大商股份(600694) - 2018 Q4 - 年度财报

Definitions This chapter primarily defines professional terms and company abbreviations used in the report to ensure accurate communication - This chapter primarily defines professional terms and company abbreviations used in the report to ensure accurate communication[10] Company Profile and Key Financial Indicators This section provides an overview of the company's fundamental information and its key financial performance metrics over recent years Company Basic Information This chapter provides basic information about Dashang Co., Ltd., including company name, legal representative, contact details, registered address, and information disclosure channels Company Basic Information | Item | Information | | :--- | :--- | | Company Chinese Name | Dashang Co., Ltd. | | Stock Abbreviation | Dashang Shares | | Stock Code | 600694 | | Legal Representative | Niu Gang | | Listing Exchange | Shanghai Stock Exchange | Key Financial Data and Indicators In 2018, the company experienced a revenue decline primarily due to strategic adjustments, yet achieved significant growth in net profit and non-recurring net profit, indicating enhanced profitability Key Accounting Data for the Past Three Years (Unit: RMB) | Key Accounting Data | 2018 | 2017 | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 23,867,262,859.27 | 26,743,513,679.75 | -10.75% | | Net Profit Attributable to Shareholders of Listed Company | 987,789,826.36 | 876,556,293.09 | 12.69% | | Net Profit Attributable to Shareholders Excluding Non-recurring Items | 983,962,699.13 | 850,922,739.49 | 15.63% | | Net Cash Flow from Operating Activities | 164,381,446.07 | 197,864,898.45 | -16.92% | | Total Assets | 17,668,108,938.58 | 17,641,971,812.45 | 0.15% | Key Financial Indicators for the Past Three Years | Key Financial Indicators | 2018 | 2017 | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 3.36 | 2.98 | 12.75% | | Weighted Average Return on Net Assets (%) | 12.80 | 12.05 | Increased by 0.75 percentage points | | Weighted Average Return on Net Assets Excluding Non-recurring Items (%) | 12.75 | 11.70 | Increased by 1.05 percentage points | - The company's non-recurring gains and losses totaled 3.827 million yuan in 2018, primarily from debt restructuring gains (34.96 million yuan) and government subsidies (3.46 million yuan), partially offset by losses from other non-operating income and expenses (-24.58 million yuan)[27][28] Company Business Overview This section outlines the company's core retail operations, diverse business formats, and strategic competitive advantages Main Business, Operating Model, and Industry Overview The company primarily engages in commercial retail across department store, supermarket, and home appliance formats, operating over 140 physical stores and leveraging a multi-brand, omni-channel strategy including its Tiangou.com O2O platform - The company's core business is commercial retail, with over 140 physical stores covering department store, supermarket, and home appliance formats[30] - The operating model is a multi-brand matrix, including Mykal (high-end department store), New Mart (shopping center), Qiansheng Department Store (fashion trend), Dashang City Paradise (physical commercial platform), and the online platform Tiangou.com[30] Analysis of Core Competencies The company's core competencies include its extensive network, multi-format synergy, continuous innovation, strong supply chain, mature management, loyal customer base, and brand influence - The company operates over 140 physical stores, holding a leading position in core business districts across multiple regions including Liaoning, Heilongjiang, Henan, and Shandong, with industry-leading scale and profitability[31] - The company has established a multi-format, multi-brand operating system to meet diverse consumer needs and is dedicated to building 'Dashang City Paradise' as a new generation physical commercial complex platform[31] - The company adheres to the 'Four Selfs' (self-owned, self-produced, self-operated, self-sold) business strategy, integrating commodity resources and controlling multiple links from origin to consumption to enhance supply chain efficiency[32] Discussion and Analysis of Operations This section provides a comprehensive review of the company's operational performance, asset and liability status, investment activities, and future development outlook Overview of Operations In 2018, the company achieved sustained performance growth by deepening operational reforms, including the 'Four Selfs' model, 'Joint Sales Contracting,' and 'Partnership Entrepreneurship,' while launching the 'City Paradise' brand as a new physical commercial