FIYTA(SZ:200026)2022-03-09 16:00Financial Performance - The company's operating revenue for 2021 was CNY 5,243,733,540.93, representing a 23.57% increase compared to CNY 4,243,439,952.59 in 2020[18]. - The net profit attributable to shareholders for 2021 was CNY 387,840,282.95, a 31.87% increase from CNY 294,115,156.04 in 2020[18]. - The net profit after deducting non-recurring gains and losses was CNY 369,418,754.83, up 37.28% from CNY 269,095,012.41 in 2020[18]. - The net cash flow from operating activities reached CNY 547,249,108.45, an increase of 44.69% compared to CNY 378,210,505.87 in 2020[18]. - The basic earnings per share for 2021 was CNY 0.9036, reflecting a 33.59% increase from CNY 0.6764 in 2020[18]. - The total assets at the end of 2021 were CNY 4,110,579,952.49, a 2.29% increase from CNY 4,018,712,700.18 at the end of 2020[18]. - The net assets attributable to shareholders at the end of 2021 were CNY 3,013,232,642.53, a 7.62% increase from CNY 2,799,948,388.09 at the end of 2020[18]. - The weighted average return on equity for 2021 was 13.39%, up from 10.78% in 2020[18]. - The company reported no significant differences in financial indicators compared to previously disclosed quarterly and semi-annual reports[20]. Revenue and Sales - The company achieved a revenue of 524,373,540.93 CNY, representing a year-on-year growth of 23.57%[32]. - The company's total operating income from the watch business was 4,923,280,724.48 CNY, accounting for 93.89% of total revenue, with a year-on-year growth of 23.98%[39]. - The company’s total revenue for the watch business reached approximately ¥4.92 billion, representing a year-on-year increase of 23.98%[42]. - The average customer transaction value increased by 12% year-on-year, while the average single-store output for established stores rose by 27.93%[32]. - The company’s online and offline integration efforts led to a significant increase in repeat purchases and potential customer transactions, contributing over 50% to total revenue[33]. Market Presence and Innovation - The company has established a global sales network with over 3,000 retail outlets across more than 30 countries and regions, enhancing its market presence[29]. - The company has accumulated a total of 611 patent applications, with 566 patents granted, showcasing its commitment to innovation and technology[30]. - The domestic watch consumption market has seen a compound annual growth rate (CAGR) of over 6% over the past five years, indicating robust growth potential[23]. - The export value of Swiss watches to mainland China has experienced a CAGR of nearly 20% over the past five years, highlighting the increasing demand for high-end watches[23]. - The company aims to enhance its digital transformation, achieving full coverage of online and offline self-operated stores to improve customer service[30]. Subsidiaries and Investments - The company established a wholly-owned subsidiary, Shenzhen Xunhang Precision Technology Co., Ltd., during the reporting period[47]. - The subsidiary Shenzhen Xunhang Precision Technology Co., Ltd. is expected to enhance the company's long-term development and efficiency in the smart wearable and precision technology sectors[61]. - The subsidiary Hengdeli World Watch Center (Hainan) Co., Ltd. is anticipated to positively impact the company's long-term growth and profitability in luxury watch retail[61]. - The company reported a net profit of RMB 289 million from its subsidiary Hengdeli World Watch Center, contributing significantly to overall profitability[61]. Corporate Governance and Management - The company continued to improve its corporate governance structure in 2021, adhering to the requirements of the Company Law and Securities Law, with no significant discrepancies from regulatory standards[68]. - The board of directors consists of nine members, including three independent directors, and is responsible for strategic decision-making and risk management[69]. - The company maintains a clear separation from its controlling shareholder in terms of business, personnel, assets, and finance, ensuring independent operations[70]. - The financial department operates independently, with a robust financial accounting system and management practices, without interference from the controlling shareholder[72]. - The company has established a comprehensive production and sales system in the watch industry, ensuring no competition with its controlling shareholder[70]. Employee and Executive Changes - The company experienced a resignation of key executives, including the General Manager and several board members, due to work-related reasons[82]. - The company completed the re-election of directors and the appointment of senior management personnel in accordance with relevant laws and regulations[83]. - The company’s management team underwent significant changes, with multiple resignations impacting its governance structure[82]. - The company appointed Zhang Xuhua as the chairman of the board on September 8, 2021, following the election by the 10th board of directors[84]. Environmental and Social Responsibility - The company has reduced wastewater discharge by approximately 244 tons, achieving a reuse rate of around 37% after implementing a new heavy metal membrane filtration system[130]. - The total annual wastewater discharge is currently 406 tons, which is below the permitted limit of 650 tons[129]. - The company has successfully passed the clean production audit and received a revised pollution discharge permit from the Yangpu District Ecological Environment Bureau in October 2021[131]. - The company actively participates in poverty alleviation and rural revitalization efforts, including purchasing agricultural products from impoverished areas[136]. Financial Management and Reporting - The company’s financial statements were audited by Dahua Certified Public Accountants, receiving a standard unqualified opinion[183]. - The company confirmed that its revenue recognition policies comply with accounting standards, ensuring the accuracy and completeness of revenue reporting[189]. - The management is responsible for evaluating the company's ability to continue as a going concern, with no significant uncertainties reported[191]. - The company has implemented internal controls to prevent material misstatements in financial reporting due to fraud or error[191]. Future Outlook and Strategic Plans - The company plans to focus on high-end domestic watch brand development and digital transformation in 2022, aiming to enhance its competitive advantages[63]. - The company aims to increase its market share in mid-to-high-end channels and improve operational efficiency through a comprehensive marketing system[63]. - The company is committed to continuous investment in digitalization and technology innovation, particularly in the fields of optical communication and aerospace[64]. - The company is exploring new markets and customers in aerospace and medical devices, while also enhancing its smart wearable technology offerings[64].