LYFEN(SH:603777)2022-05-24 16:00Financial Performance - The net profit attributable to the parent company for 2021 was CNY 31,001,013.05, while the non-recurring profit and loss attributable to shareholders was CNY -65,496,088.14[4] - The company reported an ending balance of undistributed profits of CNY 182,376,017.34 as of the end of 2021[4] - The company plans not to distribute cash dividends or stock dividends for the 2021 fiscal year[4] - The company's operating revenue for 2021 was CNY 4,172,367,725.41, representing a year-on-year increase of 3.63% compared to CNY 4,026,230,937.63 in 2020[18] - The net profit attributable to shareholders of the listed company reached CNY 31,001,013.05, a significant increase of 147.55% from a loss of CNY 65,195,382.69 in 2020[19] - The net cash flow from operating activities surged by 499.17% to CNY 574,662,704.18, compared to CNY 95,909,480.97 in the previous year[19] - Basic and diluted earnings per share improved to CNY 0.09, up 148.45% from a loss of CNY 0.19 in 2020[19] - The total assets of the company increased by 25.00% to CNY 3,384,419,230.42 at the end of 2021, compared to CNY 2,707,636,232.51 at the end of 2020[18] - The weighted average return on equity rose to 1.84%, an increase of 5.64 percentage points from -3.80% in 2020[19] - The company achieved a total revenue of CNY 4,172,367,725.41 in 2021, representing a year-on-year growth of 3.63%[55] Operational Highlights - The company operates both directly managed stores and franchise stores, with the latter being managed by franchisees[10] - The total number of offline stores reached 3,488, an increase of 484 stores year-on-year, with franchise stores accounting for nearly 40%[30] - The total number of members across all channels exceeded 70 million by the end of the reporting period[29] - The company maintained a high level of quality control, with an incoming inspection pass rate of 99.86% for 57,834 batches of products[33] - The company has established a full-channel sales network, including direct stores, franchise stores, special channels, e-commerce, and its own app, enhancing consumer touchpoints[48] - The company’s B2C model includes flagship stores on platforms like Tmall and JD, as well as its own app, which integrates various functionalities to enhance user experience[50] Market and Product Development - The company launched over 300 new products in 2021, with significant sales contributions from new items, indicating a year-on-year growth in the proportion of new product sales[46] - The company launched over 900 products across 12 core categories, including snacks, dried fruits, and beverages, catering to diverse consumer needs[53] - The company is focusing on product innovation and iteration across various snack categories, including nuts, meat snacks, and baked goods[92] - The company is exploring meal replacement options, particularly in baked goods, to meet the growing demand for convenient and nutritious alternatives[93] - The company aims to meet diverse consumer needs by expanding into non-food categories, enhancing its product offerings beyond traditional snacks[46] Corporate Governance - The company has established a robust internal control system, with an audit conducted by Lixin Accounting Firm to ensure the effectiveness of financial reporting controls[106] - The board of directors consists of 11 members, including 4 independent directors, ensuring compliance with legal and regulatory requirements[104] - The company has implemented measures to ensure the independence of its operations from its controlling shareholder, with no fund occupation or guarantees provided[107] - The company has made efforts to balance the interests of stakeholders, including employees, customers, suppliers, and investors[105] - The company is committed to continuous improvement in corporate governance and internal control systems to support sustainable growth[106] Future Outlook - The company aims for a 30% sales growth in 2022 while maintaining reasonable profits[95] - The total number of stores is expected to increase by 50% as part of the "Ten Thousand Lights Plan" focusing on franchise operations[95] - The company plans to enhance its digital and intelligent capabilities, targeting a 20% improvement in system efficiency[96] - The company anticipates seasonal sales fluctuations, with higher demand expected in the first and fourth quarters[99] - The company is actively developing home delivery services to mitigate the impact of COVID-19 on its operations[100] Social Responsibility - In 2021, the company donated 0.1 CNY from orders in stores to support public welfare initiatives in poverty alleviation areas[142] - The company launched a new rural revitalization section on its app in 2022, promoting quality products from regions like Xinjiang and Yunnan[142] - The company established a social enterprise in Yunnan to directly assist 23 registered households and local businesses[142] Shareholder Information - The total number of shares held by the board members at the beginning of the year was 10,910,150, which decreased to 10,873,220 by the end of the year, reflecting a reduction of 36,930 shares[112] - The largest shareholder, Shanghai Aiwu Enterprise Management Co., Ltd., held 186,514,000 shares, representing 55.38% of total shares[190] - The actual controllers, including Shi Yonglei and Yu Ruifen, collectively control 219,410,000 shares, accounting for 65.15% of the company[198] - The company has a share pledge situation where the cumulative number of pledged shares does not exceed 80% of the shares held by the controlling shareholder[200]