LANCY(002612)2021-04-23 16:00Dividend Distribution - The company plans to distribute a cash dividend of 3 RMB per 10 shares to all shareholders, based on a total of 442,445,375 shares[4]. - The company has established a profit distribution plan that does not include stock dividends or capital reserves conversion[4]. Investments and Ownership - The company holds a 26.53% stake in Agabang & Company, a KOSDAQ listed company in South Korea[13]. - The company has a 12.33% stake in Guangzhou Ruoyuchen Technology Co., Ltd., previously listed on the Shenzhen Stock Exchange[13]. - The company has a 20% stake in Dream Medical Group Co., Ltd. through its subsidiary Dream Korea Holdings[13]. - The company has a total of 100% ownership in several subsidiaries in the medical beauty sector, including Sichuan Jingfu and Xi'an Jingfu[13]. - The company has a 51% stake in Chengdu Gaoxin Milan Baiyu Medical Beauty Hospital[13]. - The company has not made any investments in the Wuhu Bochen No. 5 and No. 8 equity investment partnerships during the reporting period[13]. Financial Performance - The total revenue for 2020 was ¥2,876,436,729.73, a decrease of 4.35% compared to ¥3,007,255,155.40 in 2019[24]. - The net profit attributable to shareholders increased by 141.65% to ¥142,036,818.79 from ¥58,778,676.12 in the previous year[24]. - The net profit after deducting non-recurring gains and losses rose by 299.89% to ¥101,185,876.44, compared to ¥25,303,716.63 in 2019[24]. - The basic earnings per share increased by 125.77% to ¥0.3224 from ¥0.1428 in 2019[24]. - The total assets at the end of 2020 were ¥5,153,564,692.50, a decrease of 2.74% from ¥5,298,938,738.35 in 2019[26]. - The net assets attributable to shareholders decreased by 0.57% to ¥2,961,058,106.39 from ¥2,978,032,577.39 in 2019[26]. - The net cash flow from operating activities was ¥379,278,066.80, down 36.44% from ¥596,746,640.65 in 2019[24]. - The weighted average return on net assets was 4.78%, an increase from 2.07% in 2019[24]. Revenue Breakdown - Total revenue for the year reached ¥2,876,436,730.73, with a quarterly breakdown of ¥586,527,134.59 in Q1, ¥642,417,388.57 in Q2, ¥767,751,323.08 in Q3, and ¥879,740,883.49 in Q4[28]. - Net profit attributable to shareholders was ¥92,043,164.12 in Q4, showing a significant recovery from a loss of ¥3,174,066.09 in Q1[28]. - The net profit excluding non-recurring gains and losses was ¥66,936,194.23 in Q4, compared to a loss of ¥9,763,092.44 in Q1[28]. - Operating cash flow for the year totaled ¥379,377,066.80, with Q4 contributing ¥79,379,573.94[28]. Market Presence and Brand Strategy - The company operates four self-owned fashion brands and two agency-operated brands, targeting the mid to high-end women's apparel market[34]. - The new brand L BY LANCY is set to launch in 2021, expanding the company's product offerings[35]. - The company has established a multi-industry interconnected ecosystem focusing on fashion women's wear, medical beauty, and green infant products[34]. - The company aims to enhance its market presence through brand acquisitions and new product launches, aligning with current fashion trends[35]. - The women's clothing brand ranks among the top 10 in China, with nearly 70% of its stores in the top five sales positions within their respective malls[43]. - The company's online business is gradually increasing, with the brand ranking 7th in the Tmall industry during the 2020 Double Eleven pre-sale, and 1st in the women's fashion category[43]. Medical Beauty Sector - The medical beauty segment has expanded to 19 institutions, including 4 hospitals and 16 clinics, primarily located in major cities such as Chengdu and Xi'an[44]. - The domestic medical beauty market reached a scale of 197.5 billion RMB in 2020, accounting for 17% of the global market, with expectations to become the world's largest medical beauty market[51]. - The company aims to integrate and expand high-quality medical beauty resources, targeting rapid market capture through brand promotion and chain operations[52]. - The company has established a comprehensive management and operational system for its medical beauty brands, achieving a level of replicability in operations[52]. - The company has established a strong presence in the medical beauty market with three major brands: Milan Baiyu, Jingfu Medical Beauty, and Gao Yisheng, operating 19 medical beauty institutions in China[71]. Children's Clothing Sector - The company has diversified into the children's clothing sector by becoming the largest shareholder of the Korean brand Agabang, which covers a wide range of products for infants aged 0-4[53]. - Agabang, founded in 1979, focuses on providing comfortable and stylish clothing and products for young children, blending Asian and global fashion trends[53]. - The high-end children's clothing market in China is in a growth phase, with significant demand and potential for expansion[60]. - The children's clothing brand Akabang generated revenue primarily through online channels, targeting mothers aged 25-35 with a price range of 299 CNY to 899 CNY[150]. Operational Efficiency - The company has established a comprehensive marketing network with 593 offline sales terminals and 15 online channels for its women's clothing business, serving over 317,700 offline VIP customers[76]. - The medical beauty division emphasizes high-quality services, with a team of 530 medical professionals and a focus on innovative medical technologies[77]. - The company has developed a customer-centric service model in its medical beauty institutions, ensuring high-quality customer experiences through comprehensive service standards[79]. - The company has optimized its supply chain, enhancing product quality and increasing the procurement of imported fabrics from Germany and Italy[101]. Research and Development - The company has a robust R&D capability, holding 2 invention patents, 28 software copyrights, 12 design patents, and 14 utility model patents as of the end of the reporting period[75]. - Research and development expenses decreased by 9.95% to CNY 93,137,288.37 during the reporting period[134]. - The number of R&D personnel increased by 10.47% to 327 in 2020, while the proportion of R&D personnel to total employees decreased to 6.55%[160]. Financial Management - The company's asset-liability ratio remained low at 30.21%, showing stability in financial management[94]. - Cash and cash equivalents saw a significant increase of 210.07%, primarily due to the rise in contract liabilities from the medical beauty business[64]. - The company’s total liabilities decreased, reflecting a reduction in loan demand[165]. - The company reported a total investment of ¥1,894,455,538.08 for the reporting period, a decrease of 9.45% compared to ¥2,092,156,739.31 in the previous year[168]. Future Plans - The company plans to continue expanding its medical beauty and green baby product lines to drive future growth[116]. - The company plans to accelerate the nationwide layout of its medical beauty business, aiming to become an industry leader[200]. - The company aims to strengthen its position in the mid-to-high-end women's clothing sector while expanding its medical beauty services[200]. - The company is committed to continuous improvement of its industrial strategy and deepening the development of the "pan-fashion industry interconnected ecosystem"[200].