Store Operations and Expansion - The total number of stores operated by Lianhua Supermarket has reached 3,279, covering 23 provinces and municipalities in China[4]. - The company aims to continue its expansion strategy through direct operation, franchising, and acquisitions to strengthen its market position[4]. - The total number of partner stores reached 303 by the end of 2021, indicating ongoing expansion efforts[50]. - The total number of new stores opened during the period was 336, including 70 direct-operated stores and 266 franchise stores[99]. - The company closed 249 stores during the period, including 54 direct-operated stores and 195 franchise stores[99]. - As of December 31, 2021, the company had a total of 3,279 stores, an increase of 87 stores compared to the end of 2020, with approximately 84.90% located in the Greater East China region[110]. - The supermarket segment opened 214 new stores, including 44 direct-operated and 170 franchised stores, and closed 147 stores, resulting in a net increase of 67 stores[104]. - The convenience store segment opened 117 new stores, with 21 direct-operated and 96 franchised, while closing 97 stores, leading to a net increase of 20 stores[106]. Financial Performance - In 2021, the company recorded a revenue of approximately RMB 24.76 billion, a year-on-year decrease of about 6.0%[40]. - The net loss attributable to shareholders for the year was approximately RMB 423 million, an increase in loss of about RMB 103 million compared to the previous year[40]. - The gross profit for 2021 was RMB 3,061,729, resulting in a gross margin of 12.37%, down from 13.43% in 2020[54]. - The company reported a pre-tax loss of approximately RMB 274 million, an increase in loss of about RMB 259 million year-on-year[72]. - The net loss attributable to shareholders was approximately RMB 422.78 million, an increase in loss of about RMB 103.49 million or 32.4% year-on-year[76]. - The company’s shareholder equity decreased from approximately RMB 1.45 billion to approximately RMB 1.03 billion, primarily due to a loss of approximately RMB 422.78 million during the period[91]. - The company reported a significant increase in revenue, achieving a total of 51 million in the latest fiscal year, representing a year-over-year growth of 15%[186]. - The company reported a significant increase in revenue, achieving a year-over-year growth of 15% in Q2 2023, totaling $1.2 billion[196]. Digital Transformation and Technology - The company has achieved full digital coverage of stores in Shanghai by the end of 2021, with pilot promotions in Jiangsu and Anhui regions[44]. - The company is focusing on digital transformation, including cloud infrastructure and business data governance, to improve operational efficiency and data sharing[145]. - The company launched the "Lianhua Group Purchase" mini-program, a new business model for online ordering and in-store pickup[22]. - The company has focused on digital store system construction and operational upgrades, enhancing delivery efficiency and order fulfillment capabilities[47]. - The company is enhancing its digital systems to optimize workflows and improve operational efficiency, reducing reliance on manual processes[121]. - The company is investing $50 million in R&D for new technologies aimed at enhancing customer experience[196]. Supply Chain and Logistics - The company is focused on enhancing its logistics and supply chain capabilities to improve efficiency and customer satisfaction[18]. - The company aims to enhance its supply chain and integrate online and offline sales networks as part of its strategic focus for 2022[50]. - The company aims to strengthen its supply chain capabilities by building a cold chain logistics system to support the expansion of its franchise business[106]. - The company has committed to improving the efficiency of its supply chain through the integration of logistics and financial support systems[130]. - The company expanded third-party logistics operations and improved delivery response times to support business transformation[122]. Marketing and Customer Engagement - The company implemented a series of large-scale marketing activities to enhance brand awareness and consumer experience, including "Harvest 1 Yuan Purchase" and "30th Anniversary Weibo Brand Interaction"[44]. - The company developed a self-media ecosystem, optimizing marketing tools such as WeChat and video live streaming, which contributed to membership growth[119]. - The company aims to enhance customer engagement through improved service delivery, targeting a 15% increase in customer satisfaction scores[186]. - A new marketing strategy is set to roll out, aiming to increase brand awareness by 30% over the next six months[196]. Community and Social Responsibility - Lianhua Supermarket has been involved in various community recognition events, highlighting its commitment to social responsibility and community development[17]. - The company participated in emergency supply tasks in Shaoxing, completing 7 missions and supplying over 260,000 items[32]. - The company was recognized as a "Key Backbone Enterprise for Ensuring Supply and Stabilizing Prices" in Hangzhou for the 2021-2022 period[30]. Organizational Structure and Human Resources - The group reduced its total workforce to 27,780 employees, a decrease of 3,588 employees during the review period[125]. - The company faces challenges such as an inefficient organizational structure, aging management, and insufficient operational capabilities among store partners, which impact employee motivation[142]. - The company plans to enhance organizational efficiency through restructuring, optimizing staffing models, and improving incentive mechanisms to boost employee engagement[143]. - The company is focusing on optimizing employee compensation management to enhance frontline staff income and performance incentives[128]. Strategic Acquisitions - The company completed the acquisition of Zhujing Yibai Supermarket Co., marking a significant step in market expansion[27]. - Lianhua Huashang acquired 60% of Zhejiang Bailian Supermarket Co., Ltd. for RMB 180 million, enhancing its market presence in Zhuji City[156]. - The acquisition allows Lianhua Huashang to leverage Bailian Supermarket's strong brand recognition and market share in Zhuji, aiming to strengthen regional competitiveness[156].
联华超市(00980) - 2021 - 年度财报