**"38 Retailers' 2018 Scorecards and 2019 Plans"... According to the National Bureau of Statistics, the growth rate of total retail sales of consumer goods from 2016 to 2018 was 10.4%, 10.2%, and 9%, respectively. The growth rate is still fast, but the increase is declining year by year. It is reported that entering 2019, the contradictions and risks accumulated over the long term in economic development have become more prominent, the consumer market is under greater pressure, and consumption growth may further slow down. However, China has a large market of nearly 1.4 billion people, including 400 million middle-income groups, which contains huge demand for upgrades. The consumer market has great potential, strong resilience, vitality, and good growth prospects. It is expected that in 2019, the total retail sales of consumer goods will continue to be in a stable and relatively fast growth range. Since the beginning of this year, listed retailers such as Walmart, Sun Art Retail Group, Carrefour, Yonghui Superstores, and Renrenle have successively released their 2018 performance reports. From these financial reports, we can roughly understand their 2018 scorecards and 2019 development directions.

Supermarkets

  1. Walmart: E-commerce surges over 40%, but China market performance declines On the evening of February 19, Walmart announced its fourth-quarter results for fiscal year 2019. Walmart's revenue reached $138.8 billion, a year-on-year increase of 1.9%, in line with expectations of $138.7 billion; excluding currency effects, revenue for the quarter was $140.5 billion, up 3.1% year-on-year. In the fourth quarter, Walmart's e-commerce business grew 43% year-on-year, the same growth rate as the previous quarter. (Image: compiled by iyiou.com) Sam's Club same-store sales increased 3.3%, and its e-commerce business grew 21%. Same-store sales in the Chinese market fell 0.2% compared with the same period last year. The financial report explained that the main reasons for the decline in China market performance were: the Mid-Autumn Festival shifted from October to September in 2017; fierce competition from online and traditional retailers; and the impact of China's macroeconomic environment. Over the past year, in order to improve its performance in China, Walmart has increased its investment in JD Daojia. Now more than half of Walmart's stores in China support delivery to home. In addition, Walmart expanded its self-checkout scan-and-go service to more than 90% of its stores. Walmart now has more than 400 stores in China and plans to open 300 more stores in China and Mexico. For the fiscal year 2020 outlook, Walmart said it expects sales growth of at least 3 percentage points. Positive factors that may affect growth mainly include the acquisition of Indian e-commerce platform Flipkart, but the sale of Walmart Brazil and restrictions on tobacco sales at Sam's Club may have a negative impact on Walmart's growth.

  2. Carrefour: Greater China profit up 11 times On February 28, Carrefour Group announced its full-year 2018 results. Full-year sales increased 1.4% year-on-year to €85 billion, and profit increased 4.6%. Among them, in 2018, the China region performed well, driving a significant profit increase in Greater China, up 11 times year-on-year to RMB 350 million. In China, Carrefour actively embraces market changes and continuously innovates. While renovating and upgrading stores, it vigorously enhances digital capabilities, connects consumption scenarios, and creates a new shopping experience in the new era of consumption upgrade. Increasing digitalization. In May 2018, Carrefour China's smart retail flagship store Le Marche officially opened, focusing on fresh food, catering, imported and organic products, while incorporating new technologies such as "self-checkout," "face recognition payment," "mini-program scan-and-go," and "electronic price tags." Expanding private brands. As of now, Carrefour China has nearly 500 private brand products, and all products have passed Carrefour Group audits or hold certification recognized by the Global Food Safety Initiative. Testing multiple models. In November 2018, Carrefour cooperated with Gome, and the first 11 renovated stores officially opened in four cities: Beijing, Shanghai, Wuxi, and Hangzhou. Continuous supply chain layout. Six modern logistics distribution centers have been put into use, achieving full coverage of logistics distribution for stores nationwide, forming a resource integration of online e-commerce and offline stores. Supporting cold chain centers and fresh food warehouses are also under construction.

  3. Sun Art Retail Group: RT-Mart and Auchan fully integrated, new retail to accelerate in 2019 On the evening of March 3, Sun Art Retail Group announced its annual results for the year ended December 31, 2018. Revenue and net profit both declined for the first time in three years. As of December 31, 2018, Sun Art Retail Group achieved total sales revenue of RMB 101.315 billion, a year-on-year decrease of 1.0%; revenue of RMB 99.359 billion, a year-on-year decrease of 2.9%; operating profit of RMB 4.196 billion, down 6.5%; profit attributable to equity shareholders of RMB 2.588 billion, a year-on-year decrease of 7.3%. In 2018, Sun Art Retail Group opened 24 new comprehensive hypermarkets, all under the RT-Mart brand. Among the new stores, six were in East China, four in North China, two in Northeast China, three in Central China, four in West China, and five in South China. In addition, one RT-Mart store in Changxing County, Huzhou City, was closed. As of December 31, 2018, Sun Art Retail Group had 484 comprehensive hypermarkets nationwide, with a total construction area of approximately 13 million square meters, of which approximately 70.0% were leased stores, 29.8% were self-owned property stores, and 0.2% were contracted stores. Sun Art Retail Group stated that its dual brands have been further integrated. As brother companies under Sun Art, RT-Mart and Auchan have cooperated in many fields and established a joint operations headquarters. At the same time, the board announced that Huang Mingduan has been conditionally appointed as the company's CEO. On March 4, Sun Art Retail Group held a results conference in Hong Kong. The chairman of RT-Mart China told Zhitong Finance APP that 2018 was the first year of Sun Art's digital transformation, 2019 will be a year of accelerated new retail reform, and 2020 will usher in the harvest period for digital transformation. Regarding the profit gap of 2-3 percentage points between Auchan and RT-Mart, the company expects to gradually close the gap over three years.

