Better Life(SZ:002251)2016-04-21 16:00Financial Performance - The company's operating revenue for 2015 was ¥15,451,608,970.31, representing a 25.66% increase compared to ¥12,296,788,271.67 in 2014[16]. - The net profit attributable to shareholders for 2015 was ¥213,822,742.90, a decrease of 38.08% from ¥345,295,364.18 in 2014[16]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥157,379,498.46, down 49.92% from ¥314,253,118.14 in the previous year[16]. - The basic earnings per share for 2015 was ¥0.2781, a decline of 47.10% compared to ¥0.5257 in 2014[16]. - The total assets at the end of 2015 amounted to ¥12,279,376,179.02, reflecting a 39.58% increase from ¥8,797,358,715.85 at the end of 2014[16]. - The net cash flow from operating activities for 2015 was ¥568,133,129.75, which is a decrease of 12.45% from ¥648,903,620.76 in 2014[16]. - The weighted average return on net assets for 2015 was 4.50%, down from 10.44% in 2014, indicating a decline of 5.94%[16]. - The company reported a significant increase in other business costs, which rose by 56.55% to ¥79,587,637.74 in 2015 from ¥50,838,419.83 in 2014[46]. - The gross profit margin decreased to 21.92%, down from 22.47% in the previous year[38]. - The company's total expenses (selling, administrative, and financial) rose by 38.11% to CNY 305.83 million, with an expense ratio of 19.77%[37]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of ¥1.5 per 10 shares, based on a total of 778,985,474 shares[4]. - The cash dividend for 2015 represents 54.65% of the net profit attributable to ordinary shareholders, which is CNY 213,822,742.90[104]. - The total distributable profit at the end of 2015 was CNY 616,201,597.12 after accounting for previous distributions[102][105]. - The company has committed to maintaining a minimum cash dividend ratio of 20% during its growth phase[105]. - The cash dividend distribution plan for 2015 is subject to approval at the annual general meeting[103]. Acquisitions and Investments - The company completed the acquisition of Guangxi Nancheng Department Store Co., Ltd. for a total cost of 1,575,780,000 CNY, acquiring 100% equity[116]. - The identifiable net assets of Guangxi Nancheng Department Store at the acquisition date had a fair value of 728,706,625 CNY, resulting in goodwill of 847,073,375 CNY[116]. - The total revenue from Guangxi Nancheng Department Store from the acquisition date to the end of the reporting period was ¥2,725,269,138.70, contributing a net profit of ¥114,292,374.49[48]. - The company established several new subsidiaries in 2015, including a micro-loan company with an investment of ¥225,000,000 and a supply chain management company with an investment of ¥5,000,000[52]. - The company reported an investment income of RMB 112,570.00 million for the current period[76]. Market Strategy and Operations - The company emphasized a strategy focused on small and medium-sized cities, which has resulted in rapid growth in revenue and profitability[30]. - The company plans to leverage its "Yunhou" O+O platform to integrate online and offline retail, aiming to create new profit growth points[32]. - The company opened a total of 241 retail stores across Hunan, Guangxi, Jiangxi, Sichuan, and Chongqing, maintaining over 90% of its revenue from retail operations[26]. - The company plans to expand its market presence in surrounding provinces after establishing a stable market share in Hunan[32]. - The company aims to become a leading multi-format commercial service provider in China, focusing on small and medium-sized cities and implementing an O+O online and offline integration strategy[92]. Financial Health and Liabilities - The company's asset-liability ratio improved to 59.30%, a decrease of 2.26 percentage points from the previous year, indicating a moderate long-term debt risk[71]. - The total liabilities of the company amount to approximately 1.1 billion RMB, with accounts payable at about 441.5 million RMB and deferred income at approximately 29.6 million RMB[118]. - The company's short-term borrowings decreased by 4.10% to ¥1.13 billion, while long-term borrowings increased to ¥449 million, reflecting a shift in financing strategy[69]. - The company has guaranteed a total of RMB 20,000 million for the controlling shareholder, with various guarantees from related parties totaling RMB 12,000 million, all of which are not yet fulfilled[135]. Governance and Compliance - The company has established a shareholder return plan for the next three years (2015-2017), which has been approved by the board and shareholders[100]. - The company confirmed that shareholders complied with the commitments made during the reporting period[107]. - The company maintains a governance structure that complies with relevant laws and regulations, ensuring the independence of its operations from the controlling shareholder[189]. - The company emphasizes transparency and adheres to strict information disclosure management practices[191]. - The company has engaged Tianjian Accounting Firm for auditing services, with a fee of 750,000 RMB, maintaining a relationship for 11 years[120]. Employee and Management - The total number of employees in the company is 22,128, with 3,982 in the parent company and 18,146 in major subsidiaries[183]. - The company has established a comprehensive training program to enhance employee skills and career development, focusing on management, technical, and operational training[186]. - Key management personnel compensation increased to RMB 426.18 million from RMB 308.55 million in the previous year, reflecting a growth of approximately 38%[136]. - The company has a performance evaluation system linking executive compensation directly to performance, with independent directors receiving an annual allowance of 80,000 RMB[181]. Risks and Challenges - The company anticipates challenges in retail due to fluctuating consumer demand and increasing competition from e-commerce[93]. - The company operates 14 cities in Hunan Province and parts of Jiangxi, Guangxi, Sichuan, and Chongqing, facing risks related to regional consumer preferences and market competition[94]. - The company will enhance store management and cost control while actively developing a full-channel supply chain in 2016[95].