CBEST(SH:600729)2019-03-15 16:00Financial Performance - In 2018, the company achieved a total profit of 1,014.25 million RMB, with a net profit attributable to shareholders of the parent company amounting to 831.14 million RMB[6]. - The company's operating revenue for 2018 was CNY 34,083,884,681.76, representing a 3.55% increase compared to CNY 32,915,365,089.73 in 2017[21]. - Net profit attributable to shareholders for 2018 reached CNY 831,141,123.67, a significant increase of 37.28% from CNY 605,430,823.37 in 2017[21]. - The basic earnings per share for 2018 was CNY 2.04, up 36.91% from CNY 1.49 in 2017[23]. - The weighted average return on equity increased to 15.75% in 2018, up by 3.19 percentage points from 12.56% in 2017[23]. - The company reported a total of CNY 40,443,434.42 in non-recurring gains and losses for 2018, compared to CNY 19,345,408.44 in 2017[28]. - The company achieved operating revenue of 34.084 billion RMB in 2018, a year-on-year increase of 3.55%[50]. - The company plans to achieve operating revenue of 34.4 billion RMB and a total profit of 1.133 billion RMB in 2019[114]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of 6.50 RMB per 10 shares, totaling 264.24 million RMB to all shareholders[6]. - In 2018, the company distributed cash dividends of 6.50 RMB per 10 shares, with a distribution ratio of 31.79% of the net profit attributable to ordinary shareholders[124]. - The company has a cash dividend policy that aims to provide reasonable returns to investors, with adjustments made to ensure transparency and compliance[124]. Operational Efficiency and Costs - The net cash flow from operating activities for 2018 was CNY 1,002,470,994.70, a decrease of 22.22% compared to CNY 1,288,820,366.40 in 2017[21]. - The company's operating cash flow net amount was CNY 1.00 billion, a decrease of 22.22% compared to the previous year[48]. - Operating costs for the company were 27.804 billion RMB, reflecting a year-on-year increase of 2.62%[50]. - The company’s workforce costs reached 2.58 billion CNY in 2018, an increase of 126 million CNY year-on-year[92]. Store Expansion and Market Presence - The company opened 24 new stores with a total area of 185,700 square meters while closing 18 stores during the reporting period[42]. - The company opened 13 new stores in 2018, with a total area of 106,000 square meters, including 8 supermarkets and 5 comprehensive department stores[83]. - The company has expanded its footprint in Chongqing, with multiple stores opened since 2001, indicating a strong market presence[76]. - The company plans to expand its market presence by opening additional stores in strategic locations, focusing on areas with high foot traffic[83]. Strategic Focus and Innovation - The company’s strategic focus includes enhancing supply chain optimization and expanding into new emerging industries[42]. - The company plans to enhance operational capabilities and profitability through measures such as accelerating digital transformation and expanding new businesses[114]. - The company aims to enhance its product offerings through new technology and product development initiatives in the coming year[83]. - The company plans to enhance logistics management systems and achieve 100% improvement in delivery efficiency within Chongqing in 2019[90]. Risks and Challenges - The company has outlined potential risks including macroeconomic risks, consumer trend risks, and market competition risks in its future development analysis[8]. - The company faced risks including macroeconomic risks that could impact consumer confidence and spending, potentially lowering sales growth and gross margins[115]. - The company identified competition risks from both domestic and international retailers, which could pressure market share and profitability[117]. - The company faces challenges such as increased competition and economic pressure, but also sees opportunities in further reforms and technological advancements[112]. Related Party Transactions and Governance - The company reported a total of 10,275.00 million RMB in related party transactions, with actual transactions amounting to 6,350.01 million RMB, indicating a significant engagement in daily operations[173]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[8]. - Chongqing Shancheng Group committed to maintaining the independence of the listed company, ensuring complete separation in personnel, finance, institutions, assets, and business operations[128]. - The commitment to reduce and regulate related party transactions is being fulfilled, with all transactions strictly following legal procedures and timely information disclosure[128]. Legal Matters and Litigation - There are ongoing major litigation matters, including employee fund misappropriation and property infringement cases, which have been disclosed in previous reports[144]. - The company is involved in a lawsuit with a claim amount of RMB 1.258 million related to a vehicle fire incident, which has been ruled against the plaintiff in the first instance[145]. - Another lawsuit involves a claim of RMB 2.3644 million for unpaid rent, where the court ruled in favor of the plaintiff, but the case is currently under appeal[146]. - A civil lawsuit regarding a loan default has a claim amount of RMB 0.7053 million, with the court ruling in favor of the plaintiff, and the case is currently in the execution phase[147]. Community Engagement and Social Responsibility - The company plans to continue its poverty alleviation efforts in 2019, focusing on promoting agricultural products and creating job opportunities[191]. - In 2018, the company allocated RMB 50,000,000 towards poverty alleviation initiatives, including vocational training for 230 individuals[192]. - The company aims to establish an 8,000 square meter supermarket in Chengkou County to enhance local agricultural product sales[191]. - The company is exploring e-commerce projects to further support poverty alleviation efforts[193].