  4. Yonghui Superstores: Revenue exceeds RMB 70 billion for the first time, plans to open 150 new stores in 2019 On April 25, Yonghui Superstores released its 2018 annual report. The company achieved total operating revenue of RMB 70.5 billion, a year-on-year increase of 20.35%. Net profit attributable to shareholders of the listed company was RMB 1.48 billion, a year-on-year decrease of 18.52%. In 2018, the company opened 135 new stores (excluding membership stores and Super Species), with an area of 962,500 square meters, completing the store opening task set at the beginning of the year. The total number of opened stores was 708, covering 24 provinces and municipalities directly under the central government. There were 240 signed but unopened stores, with a reserved area of 1.8848 million square meters. (Image: compiled by iyiou.com) In 2018, six stores were closed: Chongqing Xiushan store, Fujian Jinhui store, Fujian Jinxiang store, Fujian Yuefeng store, Fujian Ganzhe store, and Jiangsu Changshu Parkson store. Future business plans:

  5. Store opening plan: open 150 new stores and explore the new format "Mini Store."

  6. Complement national and provincial supply chains, delegate regional self-procurement authority (covering one village, one township, one county, one product); expand overseas direct procurement, create private brands and quality customized products, focus on core projects and single products; establish a supplier grading management system, strengthen and improve supplier introduction and exit evaluation mechanisms.

  7. Integrate the original systems, processes, sharing, and evaluation mechanisms of the first and second clusters to form a unified, systematic, standardized, and process-oriented human resources system. Combined with the development of new formats such as Mini Stores, integrate human resources, prepare mechanisms and personnel reserves in advance, and focus on talent reserve and training in new provinces and new areas.

  8. Establish a large technology department, rebuild the in-store system, build a new home delivery system, and unify the office portal entrance.

  9. Renrenle: Faces delisting crisis again, plans to open 20 new stores In 2018, Renrenle's net profit attributable to shareholders of the listed company was -RMB 345 million, marking two consecutive years of losses. Before a brief profit in 2016, Renrenle was also in a loss state in 2014 and 2015. On the evening of February 27, Renrenle released its 2018 performance express report. Renrenle achieved operating revenue of RMB 8.125 billion, a year-on-year decrease of 8.24%; operating profit of -RMB 302 million, a year-on-year increase of 29.92%; total profit of -RMB 318 million, a year-on-year increase of 39.35%; net profit attributable to shareholders of the listed company of -RMB 345 million, a year-on-year increase of 35.91%. In recent years, Renrenle has also renovated and upgraded existing hypermarkets by reducing leased area, adjusting spatial layout, optimizing product structure, updating equipment and facilities, and adding online services. It has also launched new retail formats such as Lesuper, Lelife, and Lefresh. However, Renrenle also stated that new format stores require a certain period of cultivation after opening. The length of the cultivation period will be affected by factors such as the store's location, business district, customer base, and competition. Currently, the new formats contribute limited growth to overall revenue. In 2018, Renrenle also spent RMB 350 million to subscribe to shares of cosmetics company "Qingdao Kingking," hoping to leverage Kingking's supply chain advantages in the cosmetics industry to expand terminal retail scope. In the same year, Renrenle also established cooperation with Dmall for digital transformation. Stores nationwide successively launched Dmall free purchase, O2O, and other services. At the beginning of 2019, Renrenle opened two new stores: Tianjin Xianshuigu store and Shaanxi Luonan store. According to insiders, the company plans to open nearly 20 new stores this year.

  10. Lotus: Loss of RMB 288 million, will launch new store brand On the evening of February 27, Lotus announced its 2018 annual results. The report showed that Lotus achieved revenue of RMB 10.122 billion in 2018, an increase of 4.8% year-on-year; net loss attributable to shareholders was approximately RMB 288 million, turning from profit to loss compared with a profit of RMB 179 million in 2017. In terms of store expansion, Lotus opened 11 new stores in 2018, including 8 hypermarkets, 2 premium supermarkets, and 1 neighborhood convenience store. As of December 31, 2018, Lotus Group owned and operated 80 retail stores and 3 shopping centers. In terms of O2O, Lotus continued to promote the integration of online and offline channels, improve the operation level of its self-developed e-commerce shopping APP "LOTUS-GO," and continue to deepen cooperation with large e-commerce platforms such as JD.com, Tmall, and Meituan. In terms of supply chain, in 2018, Lotus focused on the construction of three core categories: import, fresh food, and private brands, by leveraging the resources of CP Group. According to the plan, Lotus will open stores in various formats in 2019, launch a new store brand with food as the main product, and explore new models of opening professional areas in stores.

