The Continuous Decline Of Beijing Kelong Net Profit Is Caused By Cost Pressure.

As an old commercial enterprise in Beijing, Jing Kelong In the past two years, the performance has continued to decline, and net profit has been shrinking again and again. When the tide of rapid economic growth is receding, Beijing Kelong has always been more expensive than its peers. At the same time, although the wholesale business has become the backbone of Beijing Kelong since 2007, it is also continuing to grow. However, the wholesale market has limited potential for growth as a whole. It is only a drop in the bucket to rely solely on this.

　　 Net profit three consecutive fall

The continuous decline of Jing Kelong net profit began in 2012. At that time, the growth rate of China's retail industry was at a record low. In the semi annual report of this year, Jing Kelong also pointed out that the net profit has dropped sharply.

In the first half of last year, the net profit of the company was 77 million 630 thousand yuan, a decrease of about 24.6% over the same period last year, and then a net profit of 105 million yuan a year last year, down 50% from the 210 million yuan in 2011. This decline continued to the first half of this year, and Beijing Kelong's net profit fell by 37.7% to 48 million 360 thousand yuan again. While the performance of Beijing Kelong declined, the company, despite its development bottlenecks, maintained a steady trend. Yonghui quickly turned over after a downturn in its performance and reversed the unfavorable situation at the end of last year.

Relying on a large number of convenience stores attached to the community, although Jing Kelong's penetration and loyalty in the Beijing market have reached the top three, the number of debut data has decreased significantly this year. In the first half of the year, the penetration rate of Beijing Kelong dropped from 46% last year to 45% this year, and loyalty has dropped from 12% to 11%, according to Kantar Worldpanel, a consumer research firm.

　　 Cost pressure

Operating costs continue to rise and compress. Retail enterprises The profit from the analysis of the North Business Research Institute shows that the cost pressures of labor and financing are more obvious in Beijing Kelong.

Jing Kelong is a state-owned enterprise, and its implementation of various policies is stricter. Last year, after the five ministries and commissions jointly rectified the retailers' illegal fees, they obviously felt that all kinds of charges in Beijing haulong had dropped a lot. This has an impact on the income of enterprises. " A large supplier in Beijing revealed that compared with state-owned enterprises, the implementation of private enterprises is not so strict, and the operating pressure is obviously lower.

According to the relevant regulations, Jing Kelong, a state-owned enterprise, needs to raise wages for employees every year, and the increase in labor costs is higher than that of peers. More importantly, Jing Kelong's financing costs are also high. "A shares are easier to finance than H-shares, but Beijing's two rounds of A shares have failed. At present, the company can only rely on bank loans to open new stores. This year is the tightening period of banks. The interest rate of loans is several points higher than before, and interest costs have gone up.

Although H-shares are not short of Wuming business, Lianhua supermarket and other peers, the above said that if commercial real estate projects can ease the problem of financing, Jingkelong has no commercial real estate. Financing can only rely entirely on banks.

　　 "Trump card" market atrophy

Compared with its peers, Jing Kelong has wholesaling business besides retail business. The Beijing Commercial Daily reporter visited Beijing Kelong's financial report for the past year, and found that in 2007, Beijing Kelong began to increase wholesale business and set up Chaoyang wholesale market, and the sales revenue of wholesale business exceeded that of retail business. In the first half of this year, Jing Kelong's wholesale business income increased by 12.1% compared to the same period last year, while the retail business grew by only 4.5%.

However, Wholesale business It seems to be growing rapidly, but I am afraid it will be difficult to recover the decline of Beijing Kelong. Liu Hui, a business expert, said that wholesale business is shrinking in China and its growth potential is limited. Beijing Kelong financial report also showed that in the first half of the year, the gross profit margin of Chao commerce and Affiliated Companies decreased by about 1.9%, mainly due to the promotion of promotional activities in the first half of the year and the decline in gross profit of liquor products.

"Chao commerce and Moutai and Wuliangye each year have hundreds of millions of Yuan signing amount, but in recent years the alcohol market situation is not very good, gross profit margin also drops all the way. In the past, 40% of the gross profit margins were now reduced to 10%. If we do not change the commodity structure of wholesale business, we will have no way out in the future. The above sources revealed.