EASYHOME(SZ:000785)2020-04-29 16:00Asset Restructuring - The company completed a major asset restructuring by acquiring 100% equity of the home furnishing chain for a valuation of CNY 356.5 million, with shares issued at CNY 6.18 per share, resulting in 5,768,608,403 shares being registered[5]. - The company completed the acquisition of 100% equity in a home furnishing chain in December 2019, leading to a change in actual control[17]. - The major asset restructuring was approved by the China Securities Regulatory Commission on November 28, 2019, involving the acquisition of 100% equity in a home furnishing chain[135]. - The company is in the process of a significant asset restructuring involving the acquisition of 100% equity of Beijing Juran Home New Retail Chain Group Co., Ltd[174]. - The company guarantees the authenticity and completeness of the information provided for the major asset restructuring, assuming responsibility for any misrepresentation[158]. - The company has committed to maintaining the independence of Wuhan Zhongshang's management and financial personnel, ensuring no dual roles or compensation from controlled enterprises[161]. - The company guarantees that the shares obtained from the restructuring will be prioritized for performance compensation commitments and will not be pledged to evade obligations[175]. Financial Performance - The home furnishing chain achieved a net profit attributable to the parent company of CNY 2,117.3752 million in 2019, fulfilling the performance commitment for the year[6]. - The company's operating revenue for 2019 was approximately ¥9.08 billion, representing a 7.94% increase from ¥8.42 billion in 2018[17]. - The net profit attributable to shareholders for 2019 was approximately ¥3.13 billion, a significant increase of 60.08% compared to ¥1.95 billion in 2018[17]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥2.09 billion, up 13.56% from ¥1.84 billion in 2018[17]. - The company reported a basic earnings per share of ¥0.54 for 2019, reflecting a 50% increase from ¥0.36 in 2018[17]. - The company reported a net profit attributable to shareholders of the parent company for 2019 of RMB 3,125,866,652.17, with a net profit of RMB 74,759,481.76 for the parent company[127]. - The net profit attributable to the parent company for the years 2019, 2020, and 2021 is projected to be no less than CNY 2,060.27 million, CNY 2,416.02 million, and CNY 2,719.40 million respectively[153]. Dividend Distribution - The company plans to distribute a cash dividend of CNY 0.78 per 10 shares based on a total share capital of 6,019,830,101 as of December 31, 2019[6]. - The proposed cash dividend for 2019 is RMB 0.78 per 10 shares, totaling RMB 469,546,747.88, which accounts for 15.02% of the net profit attributable to shareholders[127][130]. - The cumulative cash dividends distributed over the last three years amount to RMB 519,791,087.48, with a cash dividend payout ratio of 15.02% in 2019 and 14.05% in 2017[130]. - The company has a policy to distribute at least 30% of the average distributable profit over the last three years as cash dividends, provided cash dividend conditions are met[122]. Store Operations and Expansion - As of December 31, 2019, the company operated 355 home furnishing stores across 29 provinces, including 92 direct-operated and 263 franchised stores[25]. - The company added 77 new home furnishing stores in 2019, bringing the total number of operating stores to 355 by the end of the year[40]. - The company plans to continue expanding its market presence through new store openings and franchise agreements[53]. - The company opened 41 new stores in 2019, with a total operational area of approximately 1,000,000 square meters[54]. - The company is expanding its presence in various provinces, including Hunan, Fujian, and Inner Mongolia, to enhance market reach[54]. - The company employs a franchise model for most of its new stores, allowing for rapid expansion with lower capital expenditure[55]. Digital Transformation and Technology - The company is collaborating closely with Alibaba to enhance online and offline integration, including the development of a new retail POS system and a digital sales system[35]. - The company completed the digital transformation of 110 smart stores by the end of 2019, integrating various aspects such as products, membership, and payment[43]. - The company is actively developing a smart logistics and distribution system to enhance its supply chain capabilities, leveraging technologies such as AI and big data[36]. - The company is focusing on digital transformation by leveraging local stations and Taobao live streaming to create an online-offline consumption loop[108]. Market Trends and Economic Factors - The national GDP growth rate was 6.1% in 2019, with retail sales of consumer goods reaching 41.16 trillion CNY, growing by 8.0% year-on-year[26]. - The urbanization rate in China reached 60.60% in 2019, indicating a steady increase that drives demand in the home furnishing industry[98]. - The disposable income of urban residents increased from ¥26,955 in 2013 to ¥42,359 in 2019, with a compound annual growth rate of 7.82%, enhancing consumer demand for higher-quality home products[99]. - The retail sales of social consumer goods in China reached ¥41.16 trillion in 2019, growing by 8.0% year-on-year, with furniture sales increasing by 5.1%[97]. Compliance and Governance - The company has committed to maintaining compliance with all legal and regulatory obligations, ensuring no major violations in the past three years[139]. - The company has not engaged in any illegal fund occupation or external guarantees in the last 36 months[139]. - The company has confirmed that it has not been subject to any administrative penalties or criminal charges in the last five years[169]. - The company has committed to fulfilling all legal disclosure obligations and ensuring no undisclosed contracts or agreements exist[145]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 12% to 15%[188]. - The company plans to open at least 70 new home improvement stores in 2020 to expand market share amid industry challenges[107]. - The company aims to develop self-operated businesses, including home decoration and smart home malls, targeting 2,000 construction projects in 2020[109]. - The company is committed to a "light asset" chain development model, focusing on expanding in core cities and penetrating lower-tier markets[104].