NO.1 PHARMACY(SH:600833)2015-03-30 16:00Financial Performance - The company achieved a net profit of CNY 36,250,484.93 for the year 2014, with a distributable profit of CNY 113,400,525.28 at year-end after accounting for dividends [2]. - Total revenue for 2014 was CNY 1,414,745,420.49, representing a year-on-year increase of 4.92% [22]. - The net profit attributable to shareholders increased by 8.05% to CNY 37,024,839.49 compared to 2013 [22]. - The net cash flow from operating activities surged by 194.46% to CNY 19,198,828.28, compared to CNY 6,519,981.05 in 2013 [22]. - The company's total assets reached CNY 1,080,979,885.54, a 17.22% increase from the previous year [22]. - The net assets attributable to shareholders rose by 21.70% to CNY 643,963,404.03 at the end of 2014 [22]. - Basic earnings per share increased by 13.33% to CNY 0.17 in 2014 [23]. - The company proposed a cash dividend of CNY 0.50 per 10 shares, totaling CNY 11,154,317.35, which is 30.13% of the net profit attributable to shareholders [2]. - The weighted average return on equity decreased by 0.4 percentage points to 6.31% in 2014 [23]. Revenue and Costs - The company achieved operating revenue of CNY 1,414,745,420.49, representing a year-on-year increase of 4.92% [29]. - The main business revenue reached CNY 1,362,647,175.09, with a year-on-year growth of 5.13% [41]. - Total operating costs amounted to CNY 1,372,355,307.09, up from CNY 1,309,996,147.96, reflecting a year-over-year increase of 4.7% [142]. Market Presence and Customer Relations - The company expanded its market presence by launching an online flagship store on the Tmall platform, enhancing its e-commerce capabilities [30]. - The company’s top five customers accounted for 16.89% of total annual sales, amounting to CNY 238,991,079.33 [35]. - The company’s top five suppliers represented 41.89% of total annual purchases, totaling CNY 780,716,250.08 [37]. Assets and Liabilities - The company's accounts receivable decreased by 100% to ¥320,000, primarily due to the maturity of held bills [45]. - Prepayments decreased by 52.35% to ¥2,903,457.36, reflecting a shift to inventory [45]. - Other current assets increased by 109.54% to ¥12,657,657.80, mainly due to an increase in unrecoverable VAT [45]. - Available-for-sale financial assets rose by 54.70% to ¥334,494,230.72, attributed to the appreciation of held stocks [45]. - Deferred income tax liabilities increased by 64.96% to ¥75,302,653.94, also linked to the rise in stock prices [45]. - Total liabilities reached ¥430,009,165.62, up from ¥386,066,612.90, which is an increase of about 11.4% [136]. - Current liabilities increased to ¥340,372,104.88 from ¥325,704,988.03, showing a rise of approximately 4.1% [136]. Strategic Initiatives and Future Plans - The company anticipates limited growth in wholesale operations due to healthcare reform policies and market demand changes [58]. - The company plans to enhance its service offerings and expand into the health market by leveraging its multiple commercial brands and retail capabilities [59]. - In 2015, the company aims to optimize product management and strengthen supply chain construction to meet market demands [61]. - The company plans to implement a cash dividend policy where the total cash dividends distributed will not be less than 30% of the net profit attributable to shareholders for the year [67]. Governance and Compliance - The company has maintained a stable relationship with its accounting firm, which has been engaged for 7 years, ensuring consistent financial oversight [75]. - There were no significant legal disputes or penalties imposed on the company or its executives during the reporting period [76]. - The company strictly adhered to internal control and risk management regulations, enhancing its governance structure [111]. - The internal control system was found to be effective, with no significant defects identified as of the evaluation report date [121]. Human Resources - The number of employees in the parent company was 311, while the total number of employees in the parent and major subsidiaries was 1,083 [106]. - The company implemented a comprehensive training plan aimed at enhancing the overall quality of its human resources [108]. Financial Reporting and Accounting Policies - The financial statements for the year ended December 31, 2014, were prepared in accordance with accounting standards and fairly reflect the company's financial position [132]. - The company has not experienced any significant errors in its annual report disclosures during the reporting period [125]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring that financial statements reflect the true financial condition and operating results [166]. Investment and Shareholder Relations - The company has a total of 20,197 shareholders as of the end of the reporting period, an increase from 19,127 prior to the report [86]. - The top shareholder, Shanghai New Road Commercial (Group) Co., Ltd., holds 52,185,126 shares, representing 23.39% of the total shares [88]. - The company has not issued any securities or undergone any changes in share structure in the past three years [82].