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一站式滿足生活所需
Enriching Life
Annual ResultsPresentation
2018
20 March 2019
Highlights in 2018
2
178.0M33.9%
RMB19.0B10.2%
GSP
RMB3.8B21.8%
(1)
Improved quality of operations
and know-how. Enriched
merchandise and service offerings.
SSSG remained flattish while GSP
and revenue increased by 10.2%
and 32.7%, respectively.
EBIT and EBITDA increased by
41.0% and 33.9%, reaching
RMB2.3B and RMB2.8B,
respectively.
Gross Profit
(1) According to year-on-year analysis of data collected from the Group’s chain stores with foot traffic statistics system installed.
Foot Traffic
Business Strategy
3
New Members
• New Media Cooperation
• Membership Data Mining
• Social Platform
• Cross-flow of GE & 7-Eleven
• Newly Opened Lifestyle Centers
• 7-Eleven Convenience Stores
• Official Accounts, Applet, G-APP
• New Channels from New Content Investment
• New Retail Sectors
• Healthcare & Medical
• International Education
• Entertainments
Intelligent Consumption & Service Platform Operator 3.0
New ChannelsBusiness Extension
New ContentsBusiness Extension
New MembersBusiness Extension
Department Store Operator 1.0
Lifestyle Centers Operator 2.0Current Status3.2M VIP Members
Intelligent Marketing
Consumption and
Service UpgradeHuman Resources Reserve
4
Continual Optimisation of
Current Business
5
773
918
250
500
750
1,000
2017 2018
7,220 7,314
2,500
5,000
7,500
10,000
2017 2018
1,3371,412
800
1,200
1,600
2,000
2017 2018
7784
50
100
2017 2018
5
Lifestyle Center Foot Traffic
Lifestyle Center GSP Lifestyle Center EBIT
People ‘M
RMB ‘M
Lifestyle Center Gross Profit RMB ‘M
RMB ‘M
9% 6%
1%19%
(1) On a same store basis, excluding Xianlin Store, Suzhou Store, Golden Eagle World and Yangzhou New City Center.
Organic Growth（1）
6
Merchandise Upgrade, Identify Benchmarking Brands, Improve Store Productivity
Yancheng Lifestyle Center
• 50 benchmark brands were selected among the total 420 brands in store, achieving GSP of RMB333.0M, up 25.5% yoy.
• 24 brands with individual annual GSP exceeding RMB10.0M.
• Synergy created among the 3 stores in the same city, with prominent advantages of merchandise and marketing resources, further enhanced its leading position in the local market.
Yangzhou Wenchang Store
• Cultivated 50 benchmarking brands, generating annual GSP of RMB345.0M, up 22.3% yoy.
• 21 brands with individual annual GSP exceeding RMB10.0M.
• Leveraging on the advantage of “3 stores in 1 city”, obtained further merchandise support and more marketing resources from major suppliers to solidify its leading position in the local market.
Number of Brands
RMB30.0M+ 2
RMB20.0M-30.0M 6
RMB10.0M-20.0M 13
Number of Brands
RMB30.0M+ 4
RMB20.0M-30.0M 4
RMB10.0M-20.0M 16
Sales Representatives Sales Representatives
7
Accelerate the Introduction of Fashionable Brands Solidify Regional Leading Position
Nanjing Jiangning Lifestyle Center
• Introduced 111 new brands into the store, among which 51 are lifestyle brands , 55 are retail brands and the remaining 5 are supermarket brands.
Xuzhou Pengcheng Store
• Introduced high-end skincare brands such as La Prairie, Clé de Peau Beauté and IPSA, successfully created the most powerful cosmetic brands portfolio in Huaihai Economic Zone.
• Introduced mature high-end women’s footwear collection stores such as STELLA LUNA, WHAT FOR, AS and PIKOLINOS, etc. to solidify the store's high-end positioning.
• Continued to be trendy and young, introduced high-end trendy and fashionable brands such as APM, EVISU, FILA Fashion, NIKE and K.L, etc
Foot Traffic
GSP RMB1,773.1M
8.1M
RMB310.1MGross Profit
RMB560.7M
14.0M
RMB123.6M
Foot Traffic
GSP
Gross Profit
yoy10.9%
yoy2.3%
yoy2.4%
yoy49.7%
yoy16.1%
yoy28.4%
8
Follow the Trend of Consumption Upgrade, ContinuousUpgrade and Expansion of Commercial Brand Resources
Focusing on the demand for high-quality lifestyle among middle-class families and young customers, the Group has accumulated and continuously introduced more than 10,000 brands into its floor space, including international renowned brands, domestic distinctive brands and emerging lifestyle brands, creating a strong and extensive base of brand resources.
