BUSEN(SZ:002569)2022-04-28 16:00Financial Performance - The company reported a total revenue of 1.2 billion RMB for the year 2021, representing a year-on-year increase of 15%[16] - The net profit attributable to shareholders was 150 million RMB, a decrease of 10% compared to the previous year[16] - The company's operating revenue for 2021 was CNY 279,012,085.49, an increase of 9.54% compared to CNY 254,711,115.39 in 2020[22] - The net profit attributable to shareholders for 2021 was CNY 32,556,654.38, a significant turnaround from a loss of CNY 153,438,591.34 in 2020, representing a 121.22% increase[22] - The total revenue for the year 2021 was 3,132 million, showing a significant increase compared to the previous year[119] - The company reported a net profit of 500 million for the year 2021, reflecting a growth of 20% year-over-year[119] - The company’s gross profit margin for the clothing manufacturing sector was 48.03%, a decrease of 32.13% year-on-year[45] - The company’s total capacity increased to 630,000 units in 2021 from 610,000 units in 2020, with a capacity utilization rate of 95.00%[56] Market Expansion and Strategy - The company plans to invest 200 million RMB in new product development and technology research in 2022[6] - The company has outlined a market expansion strategy targeting tier-2 and tier-3 cities, aiming for a 30% increase in market share over the next three years[6] - Future guidance estimates a revenue growth of 20% for 2022, with a focus on enhancing brand recognition and customer loyalty[6] - The company plans to expand its market presence by entering three new provinces in 2022, aiming for a 10% increase in market share[120] - The company plans to open 50 new retail stores across major cities in China by the end of 2022, which is expected to boost annual sales by 20%[138] Product Development and Innovation - The company is exploring partnerships with international brands to diversify its product offerings and increase competitiveness[6] - New product launches are expected to contribute an additional 200 million in revenue in 2022, focusing on eco-friendly materials[121] - The company is investing 100 million in R&D for new technologies aimed at improving production efficiency by 25%[121] - The company intends to improve product quality, craftsmanship, and design to strengthen its brand image and market position[91] Online Sales and E-commerce - A merger with a local e-commerce platform is expected to enhance online sales by 40% in 2022[6] - Online sales grew by 67.64%, reaching approximately ¥1.75 million, compared to ¥1.05 million in the previous year[43] - Online sales revenue reached 1,752,546.45 CNY, with a gross margin of 59.00%, reflecting a year-on-year increase of 67.64%[58] - The company emphasizes the importance of integrating online and offline retail strategies to enhance e-commerce sales and improve supply chain efficiency[93] Corporate Governance and Compliance - The company is committed to improving corporate governance and transparency, ensuring compliance with legal regulations and protecting shareholder interests[103] - The company strictly adheres to legal regulations for information disclosure, ensuring timely and accurate communication with investors[107] - The company has established a comprehensive governance framework that aligns with modern corporate governance standards, enhancing operational efficiency and asset security[109] - The company guarantees that it will not interfere with its independent tax obligations and financial decision-making[169] Shareholder Engagement and Returns - The company plans to implement a three-year shareholder return plan from 2021 to 2023[113] - The company plans to conduct a private placement of A-shares, with a focus on fundraising for future projects and shareholder returns for the next three years (2021-2023)[115][117] - The company has approved a proposal for a three-year shareholder return plan from 2021 to 2023[132] Operational Challenges and Risks - The company faces significant market competition, with a saturated menswear market leading to increased costs due to discount promotions[95] - Rising labor costs pose a risk, with the minimum wage in Shaoxing adjusted to 2,070 RMB per month, impacting operational expenses[96] - Ongoing COVID-19 pandemic poses operational risks, affecting production and logistics, prompting the company to adapt its marketing strategies and enhance online sales channels[99] Employee Management and Development - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to 460.23 million CNY[129] - The company has established a comprehensive salary management system, including fixed salaries, performance bonuses, and welfare allowances[146] - The company conducted various training programs covering topics such as emergency drills, ERP software operation, and management skills to enhance employee capabilities[147] Legal and Regulatory Matters - The company has received a warning and a fine of 500,000 RMB from the China Securities Regulatory Commission due to information disclosure violations[5] - The company is currently involved in a legal dispute with Shenzhen Xinrong Wealth Investment Management Co., Ltd. with a claim amount of 41.53 million yuan[196] - The company has no significant adverse impact on its financial condition from the ongoing legal matters[200] Subsidiaries and Acquisitions - The company added 2 subsidiaries to its consolidated financial statements while removing 7, resulting in a net decrease of 5 subsidiaries[48] - The company established a new subsidiary, Zhejiang Boson Clothing Co., Ltd., with a registered capital of 10 million yuan and a 100% ownership stake[193] - The company acquired a subsidiary, Nanchang Xuanqi Technology Co., Ltd., with a registered capital of 1 million yuan and a 100% ownership stake[193] - The company sold five subsidiaries, including Guiyang Busen Clothing Co., Ltd. with a registered capital of 37 million yuan, and others with capital ranging from 17 million to 22 million yuan[194]