Winka Times(603101)2021-04-29 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥2.12 billion, a decrease of 51.84% compared to ¥4.40 billion in 2019[21]. - The net profit attributable to shareholders for 2020 was approximately ¥16.21 million, down 41.62% from ¥27.77 million in 2019[21]. - The net cash flow from operating activities decreased by 70.72% to approximately ¥127.02 million, compared to ¥433.85 million in 2019[21]. - The basic earnings per share for 2020 was ¥0.0345, a decrease of 41.53% from ¥0.0590 in 2019[22]. - The company's total revenue for 2020 was ¥384.07 million, representing a year-on-year decrease of 12.78%[33]. - The gross profit margin for the company decreased by 0.26 percentage points compared to the previous year, indicating a decline in profitability[33]. - The company's total assets increased by 7.04% to approximately ¥4.08 billion at the end of 2020, up from ¥3.81 billion at the end of 2019[21]. - The company's net assets attributable to shareholders increased by 1.42% to approximately ¥1.40 billion at the end of 2020, compared to ¥1.38 billion at the end of 2019[21]. - The company reported a significant increase in government subsidies, amounting to ¥4.90 million in 2020, compared to ¥1.86 million in 2019[27]. - The company achieved a total revenue of CNY 2,120,784,093.52, a decrease of 51.84% year-on-year[46]. - The net profit attributable to shareholders was CNY 16,213,300, down 41.62% compared to the previous year[46]. - Operating costs decreased by 60.32% to CNY 1,426,908,270.44, reflecting significant cost control measures[48]. - The company's gross margin increased by 14.4 percentage points to 32.72% despite the revenue drop[52]. Impact of COVID-19 - The company experienced a three-month closure of its stores due to the pandemic, significantly impacting its revenue[23]. - In 2020, the company faced significant challenges due to the COVID-19 pandemic but managed to maintain a stable operation, contributing to the overall economic recovery in China, which saw a GDP growth of 2.3%[39]. - The company implemented strict safety measures in response to the pandemic, ensuring the safety of employees and customers[45]. - The company actively engaged in social responsibility efforts during the pandemic, ensuring the supply of essential goods and supporting frontline workers[44]. - The company implemented measures to support suppliers and tenants during the pandemic, including rent reductions for affected businesses[152]. Business Strategy and Operations - The company plans not to distribute profits for 2020 to support the construction of the Xinjiang Huijia Food Industry Park and the expansion of its online business[5]. - The company is actively restructuring its business model to adapt to the rapid growth of online sales channels and changing consumer preferences due to the pandemic[34]. - The company emphasized the importance of a strong supply chain and omnichannel integration to enhance customer experience and drive performance growth[35]. - The company increased the proportion of self-sourced products, which effectively boosted both store gross profit and gross margin[42]. - The company expanded its e-commerce operations by leveraging new media platforms for online sales, including live streaming and social media[43]. - The company operates 6 department stores, 3 shopping centers, and 11 supermarkets, with a total operating area of 480,000 square meters across key commercial areas in Xinjiang[31]. - The company has adopted a mixed operating model, including joint ventures, self-operated, and leasing, to enhance its market presence[31]. - The company aims to strengthen its market position in Xinjiang while exploring new development areas, focusing on enhancing product, service, and shopping environment quality[82]. - The company plans to optimize resource integration and innovate marketing strategies to drive performance growth and improve operational management capabilities[83]. - The company will enhance service quality and promote online-offline integration to improve overall competitiveness and regional influence[84]. - The company intends to innovate its marketing strategies through online and offline interactions, aiming to increase customer satisfaction and loyalty[85]. - The company is committed to optimizing its supply chain and logistics systems to enhance brand value and operational efficiency[84]. Shareholder and Governance Matters - The company plans to implement a cash dividend policy, distributing 4 shares for every 10 shares held, without cash dividends or bonus shares[90]. - The controlling shareholder intends to maintain their stake in the company, with a potential reduction of no more than 15% of their shares within 12 months after the lock-up period[98]. - The company has made commitments regarding the accuracy of its prospectus, ensuring no misleading statements or omissions[100]. - The company has established a commitment to ensure that any debt incurred during the establishment of a new logistics company will not affect its financial standing[103]. - The company has a robust corporate governance structure to protect the rights of shareholders and creditors, ensuring transparency in information disclosure[152]. - The company has developed a mature service management system to enhance customer satisfaction and address consumer needs effectively[153]. - The company has established a performance evaluation and incentive mechanism for senior management, ensuring transparency and compliance with legal regulations[193]. - The company has actively engaged with investors through various channels, enhancing transparency and protecting the rights of minority investors[192]. Legal and Compliance Issues - The company is currently involved in a lawsuit with a claim amounting to 30,140,918.42 RMB, related to a rental contract dispute[124]. - The company has not reported any significant deficiencies in internal control during the reporting period[199]. - The company received administrative penalties from the China Securities Regulatory Commission in 2019, involving warnings and fines for several executives[184]. - The company has not experienced any incidents of fund occupation by the controlling shareholder during the reporting period[190]. Employee and Management Matters - The company employed a total of 3,369 staff, with 420 in the parent company and 2,949 in major subsidiaries[185]. - The company has implemented a training program aimed at enhancing employee skills and aligning personal development with corporate goals[187]. - The company has a diverse management team with extensive experience in various sectors, including retail and investment[181]. - The management team includes individuals with significant roles in other companies, enhancing their expertise and network[181]. - The company has a strategic focus on expanding its management capabilities through experienced personnel[181]. Future Outlook - The company expects to increase its daily related transactions to 4,201.00 million RMB in 2021, up from 2,791.85 million RMB in 2020[141]. - The company plans to lease office space and shopping centers, with expected rental payments increasing in 2021 compared to 2020[141]. - The company aims to establish a digital transformation strategy to achieve a refined, diversified, and channel-oriented community operation model[85]. - The company will continue to promote energy-saving measures and optimize property management to ensure sustainable development[86].