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Market Vectors Rare EarthStrat Mtls ETF Message Board

JoeShhmoe 4 posts  |  Last Activity: Apr 24, 2015 1:57 PM Member since: Oct 10, 1998
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  • joeshhmoe by joeshhmoe Apr 24, 2015 1:57 PM Flag

    Looking long...

    Sentiment: Buy

  • joeshhmoe by joeshhmoe Apr 24, 2015 12:52 PM Flag

    Comparison of Years Ended December 31, 2013 and December 31, 2014



    Revenue. Our revenue was RMB2,953.3 million (US$476.0 million) in 2014 compared to RMB2,699.1 million in 2013. The same store sales (for 1,750 operating stores opened prior to December 31, 2012) increased by 9.0% from RMB3,541 in 2013 to RMB3,861 (US$622.3 million) in 2014. The increase in revenue as well as same store sales was driven by continued optimization of our merchandise portfolio, the closure of underperforming stores and more intensive sales promotion initiatives. Sales of over-the-counter drugs accounted for 39.2% and 40.1% of our revenue in 2013 and 2014, respectively; sales of prescription drugs accounted for 22.3% and 22.3% of our revenue in 2013 and 2014, respectively; and sales of nutritional supplements accounted for 14.5% and 13.3% of our revenue in 2013 and 2014, respectively.



    Gross Profit. Our gross profit was RMB1,230.5 million (US$198.3 million) in 2014 compared to RMB1,178.3 million in 2013. Our gross margin was 41.7% in 2014 compared to 43.7% in 2013. This decrease in gross margin was primarily due to downward pressure on sales price as a result of sales promotion initiatives to increase our market share.



    Operating Expenses. Our operating expenses were RMB1,233.5 million (US$198.8 million) in 2014 compared to RMB1,155.3 million in 2013. Operating expenses as a percentage of our revenue was 41.8% in 2014 compared to 42.8% in 2013.


    · Sales, Marketing and Other Operating Expenses. Our sales, marketing and other operating expenses increased by 6.9% from RMB1,026.8 million in 2013 to RMB1,098.0 million (US$177.0 million) in 2014, primarily due to increases in labor costs and rental expenditures.


    · General and Administrative Expenses. Our general and administrative expenses increased by 3.4% from RMB121.5 million in 2013 to RMB125.6 million (US$20.2 million) in 2014.


    · Impairment Losses. We recognized impairment losses of RMB7.0 million and RMB9.9 million (US$1.6 million) in 2013 and 2014, respectively, representing the reduction of the carrying amount of the property and equipment of certain underperforming stores.



    Income/Loss from Operations. As a result of the foregoing, we recorded loss from operations of RMB2.9 million (US$0.5 million) in 2014 compared to income from operations RMB23.0 million we generated in 2013. Our operating margin was negative 0.1% in 2014 compared to 0.9% in 2013.



    Net Interest Income. Our net interest income was RMB7.2 million (US$1.2 million) in 2014 compared to RMB15.7 million in 2013.



    Dividend Income from Cost Method Investments. Dividends received from our investments in companies accounted for under the cost method were RMB5.9 million (US$0.9 million) in 2014 compared to RMB5.2 million in 2013.



    Other Income. Other income increased from nil in 2013 to RMB3.1 million (US$0.5 million) in 2014, due to the disposal gains from the sales of one PRC subsidiary that operates drugstores and another PRC subsidiary that operates regional distribution center.



    Other Loss. Other loss increased from nil in 2013 to RMB0.5 million (US$0.1 million) in 2014, due to the disposal loss arising from disposal of one underperforming PRC subsidiary.



    Income Tax Expense. Our income tax expense decreased from RMB32.1 million in 2013 to RMB26.5 million (US$4.3 million) in 2014. Our effective tax rate increased to 208.4% in 2014 from 73.1% in 2013. The difference in effective income tax rate was primarily attributable to high operating losses sustained by certain loss-making subsidiaries in 2014, for which full valuation allowances were made on their deferred tax assets, and the tax effect from the waiver of intra-group liabilities. Pursuant to the Chinese Taxation Law, loss from the waiver of liabilities with related parties could be deducted from taxable income only after obtaining the respective approval from the tax authority. In the PRC, losses in companies which are part of a group are not allowed to be off-set against profits of other companies in the same group.


