Corporate Information

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Corporate Profile
Chairman's Statement
CEO's Statement
Board of Directors

CEO's Statement

Dear Shareholders,

We are pleased to announce that the Group is able to achieve record revenue of RMB971m in 2017.



We are pleased to announce that the Group is able to achieve record revenue of RMB971m in 2017. Net profit fell to RMB54 million in 2017 primarily due to non-cash financial impact arising from a store closure in 2016. Excluding the non-cash financial impact from the store closure, net profit in 2017 fell by 4% from the previous year. The full year contribution from the new stores in Quangang and Anxi boosted revenue in 2017. In particular, direct sales revenue and commissions from concessionaire sales grew in FY2017 by a respective 17% to RMB772 million and 6% to RMB144 million. Although rental income and managed rental income fell 20% and 37% respectively due to a change in our sales mix, the decline in both segments have stablised over the last few quarters of 2017. Gross profit margin from direct sales fell to 11.8% (from 13.0%) due to heavier discounting. Commissions from concessionaire sales as a percentage of proceeds from concessionaire sales also showed a margin dip to 20.9 (from 21.0%).

Despite the full year effect from the new stores in FY2017, selling and distribution expenses fell by a marginal 1% to RMB212 million primarily due to lower rental expenses arising from the acquisition of the premises of Quanzhou Hui’an Chengnan Store. Administrative expenses fell 2% to RMB88 million in FY2017.

The Group generated RMB82 million (from RMB94 million) of net cashflow from operating activities. However, RMB129 million was mainly used to acquire the premises of Quanzhou Hui’an Chengnan Store and together with other cashflow items, resulted in our cash on-hand falling to RMB187 million (from RMB288 million). Due to the reduced cash level, we have reduced dividend for FY2017 to SGD2.5c per share from SGD5.0c per share.

The Group will continue to work on initiatives to improve our productivity, upgrade our software systems, utilise modern mobile and internet marketing, reduce manpower needs, increase customer satisfaction, improve our competitive advantage so that 2018 and 2019 may be better years for our stakeholders.

Chen Kaitong
CEO



我们很高兴地宣布,我们在2017 年财政年度创下人民币9.71 亿 元的收入记录。但由于2016 年门店结业的财务影响(非现金) 到2017 年的财务数据,所以净利同比较大的降幅至人民币5,400 万元;排除门店结业的影响,2017 年净溢利同比下降4%。2017 年收入增长是因为泉港店和安溪火车站店的全年贡献;自营收入 同比增长17% 至人民币7.72 亿元;联营收入增长6% 至人民币1.44 亿元;出租收入和承包收入同比下降20% 和37%,主要因为市场 变化及公司销售组合调整。尽管如此,出租和承包的收入已经在 前几个季度开始平稳了,自营毛利率是11.8%(同比13.0%), 下降原因是促销活动的增加,联营佣金率同比从21.0% 微跌到 20.9%。

虽然2017 年有新店全年开业影响,总销售费用仍同比下降1% 至 人民币2.12 亿元,主要是购买泉州惠安城南店商场物业导致租赁 费用下降,2017 年度管理费用同比下降2% 至人民币8,800 万元。 经营活动带来的净现金流为人民币8,200 万元,投资活动耗用的 净现金流为人民币12,900 万元,用于购买泉州惠安城南店商场物 业。现金款从2016 年的人民币2.88 亿元减少到2017 年的人民 币1.87 亿元。根据财务的准则,公司在2017 年度的红利只能是 每股新币2.5 分。

我们通过提高劳动效率,升级软件系统,运营上充分利用现代互 联网+ 的宣传,增加互联网功能的营销模式,提升市场营销,增 效减员,方便顾客,提高集团运营效率和竞争力,我们将使2018 及2019 年成为我们和所有利益相关者的好年头的起航。

陈开通
总裁