SFY(SZ:002572)2022-04-11 16:00Financial Performance - In 2021, the company achieved a significant milestone by surpassing the 10 billion yuan revenue mark, marking a historic moment in its 40-year brand history and 10 years since its IPO[5]. - The company's operating revenue for 2021 was CNY 10,407,094,904.46, representing a 24.59% increase compared to CNY 8,352,832,347.70 in 2020[45]. - The net profit attributable to shareholders for 2021 was CNY 122,575,488.81, a decrease of 89.72% from CNY 1,192,248,037.02 in 2020[45]. - The net profit after deducting non-recurring gains and losses was CNY 31,674,103.00, down 96.98% from CNY 1,049,611,648.35 in 2020[45]. - The basic earnings per share for 2021 were CNY 0.13, down 90.08% from CNY 1.31 in 2020[45]. - The diluted earnings per share were also CNY 0.13, reflecting the same percentage decrease as the basic earnings per share[45]. - The company reported a significant decline in the weighted average return on equity to 2.10% from 20.92% in 2020, a decrease of 18.82%[45]. - The company experienced a net loss in the fourth quarter of 2021, with a net profit attributable to shareholders of -CNY 726,281,297.55[50]. Market Strategy and Growth - The company plans to double its revenue starting in 2022, capitalizing on the low concentration in the home furnishing industry and the trend towards personalized whole-house customization[9]. - The company launched the "Milaner" brand targeting the mid-to-low-end market, achieving profitability in its first year and leveraging existing industrial and digital capabilities[6]. - The "Simi" brand transitioned to whole-house customization, enhancing its competitive edge in the light high-end market, with expectations for a second growth curve[6]. - The company aims to achieve a sales target of CNY 10 billion through its "full-channel + multi-brand + full-category" strategy in 2021[69]. - The company is committed to a "multi-channel, multi-brand, and full-category" strategy, targeting high-end, mid-to-high-end, and mass markets with brands like "Simi," "Huahai," "Sofia," and "Milana" to create a comprehensive product development and supply system[186]. Operational Efficiency and Innovation - The company operates a fully integrated digital operation platform and has seven production bases, ensuring short delivery cycles and high accuracy in product delivery[66]. - The company has implemented an intelligent production model, significantly reducing error rates and production cycles, enhancing logistics efficiency[84]. - The company is developing a multi-channel marketing system, including dealer channels, whole-house decoration channels, bulk engineering channels, and e-commerce[84]. - The company is focusing on the development of a TMS logistics management system to enhance logistics efficiency and reduce costs[136]. - The introduction of a personalized order system is expected to improve order processing efficiency by 60-80% and automate over 98% of design quotations[136]. Financial Management and Investments - The company’s cash dividend proposal for 2021 is 6.00 yuan per 10 shares (including tax), with no bonus shares issued[15]. - The total operating costs for 2021 amounted to ¥6,922,514,340.32, representing a 31.09% increase compared to ¥5,280,798,491.47 in 2020[127]. - R&D expenses rose by 40.03% to ¥289,895,891.88, reflecting increased investment in new product development[135]. - The company reported a significant increase in financial expenses by 92.95% to ¥68,018,488.19 due to increased bank borrowings[135]. - The company has invested CNY 19,684.18 million (65.61%) in the digital ecosystem upgrade project, with a total commitment of CNY 30,000 million[162]. Risk Management - The company emphasizes the importance of risk awareness and management capabilities in navigating future complexities and challenges[9]. - The company faces risks from macroeconomic controls in the real estate sector, which could negatively impact demand for custom furniture[176]. - The company is experiencing increased competition in the custom furniture market, leading to a more complex competitive landscape[177]. - Rising labor costs are a concern, as the company aims to maintain reasonable levels through product structure optimization[178]. - The company is at risk of raw material price increases, particularly for medium-density fiberboard and metal fittings[180]. Corporate Governance - The company held 2 shareholder meetings during the reporting period, ensuring compliance with relevant legal regulations[199]. - The board of directors consists of 5 members, with 3 being independent directors, reflecting a reasonable structure[200]. - All directors participated in training activities organized by regulatory authorities to enhance their capabilities[200]. - The company has revised multiple regulations, including the Articles of Association and board meeting rules, in response to regulatory requirements[199].