Better Life(SZ:002251)2021-04-20 16:00Financial Performance - The company's operating revenue for 2020 was approximately ¥15.64 billion, a decrease of 20.47% compared to ¥19.66 billion in 2019[16]. - The net profit attributable to shareholders for 2020 was approximately ¥111.72 million, down 35.35% from ¥172.81 million in 2019[16]. - The net cash flow from operating activities was approximately ¥1.35 billion, a decline of 23.49% compared to ¥1.76 billion in 2019[16]. - Basic earnings per share for 2020 were ¥0.13, a decrease of 35.00% from ¥0.20 in 2019[16]. - The weighted average return on equity for 2020 was 1.49%, down from 1.97% in 2019[16]. - The company reported a significant drop in quarterly net profit in Q4 2020, with a loss of approximately ¥57.66 million[20]. - The company achieved a revenue of 15.638 billion yuan and a net profit of 112 million yuan for the year 2020[34]. - The total revenue for the year 2020 was CNY 1,563,757.58 million, a decrease of 20.47% compared to 2019[49]. - The net profit attributable to the parent company was CNY 11,171.57 million, down 35.35% year-on-year, largely due to the impact of COVID-19 on retail operations[50]. - The company reported a total revenue of 21,176 million, representing a year-on-year increase of 23,636 million[170]. Assets and Liabilities - Total assets at the end of 2020 were approximately ¥24.55 billion, an increase of 0.71% from ¥24.38 billion at the end of 2019[16]. - The net assets attributable to shareholders decreased by 3.24% to approximately ¥7.31 billion from ¥7.56 billion at the end of 2019[16]. - The company's total assets amounted to 24,551.12 million CNY, an increase of 173.35 million CNY or 0.71% from the beginning of the year[53]. - The total equity attributable to the parent company decreased to 7,314.29 million CNY, down 3.24% from the beginning of the year, primarily due to the share repurchase[54]. - The company's cash and cash equivalents decreased to 1,439,911,735.11 CNY, accounting for 5.86% of total assets, down from 6.11% at the beginning of the year[85]. - The company's current ratio was 0.38 and the quick ratio was 0.25, both showing a decline compared to the previous year[88]. - The company has outstanding guarantees totaling 72,075 million yuan, which represents 9.85% of the company's net assets[182]. Operational Developments - The company opened a total of 420 stores across Hunan, Guangxi, Jiangxi, and Sichuan, maintaining a leading position in the retail sector in Hunan and Guangxi[26]. - The company opened 35 new stores in 2020 while closing 15 underperforming locations, resulting in a total of 420 operational stores by the end of the year[39]. - The company signed a cooperation contract with Jiangsu Wuxing Electric Appliance Co., changing the sales model for home appliances to a joint operation, significantly impacting revenue and costs in this segment[63]. - The company established new subsidiaries, including Sichuan Bubu Gao Supply Chain Co., Ltd. and Guangxi Bubu Gao Nancheng Department Store Co., Ltd., expanding its operational footprint[67]. - The company has established a joint venture, Changsha Qixian Information Technology Co., Ltd., with Suqian JD Jiapin Trading Co., Ltd. to expand its fresh food retail business in Hunan Province[175]. Digital Transformation and Innovation - The company is actively pursuing digital transformation and has established partnerships with Tencent and JD.com to enhance its smart retail capabilities[31]. - The company achieved a digital membership of 24.7 million by the end of 2020, with a new customer acquisition of 7.36 million and a sales growth of 16.7% from digital members[37]. - The company has increased its research and development investment in the Bubu Gao Xianglong system, indicating a commitment to innovation[27]. - The company plans to enhance its core retail operations through the implementation of the Bubu Gao Xianglong ERP system and other technological advancements[76]. - The company aims to improve its digital marketing strategies to boost customer engagement and sales conversion rates[162]. Market Strategy and Future Outlook - The company plans to continue expanding its market presence in surrounding provinces after stabilizing its market share in Hunan[30]. - The company anticipates that consumer growth in 2021 will improve compared to 2020, but it is unlikely to reach pre-pandemic levels[121]. - The financial budget for 2021 aims for stable growth in revenue and operating profit compared to 2020, although this is subject to market and policy uncertainties[123]. - The company plans to cautiously open new stores, concentrating on community neighborhood centers, and enhance customer engagement through the "Rainbow Plan"[123]. - The company has set a performance guidance for the upcoming year, targeting a revenue increase of approximately 5%[161]. Social Responsibility and Community Engagement - In 2020, the company helped 85 impoverished villages and established 65 poverty alleviation procurement bases, contributing to local economic development[192]. - The company’s poverty alleviation projects, including the Eighteen Cave Mountain Spring Water Factory, created over 60 indirect jobs and generated 650,000 yuan in dividends for local villagers[192]. - During the COVID-19 pandemic, the company procured nearly 300 tons of unsold agricultural products daily from impoverished areas, assisting over 1,000 farmers[193]. - The company plans to continue its "Point Stone Plan" for poverty alleviation, focusing on industrial development and employment support in 2021[197]. - The company has initiated the "Rainbow Plan" to create a public welfare platform aimed at addressing various social issues and supporting vulnerable groups[197]. Legal and Compliance Issues - The company is involved in a lawsuit with Hunan Fourth Engineering Co., with a disputed amount of 111.14 million CNY, which has been settled without significant impact on operations[153]. - The company faces a lawsuit from Chongqing Yingshibang Real Estate Development Co. for over 66.7 million CNY due to a closed store[156]. - The company is also involved in a lawsuit with Guangxi Nancheng Department Store for 43.79 million CNY in construction payments and related penalties[157]. - The company has no penalties or rectification issues during the reporting period[157]. Related Party Transactions - The company reported a significant related party transaction amounting to 536.64 million, which accounts for 0.53% of similar transaction amounts[159]. - Another related party transaction involved an amount of 289.91 million, representing 0.29% of similar transaction amounts[159]. - A related party transaction of 217.93 million was noted, which is 0.22% of similar transaction amounts[160]. - The company maintained a focus on fair pricing principles in transactions with related parties, referencing market prices for similar properties or goods[172].