platform - The company innovated its operating, management, and incentive models by implementing three reforms: 'Four Selfs' operation, 'Joint Sales Contracting,' and 'Partnership Entrepreneurship,' to adapt to market changes[34][35] - During the reporting period, the company officially launched the new brand 'City Paradise,' aiming to create a landmark physical commercial complex integrating commercial centers, characteristic commercial streets, and leisure platforms[35] Major Operating Results for 2018 | Indicator | Amount (Billion RMB) | Year-on-Year Growth (%) | | :--- | :--- | :--- | | Operating Revenue | 23.87 | -10.75% | | Operating Profit | 1.63 | 21.23% | | Net Profit Attributable to Shareholders | 0.99 | 12.69% | | Net Profit Attributable to Shareholders Excluding Non-recurring Items | 0.98 | 15.63% | Analysis of Main Business During the reporting period, the company's main business revenue declined, but improved gross margins were achieved due to a greater reduction in operating costs, with notable financial expense reductions and increased investment cash flow Major Changes in Income Statement and Cash Flow Statement Items | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | Change Ratio (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 23,867,262,859.27 | 26,743,513,679.75 | -10.75% | | Operating Cost | 17,687,705,427.02 | 20,697,645,316.53 | -14.54% | | Financial Expenses | -17,607,127.12 | 21,621,081.06 | -181.43% | | Net Cash Flow from Investing Activities | 251,975,491.85 | 161,295,225.43 | 56.22% | Main Business by Format (Unit: Ten Thousand RMB) | By Industry Segment | Operating Revenue | Gross Margin (%) | Gross Margin Year-on-Year Change | | :--- | :--- | :--- | :--- | | Department Store Format | 1,344,982.21 | 16.96 | Decreased by 0.03 percentage points | | Supermarket Format | 450,760.60 | 13.06 | Increased by 1.18 percentage points | | Home Appliance Chain Format | 207,713.95 | 11.36 | Increased by 2.08 percentage points | - The significant decrease in financial expenses was primarily due to reduced borrowings, leading to lower interest expenses[44] Analysis of Assets and Liabilities At period-end, total assets remained stable, with significant increases in prepayments and inventories, while long-term borrowings and estimated liabilities were fully repaid, though some assets remained restricted Major Changes in Balance Sheet Items | Item | Period-End Amount (RMB) | Period-Beginning Amount (RMB) | Change Ratio (%) | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Prepayments | 240,277,686.35 | 142,063,378.53 | 69.13% | Increase in prepaid goods and lease fees | | Inventories | 3,687,198,369.44 | 2,637,730,622.29 | 39.79% | Acquired land use rights through bidding, increasing land for development | | Investment Properties | 262,973,331.85 | 184,323,668.96 | 42.67% | Self-owned properties converted from self-operation to lease operation | | Long-term Borrowings | 0.00 | 136,100,000.00 | -100.00% | Decrease in long-term borrowings | | Estimated Liabilities | 0.00 | 1,202,604.14 | -100.00% | Payments completed | - At the end of the reporting period, the company's major restricted assets included 29.06 million yuan in monetary funds restricted due to bank acceptance bill deposits and court freezes, as well as 585 million yuan in fixed assets and 4.43 million yuan in intangible assets pledged as collateral for bank loans[46][47] Analysis of Industry Operating Information The company analyzed its diverse regional markets, noting strong competitive advantages in Dalian but intense competition and challenges in other regions due to economic shifts and commercial oversupply, while also reporting store openings, closures, and significant online platform transaction volume - The company generally faces an intense market environment across its major operating regions, characterized by commercial oversupply, e-commerce impact, and new entrants, with Northeastern regions also grappling with insufficient consumer demand due to economic transformation and population outflow[49][51][53][55] Store Distribution at the End of the Reporting Period | Region | Operating Format | Number of Self-owned Property Stores | Number of Leased Property Stores | | :--- | :--- | :--- | :--- | | Dalian Region | Department Store/Supermarket/Home Appliance | 4 | 37 | | Shenyang Region | Department Store/Home Appliance | 2 | 4 | | Fushun Region | Department Store/Supermarket/Home Appliance | 10 | 7 | | Daqing Region | Department Store/Supermarket | 7 | 7 | | Mudanjiang Region | Department Store | 5 | 1 | | Henan Region | Department Store/Supermarket/Home Appliance | 2 | 14 | | Shandong Region | Department Store/Supermarket/Home