Youhao Group(SH:600778)2021-04-20 16:00Financial Performance - The company reported a net profit of -291,868,623.85 RMB for the year 2020, resulting in an undistributed profit of -205,931,951.87 RMB[4]. - Total revenue for 2020 was 1,955,299,994.41 RMB, a decrease of 62.68% compared to 5,238,605,729.82 RMB in 2019[20]. - The net profit attributable to shareholders was -287,058,894.33 RMB, a decline of 347.59% from 115,940,779.47 RMB in the previous year[20]. - The basic earnings per share for 2020 was -0.9216 RMB, compared to 0.3722 RMB in 2019, reflecting a decrease of 347.61%[21]. - The weighted average return on equity dropped to -37.27% in 2020 from 13.60% in 2019, a decrease of 50.87 percentage points[21]. - The company generated a net cash flow from operating activities of 215,488,926.96 RMB, down 36.30% from 338,266,617.36 RMB in 2019[20]. - The net assets attributable to shareholders decreased by 31.24% to 628,369,736.45 RMB from 913,813,806.62 RMB in 2019[20]. - The company reported a significant asset impairment provision of CNY 31,166,650 due to comprehensive asset testing[36]. - The company reported a significant impairment loss of 314.83 million yuan for long-term prepaid expenses, which accounted for 9.08% of total assets as of December 31, 2020[183]. - The company reported a net loss of CNY 205,931,951.87 in 2020 compared to a profit of CNY 85,936,671.98 in 2019[195]. Revenue and Sales - The company achieved operating revenue of CNY 1,955,299,994.41, a decrease of 62.68% compared to the previous year[35]. - The company reported a revenue of 1,955.30 million yuan for 2020, a decrease of 62.68% year-on-year[91]. - The company reported a significant decrease in joint sales with TianKang Food, with 2020 revenue recorded at 2,261,300 RMB, down from 25,782,000 RMB under the previous accounting standards[116]. - The company reported a total expense of 546,784,425.23 CNY in 2020, a decrease of 19.70% compared to 680,895,700.08 CNY in 2019, with significant reductions in rent (-25.14%), advertising (-34.44%), and labor costs (-14.10%)[77]. Market Conditions - In 2020, the retail sales in Xinjiang decreased by 15.3%, while the national retail sales fell by 3.9%, highlighting the challenging market conditions[28]. - The retail sector faced significant challenges due to the COVID-19 pandemic, with department stores and shopping centers experiencing notable declines in performance[29]. - Online retail sales in Xinjiang grew by 27.6% in 2020, with local consumers contributing ¥1,032.5 billion, accounting for 33.7% of the total retail sales in the region[29]. Operational Adjustments - The company aims to adapt its business strategies to the changing consumer behaviors and market conditions, focusing on online and offline integration[29]. - The company introduced approximately 7,000 new products, including ready-to-eat, health, and kitchen supplies, to boost sales post-pandemic[34]. - The company implemented a digital membership program through the "Youhao Easy Purchase" mini-program, enhancing customer engagement[34]. - The company has implemented inventory management policies to mitigate risks associated with unsold goods and ensure timely supply of products[72]. Financial Position - The company's total assets decreased by 12.15% to 4,335,347,242.39 RMB from 4,934,811,323.50 RMB in 2019[20]. - The company's total equity decreased from CNY 927,714,165.26 in 2019 to CNY 642,961,318.14 in 2020, a drop of approximately 30.7%[192]. - The company's asset-liability ratio stands at 85.17%, indicating significant financial risk if further bank loans are utilized[95]. - The company's long-term equity investments decreased to RMB 367,666,805.80 from RMB 379,527,198.46, a decline of about 3.1%[191]. Legal Matters - The company faced a lawsuit from Xinjiang Taimei Commercial Management Co., claiming a breach of a lease contract, with a compensation request of RMB 300 million[104]. - The court ruled that the lease contract with Taimei Company was terminated as of December 31, 2018, and ordered the company to hand over a commercial space of 40,988.51 square meters[104]. - The company was also involved in a separate lawsuit with Xinjiang Shangpin Commercial Management Co., which demanded RMB 80 million in compensation for breach of contract[108]. Management and Governance - The company has engaged Da Hua Accounting Firm for financial auditing with a remuneration of 750,000 RMB for the year 2020[102]. - The company has maintained a stable management structure with no significant changes in personnel during the reporting period[150]. - The total compensation for the board members and senior management during the reporting period amounted to 799.71 million CNY[150]. - The company emphasizes the importance of governance and compliance in its management structure and personnel changes[160]. Future Outlook - The company anticipates a recovery in the consumer market in 2021, driven by the resilience of domestic demand, despite ongoing uncertainties related to the pandemic and external environment[86]. - The company plans to focus on strengthening its market position in cosmetics and women's clothing while expanding into sports and high-end home products in 2021[92]. - The company is considering strategic acquisitions to enhance its market position, with a budget of 2 billion yuan earmarked for potential deals[152].