SHD(SH:600630)2021-04-14 16:00Financial Performance - In 2020, the company reported a net profit attributable to shareholders of -294,189,458.31 CNY, a decrease of 1,636.26% compared to the previous year[6]. - The total operating revenue for 2020 was 3,254,042,817.21 CNY, reflecting a decline of 20.53% from 2019[30]. - The company's net cash flow from operating activities was 189,418,328.08 CNY, a significant recovery from -196,755,115.67 CNY in 2019[30]. - As of the end of 2020, the total assets amounted to 2,626,494,109.33 CNY, down 11.23% from the previous year[30]. - The net assets attributable to shareholders decreased by 16.24% to 1,526,692,340.71 CNY at the end of 2020[30]. - The basic earnings per share for 2020 was -0.69 CNY, compared to 0.05 CNY in 2019, marking a decrease of 1,480.00%[31]. - The diluted earnings per share (EPS) decreased significantly to -0.69 CNY, a drop of 1,480% year-on-year[34]. - The net profit attributable to shareholders decreased sharply, primarily due to reduced sales in the apparel and home textile brands caused by the COVID-19 pandemic[34]. - The company's weighted average return on equity (ROE) was -17.56%, a decrease of 18.61 percentage points year-on-year[34]. - The net profit attributable to shareholders for Q4 was -173,643,552.10 CNY, reflecting a significant decline compared to the previous year[35]. Revenue and Sales - The total revenue for the year was 3,453,043,256.21 CNY, with quarterly revenues of 727.25 million CNY in Q1, 863.46 million CNY in Q2, 815.42 million CNY in Q3, and 847.91 million CNY in Q4[35]. - The company achieved a total revenue of 3.254 billion RMB, a year-on-year decrease of 20.53%[69]. - The company exported 224.2 billion masks in 2020, including 65 billion medical masks, contributing over 50 billion USD to the export value[47]. - The company achieved sales of over 275 million RMB from the production of pandemic prevention materials, including masks and protective clothing[66]. - The revenue from epidemic prevention products reached 275.02 million, contributing significantly to the company's social responsibility during the pandemic[86]. - The revenue from home textiles fell by 49.64% to 111 million, largely due to reduced retail and group purchase orders[86]. - The revenue from overseas markets increased slightly by 0.43% to approximately 1.23 billion, contrasting with domestic declines[85]. - The company reported a revenue of 108,259 million RMB for knitted products, with a gross profit margin of 45%[125]. - The home textile segment generated a revenue of 10,509 million RMB, with a gross profit margin of 7%[125]. - The apparel segment achieved a revenue of 16,502 million RMB, with a gross profit margin of 4%[125]. Operational Changes and Strategies - The company operates under a multi-channel business model, focusing on self-operated sales and online sales across major e-commerce platforms[43]. - The company established a new retail model combining online and offline channels, referred to as "1+3" new retail, enhancing consumer interaction and experience[55]. - The company plans to enhance its product line and expand its market presence by leveraging both domestic and international trade resources[41]. - The company focused on developing large clients for its corporate clothing and group purchase business, creating a new growth point[65]. - The company emphasized supply chain management, integrating business flows, information flows, logistics, and capital flows to enhance competitiveness[52]. - The company plans to expand production lines for masks and protective clothing, which contributed to increased cash outflows in investing activities[72]. - The company is focusing on expanding new channels and developing new products to support future growth[119]. - The company has implemented a "1+3" new retail model to integrate online and offline operations[119]. - The company aims to enhance brand value through innovation in materials and technology[119]. Cash Flow and Investments - The net cash flow from operating activities significantly increased to CNY 189,418,328.08, compared to a negative cash flow of CNY -196,755,115.67 in the previous year[71]. - The net cash flow from investing activities decreased significantly to CNY -116,475,266.08, a decline of 277.00% year-over-year[72]. - The net cash flow from financing activities also saw a substantial decrease to CNY 3,389,443.15, down 97.07% compared to the previous year[72]. - Cash and cash equivalents at the end of the period reached ¥385,616,115.14, accounting for 14.68% of total assets, an increase of 16.33% compared to the previous period[108]. - Accounts receivable amounted to ¥424,651,511.77, representing 16.17% of total assets, with a growth of 12.03% from the last period[108]. - Inventory decreased to ¥596,113,395.72, which is 22.70% of total assets, reflecting a significant reduction of 40.46% due to marketing strategies aimed at lowering stock levels[108]. Legal and Compliance Matters - The company has faced significant litigation matters during the year, including a claim involving ICT COTTON LIMITED for USD 6,376,028.01[179]. - The company is also involved in litigation with individuals regarding property rights, with a judgment confirming ownership of 80% of property rights in Hongkou District[181]. - The company has not reported any major accounting errors or changes in its accounting firm during the audit period[176]. - The company has not faced any risks of suspension or termination of its listing status[176]. - The company has initiated litigation against Lu Rongwei and Xianfeng Company to recover losses incurred from the arbitration[185]. - The company has made efforts to expedite the execution of court orders against Lu Rongwei and Xianfeng Company[189]. Future Outlook and Risks - The company has outlined potential risks in its future development in the report[10]. - The global economic environment remains complex and uncertain, with ongoing risks from the pandemic and international trade disputes impacting the textile industry[148]. - The textile industry is facing significant changes and challenges due to the COVID-19 pandemic, emphasizing the need for supply chain localization and diversification to mitigate market risks[143]. - The company aims to enhance its core innovation capabilities and resource allocation to become a pillar industry in the national economy during the "14th Five-Year Plan" period[146]. - The company plans to optimize its e-commerce and offline business structures, enhance profitability in children's clothing, and integrate resources in home textiles to drive growth[147].