BBK Half Year Revenue Breaking 100 Billion Digital Transformation Initial Success

On August 28th, BBK disclosed its semi annual report in 2019, which is also the first semi annual report of chairman Wang Tian after BBK CEO. During the reporting period, BBK realized operating income of 10 billion 70 million yuan, an increase of 3.16% over the same period last year, and realized net profit of 247 million yuan, an increase of 1.2% over the same period last year. The net profit of non profit deduction was 233 million yuan, an increase of 14.72% over the same period last year.

Initial achievements in digital transformation

In the first half of 2019, BBK actively layout smart retailing, accelerate the pace of digital transformation, and continue to exert power in the "digital membership, digital marketing, digital operation" and other aspects.

During the reporting period, the company's digital transformation achieved initial success. As of the semi annual report, BBK achieved digital membership of 13 million, sales of its members accounted for 71%, and monthly purchases of members increased by 30% over the same period. The company opened more than 200 digital stores, and the total volume of online transactions was nearly 700 million yuan.

With the help of smart retail tools such as community and small programs, through the small program scan code purchase, WeChat payment and face recognition payment, BBK's all channel digital operation capability has been upgraded, to store, home to dual scene integration, integrated marketing to touch consumers accurately, effectively attract customers to store consumption, improve the ratio of home to service, improve the rate of user repeat purchase and single customer contribution.

In terms of supply chain reform, BBK pushed forward the supply chain reform focusing on "fresh as the core", reducing the intermediate links through the fresh base, and gradually increasing the gross profit margin.

As of the end of June 2019, the company has four provincial central parks in Hunan, Guangxi, Jiangxi and Sichuan. There are 29 kinds of warehouses at room temperature, fresh keeping, freezing, refrigeration, and bonded. The standard parts of vegetables have reached 98.29%, and the standard parts of fruits have reached 86.49%. At present, the company is vigorously promoting plate distribution and launching intelligent logistics construction.

Constantly deepening the southwest market

During the reporting period, the business layout of BBK expanded further. Data show that in the first half of, BBK opened 42 new supermarkets and 1 Department stores, and chain operations had expanded to 14 cities in Hunan and some cities in Jiangxi, Guangxi, Sichuan and Chongqing. As of the end of the reporting period, the company opened 381 stores.

In addition, BBK Changsha Mei Xi Xin Tian project has now achieved a single month profit in 5 and June this year. During the reporting period, the project achieved a total of GMV (total online and offline transactions) exceeding 1 billion yuan, an increase of 25% over the previous year, and passenger traffic 14 million, an increase of 10% over the same period last year.

In June this year, BBK group, the controlling shareholder of the company, joined the Wumart group to participate in the mixed ownership reform of Chongqing department store's controlling shareholder and business group, and indirectly invested in Chongqing department store. According to the latest progress made by Chongqing department store on the evening of August 26th, the transaction has been approved by the State Administration of market supervision and administration.

BBK, Chongqing department store and Wumart group jointly join the three parties, and will hopefully form resources synergy in terms of format layout, supply chain extension, logistics construction and so on, enhance regional influence and reshape the southwest super market layout.