Better Life(SZ:002251)2014-03-27 16:00Financial Performance - The company's operating revenue for 2013 was CNY 11,387,894,647.21, representing a 13.81% increase compared to CNY 10,005,654,563.45 in 2012[22]. - The net profit attributable to shareholders for 2013 was CNY 415,450,479.62, which is a 21.16% increase from CNY 342,896,031.64 in 2012[22]. - The net profit after deducting non-recurring gains and losses was CNY 400,096,296.47, reflecting a 24.88% increase from CNY 320,384,599.06 in 2012[22]. - The company's total assets at the end of 2013 were CNY 8,440,064,659.74, a 38.82% increase from CNY 6,079,935,547.50 at the end of 2012[22]. - The net assets attributable to shareholders increased by 70.71% to CNY 3,333,363,488.21 from CNY 1,952,658,476.90 in 2012[22]. - The basic earnings per share for 2013 were CNY 0.7271, up 4.77% from CNY 0.6940 in 2012[22]. - The weighted average return on equity for 2013 was 14.23%, down from 18.66% in 2012[22]. - The total operating income for 2013 was 1,048,911.50 million, reflecting a year-on-year increase of 16.53%[61]. - The company's total share capital after the issuance is 597,115,871 shares[174]. - The net profit attributable to the parent company's shareholders for the year was RMB 160.92 million, based on unaudited financial data[182]. Revenue Breakdown - The company's main business revenue accounted for 92.11% of total operating revenue, with supermarkets contributing 58.18% and department stores 31.48%[40]. - In 2013, the company's supermarket segment generated revenue of 610,262.76 million, accounting for 58.18% of total revenue, with a year-on-year growth of 11.24%[43]. - The department store segment saw a revenue increase of 22.54%, reaching 330,216.12 million, which represents 31.48% of total revenue[43]. - The company's total procurement from the top five suppliers was 62,708.57 million, representing 7.09% of total procurement, reflecting a diversified supplier base[50]. Cash Flow and Dividends - The cash flow from operating activities was CNY 76,312.41 million, a decrease of 3.85% from the previous year, attributed to increased prepayments for rent and goods[39]. - The cash dividend declared was CNY 6.619253 per 10 shares, totaling CNY 216,287,991.14[22]. - The company distributed cash dividends of CNY 298,557,935.50 for the year 2013, based on a share capital of 597,115,871 shares, proposing a dividend of CNY 5 per 10 shares[130]. - The cash dividend per 10 shares was CNY 5.00, with a total of 597,115,871 shares as the basis for distribution[133]. Expansion and Strategy - The company opened 20 new physical stores in 2013, including 20 supermarkets and 5 department stores, while closing 1 store, resulting in a total of 153 physical stores by year-end[35]. - The company initiated its "Big Southwest Strategy" in 2013, expanding into the Sichuan-Chongqing and Guangxi regions[35]. - The company plans to expand its market presence and enhance product offerings as part of its future strategy[11]. - The company plans to leverage an O2O business model by integrating online and offline resources to meet local consumer demands[35]. - The company has expanded its operations by establishing new stores in Chongqing, Guangxi, and Sichuan, aiming to increase sales scale[112]. Operational Efficiency - The gross profit margin increased to 22.31%, up 1.04 percentage points from the previous year, due to enhanced rental income from shopping centers and improved supply chain management[36][38]. - The total expenses for sales, management, and financial activities amounted to CNY 189,280.26 million, reflecting a 17.34% increase from the previous year[38]. - The company's inventory turnover ratio was 6.53 times per year, a decrease of 0.36 from the previous year, while the total asset turnover ratio was 1.57 times, down by 0.21[80]. - The company has engaged in wealth management with a total of 30.33 million RMB in actual gains from financial products during the reporting period[91]. Risk Management - The company experienced a negative impact on net profit growth due to a fire incident at one of its stores, highlighting operational risks[110]. - The company has initiated safety inspections across all stores to prevent future incidents and enhance fire safety training for employees[163]. - The company has faced risks related to store safety management, including potential economic losses from incidents like fire or theft[119]. Corporate Governance - The company has a clear cash dividend policy, ensuring transparency and protection of minority shareholders' rights[129]. - The company has established a performance evaluation system linking senior management's performance to their remuneration, ensuring accountability and alignment with company goals[197]. - The independent directors bring a wealth of experience from various sectors, which may contribute to better decision-making and strategic planning for the company[191]. - The company has a robust management team with a mix of long-term employees and new appointees, ensuring continuity and fresh perspectives in its operations[192]. Investments and Financing - The company raised CNY 1,181,542,522.83 through a private placement of 56,395,891 shares in March 2013[22]. - The company’s cash flow from financing activities was 103,467.35 million, an increase attributed to a private placement that raised 118,154.25 million[57]. - The total amount of raised funds is CNY 205,093.73 million, with CNY 78,606.36 million invested during the reporting period[98]. - The company has a well-defined funding strategy to support its growth plans, utilizing both raised and self-owned funds[117].