LFX(SH:900905)2022-04-28 16:00Financial Performance - The company's operating revenue for 2021 was CNY 58.69 billion, an increase of 13.47% compared to CNY 51.72 billion in 2020[20]. - The net profit attributable to shareholders for 2021 was CNY 1.88 billion, representing an 18.30% increase from CNY 1.59 billion in 2020[20]. - The total assets of the company at the end of 2021 were CNY 22.27 billion, a 13.86% increase from CNY 19.56 billion at the end of 2020[21]. - The company's net assets attributable to shareholders increased by 15.40% to CNY 9.19 billion at the end of 2021, compared to CNY 7.96 billion at the end of 2020[21]. - Basic earnings per share for 2021 were CNY 3.5868, an increase of 18.30% from CNY 3.0319 in 2020[22]. - The weighted average return on equity for 2021 was 21.74%, up from 21.03% in 2020[22]. - The total profit for 2021 was 3.242 billion yuan, surpassing the board's target of 3.081 billion yuan by 105.22%, and increased by 16.00% from the previous year's profit of 2.794 billion yuan[38]. - The net profit attributable to shareholders was 1.876 billion yuan, exceeding the board's target of 1.735 billion yuan by 108.15%, and grew by 18.30% from 2020's net profit of 1.586 billion yuan[38]. Cash Flow and Dividends - The net cash flow from operating activities decreased by 15.25% to CNY 1.99 billion in 2021, down from CNY 2.35 billion in 2020[21]. - The company plans to distribute a cash dividend of CNY 14.50 per 10 shares, totaling CNY 758.52 million, based on the total share capital as of December 31, 2021[5]. - The company reported a retained earnings balance of CNY 1.43 billion after the proposed dividend distribution[5]. - The operating cash flow for the year was ¥2.93 billion, with significant fluctuations in cash flow across the quarters, including a negative cash flow of ¥2.67 billion in Q3[24]. - The operating cash flow decreased by 15.25% to ¥1.99 billion, down from ¥2.35 billion in the previous year, primarily due to increased operational expenditures[48]. Market Position and Sales - The retail sales of gold and jewelry in China reached ¥304.1 billion in 2021, a year-on-year increase of 29.8%, indicating strong market demand[28]. - The company maintained a dominant market position, with its "Lao Feng Xiang" brand accounting for 99.25% of total revenue and 86.12% of total profit in 2021[29]. - The number of marketing outlets increased to 4,945 by the end of 2021, with a net addition of 495 outlets during the year, enhancing market penetration[31]. - The actual gold consumption in China reached 1,120.90 tons in 2021, a 36.53% increase compared to 2020, showcasing a recovery in consumer demand post-pandemic[28]. - The wholesale revenue amounted to ¥43.29 billion, showing a year-over-year increase of 20.03%[54]. - The retail revenue increased significantly by 67.16% year-over-year, reaching ¥3.94 billion[54]. Product Development and Innovation - The R&D expenses surged by 53.91% to ¥30.80 million, up from ¥20.01 million in the previous year, indicating a strong focus on innovation[49]. - The company launched 116 new products in 2021, setting a new record for product development[42]. - The company holds 258 patent applications, including 19 granted invention patents and 719 effective authorized patents[66]. - The company plans to continue developing new products, focusing on high-value series like "Master" and leveraging innovative designs and materials to enhance brand recognition and product value[99]. Strategic Plans and Future Outlook - The company aims for a total revenue target of 63.099 billion CNY for 2022, representing a growth of 7.51% compared to 2021[95]. - The profit target for 2022 is set at 3.133 billion CNY, which is a decrease of 3.35% from the previous year[95]. - The company plans to enhance its market position and operational efficiency through strategic reforms and resource optimization[94]. - In 2022, the company aims to open at least 300 new retail outlets, including franchise stores and distribution points, focusing on emerging regional markets with annual sales exceeding 2 billion RMB[96]. - The company plans to enhance its brand influence through a series of marketing activities themed around "national trends," aiming to establish itself as the preferred brand for domestic jewelry products[98]. Corporate Governance and Management - The company has a comprehensive internal remuneration system for determining the compensation of directors and senior management based on performance[118]. - The company has established specialized committees within the board, including an audit committee and a strategic committee, to enhance governance[125]. - The company has continued to engage with external auditors for financial and internal control audits, ensuring transparency and accountability[121]. - The company has maintained a stable management team, with no significant changes in shareholding among directors and senior management[109]. Social Responsibility and Environmental Impact - The company invested 1,675,700 CNY in environmental protection efforts in 2021, focusing on improving production processes and updating environmental facilities[145]. - The company emphasizes the importance of fulfilling social responsibilities while balancing economic and social benefits[147]. - The company has invested 5.9 million RMB in poverty alleviation efforts across 24 villages in Yunnan Province since 2019, with all three counties successfully lifting themselves out of poverty by 2020[148]. - The company generated 32.82 tons of hazardous waste and 80.51 tons of general industrial solid waste in 2021[147]. Risks and Challenges - The jewelry industry is expected to face uncertainties in 2022 due to macroeconomic factors, including the impact of the COVID-19 pandemic and fluctuating consumer demand[101]. - The company remains exposed to risks related to gold price and exchange rate fluctuations, which could significantly affect its operations[101]. - Inventory management risks are present due to the volatility of raw material prices, particularly for gold and other precious metals[102].