QJCT(SH:600706)2021-05-21 16:00Financial Performance - The company's operating revenue for 2020 was CNY 1,076,794,038.84, a decrease of 17.50% compared to CNY 1,305,186,979.54 in 2019[15]. - The net profit attributable to shareholders for 2020 was a loss of CNY 71,863,269.23, a decline of 259.60% from a profit of CNY 45,026,654.39 in 2019[15]. - The net cash flow from operating activities was CNY 36,844,097.32, down 21.62% from CNY 47,006,105.03 in 2019[15]. - The total assets increased by 21.53% to CNY 3,215,023,707.75 at the end of 2020, compared to CNY 2,645,450,647.35 at the end of 2019[15]. - The net assets attributable to shareholders decreased by 7.15% to CNY 981,267,388.86 at the end of 2020, down from CNY 1,056,792,656.44 at the end of 2019[15]. - The basic earnings per share (EPS) for 2020 was -0.33 CNY, a decrease of 257.14% compared to 0.21 CNY in 2019[16]. - The diluted EPS for 2020 was also -0.33 CNY, reflecting the same percentage decrease as the basic EPS[16]. - The weighted average return on equity (ROE) dropped to -7.05% in 2020, a decrease of 11.37 percentage points from 4.32% in 2019[16]. - The company reported a total revenue of 384,694,190.40 CNY in Q4 2020, with a net profit attributable to shareholders of -37,177,267.00 CNY[18]. - The total revenue for the entire year was significantly affected, with Q1 revenue at 164,506,399.32 CNY and Q2 at 180,082,299.85 CNY[18]. Impact of COVID-19 - The net profit attributable to shareholders decreased significantly due to reduced main business income from tourism ticket sales impacted by the pandemic[16]. - The impact of COVID-19 led to a 52.1% decrease in domestic tourism numbers, totaling 2.879 billion visits in 2020, down from the previous year[30]. - Domestic tourism revenue fell by 61.1% to 2.23 trillion CNY, a decrease of 3.5 trillion CNY compared to the previous year[30]. - The company’s scenic areas were closed from January 24, 2020, and hotels and restaurants suspended operations from January 27, 2020, due to government pandemic measures[39]. - The company’s open scenic areas began reopening on February 21, 2020, with full operations resuming by May 30, 2020[39]. Business Operations and Strategy - The company operates several major cultural tourism sites, including the "Giant Wild Goose Pagoda" and "Daming Palace National Heritage Park," contributing to its diverse business model[26]. - The company has developed a comprehensive product system for tourism services, including inbound, outbound, and domestic tourism, as well as customized travel options[27]. - The company is focused on expanding its cultural tourism performance through various themed performances and events, enhancing its market presence[27]. - The company plans to expand its market reach and revenue through the commercialization of cultural tourism products and brand marketing strategies[34]. - The company aims to optimize its industry layout and accelerate the integration of culture and tourism, tapping into new consumption growth points for high-quality development[64]. Financial Management and Investments - The company implemented rent reductions for over 200 tenants, amounting to approximately 13.48 million, to support non-state-owned enterprises and individual businesses during the pandemic[48]. - The company plans to invest approximately 155 million RMB in projects including acquiring 55% of Wuxi Huipao Sports Co., Ltd.[82]. - The company will focus on expanding its market share in scenic area management and intellectual services, targeting cultural heritage and leisure products[82]. - The company aims to enhance the integration of technology and tourism, increasing the fusion of internet and tourism products[82]. Related Party Transactions and Governance - The company has committed to avoiding any form of competition with its listed business after becoming the controlling shareholder, ensuring no direct or indirect engagement in similar businesses[94]. - The commitment to avoid or reduce related party transactions has been reiterated, with agreements to ensure fair pricing and compliance with legal disclosure obligations[94]. - The company has disclosed its daily related party transactions for the 2020 fiscal year, which were approved at the 2019 annual general meeting[113]. - The total amount of related party transactions reached CNY 14,676,088.77, accounting for 1.45% of similar transactions[114]. Employee and Community Engagement - The company has implemented comprehensive employee welfare programs, including paid training and various social security benefits[155]. - The company has actively participated in pandemic prevention efforts, including establishing a leadership group and providing support to frontline healthcare workers[151]. - The company has engaged in significant related party transactions, reflecting its integrated business model within the cultural and tourism sectors[116]. - The company has organized various public welfare activities, totaling over 40 events throughout the year, to support healthcare workers and vulnerable groups[153]. Environmental and Regulatory Compliance - The company has successfully completed environmental impact registrations for several projects, including the Night Tour Water Dance Show and the Upgrade of the Royal Banquet Palace[159]. - The company has implemented ISO9001, ISO14001, and GB/45001 management system certifications to enhance environmental awareness among employees[158]. - The company promotes a green office concept, emphasizing resource conservation and low-carbon operations[158]. - The company has not disclosed any reasons for not providing environmental information for non-key pollutant units[159]. Future Outlook - The company anticipates a recovery in domestic tourism in 2021, projecting 4.1 billion domestic tourists and CNY 3.3 trillion in revenue, representing growth of 42% and 48% respectively compared to 2020[62]. - The company is committed to enhancing its core competitiveness and expanding its market presence in response to the evolving tourism landscape[77]. - The company is focused on optimizing and enhancing project designs based on market demand, indicating a proactive approach to business development[117].