2.Company Information
3.Operational Analysis
I. Discussion and Analysis of Operational Situation
As of the end of the reporting period, the company achieved a total operating revenue of 58.591 billion yuan, an increase of 19.01% year-on-year, and a consolidated net profit attributable to shareholders of the listed company of 1.817 billion yuan, an increase of 46.28% year-on-year.
During the reporting period, the company's business is divided into four segments, namely, cloud super, cloud creation, cloud business, and cloud gold." The "cloud super" segment involves red label stores and green label stores, covering 21 provinces and cities in Chongqing, Sichuan, Guizhou, Henan, Hebei, Anhui, Shaanxi, Shanxi, Hubei, Jiangxi, Guangdong, Fujian, Zhejiang, Shanghai, Jiangsu, Beijing, Tianjin, Liaoning, Jilin, and Heilongjiang." Yunchuang" includes Yonghui Life Store, Super Species, Yonghui Life App and other businesses." Yunshang" reorganizes functional departments and business divisions of the original headquarters." Yunjin" includes Yonghui's financial business. In addition to the loss of provinces in Jiangxi, Hubei, Yunnan for the year the new provinces, Liaoning loss reduction of more than 50%, Jilin loss reduction is still not up to expectations.
Ⅰ report period cloud super plate key work
report period in Chongqing, Fujian, Beijing revenue, profit solid case, Zhejiang, Shanghai, Guangdong, Sichuan, Shaanxi and other places more than 30% growth in operating income, Zhejiang, Shanghai, Guangdong, Sichuan, Henan, Hebei, Shaanxi, Heilongjiang and other places to get more than 80% profit growth.
(I) Promoting the upgrading of store hardware and facilities, introducing new species, and upgrading the business model
Continuing the work of upgrading the red label stores to Bravo green label stores. Launched the store energy-saving renovation project and introduced intelligent management system, which is expected to reduce the overall electricity bill by 30%. Introduced species such as Polon Workshop, Salmon Workshop and Box Cow Workshop to enhance the store's brand image, attract young, mid-to-high-end customers to the store experience and enhance customer interaction.
(II) Standardized store SOPs, introduced new technologies, and improved operational efficiency
Standardized store business operation standards, Bravo's operation team organized and compiled the Bravo Store Operation Manual, and promoted the process strategy through systematic training and cyclical updates. Developed a small program application for cell phones to reduce equipment investment in PDAs.
(III) Promote online business
Jingdong Arrival had 401 stores as of the end of 2017***, of which 235 were Yunchao and 166 were Yunchuang; 290 new stores were added in 2017, of which 150 were Yunchao and 140 were Yunchuang.
(IV) Supply Chain Integration Begins to Show Results
By cooperating with fresh food source producers and manufacturers, introducing and promoting differentiated, landmark, and quantitatively packaged commodities, etc., and pushing single product marketing according to seasons and marketing nodes, in 2017, the number of single products of more than ten million yuan level in fresh food **** counted 208, an increase of 11, and the number of single products of more than fifty million yuan*** was 35, an increase of 7. billion-dollar single product*** 10 units, an increase of 5 units. In the food supplies segment, by eliminating end-of-line brands, end-of-line goods and low ****ity goods, the average number of items in stores was 11,000, a decrease of 21.4% compared with last year. We incubated category species in our stores and created category projects such as "Kitchen & Living Hall", "Smart Naughty Boy" and "Dream E Home", which further enhanced offline consumers' shopping experience and consumer stickiness. The company's products and services have been widely recognized as the best in the world for their quality and reliability.
(V) Deepen the organizational structure change, the use of science and technology information technology to empower the team
Through the establishment of platforms, regions, small stores self-organization, to achieve the matrix to platform type organization change, continue to promote the small store partner training, reserve category coaching class, the district chief coaching entrepreneurial camp, partner coaching entrepreneurial camp training for the development of the company to tap and reserve backbone forces. Establish an online knowledge base, complete the course content from full-time employees of small stores to small store managers, initially realize online independent learning, exams, exchanges, reports and assessments, complete 180 online *** enjoy learning courses, carry out micro-lesson learning for 19 times, serving more than 10,000 people, and end-to-end through the merchant bank, region and small stores, to quickly empower the latest information and information to the front line.