  11. New Huadu: Turned losses into profits, net profit increased 138.93% On February 27, New Huadu released its 2018 performance express report. In 2018, it achieved operating revenue of RMB 6.85 billion, a year-on-year decrease of 1.76%; operating profit of RMB 50.2488 million, a year-on-year increase of 484.30%; total profit of RMB 50.9248 million, a year-on-year increase of 391.16%; net profit attributable to shareholders of the listed company of RMB 20.4157 million, a year-on-year increase of 138.93%, turning losses into profits. New Huadu stated that the decrease in total operating revenue compared with the same period last year was mainly due to the divestiture of the tobacco business during the reporting period. The significant increase in profit was mainly due to: the company's continued efforts to optimize and integrate the supply chain, reduce costs, and improve overall gross margin; and investment income from the transfer of 90% equity of New Huadu (Fujian) Logistics Co., Ltd.

  12. Hongqi Chain: Revenue increased 4.05%, net profit increased 91.21% On February 27, Hongqi Chain released its 2018 performance express report. In 2018, it achieved operating revenue of RMB 7.22 billion, a year-on-year increase of 4.05%, and net profit attributable to shareholders of the listed company of RMB 315 million, a year-on-year increase of 91.21%. Hongqi Chain stated that the profit growth was mainly due to the company's continuous optimization of product structure, improvement of store management efficiency, and strengthening of internal control management. At the same time, in 2018, the company raised salaries three times and increased year-end bonuses, giving employees a sense of gain from the company's development, further enhancing corporate cohesion, and leading to sustained growth in operating performance. In addition, in 2018, the profit model of Xinwang Bank gradually matured, the overall operation was good, and performance significantly exceeded expectations (by about 30%).

  13. Better Life (Bubugao): Revenue of RMB 18.3 billion, up 6.65% year-on-year Recently, Better Life released its 2018 performance express report. In 2018, Better Life achieved operating revenue of RMB 18.398 billion, a year-on-year increase of 6.65%; net profit attributable to the parent company was RMB 156 million, an increase of 3.45% year-on-year. In 2018, Better Life opened 38 new stores in the supermarket format and 2 in the department store format, while closing 15 stores that had no hope of turning profitable within 2-3 years or whose properties could not be renewed. As of December 31, 2018, Better Life had 341 stores of various formats. Better Life stated that in 2018, the company seized the opportunity of "smart retail" and firmly promoted comprehensive digital transformation in cooperation with Tencent and JD.com. In the overall smart retail format, Better Buy, JD.com, Dmall, and Meituan home delivery O+O totaled 574,800 orders, with operating revenue of RMB 30.3367 million; Better Buy membership codes, scan-and-go, Dmall self-service, and WeChat self-service together generated operating revenue of RMB 391 million. As of December 31, 2018, Better Life had 5.008 million digital members, of which new customers accounted for 63%; member sales accounted for 63.8%. Better Life stated that after strategically binding with Tencent and JD.com, the company fully enjoys the traffic advantages of the Tencent system at the front end, and complements JD.com's warehousing, logistics, and product supply chain resources at the back end, becoming Tencent and JD.com's core partner in the Greater Southwest region. In 2019, Better Life will carry out deeper and broader cooperation with Tencent and JD.com, continue to focus on "incremental growth from existing stock," supply chain integration, and traffic monetization for innovative operations, fully releasing the company's development momentum.

  14. Zhongbai Group: Revenue increased 0.02%, net profit increased 533.84% On January 31, Zhongbai Group released its 2018 performance express report. The report showed that the company achieved operating revenue of RMB 15.208 billion in 2018, a year-on-year increase of 0.02%; total profit of RMB 629 million, a year-on-year increase of 327.65%; net profit attributable to shareholders of the listed company of RMB 429 million, a year-on-year increase of 533.84%. The performance growth was mainly due to: this year, the company's subsidiary Zhongbai Warehouse Company's Luoshi Road store demolition compensation increased net profit by RMB 427 million; in the same period last year, the completion of the Jiangxia Zhongbai Shopping Plaza asset securitization project increased net profit by RMB 179 million. In the fourth quarter, the company increased adjustments to loss-making stores, and closing loss-making stores incurred closure losses.

  15. Sanjiang Shopping Club: Revenue of RMB 4.133 billion, up 9.64% year-on-year On the evening of April 12, Sanjiang Shopping Club announced its latest 2018 financial report. Full-year operating revenue was RMB 4.133 billion, an increase of 9.64% over 2017. Net profit attributable to shareholders of the listed company was approximately RMB 112 million, an increase of 2.7% year-on-year. Among them, online sales revenue was approximately RMB 272 million, accounting for 6.86% of main business revenue, an increase of 275.55% year-on-year. Sanjiang Shopping Club stated that through the Sanjiang Shopping Club APP, innovative stores, and Taoxianda, it accelerated the integration of online and offline. It is understood that Sanjiang Shopping Club mainly operates three formats: supermarkets, innovative stores, and small format stores. It adopts a chain operation method. Store locations are generally near communities, and the product structure is mainly daily consumer goods for community residents, meeting the daily needs of community residents. As of the end of the reporting period, Sanjiang Shopping Club had developed 202 stores in the province. Among them, 6 stores were closed in 2018 and 39 new stores were opened. Self-checkout has been basically popularized in stores.