Appliance | 7 | 8 | - During the reporting period, the company opened 3 new stores (Fushun Yongxin Shopping Plaza, Dandong Life Plaza, Jinxiu Qiancheng Shopping Center) and closed 5 stores[77] - As of the end of 2018, the online platform Tiangou.com had 12.69 million registered users, with a total annual transaction volume (GMV) of 41.97 billion yuan and an average order value of 735 yuan[77] Analysis of Investment Status During the period, the company's external equity investments were minor, primarily in banks and associates, with a significant non-equity investment being the acquisition of a land plot in Dalian for future development - The company acquired a land plot in Dalian's Zhongshan District, Donggang Business District, for 1.0448 billion yuan, representing a significant non-equity investment during the period[81] Major Long-term Equity Investments | Investee | Accounting Method | Period-End Book Balance (RMB) | Shareholding Ratio | | :--- | :--- | :--- | :--- | | Jinzhou Bank Co., Ltd. | Cost Method | 4,632,152.59 | 0.39% | | Jilin Bank Co., Ltd. | Cost Method | 5,000,000.00 | 0.08% | | Dashang Tea Industry Co., Ltd. | Equity Method | 19,821,348.22 | 40% | Analysis of Major Holding and Associate Companies During the period, Dashang Daqing New Mart, Fushun, and Daqing Department Stores were key profitable subsidiaries, while Zhengzhou New Mart Jinboda and Yilan Garment were major loss-making entities, with Yilan showing reduced losses Operating Performance of Major Holding Subsidiaries (Unit: RMB) | Full Name of Subsidiary | Net Profit | % of Company's Net Profit | Year-on-Year Change % | | :--- | :--- | :--- | :--- | | Dashang Daqing New Mart | 295,515,678.86 | 29.50% | 0.24% | | Dashang Fushun Department Store | 113,594,261.26 | 11.34% | 9.04% | | Dashang Daqing Department Store | 102,765,152.70 | 10.26% | -2.89% | | Zhengzhou New Mart Jinboda Store | -144,507,923.60 | -14.42% | -22.77% | | Yilan Garment Co., Ltd. (Laikamen) | -176,147,386.24 | -17.58% | 29.03% | Company's Future Development Outlook For 2019, the company targets approximately 10% revenue growth and sustained profit, focusing on deepening reforms, omni-channel integration, and developing the 'City Paradise' brand, while acknowledging risks from new project investments and market competition - 2019 operating plan: approximately 10% year-on-year growth in operating revenue, reasonable cost control, and sustained profit growth[89] - Core development strategies include: - Continuously deepening the three reforms (Four Selfs operation, Joint Sales Contracting, Partnership Entrepreneurship) - Promoting omni-channel integration between Tiangou.com and physical stores - Building the 'City Paradise' brand as a new generation flagship store - Strengthening the application of new technologies to enhance digital management and consumer experience[87][88] - The company's main risks include: operational and management pressure from long construction cycles and large investments in new projects like 'City Paradise'; and industry risks such as regional market saturation and intensifying online-offline competition[90][91] Significant Matters This section details the company's profit distribution policy, fulfillment of commitments, significant related party transactions, major contracts, and social responsibility initiatives Profit Distribution Policy The board decided against 2018 profit distribution or capital reserve capitalization to conserve funds for significant 'City Paradise' projects and potential M&A opportunities, supporting long-term development - For the 2018 fiscal year, the company will not distribute profits or capitalize capital reserves[94] - The primary reason for no dividend distribution is to reserve funds for the planned 'City Paradise' projects and potential merger and acquisition opportunities[94] Dividend Distribution Plans for the Past Three Years | Dividend Year | Dividend per 10 Shares (RMB, tax inclusive) | Total Cash Dividend (RMB) | % of Net Profit Attributable to Shareholders | | :--- | :--- | :--- | :--- | | 2018 | 0 | 0 | 0% | | 2017 | 9.0 | 264,346,787.70 | 30.16% | | 2016 | 7.2 | 211,477,430.16 | 30.08% | Fulfillment of Commitments The controlling shareholder's commitment to resolve horizontal competition remains unfulfilled due to market conditions, but the commitment period is ongoing, and efforts to fulfill it continue - Controlling shareholder Dashang Group committed on May 23, 2017, to resolve horizontal competition issues within the next 36 months[97] - As of the end of the reporting period, the horizontal competition issue remained unresolved due to capital market and macroeconomic influences, but the commitment