(VI) Iterate the horse racing mechanism and improve the ecological mechanism
The districts are gradually piloting and promoting the six systematic divisions of labor in the small store partner team, further clarifying the responsibilities. 2017 iterated the district general manager, category coaches, and the small store partner horse racing management methods, and launched the "Benchmarking Store Horse Racing Management Methods", which helped Bravo accelerate the iteration and improve the moderately tense ecological mechanism. .
(VII) Marketing Activities
In 2017, the operations side planned a series of thematic marketing activities, which achieved good results. For example, in September, the sales of "Sweeping Festival" increased by 160.9% year-on-year, customer traffic increased by 55%, and gross profit increased by 80%. Meanwhile, in 2017, through interactive sharing with customers, brand coupons and other digital marketing activities, Yonghui's public number continued to boost its volume, with the number of microfans reaching 5 million from 1.2 million at the beginning of the year. During the reporting period, the number of members with consumption: 15.47 million people, and the total consumption of members: 26 billion yuan; 32.32 million total members.
II Yunchuang segment business Yunchuang team to further develop the entrepreneurial partnership model, encouraging employees, workshop team partnership entrepreneurship, so that young people with a dream to change their destiny through hard work, with both hands.
(I) In 2017, Yonghui Life opened 173 stores, and by the end of 2017, the national layout reached 200 stores in 10 cities, of which
100 stores were opened in the fourth quarter, accumulating the ability to quickly replicate the layout of the stores.
(II) In 2017, Yunchuang team focused on its core strengths and incubated Super Species, which gathered global high-quality commodities to create a series of workshops of
"retail + catering + APP" experiential consumption, and Super Species was selected as one of the "New Species List of the First Half of 2017", ranking among the top 10 new species in the country. Super Species was selected as the "New Species List in the First Half of 2017" and ranked first in the super retail category. Super Species has launched three major incubation workshops, developed quality customization - Super U-choice, and expanded online membership by integrating online and offline smart retail. At the beginning of the year, super species opened the first Fuzhou hot spring store, and by the end of 2017, super species opened 27 stores in 9 core cities***.
(III) The self-developed Yonghui Life APP covered all businesses under Yonghui, 42 cities, 559 stores, and a total of 2.89 million registered users, providing online activities and product recommendations, and realizing online ordering and settlement.
The Yonghui Life mini-program was launched in September, and gained 730,000 new customers within six months. The online transaction volume totaled 730 million yuan, triple that of 2016, of which the online transaction volume of Yonghui Life Store accounted for 40% of the total transaction volume of Yonghui Life Store, and the online transaction volume of Super Species accounted for 27.4% of the transaction volume of Super Species.
III Cloud Business Segment Business
(I) Fresh Global Trade carried out a series of supply chain iteration
optimization work around the three core principles of "quality, brand, and source", and made progress in five major areas of work, such as item development and planning, channel construction, branding and marketing, diversification of supply chain operations, and team restructuring. The company has achieved certain results in five major areas, including item development planning, comprehensive channel construction, branded marketing, supply chain operation diversification and team structure reorganization. Internationally, we focused on the development of direct sourcing of Australian chilled beef, dried Thai longan, high-end aquatic products and Thai rice. We took the lead in organizing one or two clusters of fresh food companies*** to discuss the development plan of quality customized fresh food. New products are listed for branding and promotion, mainly promoting customized products such as Tianqi rice, Half the Sky turbot, Half the Sky pork, and Cutter's earth melons.
