ST奥康(603001) - 2018 Q4 - 年度财报

Financial Performance - In 2018, the company's operating revenue was CNY 3,043,138,242.59, a decrease of 6.70% compared to CNY 3,261,683,206.06 in 2017[20] - The net profit attributable to shareholders was CNY 136,946,493.70, down 39.53% from CNY 226,467,907.17 in the previous year[20] - The net cash flow from operating activities increased by 22.63% to CNY 319,129,263.31 from CNY 260,245,902.36 in 2017[20] - The total assets decreased by 8.55% to CNY 4,877,869,034.72 from CNY 5,333,843,198.97 in 2017[20] - The basic earnings per share dropped by 39.39% to CNY 0.3423 from CNY 0.5648 in 2017[21] - The weighted average return on equity decreased to 3.40%, down 2.14 percentage points from 5.54% in 2017[21] - The net profit after deducting non-recurring gains and losses was CNY 90,902,611.95, a decline of 50.04% from CNY 181,947,751.02 in 2017[20] - The total equity attributable to shareholders was CNY 3,963,739,201.77, a decrease of 2.85% from CNY 4,080,196,063.52 at the end of 2017[20] - The company reported a total share capital of 400,980,000 shares, unchanged from the previous year[20] Revenue and Sales - In Q1, the company reported revenue of approximately ¥868 million, with a net profit attributable to shareholders of about ¥119 million, while Q4 showed a revenue of approximately ¥862 million but a net loss of about ¥35 million[23] - The company achieved a 50% year-over-year increase in member repurchase rate, with a total of 13 million new retail members[32] - The company’s inventory increased by ¥67.96 million, primarily due to stock repurchases in the secondary market[33] - The company’s foreign assets accounted for 6.21% of total assets, amounting to approximately ¥303 million[31] - The company reported a gross margin of 35.47% in the footwear industry, a decrease of 0.81 percentage points from the previous year[42] - The Southeast region generated revenue of CNY 1,220.42 million, with a gross margin of 36.86%, down 13.42% year-on-year[42] - Revenue from direct stores was 1,468,114,068.87 RMB, down 3.12% year-over-year, with a gross margin of 39.23%[75] - Franchise store revenue was 1,061,714,332.16 RMB, a decline of 10.49% from the previous year, with a gross margin of 30.93%[75] - The company experienced a significant drop in export revenue, which fell by 49.35% to 11,293,005.85 RMB[76] Costs and Expenses - Operating costs amounted to CNY 1,955.61 million, down 5.93% compared to the previous year[37] - Main business cost for the footwear industry was CNY 1,945,843,589.19, a decrease of 5.84% compared to CNY 2,066,581,201.94 in the previous year[48] - Sales expenses decreased by 14.93% to CNY 461,127,482.81, primarily due to reduced advertising costs[51] - R&D expenses increased by 4.13% to CNY 40,406,925.52, mainly due to higher employee salaries in R&D[53] Investments and Dividends - The company plans to distribute a cash dividend of CNY 3 per 10 shares to all shareholders[5] - The cash dividend for 2018 is proposed at 3 RMB per 10 shares, totaling approximately 117.21 million RMB, which is 85.59% of the net profit attributable to shareholders[96] - The company has made significant investments, including a 19.8 million RMB stake in Wenzhou Minsheng Bank, representing 9.90% of its total equity[84] - The company reported a net loss of ¥74,909,892.58 from investments in associates, primarily due to impairment losses on long-term equity investments[62] Strategic Initiatives - The company has implemented a multi-brand strategy, focusing on different consumer segments with price ranges from ¥299 to ¥899[27] - The company’s investment in smart manufacturing has led to a digital transformation in production processes, enhancing efficiency and responsiveness[32] - The company focused on product category enhancement and established an international design platform to innovate design models and share information in real-time[35] - The company is expanding its store network while enhancing single-store efficiency, particularly in shopping center channels[35] - The company has partnered with Alibaba and JD.com for strategic cooperation in "new retail" projects to optimize online and offline integration[35] - Membership management strategies have been implemented to enhance consumer engagement through multi-channel brand traffic pools[36] Market Challenges - The company is facing challenges due to rising labor costs and trade protectionism, impacting the traditional footwear manufacturing sector[86] - The company plans to focus on expanding its market presence in response to the growing demand for casual and athletic footwear[86] - The retail sector faces risks from evolving marketing channels, particularly the rise of social e-commerce, which the company plans to address by enhancing online and offline integration[92] Governance and Compliance - The company has established long-term commitments to avoid engaging in competitive businesses that may harm its interests[99] - The commitments made by the actual controller and shareholders are intended to prevent conflicts of interest and ensure the company's stability[99] - The company has confirmed that there are no plans for significant shareholding changes in the near future[99] - The company has a total of 158 leased properties covering approximately 19,689.71 square meters for opening direct stores[100] - The company has retained Tianjian Accounting Firm for auditing services, with a remuneration of 180,000 RMB for the year[104] - The internal control audit will also be conducted by Tianjian Accounting Firm, with a fee of 60,000 RMB[105] - The company has engaged in cash asset management through entrusted financial management, with a total amount of 226,500,000 RMB and an outstanding balance of 60,500,000 RMB[109] Employee and Management - The company has a total of 6,291 employees, with 2,430 in the parent company and 3,861 in major subsidiaries[152] - The workforce consists of 3,188 production personnel, 2,169 sales personnel, 204 technical personnel, 150 financial personnel, and 580 administrative personnel[152] - A training program named "Eagle Training Camp" has been launched to develop leadership talent and enhance employee skills[154] - The company has established a robust employee training and compensation system to promote career development[125] Audit and Financial Reporting - The audit report confirmed that the financial statements fairly reflect the company's financial position and operating results for the year ended December 31, 2018[170] - The internal control audit report was issued by Tianjian Accounting Firm, confirming the implementation of internal controls for 2018[166] - The company did not report any significant deficiencies in internal controls during the reporting period[166] - The company’s revenue recognition under the distribution model involves significant management judgment regarding the transfer of risks and rewards[174] Shareholder Information - The total number of ordinary shareholders increased from 17,276 to 18,374 during the reporting period[131] - The largest shareholder, Aokang Investment Holdings Co., Ltd., holds 111,181,000 shares, accounting for 27.73% of total shares, with 20,050,000 shares pledged[134] - Wang Zhentao, the chairman, holds 15.10% of the shares, with 60,556,717 shares, all of which are pledged[134] - The company has no strategic investors or general legal entities among the top 10 shareholders due to the absence of new share placements[135]