S.Y.C.C.(SH:600306)2014-04-15 16:00Financial Performance - The company reported a net profit of -261.99 million RMB for the year 2013, resulting in a cumulative undistributed profit of -195.36 million RMB[7]. - Basic and diluted earnings per share for 2013 were both -1.56 RMB, a decrease from -0.72 RMB in 2012[23]. - The weighted average return on equity was -78.27% in 2013, compared to -31.23% in 2012[23]. - The company did not propose any profit distribution or capital reserve transfer due to the overall loss in 2013[7]. - The net profit attributable to shareholders was a loss of CNY 277,327,986, worsening from a loss of CNY 128,442,720 in 2012[25]. - The net cash flow from operating activities was negative CNY 191,928,640, a significant decline from a positive cash flow of CNY 23,012,314 in 2012, representing a decrease of 934.03%[25]. - The company reported a gross profit of CNY 79,060,000, an increase of 13.98% from CNY 69,360,000 in the previous year[26]. - The company faced severe market saturation and increased competition, leading to a decline in sales quality and a decrease in gross margin[27]. - The company achieved an actual operating revenue of ¥1,860 million, which is 85% of the planned target of ¥2,200 million for the year[38]. - The net profit for the current period is -128,442,720.53 RMB, compared to -1,128,740.91 RMB in the same period last year, indicating a significant decline in profitability[159]. Assets and Liabilities - The total assets were reported at 52,345.66 million RMB, with total liabilities of 22,418.44 million RMB, resulting in net assets of 29,927.22 million RMB[19]. - The company's total assets increased by 4.41% to CNY 3,537,804,726.85 at the end of 2013, compared to CNY 3,388,496,396.09 at the end of 2012[25]. - The company experienced a significant decline in net assets, which dropped by 86.36% to CNY 67,238,774.56 at the end of 2013 from CNY 492,968,885.29 at the end of 2012[25]. - The total liabilities increased to CNY 3,364,564,498.14 from CNY 2,750,170,802.71, representing a rise of about 22.3%[138]. - The total owner's equity decreased to CNY 173,240,228.71 from CNY 638,325,593.38, reflecting a decline of about 72.9%[139]. Operational Strategies - The company has maintained its main business without significant changes since its listing[19]. - In 2013, the company introduced 136 new brands while eliminating 104 underperforming brands to improve its product offerings[31]. - The company conducted 28 major marketing activities throughout the year, which accounted for over 80% of total sales, helping to stabilize market share[32]. - The company plans to enhance its market position by leveraging its location advantages and improving operational efficiency in response to competitive pressures[45]. - The company aims to innovate its marketing strategies in 2014, focusing on new target identification and resource utilization to enhance marketing efficiency[65]. Management and Governance - The company has engaged Da Hua Accounting Firm to provide a standard unqualified audit report for the financial year[6]. - The company has a policy to actively distribute profits in cash when there are no major investment plans or cash expenditures, ensuring that the distribution does not exceed the cumulative distributable profits[78]. - The board of directors is required to consider the company's ongoing operational capacity and funding needs before proposing cash dividends[79]. - The company has established independent operations for its board of directors and supervisory board, ensuring they can operate independently and assume their own responsibilities and risks[116]. - The company has implemented a governance structure that complies with the requirements of the China Securities Regulatory Commission[116]. Market Conditions - The overall economic environment is expected to continue low-speed growth, with structural issues persisting, impacting the retail market dynamics[54]. - The retail market in Shenyang is facing challenges such as oversupply and rising operational costs, necessitating a transformation in business models[55]. - The company faces intense competition in a saturated market, with issues such as unclear positioning and long payment cycles affecting operational efficiency[59]. - The company recognized the importance of adapting to rapid changes in consumer preferences and market trends to ensure survival and growth[71]. Future Outlook - The company plans to achieve annual revenue not lower than last year and aims for a total gross profit not less than last year, with a goal to turn losses into profits by year-end[63]. - The company plans to enhance its internal control system in accordance with the requirements of the Basic Norms for Internal Control of Enterprises[128]. - The company aims to improve team quality through ongoing vocational training and enhancing employee morale[73]. - The company plans to focus on improving profitability and managing costs in the upcoming fiscal year[159]. Shareholder Information - The total number of shareholders at the end of the reporting period was 12,445, compared to 13,466 five trading days before the annual report disclosure[96]. - The top ten shareholders hold a total of 100,000,000 shares, with the largest shareholder, Zhongzhao Investment Management Co., Ltd., owning 31,140,487 shares, representing 17.48% of total shares[96]. - The actual controller, Zhang Yuwen, controls a total of 43,198,604 shares, accounting for 24.25% of the company's total shares[101]. - The company has not experienced any changes in its controlling shareholder or actual controller during the reporting period[99]. Employee and Management Structure - The total number of employees in the parent company is 454, while the total number of employees in major subsidiaries is 294, resulting in a combined total of 748 employees[112]. - The company has established a normal salary growth mechanism and will adjust employee salaries based on performance and economic conditions[113]. - The total remuneration for the board members and senior management during the reporting period amounted to 3.91 million yuan[105]. - The company has seen significant changes in its board composition, with multiple members serving since 2007, indicating stability in leadership[106]. Financial Reporting and Compliance - The financial statements are prepared based on the going concern principle and comply with the accounting standards set by the Ministry of Finance[171]. - The company has not reported any changes in accounting policies or prior period error corrections during the current reporting period[162]. - The company follows specific accounting treatments for mergers and acquisitions, including the recognition of goodwill when the acquisition cost exceeds the fair value of identifiable net assets[175]. - The company recognizes impairment losses on available-for-sale financial assets by transferring cumulative losses from equity to profit or loss when the fair value declines[188].