9
Tap on Innovative and Trendy Amenities Create Fun and Enjoyable Consumer Experience
China Color Immersive Contemporary Art ExhibitionFirst exhibition in Shanghai, delicatedly created by 7 contemporary artists with 9 themed rooms featuring different colors, integrating Chinese and Western cultures and creating an amazing and interesting cultural atmosphere, drove approximately 30K+ visits in 3 months.
Shanghai Store
ArtworkGallery entrance
10
Tap on Innovative and Trendy Amenities Create Fun and Enjoyable Consumer Experience (Cont’d)
CuratorsArtwork
China Color Immersive Contemporary Art ExhibitionShanghai Store
Video
Meet Street• Renovated and upgraded its commercial area into “Meet Stree”, reopened on 18 May 2018, catered a hub of talk-of-the-town stores,
increased the store’s operating area from 225 sq.m. to 825 sq.m. and created annual GSP of RMB10.0M, up 273.4% yoy.• Featuring a collection of fashionable, artistic and cultural stores, Meet Street had become a popular gathering place catering for street
fashionistas and musicians. Meet Street recorded 3.45M visits in 2018 with an average of 15K daily visits, up 72.5% yoy.
Nanjing Jiangning Lifestyle Center
11
Tap on Innovative and Trendy Amenities Create Fun and Enjoyable Consumer Experience (Cont’d)
Video
12
Music ParkA must-go place highly recommended by KOLs, attracted over 200,000 fans.
Nanjing Xinjiekou StoreSun Li New Book Release and Signing 《Meet you, Accompany you 遇见你，陪伴你》New Book Release and Signing Event co-organised with G·TAKAYA to draw society attention to stray animals.
Music Stairs Sun Li and her fans
Creative Marketing Events
Video Video
13
15th Anniversary Carnival of LightGSP on 18 December 2018 reached RMB43.1M, up 18.5% yoy; customer visits of over 60,000 which is the highest record in 6 years, up 40.7% yoy.
Xuzhou Store
Creative Marketing Events (Cont’d)
Video
14
VIP DAY Fluorescent Night Carnival A parade throughout the city, lightened a hot summer night.
Yangzhou Wenchang Store17th Anniversary Celebration (3 Days) GSP achieved RMB39.1M, breaking a new record.
Fluorescent Night Carnival
Fluorescent Night Carnival 视频Video
Creative Marketing Events (Cont’d)
Video
15
Meet you on 520 3rd Store Anniversary (3 Days) GSP achieved RMB31.6M, up 21.1% yoy; 185,000 visits, up 27.2% yoy.
Nanjing Jiangning Lifestyle Center920 Meet Music Music Festival (3 Days)GSP achieved RMB18.9M, up 53.5% yoy; 198,000 visits, up 70.4% yoy.
Meet Music Music Festival3rd Store Anniversary free gift
Creative Marketing Events (Cont’d)
Video Video
16
“O Coffee K!” Festival 20 independent cafes gathered at Nanjing Xinjiekou Golden Eagle Center, assembled a large coffee flea market with hand-brew coffee competition to enrich customers' experience and interaction.
“andLife” Series “Fashion Boom” Festival• Tribute to the Master: Live Recitation to celebrate Zhu Zhiqing’s
120th Anniversary of birthday.• More than 20 "Craftsmen" gathered at Nanjing Golden Eagle World,
displaying over hundred pieces of handmade cheongsam, handmade battle armor, vintage jewelry and retro cameras.
“Fashion Boom” Festival“O Coffee K!” Festival
Creative Marketing Events (Cont’d)
Video Video
17
G·Mart's first attempt to launch a co-branded Spring Festival Gift Bag with Nanjing Museum. The gift bag’s unique cultural feature was well received by consumers in Nanjing, with 2,000 pieces sold during the Spring Festival.
Spring Festival Gift Bag Co-branded with Nanjing Museum
还有复古节还有咖啡节
Creative Marketing Events (Cont’d)
18
Smart Golden Eagle
Digitalised MembershipData & VIP Member Analysis New Services
Leverage on Big Data platform
3.2M+VIP members
2.6M+WeChat and Weibo followers
200,000+Daily online members
Member Consumption
Insight
Marketing Rule
Formation+
Face-scan payment
One-click return Home delivery
Electronic invoice
......