  16. Jiajiayue: Revenue of RMB 12.731 billion, up 12.36% year-on-year On the evening of April 18, Jiajiayue released its 2018 annual report. The announcement showed that Jiajiayue achieved operating revenue of RMB 12.731 billion in 2018, a year-on-year increase of 12.36%; net profit attributable to shareholders of the listed company was RMB 430 million, a year-on-year increase of 38.35%. As of the end of December 2018, Jiajiayue had 732 chain stores, including 105 hypermarkets, 54 comprehensive supermarkets, 56 specialty stores such as Baobaoyue, 12 department stores, and 17 convenience stores. The announcement showed that in terms of store expansion, in 2018, Jiajiayue added 85 new stores (including the acquisition of Fuyuexiang), including 19 hypermarkets, 40 comprehensive supermarkets, 14 specialty stores such as Baobaoyue, and 12 convenience stores. Among them, 49 new stores were opened in Weihai and Yantai, and 36 new stores were opened in other areas of Shandong such as Qingdao and Jinan. In terms of warehousing and logistics, in 2018, Jiajiayue had four normal temperature logistics centers in operation: Weihai, Yantai, Jinan Laiwu, and Qingdao, with a total storage area of about 120,000 square meters and an average daily throughput of about 220,000 pieces. In terms of membership, in 2018, Jiajiayue had 6.0349 million members, of which 877,000 were electronic members. In that year, 1.3957 million new members were added, a 30.08% increase from the beginning of the year. Member contribution to store sales reached 75.73%, member traffic was 168 million person-times, a year-on-year increase of 5.03%, and member average transaction value increased by 5.17%. In terms of investment and acquisitions, in November 2018, Jiajiayue cooperated with Fuyuexiang to expand the North China market, laying the foundation for national expansion. It carried out online cooperation with third parties, added online business to more than 10 stores, and explored omni-channel marketing models. In 2019, Jiajiayue will continue to adhere to the network strategy of regional density, urban-rural integration, and multi-format development, simultaneously promoting provincial expansion and external expansion, accelerating site selection and store opening speed, expanding coverage across the province, and planning to open 100 new stores. At the same time, accelerate store upgrades and renovations. According to the business district customer base and consumer demand, accurately position renovated stores in terms of store design, product configuration, etc., and launch the SAP system project to create an online-offline integrated omni-channel model. It is necessary to integrate resources, through the model of brand + supply chain + technology + capital, carry out external cooperation and supply chain output services, and build an open platform.

  17. Hualian Supermarket (BHG): Revenue of RMB 11.595 billion, down 1.47% year-on-year On the evening of April 24, Hualian Supermarket released its 2018 annual report. The company achieved operating revenue of RMB 11.595 billion, a decrease of 1.47% compared with the same period last year; net profit attributable to the parent company was RMB 83.3987 million, an increase of 6.18% compared with the same period last year. According to the report, in 2018, Hualian Supermarket opened 6 new stores. In 2019, it plans to open about 10-20 stores, with an investment scale of about RMB 20 million per store. The above capital needs will be solved through self-owned funds, bond issuance, bank loans, and other methods. In 2019, Hualian Supermarket will seriously implement the fresh food strategy, private brand strategy, and regional leadership strategy, adjust the human resources structure, and improve the company's comprehensive operating capabilities. Adhere to the fresh food self-operation strategy, improve self-operation capabilities, ensure the quality, freshness, and price image of fresh food categories, and solve the people's "vegetable basket" problem.

  18. Lianhua Supermarket: Revenue of RMB 25.389 billion, up 0.6% year-on-year On March 29, Lianhua Supermarket released its 2018 financial report. The company achieved operating revenue of approximately RMB 25.389 billion, an increase of approximately 0.65% year-on-year; net profit attributable to shareholders of the listed company was approximately -RMB 219 million, a year-on-year reduction in losses of approximately RMB 64 million. For the growth in operating revenue, the financial report believes it is mainly due to the group's supermarket format adding new outlets and the initial results of transformation and upgrading of outlets. The turnover of the supermarket format increased by approximately RMB 570 million year-on-year, an increase of approximately 7.1%. The financial report showed that last year Lianhua Supermarket opened a total of 314 new stores, the most since 2013, of which 211 were franchised stores and 103 were directly operated stores. It is reported that Lianhua Supermarket carried out category transformation of the supermarket format according to different functional positioning, adjusted product structure and special services, and transformed stores into three types: selected supermarkets, community fresh food, and community convenience.

