On April 13, Chengdu Hongqi Chain Co.Ltd(002697) released the first quarterly report of 2022, the first convenience chain supermarket listed company in China’s A-share market. The quarterly report shows that the company achieved an operating income of 2.441 billion yuan (excluding tax), an increase of 7.99% over the same period last year, a value-added business income of 961 million yuan and a net profit attributable to the company’s shareholders of 122 million yuan. This is another record of the company’s revenue after its revenue hit a record high in 2021.
Faced with macroeconomic pressure, Chengdu Hongqi Chain Co.Ltd(002697) while practicing the high-quality development of improving quality and efficiency, it constantly strengthens the endogenous development power of the enterprise. The number of new stores goes hand in hand with the upgrading of old stores. Chengdu Hongqi Chain Co.Ltd(002697) shows the operation and management ability of high-quality enterprises in terms of realizing fine operation and improving management efficiency.
This ability is not only the inevitable result of the butterfly change of management efficiency, but also a Beijing Dynamic Power Co.Ltd(600405) spring for the sustainable growth of the company. In this regard, the industry believes that the performance of the first quarter of 2022 has made a “good start”, and the annual performance is expected to achieve a new breakthrough on this basis.
first quarter performance made a “good start”
Chengdu Hongqi Chain Co.Ltd(002697) 2022 first quarter report shows that the company achieved an operating income of 2.441 billion yuan (excluding tax) during the period, an increase of 7.99% over the same period last year. In addition, the value-added business income was 961 million yuan. In terms of financial data, the net profit attributable to the company’s shareholders was 122 million yuan, a year-on-year decrease of 1.58%. The decrease in net profit was due to the year-on-year decrease of 32.59% in the investment income in the consolidated income statement during the reporting period (the net profit realized by investing in Xinwang bank and Gansu Hongqi was 21 million). After deducting this part of investment income, the net profit attributable to the shareholders of the company is 100 million yuan, with a year-on-year increase of 9.12%.
As the “blood” of high-speed operation of enterprises, the quality of cash flow determines whether enterprises can operate well and realize a virtuous cycle in supply and marketing to a certain extent Chengdu Hongqi Chain Co.Ltd(002697) the first quarterly report showed that the company gradually cleaned up, integrated and adjusted the stores and acquired stores that could not be improved in the short term in the surrounding passenger flow environment at the end of last year, and achieved good results. In the first quarter, the sales of stores increased steadily and the net cash inflow increased.
Adhering to the original mission of “serving the public and facilitating the people”, the benign growth of Chengdu Hongqi Chain Co.Ltd(002697) can be seen from the 2021 annual report.
In 2021, Chengdu Hongqi Chain Co.Ltd(002697) achieved an operating revenue (excluding tax) of 9.351 billion yuan, a year-on-year increase of 3.29%, a record high; The net profit attributable to the parent company was 481 million yuan, a slight decrease of 4.66% year-on-year; Excluding the impact of leasing standards, the company realized a net profit attributable to the parent company of 518 million yuan in 2021, with a year-on-year increase of 2.61%. In terms of new stores, the company had a net increase of 266 stores in 2021, and the number of stores had reached 3602 by the end of last year.
While achieving good results in operating revenue and net profit in 2021, Chengdu Hongqi Chain Co.Ltd(002697) puts forward higher requirements for the development in 2022. According to the financial report of the board of directors, the net profit of the company will exceed RMB 10 billion in 2021 and strive to achieve a breakthrough of RMB 10 billion in 2022. The beautiful performance in the first quarter of 2022 has laid a solid foundation for the realization of the annual performance target.
On April 1, Everbright Securities Company Limited(601788) released the annual report of Chengdu Hongqi Chain Co.Ltd(002697) 2021, commenting that ” Chengdu Hongqi Chain Co.Ltd(002697) this annual report has slightly exceeded external expectations. On the whole, Chengdu Hongqi Chain Co.Ltd(002697) presents a steady development trend and maintains the rating of ‘overweight’.”
development will reach a new level
As China’s first A chain market to facilitate the chain supermarket listed companies, after years of development, Chengdu Hongqi Chain Co.Ltd(002697) has become “cloud platform big data + commodity + community services + finance” Internet plus modern technology chain enterprises.