Video
19
Smart Golden Eagle (Cont’d)
New Marketing Methods
营销新玩法
G·MART,7-Eleven Self-Serve Shopping
OLAY Brand Day,Koi Lucky Draw, Bargain
Deal, Group Purchase
Create Interactive Games among Golden Eagle store chain
WeChat mini programme
Video
20
Mid-level
Mid-to-SeniorLevel
PotentialEntry-Level
Emphasis on Establishment of Talent Echelon System, Strengthen Core Competitiveness of Corporate Development
StoreManager
Passionate entry-level managers will be selected for 1 year cross-store/department/business diversified training, 24 outstanding candidates will graduate and play an important role in the Group’s new business development, chain store operation and marketing management.
16 outstanding mid-level managers with good potentials will be selected for 6-month training and job rotations, they will become the backbone of the Group’s management force who will take up roles such as project manager and retail chain store supervisor.
Through a series of intensive on-the-job trainings such as “Executive Echelon” and “Store Manager Trainee”, dozens of excellent members among the mid-to-senior management will grow and develop into store managers, reserve store managers or take up other senior managerial roles.
Rapid Growth of Extension Business
21
22
• As a leading indoor amusement park developer from the Netherlands, iP2 is dedicated to building innovative theme parks for children featuring world-famous IPs and media-based technology.
• Authorised by top IPs such as National Geographic Ultimate Explorer, Warner Bros., DreamWorks and Mattel. Boasting an AR/VR laboratory in LA for systematic content development, renewal and upgradation.
• Successfully launched 3 indoor theme parks: Shenyang National Geographic Ultimate Exploration Center, Mexico National Geographic Ultimate Exploration Center and Philippine DreamPlay with 10 indoor theme parks under preparation worldwide.
Layout in Experience and Entertainment Park
Mattel
Video Video
23
• Featuring women and children specialists, positioning to provide high-quality medical services, covering baby birth, healthcare, treatment, rehabilitation therapy and other medical services.
• First project – a high-quality women and children's outpatient center at Nanjing Xinjiekou, including an international medical and aestheties institution and the largest postpartum nursing care center in Eastern China, will be soft-launched on 28 March 2019.
Layout in G·Health
24
Golden Eagle WorldFuture has Arrived
25
Personified Design that Meets the Middle Class’ Demand for High-quality Lifestyle
Atrium: Time Plaza
Atrium: Palace of the Clouds
Atrium: The Gate of Light
26
Personified Design that Meets the Middle Class’ Demand for High-quality Lifestyle (Cont'd)
Parking zone seamlessly connected to the retail spaces at each floor
7/F Star Theater
Stylish Drinks Boutique Bookstore
Cosmetics Talk-of-the-town BrandsInternational Luxury
Household and Furniture Smart Electrical AppliancesFashionable Sportswear
Through a Rich Combination of Business Amenities, Golden Eagle World is Building an Intelligent Lifestyle Service Platform
Premium Supermarket
27
Medical Health and Medical Care
Handicraft HubAutomobile
Cinema Fitness
Distinctive Dining
Education and Training
Pets
Children and Parents
28
Through a Rich Combination of Business Amenities, Golden Eagle World is Building an Intelligent Lifestyle Service Platform (Cont'd)
29
Continuous Introduction of Various Innovative Business to Further Enhance Attractiveness and Offerings
G-Zoo ParkA large-scale interactive science park, featuring indoor Zoo and boutique Ocean World, to provide educational science and cultural experiences.
National Geographic's Classic Image Exhibit The images were extracted from National Geographic magazine cover pages and divided into eight themed pavilions, to convey over 1,500 touching stories behind.
Sober AnimalsUsing "empathy, dancing and co-existence" of people and animals as a lead, various sensory features in traditional zoos had been refined and exaggerated with more than 20 themed scenes.
Pipistrel’s ultralight aircraftThe aircraft produced by Slovenian ultralight plane maker Pipistrel will be on display and sale, to create a unique flying atmosphere and enhance customer experience.
on
30
1st Anniversary CelebrationSingle-day sales of more than RMB34.0M on 18 November 2018, up 11.7% yoy, while single-day foot traffic reaching more than 100,000.
Fun and Creative Marketing Events in Golden Eagle World
Balloon Rain
iPhoneXS Lucky Draw Hip Hop Dance Flash
Video
31
Creative MarketingBalloon Rain with overwhelming responses from customers; Mermaid Music Festival drove over 23,000 foot traffic; Dating under Starlight – speed dating event, attracted many foreign friends to participate.
Speed Dating Event
Meet with Huang Bo
Miss Strawberry Day
Fans Gatherings with CelebritiesFans gatherings with Lin Zhilin, Xu Zheng, Huang Bo, Zhang Shaohan, Lai Shengchuan, Zhong Man and other famous celebrities and “Idol Producer” recruitment activities, etc.
