GUOGUANG CHAINS(605188)2023-04-26 16:00Revenue and Profit Performance - Revenue for 2022 reached 2,249,947,030.06 RMB, a 5.00% increase compared to 2021[26] - Revenue for 2022 reached 2.25 billion yuan, a year-on-year increase of 5.00%[36] - Company achieved operating revenue of 2,249,947,030.06 yuan, a year-on-year increase of 5.00%, primarily due to increased sales of fresh and essential goods[45][46] - Net profit attributable to shareholders in 2022 was 18,809,520.30 RMB, a decrease of 37.56% compared to 2021[26] - Net profit attributable to shareholders in 2022 was 18.81 million yuan, a year-on-year decrease of 37.56%[36] - Net profit after deducting non-recurring gains and losses was 7.04 million yuan, a year-on-year decrease of 22.61%[36] - The company's net profit margin for 2022 was 0.84%, a significant decrease from 1.41% in 2021[26] - Basic earnings per share in 2022 were 0.04 yuan, a year-on-year decrease of 33.33%[27] - The company's earnings per share (EPS) for 2022 was 0.04 RMB, a decrease from 0.06 RMB in 2021[26] - Weighted average return on equity (ROE) in 2022 was 1.71%, a decrease of 1.02 percentage points compared to the previous year[27] Cash Flow and Financial Position - Cash flow from operating activities in 2022 was 214,855,300.38 RMB, a 59.22% increase compared to 2021[26] - The company's operating cash flow margin improved to 9.55% in 2022, up from 6.30% in 2021[26] - Operating cash flow for Q2 2022 was 102.24 million yuan, the highest among all quarters[29] - Net cash flow from operating activities surged by 59.22% to 214,855,300.38 yuan, mainly due to increased cash received from sales[45][46] - Net cash flow from investing activities dropped by 88.75% to 19,954,344.73 yuan, primarily due to increased payments for bank financial products and construction projects[45][46] - Net cash flow from financing activities improved by 74.73% to -67,104,988.67 yuan, as the company repaid 170 million yuan in working capital loans and obtained 20 million yuan in fixed asset investment loans[45][46] - Total assets at the end of 2022 were 2,666,543,142.68 RMB, a 0.89% increase compared to the end of 2021[26] - The company's total equity at the end of 2022 was 1,104,547,407.91 RMB, a slight increase of 0.38% compared to the end of 2021[26] - The company's debt-to-equity ratio remained stable at 1.41 in 2022, compared to 1.40 in 2021[26] - Total assets increased to 2,666,543,142.68 RMB in 2022, up from 2,643,109,485.61 RMB in 2021, reflecting a growth of 0.89%[197] - Current assets rose to 1,094,127,567.20 RMB in 2022, compared to 1,026,636,978.24 RMB in 2021, an increase of 6.58%[196] - Cash and cash equivalents grew significantly to 603,538,983.82 RMB in 2022, up from 441,619,153.37 RMB in 2021, a 36.67% increase[196] - Accounts receivable increased to 54,121,299.71 RMB in 2022, compared to 36,829,391.50 RMB in 2021, a 46.95% rise[196] - Inventory levels rose to 287,295,849.42 RMB in 2022, up from 269,894,592.05 RMB in 2021, a 6.45% increase[196] - Total liabilities increased slightly to 1,561,995,734.77 RMB in 2022, compared to 1,542,713,009.47 RMB in 2021, a 1.25% rise[197] - Contract liabilities grew to 413,320,222.28 RMB in 2022, up from 368,407,445.97 RMB in 2021, a 12.19% increase[197] - Shareholders' equity increased to 1,104,547,407.91 RMB in 2022, compared to 1,100,396,476.14 RMB in 2021, a 0.38% rise[198] - Fixed assets decreased to 712,740,025.75 RMB in 2022, down from 741,277,606.51 RMB in 2021, a 3.85% decline[196] - Intangible assets increased to 151,781,497.28 RMB in 2022, up from 111,202,149.76 RMB in 2021, a 36.49% rise[197] Dividend and Profit Distribution - The company plans to distribute a cash dividend of 0.10 RMB per share, totaling 4,955,800.00 RMB, representing 26.35% of the net profit attributable to shareholders[7] - In 2022, the company distributed a cash dividend of RMB 4,955,800, accounting for 26.35% of the net profit attributable to ordinary shareholders in the consolidated financial statements[121][122] - The company's profit distribution policy includes extracting 10% of after-tax profits as statutory reserve fund, and the remaining profits are distributed according to shareholders' shareholding ratio[117] - The company's cash dividend policy requires a minimum of 20% of distributable profits to be allocated for cash dividends annually, with a cumulative cash dividend ratio of at least 30% over the past three years[118] - The company's cash dividend ratio varies based on its development stage: 80% for mature companies without significant capital expenditures, 40% for mature companies with significant capital expenditures, and 20% for growth-stage companies with significant capital expenditures[118] - The company defines significant capital expenditures as cumulative investments, acquisitions, or equipment purchases exceeding 5% of the latest audited net assets or RMB 50 million within the next 12 months[119] Sales and Product Performance - Fresh product sales reached 920,877,390.02 yuan, a 17.31% increase year-on-year, with gross margin rising by 0.77 percentage points[48] - Food product sales were 780,026,499.31 yuan, a slight decrease of 0.43% year-on-year, but gross margin improved by 0.09 percentage points[48] - Non-food product sales declined by 1.65% year-on-year to 268,732,417.52 yuan, with gross margin dropping by 0.33 percentage points[48] - Textile product sales decreased by 8.38% year-on-year to 41,124,214.13 yuan, with gross margin falling