LSGC(SH:600738)2021-03-30 16:00Financial Performance - In 2020, the company's operating revenue was CNY 599,328,578.47, a decrease of 68.16% compared to CNY 1,882,506,936.99 in 2019[19]. - The net profit attributable to shareholders for 2020 was CNY 86,661,524.18, down 64.81% from CNY 246,235,016.29 in 2019[19]. - The net cash flow from operating activities was negative CNY 109,593,465.93, compared to negative CNY 49,098,689.98 in 2019[19]. - The total assets at the end of 2020 were CNY 3,345,214,270.34, a decrease of 10.06% from CNY 3,719,286,272.75 at the end of 2019[19]. - Basic earnings per share for 2020 were CNY 0.112, down 64.89% from CNY 0.319 in 2019[20]. - The weighted average return on equity decreased by 6.23 percentage points to 5.28% in 2020 from 11.51% in 2019[20]. - The company reported a significant decline in both revenue and profit, indicating challenges in its operational environment[19]. - The company faced significant operational challenges due to COVID-19, with retail, hotel, and professional market operations suspended for over a month[38]. - The company reported a revenue of 599.33 million yuan, a decrease of 68.16% compared to 1,882.51 million yuan in the same period last year[37]. - The company reported a net profit of ¥39.24 million from Nanjing Huanbei Company, indicating a positive performance in market operations[69]. Operational Challenges - The company has acknowledged the risks associated with its future plans and strategies, urging investors to be cautious[5]. - The restaurant and hotel business experienced a significant decline, with self-operated revenue dropping to 11.72 million RMB in 2020 from 35.60 million RMB in 2019, reflecting a decrease of approximately 67.06%[31]. - The gross margin for the restaurant and hotel business was -3.72%, significantly impacted by reduced occupancy rates and temporary closures[48]. - The company implemented an online-offline integration strategy, launching an online mall and WeChat shopping to alleviate retail pressure[39]. - The company extended lease terms or reduced rents for merchants in its professional markets during the pandemic to stabilize operations[41]. - The ongoing COVID-19 pandemic has significantly impacted the retail sector, posing risks related to employee and consumer safety, as well as reduced customer traffic and orders[79]. Strategic Initiatives - The company plans to adapt to new consumer demands in the restaurant sector by enhancing product and service offerings, aiming for a recovery in the post-pandemic environment[28]. - The company’s professional market management operations are focused on core business districts in Hangzhou and Nanjing, emphasizing a "rent-only" model to enhance service offerings to merchants[30]. - The company plans to leverage its resources to invest in and cultivate new retail projects, enhancing competitiveness and improving asset operation efficiency[74]. - The company aims to implement a "cloud warehouse" management model to enhance inventory management and distribution efficiency for market vendors[75]. - The company plans to enhance customer engagement through loyalty programs, targeting a 15% increase in repeat purchases[130]. Financial Management - The company reported a net cash flow from operating activities of -¥109,593,465.93, reflecting a significant decline in sales and rental income[53]. - The total cash outflow from financing activities decreased by 83.85% to ¥352,094,477.23 from ¥2,180,247,690.66, mainly due to a decrease in dividend distribution and share repurchase[55]. - The company's cash and cash equivalents decreased by 28.62% to ¥597,822,737.75, down from ¥837,518,708.28, due to reduced operating income and repayment of short-term bank loans[57]. - The company reported a total of CNY 250,474,441.14 in other receivables for 2020, consistent with CNY 250,479,845.91 in 2019[172]. - The company incurred a cash outflow of 300,000,000.00 RMB for debt repayment, highlighting ongoing financial obligations[183]. Shareholder and Governance - The company plans not to distribute profits for the year 2020, considering its current operational status and industry characteristics[4]. - The company has committed to ensuring that related party transactions adhere to principles of equivalence, compensation, and fairness, and will not harm the legitimate rights of shareholders[85]. - The company has engaged Tianjian Accounting Firm (Special General Partnership) with a remuneration of RMB 950,000[89]. - The company has a commitment to prioritize the transfer of business opportunities that may constitute competition to its controlling subsidiary[85]. - The company has not reported any significant accounting policy changes or errors during the reporting period[87]. Market Position and Future Outlook - The company is focusing on upgrading its markets in Hangzhou and Nanjing to align with its "new property" development strategy, including hardware upgrades and data management platform establishment[75]. - The company is expected to continue evaluating its operational capabilities and may consider strategic adjustments in response to the financial challenges faced in 2020[163]. - The management team emphasized the importance of digital transformation, aiming to increase online sales by 30% in the upcoming year[130]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the retail sector[130]. - Future guidance indicates a focus on increasing operational efficiency and profitability[127].