RYC(SZ:003010)2021-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2021 was CNY 597,748,157.99, representing a 7.81% increase compared to CNY 554,456,169.20 in the same period last year[20]. - The net profit attributable to shareholders of the listed company decreased by 5.81% to CNY 39,826,763.99 from CNY 42,281,999.57 in the previous year[20]. - The net profit after deducting non-recurring gains and losses was CNY 30,824,867.16, down 19.34% from CNY 38,217,171.36 in the same period last year[20]. - The net cash flow from operating activities was negative at CNY -76,055,498.05, a decline of 800.17% compared to CNY 10,862,461.11 in the previous year[20]. - Basic and diluted earnings per share decreased by 29.37% to CNY 0.327 from CNY 0.463 in the previous year[20]. - The weighted average return on net assets was 3.72%, down 3.77% from 7.49% in the previous year[20]. - Total assets at the end of the reporting period were CNY 1,204,115,328.59, an increase of 2.63% from CNY 1,173,272,959.62 at the end of the previous year[20]. - Net assets attributable to shareholders of the listed company increased by 2.82% to CNY 1,079,339,957.35 from CNY 1,049,703,261.62 at the end of the previous year[20]. Revenue and Sales - In the first half of 2021, the company achieved a sales revenue of 597.75 million yuan and a net profit of 39.65 million yuan, with a year-on-year net profit growth of 22% after excluding the impact of self-owned brand investments[64]. - Retail revenue grew by 26.89% to CNY 295,690,249.34, accounting for 49.47% of total revenue[93]. - Operating service revenue increased by 1.99% to CNY 71,234,167.78, with a gross margin of 65.56%[93]. - Brand planning business revenue surged by 41.12% to CNY 36,850,628.27, while its cost of sales rose by 58.05% due to increased advertising expenditures[94][95]. - Domestic revenue constituted 78.54% of total revenue, increasing by 16.15% to CNY 469,488,656.50, while overseas revenue decreased by 14.64% to CNY 128,259,501.49[93]. Operational Strategy - The company operates primarily in e-commerce services, focusing on online agency operations, channel distribution, and brand planning[28]. - The online agency business includes brand positioning, store operation, integrated marketing, data mining, and supply chain management[29]. - The company aims to enhance brand visibility and economic benefits for its clients while expanding their presence in the Chinese market[28]. - The company is focusing on digital transformation, which is expected to drive the brand e-commerce service industry to a scale of 20.4 trillion yuan by 2025, with a B2C e-commerce penetration rate of 13.7%[55]. - The company is actively expanding its service presence on emerging platforms like Pinduoduo, Douyin, and Kuaishou to enhance its competitive edge[65]. Investment and R&D - The company’s R&D investment increased by 41.46% to ¥16,611,746 from ¥11,742,788, primarily due to the increase in R&D projects[90]. - Ongoing research and development efforts are aimed at enhancing product features, with an investment of 100 million yuan allocated for new technology initiatives[141]. - The company is exploring potential mergers and acquisitions to strengthen its competitive position, with a budget of 500 million yuan set aside for strategic investments[141]. Shareholder and Dividend Policy - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company plans to distribute cash dividends amounting to no less than 10% of the distributable profits for the year if there are no significant investment plans or major cash expenditures[153]. - The company aims to maintain a minimum cash dividend ratio of 80% for mature stages without major expenditures, 40% for mature stages with significant expenditures, and 20% for growth stages with major expenditures[153]. - The board will review the shareholder return plan at least once every three years, considering the company's actual situation and feedback from independent directors and shareholders[154]. Risks and Challenges - The company faces risks related to brand authorization management, which could impact business development if partnerships are not maintained[116]. - The company is exposed to risks from fluctuations in e-commerce platform traffic, which could affect operational costs and sales performance[117][118]. - The company is at risk from international trade friction and exchange rate fluctuations, which could adversely affect its financial performance[122]. Compliance and Governance - The company confirmed it is not classified as a key pollutant discharge unit and has not faced any administrative penalties related to environmental issues during the reporting period[132]. - The company’s management is focused on maintaining compliance with the Shenzhen Stock Exchange regulations[138]. - The company has committed to timely disclosure of any inability to fulfill its commitments due to uncontrollable factors[149]. Market Position and Growth - The company has been recognized as a "Five-Star Service Provider" on Tmall for several consecutive years, indicating its strong market position and service capabilities[63]. - User data showed a growth in active users, reaching 10 million by the end of June 2021, which is a 15% increase compared to the previous year[141]. - The company is expanding its market presence, targeting an increase in market share by 5% in key regions over the next year[141].