Jiajiayue (603708) Interim Review: Building a Stronger Supply Chain Platform to Help New Regional Network Layout

Report the semi-annual report for 2019, reporting that the major companies achieved operating income of 72.

65 (+16.

68%) million yuan, net profit 2.

26 (+16.

85%) million, deducting non-net profit 2.

14 (+15.

75%) million, EPS is 0.

37 yuan, gross profit margin 21.

55% increased weekly.

In the second quarter, it achieved revenue of 34.

61 (+16.

69%) billion yuan, which is the same as the growth rate in the first quarter of 2019, and net profit after deduction is 0.

82 (+18.

45%) billion yuan.

The revenue growth rate of the new region, the gross profit performance has changed. Looking at Jiaodong region by region, the revenue growth rate of other regions in Shandong is 49.

23%, gross profit margin 17.

31% (+0.

61%); revenue growth rate in Jiaodong area is 12.

29%, gross profit margin 17.

29% (flat); the new region’s revenue growth rate, gross profit margin, etc. have replaced traditional regions; the new region’s revenue accounted for 15%, about 11% in the first half of 2018, and the regional revenue structure continued to optimize.

The company continues to accelerate network development, actively expands new markets such as Zhangjiakou and surrounding areas, and western Shandong, and further improves the mature regional network layout.

The total number of reported companies is 758, with 40 additional stores (including 11 already opened stores in Jiayue, Hebei), 18 additional hypermarkets, 19 general supermarkets, and 3 other 天津夜网 formats.

In 2019, we plan to open 100 new stores and report a series of 38 companies that have signed lease agreements.

Continue to optimize the company’s efficiency, build a stronger supply chain platform, help new regional development companies actively build logistics centers, form a three-dimensional logistics network that supports the expansion of chain business, and arrange fresh processing bases to improve the post-standardized processing capacity of agricultural products and the supply chaineffectiveness.

Optimize category procurement, increase SKUs, improve quality and productivity, and build a stronger supply chain platform.

Began to start the SAP system to enhance the digital capabilities of enterprises; the theater structure was gradually established and improved to improve decision-making efficiency.

In April 2019, 56 stores were added in the western region to further promote the partnership mechanism and improve staff efficiency. At present, the total number of company partners’ pilot stores is 89.

The company continues to adjust and consolidate the density of traditionally advantageous regions to support the steady development of revenue, while accelerating the layout of new regions and optimizing the revenue structure of each region.

Coupled with the partner system incentive to accelerate the optimization of new store incubation; adjust the product mix to meet customer consumption needs, increase the expansion of store revenue and increase thick net profit; it is expected to continue to accelerate the new regional network layout. The company’s revenue is expected to continue to maintain high-quality growth.The annual EPS is 0.



96 yuan, maintaining the company’s “highly recommended” level.

Risk warning: macroeconomic risks; downside consumption risks; the company’s new store openings are less than expected.