Anfu Technology(SH:603031)2021-04-22 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥1.77 billion, a decrease of 6.96% compared to ¥1.90 billion in 2019[25]. - The net profit attributable to shareholders for 2020 was approximately -¥6.59 million, representing a decline of 143.14% from a profit of ¥15.28 million in 2019[25]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately -¥12.96 million, a decrease of 245.32% compared to ¥8.92 million in 2019[25]. - The net cash flow from operating activities for 2020 was approximately ¥77.65 million, a slight decrease of 0.32% from ¥77.90 million in 2019[25]. - The total assets at the end of 2020 were approximately ¥1.68 billion, down 8.41% from ¥1.83 billion at the end of 2019[25]. - The net assets attributable to shareholders at the end of 2020 were approximately ¥613.23 million, a decrease of 1.08% from ¥619.90 million at the end of 2019[25]. - Basic earnings per share (CNY/share) decreased to -0.06, a decline of 142.86% compared to the previous period[28]. - The company's operating costs were 1.406 billion yuan, down 7.47% year-on-year[58]. - The financial expenses decreased by 26.58% to 21.59 million yuan, reflecting improved cost management[58]. - The company reported a total revenue of 41,729.17 million yuan, with a net profit of -2,978.86 million yuan, indicating a loss for the period[126]. Business Operations - The company plans not to distribute profits or increase capital reserves through stock conversion for the year[8]. - The company has disclosed potential risks in its operations, which investors should be aware of[10]. - The company has not engaged in non-operating fund occupation by controlling shareholders or related parties[10]. - The company has received a standard unqualified audit report from the accounting firm Rongcheng[6]. - The self-operated business model accounted for over 96% of the company's total operating income in 2020[44]. - The company plans to expand its market presence in core areas around Hefei, focusing on county-level and rural markets[40]. - The company is actively promoting online and offline integration, launching initiatives such as group buying, fresh delivery services, and a mini-program for online shopping[55]. - The company has implemented a talent development strategy, introducing 100 university graduates annually to enhance management capabilities[50]. - The company is positioned to benefit from the ongoing economic transformation and rising disposable income among residents[52]. - The company has adapted its business strategies in response to changing consumer behaviors due to the pandemic, emphasizing health and safety in food products[52]. Market Trends and Strategies - The retail industry is experiencing rapid growth, with China's social retail sales maintaining a high growth rate over the past decade, driven by rising disposable income and economic transformation strategies[133]. - The offline retail sector is facing challenges, with growth rates slowing down, necessitating a transformation to adapt to e-commerce competition and changing consumer demands[133]. - The integration of online and offline channels is a key trend in the retail industry, enhancing consumer shopping experiences and driving a shift towards service-oriented consumption[134]. - The company aims to strengthen its retail business in the Anhui region, focusing on expanding supermarket operations and enhancing store efficiency to become a leading commercial enterprise in the province[137]. - The company recognizes the potential for self-owned brands in the retail sector, which remains underdeveloped compared to developed countries, presenting significant growth opportunities[134]. - The company is focusing on developing fresh food supermarkets to meet the rising demand for quality and safe food products among consumers[134]. - The company plans to increase its self-operated product ratio and improve gross margins through direct sourcing from manufacturers and brand owners[139]. Store Expansion and Logistics - The company opened a total of 66 stores by the end of the reporting period, with a total operating area of 211,800 square meters[40]. - The company opened 10 new stores during the reporting period, focusing on expanding its presence in core locations[52]. - The company has expanded its supermarket operations, with 54 leased supermarkets contributing to its growth strategy[96]. - The company has been actively opening new stores, with several locations established in recent years, enhancing its market presence[97]. - The main distribution center warehouse covers an area of approximately 43,550 square meters, accounting for 75.27% of the total logistics warehouse area[112]. Financial Management and Investments - The company plans to raise up to 511.42 million yuan through a non-public offering to enhance its financial strength and expand its supermarket operations[56]. - The company has decided to terminate its non-public offering plan due to market conditions and internal considerations[56]. - The company has established a comprehensive management and risk control system around key management links such as procurement, inventory, and sales[154]. - The company is in a critical development phase, requiring continuous capital investment for expansion and upgrading existing stores[156]. - The company aims to enhance its competitive advantage and scale efficiency through these investments[156]. Social Responsibility and Employee Welfare - The company has actively participated in social responsibility initiatives, including providing essential supplies during the COVID-19 pandemic and supporting local disaster relief efforts[197]. - The company has prioritized employee welfare, offering holidays for employees to visit their families and hiring over 1,000 young people and 300 laid-off workers in recent years[196]. - The company has received multiple honors for its integrity and commitment to consumer rights, including being named a "National Integrity Unit" and "Anhui Province Trustworthy Store"[191]. Risk Management and Compliance - The company has implemented a comprehensive safety management system to ensure a secure shopping environment for consumers[193]. - The company has no major litigation or arbitration matters during the reporting period[180]. - The company’s integrity status during the reporting period is reported as good[182]. - The company’s internal control audit was conducted by Rongcheng Accounting Firm with a fee of RMB 15,000[180].