, which was 14.88% of the consolidated net profit attributable to shareholders of CNY 3,154,904,168.79[121]. - The company has committed to providing accurate and complete information for major asset restructuring, ensuring compliance with legal disclosure obligations[125]. Business Operations and Strategy - The company aims to leverage digital transformation to address industry pain points and enhance its service platform in the home furnishing sector[24]. - The company has established a digital transformation partnership with Alibaba, significantly enhancing its digital capabilities in sales and order systems[28]. - The company is positioned as a market leader in the home furnishing industry, with competitive advantages in brand, service reputation, scale, and business model[25]. - The company aims to enhance customer experience through a fully digitalized home decoration process, aiming for a customer-centric operational model[36]. - The company plans to open at least 70 new home furnishing stores in 2021, focusing on filling gaps in first and second-tier cities in Central and South China, as well as expanding into third and fourth-tier cities and rural areas[105]. - The company aims to achieve a registered user base of 2 million by the end of 2021 through the launch of a comprehensive home furnishing retail operation platform[106]. - The company is focusing on strategic adjustments and closures of underperforming stores to improve overall profitability[53]. - The company has plans for market expansion and new store openings in various regions, including Guangxi and Jiangxi[51]. - The company is exploring potential mergers and acquisitions to enhance its supply chain efficiency, with a budget of 2 billion RMB earmarked for potential deals[145]. - The company is investing heavily in technology R&D, allocating 10% of its annual revenue towards innovation and product development[145]. - The company has established strategic partnerships with key suppliers to improve product availability and reduce costs[138]. - The company is actively pursuing strategies to enhance its market position and shareholder value through this restructuring initiative[136]. Social Responsibility and Community Engagement - The company donated 10 million yuan to various charitable organizations to support COVID-19 relief efforts and purchased over 10 million yuan worth of medical supplies[180]. - The company established vegetable supply bases in multiple regions, including a 300-acre base in Wuhan with an investment of 1.77 million yuan and a 2,700-acre base with an investment of 7.5 million yuan[182]. - The company achieved nearly 100 million yuan in sales from its poverty alleviation products through 15 consumer poverty alleviation counters and one dedicated pavilion[182]. - The company has developed a poverty alleviation model that includes "order agriculture + poverty alleviation counters + new retail platform," benefiting over 200 households and enterprises[182]. - The company provided 20 million yuan in group insurance for employees during the pandemic, covering COVID-19 related health issues[180]. - The company implemented a rent and management fee waiver for eligible merchants affected by the pandemic to support their operations[187]. - The company has committed to a green development strategy, focusing on energy conservation and reducing paper usage through digitalization[186]. - The company was recognized as "2020 Capital Operation Benchmark" and maintained a commitment to sustainable development and shareholder value creation[179]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 12% to 15%[147]. - Future outlook indicates a projected revenue growth of 20% for the upcoming fiscal year, driven by new product launches and market expansion strategies[139]. - The company plans to expand its market presence by entering three new provinces, aiming for a 10% market share in these regions within two years[127]. - A strategic acquisition of a local competitor is anticipated to enhance the company's supply chain efficiency and is expected to close by Q3 2021[128]. - The company is investing 500 million RMB in research and development for innovative retail technologies over the next two years[127]. - The company plans to implement a new customer loyalty program, expected to increase repeat purchases by 15%[147]. - Overall, the company remains committed to sustainable growth and enhancing shareholder value through strategic initiatives[146].

