UTour (SZ:002707)2021-04-28 16:00Economic Impact and Market Conditions - The company reported a significant impact from macroeconomic fluctuations, with a potential decrease in consumer spending on travel due to declining disposable income and economic uncertainty[7]. - The overall economic environment poses challenges, with a noted slowdown in economic growth impacting the tourism sector[7]. - The company acknowledges the potential adverse effects of natural disasters and political instability on travel demand[11]. - The domestic tourism market is gradually recovering, with 2020 domestic tourism numbers dropping to 2.879 billion, a 52.1% decrease year-on-year, while domestic tourism revenue fell by 61.1% to ¥2.23 trillion[150]. - The company intends to maintain its competitive edge by leveraging its financial strength and resource integration capabilities to minimize the impact of the pandemic on its operations[157]. Financial Performance - The total revenue for 2020 was ¥1,561,325,696.15, a decrease of 87.63% compared to ¥12,621,711,761.38 in 2019[39]. - The net profit attributable to shareholders was a loss of ¥1,480,276,815.31, representing a decline of 2,257.47% from a profit of ¥68,611,707.30 in 2019[39]. - The company's operating revenue for 2020 was ¥1,561.33 million, a decrease of 87.63% year-on-year[69]. - The tourism wholesale business revenue dropped to ¥1,007 million, down 87.78% year-on-year due to the pandemic[74]. - The company reported a total revenue of 1.5 billion RMB for the year 2020, representing a year-over-year decrease of 20% due to the impact of the pandemic[181]. Strategic Initiatives and Business Model - The company plans to avoid cash dividends, stock bonuses, or capital increases from reserves, focusing on reinvestment instead[20]. - The company aims to enhance its competitive advantage by diversifying into high-end tourism, business travel, and other comprehensive services[53]. - The company has shifted its focus to domestic tourism, with a significant emphasis on developing domestic products and resources[69]. - The company aims to expand its domestic tourism business, targeting a market potential of 10 trillion yuan in consumption over the next five years, with a projected 10 billion tourism trips[158]. - The company plans to enhance its "Tourism+" strategy, focusing on integrating services such as education, healthcare, and shopping into its tourism offerings[154]. Operational Challenges and Risks - The company faces risks related to foreign exchange fluctuations, which could affect procurement costs and pricing strategies[15]. - There is a risk of goodwill impairment due to acquisitions, which may not yield the expected synergies if market conditions worsen[19]. - The company reported that both net profits before and after deducting non-recurring gains and losses were negative for the last three accounting years[39]. - The gross profit margin for the tourism services segment was -19.27%, indicating significant operational challenges[97]. - The company is adapting its business model to focus more on domestic tourism due to the ongoing impact of the COVID-19 pandemic[100]. Investments and Fund Management - The company has established a commitment to minimize related party transactions and ensure fair pricing and conditions in any unavoidable transactions[187]. - The company has committed to ensuring that all shares held are legally owned and free from disputes or restrictions[187]. - The company has established a special account for the raised funds, which will be monitored by the board of directors to ensure proper usage[197]. - The company has committed to managing the raised funds in a reasonable and legal manner, with regular checks on their usage[197]. - The company plans to use its own funds for future direct store openings instead of relying on the remaining fundraising[136]. Customer Engagement and Market Expansion - The company has established several new subsidiaries, although their impact on overall performance is considered minimal[149]. - The company is actively exploring MCN operational channels to boost online traffic through influencer incubation and live streaming[81]. - The company has launched eight major themed products such as "Zhou You Ji" and "Sa Huan Er China" to quickly penetrate the domestic travel market[81]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share in the region by the end of 2022[181]. - The company has introduced high-end customized travel experiences in Hainan, serving 100 tourists in the "Bohai Lecheng 5-Day Health Tour" project[76]. Future Outlook and Recovery Plans - The company expects a recovery in the travel sector, projecting a revenue growth of 25% in 2021 as travel restrictions ease[181]. - Future guidance indicates an EBITDA margin improvement to 15% by 2022, up from 10% in 2020[181]. - The management emphasized a commitment to maintaining financial stability and transparency in all operations moving forward[181]. - The company plans to implement cost-cutting measures, aiming for a reduction of operational costs by 15% in the next fiscal year[181]. - The company aims to enhance the efficiency of fund utilization and reduce financial costs and debt-to-asset ratio by changing the use of the remaining fundraising[138].