Sales Performance - In January, the company achieved nearly RMB 1 billion in sales during the "Capital Twelve Cities Celebration" event[6]. - In October, the company generated RMB 800 million in sales during the "Capital Twelve Cities, Happy Shopping National Day" campaign[13]. - During the "Double Festival" period in October, the company achieved sales of RMB 800 million and attracted 2.3 million visitors across 12 cities[19]. - The grand opening of the Kunming outlet attracted over 80,000 visitors on its first day, generating sales exceeding RMB 15 million, and reached a total of 500,000 visitors and sales of over RMB 1 billion in its first month[16][19]. - In 2020, the company achieved a total sales revenue of approximately RMB 7.4 billion, with a customer traffic of 38.1 million visits[38]. Marketing and Promotions - In February, the company announced a 38-day rent exemption and fee waivers for merchants in response to the COVID-19 pandemic[7]. - During March and April, the company launched a new marketing model called "BOSS Live" to enhance online sales channels amid reduced foot traffic[8]. - In May, the company reported a significant recovery in customer traffic and sales performance across its twelve outlets post-epidemic[9]. - In August, the company transformed its Hainan outlet with a new model combining "big brands + tourism + no purchase limit," and launched a nationwide member reward activity[12]. - In November, the company hosted the 2020 New Silk Road World Model Contest, attracting 3,492 participants and achieving 110 million online exposures[15]. Financial Performance - In 2020, the company achieved an operating revenue of RMB 1,024,035,000, a decrease of 45% compared to the previous year, with a net loss attributable to the parent company of RMB 320,446,000[21]. - The company's revenue for 2020 was approximately RMB 1,024,035,000, a decrease of 45% compared to RMB 1,864,672,000 in 2019[43]. - The gross profit margin for 2020 was about 34%, down 13 percentage points from 47% in 2019[44]. - The operating profit for 2020 was approximately RMB 266,531,000, a decrease of 42% from RMB 456,831,000 in 2019[44]. - The annual loss for 2020 was approximately RMB 317,689,000, an increase of 42% compared to RMB 223,052,000 in 2019[44]. Operational Strategies - The company plans to strengthen its operational strategies in 2021 by focusing on cost control, efficiency improvement, and enhancing the customer shopping experience[22]. - The company aims to deepen its digital transformation and data asset collection capabilities to better meet consumer demands and improve operational efficiency[21]. - The company will continue to explore new retail and digital upgrades to redefine the outlet shopping experience and enhance brand characteristics[22]. - The company is committed to optimizing its supply chain and enhancing brand partnerships to reduce costs and improve operational efficiency[40]. - The company aims to enhance its operational model by focusing on the new characteristics of core customer groups and trends in brand upgrades, particularly targeting the middle-class health and rational consumption[58]. Market Expansion - The company has opened a total of 13 outlet projects, maintaining the leading position in the industry in terms of the number of opened projects[19]. - The company plans to open new outlet projects in cities such as Zhengzhou, Jinan, and Nanning, with expected opening dates ranging from 2018 to 2022[34]. - The company is actively expanding its market presence through new outlet developments and strategic investments in various cities[36]. - The company holds a 100% equity interest in most of its outlet projects, ensuring full control over operations and management[33]. - The company has a total of 15 outlet projects across various cities, with a total construction area of approximately 1,500,000 square meters[33]. Risk Management - The company faced strategic, operational, financial, legal, and market risks, influenced by macroeconomic trends and external factors such as the pandemic[84]. - The company has established a comprehensive risk management system, which includes risk identification, risk measures, internal audit evaluation, and continuous improvement[149]. - The independent auditor's report confirms that the consolidated financial statements present a true and fair view of the group's financial position as of December 31, 2020[162]. - The Risk Control Center assessed the company's risk management and internal control, concluding that there are no significant weaknesses in internal controls[151]. - The company is committed to enhancing risk management efficiency through a self-supervised risk control model at the business level[150]. Corporate Governance - The board of directors consists of nine members, including two executive directors, four non-executive directors, and three independent non-executive directors[128]. - The company has adopted a corporate governance code as its regular governance practice for the year ended December 31, 2020[147]. - The independent non-executive directors represent one-third of the board, ensuring compliance with independence requirements[132]. - The company has implemented a comprehensive training program for new directors to ensure they understand their responsibilities and the regulatory environment[133]. - The board actively promotes transparency and accountability to all shareholders[127]. Employee and Management Changes - The company had borrowings of approximately RMB 4,304,436,000 as of December 31, 2020, an increase from RMB 3,765,000,000 in 2019[48]. - As of December 31, 2020, the group had 1,234 employees, a decrease from 1,297 employees as of December 31, 2019[56]. - The company appointed Mr. Gao Baofeng as Vice President in September 2020, bringing extensive experience from various leadership roles in state-owned enterprises and the military[71]. - Ms. Lu Yi was appointed as Vice President in August 2016, previously managing retail operations for major shopping centers and international groups[73]. - Mr. Chi Chao has served as Chief Financial Officer since October 2017, with prior experience in financial management at listed companies[76]. Shareholder Information - Major shareholder, Shouchuang Investment Holdings, owns 72.94% of the company's issued share capital, totaling 701,353,846 shares[102]. - The total equity held by Shouchuang Investment, including convertible shares, amounts to 1,774,281,952 shares, representing 184.53% of the total issued shares[102]. - KKR Group Partnership holds 95,192,308 shares, accounting for approximately 9.9% of the issued share capital[104]. - The company has adhered to the non-competition commitments under the revised non-competition agreements with Shouchuang Investment[101]. - The board does not recommend the distribution of any dividends for the fiscal year ending December 31, 2020[86].
首创钜大(01329) - 2020 - 年度财报