  19. Liqun Shares: Revenue of RMB 11.414 billion, up 8.15% year-on-year On April 15, Liqun Shares released its 2018 annual report. In 2018, the company achieved total operating revenue of RMB 11.414 billion, a year-on-year increase of 8.15%; net profit attributable to shareholders of the listed company was RMB 202 million, a year-on-year decrease of 48.78%. Liqun Shares stated: The year-on-year increase in operating revenue of 8.15% was mainly due to the year-on-year increase in operating revenue of the company's original regional stores and the new operating revenue after the acquisition of Lotte Shopping's East China stores (renamed Liqun Times) reopened. The year-on-year decrease in net profit of 48.78% was mainly due to the acquired Lotte stores starting to open gradually from August, and by the end of December all stores had opened, still in the market cultivation period. In terms of store expansion, 65 new stores were opened in 2018, including 46 large retail stores, including 44 Liqun Times, 6 "Liqun Fuji Farm" fresh food community stores, and 13 Liqun convenience stores. As of the end of the reporting period, the company owned a total of 87 large retail stores, 50 convenience stores, and 9 "Fuji Farm" fresh food community stores, with a total operating area of over 2 million square meters, of which self-owned property area exceeded 780,000 square meters, accounting for 35.34% of store operating area. Stores are located in Qingdao, Yantai, Weihai, Rizhao, Dongying, Zibo, Weifang, Zaozhuang and other cities in Shandong Province, as well as Jiangsu, Anhui, Shanghai and other East China regions. In 2019, Liqun Shares expects to achieve operating revenue of RMB 12.5 billion, total profit of RMB 460 million, and net profit of RMB 260 million.

Department Stores

  1. Rainbow (Tianhong): Revenue of RMB 19.138 billion, net profit increased 25.92% On the evening of February 27, Rainbow Department Store released its 2018 performance express report. In 2018, Rainbow Co., Ltd. achieved operating revenue of RMB 19.138 billion, a year-on-year increase of 3.25%; total profit of RMB 1.169 billion, a year-on-year increase of 25.51%; net profit attributable to shareholders of the listed company of RMB 904 million, a year-on-year increase of 25.92%. Excluding the impact of the real estate business, operating revenue increased 4.45% year-on-year, and total profit increased 30.58% year-on-year; in the fourth quarter of 2018, operating revenue decreased 0.64% year-on-year, and total profit increased 24% year-on-year. As of December 31, 2018, Rainbow Co., Ltd. had entered 25 cities in 8 provinces/municipalities including Guangdong, Jiangxi, Hunan, Fujian, Jiangsu, Zhejiang, Beijing, and Sichuan, operating a total of 320 stores of various formats.

  2. Xinhua Department Store: Revenue up 2.56%, plans to open 29 new stores On February 25, Xinhua Department Store released its 2018 annual report. It achieved operating revenue of RMB 7.626 billion, a year-on-year increase of 2.56%; net profit attributable to shareholders of the listed company was RMB 137 million, a year-on-year increase of 28.41%. In the supermarket format, 16 new stores of various types were opened, including hypermarkets such as Shuimulingzhou store and Xiaoba CCMall store. Operating revenue was RMB 3.915 billion, a year-on-year increase of 2.48%. During the reporting period, Xinhua Department Store closed a total of 19 stores, including 14 supermarkets and 5 appliance stores. As of the end of the reporting period, Xinhua Department Store had a total of 11 department stores, of which 10 were in Ningxia except for one in Qinghai, 146 supermarkets, and 101 appliance stores. In 2019, it is expected to open 20 new stores of various types including hypermarkets, life supermarkets, and convenience stores, and 9 new appliance stores.

  3. Shirble Department Store: Revenue of RMB 971 million, down 26.8% year-on-year On March 26, Shirble Department Store released its 2018 results. As of December 31, 2018, the company achieved revenue of RMB 971 million, a year-on-year decrease of 26.8%; operating profit of RMB 132 million, a year-on-year increase of 119.3%; net profit attributable to owners of the company of RMB 110 million, a year-on-year increase of 141%. Shirble Department Store stated that the main reason for the decrease in revenue was the strategic cooperation with Hema, which changed the business model from direct/franchise sales to subletting and renovating stores/upgrading the remaining department store parts of designated department stores. At present, Shirble Department Store has completed the renovation of 8 supermarkets. In the future, it will strengthen its strategic alliance with Hema for opening new supermarkets and department stores in South China. In addition, 4 stores have completed overall upgrades, and the remaining 5 are in the process of renovation, expected to be fully completed by the end of 2019. The expected expenditure for the store upgrade plan is no less than RMB 60 million.

  4. Nanjing Xinjiekou (Nanjing Xinbai): Revenue of RMB 14.541 billion, down 24.01% year-on-year On the evening of April 25, Nanjing Xinjiekou released its 2018 annual report. In 2018, the company achieved operating revenue of RMB 14.541 billion, a year-on-year decrease of 24.01%; net profit attributable to shareholders of the listed company was -RMB 886 million, a year-on-year decrease of 193.88%. The net loss of RMB 886 million was mainly due to the provision for impairment and bad debt losses of the British department store HOFUKI totaling RMB 1.876 billion. After that, HOFUKI will no longer be included in the company's consolidated financial statements.

  5. New World Department Store: Revenue of HK$1.809 billion New World Department Store's results for the second half of 2018 showed that for the six months ended December 31, revenue was HK$1.809 billion, a decrease of 3.5% compared with the same period last year; net profit decreased from HK$103 million in the same period last year to HK$89 million. During the reporting period, New World Department Store closed 3 stores. Currently, it operates a total of 32 department stores and two shopping centers. Among them, the three closed stores were Yancheng New World Department Store, Wuhan New World Department Store Hanyang Store, and Shenyang New World Department Store Zhonghua Road Store. In addition, the operating stores are mainly distributed in three operating regions: North, East China, and Central-West, covering 18 major locations nationwide, including Beijing, Tianjin, Yanjiao, etc.

