BUSEN(SZ:002569)2021-04-29 16:00Financial Performance - The company reported a total revenue of 1.2 billion RMB for the year 2020, representing a decrease of 15% compared to the previous year[12]. - The net loss for the year was 200 million RMB, which is a significant decline from the profit of 100 million RMB in 2019[12]. - The company's operating revenue for 2020 was ¥254,711,115.39, a decrease of 29.07% compared to ¥359,122,422.13 in 2019[18]. - The net profit attributable to shareholders was -¥153,438,591.34 in 2020, representing a decline of 444.93% from ¥44,484,237.79 in 2019[18]. - The net profit after deducting non-recurring gains and losses was -¥160,478,941.04, a decrease of 536.28% compared to -¥25,221,525.28 in 2019[18]. - The total assets at the end of 2020 were ¥390,644,553.37, down 36.61% from ¥616,300,769.61 at the end of 2019[18]. - The net assets attributable to shareholders decreased by 42.72% to ¥194,162,799.53 at the end of 2020 from ¥338,957,519.88 at the end of 2019[18]. - The company reported a negative cash flow from operating activities of -¥12,436,782.51 in 2020, slightly worse than -¥11,853,424.23 in 2019[18]. - The company reported a significant decline in sales across various product categories, with outerwear down 45.78% and suits down 38.11%[40]. - The company reported a significant impact from the COVID-19 pandemic, leading to adjustments in business operations, including the expansion of production capacity for protective clothing[107]. Strategic Initiatives - The company plans to focus on expanding its online sales channels, aiming for a 30% increase in e-commerce revenue in 2021[12]. - New product lines are expected to launch in Q2 2021, targeting a 20% increase in market share within the apparel sector[12]. - The company is investing 50 million RMB in research and development for new fabric technologies in 2021[12]. - Market expansion efforts will include entering two new provinces in China by the end of 2021, with a projected revenue contribution of 100 million RMB[12]. - The company is exploring potential mergers and acquisitions to enhance its supply chain efficiency, with a budget of 200 million RMB allocated for this purpose[12]. - Future guidance indicates a revenue target of 1.5 billion RMB for 2021, reflecting a recovery and growth strategy post-pandemic[12]. - The company plans to enhance its online and offline sales integration and accelerate the development of new retail business in 2021[36]. - The company aims to optimize its organizational structure and introduce advanced talent to improve profitability[36]. - The company plans to enhance R&D investment and strengthen independent innovation capabilities, focusing on the men's clothing market and improving product competitiveness[78]. - The company intends to integrate online and offline retail models to accelerate its fashion industry layout and expand its business reach[82]. Operational Changes - The company closed 56 stores due to the pandemic, while opening 2 new direct-operated stores[42]. - The company has established a stable strategic partnership with efficient suppliers, ensuring strong operational support[32]. - The company is focusing on optimizing its franchise and direct sales models to enhance brand visibility and sales performance[107]. - The company has recognized an estimated liability of approximately 31.616 million yuan (around $4.4 million) for the ongoing litigation[116]. - The company is actively monitoring the developments in the litigation and will adjust its financial provisions as necessary based on the outcomes[118]. Shareholder and Governance - The company has not distributed dividends or increased capital stock in the past three years, indicating a focus on reinvestment rather than shareholder returns[90]. - The company reported a net profit attributable to ordinary shareholders of -153.44 million in 2020, with a profit distribution plan of no cash dividends proposed[91]. - The company maintains an independent financial accounting department and financial management system[95]. - The company guarantees the independence of its assets and ensures that no funds are misappropriated by subsidiaries[96]. - The company has committed to avoiding any form of direct or indirect competition with its actual controller and related enterprises[97]. - The company has engaged legal counsel to assist in the ongoing litigation and has collected evidence for its defense[118]. - The company has fulfilled its commitments related to the independence of its management and financial operations during the reporting period[93]. Employee and Management - The total number of employees in the company is 933, with 763 in the parent company and 170 in major subsidiaries[188]. - The company has 495 production personnel, 221 sales personnel, and 179 technical personnel among its workforce[189]. - The total remuneration for directors and senior management during the reporting period amounts to 430.93万元[186]. - The company has issued stock options to its directors and senior management, with a total of 2,783,500 restricted shares granted[187]. - The company implemented a comprehensive training program focusing on four key areas: basic knowledge, professional skills, management enhancement, and professional ethics[192]. - The company emphasizes performance evaluation and aims to improve employee income through effective incentive policies[191]. Market Outlook - The domestic apparel industry is expected to benefit from supportive policies and a recovering consumer market, leading to increased competition among brands[28]. - The company anticipates a favorable transformation in the apparel industry driven by consumption upgrades and a shift towards high-end and diversified products[77]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% market share in the region within the next two years[103]. - A strategic acquisition of a local competitor is anticipated to enhance the company's supply chain efficiency and reduce costs by 15%[99]. Legal and Compliance - The company is currently appealing a judgment related to a loan dispute involving Tianma Bearing Group Co., Ltd. and is in the second instance stage of the case[118]. - The company has disclosed its litigation status and related financial implications in its annual report for 2020[117]. - The audit report for the fiscal year 2020 was issued without any reservations, affirming the accuracy of the company's financial status[108]. - The company has not reported any penalties from securities regulatory agencies for directors, supervisors, and senior management in the past three years[183].