LSGC(SH:600738)2022-04-06 16:00Financial Performance - The company achieved a net profit attributable to the parent company of ¥154,818,674.73 in 2021, with an undistributed profit at the beginning of the year of ¥444,003,974.97[6] - The company plans to allocate a total distributable profit of ¥584,830,153.92 as of December 31, 2021, with no cash dividends or stock bonuses proposed for the year[6] - The company has reported a statutory surplus reserve of ¥13,992,495.78 for the year[6] - The company achieved operating revenue of CNY 642.67 million in 2021, representing a year-on-year growth of 7.23%[20] - The net profit attributable to shareholders was CNY 154.82 million, a significant increase of 78.65% compared to 2020[20] - The basic earnings per share rose to CNY 0.206, reflecting an increase of 83.93% year-on-year[21] - The net profit after deducting non-recurring gains was CNY 157.29 million, marking a 76.14% increase from the previous year[20] - The company reported a weighted average return on equity of 8.79%, an increase of 3.51 percentage points compared to 2020[21] Cash Flow and Assets - The net cash flow from operating activities reached CNY 192.10 million, a substantial recovery from a negative cash flow in 2020[20] - The company's total assets at the end of 2021 were CNY 3.51 billion, up 5.06% from the previous year[20] - The cash flow from operating activities showed a significant improvement, with a net cash flow of 192.10 million RMB compared to a negative cash flow in the previous year[48] - The total cash and cash equivalents at the end of the period was CNY 129.1 million, down 77.48% from the beginning balance[57] - The company’s cash and cash equivalents decreased to ¥147,200,671.64 in 2021 from ¥597,822,737.75 in 2020, a decline of approximately 75.3%[197] Market and Business Strategy - The company plans to continue its strategic transformation towards new retail and consumption sectors while maintaining its traditional business[30] - The company is focusing on new retail and new consumption strategies, particularly in the women's consumption market and the new domestic goods sector[36] - The company is actively exploring digital transformation opportunities in response to changing consumer habits accelerated by the COVID-19 pandemic[42] - The company is focusing on expanding its new retail business and enhancing its core competitiveness in professional market management and retail sectors[44] - The company plans to leverage its location advantage in Hangzhou to integrate online and offline operations and expand its new retail supply chain[44] Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements and future plans[7] - The company has detailed potential risks in the management discussion and analysis section of the report[8] - The company faces market operational risks due to competition from large shopping malls, supermarkets, and e-commerce platforms, which may impact consumer purchasing behavior[79] - The ongoing pandemic poses external uncertainties that could affect global market trade, with the potential for prolonged and fluctuating conditions[79] Governance and Management - The company has provided a standard unqualified audit report from Tianjian Accounting Firm[5] - The company has established a comprehensive internal control system to ensure compliance and safeguard assets, with no significant deficiencies reported during the period[125][126] - The company has implemented a competitive compensation policy linked to individual performance and overall economic indicators, with adjustments based on GDP growth and CPI[116] - The company has a structured approach to executive compensation, linking it to overall business performance and individual contributions[98] - The company has undergone significant management changes, with multiple key personnel resigning and new appointments made[100] Shareholder Information - The total number of shares held by the chairman and directors remained unchanged at 41,719,937 shares, with no increase or decrease during the reporting period[88] - The total number of shares increased from 773,464,476 to 772,795,436, with a net change of +32,327,763 shares, representing an increase of 4.18%[159] - The number of shareholders increased from 23,642 to 25,269, indicating a growth of approximately 6.9% in the shareholder base[164] - The top shareholder, Honglou Group Co., Ltd., holds 280,694,808 shares, representing 36.29% of total shares, with 199,350,000 shares pledged[166] External Investments and Assets - The company has invested a total of 10,038.7 million CNY in new business ventures through its subsidiary, focusing on supply chain systems, retail channels, and skincare products[66] - The company’s external investments amounted to CNY 249.71 million, accounting for 7.11% of total assets[185] - The book value of investment properties and fixed assets was CNY 1,124.76 million, representing 69.46% of total assets[186] Social Responsibility and Community Engagement - The company provided rental fee discounts totaling 2.4142 million yuan to support small merchants during the pandemic, stabilizing their operations[133] - In December 2021, the company raised 12,945 yuan through a charity event, promoting social responsibility and community support[134] - The company has committed to reducing carbon emissions by gradually phasing out high-energy-consuming equipment and enhancing energy management[131]