The company's 2020 revenue decreased 55.87% year-on-year, and Guimo's net profit was 386 million yuan. The company announced its 2020 annual report: 2020 achieved operating income of 5.412 billion yuan, a decrease of 55.87% over the previous year; realized net profit of -386 million yuan, converted into fully diluted EPS of -0.74 yuan, and achieved net profit of -426 million yuan after deducting non-Gumo's net profit of -426 million yuan.
Looking at a single-quarter split, 4Q2020 achieved operating income of 1,548 million yuan, a decrease of 49.25% over the previous year; achieved net profit of -187 million yuan, converted into a fully diluted EPS of -0.36 yuan; and achieved net profit of -179 million yuan after deducting non-homogenous income.
The company's consolidated gross margin increased 14.58 percentage points in 2020, and the cost rate for the period increased 19.14 percentage points. The company's comprehensive gross margin in 2020 was 35.18%, up 14.58 percentage points from the previous year. Looking at a single-quarter split, 4Q2020's comprehensive gross margin was 37.06%, up 15.89 percentage points from the previous year.
The company's expense ratio in 2020 was 37.31%, an increase of 19.14 percentage points over the previous year. Among them, the sales/management/finance expenses ratio was 28.32%/4.92%/4.08%, respectively, a year-on-year change of 14.81/2.47/1.85 percentage points respectively. The 4Q2020 company's expenses rate for the period was 36.84%, up 17.97 percentage points from the previous year. Among them, the sales/management/finance expenses ratio was 28.49%/4.95%/3.39%, respectively, and the year-on-year changes of 14.10/ 2.37/ 1.49 percentage points respectively.
Rent reduction led to pressure on the revenue side. Deepening reforms and online business went hand in hand to seek breakthroughs. During the reporting period, the company implemented national and local government rent reduction policies for tenants during the COVID-19 pandemic, reducing rent by 178 million yuan for tenants, leading to a 55.87% year-on-year decline in revenue. In order to seek a breakthrough, the company introduced 361 assessments, implemented performance assessments for all employees, strengthened cost-side control, and consolidated gross margin increased 14.58 percent year-on-year during the reporting period. At the same time, it strengthened the online business development process, launched the FAS system to promote informatization construction and accelerate the integration of Ginza into stores. Deadline At the end of 2020, the company's online sales revenue was 92.94 million yuan.
Maintain profit forecasts and maintain “increase holdings” ratings
We maintain our 2021/2022 EPS forecast of 0.08/0.10 yuan respectively, adding 0.12 yuan to the 2023 forecast. As the company deepens reforms and strengthens cost-side control, online business is expected to become room for the company to further grow and maintain its “increase holdings” rating.
Risk warning
Some store leases cannot be renewed when they expire, and the pace of new business formats and new store expansion falls short of expectations