Apparel & Footwear

  1. H&M: Online sales increased 22%, opened 33 new stores in mainland China H&M recently announced its 2018 fiscal year annual report. Total sales in fiscal year 2018 were SEK 210.4 billion (including VAT), an increase of 5% in SEK and 3% in local currencies. Among them, the group's online channel revenue increased 22%, accounting for 14.5% of total sales. As of fiscal year 2018, the H&M group had 4,968 stores in 71 markets worldwide and online stores in 47 of those markets. During the fiscal year, H&M opened 33 new stores in 28 cities in mainland China, of which 8 were the first H&M stores in newly developed cities. As of the end of fiscal year 2018, H&M had 465 stores in 153 cities in mainland China.

  2. Metersbonwe: Turned losses into profits In the 2018 performance report released by Metersbonwe on February 27, during the period, the group's operating revenue surged 18.42% year-on-year to RMB 7.664 billion, operating profit surged 188.46% to RMB 56.4 million, and net profit increased 114% year-on-year to RMB 42.9086 million. At the same time, due to the company's organizational optimization and efficiency improvement, the overall expense ratio decreased by 4.59 percentage points compared with 2017. It is worth noting that in 2017, Metersbonwe's operating revenue decreased 0.71% year-on-year to RMB 6.473 billion, with a net loss of RMB 306 million, turning from profit to loss compared with 2016, when it earned RMB 36.16 million. According to public information from Metersbonwe, the recovery in performance last year was mainly due to the group's implementation of upgrading strategies for brand, product, channel, and retail, and promoting the further improvement of the company's brand and product competitiveness.

  3. Lancy: Net profit increased 11.61% year-on-year On the evening of February 27, Lancy released its 2018 performance express report. The company achieved operating revenue of RMB 2.662 billion, an increase of 13.1% over the same period last year; operating profit of RMB 240 million, total profit of RMB 228 million, and net profit attributable to shareholders of the listed company of RMB 210 million, respectively increasing 7.1%, 3.3%, and 11.61% over the same period last year. With the expansion of the company's medical beauty business and the overall increase in operating performance, medical beauty business revenue reached RMB 480 million, an increase of 87.26% over the same period last year.

  4. Semir: Revenue of RMB 15.716 billion On February 27, Semir released its 2018 performance express report. In 2018, Semir achieved revenue of RMB 15.716 billion, an increase of 30.68% over the same period last year; net profit attributable to shareholders of the listed company was RMB 1.69 billion, an increase of 48.74% over the same period last year; basic earnings per share were RMB 0.63, compared with RMB 0.42 in the same period last year. Semir stated that as of the end of the reporting period, Semir's total assets were RMB 16.714 billion, an increase of 22.51% from the beginning of the reporting period; equity attributable to shareholders of the listed company was RMB 11.152 billion, an increase of 10.4% year-on-year, with a low debt-to-asset ratio. The announcement pointed out that there are two main reasons for the growth in operating revenue: first, the recovery of casual wear business, stable growth of children's business, and rapid development of online sales promoted the company's revenue growth; second, the company acquired French SofizaSAS company in this period and included its fourth-quarter 2018 operating revenue into consolidation, leading to revenue growth.

  5. Kappa China: Revenue up 17.3% to RMB 1.706 billion At noon on February 27, China Dongxiang released its 2018 results. The group's operating revenue reached RMB 1.706 billion, a year-on-year increase of 17.3%; net profit dropped 60.9% year-on-year to RMB 315 million, and gross margin fell 3.2 percentage points to 56%. The financial report stated that the decline in net profit was mainly due to adverse factors such as the trade war. In the second half of 2018, major global stock market indices continued to fall, and the prices of stocks held by the group, such as Alibaba, fell accordingly. In terms of the number of stores, the group continued to rectify and close inefficient stores, and also spared no effort to optimize existing stores, actively opening flagship stores, shopping mall stores, and outlet stores. Among them, the proportion of brand stores in shopping malls increased by 9% year-on-year. At the same time, the number of Kappa brand stores began to resume positive growth. As of the end of December 2018, the total number of brand stores was 1,496 (including children's clothing), a net increase of 9 compared with the end of last year.

  6. Anta: Maintained double-digit growth for 5 consecutive years On February 25, Anta Sports released its full-year results for fiscal year 2018. In 2018, Anta Sports achieved revenue of RMB 24.1 billion, an increase of 44.4% year-on-year, and profit attributable to shareholders was RMB 4.103 billion, an increase of 32.9% year-on-year. All operating indicators were healthy, creating the best performance in Anta Group's history, and it has maintained double-digit growth for 5 consecutive years. As of the end of the reporting period, there were a total of 10,057 Anta stores in China (including Anta Kids independent stores), 1,652 FILA stores in mainland China, Hong Kong, Macau, and Singapore (including FILA KIDS and FILA FASHION independent stores), 117 DESCENTE stores in China, 181 KOLON SPORT stores in China, 77 KINGKOW stores in mainland China, Hong Kong, Macau, and the United States, and 104 SPRANDI stores in China. By the end of 2019, it is expected that the total number of Anta stores in China (including Anta Kids independent stores) will reach 10,100 to 10,200. The total number of FILA stores in China, Hong Kong, Macau, and Singapore (including FILA KIDS and FILA FUSION independent stores) will reach 1,800 to 1,900. At the same time, DESCENTE will deeply penetrate first- and second-tier cities, focusing on opening stores in prime locations to enhance the brand's market position. It is expected that by the end of 2019, DESCENTE's store count in China is expected to reach 130 to 140, KINGKOW is expected to have 90 to 100 stores, SPRANDI is expected to have 140 to 150 stores, and KOLON SPORT is expected to have 170 to 180 stores.

