MCLON(SZ:300945)2021-04-14 16:00Financial Performance - The company's operating revenue for 2020 was ¥808,635,446.78, a decrease of 9.81% compared to ¥896,602,104.77 in 2019[5]. - The net profit attributable to shareholders for 2020 was ¥63,649,309.11, down 1.95% from ¥64,912,054.72 in 2019[5]. - The net profit after deducting non-recurring gains and losses was ¥56,235,431.02, a decrease of 7.65% from ¥60,891,849.80 in 2019[5]. - The total assets at the end of 2020 were ¥606,285,723.44, an increase of 12.27% from ¥540,027,457.47 at the end of 2019[5]. - The net assets attributable to shareholders at the end of 2020 were ¥538,898,590.44, up 13.39% from ¥475,249,281.33 at the end of 2019[5]. - The total revenue for the reporting period was 808.64 million yuan, a decrease of 9.81% compared to the previous year[71]. - The net profit attributable to the parent company was 63.65 million yuan, down 1.95% year-on-year, while the net profit after deducting non-recurring gains and losses was 56.24 million yuan, a decrease of 7.65%[71]. - The company's total assets at the end of the reporting period were 606.29 million yuan, an increase of 12.27% from the beginning of the period[68]. - The company's total liabilities were 67.39 million yuan, with a debt-to-asset ratio of 11.11%[68]. - The gross profit margin for the reporting period was 28.21%, an increase of 2.43 percentage points compared to the previous year[72]. Cash Dividends and Profit Distribution - The company plans to distribute a cash dividend of 0.95 RMB per 10 shares to all shareholders, based on a total of 204,000,000 shares[5]. - The profit distribution plan for 2020 is to distribute a cash dividend of 0.95 yuan (including tax) for every 10 shares based on a total share capital of 204,000,000 shares, with the remaining undistributed profits carried forward to the next year[163]. - In 2020, the total cash dividend distributed amounted to 19,380,000 yuan, which represents 30.45% of the net profit attributable to the company's ordinary shareholders[165]. - The company did not distribute any profits in 2019, while in 2018, it distributed a cash dividend of 2.7 yuan for every 10 shares, totaling 41,310,000 yuan[164]. - The company is in a growth phase and has significant capital expenditure plans, with a minimum cash dividend ratio of 20% in profit distribution[163]. - The company plans to carry forward the remaining undistributed profits to the next year, indicating a focus on reinvestment[163]. - The company has committed to avoiding any related party transactions that could harm its interests or those of its shareholders[168]. - The company commits to a stable profit distribution policy, prioritizing cash dividends, with a minimum of 30% of the average distributable profit over three consecutive years to be distributed in cash[174]. Market and Consumer Trends - The company reported a significant increase in consumer demand for jewelry, particularly among young consumers aged 20-39, who are driving a shift towards daily jewelry purchases[41]. - The jewelry market is expected to see a shift towards shopping complexes and department stores, as these venues provide better consumer experiences compared to online shopping[47]. - The wedding-related jewelry market remains a stable growth area, with gold and diamond jewelry being primary products due to their essential role in traditional marriage customs[44]. - The company anticipates that the increasing purchasing power of women will significantly boost jewelry consumption, as they become a key consumer demographic[43]. - The company aims to adapt to the evolving consumer preferences, focusing on personalized and trendy designs to meet the demands of younger consumers[46]. - The jewelry industry is experiencing a trend towards daily consumption, moving away from traditional views of jewelry as solely a store of value[45]. Operational Strategy and Expansion - The company operates multiple wholly-owned subsidiaries across various regions, including Ningbo, Shanghai, Jiangsu, Hubei, Tibet, and Anhui[8]. - The company has established a comprehensive retail network, including self-operated stores and franchised outlets[10]. - The company has established a "self-operated + franchise" sales network, opening self-operated stores in key urban areas and collaborating with franchisees, enhancing marketing channels[53]. - The company plans to enhance management and standardization in its operational model, which combines self-operated and franchised sales[36]. - The company aims to expand its market presence by establishing self-operated stores primarily in key cities of Zhejiang, Jiangsu, Hubei, Anhui, and Hunan[136]. - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share in the region by 2023[169]. E-commerce and Digital Strategy - The e-commerce business revenue reached 99.78 million yuan, a significant increase of 300.13% year-on-year, contributing 12.34% to total revenue[71]. - The company plans to continue expanding its e-commerce efforts, particularly through platforms like Tmall and Weimall, to mitigate the impact of the pandemic on physical store sales[92]. - The gross profit margin for e-commerce was 46.45%, reflecting a 27.93% increase year-over-year, while the gross profit margin for direct stores was 37.98%[105]. - The company has built a new retail model utilizing big data and information technology, improving data transparency and operational efficiency[61]. - The company has completed the construction of its new retail platform, facilitating online and offline sales integration and real-time communication with consumers[63]. Risk Factors and Challenges - The company has outlined potential risk factors that may affect its future operations in the section discussing future development prospects[5]. - The company faces risks from fluctuations in raw material prices, particularly gold and platinum, which could impact profit margins and inventory valuation[152]. - The company is expanding its market presence outside Zhejiang province, where its revenue from these areas is currently low, posing a risk to its overall performance[157]. Corporate Governance and Compliance - The company emphasizes the importance of accurate financial reporting and has declared that the financial report is true, accurate, and complete[4]. - The company is committed to enhancing its corporate governance practices, ensuring compliance with all regulatory requirements to protect investor interests[169]. - The company will ensure that any changes to the profit distribution policy are transparent and comply with legal requirements[176]. - The company will actively communicate with shareholders, especially minority shareholders, regarding profit distribution proposals and ensure their opinions are considered[176]. Research and Development - Research and development expenses increased by 18.74% to ¥1,049,357.79, representing 0.13% of operating revenue[117]. - The number of R&D personnel increased to 7, accounting for 1.03% of the total workforce[117]. - Investment in new product development increased by 25% in 2020, focusing on innovative jewelry designs and sustainable materials[170]. Awards and Recognition - The company has received multiple awards, including "China Jewelry Industry Famous Brand" and "2020 JNA Awards Retailer of the Year," reflecting its strong brand reputation[52].