NO.1 PHARMACY(SH:600833)2018-03-30 16:00Financial Performance - The company achieved a net profit of CNY 39,329,198.46 for the year 2017, with a proposed cash dividend of CNY 0.60 per share, totaling CNY 13,385,180.82, which represents 30.79% of the net profit attributable to shareholders[5]. - Total revenue for 2017 was CNY 1,556,146,205.50, reflecting a year-on-year increase of 2.44% compared to CNY 1,519,029,397.09 in 2016[19]. - The net profit attributable to shareholders decreased by 5.56% to CNY 43,476,771.21 in 2017 from CNY 46,034,162.49 in 2016[19]. - Basic earnings per share for 2017 were CNY 0.19, a decrease of 9.52% from CNY 0.21 in 2016[20]. - The weighted average return on equity for 2017 was 6.06%, slightly down from 6.12% in 2016[20]. - The company reported a decrease in investment income by 31.78%, from CNY 7,185,414.12 to CNY 4,902,120.18 due to reduced dividends received[44]. - The company reported a comprehensive income total of CNY -6,315,190.59, compared to CNY -33,709,642.40 in the previous year, showing an improvement[164]. - The comprehensive income for the year was a loss of CNY 79,743,804.89, with a profit distribution to owners of CNY -13,385,180.82[176]. Cash Flow and Assets - The company reported a significant increase in net cash flow from operating activities, which rose by 230.14% to CNY 120,074,112.58 in 2017, compared to CNY 36,371,167.84 in 2016[19]. - The company’s cash and cash equivalents increased by 42.11% to CNY 323,804,685.79, compared to CNY 227,848,364.80 at the end of the previous year[48]. - The company’s inventory decreased by 30.54% to CNY 205,858,956.68 from CNY 296,355,701.07 in the previous year[48]. - The total assets of the company at the end of 2017 were CNY 1,135,968,181.87, down 4.16% from CNY 1,185,287,123.94 at the end of 2016[19]. - The company’s total assets as of December 31, 2017, were RMB 1,135.97 million, a decrease of 4.16% from the beginning of the year[35]. - The total value of accounts receivable was RMB 155,526,257.19, with a bad debt provision of RMB 7,906,917.52[149]. - The inventory value as of December 31, 2017, was RMB 207,348,505.49, with an impairment provision of RMB 1,489,548.81[148]. Liabilities and Equity - The company’s liabilities totaled RMB 421.90 million, down by 2.38% compared to the beginning of the year[35]. - Total liabilities decreased to CNY 421,903,306.42 from CNY 449,291,013.61, showing a decline of about 6.09%[158]. - Total equity decreased to CNY 714,064,875.45 from CNY 735,996,110.33, a decrease of approximately 2.94%[158]. - The total equity attributable to the parent company at the end of the year was CNY 783,090,933.55, a decrease of CNY 47,094,823.22 compared to the previous year[176]. - The company’s total equity at the beginning of the year was CNY 738,387,899.22, which decreased by CNY 25,997,726.63 during the year[178]. Operational Developments - The company has initiated the "Health Station" project to explore resource application and enhance service professionalism[27]. - The company is actively preparing for the implementation of the "Two Invoice System" by enriching hospital supply varieties and strengthening key product sales[33]. - The company has improved its information systems and logistics capabilities to enhance operational quality and risk management[34]. - The company aims to enhance its regional advantages and market influence, promoting continuous upgrades in market position[66]. - The company plans to deepen the application of information technology by building a "cloud health platform" to integrate professional services and operations[72]. Risk Management and Compliance - The company has outlined potential market and operational risks in its report, advising investors to be cautious[7]. - The company faces risks from industry policies, including the implementation of zero-markup drug sales in public hospitals, which may impact retail drug enterprises[74]. - The company ensured compliance with corporate governance requirements as per the regulations of the China Securities Regulatory Commission[136]. - The company strictly adhered to insider information management regulations, ensuring no insider trading incidents occurred during the reporting period[136]. Shareholder and Governance Matters - The company has maintained a profit distribution policy emphasizing reasonable returns to investors, ensuring continuity and stability[81]. - The independent directors are required to provide clear opinions on the profit distribution plan, ensuring transparency and accountability[81]. - The company’s profit distribution plan must be approved by the shareholders' meeting, with a two-thirds majority required for any adjustments[82]. - The company has not conducted any share buybacks classified as cash dividends[84]. - The company has appointed Lixin Accounting Firm as the financial audit institution for 2017, with an audit fee of ¥540,000[89]. - The company has not faced any major litigation or arbitration matters during the reporting period[95]. Employee and Management Information - The company employed a total of 934 staff, with 276 in the parent company and 658 in major subsidiaries[131]. - The company has implemented a flexible compensation system based on performance and market conditions to attract and retain talent[132]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 2.8088 million[128]. - The company appointed a new general manager, Zhou Jie, on January 30, 2018, following the resignation of Wang Yawei[124]. - The management team has extensive experience in various sectors, including finance, operations, and strategic planning, which supports the company's growth initiatives[126].