JINLING HOTEL(601007)2022-04-29 16:00Financial Performance - The company's operating revenue for 2021 was approximately RMB 1.37 billion, representing a 20.50% increase compared to RMB 1.14 billion in 2020[22]. - The net profit attributable to shareholders for 2021 was approximately RMB 28 million, a decrease of 35.39% from RMB 43 million in 2020[22]. - The net cash flow from operating activities increased by 87.17% to approximately RMB 251 million in 2021, compared to RMB 134 million in 2020[22]. - The total assets of the company as of the end of 2021 were approximately RMB 3.71 billion, reflecting a 16.06% increase from RMB 3.19 billion at the end of 2020[22]. - The basic earnings per share for 2021 were RMB 0.072, down 50.34% from RMB 0.145 in 2020[23]. - The weighted average return on equity decreased to 1.82% in 2021, down from 2.87% in 2020, a reduction of 1.05 percentage points[23]. - The total profit for the year was RMB 134 million, reflecting a year-on-year growth of 4.35%[31]. - The company reported a net asset attributable to shareholders of approximately RMB 1.56 billion at the end of 2021, a slight increase of 1.70% from RMB 1.53 billion at the end of 2020[22]. Business Development - The company is accelerating the scale development of Jinling chain hotels and has successfully established a presence in key urban areas[32]. - The company has partnered with Hefei Cultural Tourism Expo Group to expand its hotel management business in Anhui province[32]. - The company is focusing on expanding its hotel chain and enhancing brand influence through improved management and operational support[44]. - The company aims to expand its hotel operations and management scale through mergers and acquisitions, strategic alliances, and other methods, targeting a significant growth in brand influence and market presence[83]. - The company plans to expand its market presence by opening three new hotels in key cities by the end of 2022[107]. Digital Transformation - The company's digital transformation includes the launch of the "Zunxiang Jinling" direct sales platform, integrating online and offline resources, and leveraging new media for sustainable online marketing capabilities[33]. - The company is targeting a digital economy transformation by enhancing e-commerce, direct sales, and centralized procurement, aiming for significant growth in its digital platform capabilities[86]. - The company plans to increase its membership base and direct sales ratio through the "Respect Gold" online sales initiative, enhancing its supply chain system to boost procurement scale[86]. Market Trends and Challenges - The domestic tourism industry faced significant challenges, with only 57% of the 3.02 trillion yuan tourism revenue in 2021 recovering to 2019 levels[36]. - The hotel industry saw a rise in chain hotel room numbers despite an overall decline in hotel numbers, indicating increased resilience in the chain operating model during the pandemic[37]. - The company recognizes a shift in consumer demand towards high-quality and diverse tourism experiences, with a trend towards digital transformation in the tourism sector due to the ongoing impact of the COVID-19 pandemic[79]. - The food industry is projected to grow steadily, with the pre-prepared food sector emerging as a new growth area, reflecting a 10% year-on-year increase in total revenue for the food industry in 2021[81]. Corporate Governance - The company completed the restructuring of its board of directors, consisting of 10 members, including 4 independent directors, ensuring compliance with governance standards[95]. - The supervisory board consists of three members, including one employee representative, who independently oversee the company's operations and financial status[95]. - The company actively communicated with investors through various channels, ensuring equal access to information and maintaining investor rights[97]. - The company has implemented strict confidentiality measures for insider information, ensuring compliance with legal regulations[97]. - The company has established specialized committees, including an audit committee and a strategic committee, to oversee various aspects of governance and strategy[120]. Environmental and Social Responsibility - The company has maintained a commitment to environmental sustainability and corporate social responsibility through various initiatives[145]. - The company has been focusing on green management and low-carbon operations, aligning with national energy-saving and emission reduction goals[142]. - The company actively participated in social responsibility initiatives, including charitable donations and community support projects, enhancing its corporate image[145]. - The company has engaged in various poverty alleviation efforts, including the establishment of a high-quality rice planting base in Jiangsu province[144]. Legal Matters - The company is involved in multiple lawsuits, with claims totaling approximately 6.3846 million yuan related to the Sichuan Tanmu Lin Hotel project[155]. - The company has a pending appeal regarding a judgment requiring it to pay approximately 5.78 million yuan, which includes rent, interest, and other payments[155]. - Another lawsuit involves claims of approximately 10.0902 million yuan against the company related to the Sichuan Huashui Bay Hotel project[155]. - The company has ongoing litigation with the Chengdu court regarding a first-instance judgment requiring payment of about 7.5 million yuan in rent and related fees[155]. Employee and Talent Management - The company implemented a "talent strong enterprise" strategy, selecting and appointing 21 middle and senior management personnel, and conducting 289 instances of cross-training and job rotation[35]. - The company emphasizes a talent development strategy, creating a supportive environment for employee growth and aligning employee benefits with corporate success[48]. - The total number of employees in the parent company and major subsidiaries is 1,634, with 795 in the parent company and 839 in subsidiaries[127]. - The company has a total of 413 employees with a bachelor's degree or higher, indicating a strong educational background among its workforce[127]. Financial Management - The company borrowed up to RMB 2.14 billion from its controlling shareholder to repay previous interest-bearing debts and supplement working capital[158]. - The company has a total of RMB 18,800 million in a trust financial product with a 5.00% return rate, which is currently not yet matured[167]. - The company has a total of RMB 4,000 million in a trust financial product with a 5.00% return rate, which is also not yet matured[167]. - The company has a total of RMB 5,000 million in a trust financial product with a 4.90% return rate, which is currently not yet matured[167]. - The company has a total of RMB 9,200 million in a trust financial product with a 4.90% return rate, which is also not yet matured[167].