IDEAL(SZ:002740)2021-07-30 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[7]. - 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 investment loss of CNY 166,788,541.62, primarily due to substantial losses from Dapan Jewelry[83]. - The company reported a total of CNY 20,816 million in capital increase for its wholly-owned subsidiary, indicating a 51% increase in self-owned capital[90]. Dividends and Shareholder Returns - The company plans not to distribute cash dividends, issue bonus shares, or convert reserves into share capital for the year[10]. - The company did not distribute cash dividends, issue bonus shares, or convert capital reserves into share capital, maintaining a focus on operational stability[115]. - The company has not proposed any cash dividend distribution plans for 2019 and 2020, despite having positive distributable profits[115]. Internal Controls and Governance - The company has identified significant internal control deficiencies, which may lead to serious deviations from control objectives[7]. - The company has committed to actively promoting the implementation of corrective measures for identified deficiencies in internal controls[8]. - The company’s management has stated that the financial report is true, accurate, and complete[4]. - The company has engaged a qualified accounting firm to conduct impairment testing on the equity interests and issue an impairment testing report[118]. - The board of directors is taking measures to address the issues raised in the audit report to protect shareholder interests[131]. Legal Matters and Litigation - 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 addressed over 30 litigation cases and reached settlements with creditors during the reporting period[46]. - The company has ongoing litigation involving a total of 4,250.53 million related to equity transfer disputes, which is still under trial[140]. - The company has faced a total of 2,344.16 million in claims from Shenzhen Yashivi Jewelry Co., which have been mediated but remain unresolved[139]. Business Operations and Strategy - The company has shifted its business model to include online sales through platforms like Tmall and JD.com, alongside its physical store network[31]. - The company has actively expanded online sales channels, including live streaming and social media marketing, to enhance consumer experience[38]. - The company plans to focus on market orientation, profit orientation, and customer demand orientation to ensure stable and healthy development in the future[48]. - The company aims to improve operational efficiency and fund utilization by terminating the non-public fundraising project and reallocating funds[99]. Store Operations and Franchise - The company operated a total of 947 stores, including 914 franchise stores and 33 self-operated stores[31]. - 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 4.87%[56]. - The company has established 914 franchise stores and 33 self-operated stores, totaling 947 stores[41]. - The company added 47 franchise stores during the reporting period but closed 265, resulting in a net decrease of 218 franchise stores[54]. 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 value of gold inventory, which dropped by 64.10% to 2,384.72 million yuan, compared to 6,642.14 million yuan at the beginning of the period[61]. - The company procured 1,384,844.67 grams of gold through spot trading, accounting for 100% of its gold procurement[36]. Research and Development - Research and development investment for the year was CNY 1,583,825.83, which is 0.10% of the company's operating revenue, a decrease of 55.73% from the previous year[77]. - The number of R&D personnel decreased by 45.71% to 19, reflecting a reduction in R&D capacity due to financial constraints[78]. Shareholder Structure and Changes - 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[182]. - The largest shareholder, Su Riming, holds 14.15% of the shares, totaling 64,243,174 shares, with a decrease of 610,785 shares during the reporting period[182]. - The company reported no changes in the controlling shareholder or actual controller during the reporting period[185][186]. Market Trends and Consumer Focus - 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 develop new products suitable for online consumption while maintaining its core product lines in wedding and daily wear jewelry[112]. - The company is focusing on integrating supply chain resources to build a complete live streaming industry chain[111]. Financial Challenges and Future Outlook - The company faced challenges in 2019 due to a complex macroeconomic environment, leading to increased financing difficulties and operational impacts[99]. - The company aims to maximize shareholder interests by enhancing the efficiency of fundraising usage and reducing financial costs[102]. - The company plans to control costs and expenses effectively, focusing on reducing administrative and personnel costs while improving work efficiency[109].