TongQingLou Catering (SH:605108)2021-04-15 16:00Financial Performance - The company's operating revenue for 2020 was CNY 1,295,920,464.10, a decrease of 11.41% compared to CNY 1,462,789,983.89 in 2019[30]. - Net profit attributable to shareholders was CNY 185,109,587.49, down 6.32% from CNY 197,593,455.22 in the previous year[30]. - The net cash flow from operating activities increased slightly by 0.76% to CNY 250,665,548.14 from CNY 248,769,690.41 in 2019[30]. - The company's total assets grew by 69.20% to CNY 2,250,790,135.71 compared to CNY 1,330,265,888.01 at the end of 2019[30]. - The net assets attributable to shareholders increased by 93.39% to CNY 1,905,958,372.48 from CNY 985,548,756.67 in 2019[30]. - Basic earnings per share decreased by 18.18% to CNY 1.08 from CNY 1.32 in 2019[32]. - The weighted average return on equity decreased by 8.91 percentage points to 13.37% from 22.28% in 2019[32]. - The company achieved a total revenue of 1,295.92 million RMB, representing a year-on-year decrease of 11.41%[64]. - The net profit attributable to shareholders was 185.11 million RMB, down 6.32% compared to the previous year[64]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was 167.30 million RMB, a decline of 6.47% year-on-year[64]. Dividend Policy - The company plans to distribute a cash dividend of RMB 1.00 per 10 shares, totaling RMB 20 million, based on a total share capital of 200 million shares as of the end of 2020[6]. - The company plans to distribute cash dividends of RMB 20,000,000, which is 10.8% of the net profit attributable to ordinary shareholders for the year 2020[131]. - The cash dividend distribution policy states that at least 10% of the distributable profit must be allocated as cash dividends if certain conditions are met[124]. - In a mature development stage without significant capital expenditure, the minimum cash dividend ratio should reach 80% of the distributable profit[124]. - The company has a stable dividend distribution policy, ensuring reasonable returns to investors while considering its funding needs and sustainable development[123]. - The company has not proposed a cash dividend distribution plan for the reporting period despite having positive distributable profits[136]. Audit and Compliance - The company has received a standard unqualified audit report from Rongcheng Accounting Firm[4]. - The company has confirmed that there are no non-operating fund occupations by controlling shareholders or related parties[9]. - The company has stated that there are no violations of decision-making procedures for providing guarantees[10]. - The company has confirmed that all directors are able to guarantee the authenticity, accuracy, and completeness of the annual report[10]. - The company has not encountered any non-standard audit opinions from its accounting firm[191]. - The company maintains a good integrity status, with no significant debts or court judgments unfulfilled during the reporting period[194]. - The company confirmed that there were no major litigation or arbitration matters during the reporting period[194]. Business Operations - The company operates 58 directly managed stores as of the end of the reporting period, maintaining its business model focused on chain operations[43]. - The company has established a standardized raw material processing and distribution base, enhancing efficiency and reducing costs[59]. - The company focuses on the banquet and wedding market, which is a significant consumer demand area in urban settings[52]. - The company has developed a one-stop wedding banquet product, enhancing competitiveness through personalized customization[55]. - The company utilizes an ERP system for centralized management across various departments, improving operational efficiency[58]. - The company has implemented a replicable system for its chain stores, ensuring consistent quality and service standards[61]. - The company emphasizes innovation in product development, regularly updating its menu to maintain market relevance[62]. - The company established five new business divisions, including Catering, Wedding, New Catering, Hotel, and Food divisions, to enhance operational efficiency and market reach[66]. - The Catering division generated revenue of CNY 1,180,327,528.55, with a gross margin of 54.35%, reflecting a decrease of 12.99% year-on-year[74]. Future Plans - The company plans to open over 10 new large restaurants and hotels in 2021, focusing on major cities along the Shanghai-Nanjing line and in Zhejiang and Hubei provinces[113]. - The food manufacturing division will fully launch in the first half of 2021, with products including marinated fish, sausages, and frozen dumplings[114]. - The company aims to enhance existing stores through upgrades and improved management, focusing on food quality and customer loyalty[115]. - The company will accelerate digital operations by developing customized information systems for various business functions[116]. - A new corporate university will be established to build a talent training system and meet recruitment needs across departments in 2021[117]. - The company aims to create a multi-business model that integrates catering, accommodation, and food manufacturing to meet diverse consumer needs[66]. Risk Management - The company has outlined potential risks in its "Discussion and Analysis of Operating Conditions" section, urging investors to pay attention to investment risks[8]. - The company faces risks related to the ongoing COVID-19 pandemic, which may impact financial performance and operations[119]. - The company has maintained a focus on food safety, which is critical for its brand reputation and operational performance[120]. - The company emphasizes the importance of compliance with food safety regulations to mitigate risks associated with product quality issues[120]. Stock Management - The controlling shareholder, Ma Tou Company, commits to not transferring or entrusting the management of its shares in Tongqing Building for 36 months post-IPO[158]. - The actual controllers, Shen Jishui and Lü Yuezhen, promise not to transfer their shares for 36 months after the company's stock listing[159]. - If the stock price falls below the IPO price for 20 consecutive trading days within six months post-IPO, the lock-up period for shares will automatically extend by six months[159]. - The company will avoid and minimize related party transactions with its controlling shareholders and ensure fair pricing in any unavoidable transactions[165]. - The company will initiate a stock repurchase plan if the stock price falls below the net asset value per share for 20 consecutive trading days within three years post-IPO[168]. - Specific measures to stabilize stock prices include stock buybacks and increased purchases by controlling shareholders and executives[169]. - The company plans to implement stock repurchase measures if the stock price does not meet the condition of being above the net asset value for 10 consecutive trading days[170]. - The stock repurchase will be executed within 6 months after the shareholders' meeting approval, with a maximum fund usage of 20% of the previous year's net profit attributable to shareholders[173]. - The controlling shareholder is required to submit a stock purchase plan within 30 days if conditions are met, with a minimum purchase of 1% and a maximum of 2% of total shares within 12 months[174]. - Directors and senior management must submit a stock purchase plan within 10 days if conditions are met, with a minimum investment of 20% of their after-tax salary from the previous year[176]. Governance and Internal Control - The company will strengthen internal controls and optimize governance structures to enhance operational performance and manage financial risks effectively[184]. - The company has established a commitment from directors and senior management to avoid actions that could harm company interests[185]. - The company will publicly explain any failure to implement stock stabilization measures and apologize to shareholders[177]. - The company has committed to linking its compensation system to the execution of its return measures[190]. Related Party Transactions - The company reported a total of 1,624,240.80 RMB in related party transactions, with a rental price of 31.8 RMB per square meter for properties leased from the actual controller[196]. - No major related party transactions were reported that had subsequent developments or changes[200]. - No related party debt transactions were disclosed with subsequent developments or changes[200].