MAOYE COMMERCIAL(SH:600828)2019-05-31 16:00Financial Performance - The company achieved a net profit of ¥36,607,748.29 for the year 2018, with a total distributable profit of ¥1,175,007,533.43 after accounting for previous distributions and reserves[6]. - Operating revenue for 2018 reached RMB 1,310,531.38 million, a year-on-year increase of 1.28% compared to RMB 1,293,984.27 million in 2017[26]. - Net profit attributable to shareholders was RMB 120,454.09 million, reflecting a 10.03% increase from RMB 109,478.63 million in the previous year[26]. - Net profit excluding non-recurring gains and losses increased by 40.01% to RMB 109,301.45 million, up from RMB 78,067.30 million in 2017[26]. - The basic earnings per share rose to RMB 0.6955, a 10.03% increase from RMB 0.6321 in 2017[28]. - The company's net assets attributable to shareholders decreased by 2.71% to RMB 560,436.44 million from RMB 576,034.92 million at the end of 2017[26]. - The total assets increased by 3.51% to RMB 1,946,224.94 million compared to RMB 1,880,309.20 million at the end of 2017[26]. - The significant increase in net profit excluding non-recurring gains was primarily due to the opening of the real estate project "Maoye Haoyuan" and a slight increase in store operating gross profit[31]. - The company reported a total asset increase from approximately 17.77 billion RMB at the end of 2017 to about 19.46 billion RMB by the end of the reporting period, with net assets growing from 6.14 billion RMB to 6.64 billion RMB[46]. - The total revenue for the reporting period was approximately ¥11.33 billion, a decrease of 2.73% compared to ¥11.65 billion in the previous year[89]. Dividends and Shareholder Returns - A cash dividend of ¥1 per 10 shares will be distributed to shareholders, totaling ¥173,198,254.60[6]. - The company will not increase capital reserves from retained earnings for the year 2018[6]. - In 2018, the company distributed a cash dividend of CNY 3 per 10 shares, which accounted for 43.14% of the net profit attributable to ordinary shareholders[127]. - The company reported a net profit of approximately CNY 1.20 billion for 2018, with a significant portion allocated for shareholder dividends[127]. Operational Strategies and Market Expansion - The company plans to continue its market expansion efforts, particularly in the South China region, following the acquisition of stores in Shenzhen and Zhuhai[16]. - The company aims to balance customer traffic attraction and purchase rates by transforming department stores into shopping centers and vice versa[51]. - The company has established a strong market position in Hohhot and ranks among the top in Chengdu, Shenzhen, and Baotou, indicating a competitive advantage in regional markets[51]. - The company is enhancing its operational capabilities and supplier partnerships to improve efficiency and customer experience[51]. - The company has developed a diverse brand portfolio, including "Maoye Tiandi" and "Maoye Department Store," which has strengthened brand recognition and customer loyalty[51]. - The company plans to invest up to 350 million RMB in securities over a 12-month period to enhance capital efficiency[98]. Risks and Challenges - The company has outlined potential risks in its future development strategies, which are detailed in the operational discussion section[8]. - The retail industry experienced a slowdown, with the total retail sales of consumer goods growing by 9.0% year-on-year in 2018, a decline of 1.2 percentage points compared to 2017[44]. - The company faces risks from intensified competition in the retail sector, which may pressure operating costs and profit margins[120]. - The company recognizes potential financial risks due to significant capital expenditures required for expansion and acquisitions[121]. Acquisitions and Investments - The company acquired 100% equity of Chongqing Maoye Department Store and 97.31% equity of Taizhou First Department Store during the reporting period, enhancing its market presence[46]. - The company implemented a strategy of mergers and acquisitions, acquiring Chongqing Maoye Department Store and Taizhou First Department Store, and holding 38.24% of Shenzhen Youyigou E-commerce[56]. - The company has committed to ensuring that all information provided during the restructuring process is true, accurate, and complete, with no false records or significant omissions[130]. Financial Management and Compliance - The board of directors and management have confirmed the accuracy and completeness of the financial report, assuming legal responsibility[4]. - The company has guaranteed that the actual net profits for the years 2015, 2016, and 2017 will not be less than CNY 637.55 million, CNY 711.01 million, and CNY 779.22 million respectively[132]. - The company confirmed that it has no significant legal violations or major debts that remain unpaid over the last three years, ensuring compliance with regulatory requirements[149]. - The company will ensure that the restructuring allows for independent financial decision-making without interference from related parties, and that it will independently pay taxes[158]. Future Outlook - The company anticipates a stable growth in retail sales in 2019, supported by government policies aimed at stimulating consumption[114]. - The company provided a positive outlook for the next quarter, projecting a revenue growth of 25% based on current market trends and user acquisition strategies[176]. - The company plans to invest 50 million in research and development to drive innovation in its product line[176]. - Future guidance includes an expected EBITDA margin of 30% for the upcoming fiscal year, reflecting strong operational performance[176].