君亭酒店(301073) - 2021 Q4 - 年度财报

Important Notes, Table of Contents, and Definitions Important Notes The Board of Directors, Supervisory Board, and senior management guarantee the report's accuracy, outlining key risks and approving a profit distribution plan including a cash dividend and bonus shares - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the annual report content[3] - During the reporting period, the company faced five major risks including recurring local epidemics, slower-than-expected expansion of entrusted management, rising rent and labor costs, intensified market competition, and valuation differences[4] - The profit distribution plan approved by the Board of Directors proposes a cash dividend of 5.00 CNY (tax inclusive) per 10 shares and a bonus issue of 5 shares for every 10 shares, based on a total share capital of 80,540,000 shares[5][6] Table of Contents This section outlines the annual report's overall structure, detailing its ten main chapters from company profile to financial reports - The report is divided into ten main chapters, covering key information such as company operations, financials, governance, and future outlook[8] Definitions This section defines key terms used throughout the report, including company names, financial metrics, and regulatory bodies, to ensure clear understanding - The report defines key hotel industry metrics such as GOP (Gross Operating Profit), OCC (Occupancy Rate), ADR (Average Daily Rate), and RevPAR (Revenue Per Available Room) to aid in understanding the company's operational performance[13][14] Company Profile and Key Financial Indicators Company Information This section provides Zhejiang Junting Hotel Management Co., Ltd.'s basic registration details, including stock information, legal representative, and contact addresses - The company's stock abbreviation is "Junting Hotel", stock code is 301073, and legal representative is Wu Qiyuan[17] Contacts and Contact Information This section provides contact details for the Board Secretary and Securities Affairs Representative, facilitating communication with investors and stakeholders - The Board Secretary is Shi Chenning, the Securities Affairs Representative is Zhou Zhiyi, and the contact telephone number for both is 0571-86750888[18] Information Disclosure and Document Availability This section specifies the official disclosure platforms for the annual report and its availability at the company's Board of Directors Office - The company's annual report is disclosed on the Shenzhen Stock Exchange website (http://www.szse.cn) and Juchao Information Network (http://www.cninfo.com.cn)[19](index=19&type=chunk) Other Relevant Information This section discloses information regarding the appointed accounting firm and the sponsor institution, including their details and signing professionals - The company appointed Zhong Shen Zhong Huan Certified Public Accountants (Special General Partnership) for auditing, with signing accountants Lin Jun and Huang Wei[20] - The company appointed Essence Securities Co., Ltd. as the sponsor institution, with sponsor representatives Zhan Ruifeng and Peng Guojun, for a continuous supervision period from September 30, 2021, to December 31, 2023[20] Key Accounting Data and Financial Indicators In 2021, operating revenue grew by 8.39% to 277.51 million CNY, and net profit attributable to shareholders increased by 5.28% to 36.92 million CNY, alongside significant growth in cash flow, total assets, and net assets 2021 Key Accounting Data and Financial Indicators | Indicator | 2021 (CNY) | 2020 (CNY) | YoY Change | 2019 (CNY) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 277,510,567.12 | 256,033,890.55 | 8.39% | 381,636,174.39 | | Net Profit Attributable to Shareholders | 36,917,591.44 | 35,066,042.12 | 5.28% | 72,253,788.98 | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | 31,166,098.22 | 30,357,453.08 | 2.66% | 64,563,494.53 | | Net Cash Flow from Operating Activities | 134,505,702.35 | 49,324,697.62 | 172.69% | 138,956,030.07 | | Basic Earnings Per Share (CNY/share) | 0.56 | 0.58 | -3.45% | 1.2 | | Diluted Earnings Per Share (CNY/share) | 0.56 | 0.58 | -3.45% | 1.2 | | Weighted Average Return on Net Assets | 11.32% | 12.60% | -1.28% | 30.58% | | Total Assets | 1,372,756,785.56 | 451,651,544.08 | 203.94% | 455,934,595.52 | | Net Assets Attributable to Shareholders | 486,199,714.50 | 295,770,888.59 | 64.38% | 260,704,846.47 | Quarterly Key Financial Indicators In 2021, quarterly operating revenue and net profit fluctuated, with Q2 showing the best performance at 19.11 million CNY net profit, and operating cash flow remaining positive throughout all quarters 2021 Quarterly Key Financial Indicators | Indicator | Q1 (CNY) | Q2 (CNY) | Q3 (CNY) | Q4 (CNY) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 63,883,624.72 | 82,566,057.20 | 65,477,750.41 | 65,583,134.79 | | Net Profit Attributable to Shareholders | 7,081,665.40 | 19,111,349.24 | 7,518,212.11 | 3,206,364.69 | | Net Profit Attributable to Shareholders (Excluding Non-Recurring Items) | 5,556,320.41 | 17,896,461.05 | 7,322,239.16 | 391,077.60 | | Net Cash Flow from Operating Activities | 28,963,765.30 | 46,396,904.08 | 14,932,109.54 | 44,212,923.43 | Differences in Accounting Data Under Domestic and International Accounting Standards The company reported no significant differences in net profit and net assets between financial statements prepared under domestic and international accounting standards during the period - The company reported no differences in net profit and net assets under domestic and international accounting standards during the reporting period[23] Non-Recurring Gains and Losses Items and Amounts In 2021, total non-recurring gains and losses amounted to 5.75 million CNY, primarily from government grants and entrusted investments, positively impacting net profit 2021 Non-Recurring Gains and Losses Items and Amounts | Item | 2021 Amount (CNY) | 2020 Amount (CNY) | 2019 Amount (CNY) | | :--- | :--- | :--- | :--- | | Gains/Losses on Disposal of Non-Current Assets | -219,602.72 | -198,579.09 | -18,856,678.85 | | Government Grants Recognized in Current Profit/Loss | 3,428,315.43 | 15,614,246.51 | 23,420,523.53 | | Gains from Investment Cost Less Than Fair Value of Identifiable Net Assets Acquired in Business Combinations | 133,091.59 | | 5,056,800.00 | | Gains/Losses from Entrusted Investment or Asset Management | 2,452,056.90 | 1,180,870.81 | 42,531.94 | | Gains/Losses from Fair Value Changes of Trading Financial Assets/Liabilities and Investment Income from Disposal of Trading Financial Assets/Liabilities and Available-for-Sale Financial Assets | 102,107.15 | | | | Other Non-Operating Income and Expenses Apart from the Above | 1,745,850.52 | -11,560,660.70 | -975,376.06 | | Less: Income Tax Impact | 1,827,754.81 | 1,110,107.95 | 1,175,499.12 | | Impact on Minority Interests (After Tax) | 62,570.84 | -782,819.46 | -177,993.01 | | Total | 5,751,493.22 | 4,708,589.04 | 7,690,294.45 | Management Discussion and Analysis Industry Overview The company operates in the mid-to-high-end chain hotel sector, which, despite pandemic impacts, is dominated by mid-range hotels and is expected to recover with consumption upgrades and increased industry concentration - The company's main business falls under the "H6110 Tourist Hotels" sub-category within the "H61 Accommodation Industry" of "H Accommodation and Catering Industry"[30] - During the reporting period, the hotel industry was significantly impacted by the pandemic, yet mid-range hotels accounted for nearly 50% of market supply, and the top 10 enterprises (CR10) held a high market concentration of 59.76%[31] - The pandemic accelerated industry consolidation, with leading enterprises expanding rapidly, and long-term growth is expected due to consumption upgrades, improved transportation, and technological advancements[31] Main Business The company's core business involves operating (direct management) limited-service mid-to-high-end hotels and providing hotel management services, with revenue primarily from accommodation and management fees - The company's main business includes the operation of limited-service mid-to-high-end hotels (direct management) and hotel management services[32] - Hotel operation revenue primarily comes from accommodation services, catering to travel, business, and official accommodation needs[32] - Hotel management services include design and renovation consulting, dispatching management personnel, and authorizing the use of Junting Hotel series trademarks and management systems[32] Core Competencies The company's core competencies include building a national brand, a clear development strategy, an experienced management team, continuous brand iteration, strong "one-hotel-one-brand" planning, refined business models, and digital platform development for efficiency and cross-regional expansion - The company is dedicated to building a national brand, possessing an experienced and cohesive core management team, and a clear development strategy[33] - The company continuously explores the upgrade and optimization of its brands (Junting, Yebo, Pagoda Junting), strengthening brand market competitiveness, and has "one-hotel-one-brand" customized development capabilities to achieve good investment returns[34][35] - The company adheres to the philosophy of "selected product content, selected culture, and selected service content" and, through digital platform construction, enhances management efficiency, reduces operating costs, and strengthens cross-regional operational capabilities[36][37] National Brand and Team Advantage Junting Hotel focuses on building a national brand with cultural characteristics and a clear development strategy, supported by an experienced and cohesive management team from high-end hotel backgrounds - Junting Hotel is committed to building a national brand, creating a hotel management group with cultural characteristics and contemporary features[33] - The company's core management team has extensive experience from high-end hotel backgrounds, long-term collaboration, and efficient teamwork, ensuring product and service design reach the highest industry standards[33] Brand Positioning and Iteration Upgrade The company continuously optimizes the positioning of its "Junting", "Yebo", and "Pagoda Junting" brands through multi-path upgrades to enhance market competitiveness - The company continuously optimizes the positioning of its "Junting" brand (focusing on artistic oriental style, immersive urban retreats), "Yebo" brand (exploring urban humanistic aesthetics, regenerating urban historical and cultural buildings), and "Pagoda Junting" brand (emphasizing the fusion of Eastern and Western aesthetics)[34] - Brand upgrade paths include property upgrades, product upgrades, technology upgrades, and management upgrades, aiming to enhance brand market competitiveness[34] "One-Hotel-One-Brand" Planning and Investment Return The company excels in customized mid-to-high-end hotel development, leveraging innovative concepts like brand spillover and high-efficiency design to achieve strong single-store profitability and investment returns - The company possesses customized and diversified mid-to-high-end hotel development capabilities, including the renovation of traditional star-rated hotels, hotels supporting urban high-end commercial complexes, and hotels supporting urban cultural blocks and characteristic towns[35] - Through innovative concepts such as brand spillover, high-efficiency design, overall renovation of traditional properties, and customized design based on target consumer needs, the company has achieved strong single-store profitability and investment returns[35] Selected Business and Service Model Junting Hotel adheres to a "selected content" philosophy, offering high-quality, distinctive accommodation and services through personalized spaces and high-end hotel standards, enhancing brand premium and core competitiveness - The company adheres to the philosophy of "selected product content, selected culture, and selected service content", providing high-level and distinctive accommodation products and services[36] - By creating personalized spatial elements and implementing high-end hotel SOPs and service standards, the company has developed differentiated cultural characteristics, which are a key manifestation of its core competitiveness[36] Digital Platform Construction The company is enhancing its integrated information management platform using raised funds to improve efficient control, management efficiency, cost reduction, and cross-regional operational capabilities - The company is utilizing raised funds to establish an integrated information management platform centered on "standardized, efficient, and intelligent full-process hotel business management"[37] - This platform will help the company