Asset Restructuring - The company completed a major asset restructuring by acquiring 100% equity of the home furnishing chain for a valuation of CNY 356.5 million, with shares issued at CNY 6.18 per share, resulting in 5,768,608,403 shares being registered[5]. - The company completed the acquisition of 100% equity in a home furnishing chain in December 2019, leading to a change in actual control[17]. - The major asset restructuring was approved by the China Securities Regulatory Commission on November 28, 2019, involving the acquisition of 100% equity in a home furnishing chain[135]. - The company is in the process of a significant asset restructuring involving the acquisition of 100% equity of Beijing Juran Home New Retail Chain Group Co., Ltd[174]. - The company guarantees the authenticity and completeness of the information provided for the major asset restructuring, assuming responsibility for any misrepresentation[158]. - The company has committed to maintaining the independence of Wuhan Zhongshang's management and financial personnel, ensuring no dual roles or compensation from controlled enterprises[161]. - The company guarantees that the shares obtained from the restructuring will be prioritized for performance compensation commitments and will not be pledged to evade obligations[175]. Financial Performance - The home furnishing chain achieved a net profit attributable to the parent company of CNY 2,117.3752 million in 2019, fulfilling the performance commitment for the year[6]. - The company's operating revenue for 2019 was approximately ¥9.08 billion, representing a 7.94% increase from ¥8.42 billion in 2018[17]. - The net profit attributable to shareholders for 2019 was approximately ¥3.13 billion, a significant increase of 60.08% compared to ¥1.95 billion in 2018[17]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥2.09 billion, up 13.56% from ¥1.84 billion in 2018[17]. - The company reported a basic earnings per share of ¥0.54 for 2019, reflecting a 50% increase from ¥0.36 in 2018[17]. - The company reported a net profit attributable to shareholders of the parent company for 2019 of RMB 3,125,866,652.17, with a net profit of RMB 74,759,481.76 for the parent company[127]. - The net profit attributable to the parent company for the years 2019, 2020, and 2021 is projected to be no less than CNY 2,060.27 million, CNY 2,416.02 million, and CNY 2,719.40 million respectively[153]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 0.78 per 10 shares based on a total share capital of 6,019,830,101 as of December 31, 2019[6]. - The proposed cash dividend for 2019 is RMB 0.78 per 10 shares, totaling RMB 469,546,747.88, which accounts for 15.02% of the net profit attributable to shareholders[127][130]. - The cumulative cash dividends distributed over the last three years amount to RMB 519,791,087.48, with a cash dividend payout ratio of 15.02% in 2019 and 14.05% in 2017[130]. - The company has a policy to distribute at least 30% of the average distributable profit over the last three years as cash dividends, provided cash dividend conditions are met[122]. Store Operations and Expansion - As of December 31, 2019, the company operated 355 home furnishing stores across 29 provinces, including 92 direct-operated and 263 franchised stores[25]. - The company added 77 new home furnishing stores in 2019, bringing the total number of operating stores to 355 by the end of the year[40]. - The company plans to continue expanding its market presence through new store openings and franchise agreements[53]. - The company opened 41 new stores in 2019, with a total operational area of approximately 1,000,000 square meters[54]. - The company is expanding its presence in various provinces, including Hunan, Fujian, and Inner Mongolia, to enhance market reach[54]. - The company employs a franchise model for most of its new stores, allowing for rapid expansion with lower capital expenditure[55]. Digital Transformation and Technology - The company is collaborating closely with Alibaba to enhance online and offline integration, including the development of a new retail POS system and a digital sales system[35]. - The company completed the digital transformation of 110 smart stores by the end of 2019, integrating various aspects such as products, membership, and payment[43]. - The company is actively developing a smart logistics and distribution system to enhance its supply chain capabilities, leveraging technologies such as AI and big data[36]. - The company is focusing on digital transformation by leveraging local stations and Taobao live streaming to create an online-offline consumption loop[108]. Market Trends and Economic Factors - The national GDP growth rate was 6.1% in 2019, with retail sales of consumer goods reaching 41.16 trillion CNY, growing by 8.0% year-on-year[26]. - The urbanization rate in China reached 60.60% in 2019, indicating a steady increase that drives demand in the home furnishing industry[98]. - The disposable income of urban residents increased from ¥26,955 in 2013 to ¥42,359 in 2019, with a compound annual growth rate of 7.82%, enhancing consumer demand for higher-quality home products[99]. - The retail sales of social consumer goods in China reached ¥41.16 trillion in 2019, growing by 8.0% year-on-year, with furniture sales increasing by 5.1%[97]. Compliance and Governance - The company has committed to maintaining compliance with all legal and regulatory obligations, ensuring no major violations in the past three years[139]. - The company has not engaged in any illegal fund occupation or external guarantees in the last 36 months[139]. - The company has confirmed that it has not been subject to any administrative penalties or criminal charges in the last five years[169]. - The company has committed to fulfilling all legal disclosure obligations and ensuring no undisclosed contracts or agreements exist[145]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 12% to 15%[188]. - The company plans to open at least 70 new home improvement stores in 2020 to expand market share amid industry challenges[107]. - The company aims to develop self-operated businesses, including home decoration and smart home malls, targeting 2,000 construction projects in 2020[109]. - The company is committed to a "light asset" chain development model, focusing on expanding in core cities and penetrating lower-tier markets[104].