Fun and Creative Marketing Events in Golden Eagle World (Cont'd)
Video
32
Philharmonic Charity Concert
Transparent Museum
International Children's Chess Tournament
Creative MarketingHosting events such as Nanjing College of Arts which made their debut into commercial retail store — 520 Graduation Exhibition, “DouYin” Dance Challenge, World of Warcraft National Grand Final, International Children's Chess Tournament, etc.
Public Welfare CulturePhilharmonic Charity Concert, “Love in the world” charity party, etc.
Internet-Famous IP ExhibitionsMolly’s World Exhibition, Transparent Museum, Incredible Lab, Meet the Impressionist- Light and Shadow Art Exhibition, etc.
Fun and Creative Marketing Events in Golden Eagle World (Cont'd)
Video
33
The entire Golden Eagle World commercial complex is expected to soft launch on 30 September 2019, followed by the soft launches of G.Hotel, WeWork Coworking and Office Space, health center and many other functions and amenities, which will bring forth substantial amount of high-quality long-term foot traffic to the Group’s Golden Eagle World.
Countdown to the Overall Opening ofGolden Eagle World
Sky Corridor
Commercial RetailSpace 5,000 car parking with direct access to shopping center
Tower C:300 meters high, 60floors of healthcare center
Tower B:328 meters high, 76floors of office
Tower A:368 meters high, 88 floors of offices andhotel
Photo taken on：7 March, 2019 Health Center
G·HOTEL
WeWork
3434
Golden Eagle WorldThe Future Store
Store Expansion
Plan
35
Upcoming new store GFA (sq.m.) Owned / Leased 2019 2022 and onwards
1 Xuzhou Additional, Jiangsu @ Owned 51,040
2 Changzhou, Kaiyue @ Leased 120,000
3 Jiangdu Phase II , Yangzhou @ Owned 108,000
4 Changchun, Jilin @ Owned 200,000
Total 479,040 51,040 428,000
% GFA Increase2,489,807
(as at 31 December 2018)2.1% 16.8%
% of Owned Properties (GFA) 63.6% 64.8%
% of Owned Properties and Properties
Leased from Related Parties (GFA)94.7% 95.5%
Estimated Max Capex. (RMB)
(including capex for PUD for sale and excluding Changchun capex)
1.3 billion#Around 0.7 billion each year for 2020
to 2022
*
Upcoming New Stores
36
@ In the format of comprehensive lifestyle center. Excludes Jiahong and Lianyungang Supermarkets and Changzhou and Yancheng Aquariums, with total GFA of 24,300 sq.m..# Including the acquisition consideration and settlement of outstanding shareholder's loans.*
YunnanProvinceKunming
ShaanxiProvince
Xi’an JiangsuProvince
AnhuiProvince
Shanghai1
1
2
13 12
After the roll out, Golden Eagle will have 34 stores throughout China, with GFA of approximately 3.0M square meters.
1
2
1
1
11
12
2
11
24
Xuzhou
Suqian Yancheng
HuaibeiHuai’an Taizhou
Yangzhou
DanyangNanjing
LiyangKunshan
Shanghai
1
2 1
Nantong
1
1
Suzhou
1
Ma’anshan1
1
1
1
1
11Wuhu
Changzhou
Total 34
No. of Stores
Department Store 16
Lifestyle Center 18
sq.m.