Daily Chemical

  1. L'Oréal Group: E-commerce business accounts for over 35% In 2018 annual financial data, the group's total sales reached €26.9 billion, a year-on-year increase of 7.1%, the highest sales growth rate in more than a decade; net profit was €3.89 billion, a year-on-year increase of 8.8%. It is worth noting that in 2018, L'Oréal China's e-commerce business accounted for more than 35%, while in 2010 this proportion was less than 1%. L'Oréal Group Chairman and CEO Jean-Paul Agon stated at the board meeting that, led by the Chinese market, the Asia-Pacific region achieved sales of over €7 billion, surpassing the North American market.

  2. Unilever: Revenue of €50.9 billion, net profit surged 51.2% On January 31, Unilever released its full-year 2018 financial report. The company achieved sales of €50.982 billion (approximately RMB 398.016 billion), a year-on-year decrease of 5.1%. Excluding adverse currency effects and the impact of the spreads business, Unilever's sales increased 3.1% year-on-year, while net profit reached €9.8 billion, a year-on-year surge of 51.2%. Asia once again achieved strong growth, with market sales increasing 6% year-on-year and volume increasing 2.8% year-on-year. Among them, in the Chinese market, Unilever relied on innovation in high-end product lines and e-commerce growth, which to some extent offset the negative impact of the Blueair air purifier business on overall market performance.

  3. Amorepacific: Sales slightly increased in 2018 but operating profit fell 25% Amorepacific Group and its company respectively released 2018 results: during the period, group sales increased 0.8% year-on-year to KRW 6.08 trillion (approximately RMB 36.643 billion), operating profit decreased 24.9% year-on-year to KRW 549.5 billion (approximately RMB 3.313 billion), and net profit decreased 23.1% year-on-year to KRW 376.3 billion (approximately RMB 2.269 billion). According to predictions from insiders, in 2019, Amorepacific will add 40 Sulwhasoo counters and 67 Innisfree single-brand stores in China, with the latter mainly entering third- and fourth-tier cities. Last year, the group opened 24 Sulwhasoo counters and 57 Innisfree single-brand stores in China.

E-commerce

  1. JD.com: GMV nearly RMB 1.7 trillion, profitable for 12 consecutive quarters On February 28, JD.com Group released its full-year 2018 results. In 2018, full-year GMV was nearly RMB 1.7 trillion; full-year net revenue was RMB 462 billion (approximately US$67.2 billion), and non-GAAP net profit from continuing operations attributable to ordinary shareholders was RMB 3.5 billion (approximately US$500 million); achieving profitability for 12 consecutive quarters and single-quarter revenue exceeding RMB 100 billion for 5 consecutive quarters. In addition, JD.com's full-year net service revenue in 2018 was RMB 45.9 billion (approximately US$6.7 billion), an increase of 50.5% year-on-year, accounting for about 10% of total net revenue.

  2. Pinduoduo: Revenue of RMB 13.12 billion, up 654% year-on-year Last night (April 25), Pinduoduo released its 2018 annual report. The annual report showed that Pinduoduo's total revenue in 2018 was RMB 13.12 billion (approximately US$1.908 billion), and total net loss was RMB 10.217 billion (approximately US$1.486 billion). Total revenue was RMB 13.12 billion (approximately US$1.908 billion), an increase of 653.59% compared with RMB 1.741 billion in 2017. Operating loss was RMB 10.7997 billion (approximately US$1.5708 billion), compared with an operating loss of RMB 595.7 million in 2017. Net loss attributable to ordinary shareholders of Pinduoduo was RMB 10.2976 billion (approximately US$1.4977 billion), compared with a net loss of RMB 498.7 million in 2017. As of December 31, 2018, Pinduoduo had a total of 3,683 employees, an increase of 2,524 from 1,159 in 2017. Among them, the number of engineers exceeded 1,800, accounting for half of the company.

  3. NetEase E-commerce: Net revenue increased 64.8%, gross margin declined significantly On February 21, NetEase released its unaudited financial results for fiscal year 2018. In 2018, net revenue was RMB 67.156 billion (US$9.768 billion), and net profit was RMB 6.152 billion (US$895 million). In e-commerce business, in 2018, NetEase's e-commerce net revenue was RMB 19.235 billion (US$2.798 billion), compared with RMB 11.67 billion in 2017, an increase of 65% year-on-year. The financial report stated that the growth in gross profit of the e-commerce business in 2018 was mainly due to the rapid development of NetEase Kaola and NetEase Yanxuan.

