CBEST(SH:600729)2015-04-03 16:00Financial Performance - The total profit for 2014 was CNY 590.36 million, with a net profit attributable to shareholders of CNY 491.66 million, representing a decrease of 39.93% compared to the previous year[2]. - The company's operating revenue for 2014 was CNY 30.14 billion, a decline of 3.94% from CNY 31.38 billion in 2013[24]. - The net cash flow from operating activities was negative CNY 116.73 million, a significant decrease of 136.93% compared to the previous year's positive cash flow[24]. - The total assets at the end of 2014 were CNY 11.73 billion, down 4.24% from CNY 12.25 billion at the end of 2013[24]. - The company's net assets attributable to shareholders increased by 3.67% to CNY 4.56 billion compared to CNY 4.40 billion in 2013[24]. - The proposed cash dividend for 2014 is CNY 3.65 per 10 shares, totaling CNY 148.38 million for all shareholders[2]. - Basic earnings per share were CNY 1.21, representing a 44.75% decrease compared to CNY 2.19 in 2013[32]. - The net profit attributable to the parent company was CNY 492 million, a decline of 39.93% year-on-year[32]. - The total profit for the year was CNY 590 million, down 38.98% from the previous year[32]. Revenue and Sales - In 2014, the company achieved operating revenue of CNY 30.14 billion, a decrease of 3.94% compared to CNY 31.38 billion in 2013[36]. - Department store revenue decreased by 5.39%, supermarket revenue decreased by 7.54%, while electrical appliance revenue increased by 1.14%[39]. - The company’s revenue from the Sichuan region increased by 9.29%, while revenue from the Chongqing region decreased by 6.01%[54]. - The company is in the early stages of developing new businesses such as e-commerce and cross-border e-commerce, which have not yet significantly impacted revenue and profit[40]. Investments and Acquisitions - The company completed the acquisition of 100% equity in Shangshe Xinke and Shangshe Electronics, impacting the financial statements due to adjustments in the consolidated balance sheet[26]. - The company completed the acquisition of 100% equity in Chongqing Shansha Information Technology Co., Ltd. and Chongqing Shansha Electronic Sales Co., Ltd., making them wholly-owned subsidiaries[62]. - The company made a total of 289.18 million yuan in equity investments during the year, with a year-on-year increase of 80.58%[61]. - The company invested 90 million yuan to hold 30% of the registered capital in Chongqing Ma Shang Consumer Finance Co., Ltd., which has a total registered capital of 300 million yuan[61]. Cash Flow and Financial Management - The net cash flow from operating activities was negative CNY 116.73 million, a decline of 136.93% compared to the previous year[37]. - The company’s cash and cash equivalents decreased by 29.63% compared to the previous period, amounting to 373.56 million yuan[55]. - The company’s investment activities generated a net cash inflow of 83.40% compared to the previous period, due to the transfer of some fixed deposits to current accounts[46]. - The company reported a cumulative usage of raised funds amounting to RMB 59.74 million, with a net interest income of RMB 3.17 million from bank deposits[71]. Strategic Initiatives - The company launched online trading platforms "Shiji Gou" and "Shiji Xiu" in September and October 2014, marking a significant step in e-commerce[32]. - The company established a joint venture for smart home business and obtained direct supply qualifications from Samsung, enhancing sales scale and gross profit[33]. - The company is expanding its market presence in the southwestern region of China, aiming to become the largest and most efficient retail group in that area[76]. - The company is focusing on supply chain improvements and exploring new business models, including financial services, to create new profit growth points[77]. Governance and Compliance - The company has revised its profit distribution policy to ensure transparency and protect the rights of minority shareholders, allowing for a diversified approach to returning value to investors[85]. - The company has committed to actively implementing its cash dividend policy in line with its financial situation to provide reasonable returns to investors[85]. - The company has outlined its commitment to maintaining compliance and transparency in its financial practices, ensuring the protection of shareholder interests[85]. - The governance structure complies with the requirements of the Company Law and the Securities Law, ensuring transparency and protection of shareholder rights[193]. Legal Matters - The company has faced several legal disputes, including a case involving employee fund misappropriation and another regarding property infringement, which have been disclosed in interim reports[89]. - The company is involved in a legal dispute with Chongqing Dashing Asset Management Group Co., Ltd., claiming damages of 3.75 million yuan for unilateral contract termination[97]. - The company has ongoing litigation related to labor compensation claims, with one case involving a total claim of 247,000 RMB for damages due to an injury sustained during work[95]. - The company has ongoing litigation regarding lease agreements with multiple parties, impacting its financial obligations[98]. Employee and Management Structure - The total number of employees in the parent company is 9,263, while the main subsidiaries employ 13,215, resulting in a total of 22,478 employees[186]. - The total compensation paid for outsourced labor amounted to 23,019.76 thousand yuan, indicating a significant year-on-year increase[191]. - The company has a diverse board with members holding various positions, including independent directors and supervisors, contributing to governance[175]. - The company has seen changes in its board composition with several members departing and new appointments made[175]. Future Outlook - The company plans to achieve a revenue target of 32,082 million RMB and a total profit of 663 million RMB for 2015, indicating a growth strategy focused on improving operational quality and efficiency[77]. - The company provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 12%[177]. - New product launches are expected to contribute an additional 200 million yuan in revenue over the next fiscal year[177]. - Market expansion plans include entering two new provinces, which are projected to increase market share by 5%[177].