LYFEN(SH:603777)2025-04-28 14:45Financial Performance - The net profit attributable to the parent company for 2024 is -75,267,602.29 CNY, indicating a loss [3]. - The company's operating revenue for 2024 was CNY 3,370,482,716.38, a decrease of 15.25% compared to 2023 [18]. - The net profit attributable to shareholders for 2024 was CNY -75,267,602.29, representing a decline of 231.94% year-over-year [19]. - The basic earnings per share for 2024 was CNY -0.23, down 235.29% from CNY 0.17 in 2023 [19]. - The total assets at the end of 2024 were CNY 3,164,288,546.69, a decrease of 6.25% from the previous year [18]. - The cash flow from operating activities for 2024 was CNY 304,365,787.09, down 13.91% compared to 2023 [18]. - The company achieved total revenue of CNY 3,370,482,716.38 in 2024, a decrease of 15.25% year-on-year [67]. - Retail revenue from stores was CNY 2,020,455,052.67, accounting for 78.61% of the previous year's figure [67]. - The gross profit margin remained stable at 38.81%, with main business revenue of CNY 3,209,865,989.55 and main business cost of CNY 1,964,025,082.92 [67]. Dividend Policy - The company plans not to distribute cash dividends or stock dividends for the 2024 fiscal year to ensure sufficient funds for business expansion and risk management [3]. - The company has a cash dividend policy that emphasizes reasonable returns to investors while ensuring sustainable development, with a minimum cash distribution of 10% of the annual distributable profit [149]. - The company plans to distribute at least 80% of profits as cash dividends if in a mature stage without major capital expenditure plans [150]. - The cumulative cash dividends over the last three accounting years amounted to ¥47,791,506.94, with an average net profit of ¥27,935,745.77, resulting in a cash dividend ratio of 171.08% [155]. Business Strategy and Expansion - The company aims to continue expanding its franchise business and enhance community group buying efforts in 2025 [3]. - The company is focusing on high-quality, cost-effective products as consumer demand shifts towards value and quality rather than just price [46]. - The company is exploring the "first launch economy" model, which emphasizes the introduction of new products and services that meet consumer demands for novelty and quality [47]. - The company plans to implement a "Lai Yifen 2.0" model to create diverse consumption scenarios and support franchise partners with lower costs and higher operational standards [107]. - The company aims to enhance its market presence through strategic store openings and franchise partnerships in key regions [94]. Product Development and Innovation - The company launched over 600 new products in 2024, including high-potential items like sweet and spicy chicken feet and smoked sausages [51]. - The company has developed over 70 health-focused snack products aimed at urban white-collar workers, enhancing its market share in the healthy snack segment [60]. - The company has obtained 646 copyrights and 47 patents as of December 2024, enhancing its innovation capabilities [52]. - The company introduced the MPD system for product lifecycle management, which has streamlined the product development process, reducing time to market and production costs while enhancing market competitiveness [40]. Risk Management - The report includes a risk statement regarding forward-looking statements, advising investors to be aware of potential investment risks [4]. - The company has implemented a comprehensive risk management system to enhance financial data analysis and fund usage supervision [164]. - The company is facing risks from rising store rental and labor costs, which could negatively impact operating performance [111]. Corporate Governance - All board members attended the board meeting, ensuring the authenticity and completeness of the annual report [5]. - The board of directors consists of 11 members, including 4 independent directors, ensuring compliance with legal requirements [116]. - The company has committed to continuously improving corporate governance and internal management systems in accordance with regulatory requirements [119]. - The company has established an Insider Information Management System to strictly control the range of insiders and has not found any violations of insider trading during the reporting period [118]. Audit and Compliance - The company received a standard unqualified audit report from its accounting firm, Lixin [5]. - The audit committee held six meetings during the reporting period, discussing key issues such as the annual audit plan and the financial report for 2023 [137]. - The company has established a sound internal control system, which is effectively implemented and compliant with legal requirements [137]. Employee Engagement and Training - The company reported a total of 4,590 employees, with 470 in the parent company and 4,120 in major subsidiaries [142]. - The company conducted 22 training sessions in 2024, covering nearly 1,040 middle and junior staff, achieving an average satisfaction score of 95.3 [146]. - The company organized a New Year gathering with over 5,000 participants to enhance employee engagement and motivation [145]. Market Trends - The leisure food market in China grew from CNY 1,232.31 billion in 2018 to CNY 1,671.58 billion in 2022, with projections to reach CNY 2,385.99 billion by 2027 [43]. - Health-conscious products are becoming a primary focus, with 61% of consumers prioritizing safety and health when purchasing snacks, and over 80% willing to pay a premium for high-quality options [46]. - The health snack segment is transitioning from auxiliary consumption to a necessity, driven by increasing consumer demand for nutrition and health [105]. Community and Social Responsibility - The company made a total of 191.06 million CNY in donations, benefiting 23,600 individuals [169]. - The company invested 428 million CNY in poverty alleviation and rural revitalization projects, benefiting 42,575 individuals [170].