TongQingLou Catering (SH:605108)2022-04-28 16:00Financial Performance - In 2021, the company achieved operating revenue of CNY 1,608,368,930.95, a year-on-year increase of 24.11% compared to CNY 1,295,920,464.10 in 2020[25]. - The net profit attributable to shareholders was CNY 144,064,803.19, representing a decrease of 22.17% from CNY 185,109,587.49 in 2020[25]. - The net profit after deducting non-recurring gains and losses was CNY 125,302,393.74, down 25.10% from CNY 167,298,431.00 in 2020[25]. - The company reported a net cash flow from operating activities of CNY 316,228,588.10, an increase of 26.16% compared to CNY 250,665,548.14 in 2020[25]. - The gross profit margin for 2021 was 21.09%, a significant decrease of 34.00% from 55.09% in 2019, primarily due to changes in accounting standards[30]. - The net profit margin for 2021 was 8.96%, indicating a decline in overall profitability despite revenue growth[32]. - Total assets at the end of 2021 were CNY 2,838,142,428.12, a 26.10% increase from CNY 2,250,790,135.71 at the end of 2020[25]. - The company’s weighted average return on equity decreased to 7.32% in 2021, down 6.05 percentage points from 13.37% in 2020[25]. Dividend and Shareholder Information - The company plans to distribute a cash dividend of 2.80 RMB per 10 shares, totaling 72,800,000 RMB based on a total share capital of 260,000,000 shares as of the end of 2021[8]. - The board approved a dividend payout of 0.2 RMB per share, reflecting a commitment to returning value to shareholders[167]. - The company reported a profit distribution plan involving a capital reserve transfer to share capital, with a proposal to distribute 3 shares for every 10 shares held[163]. - The total pre-tax remuneration for the chairman during the reporting period was 1,680,000 CNY[158]. - The total remuneration paid to all directors, supervisors, and senior management during the reporting period amounted to 4.1736 million CNY[176]. Operational Developments - The company has maintained revenue growth and a stable profit level in its main catering and banquet business[8]. - The company opened 7 new stores compared to 2019, contributing to a revenue increase of 9.95% from CNY 1,462,789,983.89[28]. - The company plans to continue enhancing operational efficiency and expanding its market presence through new store openings and upgrades[50]. - The company plans to open at least 100 supermarket locations in Jiangsu by the end of 2022, having already signed contracts with 33 Su Guo supermarkets[55]. - The company opened 5 new stores and upgraded 7 existing stores during the reporting period[48]. Risk Management and Compliance - The management discussion section outlines potential risks the company may face, urging investors to pay attention to investment risks[9]. - The audit report issued by Rongcheng Accounting Firm confirmed the financial statements' accuracy and completeness, providing a standard unqualified opinion[7]. - The company has no non-operating fund occupation by controlling shareholders or related parties, ensuring compliance with regulations[9]. - The company has implemented internal control measures in accordance with regulatory requirements, enhancing the effectiveness of its internal control system[149]. - The company has not encountered any significant discrepancies with the regulations regarding corporate governance as stipulated by laws and the China Securities Regulatory Commission[151]. Market and Industry Insights - The restaurant industry in China has experienced an average annual growth rate of 18.6% over the past 30 years, indicating strong market potential[56]. - The wedding industry market size was approximately CNY 2.11 trillion in 2019, with a projected annual growth rate of 5% from 2021 to 2026[57]. - In 2021, the national catering revenue reached CNY 468.95 billion, a year-on-year increase of 18.64%[125]. - The catering revenue from large-scale enterprises was CNY 104.34 billion, growing by 23.5% year-on-year, exceeding the national average by 4.9 percentage points[125]. - In 2021, the catering industry accounted for 10.6% of the total retail sales of consumer goods, an increase of 0.5 percentage points from the previous year[125]. Strategic Initiatives and Future Plans - The company plans to expand its new stores along the Shanghai-Nanjing line and in major cities of Zhejiang and Hubei provinces, with some projects in the leasing contract stage[132]. - The company aims to complete no less than 100 SKU products in 2022, focusing on traditional Chinese cuisine and expanding into the Jiangsu market with nearly 100 supermarket entries planned[136]. - The company will implement a comprehensive data-driven operation strategy in 2022 to maximize customer resource value and promote sustainable business growth[137]. - The company is investing 50 million RMB in new technology for kitchen automation to improve efficiency and reduce costs[167]. - The company is exploring potential acquisitions to enhance its supply chain, with a budget of 100 million RMB allocated for this purpose[167]. Governance and Management - The company has established a governance framework consisting of the shareholders' meeting, board of directors, supervisory board, and senior management, ensuring clear responsibilities and effective coordination among these entities[144]. - The board of directors consists of 9 members, including 3 independent directors, ensuring a reasonable professional structure[147]. - The supervisory board, comprising 3 members, effectively supervises the company's financial status and the performance of the board and senior management[148]. - The company emphasizes investor relations management, actively engaging with investors through performance briefings and various communication channels[148]. - The company has established effective communication channels between shareholders and the board, ensuring transparency in major company matters[145].