Vats Liquor Chain Store Management Joint Stock (SZ:300755)2021-04-12 16:00Profit Distribution - The company reported a profit distribution plan based on a base of 416,798,400, proposing a cash dividend of 1.8 yuan per 10 shares (including tax) and no bonus shares[9]. - The cash dividend policy remains unchanged, with a total cash dividend amount of ¥75,023,712, representing 100% of the distributable profit[172]. - Each 10 shares will receive a cash dividend of ¥1.8, with a total of 416,798,400 shares as the basis for the distribution plan[172]. - The proposed cash dividend is RMB 1.80 per 10 shares (including tax), amounting to a total distribution of RMB 75,023,712.00 (including tax), which represents 20.10% of the net profit attributable to shareholders[176]. - In 2019, the cash dividend was RMB 1.60 per 10 shares, totaling RMB 66,687,744.00, which was 20.88% of the net profit[176]. - In 2018, the cash dividend was RMB 2.00 per 10 shares, totaling RMB 46,310,933.40, which was 20.59% of the net profit[176]. - The company has committed to distributing at least 80% of profits as cash dividends during the mature stage of development[175]. - The company plans to maintain its dividend policy in the future, reflecting a commitment to returning value to shareholders[175]. - The company aims to maintain a stable and continuous profit distribution policy, focusing on reasonable returns for investors and the sustainable development of the company[186]. - The company will ensure that any cash dividends are distributed within two months after the shareholders' meeting decision[189]. - The company will communicate with shareholders, especially minority shareholders, to gather their opinions before the dividend distribution plan is submitted for approval[189]. - The company may adjust its profit distribution policy in response to significant changes in its operational status or external factors like natural disasters[189]. - The company will ensure that any retained earnings are used for investments that are expected to yield returns[189]. - The company will provide online voting options for shareholders during the dividend distribution plan approval process[189]. - The company commits to distributing at least 20% of the annual distributable profits as cash dividends in the three years following its public offering[195]. - The board is obligated to propose cash dividend plans based on the distributable profits, and any unallocated profits must have a clear usage plan[195]. - The company aims to actively increase the cash dividend ratio as its profitability improves and financial pressures decrease[195]. - The company will not issue stock dividends if no cash dividends are distributed in a given year[195]. - The company emphasizes the importance of protecting shareholder rights in its profit distribution policies[195]. - The board must disclose reasons for not proposing cash dividends if profits are available, including the intended use of retained funds[195]. - The company will ensure compliance with regulatory requirements regarding cash dividend policies and their execution[195]. - Independent directors and minority shareholders are encouraged to provide suggestions and oversight regarding dividend policies[195]. - The company will disclose the cash dividend amounts and their ratios to net profits for the past three years in its annual report[195]. - The company will deduct any cash dividends allocated to shareholders who have improperly occupied company funds during profit distribution[195]. Financial Performance - The company’s financial performance and strategic initiatives will be closely monitored to navigate the competitive landscape effectively[5]. - The company’s operating revenue for 2020 was ¥4,941,441,556.43, representing a 32.20% increase from ¥3,737,888,401.79 in 2019[25]. - The net profit attributable to shareholders for 2020 was ¥373,168,102.61, up 16.82% from ¥319,444,153.93 in 2019[25]. - The net cash flow from operating activities increased by 200.49% to ¥324,993,267.10 in 2020, compared to ¥108,155,641.70 in 2019[25]. - The basic and diluted earnings per share for 2020 were both ¥0.90, a 15.38% increase from ¥0.78 in 2019[25]. - Total assets at the end of 2020 were ¥4,320,258,037.84, a 4.39% increase from ¥4,138,472,440.33 at the end of 2019[25]. - The net assets attributable to shareholders at the end of 2020 were ¥2,816,265,452.92, up 12.31% from ¥2,507,611,114.43 at the end of 2019[25]. - The company reported a total of ¥30,800,608.54 in non-recurring gains and losses for 2020, compared to ¥23,815,805.58 in 2019[33]. - The company achieved a revenue of 494,144.16 million yuan, representing a year-on-year growth of 32.20%[100]. - The net profit for the period was 38,023.40 million yuan, with a year-on-year increase of 18.48%, and the net profit attributable to shareholders was 37,316.81 million yuan, up by 16.82%[100]. - The revenue from the liquor industry accounted for ¥4,878,030,223.68, which is 98.72% of total revenue, with a year-on-year growth of 30.99%[108]. - The sales volume of baijiu reached 3,985,099.82 liters, an increase of 18.39% from 3,365,962.12 liters in 2019[113]. Market Trends and Competition - The company faces intensified market competition due to the rise of e-commerce and diversified retail formats, impacting traditional liquor distribution[5]. - The liquor market has experienced significant price fluctuations, with prices rising during traditional peak sales seasons like Mid-Autumn and Spring Festival[6]. - The company emphasizes the importance of brand reputation in the liquor industry, as the market is fragmented with many participants of varying credibility[9]. - The company acknowledges risks related to counterfeit products in the liquor market, which can disrupt market order and harm industry reputation[9]. - The company is adapting to changes in consumer behavior, with a shift towards business and personal consumption driving the evolution of liquor consumption patterns[7]. - The alcohol distribution industry in China is experiencing significant growth, driven by rising