Liqun Co.,Ltd.(SH:601366)2018-04-03 16:00Financial Performance - The company's total revenue for 2017 was RMB 10,553,770,053.01, representing a year-on-year increase of 2.54% compared to RMB 10,292,600,193.72 in 2016[20]. - The net profit attributable to shareholders for 2017 was RMB 394,530,604.18, which is a 9.03% increase from RMB 361,865,254.53 in 2016[20]. - The company's total assets as of the end of 2017 reached RMB 7,820,575,998.84, reflecting a 10.79% increase from RMB 7,058,765,488.66 in 2016[20]. - The net assets attributable to shareholders increased by 66.34% to RMB 4,535,409,259.48 in 2017 from RMB 2,726,657,301.30 in 2016[20]. - Basic earnings per share for 2017 were RMB 0.49, down 7.55% from RMB 0.53 in 2016[21]. - The weighted average return on equity decreased to 10.18% in 2017 from 14.03% in 2016, a decline of 3.85 percentage points[22]. - The net cash flow from operating activities for 2017 was RMB 937,385,038.67, a slight increase of 1.23% from RMB 926,016,079.19 in 2016[20]. - Non-recurring gains and losses for 2017 included government subsidies of CNY 22.34 million, with total non-recurring items amounting to CNY 34.49 million after tax impacts[28]. - The gross profit margin improved to 15.52%, with a slight increase of 0.04 percentage points compared to the previous year[63]. - Net profit reached 394 million RMB, reflecting a year-on-year growth of 9.01%[57]. Business Operations - The company operates 41 retail stores, 44 convenience stores, and 3 fresh community stores, covering multiple regions including Qingdao, Yantai, and Linyi[30]. - The logistics centers have a total storage area of 280,000 square meters and operate over 200 self-owned transport vehicles, serving the Shandong Peninsula and surrounding areas[30]. - The company launched a new B2B procurement platform in August 2017, aimed at providing one-stop purchasing services for various market needs[31]. - The main business model includes a distribution model with over 90% of revenue from appliances and supermarket goods, ensuring quality and price advantages through bulk purchasing[33]. - The company’s revenue from the agency and logistics distribution business contributes significantly to its overall performance, alongside its retail operations[30]. - The company operates 44 "Li Qun Convenience Stores" as part of its franchise business model[34]. - The company has established a strong supplier relationship, with over 500 brands represented through its 12 wholesale subsidiaries[44]. - The company has a distinct approach for recognizing slow-moving goods and inventory impairment provisions, aiming to reduce long-stored items and optimize inventory structure[86]. Expansion and Development - The company plans to expand its fresh food community stores, enhancing its market presence in the fresh food sector[63]. - The company plans to open 100 new stores, including medium-sized supermarkets and community stores, to capture the high-frequency consumption market[104]. - The company is actively seeking acquisition targets that align with its development strategy to facilitate nationwide expansion[93]. - The company aims to achieve a revenue target of 11 billion CNY and a net profit of 400 million CNY for 2018[103]. - The company plans to expand its store count and operational scale rapidly, increasing management complexity and operational risks[114]. - The company opened its first store outside Shandong in September 2017, marking the beginning of its cross-regional expansion[115]. Financial Management - The company has invested a total of 320,000,000.00 RMB in broker financial products and 290,000,000.00 RMB in bank financial products from raised funds, with no overdue amounts[138]. - The company has a total of RMB 2,910,050,000.00 in entrusted financial management as of the end of the reporting period[144]. - The company has established a diversified portfolio of financial products, including fixed-income investment tools and money market instruments[144]. - The expected annual yield for the bank financial products ranges from 3.30% to 4.10%[140]. - The company has fully recovered all amounts from its entrusted financial management, with total expected returns of 2,842,796.77 RMB[140]. Corporate Governance - The company has established a transparent dividend distribution policy to enhance shareholder oversight[118]. - The company has committed to not reduce the price of shares below the issue price for two years after the lock-up period expires[120]. - The company has outlined measures to ensure that related party transactions do not harm the interests of minority shareholders[122]. - The company has a commitment to prioritize the development of its subsidiaries in any new business opportunities that may arise in competitive fields[121]. - The company has a clear policy for the remuneration of its board members, ensuring transparency and accountability[188]. Social Responsibility - The company provided nearly 1 million RMB worth of New Year gift packages to nearly 10,000 underprivileged families during the Spring Festival[150]. - The company completed the summer and winter vegetable reserves of 1,800 tons each for Qingdao City, achieving good social benefits[155]. - The company has cumulatively invested over 10 million RMB in charitable activities since 2000, providing free "love year goods" to underprivileged families[155]. - The company created over 30,000 job positions and paid a total of 540 million RMB in salaries and bonuses in 2017[154]. Shareholder Structure - The top shareholder, Li Qun Group Co., Ltd., holds 151,471,542 shares, representing 17.60% of the total shares[169]. - The second-largest shareholder, Qingdao Jun Tai Fund Investment Co., Ltd., holds 122,170,664 shares, accounting for 14.20%[169]. - The company has a total of 27,500,000 shares held by foreign investors, representing 4.02% of the total shares[169]. - The shareholder structure reflects a diverse mix of domestic and foreign investors, with significant stakes held by both institutional and individual shareholders[169]. Management and Employees - The total number of employees in the parent company and major subsidiaries is 7,085, with 225 in the parent company and 6,860 in subsidiaries[192]. - The employee composition includes 5,666 sales personnel, 231 production personnel, 278 technical personnel, 287 financial personnel, and 623 administrative personnel[192]. - New employee training will focus on leadership, execution, professional knowledge, and service mindset, aligning with the company's strategic development[195]. - Specialized training for middle management will be conducted, focusing on team building, execution, leadership, and professional knowledge[196].