XHCG(SH:600785)2019-02-25 16:00Financial Performance - The company's operating revenue for 2018 was CNY 7,625,965,667.12, representing a 2.56% increase compared to CNY 7,435,610,775.41 in 2017[19] - Net profit attributable to shareholders for 2018 was CNY 137,342,735.43, an increase of 28.41% from CNY 106,954,757.92 in 2017[19] - Total operating income for 2018 was CNY 762,596.55 million, with a gross margin of 21.05%, compared to CNY 743,561.08 million and a gross margin of 20.07% in 2017[27] - The company achieved an operating revenue of 762,596.57 million RMB, representing a year-on-year growth of 2.56%[33] - The net profit attributable to shareholders increased by 28.41% to 13,734.27 million RMB[33] - The department store segment generated an operating revenue of 201,676.53 million RMB, with a year-on-year growth of 4.53%[34] - The supermarket segment opened 16 new stores and achieved an operating revenue of 391,515.73 million RMB, growing by 2.48%[35] - The electrical appliance segment maintained stable revenue at 166,228.79 million RMB, with 7 new stores opened during the period[35] - The company reported a non-recurring loss of CNY 33,113,077.43 in 2018, compared to a loss of CNY 55,348,043.74 in 2017[25] - The company reported a significant increase in research and development expenses, although specific figures were not disclosed[171] Cash Flow and Investments - The net cash flow from operating activities decreased by 19.38% to CNY 318,128,994.33 from CNY 394,597,653.86 in 2017[19] - Net cash flow from investing activities plummeted by 1,342.91% year-on-year to -¥704,934,465.90, mainly due to increased property purchases and store renovations[42] - Net cash flow from financing activities increased by 353.29% year-on-year to ¥333,702,557.23, driven by higher cash received from loans[42] - The cash flow from investing activities showed a net outflow of ¥704,934,465.90, worsening from a net outflow of ¥48,855,006.99 in the previous year[179] - Cash flow from financing activities generated a net inflow of ¥333,702,557.23, compared to a net outflow of ¥131,749,521.12 in the previous year[179] Assets and Liabilities - Total assets at the end of 2018 were CNY 4,938,047,989.87, an increase of 8.40% from CNY 4,555,442,844.78 at the end of 2017[19] - Total liabilities increased from CNY 2,640,771,404.68 to CNY 2,910,941,661.72, an increase of approximately 10.23%[166] - Total current assets decreased from CNY 1,924,019,175.82 to CNY 1,860,195,106.17, a decline of approximately 3.33%[165] - Total non-current assets increased from CNY 2,631,423,668.96 to CNY 3,077,852,883.70, an increase of approximately 16.94%[165] - Total equity attributable to shareholders increased from CNY 1,988,111,727.80 to CNY 2,125,454,463.23, an increase of approximately 6.9%[167] Market and Competition - The retail market in China saw a total retail sales of social consumer goods of CNY 38,098.7 billion, growing by 9.0% year-on-year[29] - The company faced intense competition from major retail giants, impacting customer traffic stability in its business circles[30] - The company plans to continue focusing on its core business and exploring market expansion opportunities in the future[6] - The company has expanded its store presence in Inner Mongolia, Gansu, Shaanxi, and Qinghai, although these operations are still in the early stages and have not yet achieved profitability[30] Corporate Governance and Compliance - The company has not reported any instances of non-compliance with performance commitments or any impact on goodwill impairment testing during the reporting period[86] - The company has not engaged in any related party transactions that would compromise its operational integrity with Xinhua Department Store[85] - The company has committed to avoiding any conflicts of interest in business dealings with Xinhua Department Store, ensuring transparency and fairness[85] - The company has appointed Xinyong Zhonghe Accounting Firm as the auditor for the fiscal year 2018, with an audit fee of RMB 5.8 million[88] Social Responsibility and Community Engagement - The company has been actively involved in poverty alleviation efforts, focusing on supporting livestock farming in Zhangjiawan Village, with funds fully allocated to 25 registered impoverished households[106] - The company received recognition from the Ningxia United Front Work Department for its contributions to poverty alleviation efforts[105] - The company provided 20,000 job opportunities in 2018, ensuring employee health and safety[109] - The company actively participated in social welfare activities, including donations to sanitation workers and orphanages[109] Employee and Management Information - The total number of employees in the parent company is 1,087, while the total number of employees in major subsidiaries is 7,136, resulting in a combined total of 8,223 employees[136] - The total remuneration for the chairman, Qu Kui, was 733,300 CNY, while the vice chairman, Liang Qing, received 1,954,559 CNY[127] - The company has undergone changes in its board, with Chen Aizhen resigning after completing a six-year term and Ye Zhaoguan being newly elected as an independent director[134] - The company has a diverse workforce with various professional roles, including 176 technical personnel[136] Future Outlook and Strategy - The company plans to strengthen its market position in the Ningxia region, focusing on a 300-500 km economic circle centered around Yinchuan, while also seeking opportunities to expand into neighboring provinces such as Shaanxi, Gansu, and Inner Mongolia[69] - The company aims to enhance its internal control processes to reduce operational risks and improve decision-making capabilities[73] - The company is focusing on modern logistics and supply chain enhancements to support multi-format retail experiences[36] - The company plans to continue its support for poverty alleviation in 2019, focusing on livestock farming to ensure long-term effectiveness[106]