BURTC(600861)2022-03-18 16:00Financial Performance - The company reported a net profit attributable to shareholders of -63,549,240.69 CNY for 2021, indicating a 14.58% improvement compared to -74,399,534.70 CNY in 2020[4]. - Total operating revenue for 2021 was 697,275,074.77 CNY, a decrease of 0.96% from 704,015,239.15 CNY in 2020[17]. - The net cash flow from operating activities increased by 120.17% to 95,743,470.78 CNY in 2021, compared to 43,485,517.94 CNY in 2020[17]. - The company's total assets decreased by 7.86% to 2,990,302,300.94 CNY at the end of 2021, down from 3,245,539,920.43 CNY at the end of 2020[17]. - The net assets attributable to shareholders decreased by 2.76% to 2,198,197,539.90 CNY at the end of 2021, compared to 2,260,618,704.58 CNY at the end of 2020[17]. - Basic earnings per share for 2021 were -0.2006 CNY, an improvement of 14.57% from -0.2348 CNY in 2020[18]. - The weighted average return on equity was -2.85% for 2021, an increase of 0.38 percentage points from -3.23% in 2020[18]. - The company plans not to distribute profits or increase capital reserves due to the negative net profit for 2021[4]. Revenue and Sales - The company’s revenue from core business activities, after excluding non-core income, was 619,804,931.91 CNY, down 1.39% from 628,510,698.41 CNY in 2020[17]. - In 2021, the company's total revenue for the first quarter was approximately CNY 193.92 million, while the fourth quarter revenue was CNY 170.63 million, showing a decline in revenue over the year[21]. - The retail sales of consumer goods in China reached 440,823 million yuan in 2021, growing by 12.5% year-on-year[35]. - The online retail sales of physical goods amounted to 108,042 million yuan, with a year-on-year growth of 12.0%[35]. - The retail sales of physical goods in brick-and-mortar stores grew by 12.7% year-on-year, reaching 332,781 million yuan[35]. - The community supermarket segment generated 57,992,092.12 CNY in revenue, with a gross profit margin of 14.65%, reflecting a year-on-year revenue increase of 3.36%[77]. - The shopping center segment achieved a revenue of 52,111,132.46 CNY, with a gross profit margin of 62.21%, marking a year-on-year revenue increase of 14.89%[77]. Operational Challenges - The net profit attributable to shareholders for the entire year was negative, with Q4 reporting a loss of CNY 31.44 million, compared to a loss of CNY 6.75 million in Q1[21]. - The net cash flow from operating activities was CNY 36.94 million in Q1, but dropped significantly to CNY 4.98 million in Q4, indicating cash flow challenges[21]. - The tourism service revenue dropped by 47.66% to ¥27,860,262.80, reflecting the ongoing impact of the pandemic[52]. - Management expenses rose by 18.12% to ¥228,197,500.48, attributed to increased labor costs and the implementation of new accounting standards[59]. - The company has identified potential risks in its future development, which are detailed in the management discussion and analysis section of the report[4]. Market Trends and Strategies - The company plans to enhance its market expansion strategies in line with the trends of consumption upgrading and the development of international consumption centers[31]. - The company aims to leverage the growing domestic consumption market, which is expected to continue expanding in the coming years[31]. - The company is focused on digital transformation, which may lead to new cost increases due to hardware upgrades and technology applications[105]. - The company plans to enhance its "store-network integration" strategy to improve core competitiveness and reduce competition risks[102]. - The company will explore new business models for tourism development under normalized pandemic prevention measures[102]. Governance and Management - The total pre-tax remuneration for the board members and senior management during the reporting period amounted to CNY 5.3993 million[118]. - The company’s management team includes individuals with extensive experience in various sectors, including finance and management[122]. - The company’s board of directors has undergone changes, with the resignation of the general manager, Wu Wenxue, on March 2, 2022[125]. - The company has a diverse management team with backgrounds in both public and private sectors[122]. - The company’s board of directors has been actively involved in various strategic decisions, including financial product investments and credit applications[134]. Social Responsibility and Sustainability - The company has engaged in social responsibility initiatives, including volunteer services for the elderly and disabled, enhancing its corporate image[167]. - The company has adopted new energy-saving and environmentally friendly technologies to improve energy efficiency and promote resource conservation[167]. - The company established the "京蒙爱心扶贫馆" in November 2020 to support sales of poverty alleviation agricultural products from the Tongliao City, Inner Mongolia, enhancing market access for fresh beef and other products[168]. - The company is committed to providing ongoing support for the 京蒙爱心扶贫馆, including reduced rent and waived utility fees, to facilitate its development and contribute to poverty alleviation efforts in Inner Mongolia[168].