by 0.62 percentage points[48] - Sales growth for supermarkets in Ji'an and Ganzhou regions increased by 7.37% and 6.20% respectively, while department stores saw declines of 1.83% and 2.68%[64] - Online sales in 2022 reached RMB 8,006.81 million, accounting for 3.91% of total merchandise sales, all through external platforms[71] - Membership sales contributed 72.55% of total retail sales, with silver card members accounting for 75.31% of total membership sales[71] - Self-operated merchandise procurement in 2022 totaled RMB 183,977.26 million, with fresh food accounting for RMB 80,049.49 million, food for RMB 74,331.13 million, and non-food for RMB 25,507.44 million[69] - Inventory value for 2022 was RMB 28,740.51 million, with fresh food inventory at RMB 3,697.70 million and food inventory at RMB 15,425.43 million[69] Logistics and Supply Chain - The company's logistics system achieved a delivery value of 1.438 billion yuan in 2022, a year-on-year increase of 3.64%[65] - Third-party logistics accounted for 71.50% of the total 42,000 delivery trips in 2022[65] - The company is constructing Jiangxi Guoguang Yunchuang Technology Co., Ltd. to enhance intelligent logistics and warehousing capabilities[67] - The logistics system upgrade plan for 2023 includes two phases for Jiangxi Guoguang Yunchuang Technology Co., Ltd., focusing on fresh and standardized delivery functions[68] - The company plans to build front warehouses, distribution centers, and cold storage facilities to improve logistics functions[68] Corporate Governance and Shareholder Structure - The company adheres to strict corporate governance standards, ensuring compliance with laws and regulations, and maintains transparency in information disclosure[84][85] - The company has established various committees under the board of directors to enhance decision-making and governance[85] - The company has no significant issues with corporate governance or independence from its controlling shareholders[86] - The company's Chairman, Hu Jingen, holds 86 million shares with no change during the reporting period[89] - The company's total shares held by directors, supervisors, and senior management amount to 175,944,068 shares[89] - The total pre-tax remuneration for directors, supervisors, and senior management is 5.7939 million yuan[89] - The company's General Manager, Hu Zhichao, holds 21,611,695 shares with no change during the reporting period[89] - The company's Vice President, Hu Chunxiang, holds 10,772,034 shares with no change during the reporting period[89] - The company's Financial Director, Liu Qun, holds no shares and received a pre-tax remuneration of 286,100 yuan[89] - The company's Independent Director, Wang Lingben, received a pre-tax remuneration of 60,000 yuan[89] - The company's Board Secretary, Liao Fang, assumed the position on February 28, 2023[91] - The company's total pre-tax remuneration for all directors, supervisors, and senior management is 5.7939 million yuan[89] - The company's Vice President, Du Qun, received a pre-tax remuneration of 402,300 yuan[91] - Total actual remuneration for all directors, supervisors, and senior management at the end of the reporting period was 5.7939 million yuan[97] - The company's board of directors approved the application for credit lines from banks and the adjustment of the company's organizational structure during the second board meeting in 2022[99] - The company's board of directors reviewed and approved the 2021 annual board work report, general manager work report, and independent director work report during the second board meeting in 2022[99] - The company's board of directors approved the proposal to hold the first extraordinary general meeting of 2022 during the second board meeting in 2022[99] - The company's board of directors approved the proposal to adjust the company's organizational structure during the second board meeting in 2022[99] - The company's board of directors approved the proposal to apply for credit lines from banks during the second board meeting in 2022[99] - The company held a total of 6 board meetings in 2022, all of which were conducted via a combination of on-site and teleconference methods[102] - The Audit Committee held 5 meetings in 2022, reviewing and approving various financial reports, audit summaries, and budget proposals[104][105] - The company's 2021 annual report and financial statements were reviewed and approved by the Audit Committee, confirming their accuracy and compliance with regulations[105] - The company's 2022 semi-annual report was reviewed and approved by the Audit Committee, ensuring compliance with accounting standards[105] - The company's 2021 internal control evaluation report was reviewed and approved by the Audit Committee[105] - The company's 2022 financial budget report was reviewed and approved by the Audit Committee[105] - The company's 2021 profit distribution plan was reviewed and approved by the Audit Committee[105] - The company's 2022 daily related transactions were reviewed and approved by the Audit Committee[105] - The company's 2022 first-quarter report was reviewed and approved by the Audit Committee[105] - The company's 2022 second-quarter audit work summary and third-quarter work plan were reviewed and approved by the Audit Committee[105] - The company's total share capital remained unchanged during the reporting period[162] - The company issued 49,580,000 ordinary shares (A-shares) at a price of 4.65 yuan