For a long time, Chengdu Hongqi Chain Co.Ltd(002697) has always focused on the word “convenience”, and fully considered the needs of consumers in the location and layout of stores, which are located near communities and office buildings. The company tries its best to create a “15 minute economic circle”, that is, the “three 5” service concept: 5 minutes to the store, 5 minutes to buy and 5 minutes to go home, without waiting for delivery, so as to bring consumers a more “convenient and fast” shopping experience, which is not affected by community group buying.
In terms of store expansion, Chengdu Hongqi Chain Co.Ltd(002697) deeply cultivates the convenience store industry, builds a deep foundation for development by relying on the advanced Hongqi cloud big data platform, strong distribution capacity, solid supply chain and mature store operation and management ability, and further highlights the regional scale advantage of the enterprise. In 2021, the company will continue to expand its stores in some areas of Sichuan while continuing to cultivate Chengdu. In addition to store expansion, the company further improved store selection, supply chain, logistics system and information construction to make Chengdu Hongqi Chain Co.Ltd(002697) more competitive.
From the perspective of the subdivided fields of national convenience chain supermarkets, Chengdu Hongqi Chain Co.Ltd(002697) is in the forefront of China’s top 100 supermarkets in terms of business scale, profitability and return on assets. The company has achieved remarkable results in promoting “strengthening the fine management of stores” and “sinking service”. It can be seen from the company’s annual report in 2021 and the first quarter report in 2022 that Chengdu Hongqi Chain Co.Ltd(002697) performance capacity will be further released.
While developing continuously, Chengdu Hongqi Chain Co.Ltd(002697) also knows that enterprises come from society and naturally return to society. In recent years, Chengdu Hongqi Chain Co.Ltd(002697) has made frequent actions in helping the needy, donating students and helping rural revitalization. Up to now, Chengdu Hongqi Chain Co.Ltd(002697) has donated hundreds of millions of yuan to the society; Cao Shiru, Secretary of the Party committee, chairman and general manager of the company, donated more than 20 million yuan to the society.
Especially since the outbreak of covid-19 pneumonia, Chengdu Hongqi Chain Co.Ltd(002697) all staff have always adhered to their posts, and more than 3000 stores have not been closed, out of stock or raised prices. They have spared no effort to ensure market supply and assumed due corporate social responsibility at the most critical moment. In September 2020, Chengdu Hongqi Chain Co.Ltd(002697) won the title of “national advanced collective against covid-19 pneumonia”.
Chengdu Hongqi Chain Co.Ltd(002697) is also well received in promoting local economic development and bravely assuming social responsibility. In 2021, the company won the National May Day Labor award, Sichuan Charity Award “the most caring donation enterprise” and other honors. In June 2021, Chengdu Hongqi Chain Co.Ltd(002697) chairman Cao Shiru was awarded the title of “national outstanding communist”. In 2022, Chengdu Hongqi Chain Co.Ltd(002697) won the “top ten leading enterprises in Sichuan in 2021”, and chairman Cao Shiru won the “top ten economic influential figures in Sichuan in 2021” again.
In the future, Chengdu Hongqi Chain Co.Ltd(002697) will continue to strengthen the strategic layout of stores in Sichuan. When the time is right, we will not rule out strengthening cooperation with high-quality enterprises inside and outside the province. Taking the upgrading of store services as the starting point, the company continues to upgrade, innovate in science and technology, increase investment in rural revitalization, better serve the society and repay the majority of consumers and investors. As the official supplier of the 31st Summer Universiade in Chengdu, the company will actively make preparations for the success of the Universiade.
Analysts believe that Chengdu Hongqi Chain Co.Ltd(002697) as a leading retail enterprise in Southwest China, it contributes to the construction of Chengdu Chongqing dual city economic circle and Chengdu’s construction of a park city demonstration area practicing the new development concept, and has broad development prospects. Text / Jin Yifeng
