DAZZLE FASHION(SH:603587)2021-04-27 16:00Dividend Distribution - The company plans to distribute a cash dividend of 8.00 CNY per 10 shares, totaling 380,881,345.60 CNY, which represents 60.47% of the net profit attributable to shareholders for 2020[8]. - The total cash dividends distributed by the company for 2020 amount to 481,494,598.00 CNY, accounting for 76.45% of the net profit attributable to shareholders[9]. - The company completed the repurchase of 4,805,355 shares in 2020, with a cash repurchase amount included in the cash dividend calculation of RMB 100,613,252.40, representing 15.97% of the net profit[165]. - The proposed profit distribution plan is subject to approval at the shareholders' meeting[160]. - The cash dividend distribution reflects the company's commitment to sharing growth benefits with investors while ensuring normal operations and long-term development[158]. - The company has maintained a consistent dividend policy over the past three years, with the cash dividend amount increasing from RMB 401,000,000.00 in 2019 to RMB 481,494,598.00 in 2020[163]. Financial Performance - The company's operating revenue for 2020 was approximately CNY 2.56 billion, representing a year-on-year increase of 7.81% compared to CNY 2.38 billion in 2019[31]. - The net profit attributable to shareholders for 2020 was approximately CNY 629.86 million, a slight increase of 0.88% from CNY 624.37 million in 2019[31]. - The net cash flow from operating activities for 2020 was approximately CNY 723.83 million, showing a decrease of 0.18% compared to CNY 725.14 million in 2019[31]. - The total assets at the end of 2020 were approximately CNY 4.10 billion, an increase of 4.44% from CNY 3.92 billion at the end of 2019[31]. - The net assets attributable to shareholders at the end of 2020 were approximately CNY 3.44 billion, reflecting a growth of 3.93% from CNY 3.31 billion at the end of 2019[31]. - The basic earnings per share for 2020 was CNY 1.31, a slight increase of 0.77% from CNY 1.30 in 2019[32]. - The weighted average return on equity for 2020 was 18.66%, a decrease of 1.07 percentage points from 19.73% in 2019[32]. Market Position and Strategy - The company operates four well-known fashion brands: "DAZZLE," "DIAMOND DAZZLE," "d'zzit," and "RAZZLE," focusing on mid-to-high-end market positioning[43]. - The company has established strong relationships with quality suppliers for collaborative product development, ensuring exclusive rights to new materials and designs[59]. - The company’s marketing strategy includes a strong online presence through platforms like Tmall and Xiaohongshu, expanding its digital sales channels[61]. - The company has established a national marketing network with 1,154 retail terminals as of December 31, 2020, including 371 direct-operated and 783 dealer-operated stores[69]. - The company ranked among the top 100 enterprises in the apparel industry for nine consecutive years from 2011 to 2019, achieving the second position in sales profit margin in 2016 and the first position in 2018[65]. Operational Efficiency - The company emphasizes a dual production model, utilizing both partial and complete outsourcing to optimize operational costs and focus on high-value-added processes[60]. - The company’s retail network includes department stores and shopping centers, which are crucial for reaching a broad customer base[60]. - The company is focused on optimizing its organizational structure and digital information systems to promote sustainable innovation and agility[147]. - The company aims to improve inventory management and decision-making efficiency through a highly intelligent and flexible supply chain system[138]. - The company maintained strict quality control throughout its supply chain, ensuring high-quality products were delivered to customers[78]. Risks and Challenges - The company emphasizes that forward-looking statements regarding future plans and strategies do not constitute a commitment to investors, highlighting investment risks[10]. - The company has detailed the risks it may face in the report, which can be found in the section discussing future development[13]. - The company faces risks from intensified market competition in the mid-to-high-end women's clothing sector, necessitating continuous improvement of its core competencies[148]. - The impact of public health emergencies, such as COVID-19, poses risks to the company's sales and inventory management, although long-term recovery is expected[156]. Future Plans - The company plans to launch a new lifestyle brand targeting the younger generation in the second half of 2021, focusing on unique and aesthetically pleasing products[143]. - The company aims to enhance brand value through continuous investment in product design and R&D, with a focus on attracting top talent in the fashion industry[144]. - The company plans to strengthen digital transformation by investing in big data, cloud computing, and artificial intelligence to enhance operational efficiency[144]. - The company is committed to sustainable fashion and will increase efforts in responsible consumption and production, as well as gender equality[141]. Shareholder Commitments - Shareholders are committed to not transferring or entrusting their shares for 36 months after the company's stock is listed on the Shanghai Stock Exchange[172]. - After the lock-up period, shareholders can only reduce their holdings by a maximum of 25% of their total shares each year during their tenure and for 6 months after leaving[174]. - If shareholders violate their commitments, the proceeds from the illegal sale of shares will belong to the company and must be paid to a designated account within 5 trading days[173]. - The company has established a mechanism to ensure compliance with shareholding commitments and to protect the interests of investors[181].