Dividend and Share Capital - The company reported a cash dividend of 6 RMB per 10 shares (including tax) and a capital reserve increase of 5 shares for every 10 shares held[5]. - The total number of shares for the dividend distribution is based on 730,815,601 shares[5]. - The total share capital will increase from 730,815,601 shares to 1,096,223,402 shares after the capital reserve conversion plan[172]. - The company plans to distribute a cash dividend of 6 CNY per 10 shares, totaling approximately 438.49 million CNY for the year 2020[169]. - The company reported a cash dividend payout ratio of 43.27% of the net profit attributable to ordinary shareholders for the year 2020[171]. - In 2019, the company distributed a cash dividend of approximately 328.91 million CNY, representing 33.18% of the net profit attributable to ordinary shareholders[171]. - The company’s remaining undistributed profits as of December 31, 2020, amount to approximately 1.81 billion CNY, which will be retained for business development[169]. Financial Performance - The company's operating revenue for 2020 was ¥5,084,128,474.22, a decrease of 6.53% compared to 2019[18]. - The net profit attributable to shareholders for 2020 was ¥1,013,312,721.93, an increase of 2.21% year-over-year[18]. - The net cash flow from operating activities increased by 70.65% to ¥1,361,431,320.16 in 2020[18]. - The total assets at the end of 2020 were ¥6,655,743,538.85, reflecting a growth of 12.39% from the previous year[18]. - The company's gross profit for the year was CNY 2.086 billion, an increase of CNY 129 million, with an overall gross margin of 41.03%, up 5.05 percentage points from the previous year[70]. - The company achieved total revenue of CNY 5.084 billion in 2020, a year-on-year decrease of 6.53%, with a recovery in the second half leading to revenue of CNY 3.411 billion, an increase of 11.84% compared to the same period last year[68]. - The company's net profit attributable to shareholders was CNY 1.013 billion, representing a year-on-year increase of 2.21%, driven by changes in revenue structure and improved profitability[68]. Market Position and Strategy - The company ranks among the top three in market share within the domestic jewelry market, demonstrating strong competitive positioning[44]. - The jewelry retail industry in China is experiencing rapid growth, with the market expected to benefit from rising disposable income and urbanization trends[39]. - The company is well-positioned to capitalize on the growing demand for high-end jewelry, particularly among younger consumers who prioritize quality and personalized design[40]. - The company has established a multi-dimensional product style library to cater to diverse consumer needs across different age groups and cultural backgrounds[49]. - The company aims to achieve a leading position in the diamond jewelry industry, aspiring to become the top brand globally and develop independent product lines[146]. E-commerce and Digital Marketing - The e-commerce business, initiated in 2013, has become a leading player in the industry, leveraging platforms like Tmall and live streaming to boost sales[57]. - The company emphasized digital marketing strategies, particularly through live-streaming e-commerce, to adapt to market conditions during the pandemic[28]. - Online sales revenue grew significantly by 93.9% year-on-year, reaching CNY 971 million, while self-operated offline sales dropped by 34.26% to CNY 720 million[69]. - The company plans to leverage online traffic to drive foot traffic to physical stores, aiming for a synergistic effect between online and offline sales channels[157]. - The company has established deep cooperation with leading influencers on live streaming platforms, maintaining a leading position in the e-commerce sector and planning to further enhance online business capabilities[157]. Product Development and Innovation - New product lines were developed targeting various consumer demographics, including "Shining girl" and "幸福花嫁" series aimed at younger consumers and wedding markets[29]. - The introduction of various IP-themed design series, including collaborations with famous artists, has enriched the cultural connotation of the jewelry products[51]. - The company plans to enhance the development and marketing of premium gold products, including hard gold and 5G-related items, to drive future growth[73]. - The company is focusing on supply chain financial services to support its upstream and downstream clients[144]. - The company is investing in technology development to enhance its operational efficiency and customer engagement[143]. Risk Management and Compliance - The company emphasizes the importance of risk awareness in its future business outlook[5]. - The company has a risk management strategy in place for franchise management, ensuring compliance with brand standards, although franchisees operate independently[159]. - The company is aware of the risks posed by the COVID-19 pandemic, which has impacted consumer behavior and wedding ceremonies, potentially affecting business performance[164]. - The company has not faced any penalties or rectification issues during the reporting period[189]. - The company reported no major litigation or arbitration matters during the reporting period[188]. Subsidiaries and Investments - The company established three new subsidiaries during the reporting period, which were included in the consolidated financial statements[185]. - The subsidiary Shanghai Zhou Dazheng Import and Export Co., Ltd. reported a net profit of 17,946,847.2 CNY on total revenue of 194,856,256 CNY[140]. - The subsidiary Zhou Dazheng Jewelry (Tianjin) Co., Ltd. achieved a net profit of 7,885,442.93 CNY with total revenue of 89,200,646.7 CNY[140]. - The company has invested a total of 150,000,000 CNY in various financial products, with a total return of 105,000,000 CNY and a reported profit of 474.58 CNY during the reporting period[136]. - The company has not sold any significant assets during the reporting period[138]. Operational Efficiency and Management - The company has implemented a resource integration model to enhance supply chain efficiency, reducing production management costs while focusing on brand building[60]. - A comprehensive quality control management system has been established, ensuring that all products undergo 100% inspection before being displayed in stores[61]. - The company is committed to optimizing operational systems across its 4,000+ stores, enhancing collaboration with franchise partners, and implementing standardized operational processes[148]. - The company is focusing on digital transformation, including the upgrade of core systems and the promotion of cloud store applications to shift from passive to customer-centric operations[152]. - The company has a standardized management system for its stores, enhancing brand image and operational efficiency[62].