efficiently control its directly operated hotels and entrusted management projects, improve management efficiency, reduce operating costs, and enhance cross-regional operational capabilities[37] Main Business Analysis In 2021, the company's main business achieved steady recovery despite recurring pandemic impacts, with operating revenue growing by 8.39% and net profit by 5.28%, while financial expenses significantly increased due to new lease accounting standards - In 2021, the company achieved consolidated operating revenue of 277.51 million CNY, a year-on-year increase of 8.39%; net profit attributable to shareholders was 36.92 million CNY, a year-on-year increase of 5.28%[39] - The company's hotel comprehensive operating indicators significantly increased, with occupancy rate up by 16%, average daily rate up by 8%, and RevPAR up by 26%, recovering to 86%, 93%, and 80% of pre-pandemic levels, respectively[41] - Financial expenses increased significantly by 2229.13% year-on-year, primarily due to the recognition of financing lease expenses for lease liabilities under the new lease accounting standards[43] Main Business Overview Despite recurring pandemic impacts on the domestic business travel market in 2021, the company achieved 277.51 million CNY in operating revenue, a 8.39% increase, and 36.92 million CNY in net profit, a 5.28% increase, with operating cash flow significantly up by 172.69% - In 2021, the company's consolidated operating revenue was 277.51 million CNY, a year-on-year increase of 8.39%; net profit attributable to shareholders was 36.92 million CNY, a year-on-year increase of 5.28%[39] - Net cash flow from operating activities was 134.51 million CNY, a year-on-year increase of 172.69%, primarily due to improved hotel operations and the implementation of new lease accounting standards[39] 2019-2021 Average Daily Rate, Occupancy Rate, and RevPAR | Indicator | 2021 Full Year | 2020 Full Year | 2019 Full Year | | :--- | :--- | :--- | :--- | | Occupancy Rate | 58.03% | 49.89% | 67.22% | | Average Daily Rate | 398.33 | 367.14 | 427.15 | | RevPAR | 231.15 | 183.18 | 287.14 | Revenue and Cost Analysis In 2021, total operating revenue reached 277.51 million CNY, an 8.39% increase, driven by growth in accommodation and hotel management services, while operating costs decreased due to new lease accounting standards and changes in consolidation scope 2021 Operating Revenue Composition | Item | 2021 Amount (CNY) | 2021 Proportion of Operating Revenue | 2020 Amount (CNY) | 2020 Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 277,510,567.12 | 100% | 256,033,890.55 | 100% | 8.39% | | Accommodation Services | 202,375,712.13 | 72.93% | 180,802,739.11 | 70.62% | 11.93% | | Hotel Management | 30,509,338.97 | 10.99% | 14,840,414.86 | 5.80% | 105.58% | | Shanghai Revenue | 102,900,494.88 | 37.08% | 78,412,847.78 | 30.63% | 31.23% | - In 2021, the company's main business cost was 185.18 million CNY, a year-on-year decrease of 3.39%, primarily due to the implementation of new lease accounting standards leading to a reduction in other ancillary service lease costs[54] - During the reporting period, the company deregistered Yiwu Chengzhongcheng Hotel Co., Ltd. and established Chengdu Yujian Junting Hotel Co., Ltd., resulting in a change in the scope of consolidation[55] Operating Revenue Composition In 2021, total operating revenue was 277.51 million CNY, an 8.39% increase, with accommodation services accounting for 72.93% and hotel management revenue growing by 105.58% 2021 Operating Revenue Composition | Item | 2021 Amount (CNY) | 2021 Proportion of Operating Revenue | 2020 Amount (CNY) | 2020 Proportion of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 277,510,567.12 | 100% | 256,033,890.55 | 100% | 8.39% | | Accommodation Services | 202,375,712.13 | 72.93% | 180,802,739.11 | 70.62% | 11.93% | | Catering Services | 24,376,019.88 | 8.78% | 22,429,582.24 | 8.76% | 8.68% | | Other Ancillary Services | 20,249,496.14 | 7.30% | 37,961,154.34 | 14.83% | -46.66% | | Hotel Management | 30,509,338.97 | 10.99% | 14,840,414.86 | 5.80% | 105.58% | | Zhejiang Province | 132,822,850.90 | 47.86% | 138,054,545.04 | 53.92% | -3.79% | | Shanghai City | 102,900,494.88 | 37.08% | 78,412,847.78 | 30.63% | 31.23% | Main Business Revenue and Gross Profit Margin Hotel operations and management achieved a gross profit margin of 33.27% in 2021, with accommodation services at 32.62% and hotel management at 84.03%, while Shanghai's business gross profit margin reached 44.95% 2021 Main Business Revenue, Cost, and Gross Profit Margin | Item | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Profit Margin | YoY Change in Operating Revenue | YoY Change in Operating Cost | YoY Change in Gross Profit Margin | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Hotel Operations and Management | 277,510,567.12 | 185,179,681.19 | 33.27% | 8.39% | -3.39% | 8.13% | | Accommodation Services | 202,375,712.13 | 136,359,622.99 | 32.62% | 11.93% | 1.98% | 6.58% | | Hotel Management | 30,509,338.97 | 4,872,680.18 | 84.03% | 105.58% | 41.70% | 7.20% | | Zhejiang Province | 132,822,850.90 | 102,436,872.87 | 22.88% | -3.79% | -9.94% | 5.27% | | Shanghai City | 102,900,494.88 | 56,643,618.05 | 44.95% | 31.23% | 14.31% | 8.15% | | Hotel Operations | 247,001,228.15 | 180,307,001.01 | 27.00% | 2.41% | -4.21% | 5.05% | Operating Cost Composition In 2021, the company's main business cost was 185.18 million CNY, a 3.39% decrease year-on-year, primarily due to a 96.94% reduction in other ancillary service lease costs following the implementation of new lease accounting standards 2021 Operating Cost Composition | Product Category | Item | 2021 Amount (CNY) | 2021 Proportion of Operating Cost | 2020 Amount (CNY) | 2020 Proportion of Operating Cost | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Accommodation Services | Subtotal | 136,359,622.99 | 73.64% | 133,714,453.31 | 69.76% | 0.11% | | Catering Services | Subtotal | 40,194,608.83 | 21.71% | 33,965,197.16 | 17.72% | 18.34% | | Other Ancillary Services | Lease Cost | 565,475.05 | 0.31% | 18,456,806.28 | 9.63% | -96.94% | | Hotel Management | Subtotal | 4,872,680.18 | 2.63% | 3,438,744.07 | 1.79% | 41.70% | | Total Operating Cost | Total | 185,179,681.19 | 100.00% | 191,675,489.50 | 100.00% | -3.39% | Changes in Consolidation Scope During the reporting period, the company deregistered Yiwu Chengzhongcheng Hotel Co., Ltd. and established