US Group First Realized Annual Profit In 2019, First Quarter Loss In The First Quarter Of This Year

The sudden outbreak of the new crown pneumonia has had an impact on the daily operations of all walks of life.

In March 30th, the US group commented on the fourth quarter and the full year performance in 2019. The results showed that the company's annual gross revenue reached 97 billion 500 million yuan, an increase of 49.5% over the same period last year, adjusted net profit of 4 billion 700 million yuan, and operating profit from the negative value of 11 billion 100 million yuan in 2018 to 2 billion 700 million yuan. In addition, in the fourth quarter of 2019, the US group's comment income was RMB 28 billion 158 million yuan, up 42.2% over the same period last year. The net profit after adjustment was 2 billion 270 million yuan, and the net loss in 2018 was 1 billion 582 million yuan in the same period.

As a result, the US group handed in a good report card in 2019, but there is still a challenge ahead. Affected by the new crown epidemic, the catering industry continued to bear pressure. The US group said in the earnings report the downward pressure on the company in the first quarter of 2020, and estimated that the first quarter of this year will be negative year-on-year growth and operating losses. The operating performance in the next few quarters will also be adversely affected.

It is worth noting that the difficulty of reemployment brought by the epidemic has also led to the shortage of transport and the rising cost of takeaway riders. In the next period of time, the entire Internet O2O industry will also face greater uncertainty.

Expected loss in the first quarter

According to the results of the report, the US group's revenue mainly comes from three major business segments, which are catering takeaway, store and wine tours, new businesses and other sectors. In the fourth quarter of 2019, the gross margin of catering takeaway increased by 4.3% to 17.7%, and the new business and other gross margin increased from 21.2% to 21.2%, while the gross profit margin of shops and liquor businesses rose 2% to 88.6%.

The catering takeaway business is still the main source of revenue for the US group. According to the earnings data, the annual total transaction volume of the US group increased by 32.3% to 682 billion 100 million yuan compared with the previous year, and the annual turnover of the platform reached 450 million, of which the food and takeaway business continued to grow, and the transaction volume increased by 38.9% to 392 billion 700 million yuan over the same period, and realized 54 billion 800 million yuan in revenue. The number of transactions increased by 36.4% over the same period last year, reaching 8 billion 700 million copies. According to the financial report, in 2019, the low level city is still the main driving force for user growth, most of the new users come from three cities and below cities.

However, affected by the epidemic, catering and takeaway, hotel, hotel and tourism businesses face major challenges in terms of demand side and supply side. This is an important reason for the US group to predict losses in the first quarter.

In the fourth quarter of 2019, the sales volume of the US group catering takeaway in the low level cities increased by 45%. At the same time, the selling cost of food and takeaway increased from 32 billion 900 million yuan in 2018 to 35.7% yuan in 2019 to 44 billion 600 million yuan in 2019. According to the US mission, 3 million 990 thousand riders received income from the US group in 2019.

In addition, the sales volume of the US group increased from 25.6% to 222 billion 100 million yuan in 2019, and the revenue increased by 40.6% to 22 billion 300 million yuan. Chen Shaohui, senior vice president and CFO of the US group, said at the earnings call conference that in some areas most affected by the epidemic, such as Hubei, including Wuhan, the commission rate was reduced, and the company also introduced some supportive policies for businesses. "Our primary goal is to grow business, expand business scale and improve operational efficiency, rather than short-term income generation. The United States group charges for businesses and consumers together, accounting for less than the total volume of international transactions.

Although the country has resumed its status, the catering industry is still in a difficult time. There are 189 stores in the country, and now the 151 stores are back to business. Pan Hongling, chief executive of frog Lai Da, told an economic reporter in twenty-first Century that the store is expected to resume business in early April. "The catering industry is still in a very difficult stage at present. After the resumption of work, the cost is returned, but profits are hard to return, and the passenger flow is seriously insufficient, resulting in a direct loss. Since March, the performance recovery rate of frog has reached only 30% of the same period last year.

Takeaway, frog orders this year only accounted for 30%-40% of the same period last year. Pan Hongling said that at present, frog came to actively promote the progress of takeaway business. Before that, only a few stores in the country were selling takeaway. During the epidemic period, the company opened the takeaway service in the national stores to expand the business volume.

U.S. group Ali competition upgrade

Although the war situation was quite good in 2019, the US group still had to face many competitions.

In March 16th, Ali local life line held the "2020 business conference". Wang Lei, President of Ali local life service company, said that in the coming year, Alipay, Taobao, Tmall and Gao De will get more than 100 million visitors per day. The Commission will remain below the level of 3%-5% in the industry.

Under the impact of the epidemic, the Alibaba and the PayPal capital have been upgraded. More emphasis has been placed on the integrated platform for their business consumer services, including new takeaway, hotel, store consumption and other entry on its platform, and also some support policies for stores affected by the epidemic. In addition, data statistics show that since January 20th, 12.2 new riders have joined hummingbirds.

However, whether it is hungry or the US group, the negative growth of supply and demand ends in the first quarter of 2020 is an indisputable fact, and it is still unknown when the whole year will return to normal level. The high operating cost is still the focus of future optimization.

According to the financial report, the takeaway commission income of the US group was 49 billion 650 million in 2019, and the cost of dining takeaway riders was 41 billion 40 million. The takeaway Commission is composed of three charges, namely platform usage fee, technical service fee and distribution service charge. The total utilization fee and technical service fee account for only 20%, while the distribution service charge accounts for 82.7% of the total commission fee, that is to say, the Commission exceeds 80% for the rider's salary.

Over the past two months since January 20, 2020 to March 29th, the US group has registered 457 thousand new riders with revenue. Research shows that more than 60% of these new riders are from the life services industry and the manufacturing industry, and the life service platform such as the US group has played an important role in the employment stabilizer.

On the other hand, more and more catering enterprises have seen the role of digitalization and online in catering operation efficiency and Ping efficiency. Force takeaway is almost all restaurant's helpless "open source" choice. Chen Shaohui believes that the US regiment has never been afraid of competition. The reorganization of Alibaba and the revision of Alipay just prove the correctness of the goal of the US group, and prove the potential of the market, which proves the business mode and value of the US group. "We think China's market is huge, and the development of this industry is also in the early stage. We welcome the entry of our competitors to accelerate the commercialization, and all our ecosystem partners will also benefit from it."

The prospect Industry Research Institute analysis thinks that the catering takeaway market is expected to usher in a high growth from the end of February to the end of April. According to the calculation, under the positive assumptions, the annual operating income of the catering industry will drop by 4.2% in 2020, while the pessimistic hypothesis will drop by 16.7%.

The relevant director of the China Cuisine Association suggested that the current epidemic situation is still continuing, and catering enterprises still do not have the conditions for large-scale resumption of business. In order to support the catering enterprises to tide over difficulties and restore confidence, local governments are encouraged to grant subsidies to the local catering enterprises and reduce various municipal and regional charges. At the same time, we suggest that we should appropriately reduce the social security payment base, allow enterprises to carry out "leave on leave", and provide some living subsidies to employees who are in need of life.

?