per share on June 12, 2020, and listed them on July 28, 2020[165] - As of the end of the reporting period, the company had 23,157 ordinary shareholders[166] - The top three shareholders of the company are Jiangxi Guoguang Industrial Co., Ltd. (50.86%), Hu Jingen (17.35%), and Jiang Shulan (8.71%)[168] - The top 10 shareholders with unrestricted shares include Zhao Yulan holding 410,000 shares, Huang Chunhong holding 351,300 shares, and nBS AG holding 276,072 shares[169] - The company's controlling shareholder, Jiangxi Guoguang Industrial Co., Ltd., holds 252,055,934 restricted shares, which will be tradable on July 28, 2023[171] - Hu Jinmin, a key executive, holds 14,404,576 restricted shares, representing 2.91% of the total shares, which will also be tradable on July 28, 2023[169][171] - The company's employee持股 platforms, including Jixi Qixing Information Consulting Partnership, hold a total of 7,200,000 restricted shares, all set to be tradable on July 28, 2023[171] - The actual controllers of the company, including Hu Jingen, Jiang Shulan, Hu Zhichao, Hu Jinmin, and Hu Chunxiang, collectively hold a significant portion of the company's shares through Jiangxi Guoguang Industrial Co., Ltd.[171] - Jiangxi Guoguang Industrial Co., Ltd. owns 50.86% of Jiangxi Guoguang Commercial Chain Co., Ltd., indicating a strong controlling interest[174] - The company's actual controllers, such as Hu Jingen and Jiang Shulan, hold key positions including Chairman and Executive Director roles within the company and its subsidiaries[175][176] - The company has no significant changes in controlling shareholders or actual controllers during the reporting period, maintaining stability in its ownership structure[176] Employee and Training - Total number of employees at the parent company and major subsidiaries is 4,359, with 2,500 at the parent company and 1,859 at major subsidiaries[112] - Educational background of employees: 179 with bachelor's degree or above, 790 with college degree, 670 with technical school degree, and 2,720 with high school degree or below[113] - The company's salary system includes basic salary and performance-based pay, with performance linked to employee achievements and work capabilities[114] - The company has established a comprehensive training system, including internal and external training programs, and has adjusted training materials for better effectiveness in 2022[115] Risk and Challenges - The company faces risks from macroeconomic trends, new retail formats, and the challenges of expanding into new regions and projects[82] - The company did not establish environmental protection mechanisms or invest in environmental protection funds during the reporting period[127] - The company did not implement any carbon reduction measures in 2022[128] Related Transactions and Financial Products - The company's total actual amount of related transactions in 2022 was RMB 2,399.83 million, with a planned amount of RMB 2,720.00 million, showing a significant difference due to lower actual purchases and service fees[150] - The company's open-ended non-principal guaranteed floating income financial products had a total occurrence of RMB 42,250.00 million, with an outstanding balance of RMB 1,680.00 million and no overdue amounts[154] - The company's fixed-term non-principal guaranteed floating income financial products had a total occurrence of RMB 63,700.00 million, with an outstanding balance of RMB 2,000.00 million and no overdue amounts[154] - The company's internal control audit fee was included in the RMB 70 million fee paid to the domestic accounting firm[147] - The company renewed its contract with the domestic accounting firm, Ernst & Young (Special General Partnership), for the 2022 fiscal year[148] - The company's related transactions with Ji'an Qingyuan District Hengxin Industrial Co., Ltd. included purchasing goods for RMB 1,943.34 million and promotional services for RMB 153.63 million[150] - The company's related transactions with Hu Jingen and Jiang Shulan included leasing properties for RMB 302.86 million[150] - The company's total planned related transactions for 2022 were RMB 2,720.00 million, with actual transactions amounting to RMB 2,399.83 million[150] - The company's domestic accounting firm, Ernst & Young (Special General Partnership), was paid RMB 70 million for audit services, including internal control audit fees[147] - The company's financial products had a total occurrence of RMB 105,950.00 million, with an outstanding balance of RMB 3,680.00 million and no overdue amounts[154] - The company conducted bank wealth management business during the reporting period, focusing on open-ended or short-term fixed-term bank wealth management products with controllable risks[155] Loans and Credit Facilities - The company has a credit contract with China Construction Bank Ji'an Branch with a credit limit of 180 million yuan, valid from December 17, 2020, to December 16, 2023[157] - The company has a fixed asset loan contract with China Construction Bank Ganzhou Branch for 100 million yuan, valid from September 22, 2022, to September 21, 2027[157] - The company has a mortgage loan with Ji'an Rural Commercial Bank for 78 million yuan, secured by real estate in Xin'gan County, with a total area of 12,323.88 square meters[158] - The company has a commercial prepaid card guarantee with China Construction Bank Ji'an Branch, with a guarantee amount of 80 million yuan, valid from January 5