YONGHUI SUPERSTORES(SH:601933)2022-04-29 16:00Financial Performance - The total operating revenue for 2021 was approximately RMB 91.06 billion, a decrease of 2.29% compared to RMB 93.20 billion in 2020[15]. - The net profit attributable to shareholders of the listed company was a loss of approximately RMB 3.94 billion, a decline of 319.78% from a profit of RMB 1.79 billion in 2020[15]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of approximately RMB 3.83 billion, down 760.78% from a profit of RMB 580 million in 2020[15]. - The net cash flow from operating activities was approximately RMB 5.83 billion, a decrease of 5.09% from RMB 6.14 billion in 2020[15]. - The company reported a total revenue of 91.062 billion RMB in 2021, a decrease of 2.29% year-on-year[18]. - The net profit attributable to shareholders was -3.944 billion RMB, a decline of 319.78% compared to the previous year[18]. - Basic earnings per share were -0.43 RMB, reflecting a decrease of 326.32% year-on-year[18]. - The company's gross profit margin decreased by 2.38% due to a 1.12% increase in costs[42]. - The retail segment generated revenue of RMB 84.96 billion, a decrease of 2.11% year-on-year[42]. Assets and Liabilities - The total assets at the end of 2021 were approximately RMB 71.31 billion, an increase of 26.98% from RMB 56.16 billion at the end of 2020[17]. - The net assets attributable to shareholders of the listed company decreased to approximately RMB 10.66 billion, down 44.92% from RMB 19.35 billion at the end of 2020[17]. - The company has a total of CNY 24,826,561,091.82 in lease liabilities, representing 34.81% of total liabilities, due to remeasurement under new leasing standards[57]. - The company’s capital reserve decreased by 38.27% to CNY 4,276,144,811.80, influenced by stock cancellations and capital reductions[57]. - The company’s undistributed profits showed a significant loss of CNY 3,797,684,715.49, a 197.71% decrease due to adjustments from new leasing standards[57]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of RMB 0.2 per 10 shares, totaling approximately RMB 181.5 million, with a total cash distribution of approximately RMB 1.34 billion for the year[3]. - The cash dividend plan proposes to distribute 0.2 RMB per 10 shares to all shareholders, reflecting a commitment to maintain dividend continuity despite a loss in 2021[118]. - The company has maintained a cash dividend payout ratio of 83% of the net profit attributable to shareholders over the past three years[118]. - The company plans to implement a shareholder return plan for the next three years (2021-2023) as part of its strategic initiatives[82]. Store Operations and Expansion - The company opened 75 new Bravo stores and closed 14, with a total of 1,057 supermarket stores across 29 provinces and municipalities by the end of 2021[24]. - The company operates over 1,000 chain supermarkets across 29 provinces and 585 cities, with a total operating area exceeding 8 million square meters[35]. - The company has 159 signed but not yet opened stores, with a total reserve area of 1,119,600 square meters[60]. - The company plans to expand its presence in Chongqing, with 148 stores and an area of 1,072,997.28 square meters[65]. - The company is expanding its market presence, with plans to open 200 new stores across various regions in 2022[93]. Digital Transformation and Technology - The company completed the digital transformation of its offline stores, achieving a response time of less than 5 minutes for online failures and handling a peak traffic volume of 4 times during promotional periods[27]. - The company is focusing on digital transformation and enhancing core operational capabilities to adapt to increased online competition and customer flow loss in traditional retail[74]. - The company is investing heavily in R&D for new technologies, with a budget allocation of 324.5 million for innovation projects[90]. - The company has made substantial investments in technology to improve operational efficiency and customer experience[92]. Legal and Compliance Issues - The company is involved in a significant lawsuit regarding a rental contract dispute, with a total claim amount of RMB 15,970,300[138]. - The company has faced challenges in executing the court's ruling, with the auction of the property involved in the dispute failing twice[138]. - The company is currently in the process of appealing a court decision regarding a rental contract dispute[141]. - The company is currently involved in multiple legal disputes, with total claims amounting to over CNY 5,175,612 across various cases[156]. Social Responsibility and Community Engagement - The company purchased nearly 600 million yuan worth of specialty products from key poverty alleviation counties in 2021[130]. - The company was awarded the title of "Advanced Collective in Poverty Alleviation" by Fujian Province in May 2021[130]. - The company is committed to fulfilling its social responsibilities and responding to national policies on poverty alleviation and rural revitalization[130]. Governance and Management Changes - Significant personnel changes included the resignation of CEO Li Guo and several other executives due to personal reasons or job transfers[99]. - The company appointed Mr. Li Songfeng as the new CEO, who possesses strong technical retail expertise and organizational skills[105]. - The company is undergoing a restructuring of its board, with new elections for the fifth board of directors and various committees[101]. - The company has appointed new independent directors and supervisors during the recent shareholder meetings, indicating a shift in governance[82]. Research and Development - Research and development expenses amounted to RMB 428.11 million, reflecting an increase in investment[38]. - The total R&D expenditure for the period amounted to ¥538,162,073.70, representing 0.59% of the operating revenue[49]. - The number of R&D personnel is 953, accounting for 0.83% of the total workforce[50]. Market Trends and Consumer Behavior - The retail sales of consumer goods in China reached 4.408 trillion yuan in 2021, growing by 12.5% year-on-year, with online retail sales increasing by 14.1%[34]. - User data showed a 20% increase in active customers, reaching 50 million by the end of 2021[93]. - The company reported a user base growth of 74% year-on-year, reflecting strong customer engagement and retention strategies[90]. Financial Audit and Reporting - The audit report issued by Ernst & Young Huaming is a standard unqualified opinion, ensuring the accuracy of the financial report[2]. - The company received a standard unqualified opinion on the effectiveness of its internal control over financial reporting as of December 31, 2021, from Ernst & Young Hua Ming LLP[126]. - The audit report confirmed that the financial statements fairly reflect the company's financial position and operating results for the year ended December 31, 2021[196].