Chengdu Yujian Junting Hotel Co., Ltd., resulting in a change in the scope of consolidation - The Group deregistered Yiwu Chengzhongcheng Hotel Co., Ltd. on April 14, 2021, and it is no longer included in the scope of consolidation[55] - The Group established Chengdu Yujian Junting Hotel Co., Ltd. on March 25, 2021, with a registered capital of 10 million CNY, increasing the scope of consolidation[55] Major Customers and Suppliers The company's top five customers accounted for 21.84% of total annual sales, and the top five suppliers accounted for 45.37% of total annual purchases, with no related party transactions in either category 2021 Major Sales Customers | Indicator | Amount (CNY) | | :--- | :--- | | Total Sales to Top Five Customers | 60,613,949.76 | | Proportion of Total Annual Sales from Top Five Customers | 21.84% | | Proportion of Total Annual Sales from Related Party Sales within Top Five Customers | 0.00% | 2021 Major Suppliers | Indicator | Amount (CNY) | | :--- | :--- | | Total Purchases from Top Five Suppliers | 67,246,150.93 | | Proportion of Total Annual Purchases from Top Five Suppliers | 45.37% | | Proportion of Total Annual Purchases from Related Party Purchases within Top Five Suppliers | 0.00% | Expense Analysis In 2021, sales expenses increased by 33.61% to 13.50 million CNY due to higher revenue, management expenses rose by 45.17% to 23.14 million CNY due to Chengdu hotel renovation rent, and financial expenses surged by 2229.13% to 19.39 million CNY due to new lease accounting standards 2021 Major Expense Changes | Item | 2021 (CNY) | 2020 (CNY) | YoY Change | Significant Change Explanation | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 13,500,513.90 | 10,104,296.13 | 33.61% | Company revenue increased, leading to a corresponding increase in commission expenses | | Administrative Expenses | 23,137,762.97 | 15,938,617.02 | 45.17% | Chengdu hotel was under renovation in 2021, and the corresponding rent was included in administrative expenses | | Financial Expenses | 19,393,823.73 | 832,663.44 | 2,229.13% | Implementation of new lease accounting standards led to an increase in interest expenses from lease liabilities compared to the same period last year | Cash Flow Analysis In 2021, net cash flow from operating activities significantly increased by 172.69% to 134.51 million CNY, while investment activities resulted in a net outflow of 118.45 million CNY, and financing activities generated a net inflow of 100.69 million CNY due to public stock issuance and new lease accounting standards 2021 Key Cash Flow Indicators | Item | 2021 (CNY) | 2020 (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 134,505,702.35 | 49,324,697.62 | 172.69% | | Net Cash Flow from Investing Activities | -118,445,557.00 | -32,376,455.94 | Not Applicable | | Net Cash Flow from Financing Activities | 100,692,826.38 | -5,634,531.50 | Not Applicable | | Net Increase in Cash and Cash Equivalents | 116,752,971.73 | 11,313,710.18 | 931.96% | - Net cash flow from operating activities increased by 172.69%, primarily due to improved hotel operations and the reclassification of lease cash payments to financing activities under new lease accounting standards[63] - Net cash flow from financing activities significantly increased, mainly due to the company's public issuance of shares to raise funds and the inclusion of lease liability cash expenditures in financing activities under new lease accounting standards[64] Asset and Liability Status At the end of 2021, total assets reached 1.37 billion CNY, a 203.94% increase, with significant growth in monetary funds, receivables, construction in progress, and financial assets, while right-of-use assets and lease liabilities also increased due to new leases - At the end of 2021, the company's total assets amounted to 1.37 billion CNY, a year-on-year increase of 203.94%[20] - Monetary funds, accounts receivable, construction in progress, trading financial assets, and other non-current assets all showed significant growth, primarily influenced by public stock issuance, revenue growth, increased construction projects, and bank wealth management products[65][67] - Right-of-use assets and lease liabilities increased due to new leased properties, with lease liabilities accounting for 53.10% of total assets[67] Significant Changes in Asset Composition At the end of 2021, monetary funds increased by 6.58% to 222.36 million CNY due to public stock issuance, while accounts receivable, construction in progress, trading financial assets, and other non-current assets also significantly increased, and right-of-use assets and lease liabilities grew due to new leases 2021 Year-End Significant Changes in Asset Composition | Item | 2021 Year-End Amount (CNY) | Proportion of Total Assets | 2021 Year-Beginning Amount (CNY) | Proportion of Total Assets | Proportion Change | Significant Change Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Monetary Funds | 222,364,435.70 | 16.20% | 105,611,463.97 | 9.62% | 6.58% | Cash received from the company's public stock issuance during the current period | | Accounts Receivable | 28,564,605.57 | 2.08% | 21,655,821.32 | 1.97% | 0.11% | Company revenue increased during the current period, leading to a corresponding increase in accounts receivable | | Construction in Progress | 27,455,883.58 | 2.00% | 747,583.00 | 0.07% | 1.93% | Due to an increase in construction projects | | Right-of-Use Assets | 492,277,982.31 | 35.86% | 434,557,647.32 | 39.58% | -3.72% | Due to newly leased properties during the current period | | Lease Liabilities | 728,883,613.94 | 53.10% | 686,285,133.08 | 62.50% | -9.40% | Due to newly leased properties during the current period | | Trading Financial Assets | 76,702,107.15 | 5.59% | | | 5.59% | Unredeemed bank wealth management products during the current period | | Other Non-Current Assets | 31,756,494.94 | 2.31% | 1,268,037.95 | 0.12% | 2.19% | Large-denomination certificates of deposit unredeemed during the current period | Assets Measured at Fair Value At the end of 2021, the company's financial assets measured at fair value primarily consisted of trading financial assets, totaling 76.70 million CNY, with a fair value change gain of 0.10 million CNY for the period 2021 Year-End Financial Assets Measured at Fair Value | Item | Beginning Balance (CNY) | Fair Value Change Gain/Loss for the Period (CNY) | Amount Purchased During the Period (CNY) | Amount Sold During the