Wangfujing, Which Sits On 54 Large Comprehensive Retail Stores, Is Allowed To Operate Duty-Free Retail Businesses.

The Wangfujing group Limited by Share Ltd (hereinafter referred to as "Wangfujing") issued a notice on June 9th that the company received today's announcement from the Beijing Capital Tourism Refco Group Ltd that the Ministry of Finance issued the notice of the Ministry of Finance on the qualification of Limited by Share Ltd tax-free duty-free products. Duty free retail business.

It was learned that, as early as July 2019, the Interim Measures for the administration of port exit duty-free shops jointly issued by the five departments of the Ministry of finance, the Ministry of culture, the Ministry of Commerce and the Ministry of Commerce (hereinafter referred to as the "measures") decided to conditionally release the restrictions on the categories and categories of duty free shops, and allow enterprises to compete for the right to operate the duty free shops at the port at the same time.

According to the regulations, except for the State Council, the enterprises that have been approved by the State Council to have duty-free business qualification and have made continuous operations in the past 5 years or the performance of the duty free shops in the city shall be allowed to release the geographical and category restrictions on the duty free shops and allow enterprises to compete for the right to operate the duty free shops at the port at the same time. Port exit duty free shops must be held by enterprises with duty free business qualifications (shareholding ratio is greater than 50%).

In addition, in the selection of the main business entities of the duty free shops at the port, the "Regulations" stipulate that the tenderers or port owners can determine the ports through which the ports enter or leave the duty-free shops. In the selection of business entities, we should comprehensively consider the business capabilities of enterprises. The richness of categories of commodities, especially tobacco and alcohol, should be an important measure. Technical indicators shall not be less than 50% in bid evaluation. In brand investment, the proportion of tobacco and alcohol should not exceed 50%. After the tender or approval of the business entity of the port exit duty free business newly established or operating contract is expired, the term of operation shall not exceed 10 years.

Public information shows that Wangfujing is a large chain retail group with a long history and well-known throughout the country. Beijing department store, the predecessor of Wangfujing department store, was founded in 1955. This is the first large department store built by the state after the founding of new China, so it is also known as "the first shop in New China". Since then, the name "Wangfujing" has gradually been well known to the whole country, and even become one of the attractions that foreign tourists visit Beijing. In 1991, the trans regional group with the core of Beijing department store was approved. In 1994, the company was listed on the Shanghai Stock Exchange. In 2000, it was reorganized with Beijing Dongan to become the largest department store group in Beijing.

The main business of Wangfujing is commodity retail and commercial property rental business, covering four main formats of department stores, shopping centers, outlets and supermarkets, and has online retail channels. The company's revenue mainly comes from the sales revenue of its stores and the rental income of functional businesses. By the end of 2019, Wangfujing had operated 54 large-scale comprehensive retail stores nationwide, with a total construction area of 3 million 28 thousand square meters, involving 33 cities in North China, Northeast China, central China, East China, Southern China, southwest and northwest seven economic regions.

According to the financial report, in 2019, Wangfujing realized total business income of 26 billion 790 million, an increase of 0.3% over the same period last year, and realized net profit of 960 million, a decrease of 20% compared with the same period last year, and the earnings per share were 1.24 yuan. During the reporting period, the gross profit margin of the company was 20.6%, down 0.5 percentage points from the same period last year, and the net interest rate was 3.5%, down 1.1 percentage points from the same period last year.

According to the regional sales situation, the income growth of East China and Northwest China in Wangfujing is relatively good, and the operating income in North China is still the highest proportion of income. The growth rate of large and medium-sized stores in China and western regions has maintained a steady growth.

As a whole, the comprehensive department stores still occupy the dominant position in the business income structure of Wangfujing, and the annual income has declined compared with the same period. Benefiting from the company's continuous deepening of the transformation of format transformation, Oteri J's business revenue and profits have achieved relatively rapid growth. Business revenue has accounted for 17.9% of the total revenue of the group's main business, and has gradually become an important driving force for the growth of the company's performance platform. Shopping center format

From time to time, by the macroeconomic impact, the first quarter sales growth declined slightly compared with the same period last year, and the two quarter rebounded, and the three or four quarter continued to fall. In addition, the number of transactions continued to decline slightly, and passenger unit price increased slightly.

In the first quarter of 2020, Wangfujing achieved a total revenue of 1 billion 520 million, down 78.8% from the same period last year, and realized net profit of -2 billion, which was 400 million yuan in the same period last year, and failed to maintain profitability. During the reporting period, the gross profit margin of the company was 25.9%, an increase of 5 percentage points over the same period last year, with a net interest rate of -14.6%, down 20.3 percentage points from the same period last year. During the reporting period, 48 shops in Wangfujing took temporary closure policies to cope with the relevant departments' epidemic prevention measures. After resuming work and resuming production, the business hours of the stores were greatly shortened, and the traffic volume dropped sharply. At the same time, as one of the representative enterprises of retail enterprises, Wangfujing responded positively to the government's call to reduce rent and related fees for suppliers and tenants during the first quarter of the year, which has a major impact on the company's operating performance in the first quarter.

In the reporting period, the revenue of Wangfujing department store was 1 billion 8 million yuan, accounting for 66.92% of revenue, and the sales revenue of shopping center was 219 million yuan, accounting for 14.53% of revenue. The income of outlets was 110 million yuan, accounting for 7.32% of revenue.

In the reporting period, the highest operating income in the southwest region of Wangfujing was 523 million yuan, accounting for 34.02% of revenue, 498 million yuan in North China, 32.39% in revenue, 177 million yuan in Central China, and 11.50% in revenue.