Financial Performance - Total revenue for the year 2020 was RMB 5,455.246 million, a decrease of 9.5% from RMB 6,030.167 million in 2019[11]. - Pre-tax profit for 2020 was RMB 67.177 million, down 86.7% from RMB 503.193 million in 2019[11]. - The profit attributable to owners of the company for 2020 was RMB 1.837 million, a significant decline from RMB 288.1 million in 2019[11]. - Adjusted net profit fell by 67.1% from RMB 396.4 million in 2019 to RMB 130.6 million in 2020[23]. - The company's revenue decreased by 9.5% from RMB 6,030.2 million in 2019 to RMB 5,455.2 million in 2020, primarily due to the impact of the COVID-19 pandemic[23]. - The company reported a net profit of RMB 11,485 thousand for 2020, down 96.1% from RMB 290,638 thousand in 2019[178]. - Basic earnings per share for 2020 were RMB 0.17, a significant decline from RMB 27.02 in 2019[178]. Restaurant Operations - The number of Xiabuxiabu restaurants opened in 2020 was 91, while 38 new Coucou restaurants were launched[18]. - In 2020, the company opened a total of 129 new restaurants, including 91 Xiaobuxiang restaurants and 38 Coucou restaurants[21]. - As of December 31, 2020, the company operated 1,061 Xiaobuxiang restaurants across 130 cities in 24 provinces and autonomous regions in China[23]. - The company's restaurant network increased by 77 locations in 2020 despite the challenges faced[30]. - The total same-store sales for the company's restaurants in 2020 was RMB 2,658.4 million, down 23.9% compared to RMB 3,494.0 million in 2019[36]. - The number of same-store restaurants increased to 930 in 2020 from 809 in 2019, with a notable increase in first-tier cities[36]. Sales and Revenue Trends - Coucou's sales contribution increased from 20.0% in 2019 to 31.0% in 2020, with a total of 140 restaurants by the end of 2020[18]. - The sales share of the seasoning business rose from 1.5% in 2019 to 2.7% in 2020 due to increased home cooking during the pandemic[18]. - Delivery sales increased by 21% in 2020 compared to 2019, with order volume rising by 15%[18]. - The revenue from the brand "Xiabuxiabu" fell by 25.9% from RMB 4,727.0 million in 2019 to RMB 3,501.5 million in 2020[54]. - The total revenue for Coucou restaurants reached RMB 1,687.8 million in 2020, up from RMB 1,200.1 million in 2019[37]. Cost Management - The cost of raw materials and consumables decreased by 4.3% from RMB 2,225.1 million in 2019 to RMB 2,130.2 million in 2020, while the percentage of these costs to total revenue increased from 36.9% to 39.0%[56]. - Employee costs decreased by 4.3% from RMB 1,544.3 million in 2019 to RMB 1,478.1 million in 2020, with the percentage of these costs to total revenue rising from 25.6% to 27.1%[57]. - Property rental and related expenses decreased by 13.5% from RMB 253.8 million in 2019 to RMB 219.6 million in 2020, with the percentage of these expenses to total revenue decreasing from 4.2% to 4.0%[58]. - Utility expenses decreased by 10.3% from RMB 212.2 million in 2019 to RMB 190.3 million in 2020, maintaining a percentage of 3.5% of total revenue[59]. Strategic Initiatives - The company plans to continue expanding the Coucou brand into more cities and explore international opportunities in 2021[18]. - The company plans to diversify its offerings by introducing new services such as hot pot delivery and afternoon tea[29]. - The company plans to focus on expanding in East and South China over the next three years, with a strategy to enhance operational efficiency and reduce investment payback periods[42]. - The company aims to increase brand awareness among the post-95 consumer group by redesigning its branding and marketing strategies, utilizing online platforms like WeChat and Douyin[43]. - The company plans to continue executing strategies that leverage its diversified platform to promote overall business growth in 2021[41]. Financial Position - Total assets as of December 31, 2020, were RMB 5,779.956 million, an increase from RMB 5,625.886 million in 2019[12]. - Total liabilities as of December 31, 2020, were RMB 3,439.788 million, compared to RMB 3,239.046 million in 2019[12]. - As of December 31, 2020, cash and cash equivalents amounted to RMB 1,097.3 million, up from RMB 785.2 million in 2019, with 76.2% held in RMB[68]. - The company reported a debt-to-equity ratio of 0.9% as of December 31, 2020[72]. - The company’s total equity attributable to owners decreased from RMB 2,375,445 thousand in 2019 to RMB 2,318,880 thousand in 2020, a decline of about 2.38%[180]. Corporate Governance - The company is committed to high standards of corporate governance, adhering to the applicable codes and regulations[143]. - The board comprises seven directors, including four executive directors and three independent non-executive directors[144]. - The company has adopted a board diversity policy considering various factors such as gender, age, and industry experience[144]. - The company emphasizes the importance of board diversity as a key element for maintaining competitive advantage and sustainable development[156]. - The company has established a comprehensive internal control and risk management system covering all business areas, including restaurant openings, procurement, and quality control[164]. Shareholder Information - The company declared an interim dividend of RMB 0.028 per share, totaling RMB 30.0 million for the six months ended June 30, 2020[78]. - The board proposed a final dividend of RMB 0.028 per share for the year ended December 31, 2020, amounting to approximately RMB 30.0 million, subject to shareholder approval[78]. - The company has established long-term relationships with major suppliers, averaging over five years of business dealings[87]. - The company reported a total purchase amount of RMB 4,498,000 under the previous framework purchase agreement for the year ending December 31, 2020[140]. Risk Management - The company has implemented enhanced internal control measures to reduce the risk of fines from Chinese regulatory authorities related to restaurant operations[160]. - The company conducts regular reviews of compliance risks and implements measures to ensure compliance with regulations[160]. - The board believes that the existing risk management and internal control systems are sufficient and effective, particularly in financial reporting and compliance[165].
呷哺呷哺(00520) - 2020 - 年度财报