(II) Food Hundred Global Trade focuses on promoting the strategy of quality customization and brand agency, adhering to the development concept of source, quality, and brand
, and providing customers with safe, healthy, and cost-effective products with a globalized vision in the two business areas of quality customization and brand agency. Realize the quality of customized billion brands 3: Easy in, Tianqi, Yousong. To create a simple and fashionable style, to promote the concept of healthy, high-quality life, to achieve innovative breakthroughs from scratch in the sale of latex products, cotton candy series towels, non-marking underwear, high elastic rubber slippers and other categories, and to achieve the first sales ranking of individual products and brands in each category, pulling the gross profit growth of the entire business bank. We accelerated the landing of globally superior resources, continued to strengthen cooperation with Milk International, Daman International and Dongzhan International, and saw year-on-year growth of 64.6% in the sales of overseas directly-picked commodities through Yunshang Food Hundred. Quality ordering to open up the online and offline marketing model, cross-drainage, maximize the activation of online and offline customer traffic.
(III) The Garment Department adheres to the model of "small front-end + big platform + rich ecology + *** governance", and has been restructured into three divisions: Supply Chain Platform, Operation Platform, and Middle Stage Support; and the suppliers are managed on a hierarchical basis, with 70% of the suppliers being main suppliers, and 30% of the suppliers being supplementary suppliers.
(IV) color food fresh main revenue of 1 billion yuan, has been in the country Chongqing, Beijing, Fujian, Sichuan, Anhui 5 provinces
set up Yonghui fresh central factory, covering 438 stores; for catering + medicine + prisons + education + electric power + banking and other expansion of the bulk business of 300 enterprises; enterprise purchase: the opening of the APP WeChat shopping mall, the realization of the B2B2C,
The company's business has expanded to 14,000 enterprises in the past three years. 2017 **** expand business 145 units.
(V) During the reporting period, the logistics center of Yonghui Supermarket has covered 17 provinces and cities across the country, with a total operating area of 370,000 square meters and about 2,100 employees
workers; the logistics center is differentiated based on the temperature zone, in which the room temperature distribution center (including transit warehouse) is distributed in 17 provinces and districts, the fixed-temperature distribution center (including transit warehouse) is 5, and there are 17 room temperature and integration centers; the objects of the distribution service are Yunchuang and Yunchao and online customers (enterprise purchase), the operation amount of 31.2 billion, an increase of 16.4%. Sichuan Pengzhou new DC construction planning, planning area of more than 30,000 square meters, plans to put into operation in October 2018; Kunshan warehouse new warehouse construction and opening, room temperature warehouse has been operated in November 2017, fixed-temperature warehouse plans in March 2018. Taiyuan warehouse was opened for operation in December 2017, leasing self-operated mode.
(VI) The IT department has completed the visualization of the entire order process from the store's request for goods to the store's receipt of goods; combined with the special
business scenarios of fresh food, combing the process to optimize the system nodes, to achieve the business data and process visualization. The content of the interaction between suppliers and retailers is all online, the whole process is online, visualization, tracking, traceability, process transparency, saving manpower, material resources and communication costs. Through the Internet cloud technology to create "agricultural products source end - circulation end - customer end" full visualization tracking system. Last year, the Food Safety Cloud Network was invited to participate in the 2017 National Food Safety Awareness Week Exhibition, and with the cooperation and promotion of the cluster business, it established 44 sites and deposited a large amount of testing data, which provides good data support for the procurement of commercial firms and the operation of stores.
(VII) During the reporting period, human resources opened the "iHR Phaidon 2.0" project for human resources construction and the "Marketing Master" platform project for the integration of the company's promoter resources
, aiming to build a digital human resources information system platform, set up a WeChat Marketing Master public number, and build manufacturers, Suppliers, firms, stores, promoters information & resources **** enjoy the platform. Aims to integrate the market idle labor, revitalize social resources, to better service to the stores. Currently registered members of more than 2,000 people, released more than 20 recruitment information, and from time to time released stalls commodity sharing earn, coupons and other activities, through a series of interactions, so that the resources are more stable, the flow of information faster. In the introduction of marketing professionals services of commodity sales are currently in a high growth trend.
