Yifeng Pharmary(SH:603939)2019-04-09 16:00Financial Performance - The company achieved a net profit attributable to the parent company of RMB 416,414,103.09 in 2018, with a total distributable profit of RMB 1,040,135,304.32 at year-end[6]. - The company's operating revenue for 2018 was CNY 6,912,576,542.44, representing a 43.79% increase compared to CNY 4,807,249,008.63 in 2017[26]. - Net profit attributable to shareholders for 2018 was CNY 416,414,103.09, a growth of 32.83% from CNY 313,503,561.35 in 2017[26]. - The company reported a total asset value of CNY 7,868,142,644.63 at the end of 2018, a 64.52% increase from CNY 4,782,559,508.59 in 2017[27]. - The company achieved a revenue of 6,912.58 million CNY in 2018, representing a year-on-year growth of 43.79%[72]. - The net profit attributable to shareholders reached 416.41 million CNY, an increase of 32.83% compared to 2017[72]. - The total assets increased by 64.52% year-on-year, reaching 7,868.14 million CNY, while liabilities rose by 130.72% to 3,698.30 million CNY[72]. - The gross profit margin for the main business was 37.81%, a decrease of 0.60 percentage points compared to the previous year[82]. Store Expansion and Operations - The number of stores increased by 1,552 during the reporting period, including 546 new direct-operated stores and 959 acquired stores, bringing the total to 3,611 stores[28]. - The company opened 1,552 new stores, resulting in a 75.38% increase in total store count[82]. - The company operates 3,611 retail stores across nine provinces and cities, including 169 franchise stores, as of December 31, 2018[37]. - The company added 1,552 stores during the reporting period, including 546 new direct-operated stores, 89 franchise stores, and 959 acquired stores, bringing the total number of stores to 3,611 as of December 31, 2018[105]. - The company completed 19 mergers and acquisitions in the reporting period, including the acquisition of 34 retail pharmacies for 66 million yuan and 65% of the equity of two other pharmacy chains for 34.45 million yuan and 35.75 million yuan respectively[49][50]. - The company is focusing on regional expansion, upgrading logistics centers in provinces such as Shanghai, Jiangsu, and Hubei[76]. Dividend Policy - The board proposed a cash dividend of RMB 3.00 per 10 shares, totaling RMB 113,041,801.80 to be distributed to shareholders[6]. - The cash dividend policy stipulates that if the company has no major capital expenditure plans, it will distribute at least 20% of the profit available for distribution to shareholders as cash dividends[144]. - The company plans to distribute cash dividends of RMB 3.00 per 10 shares, totaling RMB 113,041,801.80, which represents 27.15% of the net profit attributable to shareholders for the year 2018[146]. Risk Management - The company reported no significant risks that could materially affect its operations during the reporting period[8]. - The company has outlined potential risks in its operational analysis section, which investors should review[8]. - The company faces risks from industry policy changes, market competition, and the potential impact of rapid expansion on short-term performance[136][138][140]. Corporate Governance and Compliance - The company committed to providing accurate and complete information for transactions, ensuring no false records or misleading statements exist[150]. - The current directors and senior management pledged not to transfer benefits to other entities or individuals at the company's expense[150]. - The company guarantees compliance with relevant laws and regulations to protect the interests of its subsidiaries and shareholders[152]. - The company has established a framework to protect the rights and interests of all shareholders, ensuring no harm comes from its controlling actions[152]. Market Trends and Strategy - The ongoing healthcare reforms in China are expected to create new growth opportunities for the retail pharmacy sector[40]. - The company has established an e-commerce business since 2013, focusing on integrating online and offline retail[37]. - The health industry in China is projected to grow from 3.8 trillion yuan in 2015 to 16 trillion yuan by 2030, driven by an aging population and increasing chronic disease burden[124]. - The company plans to enhance its core competitiveness through brand image, professional services, product innovation, and business model innovation[129]. Employee Development and Training - The company emphasizes the importance of talent management and development to support its rapid growth and expansion plans[142]. - A comprehensive training system is in place to cultivate professionals in various fields, including pharmacy, marketing, logistics, and management[142]. - Over 95% of the frontline employees are graduates in medicine or pharmacy, supported by a comprehensive training system[64]. Sustainability and Social Responsibility - The company does not produce wastewater, waste gas, or solid waste during its retail operations, indicating a low environmental impact[200]. - The company actively participates in social welfare activities while focusing on its own development[197]. - The company emphasizes its corporate social responsibility by supporting education in impoverished areas through various initiatives[198].