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 we achieved record net profit of RMB98 million for the fiscal year 2016, an 86% increase from 2015. Our dividend for the fiscal year 2016 is SGD5 cents, up from SGD4.5 cents in 2015.



In 2Q2015, we closed down the Nanjing Nanzhan Store, our only store outside the Fujian province. The closure of the Nanjing store resulted in a net profit recognition of RMB42 million, arising from the reversal of past rental charges and related items. If we exclude the gains in Nanjing, which were mostly non-cash in nature, net profit in 2016 would have risen 6% to RMB56 million. The underlying improvement in earnings is encouraging. Moving forward, the negative contribution from the Nanjing store will end and resources can be re-deployed to other stores.

Revenue in 2016 grew by 5.1% to RMB872 million due to the addition of the Quangang Store and the Anxi Railway Station Store, as well as an improvement in sales in some stores. The new stores added a total of 15.5% of additional GFA post the closure of the Nanjing store.

Commissions from concessionaire sales grew 3.8% to RMB135 million on the back of a 5.8% growth in gross sales proceeds from concessionaire sales to RMB645 million. Direct sales revenue grew 11.1% to RMB662 million. Due to a change in our sales mix, revenue from rental income and managed rental income were lower by 24% and 34% respectively. Direct sales gross profit margin dipped slightly to 13.0% (from 13.3%) while commissions from concessionaire sales as a percentage of proceeds from concessionaire sales also showed a slight decline to 21.0% (from 21.4%).

Despite adding new stores in FY2016, selling and distribution expenses declined 12% to RMB213 million in FY2016 due to improvement in operating efficiency, VAT reform and the Nanjing Store closure. Administrative expenses for FY2016 grew by only 1% if we exclude the one-off non-cash items due to the Nanjing store closure. Otherwise, the reported administrative expenses rose 22% to RMB90 million.

In FY2016, the Group generated RMB93.8 million from its operating activities while using only RMB18.5 million for its investments, resulting in a strong positive free cash flow in 2016. Our generous dividend payout and the implementation of our share buyback mandate explained most of the financing cash outflow of RMB55.1 million. The Group remains debt-free with our cash on-hand rising RMB20 million to RMB288 million.

We are upgrading our IT system this year to enable several initiatives to be implemented. We are implementing self-checkout counters and mobile payment capability in many of our stores to reduce labour cost, cut waiting time and improve customers’ satisfaction. Promotional and marketing activities are carried out via smartphones. The Group will constantly look at ways to improve our work force productivity, reduce costs and improve our marketing effectiveness.

We are confident that 2017 will be another good year for the Group.

Chen Kaitong
CEO



我们很高兴地宣布,我们在2016 年财政年度创下人民币9,800 万 元的净利润记录,同比增长86%。

集团于2016 年第二季度结束南京南站店经营亏损的业务,这对 2016 年的财务表现和状况具有一定的影响,但大部分是非现金性 质。扣除南京2016 年非现金性质人民币 4,200 万实际上升6% 至 人民币5,600 万;南京店结业不仅会避免其营业亏损,还能把资 源转移到其他门店。

2016 年集团收入上升5.1% 至人民币8.72 亿元,主要因为来自 2016 年第四季度新开门店的贡献。联营收入上升3.8% 至人民币 1.35 亿元,自营收入上升11.1% 至人民币6.62 亿元。2016 年自 营毛利率全年同比则稍为下降0.3% 至13.0% (13.3%),主要由于 南京南站店于2016 年第二季度清货特卖,对毛利率有所影响。

我们的成本控制措施有效,2016 年销售费用同比下降12% 至人民 币2.13 亿元。主要是集团通过扁平化管理减少人员、南京南站店 结业,同时福建省增值税改革于2016 年5 月开始生效。尽管南 京南站店结业导致2016 年全年的营运销售费用同比上升22% 至 人民币9,000 万元。

我们拥有健康的现金流态势。经营活动带来的净现金流为人民币 9,380 万元。投资活动耗用的净现金流为人民币1,850 万元,主要 用于开设新门店增添固定资产。资金运作耗用的净现金流为人民 币5,510 万元,主要用作于派发股息和股票回购。现金款在2016 年全年增加人民币1,970 万元至人民币2.88 亿元。

2017 年我们会通过升级软件系统,在集团公司运营上充分利用互 联网的优势,增加自助收款机,及互联网功能的营销模式,提升 市场营销,减少人工,方便顾客,提高工作效率,提升集团运营 效率和竞争力。在拓展门店方面,虽然我们保持谨慎的方式,但 我们也在积极寻找新的购物中心,并着重寻找中小型超市。我们 认为经济放缓将有更多的机会。

我们将继续改善我们整体的营运方式,改进生产力。只要我们继 续努力,2017 年及未来,我们和所有利益相关者将有更好的前景。

陈开通
总裁