IV cloud gold plate business Yonghui financial team based on factoring and small loan dual license qualification, continue to focus on the whole retail industry chain. Initially, we are focusing on four financial products. They are "Huizhou Super", which helps retailers and super suppliers to recover their payments in advance, and one-click financing for the whole network; "Huizhou Rent", which provides lease financing services for offline commercial property micro-enterprises and helps property developers to recover their leases in advance; "Huizhou Small and Micro", which is a business loan product for online and offline physical franchises/single stores; and "Good Borrowing", which is an installment product and a cash borrowing product for individual customers. As of the end of the reporting period, we have initially accomplished the strategic goal of building a mobile intelligent technology financial business with "full supply chain, full coverage of offline retail store network and consumers". As of the end of the reporting period, the total number of registered customers is 140,000, with a loan balance of 1.06 billion yuan.
V Process Optimization
(I) The first "Taylor Cup" process design competition was held in June 2017, with 17 teams participating.
(II) Optimized the processes of "new store development", "on-bill payment claim", "employee reimbursement", "bidding "
(III) Started the process sorting, pulling through, and system implementation of the Phaidon 2.0 human resources project.
II. Discussion and analysis of the Company on the future development of the Company
(I) Industry pattern and trend
The capital market of the retail industry in 2017 has been in flux. Since Alibaba put forward its new retail strategy in October 2016, it has relied on projects such as Box Horse, Yintai, and Retail Pass internally, and externally, through its shareholding in Suning Yuncheng, Sanjiang Shopping, Lianhua Supermarket, Xinhua Du, Gaoxin Retail, and actually home and many other retail enterprises, to carry out OTO transformation and achieve a certain first-mover advantage. Tencent later came to the forefront, and has taken a stake in Yonghui Supermarket, BBK, Carrefour, Wanda Commercial, and Hailan Home.
(B) The company's development strategy
The company's strategic development outline for 2016-2020.
(C) Business plan
1. Store opening plan: 135 new Bravo stores, 100 super species, and 1,000 Yonghui Life stores;
2. Promote the process of supply chain, human resources, finance, master data, and other sub-projects included in Phaidon's 2.0 full-process pull-through
combing, pulling-through, and landing of the system, etc., and simultaneously Supporting the establishment of IT governance system, process governance system to ensure Phaidon 2.0
6, logistics projects: construction of Nantong complex, No. 1 freezer and dry warehouse; construction of new warehouses in Sichuan; start the operation of Kunshan
temperature logistics, promote the construction of integrated logistics parks in Kunshan, linkage of the cloud super (ambient temperature, constant temperature), Yunchuang (Yonghui Life, Super Species) logistics centers to realize the *** Enjoy! Comprehensive distribution; Nanyu warehouse minus 1 layer of engineering transformation; cold chain warehouse construction: the establishment of Henan, Guizhou, Shaanxi, three cold chain warehouse; Chongqing single-temperature preservation of fresh storage transformed into a dual-temperature belt storage warehouse;
7, the implementation of the "marketing plan", to find out the new model of cooperation with the supplier's marketing.
8, part of the old store renovation, self-built logistics, innovative business continued to invest in the information system continued to upgrade and other projects, it is expected
2018 long-term investment in operating assets will reach 5 billion yuan, in order to obtain high-quality commercial resources and to expand the new investment projects, it is expected that the scale of foreign investment does not exceed 4 billion yuan. 2018, in addition to the use of its own funds to solve the above capital expenditure plan, it is planned to use its own funds to solve the above capital expenditure plan. expenditure plan, it is planned to plan to apply to the Association of Inter-bank Market Dealers for the registration of issuance of short-term financing bonds of no more than 8.1 billion yuan quota. At the same time, in order to ensure that the company has good financing ability and smooth financing channels when needed, the company intends to apply to 11 banks for a total of 25.6 billion yuan of comprehensive credit lines.
(IV) Risks that may be faced
The effect of foreign investment is not up to expectation, and the impact of the speeding up of online business on the performance.
C. Analysis of core competitiveness during the reporting period
The company insists on building a platform enterprise of food supply chain based on the intelligent middle platform, and builds an entrepreneurial platform for young people with the partnership system + horse racing system.
4. News Announcement
5. Company Events
6. Industry Comparison