Youngor(SH:600177)2021-04-26 16:00Financial Performance - In 2020, the company achieved a net profit of CNY 6,864,609,284.69, with a legal reserve of CNY 228,312,487.91, resulting in a distributable profit of CNY 21,122,772,225.87 after accounting for previous undistributed profits and dividends [5]. - The proposed cash dividend is CNY 0.50 per share, totaling CNY 2,314,501,486.50, which represents 31.99% of the net profit attributable to shareholders for 2020 [5]. - The total amount spent on share repurchases in 2020 was CNY 2,059,685,055.23, which, when combined with the cash dividend, results in a total cash distribution of CNY 4,374,186,541.73, accounting for 60.45% of the net profit attributable to shareholders [5]. - The company's operating revenue for 2020 was CNY 11,475,570,511.86, a decrease of 7.61% compared to CNY 12,421,171,432.59 in 2019 [18]. - Net profit attributable to shareholders for 2020 reached CNY 7,235,591,574.24, representing an increase of 82.15% from CNY 3,972,408,923.47 in 2019 [18]. - The net profit after deducting non-recurring gains and losses was CNY 3,144,308,523.14, down 12.44% from CNY 3,591,218,171.90 in 2019 [18]. - Basic earnings per share for 2020 were CNY 1.56, an increase of 93.07% compared to CNY 0.81 in 2019 [19]. - The weighted average return on equity for 2020 was 26.03%, an increase of 11.89 percentage points from 14.14% in 2019 [19]. - The company reported a net cash flow from operating activities of CNY 2,205,669,257.02, down 20.21% from CNY 2,764,431,913.33 in 2019 [18]. - Non-recurring gains and losses totaled CNY 4,091,283,051.10 in 2020, significantly higher than CNY 381,190,751.57 in 2019 [22]. Business Strategy and Operations - The company is focused on integrating and optimizing its diversified industries, transitioning to digital and intelligent operations, and ensuring the successful transfer of its legacy to the next generation [2]. - The company emphasizes the importance of cultural change, team building, and technological investment to enhance operational efficiency and brand development [2]. - The company has committed to providing high-quality services to society and creating greater value for shareholders and employees [2]. - The company plans to continue exploring new strategies in response to the challenges posed by the COVID-19 pandemic and market uncertainties [2]. - The company has established a diversified brand strategy with multiple brands including YOUNGOR, Hart Schaffner Marx, and MAYOR, covering various product categories and price ranges [29]. - The company maintains a "self-production + outsourcing" supply system, ensuring flexibility in supply capabilities [29]. - The company has invested in new technologies such as AI and big data analytics to enhance product offerings and retail operations [25]. - The company implemented a "six-in-one" strategy in its smart factory, enhancing production efficiency and supporting personalized consumer demand [37]. Market and Industry Insights - The real estate market in Ningbo saw a 7% increase in residential transaction area to 5,520,200 square meters, with an average price rise of 10% to CNY 27,733 per square meter [26]. - The online retail sales of clothing increased by 5.8% year-on-year in 2020, reflecting a recovery in consumer demand and confidence [25]. - The average premium rate for residential land transactions in Ningbo was 24%, indicating strong competition in the real estate market [26]. - The company reported a total of CNY 1,775,099.55 million in financial assets at the beginning of the year, which decreased to CNY 1,438,744.48 million by year-end, indicating a significant reduction of CNY 336,355.08 million [23]. Shareholder and Capital Management - The company has implemented a cash dividend policy, distributing a total of 437,418.65 million RMB in 2020, which represents 60.45% of the net profit attributable to shareholders [86]. - The company has cumulatively distributed cash dividends totaling 19.337 billion RMB since its listing, with a payout ratio of 51.53% [86]. - The company completed a share repurchase of 385,023,321 shares on May 19, 2020, reducing the total shares to 4,629,002,973 [116]. - The total number of ordinary shareholders increased from 101,887 to 103,112 during the reporting period [120]. - The top shareholder, Ningbo Yageer Holdings Co., held 1,529,058,577 shares, representing 33.03% of the total shares [121]. Risk Management and Compliance - The company has detailed potential risks in its report, encouraging investors to review the relevant sections for a comprehensive understanding [8]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties [6]. - The company has not violated any decision-making procedures regarding external guarantees [7]. - The company has not disclosed any significant deficiencies in internal control during the reporting period [163]. - The company has not reported any related party transactions that could compromise its independence or operational capabilities [161]. Human Resources and Governance - The company employed a total of 20,222 staff, including 192 in the parent company and 20,030 in major subsidiaries [138]. - The company has established a salary system that links performance to pay, with frontline employees on a piece-rate system and management on an annual salary basis [139]. - The company has implemented training programs focusing on management skills, professional skills, and comprehensive application for mid-to-senior level management [140]. - The company held 1 annual general meeting and 1 extraordinary general meeting during the reporting period, ensuring compliance with legal requirements and protecting the rights of all shareholders, especially minority shareholders [143]. Environmental and Social Responsibility - The wastewater treatment facility has a daily capacity of 1,000 tons and meets the discharge standards for textile dyeing and finishing industries [109]. - The company has established an emergency response plan for environmental incidents and has implemented a self-monitoring scheme for pollution [110]. - The company has not disclosed any significant changes in its environmental information during the reporting period [112]. Financial Position and Assets - The company's total assets at the end of 2020 were CNY 80,015,085,418.20, a slight decrease of 0.80% from CNY 80,661,323,032.65 at the end of 2019 [18]. - The company's total liabilities decreased to ¥51,308,191,966.29 in 2020 from ¥52,654,434,402.70 in 2019, a reduction of approximately 2.6% [177]. - The total owner's equity increased to ¥28,706,893,451.91 in 2020 from ¥28,006,888,629.95 in 2019, showing an increase of about 2.5% [178]. - The company reported a significant increase in investment income, reaching CNY 7,605,725,280.11 in 2020, compared to CNY 2,812,634,477.03 in 2019, a growth of 170.7% [181].