Corporate Information

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Corporate Profile
Chairman's Statement
CEO's Statement
Board of Directors

CEO's Statement

Dear Shareholders,

We are pleased to announce that the Group is able to achieve record revenue of RMB967m in 2018.



In an environment of more moderate growth in the Chinese economy, the Group’s performance in 2018 can be regarded as satisfactory as we began our journey on a new growth path in the large scale outlet business segment while maintaining a good level of profitability in our traditional format store strategy.

We are pleased to announce that our maiden outlet super mall, Changsha Sasseur (Zhongmin Baihui) Outlets, was successfully opened for business in December 2018. The huge sales recorded during the opening period was very encouraging. Even though the mall recorded a financial loss in 2018, which was largely due to the recognition of pre-operating expenses, we are confident that the contribution from the mall in 2019 will be positive. In June 2018, we announced the signing of several joint venture agreements. We are making significant progress on two of the agreements - the joint venture agreement for the management of Wuxi Mingfa Commercial Square, a complex with a total gross floor area of 480,000 sqm in Wuxi City, Jiangsu Province and the JV agreement for the 217,900 sqm Shanghai Mingfa Jiading Centre in Shanghai, which we will co-manage with CQ Sasseur. The outlets super mall management business is a new business segment for the Group and we are confident this will be a significant source of growth over time. The new outlets are scheduled to opened around the end of 2020.

Our traditional business in the department store and supermarket segments performed in line with expectations, albeit at a lower level of profitability. Revenue in 2018 declined by a marginal 0.6%-point from the previous year to RMB967m. Gross profit fell 3.9% to RMB280m (from RMB292m). Lower advertisement and promotion income, impairment charges, provisions for termination of leases and losses incurred by associated companies dragged net profit down by 25% to RMB40.5 million. Nevertheless, our net cash flows generated from operating activities remained strong at RMB75m in 2018. A more prudent dividend policy enabled us to maintain a stronger cash balance of RMB207m (from RMB187m). There was no interest-bearing debt or borrowing as at the end of 2018. The Group is confident that we are able to manage our growth strategy with our resources.

The Group’s presence in Fujian will continue to grow this year. Based on our store roll-out plan, we should open two stores in Zhangzhou City, one in Xiamen City and three in Quanzhou City in 2019, which would increase our total self-owned store gross floor area by more than 30%. Growth in the lower tier cities in Fujian continues to be robust and the Group is well positioned to capitalise on this trend.

We will continue to improve our staff productivity, improve customer satisfaction and maintain our competitive edge. We are confident 2019 and the years beyond will be good for our stakeholders.

Chen Kaitong
CEO

27 March 2019


在中国经济适度增长的大环境下,集团在2018 年度的总体表 现令人满意,主要得益于集团于2018 年度开启了超大型奥莱 (折扣店)商业模式发展的全新道路,同时在传统门店经营模 式的策略下保持了较好的盈利。

我们很高兴的宣布,我们首家超大型奥莱——长沙砂之船(中 闽百汇)奥特莱斯——于2018 年12 月正式开业,开业当日 销售额即取得巨大突破。即使购物中心由于重新开业导致在 2018 年财务费用造成部分费用,但我们相信其在2019 年度 必将做出贡献。2018 年6 月,我们宣布签署了几份奥莱合资 协议。自签约以来,无锡项目和上海项目已取得显著进展。无 锡项目是在江苏省无锡市明发商业广场,总面积达480,000 平 方米。上海项目是和重庆砂之船合作管理上海市上海海明发嘉 定中心,总面积达217,900 平方米。两家奥莱计划于2020 年 年底开业。超大型奥莱(折扣店)购物中心管理是集团一项新 的业务,我们相信其必将成为集团未来持续发展的重要动力之 一。

我们百货商场与超市的传统业务在本年度尽管盈利水平较低, 但总体在我们的期望内。2018 年度收入同比下降0.6% 至人民 币9.67 亿元。毛利率同比下降3.9% 至人民币2.8 亿元(同比 人民币2.92 亿元)。净溢利下降25% 至人民币4050 万元 下降原因包括较低的广告和促销收入、减损支出、租赁终止支 出与联营公司亏损。尽管如此,我们的净现金流在2018 年度 通过经营活动仍保持强劲,达到人民币7500 万元。此外,更 谨慎的红利政策使我们能够保持充足的现金款,从2017 年的 人民币1.87 亿元增加至2018 年的人民币2.07 亿元。2018 年 同无付息债务或借款。集团有信心保持稳步发展。

集团在福建省的经营业务将在今年继续扩张。根据集团开店计 划,我们将在2019 年度迎来多家新店开业,包括漳州市两家、 泉州市三家以及厦门市一家。届时,我们的自营店总经营面积 将增长超过30%。目前,福建省二三线县市的经济增长持续强 劲,集团将严阵以待,随时准备好投入到该经济潮流中。

我们将继续提高劳动效率,增加顾客满意度,同时保持集团竞 争力。我们相信2019 年及之后年度将会是我们所有利益相关 者的福运年。

陈开通
总裁

2019 年3 月27 日