LFX(SH:600612)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was CNY 51.72 billion, an increase of 4.22% compared to CNY 49.63 billion in 2019[17]. - The net profit attributable to shareholders for 2020 was CNY 1.59 billion, representing a growth of 12.64% from CNY 1.41 billion in 2019[17]. - The net cash flow from operating activities reached CNY 2.35 billion, a significant increase of 287.23% compared to a negative cash flow of CNY 1.25 billion in 2019[17]. - The total assets of the company at the end of 2020 were CNY 19.56 billion, up 13.87% from CNY 17.18 billion at the end of 2019[19]. - The company's net assets attributable to shareholders increased to CNY 7.96 billion, reflecting a growth of 13.46% from CNY 7.02 billion in 2019[17]. - Basic earnings per share for 2020 were CNY 3.0319, an increase of 12.64% compared to CNY 2.6916 in 2019[19]. - The total profit for 2020 was 2.794 billion yuan, exceeding the board's target of 2.545 billion yuan by 109.78%, and showing a 12.08% increase from 2.493 billion yuan in 2019[30]. - The net profit attributable to shareholders was 1.586 billion yuan, surpassing the board's target of 1.435 billion yuan by 110.52%, and up 12.64% from 1.408 billion yuan in 2019[31]. Market and Industry Insights - In 2020, the retail sales of gold and silver jewelry in China were RMB 237.6 billion, a decrease of 4.7% year-on-year[26]. - The actual gold consumption in China was 820.98 tons in 2020, a decrease of 18.13% compared to 2019[26]. - The company faced a challenging market environment in 2020 but maintained a commitment to strengthening its operations and competitive advantages[26]. - The company's main business, represented by the "Lao Feng Xiang" brand, accounted for 99.12% of total revenue and 94.89% of total profit in 2020[25]. Strategic Initiatives and Future Plans - The company aims to deepen reforms and solidify its development foundation as part of its strategic goals for the future[26]. - The company plans to distribute a cash dividend of CNY 12.50 per 10 shares, totaling CNY 653.90 million, based on the total share capital as of December 31, 2020[4]. - The company aims for a total revenue of 57.5 billion yuan in 2021, representing an 11.17% increase from 2020[66]. - The total profit target for 2021 is set at 3.081 billion yuan, reflecting a 10.26% growth compared to the previous year[66]. - The company plans to open at least 200 new retail outlets, including franchise stores and counters, in 2021[69]. - The company will focus on developing 1-2 emerging regional markets with annual sales exceeding 2 billion yuan each[69]. Corporate Governance and Compliance - The company has no major litigation or arbitration matters for the year[90]. - The independent directors support the 2020 profit distribution plan, stating it aligns with legal regulations and the company's operational status[80]. - The company has engaged an accounting firm for RMB 1,900,000 for audit services for the year[87]. - The company is in compliance with commitments related to major asset restructuring without a set deadline for performance[83]. Social Responsibility and Community Engagement - The company actively participated in social responsibility initiatives, donating RMB 3 million to support COVID-19 relief efforts and providing rent reductions totaling RMB 10.53 million to 60 small and micro enterprises[32]. - The company engaged in cash asset management, with a total of RMB 1,700,000,000 in money market funds, with no overdue amounts reported[98]. - The company has maintained a zero record for major environmental pollution incidents in 2020, emphasizing its commitment to environmental protection[109]. Research and Development - The company applied for 398 patents in 2020, with 716 effective patents, enhancing its core competitiveness in the market[35]. - The company reported a research and development expense of CNY 20,011,625.42 for 2020, a decrease from CNY 22,166,397.39 in 2019[172]. Shareholder Information - The total cash dividend amount for 2020 is RMB 653,897,205, based on a total share capital of 523,117,764 shares[79]. - The top ten shareholders hold a total of 220,171,793 shares, representing 42.09% of the total shares outstanding[119]. - The largest shareholder, Shanghai Huangpu District State-owned Assets Supervision and Administration Commission, has no restricted shares[119]. Financial Position and Assets - The total assets at the end of the period were significantly impacted by a 59.61% decrease in accounts receivable, totaling ¥150,104,254.28[52]. - The company reported a significant increase in inventory, which stood at ¥11,882,149,184.17 in 2020, compared to ¥11,405,032,386.18 in 2019, reflecting an increase of approximately 4.19%[165]. - The total liabilities increased to CNY 22,345,755.91 in 2020, compared to CNY 19,688,242.31 in 2019, indicating a rise of 8.39%[170]. Operational Efficiency - The company reduced sales expenses by 7.50% and management expenses by 12.75% compared to the previous year, indicating improved cost management[37]. - The company reported a net profit margin of 12%, reflecting improved operational efficiency and cost management measures[135].