King's Luck(SH:603369)2021-04-18 16:00Financial Performance - The total revenue for 2020 was approximately ¥5.12 billion, representing a 5.12% increase from ¥4.87 billion in 2019[11]. - The net profit attributable to shareholders was approximately ¥1.57 billion, an increase of 7.46% compared to ¥1.46 billion in 2019[11]. - The net cash flow from operating activities was approximately ¥1.12 billion, showing a decrease of 14.43% compared to the previous year[11]. - The total assets at the end of 2020 were approximately ¥11.85 billion, a 17.78% increase from ¥10.06 billion in 2019[11]. - The basic earnings per share for 2020 was ¥1.2490, up from ¥1.1623 in 2019, reflecting a growth of 7.46%[11]. - The weighted average return on equity decreased to 20.25% from 21.93% in 2019, a reduction of 1.68 percentage points[11]. - The total profit for the year was CNY 1,585.41 million, showing a year-on-year increase of 13.35%[38]. - The company achieved a revenue of 5.12 billion RMB in 2020, an increase of 5.12% compared to the previous year[22]. - The net profit attributable to shareholders was 1.567 billion RMB, reflecting a growth of 7.46% year-on-year[22]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of 4.50 RMB per 10 shares, totaling 56,452.5 million RMB based on a total share capital of 125,450 million shares as of December 31, 2020[3]. - The company has established a cash dividend policy, distributing an average of no less than 30% of annual net profit to shareholders, with a total cash dividend of 514.345 million RMB in 2020[86]. - The company plans to distribute a cash dividend of 4.10 RMB per 10 shares, totaling 51,434.50 thousand RMB, as approved in the 2019 annual shareholders' meeting[63]. Governance and Compliance - The company has received a standard unqualified audit report from Zhonghui Certified Public Accountants, ensuring the accuracy and completeness of the financial report[2]. - The company has a clear governance structure with all board members present at the board meeting, ensuring accountability and oversight[2]. - The company emphasizes the importance of maintaining a balance of interests among stakeholders, ensuring the protection of investors' rights and interests[120]. - The company has implemented a strict insider information management system, ensuring compliance with regulations and protecting investor interests[120]. - The company has not faced any major litigation or arbitration matters during the reporting period, indicating a stable legal standing[71]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements in the annual report, indicating potential uncertainties in future plans and strategies[4]. - The company recognizes risks from macroeconomic fluctuations, which could impact consumer spending and liquor demand[61]. - The company is facing competition in the Jiangsu market, which accounted for over 93% of its revenue in recent years, posing a risk if market conditions change[62]. - The company emphasizes the importance of food safety and quality control in its production processes to mitigate potential risks[62]. Market and Product Strategy - The company operates three major liquor brands: "Guoyuan," "Jinshi Yuan," and "Gaogou," with "Guoyuan" and "Jinshi Yuan" recognized as "China Famous Trademarks" and "Gaogou" as a "Chinese Time-honored Brand"[18]. - The company emphasizes quality and brand as fundamental competitive advantages, with a focus on high-quality growth amid increasing competition in the liquor industry[18]. - The company aims to enhance its brand image through cultural marketing, positioning "Guoyuan" as "China's high-end medium liquor" and "Jinshi Yuan" as "the liquor for Chinese people"[19]. - The company is actively promoting the integration of industrialization and information technology, transitioning from traditional production methods to standardized industrial practices[19]. - The company anticipates intensified competition and a concentration of market share among leading enterprises in the liquor industry due to consumer upgrades and differentiation[18]. Research and Development - The company invested 22.3 million RMB in R&D, which is a 56.82% increase compared to the previous year[23]. - The company holds over 200 patents, including 29 invention patents, and has received 20 provincial and ministerial awards for its innovative brewing technologies[20]. - The company has developed mechanized brewing equipment and robotic technology, enhancing the automation and quality stability of its liquor production[20]. Social Responsibility - The company donated 10 million RMB for pandemic relief efforts, demonstrating its commitment to social responsibility[22]. - The company has actively participated in various charitable activities, contributing a total of 14 million RMB, including 10 million RMB specifically for COVID-19 relief efforts[86]. - The company has implemented a poverty alleviation plan, helping 445 families in Tangji Town achieve poverty alleviation during the reporting period[85]. Environmental Management - The company has established a comprehensive green management mechanism, achieving green food certification for its products[20]. - The company has a commitment to environmental protection, having ceased operation of existing boilers and switched to purchasing steam, while also reusing by-products like distiller's grains[86]. - The company processed a total of 353,600 tons of wastewater in 2020, with COD emissions of 6.83 tons and ammonia nitrogen emissions of 0.043 tons[86]. - The company has established an emergency response plan for environmental incidents, which has been filed with the local environmental protection bureau[92]. Employee Management - The employee satisfaction index improved as wages increased despite the pandemic's impact[22]. - The company has established a mechanism for employee salary adjustments and provided various forms of financial support to employees, including 2.352 million RMB for pandemic relief[86]. - The total number of employees in the parent company is 2,153, and in major subsidiaries, it is 1,468, resulting in a total of 3,621 employees[114]. Future Outlook - The company aims to achieve a revenue target of CNY 5.9 billion in 2021, with a goal of reaching CNY 6.6 billion[59]. - The net profit target for 2021 is set at CNY 1.8 billion, with aspirations to reach CNY 1.9 billion[59]. - The strategic goal for 2025 is to exceed CNY 10 billion in revenue, with a target of CNY 15 billion[58]. - Future guidance indicates a projected revenue growth of 12% for 2021, aiming for 1.34 billion RMB[109].