XHCG(SH:600785)2021-03-17 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥5.69 billion, a decrease of 25.74% compared to ¥7.67 billion in 2019[18]. - The net profit attributable to shareholders for 2020 was approximately ¥43.29 million, down 76.23% from ¥182.11 million in 2019[18]. - The basic earnings per share for 2020 was ¥0.19, a decline of 76.54% compared to ¥0.81 in 2019[19]. - The company reported a net asset attributable to shareholders of approximately ¥2.37 billion at the end of 2020, a slight decrease of 0.08% from ¥2.37 billion at the end of 2019[18]. - The company experienced a significant drop in net profit after deducting non-recurring gains and losses, which was approximately ¥2.18 million in 2020, down 98.50% from ¥145.34 million in 2019[18]. - The company reported a net profit attributable to ordinary shareholders of RMB 43,286,223.25, with a cash dividend payout ratio of 0%[77]. - The net profit for 2020 was a loss of approximately ¥21.07 million, compared to a profit of ¥23.09 million in 2019, indicating a significant decline[174]. - The total comprehensive income for the year was CNY -21,065,645.75, indicating a significant loss in overall profitability[199]. Assets and Liabilities - The total assets at the end of 2020 were approximately ¥6.23 billion, an increase of 2.73% from ¥6.06 billion at the end of 2019[18]. - Total assets increased to CNY 6,227,604,654.48 in 2020 from CNY 6,062,149,319.04 in 2019, representing a growth of approximately 2.73%[163]. - Total liabilities increased to CNY 4,003,614,531.15 in 2020 from CNY 3,814,199,738.07 in 2019, marking a rise of about 4.95%[164]. - The company's total equity decreased to CNY 2,223,990,123.33 in 2020 from CNY 2,247,949,580.97 in 2019, representing a decline of approximately 1.07%[164]. - The company's total equity attributable to shareholders at the end of 2020 was ¥2,247,949,580.97, a decrease from ¥2,370,421,822.94 at the end of 2019[184]. Cash Flow - The net cash flow from operating activities for 2020 was approximately ¥413.03 million, an increase of 135.13% compared to ¥175.66 million in 2019[18]. - The cash flow from investing activities resulted in a net outflow of approximately ¥347.03 million in 2020, compared to a net outflow of ¥611.75 million in 2019[178]. - The cash flow from financing activities showed a net outflow of approximately ¥44.58 million in 2020, a decrease from a net inflow of ¥578.17 million in 2019[178]. - The total cash and cash equivalents at the end of 2020 amounted to approximately ¥673.56 million, up from ¥652.14 million at the end of 2019[178]. Operational Strategy - The company plans not to distribute profits or increase capital reserves for the year[4]. - The company plans to continue expanding its retail network beyond Ningxia into neighboring provinces such as Shaanxi, Gansu, Inner Mongolia, and Qinghai[28]. - The company is adapting its business model to include more online operations in response to the pandemic, which has accelerated the shift towards digital retailing[30]. - The company aims to enhance its market competitiveness by strengthening its supply chain and optimizing product offerings, ensuring value for consumers[72]. - The company is committed to innovation in product offerings and technology development to enhance market competitiveness[65]. Market Conditions - The overall market competition remains intense, with significant pressure from major retail players in the region[32]. - The total retail sales of consumer goods in the Ningxia region for the year were CNY 1,301.4 billion, with a decline of 7.0% compared to the previous year[32]. - The urban retail sales amounted to CNY 1,123.8 billion, down 7.1%, while rural retail sales were CNY 177.6 billion, down 6.7%[32]. Employee and Management - The company employed a total of 9,380 staff, with 1,220 in the parent company and 8,160 in major subsidiaries[130]. - The company maintained full salary payments for all employees during the one and a half months of closure due to the pandemic, despite significant cost pressures[131]. - The total pre-tax compensation for the chairman, Qu Kui, was 80.98 million yuan, while the vice chairman, Liang Qing, received 89.48 million yuan[123]. Governance and Compliance - The company has established a comprehensive internal control system to ensure compliance with corporate governance standards[135]. - The internal control audit report issued by the accounting firm provided a standard unqualified opinion, indicating no significant deficiencies in internal controls[142]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate information is available to all shareholders[137]. Risks and Challenges - The company faces risks from intensified competition in the retail market and potential impacts from economic slowdowns on consumer spending[73]. - The company has not reported any significant risks or non-operational fund occupation by controlling shareholders[5].