Friday, November 27, 2020
 
Columnist
Martin Hennecke
 
CHRISTINE
HKEx Stock Code : 01210 
 
Corporate Profile
The Group is a leading bakery chain operator in the PRC. The Group's multichannel retail network primarily consists of good neighbor stores, subway stores and flagship stores.

Business Review - For the year ended December 31, 2012

The Group's operating revenue was approximately RMB1,388,032,000 in 2012, representing an increase of approximately 0.27% as compared to approximately RMB1,384,351,000 in 2011. The slight increase in revenue was mainly attributable to the opening of new retail outlets. The total number of retail outlets increased by a net of 138 from 898 in 2011 to 1,036 and the same store growth rate in sales of the Group's original retail outlets was -2.91%.

In terms of geographical locations, sales revenue from the Group's retail outlets in Shanghai accounted for approximately 62.57% of the Group's total revenue for 2012, representing a decrease in percentage as compared to 65.40% in 2011. However, Shanghai was still the main source of the Company's revenue and profit. Existing outlets were generally located in the old town where the market was relatively mature. In addition, competition was keen and the new outlets opened this year have not yet reached the scale of economy, resulting in a decrease in turnover of RMB36,743,000 for 2012 as compared to 2011, representing a decrease of approximately 4.06%. Adjustment to the strategy in 2011 continued in 2012 was to increase the overall contribution to the turnover and enhance the business development in Jiangsu and Zhejiang provinces. By increasing efforts made in sales network expansion and marketing in Jiangsu and Zhejiang provinces, revenue from these provinces increased by approximately RMB25,667,000 and RMB12,845,000, respectively, representing an increase of 8.07% and 7.97%, respectively, as compared to those of 2011. In 2012, the Company established the first outlet in Anhui province and recorded a revenue of approximately RMB1,913,000 only for the first year since its operation.

In terms of product categories, except for other products such as konjac jelly and GABA drinks, the Company recorded a decrease in operating revenue from each product category in 2012 as compared to that of 2011, among which: revenue from sales of bread and cakes decreased by RMB10,465,000 representing a decrease of 1.09%; revenue from sales of moon cakes decreased by RMB11,613,000 representing a decrease of 6.30%; revenue from sales of pastries decreased by RMB8,410,000 representing a decrease of 4.73%; and revenue from sales of other products increased by RMB34,169,000 representing an increase of 55.05%, which benefited from the introduction of beverages including coffee, tea with milk and juice as planned.

In terms of payment methods, the Company's revenue in retail outlets was transacted either in cash (and bank cards) or through redemption of paper coupons (and pre-paid cards). In 2012, revenue settled by cash (and bank cards) amounted to approximately RMB671,891,000, accounting for 48.41% of the total revenue, representing an increase of approximately 3.97% as compared to RMB646,228,000 in 2011. Sales revenue through redemption of paper coupons (and pre-paid cards) eased and amounted to approximately RMB716,141,000 in 2012, accounting for 51.59% of the total revenue, representing a decrease of approximately 2.98% as compared to RMB738,123,000 in 2011.

Business Outlook - For the year ended December 31, 2012

Market Outlook

As the bakery market grows in the PRC every year, more and more domestic and foreign peers enter the industry and the competition is getting keen. Although, according to estimates made by some research institutes, the compound annual growth rate of the bakery market in the PRC would reach 13% between 2009 and 2013 and, from an optimistic view, the overall growth would achieve 45% between 2013 and 2017, staff costs and rentals will continue to the industry; therefore, branding, technology and service are the key to survive while innovation and differentiated operations would be a key to success.

R & D Prospects

On top of its taste, trendiness weighs as much for a bakery product. In 2013, the Company will operate its retail outlets using a new business model and cooperate with overseas professional bakers in respect of bakery art and techniques so as to make the best of the new operating strategy and the decoration of the outlets. With the focus on various product collections, the Group will take advantage of the global product trend, following the modern trend that combines healthiness, chic, baked-to-order concept and cost-efficiency.

Source: Christine Int'l (01210) Annual Results Announcement
Chairman Tien-An Lo Issued Capital (shares) 1,010M
Par Value HKD 0.00001 Market Capitalisation (HKD) 1,172M
 
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