ELLASSAY(SH:603808)2021-04-15 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 444,999,469.90 for the year 2020, with a legal surplus reserve of RMB 22,495,187.48 deducted, resulting in a distributable profit of RMB 422,504,282.42[8]. - In 2020, the company's operating revenue was CNY 1,962,142,551, a decrease of 24.90% compared to CNY 2,612,593,692 in 2019[26]. - The net profit attributable to shareholders was CNY 444,999,469.90, an increase of 24.80% from CNY 356,577,420.66 in 2019[26]. - The basic earnings per share increased to CNY 1.34, up 25.23% from CNY 1.07 in 2019[27]. - The weighted average return on equity rose to 21.74%, an increase of 6.69 percentage points from 15.05% in 2019[27]. - The total assets at the end of 2020 were CNY 3,576,511,155.51, a 3.73% increase from CNY 3,447,892,542.45 at the end of 2019[26]. - The company reported a net cash flow from operating activities of CNY 215,489,558.63, down 51.03% from CNY 440,032,836.36 in 2019[26]. - The company’s total revenue for 2020 was 1.962 billion RMB, a decrease of 24.9% year-on-year, while net profit attributable to shareholders increased by 24.8% to 445 million RMB[87]. - The company's asset-liability ratio improved from 43.11% to 37.05% during the reporting period[85]. - The company reduced its inventory scale to 532 million RMB, a year-on-year decrease of 10.57%[85]. Dividends and Profit Distribution - A cash dividend of RMB 3.9 per 10 shares (including tax) will be distributed to all shareholders, totaling RMB 129,681,088.29 (including tax) based on a total share capital of 332,515,611 shares[9]. - The total amount of dividends distributed to shareholders for the year 2020 is RMB 129,751,613[9]. - The cash dividend payout ratio for 2020 is 29.16%, compared to 23.31% in 2019 and 47.83% in 2018, indicating a strategic adjustment in profit distribution[145][148]. - The company repurchased shares worth RMB 70,525 as part of the second phase of restricted stock, which has been canceled, and this amount is treated as a cash dividend[147]. Business Operations and Strategy - The company is committed to ensuring sufficient funds for normal operations while returning profits to shareholders[9]. - The company plans to continue its market expansion and product development strategies in the upcoming periods[10]. - The company emphasizes the importance of risk awareness in its forward-looking statements regarding future plans and strategies[10]. - The company aims to become a globally competitive high-end fashion brand group, focusing on the design, development, production, and sales of branded fashion[35]. - The company has established a brand matrix that includes various fashion segments, covering different market demands[35]. - The company has implemented a digital transformation strategy, enhancing operational efficiency and decision-making speed during the pandemic[63]. - The company has developed a centralized operational support system, including design, supply chain management, and information management, to support brand development[59]. - The company has adopted a strategy of "low-cost large stores" and "new store success" to optimize channel expansion in first-tier cities[58]. - The company aims to leverage online channels to increase brand influence and customer engagement, driving offline conversion[123]. - The company aims to enhance brand operational efficiency by focusing on single-store sales growth and encouraging internal growth through various marketing strategies for new store openings[126]. Market and Consumer Insights - The company reported a significant increase in investment activities, with net cash flow from investment activities rising by 410.96% to 212 million RMB[88]. - The company aims to become an internationally competitive high-end fashion brand group, leveraging a multi-brand matrix to achieve synergy and complementary advantages among brands[54]. - The Z generation in China, numbering over 226 million, has become a major driver of fashion consumption, emphasizing the need for brands to engage through social media[52]. - The competitive landscape in the fashion industry is intensifying, with a focus on multi-brand strategies to enhance market presence[119]. - Digital transformation is being prioritized to improve management efficiency and enhance supply chain responsiveness[124]. Risks and Challenges - The report includes a detailed description of business operation risks, marketing risks, and sales channel risks that the company may face in the future[12]. - The company faces risks from adverse market conditions, counterfeit products, and the rapid expansion of e-commerce channels, which could negatively impact sales performance[136][137][138]. Social Responsibility and Community Engagement - The company is actively engaged in fulfilling its social responsibilities[187]. - The company has invested a total of RMB 10 million in the "Shenzhen Charity Association • Geli Si Art Public Welfare Fund" to promote art public welfare activities[188]. - The company donated RMB 3.17 million for medical and epidemic prevention supplies in response to the COVID-19 pandemic[189]. - The company has been recognized with multiple awards for its social responsibility efforts, including the "2020 Excellent Social Responsibility Enterprise" from the China SOS Children's Village Association[190]. - The company has rebranded its public welfare fund to "Shenzhen Charity Association • Geli Si Sustainable Fashion Fund," focusing on sustainable fashion initiatives[190]. Audit and Compliance - The company has received a standard unqualified audit report from Rongcheng Accounting Firm[11]. - The company appointed Rongcheng Accounting Firm as the new financial audit and internal control audit institution for the year 2020, replacing Tianjian Accounting Firm[163]. - The remuneration for the new auditor is set at ¥1,100,000, while the previous auditor's remuneration was ¥1,200,000[162]. - The company confirmed that there were no major violations of court judgments or significant debts that remained unpaid during the reporting period[164]. - The company has ensured compliance with the latest regulations from the China Securities Regulatory Commission regarding the issuance of shares and compensation measures[156].