Period (CNY) | Ending Balance (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | Subtotal of Trading Financial Assets | 0.00 | 102,107.15 | 266,000,000.00 | 189,400,000.00 | 76,702,107.15 | | Total Above | 0.00 | 102,107.15 | 266,000,000.00 | 189,400,000.00 | 76,702,107.15 | Investment Status The company had no significant equity or non-equity investments during the reporting period, with 76.70 million CNY in fair value financial assets from wealth management, and 15.40 million CNY of 188.75 million CNY in raised funds used for hotel design and management platform projects - The company had no significant equity investments or non-equity investments during the reporting period[71] 2021 Financial Assets Measured at Fair Value | Asset Category | Initial Investment Cost (CNY) | Fair Value Change Gain/Loss for the Period (CNY) | Amount Purchased During the Period (CNY) | Amount Sold During the Period (CNY) | Cumulative Investment Income (CNY) | Ending Balance (CNY) | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Other | 0.00 | 102,107.15 | 266,000,000.00 | 189,400,000.00 | 2,394,429.77 | 76,702,107.15 | Own Funds | - The company's total raised funds amounted to 188.75 million CNY, with 15.40 million CNY cumulatively used during the period, primarily for mid-to-high-end hotel design and development projects and integrated management platform construction[74] - As of the end of 2021, the unused raised funds balance was 176.98 million CNY, held in a special bank account as demand deposits[74][79] Fair Value Financial Assets The company's fair value financial assets at period-end, primarily from wealth management with own funds, totaled 76.70 million CNY, generating a fair value change gain of 0.10 million CNY and cumulative investment income of 2.39 million CNY 2021 Financial Assets Measured at Fair Value | Asset Category | Initial Investment Cost (CNY) | Fair Value Change Gain/Loss for the Period (CNY) | Amount Purchased During the Period (CNY) | Amount Sold During the Period (CNY) | Cumulative Investment Income (CNY) | Ending Balance (CNY) | Source of Funds | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Other | 0.00 | 102,107.15 | 266,000,000.00 | 189,400,000.00 | 2,394,429.77 | 76,702,107.15 | Own Funds | Use of Raised Funds The company raised 188.75 million CNY in 2021, using 15.40 million CNY for hotel design and management platform projects, with the remaining 176.98 million CNY held as bank deposits after adjusting project implementation locations 2021 Overall Use of Raised Funds | Fundraising Year | Fundraising Method | Total Raised Funds (ten thousand CNY) | Total Raised Funds Used This Period (ten thousand CNY) | Total Raised Funds Cumulatively Used (ten thousand CNY) | Unused Raised Funds (ten thousand CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | 2021 | Public Issuance of RMB Ordinary Shares | 18,875.34 | 1,540.17 | 1,540.17 | 17,697.52 | - Raised funds are primarily used for the "Mid-to-High-End Hotel Design and Development Project" and the "Integrated Management Platform Construction Project", with investment progress at 8.28% and 2.66% respectively as of the end of the reporting period[76] - The company has adjusted the implementation locations for the "Mid-to-High-End Hotel Design and Development Project" from Shanghai, Hangzhou, and Nanjing to Shanghai, Hangzhou, Nanjing, and other cities deemed suitable by management[78] Analysis of Major Holding and Participating Companies The company's major holding subsidiaries, including Shanghai Baiyang Junting Hotel Management Co., Ltd., Shanghai Junting Hotel Management Co., Ltd., and Ningbo Ouhua Junting Hotel Management Co., Ltd., all achieved profitability in 2021, significantly contributing to the company's net profit 2021 Financial Performance of Major Holding Subsidiaries | Company Name | Company Type | Registered Capital (ten thousand CNY) | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Operating Profit (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Baiyang Junting Hotel Management Co., Ltd. | Subsidiary | 100 | 53,315,519.92 | 22,521,810.50 | 27,163,747.80 | 14,003,168.94 | 10,732,982.03 | | Shanghai Junting Hotel Management Co., Ltd. | Subsidiary | 1,425 | 87,441,081.51 | 33,169,203.31 | 25,611,964.73 | 7,467,500.49 | 5,545,968.49 | | Ningbo Ouhua Junting Hotel Management Co., Ltd. | Subsidiary | 100 | 57,900,241.59 | 13,463,350.67 | 22,671,306.56 | 8,867,413.69 | 6,666,462.76 | - Shanghai Baiyang Junting Hotel Management Co., Ltd. reported a net profit of 10.73 million CNY in 2021[85] - Shanghai Junting Hotel Management Co., Ltd. reported a net profit of 5.55 million CNY in 2021[86] Future Development Outlook The company's development strategy focuses on mid-to-high-end and luxury resort hotels, aiming for comprehensive product line coverage, with a 2022 plan to expand projects, enhance brands, and achieve digital transformation to become a top-tier global hotel group - China's hotel chain penetration rate is 31.5%, significantly lower than the global average of 41.9% and the US's 72.9%, indicating substantial room for future growth[89] - Mid-to-high-end hotels are well-positioned to benefit from consumption upgrades, offering broad market demand[90] - The company's development strategy has shifted to focus on mid-to-high-end selected service hotels and high-end resort hotels, aiming for comprehensive product line coverage and synergistic development[92] - The 2022 operating plan includes coordinating the expansion teams of "Junting", "Junlan", and "Jinglan" with a target of 100 new projects, and aims to rank among the top 10 hotel groups in China and top 50 globally[93] - The company will focus on digital platform construction, establishing a data sharing and analysis system to build an industry-leading digital marketing system, and will launch corporate social responsibility projects to improve its ESG management system[94][95][96] Industry Landscape and Trends The hotel industry, characterized by fragmentation and significant room for chain penetration, is seeing accelerated expansion by leading players, with mid-to-high-end hotels poised for growth due to consumption upgrades and supportive national policies - As of the end of 2020, China's hotel chain penetration rate was 31.5%, significantly lower than the global average, indicating substantial room for future improvement[89] - The pandemic accelerated industry consolidation, leading to an increase in both the number of chain hotels and guest rooms, with leading enterprises expanding rapidly[89] - Mid-to-high-end hotels are well-positioned to fully benefit from consumption upgrade dividends due to their comfort, attentive service, rich product offerings, and high cost-effectiveness, offering broad demand potential[90] Company Development Strategy Following its successful IPO and acquisitions of Junlan and Jinglan, the company's development strategy now focuses on mid-to-high-end selected service hotels and high-end resort hotels, aiming for comprehensive product line coverage and a hotel management group rooted in Eastern culture and modern lifestyles - The company successfully listed on the ChiNext board of the Shenzhen Stock Exchange and acquired Zhejiang Junlan Hotel Management Co., Ltd. and Jinglan Hotel Investment Management Co., Ltd.