Others

  1. Suning: Revenue of RMB 245.311 billion, up 30.53% year-on-year On the evening of February 27, Suning.com released its 2018 annual performance express report. Operating revenue was RMB 245.311 billion, a year-on-year increase of 30.53%. Against the backdrop of slowing overall retail growth, it achieved double-digit growth for two consecutive years; the scale of commodity sales was RMB 337.135 billion, a year-on-year increase of 38.54%. In 2018, Suning.com achieved net profit attributable to the parent company of RMB 13.32 billion. In terms of offline scenario construction, Suning entered the "10,000-store era" in 2018. As of the end of 2018, Suning.com had a total of 11,064 self-operated and franchised stores of various types. In addition to the rapid growth in store scale, the quality of Suning's stores also continued to improve. In terms of smart retail, Suning has formed a product group covering Suning.com Plaza, Suning.com direct-operated stores, retail cloud franchise stores, Suning Xiaodian, and stores focusing on vertical categories such as home appliances, 3C, home life, mother and baby, and supermarkets. As of the end of last year, Suning had a total of 8,881 self-operated stores of various types, with a self-operated store area of 6.7057 million square meters, and store operation quality steadily improved; Suning.com retail cloud franchise stores numbered 2,071, and Dia Tian Tian convenience store franchise stores numbered 112. In terms of logistics, as of the end of last year, Suning Logistics and Tiantian Express had a total warehousing and related supporting area of 9.5 million square meters, 27,444 express outlets, and a logistics network covering 351 prefecture-level cities and 2,858 districts and counties nationwide. In 2019, the retail industry will enter a new stage of integration. We will continue to improve the shopping experience, build comprehensive and rich retail scenarios, improve operational efficiency, and create value for consumers.

  2. Yili: Revenue of RMB 79.55 billion, net profit over RMB 6.4 billion On the evening of February 27, Yili announced its full-year 2018 results, achieving total revenue of RMB 79.55 billion, with both revenue and net profit increasing. The announcement showed that Yili achieved total operating revenue of RMB 79.553 billion, an increase of 16.89% over the same period last year, approaching the RMB 80 billion mark; net profit was RMB 6.452 billion, an increase of 7.48% over the same period last year, with net profit levels significantly improving compared with the first three quarters. Data showed that in 2018, sales revenue of Yili's key products such as "Jindian," "Anmuxi," "Changyi 100%," "Joy Day," "Jinlingguan," and "Zhenxi" increased 34.3% year-on-year; during the same period, new product sales accounted for 14.8% of revenue, an increase of 5.6 percentage points over the same period last year. On the other hand, it came from channel sinking. In 2018, Yili directly controlled nearly 608,000 village-level outlets, an increase of 14.7% over the previous year. According to the plan announced by Yili, in 2019, the company plans to achieve total operating revenue of RMB 90 billion and total profit of RMB 7.6 billion.

  3. SF Express: Revenue increased 27.6%, net profit declined 4.57% SF Holding recently released its 2018 performance report, showing that the group's total operating revenue in 2018 was RMB 90.943 billion, an increase of 27.6% over the same period last year; net profit attributable to shareholders of the listed company was RMB 4.556 billion, a decline of 4.57% over the same period last year. Regarding the profit decline, SF gave the reasons: in addition to the impact of rising costs, the company also proactively responded to market demand and made pioneering investments in new businesses to expand diversified logistics services. It is reported that this is also the first annual net profit decline for SF Holding since its backdoor listing.

  4. Haoxiangni: Revenue increased 21.59%, net profit increased 20.09% On February 25, Haoxiangni's 2018 performance express report showed that in 2018, the company achieved total operating revenue of RMB 4.949 billion, a year-on-year increase of 21.59%; operating profit of RMB 148 million, a year-on-year increase of 17.08%; total profit of RMB 151 million, a year-on-year increase of 21.86%; net profit attributable to shareholders of the listed company of RMB 128 million, a year-on-year increase of 20.09%.

  5. Yixintang: Revenue exceeded RMB 9 billion, will open 1,200 more stores this year On the evening of February 25, domestic chain pharmacy giant Yixintang disclosed its 2018 annual report. Full-year operating revenue exceeded RMB 9 billion, and non-GAAP net profit exceeded RMB 500 million. In the past three years, the company has maintained an average annual revenue growth of 20%, continuing to expand nationwide on a large scale. It is not only active in Southwest and South China, but also has a presence in North China and Central Plains. As of January 2019, Yixintang had 5,872 directly operated pharmacies in more than 10 provinces and cities across the country. The company again announced plans to open 1,200 new stores this year.

  6. Taoli Bread: Revenue and net profit increased in 2018 On January 27, Taoli Bread released a performance forecast stating that due to factors such as improved delivery service quality and increased sales terminals, in 2018, Taoli Bread achieved revenue of RMB 4.833 billion, an increase of 18.47% year-on-year; total profit of RMB 825 million, an increase of 25.33% year-on-year; net profit attributable to shareholders of the listed company of RMB 643 million, an increase of 25.19%. According to data, Taoli Bread has established production bases in 17 regions nationwide and has established more than 200,000 retail terminals. In 2018, Taoli Bread also increased efforts to expand new markets in East China, South China, and Northwest China, while continuing to accelerate the refinement and downward movement of sales networks in mature markets such as Northeast and North China.

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