Better Life(SZ:002251)2022-04-29 16:00Financial Performance - Total revenue for 2021 was approximately ¥13.26 billion, a decrease of 15.23% compared to ¥15.64 billion in 2020[18]. - The net profit attributable to shareholders was a loss of ¥184.13 million, representing a decline of 264.82% from a profit of ¥111.72 million in 2020[18]. - Basic and diluted earnings per share were both -¥0.22, a decrease of 269.23% from ¥0.13 in 2020[18]. - The company reported a significant decline in net profit after deducting non-recurring gains and losses, with a loss of ¥444.26 million compared to a profit of ¥85.10 million in 2020, a decrease of 622.03%[18]. - Quarterly revenue showed a downward trend, with Q4 revenue at ¥2.79 billion, down from ¥4.24 billion in Q1[22]. - The overall retail environment faced significant pressure in 2021, with a GDP growth of 8.1% and a retail sales growth of 12.5% in China, but the company experienced a decline in sales and net profit due to competition and pandemic impacts[30]. Cash Flow and Assets - The net cash flow from operating activities increased by 142.45% to ¥3.27 billion, up from ¥1.35 billion in 2020[18]. - Total assets at the end of 2021 were approximately ¥32.34 billion, an increase of 31.74% from ¥24.55 billion at the end of 2020[18]. - The net assets attributable to shareholders decreased slightly by 0.70% to ¥7.26 billion from ¥7.31 billion in 2020[18]. - The company reported a net cash outflow from investment activities of CNY -216,342.53 million, compared to CNY -173,793.25 million in 2020[56]. - The company's cash and cash equivalents increased to ¥1,709,545,756.06 at the end of 2021, representing 5.29% of total assets, up from 4.99% at the beginning of the year[81]. Store Operations and Expansion - As of December 31, 2021, the company operated a total of 386 stores, including 343 supermarkets and 43 department stores, after opening 25 new stores and closing 52 underperforming ones during the year[32][39]. - The company has implemented a new store opening principle, focusing on strategic locations and utilizing a partnership model for new stores to ensure profitability[32]. - The company plans to open new stores, with a market cultivation period generally lasting one to two years, which may lead to micro-profits or losses due to high promotional expenses[103]. Digital Transformation and Innovation - The company focused on enhancing store operations and customer experience through digital transformation, with 23% of internal flexible labor utilized in 2021[37]. - The company has developed a digital service platform that allows members to redeem points for discounts and engage with brands directly through online channels[38]. - The company is actively pursuing digital transformation and smart retail initiatives, leveraging partnerships with Tencent and JD.com[51]. Supply Chain and Product Development - The company aims to strengthen its supply chain by offering high-quality, cost-effective products to attract younger and mid-to-high-end customers[36]. - The company introduced 9,269 new products in 2021, achieving a product update rate of 30%-50% in 26 model stores in Hunan Province[36]. - The revenue from the supermarket segment was CNY 9,971,506,600.34, representing a 17.76% decrease from CNY 12,124,236,611.17 in 2020[58]. Governance and Compliance - The company maintains a strong governance structure, ensuring compliance with relevant laws and regulations, and protecting investor interests[123]. - The company has established an independent business system, ensuring operational independence from its controlling shareholder[133]. - The company is committed to improving transparency and information disclosure, enhancing communication with investors[131]. Social Responsibility and Community Engagement - The company has engaged in various social responsibility initiatives, including educational support and community care projects[188]. - The company donated over 1 million yuan in anti-epidemic materials and cash to support local communities during the pandemic[187]. - The company invested in the Hunan Putang Food Co., Ltd. with a planned capacity of 2 tons per day, expected to generate an output value of 1 billion yuan, providing over 100 jobs[186]. Future Outlook and Strategy - The company anticipates challenges from fluctuating consumer demand, which is influenced by disposable income levels and economic cycles[118]. - The company plans to expand its market presence by opening 50 new stores in the next fiscal year, targeting a 20% increase in market share[138]. - The management has provided an optimistic outlook, projecting a 10% growth in revenue for the next fiscal year[138].