Shanghai Jahwa(SH:600315)2021-02-02 16:00Financial Performance - The company's operating revenue for 2020 was CNY 7,032,385,622.18, a decrease of 7.43% compared to 2019[33]. - The net profit attributable to shareholders for 2020 was CNY 430,201,656.84, down 22.78% from the previous year[33]. - The net cash flow from operating activities was CNY 643,434,435.10, reflecting a decline of 14.07% year-on-year[33]. - The basic earnings per share for 2020 was CNY 0.64, a decrease of 22.89% compared to 2019[34]. - The company's total assets at the end of 2020 were CNY 11,295,320,619.07, an increase of 1.33% from the end of 2019[33]. - The net assets attributable to shareholders increased by 3.40% to CNY 6,499,224,054.26 at the end of 2020[33]. - The weighted average return on equity for 2020 was 6.73%, down 2.48 percentage points from 2019[34]. - The company achieved a revenue of 7.03 billion RMB, a year-on-year decline of 7.43% due to the impact of the pandemic and adjustments in sales channels[51]. - Gross margin decreased to 59.95%, down by 1.93 percentage points compared to the previous year[51]. - Online sales revenue reached 2.98 billion RMB, growing by 15.24% year-on-year, while offline sales dropped to 4.05 billion RMB, a decline of 19.09%[51]. Strategic Initiatives - The company plans to enhance overall business visibility and efficiency through continuous digital empowerment and simplification of systems in 2021[17]. - The company is focusing on consumer insights and industry trends to guide decision-making, shifting from a centralized to a decentralized approach[13]. - Brand innovation efforts include collaboration with big data platforms to determine new product concepts, packaging, and pricing through multi-dimensional consumer testing[13]. - The company is actively embracing new retail strategies to enhance its offline channel performance and has made adjustments to channel strategies based on environmental changes[13]. - The company aims to achieve positive growth for brands like Baicaoji and Meijiajing in 2021 after years of decline[14]. Research and Development - R&D expenses totaled 144 million RMB, down 16.52% year-on-year, reflecting a focus on cost control[51]. - The total R&D investment for the period amounted to ¥151,093,018.79, representing 2.15% of the operating revenue[76]. - The company has invested in a self-fermentation technology hardware platform to develop effective active ingredients and has introduced innovative raw materials such as snake venom peptides and ceramides[93]. - The company has received 4 new national invention patents and submitted 18 new invention patent applications during the reporting period[93]. - The company has a long-term collaboration with Shanghai Jiao Tong University and other institutions, focusing on clinical research and product efficacy[93]. Market Trends and Consumer Insights - The Chinese cosmetics market is projected to grow at a compound annual growth rate (CAGR) of 8.6% from 2019 to 2024, reaching a market size of CNY 828.2 billion by 2024[116]. - Skincare products achieved a compound annual growth rate (CAGR) of 10.1% from 2014 to 2019, and are projected to grow at a CAGR of 12.5% from 2019 to 2024[119]. - Bath products experienced a CAGR of 3.7% from 2014 to 2019, with an expected CAGR of 4.7% from 2019 to 2024[119]. Corporate Governance and Shareholder Returns - The board of directors has proposed a cash dividend of 2.00 yuan per 10 shares to shareholders, reflecting a commitment to returning value to investors[6]. - The cash dividend policy stipulates that at least 30% of the net profit attributable to shareholders will be distributed as cash dividends each year[129]. - In 2020, the company distributed cash dividends amounting to approximately 135.59 million RMB, representing 31.52% of the net profit attributable to shareholders[130]. - The company has maintained a consistent cash dividend distribution of over 30% of net profit since 2009[129]. Social Responsibility and Sustainability - The company donated over 4 million yuan in cash and materials to support the fight against COVID-19[168]. - A total of 102,000 yuan was invested in educational poverty alleviation, benefiting 400 impoverished students[169]. - The company plans to continue its "precision poverty alleviation" efforts in 2021, focusing on improving education and health in rural areas[172]. - The company achieved a water savings of 17,640 tons through ultra-filtration concentrate recovery initiatives[174]. - The company was awarded the title of "Shanghai Water-saving Enterprise" for its environmental management efforts[174]. Operational Efficiency - Inventory and accounts receivable decreased significantly by the end of the year compared to the same period last year, reflecting effective management[14]. - The company closed 462 low-performing stores in 2020, leaving a total of 977 stores by year-end[55]. - The company has implemented strategic reserves for long-cycle imported raw materials to mitigate supply risks[107]. - The company’s energy costs increased, with steam prices rising by 29.6%, impacting overall operating costs[106]. Audit and Compliance - The company appointed PwC Zhongtian as the domestic auditor for the 2020 financial year, with an audit fee of RMB 2.58 million[135]. - The internal control audit for the 2020 financial report was also conducted by PwC Zhongtian, with a fee of RMB 980,000[138]. - The company has no significant litigation or arbitration matters in the current year[139]. - The integrity status of the company and its controlling shareholders is reported to be good during the reporting period[139].