S.Y.C.C.(SH:600306)2021-05-07 16:00Financial Performance - The company reported a net profit of -128.38 million RMB for 2020, with accumulated undistributed profits reaching -841.33 million RMB[4]. - Total revenue for 2020 was 191.93 million RMB, representing a decrease of 80.73% compared to 995.85 million RMB in 2019[23]. - The net profit attributable to shareholders for the entire year was negative, with the fourth quarter showing a loss of approximately ¥49.93 million, reflecting ongoing financial challenges[25]. - The net loss attributable to the parent company was CNY 149.14 million, an increase in loss of 40.52% compared to the previous year[36]. - The company reported a significant decrease in cash flow from operating activities, with a net cash flow of approximately -¥47.05 million in the second quarter[25]. - The company reported a significant decline in sales, with department store sales in Shenyang dropping by 84.54% to 144.98 million yuan compared to the previous year[53]. - The company reported a significant increase in interest expenses, totaling CNY 84,150,806.99 in 2020, compared to CNY 75,143,530.02 in 2019[175]. - The company reported a total of CNY 178,138,918.00 in paid-in capital at the end of the year, unchanged from the previous year[189]. Cash Flow and Assets - The net cash flow from operating activities was -41.72 million RMB, a decline of 176.18% from 54.76 million RMB in the previous year[23]. - As of the end of the reporting period, cash and cash equivalents amounted to 20.99 million yuan, a decrease of 31.91% from the previous period, mainly due to payments made to suppliers[48]. - The company's total assets decreased by 6.43% to 1.33 billion RMB from 1.42 billion RMB in 2019[23]. - Total current assets decreased to ¥75,982,499.32 in 2020 from ¥105,514,773.96 in 2019, a decline of approximately 28.0%[166]. - Cash and cash equivalents dropped to ¥20,996,846.53 in 2020, down from ¥30,834,647.34 in 2019, representing a decrease of about 31.9%[166]. - The total equity attributable to the parent company decreased by CNY 149,141,632.53 during the year, primarily due to comprehensive losses[187]. Business Operations and Strategy - The company operates under three business models: joint venture, leasing, and self-operated, with a focus on retail sales and rental income from merchants[30]. - The company has emphasized the importance of talent development and management training to adapt to industry changes and enhance competitiveness[32]. - The company plans to enhance service levels and strengthen supplier relationships to improve operational performance in 2021[65]. - The company aims to adapt its business model to meet the growing demand for diverse consumer needs and maintain a competitive edge in the retail market[63]. - The company is focusing on expanding its marketing channels through partnerships with e-commerce platforms like Siku and Zhenpin[66]. - The company is transitioning its supermarket area to include traditional market elements, enhancing its product offerings[66]. Market Conditions - The retail industry in China experienced a decline, with total retail sales of consumer goods dropping by 3.9% year-on-year to ¥39.20 trillion in 2020[30]. - Online retail sales in China grew by 10.9% year-on-year, reaching ¥11.76 trillion, highlighting a shift in consumer purchasing behavior[31]. - The retail market is expected to continue growing, driven by the government's focus on enhancing domestic consumption and investment strategies[61]. Risks and Challenges - The company faced significant industry and policy risks, which were detailed in the report[8]. - The company has faced significant risks, including macroeconomic environment risks and intense competition in the retail market[67]. - The company is at risk of being delisted due to negative net assets as of the end of 2020[67]. - The company has disclosed measures to improve its financial situation, but uncertainties regarding its ability to continue as a going concern remain[155]. Shareholder and Governance - The total number of ordinary shareholders increased from 6,832 to 7,720 during the reporting period[107]. - The company has a diverse board with members holding qualifications in finance, law, and management, enhancing its governance structure[121]. - The total pre-tax compensation for directors and senior management during the reporting period amounted to 2.6286 million CNY[119]. - The company has no preferred shareholders with voting rights, simplifying the governance structure[114]. Future Outlook - The company has set a future outlook with a revenue guidance of $1.5 billion for the next fiscal year, indicating a growth target of 25%[125]. - The company plans to enhance its online presence, with a target of increasing e-commerce sales by 50%[126]. - The company plans to enhance promotional activities during traditional holidays and increase member engagement to boost sales[66].