Better Life(SZ:002251)2020-04-24 16:00Financial Performance - The total operating revenue for 2019 was CNY 19,661,390,349, representing a 6.87% increase compared to CNY 18,397,871,068 in 2018[16]. - The net profit attributable to shareholders was CNY 172,812,885.74, reflecting a growth of 10.18% from CNY 156,851,592.98 in the previous year[16]. - The net cash flow from operating activities increased by 36.65% to CNY 1,763,297,112 from CNY 1,290,354,228 in 2018[16]. - Basic earnings per share rose to CNY 0.2000, a 10.13% increase from CNY 0.1816 in 2018[16]. - The weighted average return on equity was 1.97% for 2019, down from 2.24% in 2018[16]. - The company reported a significant quarterly revenue of CNY 5,633,495,417.73 in Q1 2019, with a decline in net profit in Q3 and Q4[21]. - The company experienced a net loss in Q3 and Q4, with net profits of -CNY 11,230,974.06 and -CNY 59,780,905.02 respectively[21]. - The gross profit margin improved to 24.11%, up by 1.16 percentage points year-on-year, attributed to enhanced bargaining power with suppliers and digital transformation initiatives[50]. - The company reported a decline in operating profit to CNY 22,575.73 million, down 6.99% year-on-year, impacted by increased financial costs related to ongoing projects[52]. - The company's net profit attributable to shareholders was CNY 17,281.29 million, representing a 10.18% increase compared to the previous year[48]. Assets and Liabilities - Total assets at the end of 2019 were CNY 24,377,769,523, up 6.30% from CNY 22,931,928,878 in 2018[17]. - The company's net assets attributable to shareholders decreased by 18.36% to CNY 7,558,862,369 from CNY 9,258,971,779 in 2018[17]. - The company's total liabilities increased significantly, with accounts payable rising to approximately 3.83 billion yuan (15.72%), up from 3.39 billion yuan (14.79%) at the beginning of the year[82]. - The company's debt-to-asset ratio rose to 67.86%, an increase of 9.39 percentage points compared to the previous year, primarily due to increased bank loans for operational expansion[83]. - The company's total assets of the company as of the reporting date amounted to 2,246.20 million RMB[92]. Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 1 per 10 shares, based on a total of 863,903,951 shares[4]. - The cash dividend for 2019 represents 49.99% of the net profit attributable to ordinary shareholders[128]. - The cash dividend distribution plan for 2019 proposes a cash dividend of 1 yuan per 10 shares, totaling 86,390,395.10 yuan, based on 863,903,951 shares[129]. - The company committed to distributing dividends of no less than 20% of the distributable profits achieved in the year, subject to meeting the conditions set forth in the Articles of Association[132]. - The company aims to conduct cash dividends annually over the next three years, based on cumulative distributable profits and capital reserves[133]. Market Expansion and Strategy - The company operates 402 stores across Hunan, Guangxi, Jiangxi, and Sichuan-Chongqing regions, maintaining a leading position in the retail industry in Hunan and Guangxi[27]. - The company plans to expand its market presence beyond Hunan, having successfully entered Jiangxi, Sichuan-Chongqing, and Guangxi regions, with a focus on maintaining rapid growth[32]. - The company is focusing on digital transformation, emphasizing "digital membership, digital marketing, and digital operations" to enhance its smart retail model[28]. - The company is leveraging partnerships with Tencent and JD.com to accelerate its digital transformation and gain a competitive edge in the retail sector[33]. - The company plans to expand its presence in county-level cities, aiming for 100% coverage in Hunan Province by 2022, and 40% in both Jiangxi and Guangxi Provinces[116]. Operational Efficiency and Supply Chain - The company is undergoing a supply chain transformation centered on fresh produce, aiming to reduce intermediaries and gradually increase gross margins[28]. - The company has established a stable supply chain with numerous international and domestic brand suppliers, ensuring high-quality product availability[32]. - The company has implemented a smart logistics project to enhance supply chain efficiency, ensuring product quality and timely delivery[45]. - The company has adopted a dual-format strategy, combining supermarkets and department stores to enhance customer shopping experiences[32]. - The company aims to enhance its supply chain capabilities to support its growth strategy and improve operational efficiency[117]. Research and Development - Research and development expenses totaled CNY 3,144.11 million, with a focus on enhancing core retail operations through systems like the ERP and logistics systems[52]. - The company’s research and development expenses increased from 8,637,717.37 to 25,811,977.03, indicating a focus on innovation and product development[136]. Corporate Social Responsibility - In 2019, the company helped 78 impoverished villages and established 60 poverty alleviation procurement bases, signing strategic cooperation agreements with 12 impoverished counties[184]. - The company invested 2 million RMB in the Hunan Gongmi Agricultural Yanzhuo Rice Factory, which has a production capacity of 40 tons per day and directly creates 42 jobs[184]. - The company facilitated the sale of poverty alleviation products through over 600 physical stores and monthly agricultural product exhibitions, promoting a new model of consumer-driven poverty alleviation[185]. Legal and Compliance - The company is involved in a lawsuit with Hunan Fourth Engineering Co., claiming a total of 81.57 million yuan, while the company has counterclaimed for 29.57 million yuan[153]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties during the reporting period[134]. - The company has ensured compliance with the commitments made regarding related party transactions and has taken necessary measures to avoid conflicts of interest[132]. Future Outlook - The company anticipates continued growth in user data and market share in the upcoming fiscal year[93]. - Future guidance indicates a continued emphasis on enhancing user engagement and service offerings[160]. - The company plans to invest 1,532 million yuan in the Changsha Qianyuan International project and 1,034 million yuan in the Shuangfeng Caizhi Plaza project using remaining fundraising funds[104].