FLYCO(SH:603868)2021-04-22 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥3.57 billion, a decrease of 5.09% compared to ¥3.76 billion in 2019[22]. - The net profit attributable to shareholders for 2020 was approximately ¥638.28 million, down 6.93% from ¥685.82 million in 2019[22]. - The basic earnings per share for 2020 was ¥1.47, a decline of 6.37% from ¥1.57 in 2019[21]. - The company's revenue for the reporting period was CNY 3,567.88 million, a decrease of 5.09% compared to the previous year[56]. - The operating cost was CNY 2,096.40 million, down 9.16% year-on-year, resulting in a gross margin of 41.20%, which increased by 2.58 percentage points[60]. - The company achieved sales revenue of RMB 35,678.81 million, a decrease of 5.09% compared to the previous year[187]. - Distributor revenue accounted for RMB 31,691.22 million, representing 88.94% of the main business revenue[187]. Cash Flow and Dividends - The company plans to distribute a cash dividend of 10 RMB per 10 shares, totaling 435.6 million RMB based on a total share capital of 435,600,000 shares as of December 31, 2020[5]. - The cash dividend distribution ratio for 2020 is 68.25% of the net profit attributable to ordinary shareholders, which is 638,275,032.79 RMB[111]. - The company experienced a 33.33% decrease in cash paid for dividends, totaling 435.60 million yuan[69]. - The net cash flow from operating activities increased by 109.54% to approximately ¥979.21 million in 2020, compared to ¥467.32 million in 2019[22]. - Cash and cash equivalents at the end of the period reached 413.29 million yuan, an increase of 81.75% from the previous year[72]. - The investment activities generated a net cash flow of -CNY 358.57 million, improving by 36.05% year-on-year[56]. Audit and Compliance - The company has received a standard unqualified audit report from Lixin Certified Public Accountants[4]. - The company has maintained a commitment to ensuring the accuracy and completeness of its financial reports, as stated by its management[4]. - The internal control audit report issued by the auditing firm was a standard unqualified opinion[179]. - The company has not faced any penalties from securities regulatory agencies in the past three years[166]. - The company has not encountered any major accounting errors that require correction during the reporting period[131]. Risk Management - The company emphasizes the importance of risk awareness regarding forward-looking statements and future development strategies[6]. - The company has not disclosed any significant risks that could impact its future development in the report[7]. - The company faces risks from macroeconomic fluctuations, particularly affecting demand for personal care and home appliances[100]. - Rising raw material prices may impact profitability, and the company plans to leverage brand premium and procurement advantages to mitigate this risk[103]. - The concentration of sales in electric shavers and hair dryers poses a risk, prompting the company to diversify its product lines[101]. Product Development and Innovation - The company launched multiple new products, including smart sensing electric shavers and precision temperature control hair dryers, and applied for 132 new patents, with 84 patents granted during the reporting period[46]. - The company has established a multi-dimensional product innovation matrix targeting the post-95 and post-00 generations, focusing on personalized, intelligent, and fashionable product development[46]. - The company has made significant investments in R&D, establishing multiple research centers for various product categories to improve R&D efficiency[38]. - The company plans to increase R&D investment and optimize product structure, focusing on personal care appliances and expanding into new product categories[91]. Marketing and Sales Strategy - The company implemented a "C-end" online marketing reform, significantly increasing the proportion of self-operated e-commerce sales[47]. - The company has developed a comprehensive marketing system combining KA terminals, regional distribution, and e-commerce, enhancing brand competitiveness[39]. - The company has established a self-broadcasting e-commerce operation on Douyin, enhancing its marketing strategy on social media platforms[50]. - The company has optimized its product categories and models under the "Bori" brand to highlight product strength and cost-effectiveness[51]. Corporate Governance - The company has a complete decision-making process and supervision mechanism for profit distribution, ensuring independent directors fulfill their responsibilities[110]. - The company continues to focus on maintaining strong governance and oversight through independent directors[160]. - The management team has a strong background in finance and investment, enhancing the company's strategic decision-making capabilities[160]. - The company has a diverse board with members holding various professional qualifications, including CPA and legal expertise[160]. Employee and Social Responsibility - The company emphasizes a competitive and incentive-based remuneration policy for its employees, focusing on performance and responsibilities[168]. - The company aims to provide comprehensive training for employees, with a focus on skills and management training, to align with corporate development strategies[169]. - The company has actively engaged in social responsibility initiatives, including improving employee welfare and participating in community support[140]. Investments and Subsidiaries - The company established 14 subsidiaries during the reporting period, with registered capital totaling 30,000,000 RMB across various sectors including home appliances and e-commerce[76]. - The company acquired a 15% stake in Chunmi Technology for a total expenditure of approximately 29.87 million USD, completing the share transfer and capital increase by May 9, 2020[79]. - The company plans to invest 728 million RMB in the Lishui Economic Development Zone for the establishment of the Feike Electric Lijing Garden Industrial Base, with a cumulative investment of 270.16 million RMB as of December 31, 2020[88]. Market Outlook - The small home appliance market in China is projected to reach ¥486.8 billion in 2021, driven by consumer demand for health-oriented and fashionable products[34]. - In 2021, the company will focus on expanding its presence in the U.S. and Southeast Asia markets, enhancing channel development and marketing strategies[97].