[92] - The company's development strategy has shifted to focus on mid-to-high-end selected service hotels and high-end resort hotels, aiming for comprehensive product line coverage and synergistic development[92] 2022 Operating Plan In 2022, the company plans to integrate its "Junting", "Junlan", and "Jinglan" expansion teams to target 100 new projects, focusing on key regions, while also unifying brand image, investing in digital transformation, and enhancing ESG management - In 2022, the company will coordinate the expansion teams of "Junting", "Junlan", and "Jinglan" with a target of 100 new projects, focusing on expanding into Beijing, the Southwest region, and the Pearl River Delta region[93] - The company will gradually unify its group image, clarify its brand matrix, continue new brand and product research and development, and explore fashionable lifestyle modules such as fitness, social dining, smart offices, and virtual entertainment[94] - The company will increase investment in IT technology and systems, undergo digital transformation, establish a data sharing and analysis system, and build an industry-leading digital marketing system[94][95] - The company will establish a comprehensive quality management system, thoroughly review operational standards, launch corporate social responsibility projects, and improve its ESG management system, focusing on community building, green environmental protection, and public welfare[95][96] Corporate Governance Basic Corporate Governance Status During the reporting period, the company consistently improved its corporate governance structure and internal control systems in strict compliance with laws and regulations, ensuring standardized operations across all aspects of governance - The company strictly adheres to laws and regulations such as the "Company Law" and "Securities Law", continuously improving its corporate governance structure and internal control systems to enhance governance levels and risk prevention capabilities[99] - The company's operations, including its general meetings of shareholders, Board of Directors (comprising 9 directors, including 3 independent directors), Supervisory Board (comprising 3 supervisors, including 1 employee supervisor), information disclosure, and investor relations management, all comply with regulatory requirements[100][102][103][105][106] - The company and its controlling shareholder are independent in terms of business, personnel, assets, organization, and finance, with no instances of the controlling shareholder occupying company funds or interfering with company decisions[101] Company Independence The company maintains independence from its controlling shareholder and actual controller in assets, personnel, finance, organization, and business, enabling it to operate independently in the market - The company is independent from its controlling shareholder, actual controller, and their controlled enterprises in terms of assets, personnel, finance, organization, and business, possessing the ability to operate independently and continuously in the market[109] - The company's senior management does not hold positions other than director or supervisor in the controlling shareholder or its controlled enterprises, and financial personnel do not hold concurrent positions[110] - The company has established an independent financial department and accounting system, uses independent bank accounts, and operates its main business independently, with no horizontal competition or significantly unfair related party transactions[111][112][113] Directors, Supervisors, and Senior Management The company's Board of Directors, Supervisory Board, and senior management team remained stable, with Wu Qiyuan as Chairman and key personnel changes including the departure of independent director Yao Xianguo and employee supervisor Wang Yongjun, and the resignation of General Manager Cong Bo, who was replaced by Zhu Xiaodong, with total compensation for the team reaching 2.47 million CNY - Wu Qiyuan serves as the company's Chairman, with Ding He, Cong Bo, Shi Chenning, Gan Shenghong, and Zhang Yong serving as directors and senior executives[116][118][123][124][125][126][127] - During the reporting period, independent director Yao Xianguo and employee representative supervisor Wang Yongjun left their positions, and General Manager Cong Bo resigned, with Zhu Xiaodong subsequently appointed as General Manager[119][120][121] 2021 Compensation for Directors, Supervisors, and Senior Management | Name | Position | Employment Status | Total Pre-Tax Compensation from Company (ten thousand CNY) | | :--- | :--- | :--- | :--- | | Wu Qiyuan | Chairman | Current | 0 | | Ding He | Director | Current | 2.13 | | Cong Bo | Director | Current | 5.07 | | Shi Chenning | Director, Deputy General Manager, Board Secretary | Current | 35.76 | | Gan Shenghong | Director, Deputy General Manager | Current | 43.80 | | Zhang Yong | Director, Financial Controller | Current | 24.60 | | Yu Tingting | Independent Director | Current | 5.61 | | Zhang Hongying | Independent Director | Current | 7.14 | | Xie Jianmin | Independent Director | Current | 7.14 | | Zhao Ke | Chairman of Supervisory Board | Current | 27.84 | | Xu Yue | Supervisor | Current | 32.10 | | Dai Wenyan | Supervisor | Current | 8.52 | | Zhu Xiaodong | General Manager | Current | 6.32 | | Zhang Gequan | Deputy General Manager | Current | 35.46 | | Yao Xianguo | Independent Director | Resigned | 1.47 | | Wang Yongjun | Supervisor | Appointed/Removed | 3.84 | | Total | -- | -- | 246.80 | Basic Information of