Hongqi Chain(002697)2021-03-31 16:00Financial Performance - The company reported a total revenue of 1,360,000,000 RMB for the year 2020, with a cash dividend of 0.84 RMB per 10 shares distributed to all shareholders[7]. - The company's operating revenue for 2020 was ¥9,053,380,331.60, an increase of 15.73% compared to ¥7,822,778,964.68 in 2019[27]. - The net profit attributable to shareholders for 2020 was ¥504,872,067.98, a decrease of 2.20% from ¥516,224,087.53 in 2019[27]. - The net profit after deducting non-recurring gains and losses was ¥456,856,920.59, down 7.43% from ¥493,543,607.75 in 2019[27]. - The net cash flow from operating activities increased by 79.48% to ¥494,649,969.04 from ¥275,596,691.39 in 2019[27]. - The total assets at the end of 2020 were ¥6,120,784,252.27, a 19.83% increase from ¥5,107,757,768.13 at the end of 2019[27]. - The weighted average return on equity for 2020 was 15.58%, down from 18.25% in 2019[27]. - The total operating cost for 2020 was 6,387,371,423.22 CNY, an increase of 18.15% from 5,406,264,301.44 CNY in 2019[62]. - The cash inflow from operating activities totaled 10,251,731,148.86 CNY in 2020, marking a 16.14% increase from 8,826,791,562.49 CNY in 2019[70]. - The total distributable profit for 2020 was RMB 454,804,300.35, with the cash dividend representing 100% of the profit distribution[98]. Business Operations - The company has not changed its main business since its listing, indicating stability in operations[25]. - The company has maintained a differentiated competitive strategy focusing on "products + services" to enhance customer loyalty and attract new consumer groups[41]. - The company has expanded its operations into a modern technology chain integrating "cloud platform big data + products + community services + finance"[41]. - The company opened 302 new stores during the reporting period, bringing the total number of stores to 3,336 by December 31, 2020[50]. - The company has established a logistics system with three distribution centers, enhancing its supply chain efficiency[46]. - The company has invested in the Hongqi Cloud data platform to optimize financial and human resource management, improving operational efficiency[50]. - The company has expanded its market presence by establishing a joint venture in Gansu province, replicating its successful business model[50]. - The company plans to open 350 new stores in 2021, focusing on expanding its presence in Gansu and enhancing its import-export business in Hainan[87]. Risk Management - The company emphasizes the importance of risk awareness in its future outlook and operational plans[7]. - The company is facing risks related to macroeconomic conditions that could impact consumer demand and retail growth[87]. - The company has reported ongoing operational cost pressures due to rising rental and labor costs in the competitive retail market[88]. Shareholder Information - The company plans to distribute a cash dividend of RMB 0.84 per 10 shares, totaling RMB 114,240,000 for the year 2020[98]. - The cash dividend for 2019 was RMB 0.87 per 10 shares, amounting to RMB 118,320,000, while for 2018 it was RMB 0.53 per 10 shares, totaling RMB 72,080,000[94][95]. - The cash dividends over the past three years accounted for 22.63% of the net profit attributable to ordinary shareholders in 2020, 22.92% in 2019, and 22.34% in 2018[95]. - The total number of shares is 1,360,000,000, with 79.28% being unrestricted shares[154]. - Major shareholder Cao Shiru holds 24.08% of shares, totaling 327,420,000 shares, with an increase of 245,565,000 shares during the reporting period[167]. - Yonghui Supermarket Co., Ltd. holds 21.00% of shares, totaling 285,600,000 shares, with no change during the reporting period[167]. Corporate Governance - The company is committed to maintaining strong governance and transparency in its operations[197]. - The management team is dedicated to driving growth and innovation within the company[192]. - The remuneration for directors, supervisors, and senior management is determined based on their administrative positions and duties according to the company's existing compensation system[199]. - The company strictly adheres to the decision-making procedures and basis for remuneration, ensuring timely payment of salaries to directors, supervisors, and senior management[199]. Social Responsibility - In 2020, the company donated over 5,000,000 CNY to support COVID-19 prevention efforts and other social welfare initiatives[139]. - The company facilitated the sale of over 65,000,000 CNY worth of fresh agricultural products to support local farmers during the pandemic[143]. - The company has actively engaged in social responsibility initiatives, including disaster relief donations[141]. Legal and Compliance - The company did not experience any major litigation or arbitration matters during the reporting period[110]. - The company did not have any penalties or rectification situations during the reporting period[111]. - The company has no reported violations regarding external guarantees during the reporting period[135]. - The company has no significant contracts or loans reported during the reporting period[138].