n.n.store(SH:600712)2022-04-19 16:00Financial Performance - The company achieved a net profit of approximately CNY 2.64 million in 2021, a significant recovery from a net loss of CNY 130.25 million in 2020, marking a 102.03% increase year-over-year[19]. - Operating revenue for 2021 was CNY 807.88 million, reflecting a 3.65% increase compared to CNY 779.40 million in 2020[19]. - The company's net cash flow from operating activities was negative CNY 15.47 million, a decline of 186.30% from a positive cash flow of CNY 17.93 million in 2020[19]. - The total assets decreased by 4.88% to CNY 1.72 billion at the end of 2021, down from CNY 1.80 billion at the end of 2020[19]. - The company's net assets attributable to shareholders were CNY 885.58 million, a slight decrease of 0.86% from CNY 893.24 million in 2020[19]. - Basic earnings per share improved to CNY 0.0048 in 2021 from a loss of CNY 0.2391 in 2020, representing a 102.01% increase[20]. - The weighted average return on equity increased to 0.30% in 2021, up from -13.58% in 2020, an improvement of 13.88 percentage points[20]. - The total profit reached 8.49 million RMB, with a significant increase of 105.77% compared to the previous year[39]. - Net profit attributable to shareholders was 2.64 million RMB, marking a year-on-year growth of 102.03%[39]. Revenue and Sales - The main business revenue accounted for 89.39% of total operating income, with the appliance sector contributing 54.38%[33]. - The company reported a total of CNY 23.51 million in non-recurring gains and losses for 2021, compared to a loss of CNY 11.78 million in 2020[23]. - In Q1 2021, the company's operating revenue was approximately CNY 196.49 million, while in Q2 it increased to CNY 207.25 million, showing a growth of about 5.4%[22]. - The net profit attributable to shareholders in Q4 2021 was CNY 10.23 million, a significant recovery from a net loss of CNY 5.92 million in Q2[22]. - The retail sales of social consumer goods in China reached CNY 44.08 trillion in 2021, marking a year-on-year growth of 12.5%[25]. - The online retail sales in China reached CNY 13.09 trillion in 2021, with a year-on-year growth of 14.1%[29]. - The company's total revenue for the year 2021 was approximately 1.34 billion, with a year-on-year increase of 24.41% in the department store segment[47]. - The supermarket segment experienced a revenue decrease of 19.75%, primarily due to the closure of the Wuming store and the impact of community group buying[48]. - The automotive segment's revenue increased by 11.16%, reflecting a recovery from the previous year's pandemic impact[47]. - E-commerce revenue saw a slight decline of 0.48%, attributed to operational adjustments and the closure of a cross-border experience store[48]. Operational Efficiency - The company has outlined potential risks in its future development, which are detailed in the management discussion section of the report[6]. - The company aims to enhance digital operations and has implemented various online marketing strategies to attract new customers[27]. - The company operates multiple business formats, including department stores, supermarkets, and e-commerce, enhancing regional market influence[36]. - The company has established procurement teams across various sectors, including department stores and e-commerce, to manage inventory and supplier relationships effectively[72]. - The company implemented a policy to manage slow-moving and expired goods, including options for returns, exchanges, and markdown sales[72]. - The company has a strong brand presence as a "Chinese Time-honored Brand" with over 60 years of integrity in business[35]. - The company has expanded its store network, with new openings and adjustments in various regions, including the addition of the Jianzheng store in August 2021[63]. - The company conducted 12 major marketing events in 2021, contributing approximately 34% to total sales[27]. Governance and Compliance - The company held 3 shareholder meetings during the reporting period, ensuring fair voting procedures for all shareholders, especially minority shareholders[95]. - The board of directors consists of 9 members, including 3 independent directors, meeting legal requirements with independent operations[95]. - The supervisory board held 7 meetings, fulfilling its supervisory duties over financial and managerial compliance[96]. - The company has established a complete independent financial management system, with no interference from the controlling shareholder in financial decisions[99]. - The company has revised its governance documents to enhance operational standards, including the Articles of Association and meeting rules[98]. - The company has a dedicated investor relations program, facilitating communication through various channels to enhance investor understanding[96]. - The company has implemented strict insider information management to prevent insider trading[97]. - The company has completed a self-inspection of its governance practices, addressing deficiencies identified in previous years[98]. Legal and Risk Management - The company is involved in several commercial litigation cases that could have significant adverse effects on its operations[92]. - The company is facing macroeconomic risks that could impact consumer spending and overall market demand due to potential economic slowdowns[91]. - The company acknowledges industry competition risks, including the impact of online retail and changing consumer habits on physical retail performance[92]. - The company is committed to addressing asset impairment risks, particularly in stores affected by reduced foot traffic due to the pandemic[92]. - The company has reported a significant increase in user data, with a year-over-year growth of 25% in active users[109]. - The company has ongoing litigation with Nanning Biaote Real Estate Development Co., Ltd. regarding a housing sales contract, with the case still pending a decision[155]. - The company has filed a counterclaim against Nanning Biaote Real Estate Development Co., Ltd. in a related lawsuit[155]. - The company is appealing a first-instance judgment from Nanning Intermediate People's Court regarding a construction project dispute[156]. Future Outlook and Strategy - The company plans to accelerate its digitalization process, emphasizing member data management and integrated online-offline operations to improve operational efficiency[85]. - The company has set a strategic goal to become a competitive regional retail leader, focusing on brand strength and innovation in the retail sector[86]. - The company aims to achieve a revenue target of 60,000 million by the end of 2022, representing a 29.9% increase year-over-year[105]. - The company plans to invest in new product lines and technologies to drive future growth and innovation[105]. - Market expansion strategies include potential mergers and acquisitions to enhance competitive positioning[105]. - The management emphasized the importance of strategic partnerships to leverage market opportunities and enhance operational efficiency[105]. - The company is exploring new strategies to improve customer retention and satisfaction, aiming for a 17.59% increase in user loyalty metrics[105]. - Ongoing research and development efforts are expected to yield new products that align with market demands and consumer preferences[105]. Employee and Community Engagement - The company has implemented a cash dividend policy, stipulating that 10% of the distributable profits attributable to shareholders will be distributed as dividends annually[128]. - The company has conducted training programs focusing on enhancing management skills and improving the overall capabilities of employees[126]. - The company has actively engaged in poverty alleviation efforts, including financial support of CNY 160,000 to assist impoverished villages[145]. - The company has organized various employee welfare activities, including medical assistance and skill competitions, to enhance employee satisfaction[144]. - The company has implemented measures for wastewater management, ensuring all wastewater is collected and treated in accordance with municipal standards[137]. - The company has focused on environmental protection by using clean energy in its employee canteen and rental dining units[140]. - The company has developed a waste classification management system to promote resource management and reduce waste[140]. Shareholder Information - The total number of shares is 544,655,360, with 6,099,149 shares under limited sale conditions, accounting for 1.12% of total shares[168]. - The number of unrestricted circulating shares is 538,556,211, representing 98.88% of total shares[168]. - The largest shareholder, Nanning Futian Investment Co., Ltd., holds 102,687,831 shares, which is 18.85% of total shares[172]. - Nanning Peining Asset Management Co., Ltd. holds 99,491,492 shares, accounting for 18.27% of total shares[172]. - The total number of limited sale shares decreased by 184,320 shares during the reporting period[168]. - The number of shares held by the top ten unrestricted shareholders totals 244,000,000 shares[173]. - The company has seen a significant increase in the number of unrestricted shares by 184,320 during the reporting period[168]. - The report indicates that there are no new securities issued during the reporting period[170].