Directors, Supervisors, and Senior Management The company's Board of Directors, Supervisory Board, and senior management team include Chairman Wu Qiyuan, various directors, independent directors, supervisors, and general manager Zhu Xiaodong, with some changes in independent director, employee supervisor, and general manager positions during the reporting period - The company's Chairman is Wu Qiyuan; directors include Ding He, Cong Bo, Shi Chenning, Gan Shenghong, and Zhang Yong; independent directors are Yu Tingting, Zhang Hongying, and Xie Jianmin[116][118] - The Chairman of the Supervisory Board is Zhao Ke; supervisors include Xu Yue and Dai Wenyan; senior management includes General Manager Zhu Xiaodong and Deputy General Manager Zhang Gequan[118] - During the reporting period, independent director Yao Xianguo resigned due to the expiration of his term, employee representative supervisor Wang Yongjun resigned due to personal reasons, and General Manager Cong Bo resigned from his position due to personal reasons[119][120][121] Background of Directors, Supervisors, and Senior Management The company's directors, supervisors, and senior management possess extensive experience in hotel management, investment, or finance, with Chairman Wu Qiyuan having over 50 years of industry experience, and independent directors providing professional insights from legal, accounting, and tourism sectors - Chairman Wu Qiyuan has over 50 years of experience in the hotel industry, having served as general manager of several renowned hotels and chairman of Junlan Management[123] - Several senior executives, including Ding He, Cong Bo, Shi Chenning, Gan Shenghong, and Zhang Yong, possess many years of experience in hotel management, investment, or finance[124][125][126][127] - Independent directors Yu Tingting, Zhang Hongying, and Xie Jianmin have professional backgrounds in law, accounting, and tourism, respectively, providing expert opinions for Board decisions[128][129][130] Compensation of Directors, Supervisors, and Senior Management The company's compensation for directors, supervisors, and senior management, comprising basic salary and year-end performance bonuses, is determined by position, experience, and performance, with the Compensation and Assessment Committee overseeing policy, totaling 2.47 million CNY in 2021 - The company's compensation for directors, supervisors, and senior management primarily consists of basic salary and year-end performance bonuses, determined based on job level, individual qualifications, and workload[135] - The Compensation and Assessment Committee is responsible for formulating and reviewing the company's compensation policies and plans for directors and senior management[135] - In 2021, the total compensation for the company's directors, supervisors, and other key personnel was 2.47 million CNY, an increase from 1.75 million CNY in 2020, but still lower than 4.34 million CNY in 2019[136][139] Performance of Directors' Duties During the reporting period, the Board of Directors held six meetings, with all directors actively attending, diligently reviewing proposals, and offering constructive suggestions for the company's development and governance, demonstrating their commitment to its standardized and healthy operation - During the reporting period, the company's Board of Directors held 6 meetings, with all directors maintaining high attendance rates; Wu Qiyuan, Ding He, Cong Bo, Shi Chenning, Gan Shenghong, Zhang Yong, and Xie Jianmin all attended 6 meetings either in person or via telecommunication[140][141] - Directors diligently performed their duties in strict accordance with relevant regulations and policies, actively reviewed all proposals, and offered constructive suggestions on the company's development strategy and corporate governance[143] - Directors raised no objections to company matters during the reporting period[142] Performance of Board Special Committees The Board's specialized committees, including Investment Decision, Strategy, Audit, Compensation & Assessment, and Nomination, operated in strict accordance with their rules of procedure, reviewing and approving key proposals such as fund utilization, financial reports, executive compensation, and general manager appointments - The Strategic Committee reviewed and approved proposals for replacing pre-IPO expenses with raised funds and adjusting the implementation locations of certain fundraising projects[144] - The Audit Committee reviewed and approved the 2020 Annual Report and Summary, and the 2021 Third Quarterly Report[144] - The Compensation and Assessment Committee reviewed the compensation distribution for directors and senior management in 2020, and the Nomination Committee reviewed and approved the proposal for appointing the company's general manager[146] Work of the Supervisory Board The Supervisory Board found no risks within the company during its oversight activities in the reporting period and raised no objections to the supervised matters, diligently fulfilling its supervisory responsibilities - The Supervisory Board found no risks within the company during its oversight activities in the reporting period and raised no objections to the supervised matters[147] Employee Situation As of the end of the reporting period, the company had 577 employees, predominantly in production roles and with education levels below college, implementing a "position-based, grade-based" compensation system and human resource training programs to enhance efficiency 2021 Year-End Employee Count, Professional Structure, and Education Level | Indicator | Number (people) | | :--- | :--- | | Total Employees at Year-End | 577 | | Production Personnel | 329 | | Sales Personnel | 28 | | Technical Personnel | 29 | | Financial Personnel | 26 | | Administrative Personnel | 165 | | Master's Degree and Above | 4 | | Bachelor's Degree | 39 | | College Degree | 143 | | Below College Degree | 391 | - The company implements a "position-based, grade-based" compensation system, with a salary structure including wages, performance bonuses, and benefits, flexibly tailored to the nature and performance assessment characteristics of different positions[149][150] - The company actively implements human resource training programs, providing training for employees at all levels and management teams, including new employee onboarding training and various training and exchange activities for management