IDEAL(SZ:002740)2021-04-29 16:00Financial Performance - In 2019, the company's operating profit was revised from CNY 135.44 million to CNY -236.22 million, and the net profit attributable to shareholders was revised from CNY 57.66 million to CNY -307.72 million[6]. - The company's operating revenue for 2020 was ¥1,514,315,524.37, a decrease of 21.99% compared to ¥1,941,109,415.25 in 2019[22]. - The net profit attributable to shareholders was -¥1,570,597,150.79, representing a 424.06% increase in losses compared to -¥299,697,319.04 in 2019[22]. - The net cash flow from operating activities was -¥37,552,214.31, which is a 12.23% increase in cash outflow compared to -¥33,458,999.13 in 2019[22]. - The total assets at the end of 2020 were ¥2,643,520,347.50, a decrease of 41.59% from ¥4,525,654,111.93 at the end of 2019[22]. - The net assets attributable to shareholders decreased by 63.34% to ¥908,790,294.37 from ¥2,478,970,365.38 in 2019[22]. - The company reported a significant loss in the fourth quarter with a net profit of -¥1,597,526,715.06[26]. - The company reported a net profit of 54.06 million yuan for 2020, a decrease from the previous year's profit of 80.82 million yuan, indicating a decline of approximately 33%[134]. Dividends and Capital Management - The company plans not to distribute cash dividends or bonus shares, nor to increase capital using reserves[10]. - In 2020, the company did not distribute cash dividends, nor did it issue bonus shares or convert capital reserves into share capital[115]. Internal Control and Audit - The company has identified significant internal control deficiencies that could lead to serious deviations from control objectives[6]. - The company has acknowledged the need for corrective measures regarding its internal control deficiencies and will actively supervise their implementation[6]. - The company is under the audit of Da Hua Accounting Firm, which issued a qualified opinion on its financial report[5]. - The company received a qualified audit opinion from Da Hua Accounting Firm, which reflects concerns regarding the financial situation and will take measures to address these issues[138]. Business Operations - The company has not changed its main business since its listing, and there have been no changes in its controlling shareholders[20]. - The company has not made any significant changes to its main business operations during the reporting period[31]. - The company has shifted its business model to include online sales through platforms like Tmall and JD.com, alongside physical stores[31]. - The company has brands such as "IDEAL," "CEMNI," and "Kela Mei," with a focus on diamond-set jewelry and gold products[31]. - The company operated a total of 947 stores, including 914 franchise stores and 33 self-operated stores[31]. - The company has established 914 franchise stores and 33 self-operated stores, totaling 947 stores[41]. - The company closed 278 stores during the reporting period, which accounted for 8.70% of the total revenue, with self-operated stores contributing 3.83% and franchise stores contributing 4.87%[56]. Revenue Breakdown - The company's total revenue for the reporting period was CNY 1,489,557,782.90, with a gross margin of 19.07%[34]. - Revenue from franchise sales amounted to CNY 356,825,694.49, with a gross margin of 14.50%[34]. - Revenue from distribution sales reached CNY 910,490,489.66, with a gross margin of 14.02%[34]. - Revenue from self-operated sales was CNY 222,241,598.75, achieving a gross margin of 47.07%[34]. - The revenue from finished diamonds surged by 219.86% to ¥253.88 million, up from ¥79.37 million in 2019[66]. - Revenue from the South China region increased by 8.82% to ¥651.02 million, while the East China region saw a decline of 36.56% to ¥361.21 million[67]. Inventory and Procurement - The company's inventory at the end of the reporting period was valued at 170,205.53 million yuan, with a provision for inventory impairment of 43,072.00 million yuan, resulting in a net inventory value of 127,133.53 million yuan[57]. - The company reported a significant decrease in the inventory of gold, down 64.10% to 2,384.72 million yuan, and diamonds, down 72.57% to 3,941.59 million yuan[61]. - The company procured 1,384,844.67 grams of gold through spot trading, accounting for 100% of its gold procurement[36]. - The company engaged in external procurement for 93.44% of its production, with a total production cost of CNY 118,258.59 million[38]. Legal and Litigation Matters - The company is facing a lawsuit where it is required to return CNY 30.31 million, with the first-instance judgment stating that the company is not liable[7]. - The company has faced over 30 litigation cases during the reporting period, successfully reaching settlements with creditors[46]. - The company lost a lawsuit involving a loan dispute with Shenzhen Dehao Microfinance Co., amounting to 1,408.32 million yuan, and has not fully paid the judgment[146]. - The company has ongoing litigation with a total claim of 4,250.53 million yuan related to a stock transfer dispute, which has not yet been heard[148]. Strategic Planning and Future Outlook - The company plans to optimize its internal management system and reduce costs while ensuring cash flow safety amid macroeconomic uncertainties[48]. - The company has committed to a market-oriented and profit-oriented approach to strengthen its core business advantages[48]. - The company plans to enhance its brand image and product packaging to appeal to younger consumers, reflecting a shift in consumer demand[111]. - The company aims to expand its live streaming business on platforms like Douyin, Kuaishou, and Taobao, with plans to build professional live streaming studios in Shenzhen and Hangzhou[111]. - The company plans to enhance its overall strategic planning and adapt to market changes to drive the "Internet +" ecosystem forward[99]. Shareholder and Equity Matters - The actual controller's shares have been 100% frozen, with no details on the legal disputes involved[150]. - Major shareholder Su Riming holds 14.15% of the company with 64,243,174 shares, which includes 48,640,469 restricted shares[189]. - The company has four major shareholders who are acting in concert, collectively holding 114,656,582 shares, representing 25.25% of the total shares[190]. - The total number of ordinary shareholders at the end of the reporting period was 34,862, an increase from 31,006 at the end of the previous month[189]. Compensation and Performance Commitments - The cumulative net profit commitment for the period from 2017 to 2020 is at least 251 million yuan, with specific annual targets of 40.5 million yuan for 2017, 97.5 million yuan for 2017-2018, 170.5 million yuan for 2017-2019, and 251 million yuan for 2017-2020[121]. - If the actual cumulative net profit does not meet the commitment, the compensating party must compensate the company based on the formula: total compensation amount = (cumulative committed net profit - cumulative actual net profit) / cumulative committed net profit × transaction price[121]. - The company lost effective control over its subsidiary, Dapan Jewelry, starting from April 2020, and will pursue legal action against former shareholders for performance commitments[130]. Miscellaneous - The company has not engaged in any securities or derivative investments during the reporting period[92][93]. - The company has not sold any significant assets during the reporting period[104]. - The company has not disposed of any major equity interests during the reporting period[105].