2.4M
0.6M
3.0M
JilinProvinceChangchun
1
37
Our Future Network
Financial Highlights
38
Financial Highlights
39
Gross Sales Proceeds (GSP) Concessionaire Sales Direct Sales Rental Income Sales of Properties OthersGross ProfitOther Operating IncomeOperating ExpensesEBITEBITDAProfit Attributable to ShareholdersEPS – Basic (RMB)
2017 (+/-)Year ended 31 December (RMB ‘M)
2018
17,232.314,023.22,236.7
531.1331.8109.5
3,107.3365.3
1,823.31,649.32,056.61,278.1
0.763
+10.2%+0.7%
+13.3%+55.5%
+322.8%-2.9%
+21.8%+33.1%+6.6%
+41.0%+33.9%-29.6%-29.5%
18,994.814,125.22,534.8
825.91,402.5
106.43,784.0
486.01,944.52,325.62,754.5
899.50.538
Year ended 31 December (RMB ‘M)
2018 2017 (+/- )
Total EBITDA
Retail EBITDA
2,754.5
2,319.6
2,056.6
1,970.0
+697.9
+349.6
- New Stores Opened in 2017
Others
+212.6
434.9 +348.3
+137.0
- Existing Stores Opened before 2017
(+/- )
+33.9%
+17.7%
+10.9%
+503.7%
+402.2%86.6
+164.0+48.6
+286.3-149.3
40
* Increase in Gross Profit & Other Income* Disciplined Cost Control
* Increase in Gross Profit & Other Income* Effective Cost Control
EBITDA Analysis
Year ended 31 December (RMB ‘M)
2018 2017 (+/- )
Total Operating Expenses 1,515.6
1,453.7
1,415.9
1,353.0 +99.7
+100.7
(+/- )
+7.0%
+7.4%
-1.6%62.9
- Existing Stores Opened before 2017
Others 61.9 -1.0
Retail Operating Expenses
1,223.6 1,272.2 -48.6 -3.8%
EBITDA Analysis (Cont’d)
41
230.1 80.8 +149.3 +184.8%- New Stores Opened in 2017 & 2018
(+/- )% points
Year ended 31 December(%)
2018
Gross Margin 21.0% +1.922.9%
2017
Combined Margin from Concessionaire Sales and Merchandise Sales
-0.1
Sale of Properties 31.4% +1.0
17.3%
32.4%
17.4%
Margin Analysis
42
Note 1: Cash and near cash represents bank balances and cash and various short-term bank related deposits, including wealth management products issued by banks/investments in interest bearing instruments, structured bank deposits and restricted cash
Note 2: Gearing ratio = total borrowings / total assetsNote 3: Adjusted for trade payables amounted to RMB1,340.2M paid in early January 2018
As at 31 Dec 2018
As at 31 Dec 2017RMB ‘M
Total Assets
Total Liabilities
Net Assets
Cash and Near Cash (note 1)
Total Borrowings
3-Year Syndicated Loan
3-Year PRC Medium-Term Notes
10-Year Senior Notes
Net Debts
Gearing Ratio (note 2)
(note 3)
(note 3)
Financial Position
43
23,836.2
17,552.9
6,283.3
6,463.5
8,346.2
4,269.8
1,497.2
2,579.2
(1,882.7)
25,031.8
18,851.0
6,180.8
5,604.7
8,745.0
4,799.8
1,493.9
2,451.3
35.0% 34.9%(3,140.3)
44
Net cash generated from operating activities
2017
Net increase in cash and cash equivalents
2018
(263.3)
(239.8)
1,795.9
2,508.1
(962.1)
Net cash used in financing activities (1,892.6) (903.4)
876.3 3,400.6
3,032.2
Net cash (used in) generated from investing activities
- Capex for the year
Year ended 31 December(RMB ‘M)
Cash Flow Statement
- Decrease in net bank and other borrowings (794.1) (276.8)
2,032.62,753.4
- Repurchase of own shares (264.2)
- Change in short-term bank related deposits
- Dividends paid to owners of the Company (728.6)(13.1)
- Operating cash flows before working capital movements(561.5) 891.0
3.8 3,427.9
(46.9)
455.7 (810.6)208.8 92.2
Note: Adjusted for trade payables amounted to RMB1,340.2M paid in early January 2018.
(note)
(note) (note)
(note)
- (Increase) decrease in inventories- Increase in prepayments from customers (prepaid cards)
- (Decrease) increase in deposits and prepayments from pre-sale of properties
Growth and Profitability
45
EBITDA Sales Per Ticket (Same-Store Comparison)
GSP & Combined Margin Revenue
32.7%
33.9% 6.7%
Stable Expense Ratio
46
Rental Expense
Staff Expense
Other Operating Expenses
Depreciation and Amortisation
454 394 407 429
250 310 712 811
Business Review
47
• Yangzhou Jinghua Store
• Shanghai Store
• Nanjing Hanzhong Store
• Nanjing Xianlin Store
• Liyang Store• Xuzhou
People Square Store
• Kunming Nanya Store (suspended in Aug 2015)
• Yancheng Outlet Store
• Changzhou Wujin Store (suspended in Dec 2015)
* Nanjing Xinjiekou Store, together with the additional area of 81,098 sq.m., was upgraded to a lifestyle center in Apr 2014. # Nanjing Xianlin Store, together with the additional area of 168,900 sq.m., was upgraded to a lifestyle center in Nov 2017.
