Liqun Co.,Ltd.(SH:601366)2021-04-26 16:00Financial Performance - The company reported a net profit attributable to ordinary shareholders of RMB 142,881,070.41 for the year 2020, with a cash dividend amounting to 111.93% of the net profit[6]. - The company's operating revenue for 2020 was ¥8,389,187,376.38, a decrease of 32.57% compared to ¥12,441,176,211.25 in 2019[22]. - Net profit attributable to shareholders decreased by 46.54% to ¥142,881,070.41 from ¥267,290,104.06 in the previous year[22]. - Basic earnings per share fell to ¥0.18, down 41.94% from ¥0.31 in 2019[23]. - The company reported a significant decline in net profit due to the impact of COVID-19, with a rental concession of approximately ¥77.91 million provided to small leasing businesses[24]. - Total assets increased by 8.84% to ¥13,099,168,152.26 at the end of 2020, compared to ¥12,035,138,056.00 at the end of 2019[22]. - The weighted average return on equity decreased to 3.11%, down 2.66 percentage points from 5.77% in 2019[23]. - The company experienced a net cash flow from operating activities of ¥573,574,108.07, an increase of 78.02% compared to ¥322,205,449.72 in 2019[22]. - The company reported a total expected daily related transactions amounting to no more than 666 million yuan for 2020[150]. - The company paid a total of CNY 1.5 billion in corporate income tax during the reporting period, reflecting strong economic performance[170]. Shareholder Returns and Dividends - The company has implemented a cash dividend policy, with a cash dividend amount of RMB 159,930,297.56 in 2020, representing 111.93% of the net profit attributable to shareholders[135]. - In 2019, the company distributed a cash dividend of RMB 129,075,069.00, which accounted for 48.29% of the net profit attributable to shareholders[133]. - The company did not propose a cash profit distribution plan for 2020 due to a significant decline in net profit year-on-year, primarily caused by the pandemic[136]. - The company has established a three-year shareholder return plan from 2019 to 2021, considering profitability and shareholder expectations[131]. - The company has not distributed dividends in 2020, maintaining a focus on reinvestment and strategic growth initiatives[133]. Business Operations and Strategy - The company maintains a comprehensive business model focusing on retail, logistics, and brand agency, aiming for a fully integrated supply chain[33]. - The retail chain segment operates 89 large retail stores and 81 convenience and fresh community stores, totaling over 2 million square meters of operational area[34]. - The logistics and wholesale segment has established a supply chain with nearly 30 brand agencies and a total warehouse area of 400,000 square meters, with an additional 300,000 square meters under construction[35]. - The company’s main revenue model is the distribution model, accounting for 94.92% of total revenue in 2020, with a gross profit margin of 16.29%[39]. - The company is actively expanding its market presence with various retail formats across multiple regions, including Shandong and Jiangsu[83]. - The company plans to accelerate store openings and expand its market presence across multiple provinces, aiming to become a nationally influential commercial brand[108]. - The company aims to enhance its supply chain capabilities by increasing the proportion of self-operated products and expanding logistics center construction[109]. - The company intends to leverage technology to improve customer experience and optimize product offerings through innovative marketing strategies[107]. - The company will continue to explore mergers and acquisitions to support its strategic expansion and enhance its competitive position in the market[108]. Logistics and Supply Chain - The company has a logistics center with a storage area of 400,000 square meters, enhancing its supply chain capabilities for various product categories[48]. - The company’s logistics capabilities were bolstered by the introduction of advanced automated equipment, improving supply chain efficiency[49]. - The company has invested in a cold chain logistics system to ensure the delivery of perishable goods, enhancing supply chain reliability[96]. - The company’s logistics centers are capable of handling a variety of products, including fresh produce, food and beverages, and household appliances, supporting diverse retail operations[95]. - The company’s logistics capacity was significantly improved, with total warehouse space reaching 400,000 square meters, and two major logistics bases in Jiaozhou and Huai'an operational by the end of 2020[64]. Market Trends and Consumer Behavior - The company emphasizes the importance of integrating online and offline retail channels to adapt to changing consumer behaviors post-COVID-19[107]. - The online retail sales of physical goods in China reached 975.9 billion yuan in 2020, growing by 14.8% year-on-year[41]. - The company’s e-commerce membership surged to nearly 1 million in 2020, following strategic adjustments and enhancements to its online shopping platform[66]. - The company reported a total of 90,503.00 in revenue from the Jinding Plaza in Qingdao, which is a leased property[87]. - The company has established a new store in Shanghai, generating 25,707.86 in revenue from the Putuo District[87]. Financial Management and Investments - The company successfully issued 1.8 billion yuan in convertible bonds, providing significant financial support for its strategic development[59]. - The company has a stable operational cash flow to ensure the payment of interest and repayment of the convertible bonds in future years[183]. - The company has confirmed that there are no significant changes in related party transactions during the reporting period[152]. - The company has entrusted cash asset management with a total amount of 1.12 billion yuan, with no overdue amounts[158]. - The company has implemented strict inventory management practices to enhance inventory turnover efficiency and asset operation capabilities[99]. Corporate Governance and Compliance - The company’s financial report has been audited by Xinyong Zhonghe Accounting Firm, which issued a standard unqualified opinion[4]. - The company’s board of directors and senior management have confirmed the authenticity, accuracy, and completeness of the annual report[7]. - The company has not faced any situations where more than half of the directors could not guarantee the authenticity of the disclosed annual report[9]. - The company has not violated any decision-making procedures regarding external guarantees[9]. - The company has not faced any risks of suspension or termination of its listing[149]. Social Responsibility and Community Engagement - The company actively participated in social responsibility initiatives, including the procurement of 140 tons of fruits and vegetables from impoverished areas, contributing CNY 820,000 to support local farmers[68]. - The company donated CNY 750,000 worth of pandemic prevention materials to the local education system and healthcare workers[173]. - In 2020, the company helped sell over 200 tons of unsold fruits and vegetables, contributing to national poverty alleviation efforts[163]. - The company completed vegetable reserves for the city, including 2,000 tons for pandemic response and 2,100 tons for winter reserves[172]. Challenges and Risks - The company anticipates challenges from macroeconomic fluctuations and the ongoing impact of the pandemic on retail demand, particularly in sectors like department stores and home appliances[123]. - The company has faced challenges in cross-regional operations due to varying consumer preferences and income levels across different areas[127]. - As the company expands its operations, it faces increased management complexity, necessitating more refined management practices across various functions[125].