Wangfujing(SH:600859)2014-03-21 16:00Financial Performance - In 2013, the company achieved a net profit of RMB 872,208,469.79, with a proposed distribution of cash dividends amounting to RMB 231,384,044, translating to RMB 5 per 10 shares[4]. - Basic earnings per share for 2013 were RMB 1.500, reflecting a 3.09% increase from RMB 1.455 in 2012[26]. - The weighted average return on equity decreased to 11.335% in 2013 from 11.876% in 2012, a decline of 0.541 percentage points[26]. - The company proposed to allocate 10% of the net profit to statutory reserves, amounting to RMB 87,220,846.98, and 30% to discretionary reserves, totaling RMB 261,662,540.94[4]. - The retained earnings at the beginning of the year were RMB 964,520,355.38, after accounting for the dividend distribution[4]. - The company reported a decrease in the basic earnings per share after deducting non-recurring gains and losses, which was RMB 1.273, down 11.21% from RMB 1.434 in 2012[26]. - The company achieved operating revenue of CNY 19,789,850,572.62 in 2013, representing an 8.35% increase year-on-year[32]. - The net profit attributable to shareholders was CNY 694,084,547.35, a 3.09% increase compared to the previous year[32]. - The net profit excluding non-recurring gains and losses decreased by 11.21% to CNY 589,135,586.12[32]. - The company's cash flow from operating activities was CNY 924,992,541.07, down 46.82% from the previous year[32]. - The gross profit margin for the department store business was 17.86%, an increase of 0.35 percentage points year-on-year[32]. - The operating cost for the period was approximately RMB 15.87 billion, reflecting a year-on-year increase of 7.72%[41]. - Sales expenses increased by 19.81% year-on-year, amounting to approximately RMB 2.12 billion, primarily due to new store openings and increased rental and renovation costs[43]. Business Operations - The company has maintained its main business in the department store retail sector since its listing, with no changes reported[20]. - The company opened new stores, increasing its operational area by 110,000 square meters, with the Xining 2 store achieving profitability in the current market environment[35]. - The company launched its online mall and introduced a mobile app and WeChat service, enhancing its online and offline integration[34]. - The company reported a 2.61% same-store sales growth, with jewelry and cosmetics showing the fastest growth among product categories[38]. - The company adjusted its marketing strategies to enhance customer experience and integrated online and offline marketing efforts[33]. - The company has successfully expanded its store network across seven major economic regions in China, with a total of 29 stores[59]. - The company has over 3 million loyal members, contributing nearly 50% of total sales[60]. Investments and Projects - The company invested ¥220 million in external equity projects, a decrease of 97.70% compared to the previous year[61]. - The company has invested in various trust projects with expected annualized returns ranging from 9% to 11%[63]. - The company has invested a total of 1.93 billion RMB in trust projects, accounting for 30.81% of the equity attributable to the parent company as of December 31, 2013[65]. - The company has allocated 31.37 million RMB for the renovation of the West Annex of the Department Store, with total expenditures of 34.07 million RMB[71]. - The company has invested 65.7 million RMB in its e-commerce project, which has generated a loss of 27.75 million RMB to date[73]. - The company has completed the renovation of the Changsha store, with total investment reaching 46.78 million RMB against a budget of 40 million RMB[71]. - The company has invested 15.93 million RMB in the Chongqing Jiefangbei store renovation, with remaining funds of 34.07 million RMB for future use[72]. - The company has completed the renovation of the Xining Store, with total investment of 30.63 million RMB[72]. - The company has invested about 4 million yuan in its e-commerce project as part of its omnichannel strategy[96]. Strategic Initiatives - The company plans to enhance its retail strategy by focusing on internet thinking and transforming its business model across four dimensions: operational capability, omnichannel strategy, organizational structure, and business development[87]. - The company aims to improve customer management and product management capabilities through deep cooperation and big data analysis[88]. - Future development will include expanding into shopping centers and outlet stores while innovating existing department stores to enhance service functions[89]. - The company will prioritize quality projects and focus on regional market conditions to drive growth and efficiency[89]. - The organization will undergo structural adjustments to support strategic transformation and enhance operational efficiency[89]. - The company anticipates that the global economic environment will continue to present challenges, impacting the retail market[85]. - The retail industry is undergoing significant changes due to the internet revolution, which is altering consumer behavior and expectations[86]. Governance and Management - The company has a diverse board with independent directors holding various academic and professional positions, enhancing governance[152]. - The company is committed to maintaining transparency and accountability through its governance structure[154]. - The total compensation for directors, supervisors, and senior management during the reporting period amounted to 13.86 million yuan[162]. - The company implemented a salary system for senior management, which includes a basic income and performance-based income[162]. - The board of directors consists of 11 members, including 4 independent directors, meeting the legal requirements for board composition[174]. - The company has established a comprehensive internal control system, covering operational management, financial management, and comprehensive management, ensuring risk prevention and governance[178]. - The internal control system includes 73 business processes at headquarters with 398 control points and 10 business processes at stores with 322 control points, which have been tested and improved[192]. - The company has established information disclosure systems to ensure timely and accurate reporting, enhancing transparency and protecting shareholder rights[179]. Social Responsibility - The company actively engaged in social responsibility initiatives, donating CNY 1 million to support earthquake relief efforts in Sichuan[104]. - The company implemented energy-saving measures, resulting in savings of over CNY 6 million in electricity costs and a reduction of 1,043 tons of CO2 emissions in 2013[105]. Legal and Compliance - The company faced a legal settlement involving a payment of CNY 48 million to resolve a borrowing guarantee dispute, which will not impact its financial performance for the year[110]. - The company has not faced any penalties or criticisms from the China Securities Regulatory Commission during the reporting period[123]. - The company’s financial results and operational status were not adversely affected by related party debts and credits[114].