Liqun Co.,Ltd.(SH:601366)2022-04-27 16:00Financial Performance - The company reported a total distributable profit of RMB 1,670,502,114.82 as of December 31, 2021, with a proposed cash dividend of RMB 1.5 per 10 shares, amounting to a total distribution of RMB 129,079,062[6]. - The cash dividend payout ratio for the year was 160.92%, with remaining undistributed profits of RMB 1,541,423,052.82 to be carried forward to future distributions[6]. - The company's operating revenue for 2021 was approximately ¥8.08 billion, a decrease of 3.64% compared to ¥8.39 billion in 2020[24]. - The net profit attributable to shareholders was approximately ¥80.21 million, down 43.86% from ¥142.88 million in 2020[24]. - The basic earnings per share decreased by 38.89% to ¥0.11 from ¥0.18 in 2020[26]. - The total assets increased by 29.40% to approximately ¥16.95 billion from ¥13.10 billion in 2020[25]. - The company achieved a total foreign trade export of 81 million USD (approximately 510 million RMB) in 2021, while also launching cross-border e-commerce initiatives[63]. - The company reported a total revenue of RMB 1.5 billion for the fiscal year 2021, reflecting a year-over-year increase of 10%[190]. Operational Challenges - The company faced various risk factors, which are detailed in the management discussion and analysis section of the report[10]. - The company closed 9 underperforming stores, incurring a one-time cost of over ¥19 million, significantly impacting 2021's performance[27]. - New store openings in 2021, such as in Jiaozhou and Xihai, are still in the market cultivation phase, reducing profits by over ¥40 million[27]. - The company faced increased operational costs due to new logistics facilities, impacting profits by approximately ¥1.95 million[27]. - The implementation of new leasing standards resulted in a significant increase in rental costs, adding over ¥2.7 million to expenses[27]. - The overall retail market faced significant challenges, with a 12.5% increase in national retail sales, but only a 3.9% average growth over two years[39]. - The retail sector is expected to face challenges from rising raw material prices and inflation, which the company plans to navigate through refined management strategies[107]. - The COVID-19 pandemic has significantly impacted the global economy, leading to a lack of recovery momentum and increased operational pressure on retail businesses due to demand contraction and rising raw material costs[110]. Governance and Compliance - The company has maintained a consistent governance structure, with all board members present at the board meeting[4]. - The company has established a comprehensive internal control governance mechanism, ensuring effective decision-making and compliance with legal regulations[116]. - The company has not experienced any incidents of major shareholders occupying company funds or assets, maintaining operational independence[116]. - The company is focused on enhancing its governance structure and ensuring equal treatment of all shareholders, particularly minority shareholders[116]. - The company has confirmed that it will adhere to the commitments made regarding profit compensation measures[188]. - The company has not reported any major violations or penalties against its directors, supervisors, or senior management during the reporting period[195]. Strategic Initiatives - The company is focusing on supply chain integration and expanding its production and processing capabilities in the fresh food sector[42]. - The company has established over 300 fresh food procurement bases across more than 20 provinces, with direct procurement accounting for over 90%[49]. - The company is committed to improving transparency in information disclosure and ensuring compliance with regulations to protect shareholder interests[108]. - The company plans to accelerate the opening of retail stores and enhance supply chain integration, aiming to improve market share and operational efficiency in 2022[108]. - The company aims to strengthen its self-owned brand development and optimize product structure to meet diverse consumer demands, which is crucial for sustained growth[105]. - The company is exploring potential acquisitions to strengthen its market position, with a budget of 300 million RMB allocated for this purpose[123]. Employee and Management - The total number of shares held by directors and senior management increased from 44,764,056 at the beginning of the year to 49,314,056 by the end of the year, representing an increase of 4,550,000 shares[121]. - The total remuneration for directors and senior management amounted to 7.79 million yuan, with individual compensations ranging from 24.48 thousand yuan to 130.53 thousand yuan[121]. - The company has established a performance evaluation system for employees, linking compensation to sales performance and service quality[141]. - The company has a salary increase policy based on economic performance, with annual increments typically ranging from 10% to 20%[141]. - The training plan emphasizes a combination of basic and targeted training, focusing on enhancing employee capabilities and operational efficiency[142]. Financial Management - The company has implemented strict financial management and supervision for its subsidiaries[160]. - The company paid a total of CNY 399 million in taxes during the reporting period[172]. - The company has established a cash dividend policy to ensure transparency and protect the rights of minority investors, which was approved in 2013[148]. - The company has a stock incentive plan that aims to grant 26,480,342 restricted shares to 96 incentive targets[153]. - The audit fee for the domestic accounting firm is set at RMB 1.5 million for the fiscal year 2021[193]. Market Expansion - The company is actively pursuing market expansion strategies and optimizing its operational strategies to adapt to the changing retail landscape[112]. - The company has expanded its brand agency to nearly 800 brands, with over 9,000 clients in its external sales business, and some subsidiaries have an external sales ratio exceeding 50%[62]. - The company is focusing on enhancing its online platform and utilizing new media for customer engagement, which is expected to boost online sales and competitiveness[108]. - The company has a diverse portfolio across multiple cities in Shandong province, including Qingdao, Yantai, and Rizhao, enhancing its market presence[85].