CBEST(SH:600729)2021-04-01 16:00Financial Performance - The net profit attributable to the parent company for 2020 was RMB 1,033,705,360.96, with undistributed profits amounting to RMB 5,893,846,215.99 as of December 31, 2020[7]. - The company's operating revenue for 2020 was CNY 21,077,417,554.89, a decrease of 38.97% compared to CNY 34,535,605,619.56 in 2019[25]. - The net profit attributable to shareholders for 2020 was CNY 1,033,705,360.96, representing a 4.91% increase from CNY 985,306,683.49 in 2019[25]. - The net cash flow from operating activities increased by 34.97% to CNY 1,181,738,938.71 in 2020, compared to CNY 875,585,745.39 in 2019[25]. - The total assets at the end of 2020 were CNY 16,808,452,803.36, a 10.96% increase from CNY 15,147,771,524.10 at the end of 2019[25]. - The basic earnings per share for 2020 was CNY 2.54, up 4.96% from CNY 2.42 in 2019[26]. - The weighted average return on equity decreased to 15.54% in 2020 from 16.68% in 2019, a reduction of 1.14 percentage points[26]. - Non-recurring gains and losses amounted to CNY 468,041,633.16 in 2020, significantly higher than CNY 96,547,530.83 in 2019[32]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 36.90 per 10 shares (including tax), resulting in an estimated total cash dividend of RMB 1,475,365,257.27 (including tax) after accounting for repurchased shares[7]. - The cash dividend payout ratio for the year was 146.88%, which includes a 4.16% dividend rate from shares repurchased in cash[7]. - The company has maintained continuous cash dividends for 24 years, with cumulative dividends amounting to CNY 2.24 billion since its listing[51]. - In 2020, the company distributed cash dividends amounting to approximately ¥1.48 billion, representing 142.72% of the net profit attributable to ordinary shareholders[137]. - The cash dividend per 10 shares in 2020 was ¥36.90, compared to ¥7.30 in 2019 and ¥6.50 in 2018, indicating a significant increase in shareholder returns[137]. Share Repurchase - As of March 31, 2021, the company had repurchased 6,700,482 shares, which will not participate in this profit distribution[7]. - The company has committed to continue its share repurchase program as per its outlined plan[7]. - The company repurchased a total of 1,520,139 shares, accounting for 0.3739% of the total share capital, with a total repurchase amount of CNY 42.99 million[51]. - The company repurchased shares in cash amounting to ¥42.99 million in 2020, which accounted for 4.16% of the total cash dividends[137]. Market Presence and Strategy - The company plans to continue expanding its market presence and invest in new product development to enhance competitiveness[37]. - The company has expanded its market presence beyond Chongqing, with 28 stores established in surrounding areas, enhancing its regional influence[44]. - The company is focusing on industry resource integration and financial service platform development to enhance its core competitiveness[44]. - The company aims to enhance operational capabilities through technology and multi-channel sales strategies, including live streaming and group buying[123]. - The company is expanding into new regions, requiring effective marketing strategies to build brand recognition and adapt to local consumer preferences[132]. Risks and Challenges - The company has outlined potential risks including macroeconomic risks, consumer trend risks, and market competition risks in its report[11]. - The company faces challenges from a complex external economic environment and changing consumer confidence due to the post-pandemic recovery[120]. - The company is exposed to macroeconomic risks that could impact consumer confidence and disposable income, affecting sales growth and gross margins[125]. - The company faces competition from both domestic and international retailers, which could pressure market share and profitability[127]. Legal Matters - The company is involved in multiple significant lawsuits, including a case against Chongqing Shanshi Automobile Trade Co., which involves a claim of 71.5 million RMB for reliability power supply fees[158]. - The company has a pending lawsuit regarding a contract dispute with Chengdu Tianyu Electric Appliance Co., with an outstanding payable amount of 142.55 million RMB[161]. - A former marketing manager was found guilty of embezzling 250.5 million RMB in prepaid card funds, which were used for online gambling[161]. - The company has faced various legal challenges over the years, with several cases resulting in financial liabilities and ongoing litigation[158]. - The company has been proactive in reporting legal issues to authorities, indicating a commitment to compliance and transparency[161]. Operational Adjustments - The company closed 9 stores in 2020 due to operational adjustments and continuous losses, with the largest store being 27,544 square meters[86]. - The company plans to close 16 stores in 2021 that are unprofitable or have expiring leases[87]. - The company has implemented a stock management policy to handle unsold and expired goods, aiming to reduce inventory loss risks and improve turnover speed[96]. Related Party Transactions - The company reported a total of 114,750.00 million CNY in related party transactions for 2020, with actual transactions amounting to 56,735.85 million CNY[192]. - The company’s management of related party transactions did not significantly impact its independence or financial results[192]. - The company has no actual controller, and its integrity status is reported as good during the reporting period[190].