is still valid, and Dashang Group will continue to strive for its fulfillment[99] Significant Related Party Transactions During the period, the company engaged in routine, controllable related party transactions with its parent and affiliates, involving goods, services, and fund transfers, with significant balances of funds provided to and by related parties - The company's daily related party transactions primarily involved goods procurement, sales, provision and acceptance of services, and other fund transfers, with a total transaction amount reaching 754 million yuan[106][107][108][109][110][111] Related Party Receivables and Payables (Unit: RMB) | Item | Period-End Balance | Period-Beginning Balance | | :--- | :--- | :--- | | Funds provided to related parties | 134,669,416.84 | 120,759,451.06 | | Funds provided by related parties to the listed company | 384,966,890.74 | 343,454,384.03 | Significant Contracts and Their Performance At period-end, the company provided 1.4 billion yuan in guarantees to its parent, invested 2.923 billion yuan in wealth management products, and faces over 12.1 billion yuan in future minimum operating lease payments External Guarantees | Item | Amount | | :--- | :--- | | Total Guarantees (A+B) | 1,455,000,000 RMB | | % of Total Guarantees to Company's Net Assets | 17.41% | | Amount of Guarantees Provided to Shareholders, Actual Controllers, and Their Related Parties (C) | 1,400,000,000 RMB | Entrusted Wealth Management (Unit: Ten Thousand RMB) | Type | Source of Funds | Amount Incurred | Outstanding Balance | | :--- | :--- | :--- | :--- | | Bank Wealth Management | Own Funds | 292,300 | 130,800 | - The company's signed lease contracts have future minimum lease payments totaling approximately 12.176 billion yuan[592] Social Responsibility The company actively fulfilled social responsibilities, contributing over 10 million yuan in donations and 1.3 billion yuan in taxes, creating over 200,000 jobs, and supporting ethnic minority regions through industrial poverty alleviation - During the reporting period, the company's total social donations exceeded 10 million yuan, and taxes paid exceeded 1.3 billion yuan[139][140] - The company actively expands employment, having cumulatively provided over 200,000 job opportunities to society[141] Changes in Ordinary Shares and Shareholder Information This section details the stability of the company's ordinary share capital and provides an overview of its shareholder structure and actual controller Changes in Share Capital During the reporting period, the company's total ordinary share capital and structure remained unchanged at 293,718,653 shares - During the reporting period, the company's total share capital and structure remained unchanged[145] Shareholders and Actual Controller Information As of period-end, the company had 26,179 shareholders, with Dashang Group, Anbang Life, and Dalian Guoshang as the top three, and Dashang Group as the controlling shareholder with Mr. Niu Gang as the actual controller Top Ten Shareholders' Shareholding as of the End of the Reporting Period | Shareholder Name | Number of Shares Held (shares) | Shareholding Ratio (%) | | :--- | :--- | :--- | | Dashang Group Co., Ltd. | 76,602,149 | 26.08 | | Anbang Life Insurance Co., Ltd. | 44,028,289 | 14.99 | | Dalian Guoshang Asset Management Co., Ltd. | 25,013,382 | 8.52 | | Central Huijin Asset Management Co., Ltd. | 8,721,300 | 2.97 | | Fullgoal Tianhui Selected Growth Mixed Securities Investment Fund | 6,300,000 | 2.14 | - The company's controlling shareholder is Dashang Group Co., Ltd., and the actual controller is Mr. Niu Gang[149][151] Preferred Shares Information This chapter confirms that the company had no preferred shares during the reporting period - During the reporting period, the company had no preferred shares information[157] Directors, Supervisors, Senior Management, and Employees This section provides details on the shareholdings and remuneration of the company's directors, supervisors, and senior management, as well as overall employee information Changes in Shareholdings and Remuneration of Directors, Supervisors, and Senior Management During the reporting period, shareholdings of directors, supervisors, and senior management remained stable, with total pre-tax remuneration amounting to 19.6702 million yuan, including 4.39 million yuan for Chairman Niu Gang Remuneration of Selected Directors, Supervisors, and Senior Management (Unit: Ten Thousand RMB) | Name | Position | Total Pre-tax Remuneration | | :--- | :--- | :--- | | Niu Gang | Chairman | 439.00 | | Meng Hao | President | 256.62 | | Zhang Yaozhi | Director | 203.00 | | Wang Hui | Board Secretary | 170.00 | | Yan Li | Director, Chief Accountant | 155.00 | Employee Information As of period-end, the company employed 15,764 staff, predominantly administrative and sales personnel, with approximately 22.5% holding bachelor's degrees or higher, supported by performance-linked compensation and multi-level training Employee Professional Composition | Professional Category | Number of People | | :--- | :--- | | Sales Personnel | 4,098 | | Financial Personnel | 2,383 | | Administrative Personnel | 7,878 | | Technical Personnel | 1,310 | | Production Personnel | 95 | | Total | 15,764 | Corporate Governance This section details the company's governance structure, meeting procedures, and internal control effectiveness Overview of Corporate Governance The company has established a robust governance structure in compliance with laws and regulations, ensuring clear responsibilities and standardized operations across its power, decision-making, supervisory, and management bodies - The company's corporate governance structure complies with requirements of laws and regulations such as the 'Company Law' and 'Securities Law,' operating in a standardized manner across aspects including shareholders, board of directors, supervisory board, performance evaluation, stakeholders, and information disclosure[172][173][174] Shareholders' Meetings and Board Meetings In 2018, the company held a total of 5 shareholders' meetings and 10 board meetings, ensuring proper governance and decision-making processes - During the reporting period, a total of 5 shareholders' meetings and 10 board meetings were held[175][176] Internal Control Status The company's internal control self-assessment report was disclosed, and an unqualified audit opinion was issued by Dahua Certified Public Accountants, affirming the effectiveness of internal controls in all material respects - The company disclosed its internal control self-assessment report, and the accounting firm issued a standard unqualified internal control audit report[179] Corporate Bonds Information This chapter confirms that the company had no corporate bonds during the reporting period - During the reporting period, the company had no corporate bonds information[181] Financial Report This section presents the company's audited financial statements for 2018, including the audit opinion and detailed consolidated financial data Audit Opinion Dahua Certified Public Accountants issued a standard unqualified audit opinion on the company's 2018 financial statements, confirming their fair reflection of the company's financial position, operating results, and cash flows - The auditing firm is Dahua Certified Public Accountants (Special General Partnership), which issued a standard unqualified audit opinion[183] - The key audit matter was 'retail revenue recognition,' for which auditors performed procedures including internal control testing, system data analysis, sample checks, and bank statement verification, concluding that management's recognition, measurement, and disclosure of revenue were reasonable[185][186] Consolidated Financial Statements This chapter includes the company's 2018 consolidated and parent company financial statements, along with detailed notes covering accounting policies, estimates, taxes, and specific item explanations Consolidated Balance Sheet Summary (December 31, 2018) | Item | Amount (RMB) | | :--- | :--- | | Total Assets | 17,668,108,938.58 | | Total Liabilities | 9,313,218,790.82 | | Total Equity Attributable to Parent Company Owners | 8,079,241,543.79 | | Total Owners' Equity | 8,354,890,147.76 | Consolidated Income Statement Summary (2018) | Item | Amount (RMB) | | :--- | :--- | | Total Operating Revenue | 23,867,262,859.27 | | Operating Profit | 1,632,894,588.44 | | Total Profit | 1,620,826,518.23 | | Net Profit | 1,050,999,774.01 | | Net Profit Attributable to Parent Company Shareholders | 987,789,826.36 | Consolidated Cash Flow Statement Summary (2018) | Item | Amount (RMB) | | :--- | :--- | | Net Cash Flow from Operating Activities | 164,381,446.07 | | Net Cash Flow from Investing Activities | 251,975,491.85 | | Net Cash Flow from Financing Activities | -731,875,970.29 | | Net Increase in Cash and Cash Equivalents | -305,674,092.25 | Reference Documents Catalog This chapter lists all official documents available for reference, including signed financial statements, the original audit report, and publicly disclosed filings - This chapter lists reference documents, including original accounting statements with signatures of the legal representative and senior management, the original audit report, and the originals of all publicly disclosed documents during the reporting period[648]