NO.1 PHARMACY(SH:600833)2016-03-30 16:00Financial Performance - The company achieved a net profit of CNY 34,982,367.89 in 2015, with a 10% statutory surplus reserve of CNY 3,498,236.79, resulting in a distributable profit of CNY 31,484,131.10[2]. - The total revenue for 2015 was CNY 1,490,959,755.12, representing a year-on-year increase of 5.39% compared to CNY 1,414,745,420.49 in 2014[18]. - The net profit attributable to shareholders of the listed company was CNY 41,168,494.78, an increase of 11.19% from CNY 37,024,839.49 in the previous year[18]. - The company proposed a cash dividend of CNY 0.60 per 10 shares, totaling CNY 13,385,180.82, which accounts for 32.51% of the net profit attributable to shareholders[2]. - The net cash flow from operating activities increased significantly to CNY 48,821,433.94, up 154.29% from CNY 19,198,828.28 in 2014[18]. - The total assets at the end of 2015 were CNY 1,230,134,681.83, reflecting a 13.80% increase from CNY 1,080,979,885.54 in 2014[18]. - The net assets attributable to shareholders increased by 20.52% to CNY 776,083,617.66 from CNY 643,963,404.03 in the previous year[18]. - Basic earnings per share rose to CNY 0.18, a 5.88% increase from CNY 0.17 in 2014[19]. - The company reported a weighted average return on equity of 5.80%, down from 6.31% in the previous year[19]. Business Strategy and Operations - The company maintained a flexible adjustment of its business model and structure to adapt to market changes and enhance operational quality[25]. - The company implemented a dual-brand strategy with "First Pharmacy Chain" and "Huifeng Pharmacy," strengthening its regional recognition and brand penetration[32]. - The company emphasized performance management and market promotion for key products, improving their contribution to overall business performance[35]. - The company is exploring the "Internet+" business model to enhance service delivery and integrate with "cloud hospitals" for better customer engagement[32]. - The company has a significant presence in the Shanghai pharmaceutical distribution market, with its flagship store on Nanjing Road boasting over 5,000 square meters and nearly RMB 400 million in sales, leading the national retail industry[29]. - The company is focusing on compliance with GSP requirements and enhancing its operational capabilities through a qualified elite team[32]. - The company is committed to improving internal control and management systems, ensuring clearer responsibilities and enhancing safety management measures[36]. Market and Customer Insights - The online sales platform, First Pharmacy Online Mall, generated over RMB 12 million in revenue, contributing to the company's exploration of e-commerce models[35]. - The top five customers accounted for 19.24% of the total annual sales, indicating a concentrated customer base[43]. - The company's revenue from Shanghai's retail pharmacy reached approximately ¥672.27 million, showing a year-on-year growth of 1.11% compared to ¥664.90 million in the same period last year[54]. - The total area of the company's warehouses is approximately 11,000 square meters, primarily covering the Shanghai region, with unified logistics for both online and offline sales[54]. Financial Management and Risks - The company faces increasing pressure from rising labor costs and regulatory management costs, impacting its operational development[72]. - The company recognizes the need for transformation in response to the competitive pressures from e-commerce and aims to enhance the customer experience in physical stores[76]. - The company acknowledges financial risks associated with market competition and the need for strategic adjustments in resource distribution[76]. - The company is committed to improving its internal control systems and risk management capabilities to ensure safe and efficient operations[75]. - The company faces risks from policy changes that may affect retail pharmacy operations and competition in the healthcare market[76]. Shareholder and Capital Structure - The company approved a cash dividend of CNY 0.50 per 10 shares, totaling CNY 11,154,317.35 for the year 2014, based on a total share capital of 223,086,347 shares as of December 31, 2014[81]. - In 2015, the cash dividend payout ratio was 32.51%, with a total cash dividend of CNY 13,385,180.82, while the net profit attributable to shareholders was CNY 41,168,494.78[82]. - The company has maintained a consistent dividend policy, with cash dividends of CNY 11,154,317.35 in 2014 and CNY 13,385,180.82 in 2015, reflecting a commitment to returning value to shareholders[82]. - The total number of ordinary shareholders as of the end of the reporting period was 22,843, a decrease from 23,971 at the end of the previous month[94]. - The company has not experienced any changes in its ordinary share capital structure during the reporting period[90]. - The company has not engaged in any major related party transactions during the reporting period, ensuring transparency and compliance with regulations[86]. Human Resources and Governance - The company employed a total of 1,041 staff, with 295 in the parent company and 746 in major subsidiaries[113]. - The professional composition includes 709 sales personnel, 152 technical staff, 42 financial personnel, and 138 administrative staff[113]. - The company has not faced any penalties from securities regulatory agencies in the past three years[112]. - The board of directors and senior management's remuneration is determined based on performance evaluations conducted by the compensation and assessment committee[110]. - The company implemented a flexible compensation system in 2009, including annual salary, position salary, and supplementary salary, to attract and retain talent for sustainable development[116]. Accounting and Financial Reporting - The company adheres to the Chinese Accounting Standards, ensuring that the financial statements accurately reflect its financial position and operating results[167]. - The financial statements are prepared based on the going concern assumption, indicating the company's ability to continue operations for at least 12 months from the reporting date[165]. - The company recognizes the cash and cash equivalents as cash for preparing the cash flow statement, including cash on hand and deposits available for payment[180]. - The company uses an aging analysis method to assess bad debt provisions, with rates of 5% for receivables within 1 year, 10% for 1-2 years, 20% for 2-3 years, and 100% for over 3 years[190]. - The company maintains a policy for recognizing and measuring financial instruments based on fair value, with changes in fair value affecting profit or loss[185].