Far Eastern Department Store 2019 General Shareholders’ Meeting

        The Far Eastern Department Store held its 2019 Annual General Shareholders’ Meeting at the Taipei Hero House auditorium. The Far Eastern Department Store retail system’s (including Far Eastern Department Store and the reinvested Pacific SOGO Department Store, A-Mart, city' super, etc.) combined turnover was NT$116.4 billion in 2018, the net profit after tax was 1.65 billion yuan, the earnings per share was 0.94 yuan, the cash dividend per share was 0.85 yuan, and the earnings distribution rate was 90%. Among them, parent company Far Eastern Department Store's turnover of 44.28 billion yuan and operating profit of 2.09 billion yuan set a new record in 52 years, with operating profit exceeding 2 billion yuan, an 11% increase over last year, and has more than doubled in the past decade.
The reinvested Pacific SOGO Department Store, A-Mart, city' super also achieved great performance, with pre-tax net profit of Pacific SOGO Department Store growing by nearly 20% and A-Mart’s operating profit also increased by over 20% and focuses on e-commerce, plans to build multi-platform and multi-store delivery mode of operation to gain revenue through clicks and mortar.
In 2018, the growth of department stores market slowed down under the influence of strong competition and changeable consumer demand. Far Eastern Department Store retail group retailed intelligently with new technology layout, accelerated the digital transformation, and its performance grew against the trend. The department stores industry was particularly eye-catching, Far Eastern Department Store and Pacific SOGO’ s performance continued to increase, creating excellent business performance in the department store market downturn.
Business Strategy: Far Eastern Department Store with Digital Evolution Can Satisfy Customer Digital Experience
Far Eastern Department Store embraces digital transformation, focusing on "digital operation, digital experience, digital management" to create digital Department stores, providing customers with unique digital consumption experience. Through the construction of POS, APP and CRM three core systems, Far Eastern Department Store has a better understanding of consumers’ needs, and through "4R Marketing" - Right Time, Right Way, Right Person, Right Service, let consumers receive the right information in the right time and way, and experience exclusive personalized services when they come to Far Eastern Department Store, such as: convenient intelligent parking, recommendation of popular new products on the e-boards, APP notifications of product concessions, mobile phone direct payment of parking fees... Through the digitalization of consumption, we can provide customers with intimate and considerate shopping experience.
In addition, Far Eastern Department Store has set up 46 project organizations to build more than 40 digital systems and mobile offices, which have led to a 17% reduction in operating costs and an annual increase in operating profits of about 500 million yuan, which is equivalent to the operating profits created by a 10 billion-dollar revenue store.
Expansion plan: Far Eastern Department Store retail system will expand the retail territory with three new stores.
Far Eastern Department Store, which has been working in the field for 52 years, has been transforming, rebuilding and innovating with the times, and has maintained a strong growth capacity. In the second half of this year, an intelligent shopping mall that leads fashion will be open to provide innovative digital experience and services to meet consumers' imagination and demand for digital shopping.
A-Mart and city' super will also open new stores in Taichung City and Taipei respectively. The Far Eastern Department Store retail system will have three more stores in Taiwan to continuously expand the retail layout and scale. In terms of cross-strait layout, Far Eastern Department Store will not only strengthen the steady growth of existing stores, but also seek suitable M&A targets and investment opportunities, continue to develop new markets and increase market share.
Fulfilling Corporate Social Responsibility: 336 Public Welfare Activities and Local Public Welfare
This year marks the 70th anniversary of the Far Eastern Group. Adhering to the spirit of the Group's long-term concern for public welfare, Far Eastern Department Store has spared no effort in investing in public welfare. FEG won nearly 20 awards at home and abroad in 2018 CSR, and won the national CSR honor- the National Sustainability Development Award of the Executive Yuan.
In terms of environmental sustainability, Far Eastern Department Store uses manufacturing thinking to examine the energy efficiency of service industry. It saves 16.38 million degrees of electricity in four years, and it is the first department store in Taiwan to build a real-time energy performance indicator platform to save electricity by science and technology.
In terms of social feedback, 336 public welfare activities of caring for women and children and disadvantaged families were held in 2018 with the frequency of almost one activity a day to devote themselves to local public welfare. Far Eastern Department Store joined hands with the public to attach importance to environmental protection, public welfare and health, moving towards a sustainable and better life.