MIHF(SH:600337)2021-04-25 16:00Financial Performance - In 2020, the company achieved a net profit attributable to shareholders of 306,409,797.78 yuan, with total distributable profits amounting to 2,114,251,187.51 yuan[7]. - The company's operating revenue for 2020 was approximately ¥4.57 billion, a decrease of 18.19% compared to ¥5.59 billion in 2019[23]. - Net profit attributable to shareholders was approximately ¥306.41 million, down 33.91% from ¥463.64 million in 2019[23]. - The net profit after deducting non-recurring gains and losses was approximately ¥100.62 million, a significant decline of 74.28% from ¥391.17 million in 2019[23]. - The basic earnings per share for 2020 was ¥0.19, a decrease of 32.14% compared to ¥0.28 in 2019[24]. - The weighted average return on equity decreased by 3.20 percentage points to 6.73% in 2020 from 9.93% in 2019[25]. - The total assets at the end of 2020 were approximately ¥7.53 billion, down 7.15% from ¥8.11 billion at the end of 2019[23]. - The gross profit margin declined by 3.89% due to promotional discount policies and fixed costs not being diluted during the pandemic[61]. - Retail home goods revenue decreased by 20.54%, with furniture sales down 20.98% year-on-year[64]. Shareholder Returns - The company plans to retain the distributable profits for the next fiscal year, with no cash dividends or stock bonuses proposed for 2020[7]. - The cumulative cash dividends from 2018 to 2020 accounted for 413.67% of the average distributable profits over the last three years, exceeding the required 30%[7]. - The company has established a three-year shareholder dividend return plan, ensuring stable returns for investors[111]. - The company has a cash dividend policy that resulted in a cumulative cash dividend amounting to 633.8 million yuan in 2020, representing 206.85% of the average distributable profit over the last three years[115]. Operational Strategies - The company has developed a new retail art space called "Meike洞學館" to enhance consumer experience and redefine retail value[35]. - Meike Home achieved a seamless consumption experience through an integrated online and offline channel strategy, utilizing a matrix of social online experience touchpoints[36]. - The company has invested in digital marketing and agile supply chain management since 2013, with a focus on a three-year digital marketing upgrade plan across seven modules[38]. - The company operates over 3,900 stores in more than 60 countries, employing a multi-brand strategy to cover the entire consumer lifecycle from first-time home buyers to lifestyle improvements[40]. - The company is focusing on both rental and owned properties, with a mix of leasing strategies to optimize costs and operational flexibility[85]. Market Expansion - The company plans to expand its market presence and enhance product offerings targeting younger consumers[72]. - In 2021, the company plans to open approximately 500 new stores under the A.R.T. brand, focusing on market expansion and enhancing visibility[101]. - The company will establish around 100 MHF design studios and custom solid installation businesses in existing and new cities to drive rapid growth[101]. - The international business experienced significant recovery, with orders exceeding expectations due to enhanced online marketing efforts and virtual product presentations[57]. Digital Transformation - The company has formed strategic partnerships with Huawei and Tencent to accelerate its digital transformation and enhance its online presence[48]. - The company is exploring digital transformation and omnichannel strategies, including live streaming and partnerships with key influencers[102]. - The company will transition towards a new retail digital supply chain, improving predictive supply chain analysis and optimization capabilities[106]. Corporate Governance - The company’s financial report received a standard unqualified audit opinion from Zhongshen Huayuan Accounting Firm[6]. - The board of directors consists of nine members, including three independent directors, ensuring compliance with legal requirements and a reasonable professional structure[186]. - The company has implemented a performance evaluation system for senior management, focusing on both individual contributions and overall company performance[188]. - The company has maintained effective communication with stakeholders, including banks, employees, customers, suppliers, and the community, to promote sustainable development[189]. Environmental Responsibility - The company was recognized as an "Excellent Enterprise" by the Ministry of Ecology and Environment for its green supply chain management practices[145]. - The company has developed a hazardous waste management system, ensuring proper storage and disposal in accordance with regulations[144]. - The company’s environmental management systems have been certified under ISO standards, demonstrating commitment to quality and sustainability[145]. Intellectual Property - The company aims to enhance its international market presence by optimizing customer service and expanding designer and e-commerce channels[106]. - The company is committed to protecting its intellectual property rights and has expanded its online and offline enforcement efforts[107]. - In 2020, the company successfully deleted over 10,000 infringement links online and won more than 180 trademark and patent lawsuits, with compensation amounting to over 10 million yuan[107]. Employee Management - The number of employees in the parent company was 3,689, while the total number of employees in major subsidiaries was 6,455, resulting in a combined total of 10,144 employees[178]. - The company emphasizes a performance-based compensation mechanism linked to overall business performance and individual contributions, with a focus on flexible and timely adjustments[180]. - The total remuneration for all directors, supervisors, and senior management was 8.164 million yuan[176].