Leysen(SH:603900)2022-04-27 16:00Financial Performance - The company's operating revenue for 2021 was CNY 1,324,201,490.81, representing a 7.89% increase compared to CNY 1,227,323,972.84 in 2020[22] - The net profit attributable to shareholders for 2021 was CNY 38,447,848.24, a decrease of 63.14% from CNY 104,319,991.44 in 2020[22] - The basic earnings per share for 2021 was CNY 0.11, down 64.52% from CNY 0.31 in 2020[23] - The total assets at the end of 2021 were CNY 2,635,866,578.08, a slight decrease of 0.47% from CNY 2,648,374,860.57 at the end of 2020[22] - The weighted average return on net assets for 2021 was 1.68%, down 2.81 percentage points from 4.49% in 2020[23] - The net cash flow from operating activities for 2021 was negative CNY 44,097,629.42, compared to positive CNY 375,003,565.34 in 2020, indicating a significant decline[22] - The company reported a decrease in net assets attributable to shareholders, which stood at CNY 2,253,441,237.60 at the end of 2021, down 2.76% from CNY 2,317,329,312.82 at the end of 2020[22] - The net profit after deducting non-recurring gains and losses was CNY 17,260,779.50, a decrease of 79.56% from CNY 84,432,561.21 in 2020[22] Cash Flow and Investments - The company’s cash flow from operating activities showed a significant decline, with a net cash outflow of CNY 44,097,629.42 compared to a net inflow of CNY 375,003,565.34 in the previous year, a change of -111.76%[52] - The company’s investment activities generated a net cash inflow of CNY 204,878,745.03, a significant improvement compared to a net cash outflow of CNY 88,247,806.20 in the previous year[52] Revenue and Sales - In 2021, the company's total revenue was 1,424,201,491.81 RMB, with a slight year-on-year increase despite significant challenges in the retail sector due to the pandemic[25] - The sales revenue from diamond jewelry was CNY 1,233,449,244.42, with a gross profit margin of 57.00%, reflecting a decrease of 1.28 percentage points year-on-year[56] - Direct sales contributed 98,738.31 million, accounting for 75.78% of total revenue, while online sales surged by 89.38% to 13,137.94 million, representing 10.08% of total revenue[83] Market Position and Strategy - The jewelry retail industry in China saw a retail sales growth of 29.8% for gold and jewelry categories in 2021[40] - The company is a leading retailer in the diamond jewelry sector, particularly strong in the Suwan market[39] - The company focuses on product innovation and has introduced royal-themed product lines to cater to specific consumer demographics[47] - The competitive landscape in the jewelry industry remains intense, with the company focusing on product innovation and brand differentiation to maintain market share[100] Governance and Compliance - The company has established a reasonable governance structure and operates independently from its controlling shareholder in terms of business, assets, personnel, finance, and institutions[106] - The company has not faced any penalties from securities regulatory agencies in the past three years, indicating compliance with regulations[119] - The company has strengthened internal controls and risk management processes to prevent violations related to guarantees and fund occupation[106] Risk Management - The company is enhancing its risk management capabilities and internal controls to address weaknesses[38] - The company faces risks from macroeconomic uncertainties that could impact consumer purchasing power and overall sales performance[99] - The company has taken measures to prevent related party fund occupation and has strengthened its internal control processes to mitigate risks[142] Employee and Management Changes - The company has seen a significant turnover in its board members, with several key positions being filled by new appointees in 2021[111] - The company has undergone changes in its executive team, with new appointments for vice presidents and the board secretary[117] - The total remuneration for all directors, supervisors, and senior management was 7.6456 million yuan[116] Product Development and Marketing - The company launched several new product lines, including the "Royal Manor" series inspired by the British royal lifestyle, which received positive market feedback[34] - Marketing efforts included collaborations with celebrities, resulting in a total marketing exposure of 220 million times during key promotional events[35] - The company aims to optimize its product structure by reducing SKU numbers and focusing on promoting key products, particularly in the wedding and fashion accessory segments[96] Internal Controls and Audits - The company has established a comprehensive internal control system covering all departments and subsidiaries, with no significant internal control deficiencies reported during the reporting period[140] - The company has implemented regular audits on fund management, external guarantees, and related transactions to prevent risks[161] Shareholder Information - The total number of ordinary shareholders as of the end of the reporting period is 15,432, down from 17,030 at the end of the previous month[174] - The top ten shareholders hold a total of 83,242,100 shares, representing 24.45% of the company, with significant reductions in holdings by major shareholders such as Shen Dongjun, who decreased by 53,042,900 shares, now holding 15.58%[176] Tax and Legal Matters - The company is currently under investigation by tax authorities, which may impact its financial statements, although this does not affect the audit opinion issued[156] - The audit report highlighted ongoing tax investigations that may impact the company's financial statements, indicating potential uncertainties[193]