CMC(SH:600327)2022-04-19 16:00Financial Performance - In 2021, the company achieved a net profit of RMB 670,145,586.46, with a net profit attributable to shareholders of the listed company amounting to RMB 640,589,073.77[5]. - The company's operating revenue for 2021 was approximately ¥6.90 billion, a decrease of 13% compared to ¥7.94 billion in 2020[22]. - Net profit attributable to shareholders increased by 103.32% to approximately ¥640.59 million in 2021 from ¥315.07 million in 2020[22]. - Basic earnings per share rose to ¥0.724 in 2021, reflecting a 103.37% increase from ¥0.356 in 2020[23]. - The weighted average return on equity increased to 23.30% in 2021, up by 14.14 percentage points from 9.16% in 2020[23]. - The gross profit margin for the overall business was 40.47% in 2021, slightly down from 42.04% in 2020[47]. - The gross profit margin for the "San Feng Qiao" dining segment was 45.89% in 2021, down from 54.29% in 2020[52]. - The medical health segment reported operating revenue of 107,623 million yuan in 2021, with a gross profit margin of 7.70%[54]. - The company achieved operating revenue of 6.905 billion RMB, a decrease of 13.00% year-on-year[60]. - Operating costs decreased by 14.87% to 5.881 billion RMB compared to the previous year[62]. Dividend Distribution - The proposed cash dividend distribution is RMB 3.50 per 10 shares, totaling RMB 309,672,831.30 based on a total share capital of 884,779,518 shares[5]. - The board of directors has approved the profit distribution plan, which is subject to the approval of the annual general meeting[6]. - The company approved a cash dividend distribution plan for the 2020 fiscal year, distributing a total of 221,194,879.50 CNY, which is 2.50 CNY per 10 shares[152]. - The company also approved a cash dividend distribution plan for the first half of 2021, with the same distribution amount of 221,194,879.50 CNY, again at 2.50 CNY per 10 shares[153]. Corporate Governance - The company has established a robust corporate governance structure to ensure compliance with legal requirements and protect shareholder interests[127]. - The company maintains independence from its controlling shareholder, ensuring that decision-making and operations are conducted separately[130]. - The company has conducted several shareholder meetings in 2021, with resolutions published on designated websites for transparency[131]. - The total remuneration for all directors, supervisors, and senior management during the reporting period amounted to 8.1722 million yuan[138]. - The company has a total of 6 independent directors, with no changes in their shareholdings during the reporting period[138]. - The remuneration assessment process is overseen by the board's compensation and assessment committee, ensuring alignment with performance metrics[138]. - The company has complied with the requirements of the China Securities Regulatory Commission regarding corporate governance self-inspection[160]. Operational Developments - The company has opened 5 new supermarket stores and completed the renovation of 2 stores during the reporting period, showing positive year-on-year growth[31]. - The company signed contracts for 15 new direct stores in the Sanfengqiao food segment and established a franchise system for expansion[33]. - The company has successfully signed and opened 2 pilot franchise stores in the 7-Eleven convenience store business, optimizing product structure and reducing store construction costs[34]. - The company has streamlined its organizational structure to improve operational efficiency, aiming for a "lean, efficient, and flexible" organization[40]. - The company has established a digital transformation strategy, enhancing capabilities in marketing, service, operations, management, and decision-making, including the implementation of a BI platform for financial budgeting[42]. - The company has completed a major asset restructuring, divesting its traditional fuel vehicle sales and service business to focus on high-margin retail and healthcare sectors[38]. - The company has expanded its retail business, with "Dadongfang Department Store" targeting high-end consumers and maintaining a stable partnership with nearly 1,000 quality suppliers[46]. Market and Industry Trends - In 2021, the overall consumption market showed a gradual recovery, with retail sales growth stabilizing and consumer demand being released steadily[99]. - The number of newly opened shopping centers in 2021 was 545, the lowest in five years, while the total area of newly opened shopping centers increased by 35% compared to 2020, reaching 4,768 million square meters[104]. - The demand for medical services is expected to grow due to factors such as an aging population and increased health awareness among residents[108]. - The healthcare sector is shifting towards differentiated development, focusing on quality and efficiency rather than just scale expansion[101]. - The consumer sentiment in the food and beverage industry is under pressure due to the pandemic, but there is potential for growth in delivery and online services[100]. Strategic Initiatives - The company has initiated a dual-core strategy focusing on modern retail and healthcare, positioning itself as a leader in the Jiangsu region[45]. - The company plans to focus on pediatric and orthopedic sectors as core strategic investment areas in its medical health business for 2022[119]. - The company aims to enhance the operational quality of its department stores and transition towards a multi-format business model[114]. - The company intends to expand its "San Feng Qiao" food brand across the Jiangsu, Zhejiang, and Shanghai regions, enhancing market recognition[114]. - The company will continue to invest in and acquire medical health businesses to increase their asset and revenue scale within its structure[114]. Risk Management - The company has outlined potential risks in its management discussion and analysis section, emphasizing the importance of investor awareness regarding these risks[8]. - The company faces macroeconomic risks, including uncertainties from economic transitions and the ongoing challenges posed by the COVID-19 pandemic, which may impact consumer confidence and demand[122]. - The competitive landscape in the consumer sector includes challenges from e-commerce and new consumption models, putting pressure on traditional retail and healthcare services[123]. - The company is committed to addressing management and operational risks, particularly in the healthcare sector, by enhancing talent development and risk management capabilities[124]. Audit and Compliance - The company has received a standard unqualified audit report from the auditing firm Tianye[9]. - The internal control system has been continuously updated and improved, with no significant issues found during the internal control evaluation in the reporting period[156]. - All subsidiaries were effectively controlled during the reporting period, with no major deficiencies in management control[158]. - The company received a standard unqualified opinion in the internal control audit report for the 2021 fiscal year[160].