Kingee Culture(SZ:002721)2021-04-29 16:00Shareholder Changes - The company reported a significant change in its controlling shareholder, with Hai Xin Asset acquiring 149,383,805 shares previously held by Bi Kong Long Xiang, making it the new controlling shareholder[20]. - The company’s controlling shareholder changed on April 30, 2020[195]. Financial Performance - The company's operating revenue for 2020 was ¥3,896,180,389.56, a decrease of 63.52% compared to ¥10,680,541,104.29 in 2019[22]. - The net profit attributable to shareholders for 2020 was -¥2,559,932,726.07, reflecting a significant decline of 4,231.30% from ¥61,964,379.43 in 2019[22]. - The basic earnings per share for 2020 was -¥2.99, a decrease of 4,371.43% compared to ¥0.07 in 2019[23]. - The total assets at the end of 2020 were ¥10,311,633,010.64, down 18.84% from ¥12,705,044,135.73 at the end of 2019[23]. - The net assets attributable to shareholders decreased by 47.03% to ¥2,443,346,795.31 at the end of 2020 from ¥4,612,640,010.23 at the end of 2019[23]. - The company reported a net cash flow from operating activities of -¥55,823,607.04 in 2020, a 97.20% improvement from -¥1,991,127,335.14 in 2019[22]. - In 2020, the company's revenue was CNY 389,618.04 million, a decrease of 63.52% compared to the previous year[57]. - The net profit for the same period was CNY -266,662.52 million, representing a decline of 6,547.70% year-on-year, with the net profit attributable to shareholders at CNY -255,993.27 million, down 4,231.30%[57]. Dividend Policy - The company plans not to distribute cash dividends, issue bonus shares, or increase capital from reserves for the fiscal year[6]. - The company has not proposed any cash dividend distribution for the past three years, with a net profit of -2,559,932,726.07 CNY in 2020[117]. - The company will not distribute cash dividends or increase capital reserves through stock issuance in the current reporting period[118]. Risk Management - The company emphasizes the importance of risk awareness regarding future plans and forecasts, indicating potential operational risks[5]. - The financial report is guaranteed to be true, accurate, and complete by the company's management, ensuring accountability for any misleading statements[4]. Business Operations - The company has maintained its main business without any changes since its listing[20]. - The company has not disclosed any new product developments or technological advancements in the current report[5]. - The company has not reported any mergers or acquisitions during the reporting period[5]. - The company operates through two main sales channels: bank and postal sales channels, and its own retail brand sales channels, focusing on cultural value-added products[32]. - The company has emphasized product innovation and cultural integration in its business strategy, aiming to enhance brand value and market presence[31]. - The company launched several cultural and creative products, including the "600th Anniversary Commemorative Coin of the Forbidden City" and "Fire God/Thunder God" themed products, which received positive consumer feedback[32]. Sales and Marketing - The retail sales revenue reached 73,557.33 million CNY, with a gross margin of 20.92%[40]. - The company emphasized brand differentiation marketing and project resource expansion as key performance drivers during the reporting period[41]. - The company’s sales team was strengthened to improve sales capabilities, especially during the pandemic, leading to increased sales conversion rates[41]. - The company actively organized promotional activities in stores to ensure normal sales operations after the pandemic[41]. Acquisitions and Investments - Beijing Jinyi Culture Development Co., Ltd. plans to acquire 90% equity of Shenzhen Jinyi Jewelry Co., Ltd. for a total registered capital of CNY 1.8 billion (approximately USD 280 million) through a combination of share issuance and cash payment[126]. - The company aims to purchase 70% equity of Shenzhen Jiefu Jewelry Co., Ltd. for a total registered capital of CNY 1.127 billion (approximately USD 175 million) as part of its expansion strategy[126]. - The acquisition of 43.92% equity in Zhenbaotong (Shenzhen) Internet Technology Co., Ltd. involves a registered capital of CNY 465 million (approximately USD 72 million)[129]. - The company plans to acquire a total of 49% equity in Shenzhen Guitian Diamond Co., Ltd., with a registered capital of approximately 961.155 million yuan, through a combination of issuing shares and cash payment[135]. Financial Management - The company has committed to maintaining the independence of its operations, ensuring that key management personnel do not hold positions in other companies controlled by the parent entity[121]. - The company has guaranteed that it will not engage in activities that compete with the listed company, ensuring no direct or indirect competition from its subsidiaries[124]. - The company has undertaken to avoid and minimize related party transactions, ensuring fair pricing and compliance with legal procedures[124]. - The company has issued a commitment to maintain independent financial operations, including establishing a separate financial department and independent accounting systems[121]. Legal and Compliance - The company is involved in a legal case regarding a loan guarantee, which has been dismissed by the courts, indicating no economic liability for the company[138]. - The company has ongoing litigation cases as a defendant or respondent amounting to 70.94 million yuan, with no judgment yet, making it impossible to assess the impact on current and future profits[160]. - The company has no penalties or rectification situations during the reporting period[161]. - The company has not reported any major litigation or arbitration matters during the reporting period[155]. Corporate Governance - The company has established a comprehensive employee protection system and strictly adheres to the new Labor Law, ensuring all employees have signed labor contracts and are covered by social insurance[188]. - The company actively participated in social responsibility initiatives, including a charity event to support underprivileged children, providing essential learning and living supplies[188]. - The company has maintained effective communication with government departments and regulatory agencies, fulfilling its responsibilities and obligations[189]. Changes in Management - The company’s independent directors resigned and were replaced on December 1, 2020[197]. - The company’s total manager resigned and a new manager was appointed on December 1, 2020[197].