Bestore(SH:603719)2021-03-29 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 343,579,525.05 in 2020, with a proposed cash dividend of RMB 2.57 per 10 shares, totaling RMB 103,057,000.00, which accounts for 30% of the net profit[8]. - The company's operating revenue for 2020 was approximately RMB 7.89 billion, representing a 2.32% increase compared to RMB 7.71 billion in 2019[30]. - The net profit attributable to shareholders for 2020 was approximately RMB 343.58 million, a slight increase of 0.95% from RMB 340.35 million in 2019[30]. - The net assets attributable to shareholders at the end of 2020 were approximately RMB 2.08 billion, reflecting a 47.12% increase from RMB 1.42 billion at the end of 2019[33]. - The total assets at the end of 2020 were approximately RMB 4.18 billion, which is a 9.19% increase from RMB 3.83 billion at the end of 2019[33]. - The basic earnings per share for 2020 was RMB 0.87, down 8.42% from RMB 0.95 in 2019[33]. - The cash flow from operating activities for 2020 was approximately RMB 330.21 million, a decrease of 3.50% from RMB 342.19 million in 2019[33]. - The company reported a non-operating income of ¥68,491,154.35 in 2020, compared to ¥66,827,510.46 in 2019, reflecting a year-over-year increase of approximately 2.5%[40]. - The company reported a net cash flow from operating activities of approximately RMB 330.21 million, a decrease of 3.50% from the previous year[95]. Dividend Policy - The company maintains a cash dividend policy, distributing at least 10% of the annual distributable profit in cash, provided there are no major investment plans or cash expenditures[174]. - The company plans to distribute a cumulative cash dividend of no less than 30% of the average annual distributable profit over the last three years[180]. - In the case of significant capital expenditures, the cash dividend ratio should be at least 40% during the mature phase of the company's development[174]. - The board of directors must obtain approval from more than half of the independent directors for the profit distribution proposal[185]. - The company will review the shareholder return plan at least every three years, considering the opinions of shareholders, independent directors, and supervisors[182]. - The company’s legal reserve fund must not be less than 25% of the registered capital when converted to capital[174]. - The company prioritizes cash dividends while ensuring the sustainability of its operations and long-term development[181]. - The company’s profit distribution policy emphasizes stability and continuity, balancing shareholder returns with long-term interests[171]. - The board must complete the distribution of dividends within two months after the shareholders' meeting resolution[174]. - The company will not use capital reserves to cover losses, ensuring that the legal reserve fund is utilized appropriately[174]. - The company plans to distribute cash dividends of no less than 10% of the distributable profits for each fiscal year, contingent on profitability and cash flow conditions[188]. - In 2020, the company distributed a cash dividend of 2.57 CNY per 10 shares, totaling 103,057,000 CNY, which represented 30% of the net profit attributable to ordinary shareholders[191]. - For 2019, the cash dividend was 2.55 CNY per 10 shares, amounting to 102,255,000 CNY, also at 30.04% of the net profit attributable to ordinary shareholders[191]. - The company will prioritize cash dividends unless there are significant investment plans or cash expenditures exceeding 30% of the latest audited net assets[188]. - The board will propose differentiated cash dividend policies based on the company's development stage and capital expenditure plans, with a minimum cash dividend ratio of 80% for mature companies without major expenditures[188]. - The company may propose stock dividends in addition to cash dividends, provided the minimum cash dividend ratio is maintained[187]. - The future three-year shareholder return plan emphasizes cash dividends while considering shareholder feedback, especially from public and minority investors[188]. - The company has committed to not transferring or managing shares held prior to the IPO for 36 months post-listing, ensuring stability in shareholding[195]. - The company will ensure that any stock dividend distribution aligns with the overall interests of all shareholders[187]. - The board will review and submit the annual dividend plan to the shareholders' meeting based on the company's profitability and future funding needs[188]. Risk Management - The report includes a risk statement indicating potential risks that the company may face, which investors should pay attention to[10]. - The report emphasizes that forward-looking statements do not constitute a commitment to investors, highlighting the importance of investment risk awareness[9]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties[10]. - Seasonal sales fluctuations are a risk, with peak demand typically occurring in the first and fourth quarters due to holidays and climate factors, necessitating accurate market forecasting and inventory management[159]. - The company faces risks from raw material price volatility, as key ingredients like nuts and fruits are subject to market fluctuations, which could affect procurement costs and profitability[160]. - Increased competition in the snack food industry poses a risk, as new entrants may challenge the company's market position, potentially leading to decreased sales or lower prices[161]. - The company has implemented a comprehensive quality control system, but remains vulnerable to food safety risks that could harm its brand image and financial performance[162]. - Rising operational costs, including rent, labor, and logistics, could impact the company's profitability as these expenses are expected to increase in the future[166]. - The ongoing uncertainty from the COVID-19 pandemic continues to affect the supply chain and consumer demand, with the company taking measures to mitigate these risks[167]. Business Expansion and Strategy - The company plans to continue expanding its market presence and invest in new product development to drive future growth[36]. - The company opened a total of 622 new stores during the reporting period, expanding into seven new markets, resulting in a total of 2,701 stores across 21 provinces[62]. - The company achieved a leading position in e-commerce with 79 sub-channels on third-party platforms, launching nine new products with over 10 million in sales[63]. - The company has developed multiple advanced food processing technologies, including puffing technology and low-temperature sterilization technology, which are being applied to various products[59]. - The company’s focus on health-oriented product innovation aligns with industry trends, as the retail market for leisure food is projected to exceed 120 billion yuan in 2020[69]. - The company has positioned itself as a leading brand in the leisure food industry, recognized as the first "high-end snack stock" listed on the Shanghai Stock Exchange[71]. - The company plans to continue expanding its presence in Central China and solidifying its position in Southern China while advancing into Eastern and Northern markets[94]. - The company aims to expand its product lineup targeting niche markets, leveraging its technology and supply chain advantages to cover various categories and drive sustained high growth in these segments[153]. - In 2021, the company plans to enhance online and offline channel integration, focusing on user operations and aligning product development with consumer needs, while expanding its physical store presence across the country[153]. Research and Development - The company invested 3,371.70 million RMB in R&D, an increase of 23.22% year-on-year, and developed seven key patented technologies[89]. - The company has a high-level R&D team of 45 members, with 92% holding master's or doctoral degrees, enhancing its competitive edge in product development[78]. - The company’s R&D strategy is driven by user needs, focusing on health and nutrition, with a commitment to continuous technological innovation[55]. - The company’s processing technology research aims to develop proprietary techniques that enhance product quality and efficiency[58]. - The company established a digital platform that processed 10.75T of historical data, improving data timeliness by 30% and computational power by 3.75 times[81]. - The company has established a supplier collaboration system to enhance supply chain efficiency, focusing on product development collaboration and centralized procurement of bulk raw materials[154]. - The company has developed a product matrix covering over 1,200 SKUs to meet diverse consumer demands, but faces risks from significant changes in consumer preferences that could impact sales[155].