• Kunming Lifestyle Centre
• Nanjing Zhujiang Store
• Nanjing * Xinjiekou Store
• Nantong Store
• Yangzhou Store
1996 2000 2001 2002 2003 2004
• SuzhouStore (closed in Feb 2013)
• Xuzhou Store
2005 2006
• Xi’an Gaoxin Store
• Taizhou Store
2007 2008
• Huai’an Store
• Yancheng Lifestyle Center
1997-
1999
• Hefei Dadongmen Store (suspended in May 2015)
• Hefei Baihuajing Store (suspended in May 2015)
• Anhui Huaibei Store
2013 2011 20092010201220142015
• Hefei Suzhou Road Store (suspended in Dec 2015)
• Changzhou Jiahong Store (partially suspended in May 2017)
• Xi’an Xiaozhai Store (suspended in Oct 2014)
• Suqian Store
• Nanjing Xinjiekou Lifestyle Center
• Yancheng Julonghu Lifestyle Center
• Nantong Lifestyle Center
*• Danyang Lifestyle Center
• Kunshan Lifestyle Center
• Jiangning Lifestyle Center
• Ma’anshan Lifestyle Center• Nantong
Renmin Road Store
• Wuhu Store• Wuhu New City
Store
• Xi’an GuomaoStore (closed in Oct 2010)
The Group’s total GFA as of 31 December 2018 amounted to 2,489,807 sq.m..
Of the 32 stores in operation, 15 stores are lifestyle centers.
201320162017
• Xi’an Qujiang Lifestyle Center
• Suzhou Lifestyle Center
• Nanjing Xianlin Hubin Tiandi Zone B
• Nanjing Golden Eagle World
• Yangzhou New CIty Center
*
#
#
Growing Presence in the PRC
48
Self-owned properties in prime locations account for 62.9% of total GFA.
Lifestyle centers represent 74.1% of total GFA.Owned-to-leased GFA ratio
31.7%*Leased from
related parties
62.9%*Owned
3.5%*Leased from independent
3rd parties
Store(in operation) Owned / Leased GFA (sq. m.)
17 Liyang Owned / Leased 53,469 / 18,35518 Xuzhou People’s Square Owned 37,45719 Yancheng Outlet Leased 18,37720 Yancheng Julonghu # Leased 110,848
21 Nantong Lifestyle # Owned 94,700
22 Danyang # Leased 52,97623 Kunshan # Owned 118,50024 Nanjing Jiangning # Leased 144,710
25 Ma’anshan # Leased 87,56826 Nantong Renmin Road Owned 30,19127 Wuhu Shopping Owned 30,62928 Wuhu New City # Owned 98,906
29 Xi’an Qujiang # Managed 48,502
30 Suzhou # Owned 176,764
31 Golden Eagle World # Leased 227,396
32 Yangzhou New City # Owned 153,560
Total 2,489,807 @
Store(in operation)
Owned / Leased GFA (sq. m.)
1 Nanjing Xinjiekou # Owned / Leased 83,896 / 29,2422 Nantong Owned 9,2973 Yangzhou Owned / Leased 37,562 / 3,450
4 Xuzhou Owned 59,934
5 Xi’an Gaoxin Owned 27,2876 Taizhou Owned 58,3747 Kunming # Owned 116,8178 Nanjing Zhujiang Leased 33,5789 Huai’an Owned 55,768
10 Yancheng # Owned 88,16511 Yangzhou Jinghua Leased 29,59812 Shanghai Leased 29,65113 Nanjing Hanzhong Leased 12,462
14 Nanjing Xianlin # Owned / Leased 168,900 / 42,79515 Anhui Huaibei Leased 34,714
16 Suqian Owned 65,410
# In the format of lifestyle center* As a percentage of total GFA (sq. m.) as at 31 December 2018
1.9%*Managed
@ Excludes Jiahong and Lianyungang Supermarkets and Changzhou and Yancheng Aquariums, with total GFA of 24,300 sq.m..
Self-Owned Properties
49
Category 2018 GSP Contribution
2017 GSP Contribution
(+/- )% points Top Performing Brands
Apparel & Accessories 47.3% 48.9% -1.6
Gold, Jewelry and Timepieces 16.5% 17.8% -1.3
Cosmetics 11.8% 10.5% +1.3
Outdoor, Sports Clothing and Accessories 8.6% 7.5% +1.1
Tobacco and Wines, Household and Handicrafts 3.8% 4.1% -0.3
Electronics and Appliances 3.0% 3.2% -0.2
Children’s Wear and Toys 3.9% 3.8% +0.1
Supermarket and Others 5.1% 4.2% +0.9
Merchandise Mix (Concessionaire and Direct Sales) in 2018
Offering a full range of mid-to-high-end merchandise to meet the one-stop shopping needs of customers.
Merchandise Offering
50
Grasp the changes in trends to attract middle-class families and customers pursuing high quality of lifestyle.
2017 RMB662.3M
2018 RMB831.8M
yoy25.6% GSP
• As at 31 December 2018, 29 G·Life series stores were launched, including:Ø 16 G·MART premium supermarkets; Ø 4 G·TAKAYA boutique bookstores; Ø 7 G·BEAUTY beauty variety stores; andØ 2 G.BABY baby accessories stores.
