Bestore(SH:603719)2020-04-27 16:00Financial Performance - The company achieved a net profit attributable to shareholders of RMB 340,354,071.37 in 2019[6] - The company's operating revenue for 2019 was CNY 7,714,992,860.91, representing a 20.97% increase compared to CNY 6,377,558,563.11 in 2018[27] - The net profit attributable to shareholders for 2019 was CNY 340,354,071.37, which is a 42.68% increase from CNY 238,539,857.47 in 2018[27] - The net cash flow from operating activities for 2019 was CNY 342,192,635.83, showing a significant increase of 130.94% compared to CNY 148,171,014.38 in 2018[30] - The basic earnings per share for 2019 was CNY 0.95, up 43.94% from CNY 0.66 in 2018[30] - The company's total assets at the end of 2019 were CNY 3,831,694,633.59, a 20.39% increase from CNY 3,182,760,457.56 at the end of 2018[30] - The net profit after deducting non-recurring gains and losses for 2019 was CNY 273,526,560.91, which is a 31.78% increase from CNY 207,564,323.36 in 2018[30] - The company reported a weighted average return on equity of 27.30% for 2019, an increase of 2.38 percentage points from 24.92% in 2018[30] - The net assets attributable to shareholders at the end of 2019 were CNY 1,415,594,335.65, reflecting a 31.48% increase from CNY 1,076,663,741.62 at the end of 2018[30] - The company achieved quarterly revenues of CNY 2,255,325,443.52 in Q4 2019, marking a strong performance in the last quarter[33] Dividend Policy - The board proposed a cash dividend of RMB 2.55 per 10 shares, totaling RMB 102,255,000.00, which represents 30.04% of the net profit[6] - The company aims to distribute at least 10% of its distributable profits as cash dividends annually, provided it meets certain conditions[179] - In the case of major capital expenditures, the company plans to maintain a cash dividend ratio of at least 40% during its mature phase[179] - The company’s legal reserve fund must exceed 50% of its registered capital before it can cease further contributions[174] - The board of directors must consider various factors, including industry characteristics and competitive positioning, when formulating profit distribution policies[179] - The company is committed to maintaining a stable and continuous profit distribution policy while ensuring long-term sustainability[179] - The company will actively adopt cash dividends as a preferred method of profit distribution, subject to operational needs[175] - The company’s profit distribution policy adjustments require approval from a majority of the board and independent directors, ensuring shareholder interests are considered[181] - The company plans to distribute at least 10% of its distributable profits as cash dividends annually, with a cumulative cash distribution of no less than 30% of the average annual distributable profits over the last three years[184] - The cash dividend ratio will vary based on the company's development stage, with a minimum of 80% for mature companies without major expenditures and 40% for those with significant spending plans[188] - The company emphasizes a stable and sustainable profit distribution policy, taking into account the needs of small and medium investors and external financing conditions[185] - The board of directors must approve the profit distribution proposal, which then requires a two-thirds majority vote from shareholders at the general meeting[187] - The company will not conduct capital reserve transfers to increase share capital for the 2019 fiscal year[194] Risk Management - The report includes a risk statement indicating potential risks that the company may face, which investors should be aware of[8] - The report emphasizes the importance of investor awareness regarding forward-looking statements and associated risks[7] - The company expects to face risks related to seasonal sales fluctuations, particularly in the first and fourth quarters[165] - The company is exposed to raw material price volatility, which could impact its procurement costs and profitability[166] - The company has established a comprehensive quality control system covering procurement, warehousing, distribution, and sales, but still faces risks related to food safety due to factors like raw material supply and transportation conditions[168] Market Strategy and Expansion - The company plans to continue expanding its market presence and invest in new product development to drive future growth[1] - The company has established a multi-channel sales model, integrating new retail strategies across physical stores, e-commerce platforms, community group buying, mobile apps, and O2O delivery services[61] - The company has developed a digital model for precise marketing, targeting various consumer segments through social media and video platforms[75] - The company aims to capture the high-end snack market by aligning with the trends of health and nutrition in consumer preferences[71] - The company has implemented a "high-end snack" strategy, focusing on product quality, consumer experience, and differentiation in the market[75] - The company upgraded 12 classic products and launched several high-end series products, enhancing consumer recognition of its high-end snacks[78] - The company has received multiple international food awards, showcasing its commitment to high-quality product development[78] - The company aims to enhance product development investment and improve supply chain standards to support its high-end snack strategy[160] Sales and Revenue - The company reported a total revenue of 66,827,510.46 RMB, with a net loss of 74,327,185.99 RMB for the reporting period[39] - In 2019, the company's sales reached 9.737 billion yuan across various channels, establishing it as a well-known brand in the industry[71] - The company's main business revenue reached CNY 7,600.29 million, a year-on-year increase of 20.22%[89] - Online revenue accounted for 48.58% of total revenue, while offline revenue accounted for 51.42%[89] - The gross margin for the main business was 32.15%, an increase of 0.86 percentage points year-on-year[89] - The company reported a significant increase in online business revenue, contributing to overall growth[103] - The wholesale franchise sales segment saw a revenue increase of 16.70% year-on-year, with a gross margin of 21.99%[96] - The company expanded its market presence in East and South China, resulting in significant sales growth in these regions[103] Product Development and Innovation - The company has developed over 1,400 SKUs, covering various categories including meat snacks, nuts, candies, and dried fruits[40] - The company established a food nutrition and health research institute to enhance product development and innovation[78] - The company’s product operation model focuses on new product innovation and mature product management to meet diverse consumer needs[56] - R&D expenses rose by 31.50% compared to the previous year, reflecting increased investment in innovation[94] - Total research and development investment was 27.36 million yuan, representing 0.35% of operating revenue[109] - The company had 137 R&D personnel, making up 1.33% of the total workforce[112] Supply Chain and Logistics - The company has established a supply chain management model that includes comprehensive control over procurement, warehousing, logistics, and delivery[57] - The company improved its logistics efficiency, with warehouse utilization rising from 50% to 70%[86] - The OMS order processing capacity reached 200 million orders per hour, supporting over 6 million online transactions daily[87] - The company has optimized its supply chain management, engaging over 300 suppliers in a rating system[86] - The company operates six self-owned warehouses and collaborates with third-party logistics providers across multiple regions, enhancing its supply chain efficiency[133] - The company has implemented a data-driven inventory management system, optimizing stock turnover and reducing the risk of stockouts[135] Membership and Customer Engagement - The total number of reachable members across all channels is 80 million, with over 40 million key maintained members as of March 2020, and member sales accounted for approximately 57.4% of total sales[142] - Membership acquisition through the mini-program increased by over 80% year-on-year, with monthly sales during the New Year Festival up over 200%[79] - The proportion of high-end members, such as Tmall 88Vip and JD Plus members, has seen double growth, indicating an increase in customer loyalty and spending[78] - The company’s marketing strategies include various promotional activities such as theme promotions and membership discount cards, which are accounted for based on net amounts after discounts[143] Corporate Governance - The audit report issued by PwC confirms the financial statements are accurate and complete[5] - The board of directors and supervisory board members were present at the meeting, ensuring governance compliance[5] - The company has no non-operating fund occupation by controlling shareholders or related parties[8] - The controlling shareholder Ningbo Hanyi and its concerted parties committed not to transfer or entrust the management of shares held before the public offering for 36 months from the date of listing[198] - If the company's stock price falls below the issue price for 20 consecutive trading days within 6 months post-listing, the lock-up period will automatically extend by 6 months[198]