SCSF(SH:600779)2021-04-28 16:00Financial Performance - The company reported a net profit of ¥731,325,826.89 for the year 2020, a decrease of 11.49% compared to ¥826,281,287.31 in 2019[15]. - Total revenue for 2020 was ¥3,005,712,643.18, down 15.06% from ¥3,538,694,869.46 in 2019[15]. - The basic earnings per share for 2020 was ¥1.4972, reflecting a decrease of 11.50% from ¥1.6917 in 2019[16]. - The net cash flow from operating activities for 2020 was ¥845,323,777.47, a slight decrease of 2.58% from ¥867,736,037.79 in 2019[15]. - Operating profit was ¥964,683,716.10, down 12.43% year-over-year[38]. - The company achieved operating revenue of ¥3,005,712,643.18, a decrease of 15.06% compared to 2019[38]. - The company reported a total revenue of CNY 5,836.39 million for the year, a year-on-year growth of 4.61%[55]. - The total profit for the year was CNY 1,585.41 million, representing a 13.35% increase year-on-year[55]. - The company reported a total of ¥1,495,266,037.79 in current liabilities for 2020, up from ¥908,571,997.33 in 2019, indicating a growth of approximately 64.5%[182]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of ¥12.0 per 10 shares, totaling approximately ¥586,035,357.60 based on the adjusted share count[4]. - In 2020, the company distributed cash dividends of 586,035,357.60 RMB, which accounted for 80.13% of the net profit attributable to ordinary shareholders[80]. - The cash dividend per 10 shares was 12.00 RMB in 2020, down from 14.50 RMB in 2019[80]. - The company did not propose a cash profit distribution plan despite having positive distributable profits for ordinary shareholders[80]. Assets and Liabilities - The total assets of the company increased by 10.66% to ¥4,366,764,633.84 at the end of 2020, compared to ¥3,945,981,465.69 at the end of 2019[15]. - Total liabilities increased to ¥2,230,778,263.74 in 2020, up from ¥1,833,987,931.86 in 2019, representing a growth of approximately 21.6%[179]. - Cash and cash equivalents at the end of the period were ¥1,329,979,925.76, representing 30.46% of total assets[50]. - Inventory increased by 23.64% to ¥1,879,399,298.64, accounting for 43.04% of total assets[50]. - Accounts payable rose by 46.35% to CNY 481,554,266.27, attributed to increased procurement of raw materials[51]. Operational Efficiency and Strategy - The company is focusing on high-quality production processes, utilizing traditional fermentation methods and strict quality control measures[23]. - The new sales model allows the company to manage sales front-end while partners handle logistics and order processing, enhancing operational efficiency[24]. - The company is investing in digital transformation to enhance customer and consumer management systems, adapting to changing market dynamics[25]. - The company focused on expanding its distribution network and optimizing product structure, leading to improved market competitiveness[35]. - E-commerce channels were expanded, with a focus on enhancing platform operations and member engagement[35]. Market Trends and Consumer Behavior - The white liquor industry is experiencing a shift towards high-quality growth, with increased consumer demand for premium products amid the pandemic[25]. - The company experienced a significant impact on sales due to the COVID-19 pandemic, leading to a double-digit decline in overall performance for the year[32]. - In the second half of the year, the company saw a recovery with revenue and profit achieving double-digit growth year-on-year[32]. - The company aims to enhance its market position by focusing on high-end products and improving customer experience[73]. Environmental and Social Responsibility - The company is committed to environmental protection and has maintained compliance with pollution discharge standards, with no incidents of environmental violations[34]. - The company has implemented a high-pressure pulse electrostatic bag dust removal system to manage dust emissions in the grain crushing workshop[108]. - The company has invested RMB 82.51 million in poverty alleviation efforts, helping 9 registered impoverished individuals to escape poverty[99]. - The company donated RMB 9 million to support epidemic prevention efforts in Wuhan[103]. Governance and Compliance - The company has established a long-term mechanism to prevent the controlling shareholder from occupying company funds and harming the interests of the listed company[151]. - The company emphasizes social responsibility and maintains communication with stakeholders, including banks, creditors, employees, consumers, suppliers, and communities[154]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate disclosure of significant events[154]. - The company has engaged PwC as its domestic accounting firm, with an audit fee of 1.15 million RMB for the year[84]. Future Outlook and Growth Plans - The company aims for a 43% increase in main business revenue and a 35% increase in net profit for 2021, excluding potential impacts from the ongoing negotiations regarding the sauce liquor project[76]. - The company plans to optimize its sales visit coverage standards and enhance its business team efficiency to accelerate growth in core markets[76]. - The company is exploring potential mergers and acquisitions to strengthen its market position[135]. - The company plans to enhance its digital marketing efforts, allocating 50 million RMB to increase brand awareness and customer engagement[137].