Xinhua First Three Quarter Or Another 200 Million Loss, Consumer Willingness To Drop This Tragic Business Leader In Fujian?

Taking the department stores, supermarkets and sports retailers rooted in Fujian Xinhua shopping plaza Limited by Share Ltd (hereinafter referred to as "Xinhua capital"), after the first half net profit loss of 121 million yuan, in October 12th released the first three quarters of 2019 performance forecast, it is estimated that the company's net profit in 2019 1-9 months is -2.20 billion to -1.90 billion, compared with 15 million 492 thousand and 400 yuan in the same period last year, down 1520.05% to 1326.41% over the same period last year.


Xinhua said that the above prediction is based on the following reasons: the main reason for the company's performance losses during the reporting period is the adjustment of some long-term losses and loss of hope shops, disposal of loss business and termination of the 2018 restricted stock incentive plan to accelerate the withdrawal of share fees.


As of the first half of 2019, the number of Xinhua stores was 95, including 83 supermarkets, 6 department stores and 6 sports. Data show that in the first half of this year, Xinhua has shut down 48 supermarkets, and the amount of compensation losses generated by the company and the one-time amortization loss of decoration and long stall are about 161 million yuan, which has affected the semi annual performance.


China Galaxy Securities analyst Li Ang believes that in the first half of 2019, the scale and performance of China's retail enterprises were obviously under pressure, which was mainly caused by the negative impact of economic slowdown and supply side reform. In view of the fact that the reform has entered the deepwater area, the problem of mismatch between supply and demand is enlarged, and the adverse effects such as the decrease of residents' consumption will co-exist, the retail industry as a whole is still in a state of inertia.


Intense.


However, in Li's view, after the country has established the direction of consumption led economic growth, the transformation of China's retail enterprises should focus on the changes brought about by the new mode and the new technology, so as to realize the dynamic balance between the expansion of scale and value creation, and the dynamic balance between speed increase and synergy, and ultimately reduce the actual purchase cost of goods and services, highlighting the higher industry value.


Reporters noticed here that China's "global consumer insight research 2019" released by PWC recently shows that China is one of the most important and challenging consumer markets, which many retailers can hardly ignore. Chinese consumers are becoming more and more smart, and the demand for consumption experience is higher and higher. In order to develop this unique battlefield, enterprises need to upgrade from strategy formulation to execution to flexible operation, adaptability, cost-effective and customer centered operation mode.


PWC said that the current economic trends and demographic data show that China's low level cities will become a new driving force for consumption growth, because the growth of disposable income and wider products and services will benefit the middle class. Low tier cities are also benefiting from relatively low housing costs, effectively releasing the consumption potential of more non essential consumer goods, and the growth rate of consumption in three or four tier cities is faster than that in the first tier cities. The total expenditure of the low level cities is such a rapid impetus to China's overall consumption growth.


In the past, many media reports linked China's growth to first tier cities (mainly Beijing, Shanghai, Guangzhou and Shenzhen). As a result, they ignored the great potential of China's low - level cities. By 2030, PWC predicted that household consumption in the next three and below cities will increase by three times, of which only net growth will exceed the size of today's consumer market.