Shanghai Lily&Beauty (SH:605136)2022-03-02 16:00Financial Performance - In 2021, the company achieved operating revenue of CNY 4.15 billion, a decrease of 9.67% compared to the previous year[29]. - The net profit attributable to shareholders reached CNY 410.74 million, an increase of 20.99% year-over-year[29]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 362.54 million, up 17.32% from the previous year[29]. - Total assets as of December 31, 2021, amounted to CNY 34.34 billion, reflecting a growth of 10.22% compared to the end of the previous year[29]. - The net assets attributable to shareholders increased to CNY 26.91 billion, a rise of 15.05% year-over-year[29]. - Basic earnings per share for 2021 were CNY 1.03, representing an increase of 11.96% compared to 2020[21]. - The weighted average return on equity decreased to 16.40%, down 1.87 percentage points from the previous year[21]. - The company achieved an operating income of CNY 4.155 billion in 2021, a decrease of 9.67% compared to the previous year[46]. - The company's gross profit margin improved to 36.46%, an increase of 6.10 percentage points year-on-year[48]. - The net cash flow from operating activities was negative CNY 133.87 million, a decline of 176.39% compared to the previous year[48]. Dividend and Shareholder Returns - The company plans to distribute a cash dividend of RMB 2.10 per 10 shares, totaling RMB 84,395,850, based on a total share count of 401,885,000 after repurchasing 145,000 restricted shares[4]. - For the fiscal year 2021, the company plans to distribute cash dividends of RMB 2.10 per 10 shares, totaling RMB 84,395,850, achieving a distribution ratio of 20.55% of net profit attributable to shareholders[137][138]. - The company has implemented a cash dividend policy, ensuring a minimum of 80% of profits are distributed as cash dividends during mature stages without major capital expenditures[135]. Corporate Governance and Compliance - The company has confirmed that there are no non-operational fund occupations by controlling shareholders or related parties[6]. - The company has received a standard unqualified audit report from PwC Zhong Tian[7]. - The company has maintained a commitment to the accuracy and completeness of the annual report, with all board members present at the meeting[7]. - The company has not violated decision-making procedures for external guarantees[6]. - The company has not faced any issues with more than half of the board members being unable to ensure the authenticity of the annual report[6]. - The company has implemented strict governance measures in compliance with the Company Law and relevant regulations, ensuring no major discrepancies in governance practices[102]. - The company has not disclosed any significant differences in governance practices compared to regulatory requirements, indicating a commitment to transparency[103]. - The company has not reported any major changes in related party transactions or conflicts of interest during the reporting period[107]. - The company is focused on enhancing its operational independence and has not faced significant challenges from controlling shareholders[103]. Market and Operational Strategy - The company continues to leverage its data analysis capabilities to enhance brand strength and operational efficiency[29]. - The management emphasized the importance of compliance and efficient customer acquisition in the changing market environment[28]. - The company plans to continue expanding its product offerings and enhancing its online service capabilities in response to market trends[44]. - The company is exploring new business models on emerging platforms to enhance brand reputation and user experience, aiming for long-term sustainable sales growth[80]. - The company is focused on maintaining the sustainability of its own brands and invested brands through targeted marketing and IT support[84]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $100 million allocated for potential deals[111]. Social Responsibility and Sustainability - The company donated 4 million yuan in 2021, emphasizing its commitment to corporate social responsibility and sustainable business practices[38]. - The company disclosed its ESG report for the first time, highlighting its commitment to sustainable development and social responsibility[131][134]. - The company is committed to green development, focusing on sustainable supply chains and eco-friendly packaging[150]. - The company provided employment for 14 disabled individuals in 2021, with related expenditures totaling RMB 866,000[155]. Employee and Management Structure - The total number of employees in the parent company is 986, while the main subsidiaries have 204 employees, resulting in a total of 1,190 employees[129]. - The company has a structured remuneration assessment plan approved by the board and shareholders[114]. - The company established a performance evaluation system to ensure fair treatment of employees, allowing them to express opinions on assessments[133]. - The management team includes experienced professionals with backgrounds in finance and technology, enhancing strategic decision-making capabilities[109]. Risks and Challenges - The company recognizes the risk of declining consumer demand due to economic pressures and the ongoing pandemic, which could adversely affect financial performance[88]. - The company faces platform risks due to intensified competition and rapid changes in algorithms and operational policies across e-commerce platforms[89]. - The company reported a significant impact from the COVID-19 pandemic, with ongoing uncertainties affecting global economic recovery and potential disruptions to supply chains and sales[100]. Future Outlook - In 2022, the company aims to achieve an annual revenue of 4,363 million yuan and a net profit of 408 million yuan after deducting non-recurring gains and losses[82]. - Future guidance indicates a projected revenue growth of approximately 15% year-over-year for the next fiscal period[110]. - The company plans to expand its market presence and invest in new product development in the upcoming fiscal year[110].