    60




    Net Income/Loss. As a result of the foregoing, we recorded a net loss of RMB13.8 million (US$2.2 million) in 2014 compared to net income of RMB11.8 million we generated in 2013.



    Comparison of Years Ended December 31, 2012 and December 31, 2013



    Revenue. Our revenue was RMB2,699.1 million in 2013 compared to RMB2,549.9 million in 2012. The same store sales (for 1,893 operating stores opened prior to December 31, 2011) increased by 10.3% from RMB3,167 in 2012 to RMB3,492 in 2013. The increase in revenue as well as same store sales was driven by continued optimization of our merchandise portfolio through diversification into non-pharmaceutical categories, the closure of underperforming stores and more intensive sales promotion initiatives. Sales of over-the-counter drugs accounted for 39.1% and 39.2% of our revenue in 2012 and 2013, respectively; sales of prescription drugs accounted for 20.4% and 22.3% of our revenue in 2012 and 2013, respectively; and sales of nutritional supplements accounted for 15.7% and 14.5% of our revenue in 2012 and 2013, respectively.



    Gross Profit. Our gross profit was RMB1,178.3 million in 2013 compared to RMB1,180.5 million in 2012. Our gross margin was 43.7% in 2013 compared to 46.3% in 2012. This decrease in gross margin was primarily due to downward pressure on sales price as a result of the implementation of more sales promotion initiatives to increase our market share.



    Operating Expenses. Our operating expenses were RMB1,155.3 million in 2013 compared to RMB1,135.1 million in 2012. Operating expenses as a percentage of our revenue was 42.8% in 2013, compared to 44.5% in 2012.


    · Sales, Marketing and Other Operating Expenses. Our sales, marketing and other operating expenses increased by 1.5% from RMB1,011.7 million in 2012 to RMB1,026.8 million in 2013, primarily due to the implementation of more sales promotion initiatives.


    · General and Administrative Expenses. Our general and administrative expenses increased by 5.0% from RMB115.7 million in 2012 to RMB121.5 million in 2013.


    · Impairment Losses. We recognized impairment losses of RMB7.6 million and RMB7.0 million in 2012 and 2013, respectively, representing the reduction of the carrying amount of the property and equipment of certain underperforming stores.



    Income from Operations. As a result of the foregoing, our income from operations was RMB23.0 million in 2013 compared to RMB46.9 million in 2012. Our operating margin was 0.9% in 2013 compared to 1.8% in 2012.



    Net Interest Income. Our net interest income was RMB15.7 million in 2013, compared to RMB16.4 million in 2012.



    Dividend Income from Cost Method Investments. Dividends received from our investments in companies accounted for under the cost method were RMB5.2 million in 2013 compared to RMB4.5 million in 2012.



    Equity in income of an equity method investee. Equity in income of an equity method investee was nil in 2013, compared to that of RMB1.3 million in 2012. The decrease was due to the disposal of our 40% interest in JZJ in 2012.



    Gain on Disposal of an Equity Method Investee. Gain on disposal of an equity method investee decreased from RMB68.4 million in 2012 to nil in 2013, due to the disposal of our 40% interest in JZJ in 2012.



    Income Tax Expense. Our income tax expense decreased from RMB47.6 million in 2012 to RMB32.1 million in 2013. Our effective tax rate increased to 73.1% in 2013 as compared to 34.6% in 2012, primarily due to non-deductible expenses and the relatively high operating losses from loss-making subsidiaries, for which full valuation allowances were made on their deferred tax assets as compared to the overall results of our company. In the PRC, losses in companies which are part of a group are not allowed to be off-set against profits of other companies in the same group. In addition, in February 2014, our company was denied its Hong Kong tax residency that applied to the year ended December 31, 2013 by the Hong Kong Inland Revenue Department. We are therefore now subject to a standard withholding tax rate of 10%, rather than a reduced tax rate of 5% under the tax treaty previously applied by us, for dividends to be paid or appropriated from our PRC subsidiaries.

  • Just asking...

  • Reply to

    Not a bad Company

    by powerk74 Mar 25, 2015 1:05 PM
    joeshhmoe joeshhmoe Apr 3, 2015 1:29 PM Flag

    I'm in a similar position. Just holding, not selling or buying.

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