HOLIKE(SH:603898)2021-04-14 16:00Dividend Distribution - The company plans to distribute a cash dividend of 1.38 RMB per 10 shares to all shareholders, totaling approximately 41.42 million RMB (including tax) based on a total share capital of 311,276,718 shares as of March 31, 2021[4]. - The company does not plan to increase capital reserves to convert into share capital for the 2020 fiscal year[4]. - The company has not proposed any capital reserve transfer to increase share capital in the past three years[148]. - The company has established a cash dividend policy to ensure a balance between shareholder returns and business development strategies[147]. - The total cash dividends distributed in 2020, including share buybacks, amounted to 125,562,651.63 CNY, which is 45.47% of the net profit attributable to shareholders[153]. - For the 2019 fiscal year, the company proposed cash dividends of 3.65 CNY per 10 shares, amounting to 109,561,511.99 CNY, which is 30.06% of the net profit attributable to shareholders[151]. - In 2018, the company distributed cash dividends of 3.71 CNY per 10 shares, totaling 114,861,854.51 CNY, representing 47.69% of the net profit attributable to shareholders[149]. Financial Performance - The company's operating revenue for 2020 was approximately ¥2.18 billion, a decrease of 1.88% compared to ¥2.23 billion in 2019[18]. - Net profit attributable to shareholders decreased by 24.25% to approximately ¥276 million from ¥364 million in 2019[18]. - The net cash flow from operating activities increased by 38.10% to approximately ¥556 million, primarily due to an increase in advance payments received[19]. - Total assets increased by 39.25% to approximately ¥5.17 billion, mainly due to the consolidation of Hubei Qianchuan[20]. - Basic earnings per share decreased by 23.28% to ¥0.89 from ¥1.16 in 2019[19]. - The weighted average return on equity decreased by 4.35 percentage points to 10.71% from 15.06% in 2019[19]. - The company's gross profit margin for the main business was 37.65%, a decrease of 3.12 percentage points year-on-year, with the gross profit margin for wardrobe products at 40.53%[61]. - The net profit attributable to shareholders was 276 million yuan, a year-on-year decrease of 24.25%, while the net profit after deducting non-recurring items was 242 million yuan, down 24.71% year-on-year[61]. Risks and Challenges - The company reported significant risks including market changes, intensified competition, potential price wars, raw material price fluctuations, seasonal fluctuations, management risks, and overcapacity risks[5]. - The company’s future operational development may be adversely affected by significant risks, including market competition and price volatility[5]. - The company faces risks from market fluctuations and competition, which may impact its operational performance[133]. - The company emphasizes the importance of managing raw material price volatility to maintain profitability[137]. Operational Strategy - The company operates in the custom home furnishing industry, providing a variety of products including wardrobes, kitchens, and doors[29]. - The company focuses on a comprehensive service model, enhancing brand operation and product offerings to improve customer service[32]. - The company is focusing on brand positioning and enhancing brand recognition through diversified marketing strategies, including celebrity endorsements and various promotional activities[34]. - A user data platform has been established to improve retail store efficiency and support decision-making in store location, marketing resource allocation, and channel development[34]. - The company is implementing a flexible production model through OEM and ODM to provide customized products that meet consumer demands, enhancing cost-effectiveness[35]. - The company aims to enhance operational efficiency and customer experience through standardized services while also catering to personalized demands[34]. - The company is adapting to a changing market characterized by stock competition and a new consumer demographic, emphasizing the need for more diverse channel strategies[41]. - The main consumer group is shifting to younger generations, who prioritize sustainability and unique brand experiences, necessitating brand adaptation[42]. Acquisitions and Investments - The company completed the acquisition of 51% of Hubei Qinchuan's shares for 700 million yuan, enhancing its engineering channel capabilities and contributing 123 million yuan to the bulk revenue post-merger[69]. - The company acquired a 40% stake in Hanlong Windows, which will become a wholly-owned subsidiary, aiming to accelerate business expansion[77]. - The company has established a wholly-owned subsidiary, Haolaike Health, with a registered capital of RMB 10 million, and another subsidiary, Haolaike Installation Company, with a registered capital of RMB 5 million[118]. - The company agreed to acquire 51% of Hubei Qianchuan Window Co., Ltd. for RMB 700 million, with a profit commitment of at least RMB 180 million for 2021 and 2022[168]. Marketing and Brand Development - The company launched over 300 live streaming sessions during the year, achieving a total exposure of over 1.5 billion, significantly enhancing brand visibility[68]. - The effective customer count increased by 37% year-on-year, with the conversion rate continuing to improve, driven by the shift to online customer acquisition channels[68]. - The company introduced a new membership system to maximize user value and accumulate brand assets, supporting user acquisition, retention, and conversion[73]. - The company emphasized product innovation with the launch of four trend-leading series, integrating diverse design inspirations and cross-industry collaborations[74]. Financial Management - The company has a total of 10 million yuan in bank wealth management products with an annualized return rate ranging from 1.80% to 3.35%[183]. - The company has invested a total of 68 million yuan in bank wealth management products from idle self-owned funds, with an outstanding balance of 10 million yuan[181]. - The company has successfully raised 10,000 million through corporate bonds and short-term financing, with a yield of 1.05%[184]. - The company reported a total investment of 28,000 million in structured products with a yield of 4.20%[186]. - The company has a projected yield of 3.85% on its deposit and bond products, with a total investment of 5,000 million[186]. Corporate Governance - The company has made commitments to ensure that any future equity incentive plans align with the interests of shareholders[162]. - The company is committed to timely information disclosure in accordance with the regulations of the China Securities Regulatory Commission and the stock exchange[161]. - The company has established a commitment to compensate for any penalties or losses incurred due to unpaid social insurance or housing fund contributions[162]. - The company will not engage in any competitive activities with its controlling shareholders before any change in control occurs[166].