• Will explore G·Life standalone stores in the near future.
51
Consumption and Service Upgrade
Grasp the changes in trends to attract middle-class families and young customers pursuing high quality of lifestyle.
Consumption and Service Upgrade (Cont’d)
52
Fashion Retailing Food & Beverage Lifestyle Amenities
伯马术
Newly Introduced Brands
• We have been granted the franchise right of 7-Eleven in Jiangsu Province by Seven-Eleven (China) for a term of 20 years.
• Sharing 7-Eleven supply chain, IT and membership system, to provide more efficient convenient services to our customers.
• On 30 May 2018, 7-Eleven (Zhujiang Road Store) - the first 7-Eleven store in Jiangsu was opened, with first day sales of RMB350K, topping the record among all new 7-Eleven stores around the globe. Up to now, daily average sales exceed RMB40K.
• As at 31 December 2018, 8 7-Eleven convenience stores have been opened and generated GSP RMB20M in 2018.
53
便利服务
特色商品
7-Eleven
Broad VIP Customer Base
54
Continuously expanding VIP customer base, strengthening loyalty and providing the foundation for long-term growth. VIP members % of Total GSP
VIP consumption
3.2M VIP members with 2.3M members connected with the “Goodee Mobile App”.VIP consumption accounted for 55.3% of total GSP in 2018.2 types:
-G. Club: Platinum and Gold levels with varying discounts, enrollment and renewal based on consumption. -G. Point: pre-VIP, free to enroll, with point accrual only.
Point awards, exclusive benefits.Introduced co-branded credit cards with different banks.
* As at 31 December 2018.
G.Point members
G.Club members
Chain Store Years intooperation
Retail OFA(sq.m.)
Lifestyle OFA(sq.m.)
Total OFA(sq.m.)
2018 Sales(RMB'M)
SSSG(%)
2018 ASP(RMB)
2017 ASP(RMB)
Stores under SSSG calculation
1 Nanjing XinjiekouLifestyle Center 23 65,808 15,742 81,550 2,884 -2.8% 1,675 1,546
2 Nantong 18 5,693 64 5,757 5 - n/a -
3 Yangzhou 17 28,608 861 29,649 1,234 -6.7% 1,390 1,309
4 Xuzhou 15 42,257 3,094 43,530 1,773 2.3% 1,213 1,100
5 Xi'an Gaoxin 12.5 22,694 2,650 25,344 766 -8.3% 1,664 1,506
6 Taizhou 12 34,241 7,066 41,306 783 -1.3% 1,130 1,119
7 KunmingLifestyle Center 11.5 45,177 38,104 83,281 568 -1.2% 1,013 747
8 Nanjing Zhujiang 11 23,737 4,392 28,129 351 -5.6% 815 754
9 Huai'an 10 30,058 4,149 34,207 426 -5.2% 893 958
10 YanchengLifestyle Center 10 45,745 14,859 60,604 1,304 2.5% 1,151 1,099
(1) (2) (3) (3)
Golden Eagle is the leading premium retail store chain targeting the mid-to-high-end market in second-tier cities.
(1) As at 31 December 2018. (2) Retail OFA of 1,156,983 sq.m., Lifestyle OFA of 550,572 sq.m. and total OFA of 1,707,555 sq.m. as at 31 December 2018. (3) Same store ASP excluding supermarket sales of RMB1,027 (2017: RMB963), increased by 6.7%. (4) Nantong store has been upgraded to a sport-themed concept store in Oct 2016 and mainly generates rental income. (5) Underwent major upgrade and renovation of the store's facade and shop-front square. (6) Steep local market competition.
(4)(4)
Store Sales
55
(5)
(6)
(1) As at 31 December 2018. (2) Retail OFA of 1,156,983 sq.m., Lifestyle OFA of 550,572 sq.m. and total OFA of 1,707,555 sq.m. as at 31 December 2018. (3) Same store ASP excluding supermarket sales of RMB1,027 (2017: RMB963), increased by 6.7%. (7) Store closed for major revamp since February 2018.
Chain Store Years intooperation
Retail OFA(sq.m.)
Lifestyle OFA(sq.m.)
Total OFA(sq.m.)
