DAZZLE FASHION(SH:603587)2022-04-27 16:00Financial Performance - The company's operating revenue for 2021 was CNY 2,897,599,885.26, representing a 13.00% increase compared to CNY 2,564,170,558.22 in 2020[29]. - The net profit attributable to shareholders for 2021 was CNY 689,483,326.02, a 9.47% increase from CNY 629,857,231.85 in 2020[29]. - The net cash flow from operating activities for 2021 was CNY 873,850,725.55, reflecting a 20.73% increase from CNY 723,825,950.79 in 2020[29]. - The total assets at the end of 2021 were CNY 4,691,541,561.23, which is a 14.46% increase from CNY 4,098,779,415.65 at the end of 2020[29]. - The basic earnings per share for 2021 was CNY 1.44, up 9.92% from CNY 1.31 in 2020[29]. - The weighted average return on equity for 2021 was 19.00%, an increase of 0.34 percentage points from 18.66% in 2020[29]. - The company reported a total of CNY 42,088,940.97 in non-recurring gains and losses for 2021[37]. - The company achieved operating revenue of CNY 2,897,599,885.26, an increase of 13% compared to the previous year[77]. - Net profit attributable to shareholders reached CNY 68,948,33, reflecting a growth of 9.47% year-on-year[77]. Dividend and Share Repurchase - The company plans to distribute a cash dividend of 10.00 CNY per 10 shares, totaling approximately 485.38 million CNY, which represents 70.40% of the net profit attributable to shareholders for 2021[9]. - The proposed profit distribution plan is subject to approval at the 2021 annual general meeting[9]. - The total cash dividends distributed for 2021, including share buybacks, amounted to RMB 485,378,565.97, accounting for 70.40% of the net profit attributable to shareholders[194]. - The company repurchased a total of 292,963 shares during the year, amounting to 4.92 million CNY, which is 0.71% of the net profit attributable to shareholders[9]. - The cash dividend distribution proposal is subject to approval at the shareholders' meeting[194]. Market and Industry Trends - The total retail sales of consumer goods in China reached RMB 440,823 billion in 2021, growing by 12.5% year-on-year, with a two-year average growth rate of 3.9%[57]. - The retail sales of clothing, shoes, hats, and textiles amounted to RMB 13,842 billion in 2021, reflecting a year-on-year increase of 12.7%[57]. - The fashion industry in China is expected to continue its optimistic growth due to stable economic conditions, with a projected market size of $570 billion by 2023 for activewear[62]. - Digitalization is increasingly important in the fashion industry, with brands needing to enhance their online presence and utilize big data for personalized solutions[62]. - Sustainability is becoming a key focus, with brands pressured to adopt eco-friendly practices and materials in response to consumer demand[62]. - The trend towards size personalization is growing, driven by the rising demand for plus-size fashion, although many brands have yet to standardize their offerings[62]. Marketing and Brand Strategy - The company focused on enhancing brand power through multi-dimensional marketing strategies, including collaborations with popular IPs like Disney and Pokémon, resulting in significant media exposure[63]. - The live broadcast of the Dunhuang series fashion show garnered 8.36 million views, with a total topic volume exceeding 660 million and online exposure surpassing 570 million[63]. - The company signed brand ambassadors to boost internationalization and diversification, including Sun Yi and HyunA during the Double Eleven shopping festival[63]. - The high-end brand DIAMOND DAZZLE appointed Shu Qi as its spokesperson, receiving widespread attention and positive feedback in the industry[63]. - The company aims to enhance brand recognition and market competitiveness, capitalizing on the growing demand for high-quality domestic brands[58]. Research and Development - The company invests significantly in new fabric research and development each year to maintain the distinctiveness of its brands[50]. - The design and development process is informed by market trends, sales data, and consumer feedback, allowing for timely product launches[50]. - Research and development expenses increased by 14.21% to CNY 64,607,431.24, driven by higher salaries and sample production costs[78]. - The design and R&D team consisted of 199 members as of December 31, 2021, with a focus on innovative and localized fashion design[70]. - The company plans to enhance digital operations through technologies like layered databases, smart devices, and cloud computing, aiming for a comprehensive digital transformation across supply chain, membership, and multi-channel transactions[133]. Governance and Compliance - The company has a structured governance framework, including a board of directors with 9 members and various committees to ensure compliance and operational efficiency[148]. - The company is focused on maintaining its governance structure in compliance with relevant regulations, ensuring no major discrepancies exist[149]. - The company has implemented a stock incentive plan, which was approved by the board and shareholders in 2021[198]. - The company has provided opportunities for minority shareholders to express their opinions and ensured their legal rights are protected[197]. Operational Efficiency - The company maintains a light asset business model, outsourcing production and logistics to focus on design, branding, and sales[74]. - The company has established a competitive advantage in supply chain management, ensuring high-quality materials and strict quality control processes[74]. - The company aims to enhance its digital transformation strategy over the next three years, focusing on organizational and cultural changes, brand and consumer operations, and supply chain responsiveness[66]. - The company will enhance user experience by investing in product presentation, packaging, logistics, and customer service[137]. - The company plans to enhance its supply chain efficiency, targeting a 15% reduction in operational costs[162].