teams[152] Profit Distribution and Capital Reserve Conversion The company's 2021 profit distribution plan, proposing a cash dividend of 5.00 CNY (tax inclusive) and 5 bonus shares for every 10 shares, totaling 40.27 million CNY in cash dividends, aligns with the company's articles of association and dividend policy for its growth stage - The company's 2021 profit distribution plan proposes a cash dividend of 5.00 CNY (tax inclusive) per 10 shares and a bonus issue of 5 shares for every 10 shares[154] - The distribution plan is based on a total share capital of 80,540,000 shares, with a cash dividend amount of 40,270,000.00 CNY, representing 25.52% of the distributable profit of 157,784,400.00 CNY[154] - The company is in a growth stage with significant capital expenditure plans, requiring a minimum cash dividend ratio of 20% of distributable profit, which the proposed plan meets[154] Internal Control System Construction and Implementation During the reporting period, the company continuously strengthened its internal control system, clarifying responsibilities, enhancing risk prevention, and ensuring compliant operations, with no significant internal control deficiencies identified - The company has established and improved its internal control system in accordance with the "Basic Norms for Enterprise Internal Control" and other regulations, clarifying the rights and obligations of shareholders, directors, supervisors, and senior management[155] - In 2021, the company continuously strengthened the internal control awareness and responsibilities of the Board of Directors and key positions, enhancing the company's standardized operational level[155] - No significant internal control deficiencies were identified during the reporting period[156] Internal Control Evaluation The company's internal control evaluation report, disclosed on April 26, 2022, covered 100% of consolidated assets and operating revenue, establishing qualitative and quantitative defect criteria, and found no significant or material deficiencies in financial or non-financial reporting during the period - The company's internal control evaluation report was disclosed on April 26, 2022, covering 100% of the company's consolidated financial statement assets and total operating revenue[158] - The company established qualitative and quantitative defect identification criteria for financial and non-financial reporting, for example, a significant financial reporting defect includes senior management fraud or correction of previously published financial reports[158][159] - During the reporting period, the number of significant financial reporting defects, significant non-financial reporting defects, material financial reporting defects, and material non-financial reporting defects were all 0[159] Environmental and Social Responsibility Major Environmental Issues The company and its subsidiaries are not designated as key polluting entities and received no environmental penalties during the reporting period, actively implementing various measures to reduce carbon emissions through green practices, energy conservation, and sustainable operations - The company and its subsidiaries are not classified as key polluting entities by environmental protection authorities and received no administrative penalties for environmental issues during the reporting period[162][164] - The company implements various measures to reduce carbon emissions, including using green products such as straw-based combs and toothbrushes, stone paper outer packaging, and virgin bamboo pulp tissues[162] - The company implements energy-saving measures, such as using variable frequency water pumps, solar hot water systems, energy-efficient air conditioners, and LED lighting, and manages energy consumption for building equipment and lighting[162] - The Group's engineering center participates in equipment selection and system function setup during the early stages of projects, selects green and environmentally friendly equipment, and monitors energy consumption daily during operation to ensure it remains within a 5-6% range[163] Social Responsibility Status The company has concurrently disclosed its 2021 Environmental, Social, and Governance (ESG) Report, providing detailed information on its social responsibility performance - The company has concurrently disclosed its 2021 Environmental, Social, and Governance (ESG) Report, detailing its social responsibility performance[165] Poverty Alleviation and Rural Revitalization The company has not yet engaged in poverty alleviation or rural revitalization efforts during the reporting period - The company has not yet engaged in poverty alleviation or rural revitalization efforts during the reporting period[166] Significant Events Fulfillment of Commitments All commitment-related parties, including the actual controller, shareholders, and the company, duly fulfilled their commitments during the reporting period, covering share lock-up, reduction intentions, dividend plans, avoidance of horizontal competition, reduction of related party transactions, share price stabilization, and information disclosure accuracy, with no overdue unfulfilled commitments - The company's actual controller, Wu Qiyuan, committed not to transfer or entrust others to manage his shares in the issuer for 36 months from the listing date, and committed that the reduction price would not be lower than the issue price for 24 months after the lock-up period expires[169][170][171] - The company committed that its profit distribution policy would prioritize shareholder returns, primarily through cash dividends, with annual cash dividends not less than 10% of the distributable profit for the year[177][178][179][180][181][182][183][184][185][186][187][188] - The controlling shareholder and actual controller committed to avoiding horizontal competition and minimizing related party transactions with the company, adhering to market-based pricing principles for unavoidable transactions[188][189][190][191][192] - The company, its controlling shareholder, directors, supervisors, and senior management committed to initiating share price stabilization measures, including company share repurchases, controlling shareholder增持 (increase in holdings), and director/supervisor/senior management增持 (increase in holdings), if the share price falls below the net asset value per share[192][193][194][195][196][197][198][199][200][201][202][203](index=