Hefei Dept(SZ:000417)2019-04-03 16:00Financial Performance - The company's operating revenue for 2018 was CNY 10,681,935,553.97, representing a year-on-year increase of 2.81%[18]. - The net profit attributable to shareholders for 2018 was CNY 224,495,838.41, reflecting a growth of 5.32% compared to the previous year[18]. - The net profit after deducting non-recurring gains and losses was CNY 209,196,847.60, which is a 9.18% increase from 2017[18]. - The net cash flow from operating activities reached CNY 692,754,824.14, up by 9.25% year-on-year[18]. - The total assets at the end of 2018 amounted to CNY 10,511,662,887.84, an increase of 4.11% from the previous year[19]. - The net assets attributable to shareholders were CNY 3,769,021,285.04, showing a growth of 2.88% compared to 2017[19]. - The total revenue for 2018 was approximately ¥10.68 billion, representing a year-on-year increase of 2.81% compared to ¥10.39 billion in 2017[52]. - The revenue from the department store sector (including home appliances) was ¥6.50 billion, accounting for 60.84% of total revenue, with a slight decrease of 0.13% year-on-year[52]. - The supermarket sector saw a revenue increase of 6.70% year-on-year, reaching ¥3.57 billion, which constituted 33.38% of total revenue[52]. - The real estate sector experienced significant growth, with revenue increasing by 21.13% year-on-year to ¥313.97 million[52]. Dividend Distribution - The company plans to distribute a cash dividend of 1.50 RMB per 10 shares to all shareholders based on a total share capital of 779,884,200 shares as of December 31, 2018[4]. - The company approved a cash dividend of RMB 1.5 per 10 shares for the 2018 fiscal year, totaling RMB 116,982,630, which is 52.11% of the net profit attributable to shareholders[101]. - The cash dividend policy complies with the company's articles of association and has been approved by the shareholders' meeting[102]. - The company has maintained a consistent cash dividend distribution of RMB 1.5 per 10 shares for the past three years[104]. - The total cash dividend distributed over the last three years was RMB 350,947,890, representing 52.11%, 54.88%, and 41.35% of the respective net profits for 2018, 2017, and 2016[105]. Business Operations - The company operates 233 physical stores across various retail formats, maintaining a leading position in the Anhui market[28]. - The retail segment contributed 60.84% of total revenue, while the supermarket segment accounted for 33.38%[28]. - The company opened 30 new chain outlets during the reporting period, increasing its operating area by nearly 200,000 square meters[38]. - The company launched 11 new cross-border direct sales center stores, significantly boosting sales[37]. - The company’s "three self" product sales reached nearly 800 million CNY, achieving double growth in sales gross profit[37]. - The company has established three regional business centers to unify product procurement management and promote resource sharing[38]. - The company opened its first comprehensive shopping center, Binhu Xinyue City, and its first discount lifestyle center, Baiyan Outlet Life Plaza, enhancing its business model[39]. - The company has 180 supermarkets and 27 appliance stores in Anhui Province, generating a total revenue of approximately 487.93 million CNY from supermarkets and 111.35 million CNY from appliance stores[41]. - During the reporting period, the company added 23 new supermarkets and 3 new department stores, contributing an additional revenue of approximately 146.07 million CNY[44]. Market Strategy and Future Plans - The company aims to achieve a revenue target of 10.7 billion yuan for 2019, focusing on growth in retail and agricultural product circulation[86]. - The strategic plan includes a "123456" framework emphasizing brand, channel, service, and team advantages, aiming for a transition from scale efficiency to quality efficiency[84]. - The company plans to enhance its retail model by optimizing product control and increasing direct sourcing, particularly in fresh produce[88]. - The company will leverage new technologies and marketing innovations to improve sales precision and enhance customer engagement[88]. - The agricultural product circulation segment will focus on market resource activation and expanding direct sales to significantly boost main business performance[89]. - The company is responding to consumer demand changes by strengthening experiential upgrades and optimizing its retail format[87]. - The company recognizes the challenges posed by economic pressures and rising operational costs, which may impact consumer spending growth[86]. - The company is committed to enhancing its service quality and customer satisfaction through improved member management and personalized marketing[88]. - The company is focused on expanding community-based retail formats, including community supermarkets and fresh food stores, to drive new profit breakthroughs[90]. Corporate Governance and Management - The company has a clear and transparent decision-making process for profit distribution, involving independent directors and ensuring minority shareholders' rights are protected[102]. - The company’s governance structure includes a mix of experienced executives and independent directors to ensure effective oversight[185][186]. - The company continues to operate under the supervision of its actual controller without any significant changes in ownership structure[180]. - The total remuneration paid to directors, supervisors, and senior management during the reporting period amounted to CNY 3.6175 million[194]. - The company employed a total of 9,558 staff, with 7,165 in sales roles, 362 in technical positions, and 297 in finance[196]. - The company has no stock incentive plans for directors and senior management during the reporting period[195]. - The average age of the current board members and supervisors is around 50 years[195]. Social Responsibility and Community Engagement - The company was recognized as an "Advanced Charity Unit" in Hefei for its contributions to social welfare and community support[148]. - The company’s "Heart Joy" service brand was awarded the "Excellent Brand of Quality Service" in Anhui Province[145]. - The company established five product sales zones for agricultural products from impoverished areas, providing free promotional support valued at 500,000 CNY[150]. - The company provided assistance to 202 individuals through its mutual aid fund during the reporting period[146]. - The company has committed over 500,000 RMB in scholarships for impoverished university students through its "Golden Autumn Assistance" program[153]. - The company is actively involved in social welfare activities, including support for left-behind children and elderly care, demonstrating its commitment to corporate social responsibility[153]. Risk Management and Internal Control - The company implemented an internal control system improvement initiative, revising the Internal Control Management Manual to enhance risk management[40]. - The company is focused on improving operational quality and core competitiveness while managing various operational risks due to its expanding scale[96]. - The company will strengthen cost control and efficiency improvements through refined management practices and enhanced internal control systems[93]. Investments and Financial Management - The company plans to invest 2.1 billion yuan in 2019 for market project construction, store renovations, and investment expansion[94]. - The company plans to utilize up to 400 million RMB of idle funds for entrusted wealth management to enhance the efficiency of its existing capital[161]. - The company provided a maximum guarantee of 250,000,000 RMB for qualified buyers applying for mortgage loans for commercial properties, with a balance of 47,260,000 RMB at the end of the reporting period[135]. - The company provided a maximum guarantee of 294,000,000 RMB for qualified buyers applying for mortgage loans for residential properties, with a balance of 266,895,000 RMB at the end of the reporting period[136].