The Number Of Xinhua Stores Is High. 1-5 More Than 20 Stores In The Month

Xinhua's shopping plaza Limited by Share Ltd (hereinafter referred to as "Xinhua capital") issued a notice on closing the disposal of some stores and risk tips, which is the second issue of the store closing announcement this month.

The announcement shows that Xinhua has closed down Zhangzhou Yanan Plaza supermarket, Datian Fengshan store and Nanchang Jinsha store. The reason for the closure is long-term business losses and is still failing after adjustment.

Among them, the Yanan Plaza supermarket store in Zhangzhou is located in Xiangcheng District, Zhangzhou, where Yanan North Road and Tengfei Road Interchange, opened in December 24, 2010 and closed in April 15, 2019.

Datian Fengshan store is located in 6 times square, No. 100 Fengshan Middle Road, Datian County. It opened in June 7, 2012 and closed in May 16, 2019. Nanchang Jinsha store is located at 2268 Jinsha Road, Nanchang County, opened in December 20, 2013 and closed in March 31, 2019.

Xinhua has said that the amount of losses caused by the closure of the above stores has been confirmed to be 18 million 950 thousand yuan, mainly including compensation for loss of owners and tenants, one-time amortization of long stall balances, loss of some fixed assets, loss of inventory and compensation for employees.

The closing losses of some stores have not been fully confirmed, and the specific amount will be disclosed in the periodic reports according to relevant regulations.

In May 5th, Xinhua announced that the company had closed down 19 stores and the amount of loss generated has been confirmed to be 75 million 320 thousand yuan.

Of these 19 stores, 16 are located in Fujian, 2 in Guangdong, and 1 in Jiangxi. The main reason for the closure is "long-term losses and loss of hope" or "long-term operating losses and losses after adjustment."

According to two announcements released by Xinhua, its number of stores has reached 21 this year (the Putian Feng Mei store was closed in 2013, so it was not included in the statistics).

These closed stores have been operating for a period of 10 years, with a short period of 1 years. Xinhua has closed the disposal of the above stores for more than 90 million yuan.

In the past ten years, the number of new stores has never been over 15, and the number of stores closed in 2013, 2015 and 2017 has reached 10 or more, and the number of outlets has exceeded 20 in the first 5 months of 2019, which means that the total number of new stores will be higher this year.

The closure of a large number of stores resulted in huge losses, which also made Xinhua's performance under pressure.

In the first quarter of this year, Xinhua revenue declined 10.54% to 1 billion 660 million yuan, and net profit dropped 2.65% to 279 billion 100 million yuan compared with the same period last year.

Xinhua said that the company prudently disposed of or closed down part of the lease contract which was about to expire, suffered a long period of losses and adjusted its losses after the adjustment. According to the actual situation, the loss is expected to have a greater impact on half year's business performance, with a net loss of 50 million yuan ~9000 million yuan in 1-6 months.

In recent years, the growth of Xinhua's performance has been unstable, maintaining the frequency of one year loss and one year's profit.

In September 2017, Xinhua invested in the arms of Ali, and the two sides jointly invested 200 million yuan to set up a new box technology. They are planning to open and operate innovative stores in Fujian.

It is reported that the new box technology mainly runs Fujian's "box horse fresh life" brand.

However, only 1 years later, in September 20, 2018, Xinhua announced that it would pfer 40.50% of its new box technology to Ali by 81 million yuan, and its shareholding ratio in the new box technology dropped to 9.50%.

It is worth noting that in May 2017, Xinhua also opened the first new business model, "catering + retail", which is similar to the new retail of box horse fresh and super species, with a total area of about 5000 square meters.

In the second half of 17 years, the marine industry will start the pformation strategy, and begin to create a Chinese food platform to hatch small businesses.

Since 2017, Xinhua has continued to focus on the strategy of "Xinhua capital new retail", but the result is not satisfactory.

From the perspective of two years of development, the marine industry is still in its investment stage, and there is a big loss every year. It is hard for Xinhua to make profits in the short term.

Despite the cost increase and the pressure of performance, Xinhua did not plan to abandon the new water business.

In May of this year, Xinhua launched the first neighbourhood vegetable market with Tao Xian DA in Quanzhou run Hua commercial building, covering an area of about 2000 yuan, integrating supermarkets, vegetable farms and restaurants into one, and introducing the sea fair to provide 1 hours of "home service".

On the one hand, new business needs continuous investment, while the other side brings huge losses. Xinhua is unlikely to turn over in the short term.