Financial Performance - Revenue for 2020 reached RMB 5,325,107 thousand, an increase of 28.36% compared to RMB 4,148,421 thousand in 2019[12] - Gross profit for 2020 was RMB 3,910,252 thousand, reflecting a growth of 29.86% from RMB 3,011,224 thousand in 2019[12] - Net profit for 2020 amounted to RMB 439,374 thousand, up by 11.54% from RMB 393,921 thousand in 2019[12] - Basic earnings per share for 2020 were RMB 67, a slight decrease from RMB 69 in 2019[12] - The operating cash flow for 2020 was RMB 1,416,417 thousand, representing a significant increase of 102.50% from RMB 699,446 thousand in 2019[12] - The gross profit margin improved to 73.43% in 2020, up from 72.59% in 2019[12] - The net profit margin decreased to 8.25% in 2020, down from 9.50% in 2019[12] - Shareholders' profit attributable to the company was RMB 452.84 million, up 11.64% from the previous year[18] - Net profit attributable to shareholders for the year ended December 31, 2020, was RMB 452.84 million, an increase of 11.64% from RMB 405.61 million in 2019, with a net profit margin of 8.25%[32] Revenue Sources - The main brands "Koradior" and "NAERSI" recorded retail sales of RMB 1,970.43 million and RMB 1,202.06 million, respectively[18] - E-commerce revenue for the year ended December 31, 2020, was RMB 612.39 million, a 52.88% increase from RMB 400.57 million in the previous year, driven by increased online sales[25] - Direct retail stores generated revenue of RMB 4,385.06 million, a 34.37% increase from RMB 3,263.38 million in 2019, with 1,422 direct retail stores as of December 31, 2020[45] - The brand "Koradior" generated revenue of RMB 1,970.43 million, representing 37.00% of total revenue, while "NAERSI" contributed RMB 1,202.06 million, or 22.57%[42] - The company's e-commerce sales from EEKA Fashion Mall amounted to RMB 32.67 million, representing 5.34% of total e-commerce revenue[46] Retail Network and Expansion - As of December 31, 2020, the company operated 1,836 retail stores across 32 provinces, municipalities, and autonomous regions in China[18] - The company aims to expand its retail network primarily through increasing the number of directly operated retail stores, which accounted for approximately 82.35% of total revenue in 2020[25] - The total number of retail stores increased by 139, with 512 new stores opened and 373 closed, resulting in a total of 1,836 stores as of December 31, 2020[54] Cost and Expenses - Selling and distribution expenses increased by 31.76% to RMB 2,930.05 million, attributed to higher sales and expansion of retail stores[28] - Administrative expenses increased by 68.05% to RMB 519.11 million, mainly due to the acquisition of Keen Reach and increased personnel costs[29] - Financing costs rose by 79.47% to RMB 46.77 million, primarily due to increased lease liabilities and borrowings[30] - Salary and benefits expenses totaled RMB 1,090.30 million, accounting for 20.47% of total revenue, a 32.62% increase from RMB 822.12 million (19.82% of total revenue) in 2019[60] Supply Chain and Procurement - The company improved its supply chain capabilities significantly in 2020, leading to a decrease in procurement prices for various fabrics[20] - The company implemented a supplier relationship management system to enhance supply chain efficiency, resulting in improved procurement concentration and reduced procurement prices for silk, wool, and acetate fabrics[63] - The company aims to enhance its supply chain management through centralized procurement and flexible production to improve efficiency and reduce costs[71] Corporate Governance - The company has adopted and complied with the corporate governance code based on the Stock Exchange Listing Rules, except for the provision that the roles of Chairman and CEO should be separate[83] - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a balanced decision-making process[84] - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience in board member selection[97] - The company provides monthly updates on performance and encourages continuous professional development for all directors[92] Environmental and Social Responsibility - The company is committed to environmental sustainability, implementing green practices and promoting recycling and waste reduction in its operations[122] - The total greenhouse gas emissions for the year ended December 31, 2020, amounted to 33,394.05 tons of CO2 equivalent, representing an increase of 18.89% or 5,307.01 tons compared to 28,087.04 tons in 2019[176] - The company emphasizes energy conservation and emission reduction across all processes from design and product planning to sales and distribution[174] - The company has established a comprehensive mechanism to monitor suppliers to ensure compliance with environmental laws and regulations, aiming to reduce greenhouse gas emissions during production[175] Employee Development and Well-being - Total employees as of December 31, 2020, reached 9,916, an increase from 9,631 in 2019, with a 2.96% growth[192] - The company promotes employee well-being through various cultural, social, and sports activities, enhancing work-life balance[195] - Average training hours per employee increased to 28.03 hours in 2020 from 27.21 hours in 2019[198] - The company has implemented a health and safety policy tailored for retail and operational employees, ensuring compliance with relevant laws and regulations[194] Market Outlook and Strategy - The company anticipates a strong recovery in the Chinese economy in 2021, driven by stimulus policies, with continued growth in mid-to-high-end consumer spending[64] - The company plans to maintain a steady yet progressive approach in 2021, actively assessing and responding to market changes[65] - The company aims to steadily expand its market share and enhance its position as a leading player in the mid-to-high-end women's apparel market in China[66] Risk Factors - The company faces significant fashion risk, as it must accurately predict and respond to changing consumer preferences to avoid lower sales and profit margins[112] - Economic fluctuations can impact consumer spending on non-essential items like women's apparel, potentially leading to increased inventory and decreased revenue and profit[114] - Climate change poses operational risks, with potential impacts on sales due to seasonal weather variations affecting inventory suitability[188]
赢家时尚(03709) - 2020 - 年度财报