KORRUN(SZ:300577)2021-03-15 16:00Financial Performance - In 2020, the net profit attributable to shareholders was 77.95 million RMB, a decrease of 65.51% year-on-year, consistent with industry trends [5]. - The company's operating revenue for 2020 was ¥1,943,814,261.07, a decrease of 27.87% compared to ¥2,694,818,584.84 in 2019 [17]. - Net profit attributable to shareholders was ¥77,954,120.31, down 65.51% from ¥226,004,183.29 in the previous year [17]. - The net profit after deducting non-recurring gains and losses was ¥56,399,059.28, a decline of 72.96% from ¥208,544,631.11 in 2019 [17]. - The company's main business revenue was CNY 1,913.67 million, a decrease of 26.57% year-on-year [50]. - The company's OEM manufacturing business revenue was CNY 1,180.74 million, a decrease of 10.48% year-on-year [50]. - The brand operation business revenue was CNY 732.93 million, down 43.06% compared to the previous year [50]. - The company reported a basic earnings per share of ¥0.36, a decrease of 65.38% from ¥1.04 in 2019 [17]. - The weighted average return on equity was 8.04%, down 22.73% from 30.77% in the previous year [17]. Strategic Initiatives - The company implemented cost reduction and efficiency enhancement measures, expanded product categories, and explored new channels such as live streaming sales to mitigate the impact of the pandemic [5]. - The company remains confident in future development, leveraging advantages in "internet operations + deep supply chain management" to strengthen and grow the business [6]. - The company is focusing on enhancing its internal governance systems, including talent, information, and financial management, to ensure long-term healthy development [5]. - The company is committed to improving its internal capabilities and governance structures to adapt to market changes and challenges [5]. - The company emphasizes deep supply chain management and has established stable partnerships with renowned suppliers, enhancing its competitive edge in the market [38]. - The company is focusing on cost reduction and efficiency improvement strategies to mitigate the impact of the pandemic [49]. Investment and Acquisitions - The company acquired a 28.70% stake in Shanghai Jiale, a core supplier for Uniqlo, expanding its manufacturing capabilities into the textile and apparel sector [27]. - Long-term equity investments increased by 1441.02% at the end of 2020 compared to the end of 2019, primarily due to investments in Anhui Taihe Intelligent Travel Equity Investment Partnership and Shanghai Jiale Co., Ltd. [40]. - The company has completed the acquisition of textile and apparel manufacturing assets for 325,729,769.52 CNY, which is 28.70% of the total investment [94]. - The company plans to expand its overseas production capacity, with the first phase of the Indonesia Baodao Industrial Park expected to deliver 118 production lines by December 2021 [69]. Revenue and Sales Channels - The company has established partnerships with major platforms such as JD.com and Amazon, enhancing its online sales channels [75]. - The company reported a significant increase in sales volume, reaching 10,872.98 million pieces, a 68.74% increase year-on-year, primarily due to the addition of medical protective products [59]. - Online sales revenue reached ¥212,303,029.83, with a year-over-year decrease of ¥1,553,925.01, and a gross margin of 35.74%, which is an increase of 3.73% compared to the previous year [72]. - Distribution sales generated ¥520,628,199.19, down by ¥552,775,914.74 year-over-year, with a gross margin of 24.62%, reflecting a 1.61% increase from the previous year [72]. Shareholder Returns - The profit distribution plan approved by the board is to distribute a cash dividend of 1.05 RMB per 10 shares (including tax) to all shareholders [6]. - The total number of shares for the profit distribution plan is based on 239,423,102 shares [6]. - The cash dividend amount for 2020 represents 32.25% of the net profit attributable to ordinary shareholders [132]. - The company has maintained a cash dividend payout ratio of 100% for the current profit distribution [129]. Market Outlook and Challenges - The pandemic has accelerated the consolidation of the industry and the elimination of backward production capacity, presenting opportunities for domestic manufacturing and brands [6]. - The company faces risks related to high customer concentration, which could impact profitability if major clients reduce orders [117]. - The company is exposed to raw material price fluctuations and rising labor costs, prompting cost management strategies and the establishment of production bases in lower-cost regions [117]. - The company is actively monitoring the impact of the pandemic on its operations and market conditions [120]. Corporate Governance and Compliance - The company has implemented a transparent information disclosure process to enhance shareholder communication [175]. - The company has held multiple compliance training sessions to enhance corporate governance and protect investor rights [175]. - The company has not reported any significant non-equity investments during the reporting period [95]. - The company has no major litigation or arbitration matters during the reporting period [147]. Research and Development - The company has established a dedicated design and R&D center, focusing on product innovation based on user insights and brand positioning [30]. - The company reported a total R&D investment of ¥72,684,448.31, accounting for 3.09% of total revenue, with a total of 221 R&D personnel [80]. - Research and development efforts have led to the introduction of two new product lines, expected to contribute an additional 200 million RMB in revenue [124]. Social Responsibility - The company donated over 20,000 N95 masks and 1 million RMB in cash to hospitals in Hubei province during the COVID-19 pandemic [176]. - The company actively participated in social responsibility initiatives during the pandemic, including donations of medical supplies [176].