Hongqi Chain(002697)2022-04-01 16:00Financial Performance - The company reported a total revenue of 1,360,000,000 RMB for the year 2021, with a cash dividend of 0.14 RMB per 10 shares distributed to all shareholders[7]. - The company's operating revenue for 2021 was ¥9.35 billion, an increase of 3.29% compared to ¥9.05 billion in 2020[30]. - The net profit attributable to shareholders for 2021 was ¥481.33 million, a decrease of 4.66% from ¥504.87 million in 2020[30]. - The net profit after deducting non-recurring gains and losses was ¥438.55 million, down 4.01% from ¥456.86 million in 2020[30]. - The net cash flow from operating activities increased by 109.52% to ¥1.04 billion from ¥494.65 million in 2020[30]. - The total assets at the end of 2021 were ¥7.53 billion, representing a 22.95% increase from ¥6.12 billion at the end of 2020[30]. - The company achieved a net profit of ¥4.81 billion in 2021, primarily impacted by a slight decrease in gross profit margin due to market challenges[47]. - The company reported a basic earnings per share of ¥0.35, down 5.41% from ¥0.37 in 2020[30]. - The weighted average return on equity was 13.40%, a decrease of 2.18% from 15.58% in 2020[30]. - The total sales revenue for 2021 reached ¥9,351,070,833.62, representing a year-on-year increase of 3.29% compared to ¥9,053,380,331.60 in 2020[62]. - The total operating costs for 2021 amounted to ¥6,576,931,125.49, which is a 2.97% increase from ¥6,387,371,423.22 in 2020[63]. Store Operations - The company had 3,602 stores as of December 31, 2021, with a sales revenue of ¥10.46 billion, a steady increase of 3.35% year-on-year[47]. - The company opened 412 new stores in 2021 while closing 146 stores, and upgraded 193 existing stores, indicating a strategic focus on optimizing store performance[58]. - The company’s store network consists of 3,602 locations, primarily concentrated in the Chengdu area, with a significant presence in 23 districts[57]. - The company plans to expand its store network with a target of opening 1,000 new stores in three years, focusing on both new openings and adjustments to underperforming stores[94]. Customer Engagement - The company’s registered membership exceeded 5 million, with in-store customer visits surpassing 400 million, highlighting strong customer engagement[54]. - The sales revenue from food products was approximately ¥4.45 billion, accounting for 47.55% of total revenue, while tobacco and alcohol sales increased by 14.38% year-on-year[59]. Strategic Focus and Risks - The company has outlined potential risks in its future development outlook, which investors should pay attention to[7]. - The company faces risks from macroeconomic trends that could impact consumer demand, with a potential slowdown in economic growth affecting consumer confidence[94]. - Rising operational costs, including rental and labor expenses, pose a significant risk to the company's profitability[95]. - The retail industry is highly competitive, and the company is adopting a differentiated competition strategy to maintain its market position[95]. Governance and Management - The company has a structured governance framework, including rules for shareholder meetings, board meetings, and supervisory meetings[107]. - The company maintains complete independence from its controlling shareholder in terms of business operations, personnel, assets, and financial management[112]. - The company has established an independent financial accounting system and does not share bank accounts with its controlling shareholder[113]. - The management team includes experienced professionals with backgrounds in finance, management, and academia, enhancing the company's strategic capabilities[124][125]. - The company has a commitment to transparency in its financial reporting and governance practices[135]. Shareholder Engagement - The company held 2 shareholder meetings during the reporting period, ensuring compliance with legal regulations and providing institutional protection for minority shareholders[107]. - The annual shareholder meeting had a participation rate of 28.36% on April 29, 2021[114]. - The first extraordinary shareholder meeting of 2021 had a participation rate of 28.21% on September 7, 2021[114]. - The total shareholding of 327,420,000 shares held by the chairwoman accounted for 24.08% of the total share capital[123]. - The company reported a cash dividend of 0.14 CNY per 10 shares, totaling 19,040,000 CNY for the reporting period[160]. Corporate Social Responsibility - The company donated over 100 million yuan to social welfare and charity initiatives, with the chairman personally contributing over 20 million yuan[179]. - In 2021, the company paid over 500 million yuan in taxes and social security contributions[179]. - The company is actively involved in the community and maintains a strong corporate social responsibility profile[130]. - The company engaged in rural revitalization efforts, signing strategic cooperation agreements to support modern agriculture and directly purchasing thousands of tons of fruits and vegetables from local farmers[184]. Internal Controls and Compliance - The company has established a comprehensive internal control system, ensuring effective governance and management practices[164]. - There were no significant internal control deficiencies identified during the reporting period[165]. - The internal control audit report issued by the accounting firm confirmed that the company maintained effective financial reporting controls as of December 31, 2021[172]. - The company has no significant differences in governance practices compared to the regulations set by the China Securities Regulatory Commission[109]. Employee Management - The total number of employees at the end of the reporting period was 15,954, with 4,902 in the parent company and 11,052 in major subsidiaries[151]. - The company emphasizes a salary distribution system that links compensation to job responsibilities and individual performance[155]. - The training plan includes enhancing employee skills in areas such as management techniques and cost management[156]. Financial Adjustments and Standards - The company implemented the new leasing standard starting January 1, 2021, affecting the measurement of lease liabilities and right-of-use assets[196]. - As a lessee, the company recognized a right-of-use asset of approximately ¥1.35 billion and lease liabilities of approximately ¥752.59 million as of January 1, 2021[198]. - The company reported a decrease in prepaid expenses by approximately ¥185.48 million due to the adoption of the new leasing standard[198]. - The company did not change its accounting firm during the reporting period[200].