incomes and urbanization, providing a broad market opportunity[42]. - The production of liquor in China has shown a significant concentration trend, with the output of the liquor industry peaking at 1,358.4 million liters in 2016, but has since contracted due to market consolidation[43]. - The demand for premium liquor has rebounded, with a notable increase in consumer preference for high-quality brands, providing a broad market space for liquor sales[51]. - The competitive landscape for imported wines has shifted towards brand and price competition, with strong brand recognition becoming crucial for market share[46]. - The competitive landscape in the liquor industry is shifting towards consolidation, with market share increasingly concentrated among leading brands[98]. Consumer Behavior and Demographics - The company is focused on expanding its market presence and enhancing its product offerings in response to changing consumer preferences[5]. - Per capita disposable income in China increased from CNY 18,311 in 2013 to CNY 32,189 in 2020, leading to a 6.46% annual growth in per capita spending on food, tobacco, and alcohol[47]. - The urbanization rate in China increased from 19.4% in 1980 to 60.6% in 2019, with projections suggesting it could reach 65.5% by 2025, driving higher consumption of alcoholic beverages[47]. - The consumer demographic for wine is primarily concentrated in the 18-35 age group, with 49% of wine consumers aged 26-35 and 34% aged 18-25[52]. - The company reported a 5.1% growth in food and beverage consumption, with alcoholic beverages becoming the largest consumption category, accounting for 30.2% of per capita consumption expenditure[98]. Marketing and Sales Strategy - The company operates a comprehensive marketing network for premium alcoholic beverages, focusing on quality, authenticity, and service[39]. - The company has established long-term partnerships with upstream alcohol producers, enhancing its product offerings and market presence[41]. - The company has built a comprehensive multi-channel marketing network, including chain stores, retail outlets, and e-commerce, which supports its leading industry position[78]. - The company aims to expand its brand store network nationwide, continuously achieving historical highs in the number of brand stores[78]. - The company has established a nationwide direct supply network, enhancing efficiency by eliminating traditional distribution intermediaries, covering over 23 provinces and 3 municipalities with 36 warehouses[82][92]. - The company has entered over 20 major supermarkets, significantly expanding its KA channel presence, which is crucial for capturing consumer demand in the upgrading market[83]. - The company has developed a comprehensive product line with nearly 4,000 types of products, including well-known brands like Moutai and Wuliangye, catering to diverse consumer preferences[87][90]. - The company has implemented a flat sales network that directly connects to retail points, reducing procurement costs for clients and increasing customer loyalty[82][83]. - The company has launched an O2O platform and WeChat mini-program for online sales, enhancing its digital presence and customer engagement[83]. - The company has increased its marketing efforts, achieving significant brand exposure through media investments and product tasting events[104]. - The company focused on enhancing customer loyalty through improved service experiences and increased engagement with marketing personnel[103]. - The company’s marketing efforts emphasized promoting a healthy drinking lifestyle and rational consumption, contributing to brand recognition and customer retention[94]. Operational Efficiency and Development - The company is actively pursuing business transformation to adapt to the evolving liquor distribution environment[5]. - The company has a robust talent development mechanism, fostering a skilled workforce that supports rapid growth[84]. - The company has established a traceability system for its products using logistics code information systems and anti-counterfeiting measures[122]. - The company has successfully integrated logistics services, enhancing efficiency and reducing the necessity for self-built logistics systems[147]. - The company is focusing on modern information technology to improve service quality and customer satisfaction in logistics[147]. - The company has optimized its logistics and information systems, enhancing customer experience and satisfaction through partnerships with major logistics firms[104]. - The company has significantly increased its marketing personnel, which may lead to a short-term rise in labor costs and sales expense ratio, but is expected to drive future growth[104]. - The company has established stable partnerships with renowned distilleries, ensuring a reliable supply of products and reducing procurement costs[91]. - The company has launched the "Hua Zhi You Xuan" e-commerce platform, which has become a new growth point for its performance since its launch[122]. - The company has shifted its product R&D center's implementation location from Diqing to Beijing based on market needs[153]. - The company has increased its R&D personnel to 95, representing 7.84% of the total workforce, up from 3.25% the previous year[123]. - Research and development investment amounted to ¥21,748,137.64, which is 0.44% of operating revenue, up from 0.32% in the previous year[123]. Challenges and Risks - The company acknowledges risks related to counterfeit products in the liquor market, which can disrupt market order and harm industry reputation[9]. - The company has not sold any major assets or equity during the reporting period[157]. - The marketing network construction project was terminated, and remaining funds were redirected to supplement working capital due to changing market conditions and the impact of the pandemic[146]. - The company terminated the marketing network construction project due to obstacles caused by the COVID-19 pandemic, with a cumulative investment of RMB 25.215 million in the project[148].