BURTC(SH:600861)2019-04-12 16:00Financial Performance - In 2018, the company achieved a net profit of CNY 55,558,351.65, with a total distributable profit of CNY 449,278,442.94 by the end of the year[6]. - The company's operating revenue for 2018 was CNY 1,919,455,426.16, representing a decrease of 13.66% compared to CNY 2,223,186,712.03 in 2017[24]. - The net profit attributable to shareholders decreased by 52.27% to CNY 40,440,724.34 from CNY 84,732,440.19 in the previous year[24]. - The basic earnings per share for 2018 was CNY 0.1277, down 52.26% from CNY 0.2675 in 2017[24]. - The total assets of the company at the end of 2018 were CNY 3,743,200,929.29, a decrease of 6.24% from CNY 3,992,248,594.08 in 2017[24]. - The company's net assets attributable to shareholders increased slightly by 0.53% to CNY 2,346,689,722.46 compared to CNY 2,334,205,115.82 in 2017[24]. - The net cash flow from operating activities for 2018 was CNY 38,187,082.35, an increase of 40.25% from CNY 27,227,934.01 in 2017[24]. - The weighted average return on net assets decreased to 1.72% from 3.56% in 2017, a decline of 1.84 percentage points[26]. - The company reported a loss of RMB 930,104.42 from the disposal of non-current assets during the year[30]. - The company’s financial assets available for sale decreased from RMB 9,860,877.47 to RMB 6,997,247.04 over the reporting period[35]. Revenue and Sales Growth - The company operates primarily in the commercial and tourism sectors, with a focus on retail and community supermarket models[36]. - The revenue from community supermarkets includes a wide range of products, with over 40,000 items available across various categories[36]. - The company opened 36 new community convenience stores in 2018, with a focus on meeting consumer demand[51]. - The community supermarket segment saw a remarkable sales growth rate of 276.91%, with revenue reaching CNY 75.45 million and a gross margin of 11.21%[80]. - The company’s shopping center revenue was CNY 252.30 million, with a gross margin of 22.79% and a year-on-year growth of 15.53%[80]. - The overall revenue for the company reached CNY 1.44 billion, with a total cost of goods sold amounting to CNY 1.16 billion, resulting in a gross margin of 19.77%[80]. - The company aims to expand its tourism business by exploring educational and cultural tourism projects, enhancing brand awareness and influence in 2019[100]. Business Strategy and Operations - The company employs a mixed business model, including joint ventures, self-operated, and leasing strategies to optimize revenue streams[37]. - The company is enhancing its digital transformation by integrating online, offline, and mobile channels in retail operations[46]. - The company is actively pursuing multi-format business strategies to adapt to changing consumer demands and market conditions[50]. - The company aims to innovate retail models and expand community retail services, integrating its development into the capital's service management and livelihood guarantee systems[94]. - The company is exploring the cultural and creative industry, focusing on "cultural and technological integration" and "new technology transformation" to create an innovative entrepreneurial park[95]. Shareholder and Capital Management - The company plans to distribute a cash dividend of CNY 0.5 per 10 shares, totaling CNY 15,840,247.45 to shareholders[6]. - The company has a cash dividend policy in place, with adjustments made to ensure compliance with regulatory requirements[108]. - The controlling shareholder, Beijing State-owned Capital Operation and Management Center, plans to increase its stake in the company by up to 1% of the total issued shares within 6 months starting from March 1, 2018[112]. - As of August 31, 2018, the controlling shareholder has increased its stake by 0.7462%, bringing its total holdings to 34.23% of the total issued shares[115]. - The company has committed to not reduce its holdings during the implementation period and for 6 months after the completion of the share increase[115]. Risk Management - The company acknowledges macroeconomic risks and plans to adapt its business model to mitigate potential impacts[105]. - The company faces industry competition risks due to the rapid growth of online retail and plans to innovate its business model to maintain its competitive edge[105]. - The company is addressing operational management risks by improving its organizational structure and enhancing talent development[106]. Corporate Governance and Compliance - The company has established a transparent information disclosure process, ensuring all shareholders have equal access to information[186]. - The governance structure of the company is designed to ensure clear separation between the controlling shareholder and the company, promoting independent decision-making[182]. - The company has established mechanisms to prevent the controlling shareholder and related parties from misappropriating company funds, ensuring financial integrity[185]. - The company has a supervisory board that complies with legal requirements and has established meeting rules to ensure independent oversight of financial matters[186]. Employee and Management - The total remuneration for directors and senior management during the reporting period amounted to 4.27 million yuan[157]. - The company emphasizes a salary management policy based on performance, with bonuses linked to sales and profit targets, ensuring alignment with operational goals[176]. - The company has implemented a comprehensive training program aimed at enhancing the skills and capabilities of its management and staff[180]. - The total number of employees in the parent company is 441, while the total number of employees in major subsidiaries is 1,214, resulting in a combined total of 1,655 employees[174].