2018 Sales(RMB'M)
SSSG(%)
2018 ASP(RMB)
2017 ASP(RMB)
11 Yangzhou Jinghua 9.5 18,769 655 19,425 610 4.3% 914 825
12 Shanghai 9.5 4,633 22,694 27,327 196 36.5% 9,215 8,487
13 Nanjing Hanzhong 9.5 9,759 578 10,337 272 0.7% 456 428
14 Nanjing Xianlin 9 72,424 35,052 107,476 901 12.9% 577 554
15 Anhui Huaibei 8 26,296 3,046 29,342 342 2.2% 650 617
16 Suqian 7 40,848 10,413 51,261 511 -5.3% 797 806
17 Liyang 7 42,184 4,487 46,671 5 -92.2% 404 887
18 Xuzhou People's Square 7 18,845 8,802 27,647 249 2.2% 695 643
19 Yancheng Outlet 6.5 15,511 467 15,978 160 6.6% 444 407
20Yancheng Julonghu
Lifestyle Center4.5 61,969 30,397 92,366 547 5.8% 865 819
(1) (2) (3) (3)
(7)
Store Sales (Cont’d)
56
Chain Store Years intooperation
Retail OFA(sq.m.)
Lifestyle OFA(sq.m.)
Total OFA(sq.m.)
2018 Sales(RMB'M)
SSSG(%)
2018 ASP(RMB)
2017 ASP(RMB)
21 NantongLifestyle Center 4 37,279 10,316 47,595 433 -11.9% 1,089 1,020
22 DanyangLifestyle Center 4 22,276 20,049 42,325 42 -27.3% 425 418
23 KunshanLifestyle Center 4 50,220 33,639 83,859 582 11.8% 914 782
24 JiangningLifestyle Center 3.5 74,205 34,263 108,468 561 16.1% 778 781
25 Ma’anshanLifestyle Center 3.5 47,034 19,058 66,092 370 16.8% 799 738
26 Wuhu Shopping Center 3 18,599 12,411 31,011 96 -40.0% 774 767
(1) (2) (3) (3)
(1) As at 31 December 2018. (2) Retail OFA of 1,156,983 sq.m., Lifestyle OFA of 550,572 sq.m. and total OFA of 1,707,555 sq.m. as at 31 December 2018. (3) Same store ASP of RMB1,027 (2017: RMB963) ,increased by 6.7%, excluding supermarket sales. (8) Undergo subway construction since March 2018. (9) Underwent major merchandise upgrade since March 2018 and re-launched in August 2018. (10) Steep local market competition.
Store Sales (Cont’d)
57
(8)
(9)
(10)
Chain Store Years intooperation
Retail OFA(sq.m.)
Lifestyle OFA(sq.m.)
Total OFA(sq.m.)
2018 Sales(RMB'M)
SSSG(%)
2018 ASP(RMB)
2017 ASP(RMB)
27 NantongRenmin Road 3 774 22,304 23,078 13 -2.1% n/a -
28 Wuhu New City 3 14,111 44,589 58,700 17 20.2% n/a -
29 Suzhou Lifestyle Center Jan 2017 58,451 31,844 90,295 219 -19.4% 871 715
30 Nanjing Golden Eagle World Nov 2017 107,891 60,834 168,726 591 - 601 478
31 YangzhouNew City Dec 2017 44,489 40,775 85,264 272 - 548 839
Managed Store
32 Xi'an QujiangLifestyle Center 2 26,396 12,919 39,315 n/a - n/a -
(1) (2) (3) (3)
(1) As at 31 December 2018.(2) Retail OFA of 1,156,983 sq.m., Lifestyle OFA of 550,572 sq.m. and total OFA of 1,707,555 sq.m. as at 31 December 2018.(3) Same store ASP of RMB1,027 (2017: RMB963) ,increased by 6.7%, excluding supermarket sales. (11) Closed for major revamp and re-launched in Oct 2016. The stores mainly operate under lease model.(12) Steep local market competition.
(11)
(11)
Store Sales (Cont’d)
58
Stores not included in SSSG calculation
(12)
59
City Sales
City Number of stores
Retail OFA(sq.m.)
Lifestyle OFA
(sq.m.)
Total OFA(sq.m.)
Total GFA(sq.m.)
2018 Sales(RMB'M)
2017 Sales(RMB'M)
Sales Growth
2018 EBIT(RMB'M)
2017 EBIT(RMB'M)
EBIT Growth
Nanjing 6 353,824 150,861 504,685 742,979 5,560 4,980 11.7% 841 645 30.4%
Yangzhou 3 91,866 42,291 134,158 224,170 2,116 1,922 10.1% 246 230 7.1%
Yancheng 3 123,226 45,722 168,948 217,390 2,011 1,939 3.7% 222 180 22.8%
Xuzhou 2 61,102 11,895 72,997 97,391 2,022 1,977 2.3% 280 259 8.2%
Nantong 3 43,747 32,684 76,431 134,188 451 509 -11.4% 24 12 108.8%
60
Open Forum
61
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