The English version is AI translated.


07.2022 Group Briefing

Pacific Chongguang department store held the 2022 regular meeting of shareholders

Fe SOGO Department Stores / caochunhui
        Pacific Chongguang department store (hereinafter referred to as SOGO) held the 2022 regular meeting of shareholders on June 14, at which the general operating situation, operating performance and future outlook of the previous year were announced. In 2021, the turnover was ntd4.2 billion, and the net profit before tax increased by 20.7% to ntd1460 million. The cash dividend ntd1.21 will be paid, an increase of ntd0.11 compared with last year. The shareholders present highly affirmed the excellent business performance.

        From mid May to July 26, 2021, Taiwan launched a three-level epidemic prevention alert. As the central epidemic command center stipulated that "the catering industry should be brought out, shopping malls and supermarkets should strengthen the flow control, and people should be urged to buy less and more, and buy enough at one time", the Q2 and Q3 performance of the department store industry in Taiwan showed negative growth. Among them, the sales volume of residential business opportunities driven by the epidemic, such as home appliances, household appliances, massage chairs, supermarkets, etc., has increased significantly in 2020. Therefore, in 2021, except for the supermarket performance, which continued to rise by 2.1%, other business types were flat; Under the dual influence of the inconvenience of going abroad and the continuous increase in the price of brands, the growth rate of international boutiques is as high as 24%; As for men's and women's clothing products, due to the rise in the price of raw materials, the disorder of production and supply chain, and the reduction of social activities under the epidemic, consumers' willingness to purchase decreased, and their performance was frustrated. The men's and women's clothing industry declined by 10.5% and 12.5% respectively; The turnover of culture and education also declined by 27% compared with the previous year, which was caused by the withdrawal of Chengpin bookstore from Zhongli store at the end of August 2020 and Zhongxiao store at the end of September 2021.

        During the epidemic period, SOGO continued to introduce commodities and brands such as living and home furnishings, health, sports, leisure, etc. that consumers attach importance to. At the same time, it actively developed digital marketing strategies, improved self-supporting e-commerce shopping, contactless sales and food delivery services, and invested in the environmental transformation of stores, strengthened commodity power, and introduced and adjusted 552 cabinets of new brands, hoping to contribute to the growth of performance in 2022.

        The Q4 epidemic eased in 2021, and the government issued ntd5000 revitalization vouchers in October, which became the driving force of performance growth in the quarter. Sogo seized the opportunity to use app and digital marketing to deepen the penetration of publicity. At the anniversary celebration, it used the highly popular Doraemon series gifts to collect customers, and then worked together to promote through the eye-catching product portfolio. The overall performance of the 2021 anniversary celebration reached ntd11.33 billion, recording a growth rate of 4.8%. It is worth mentioning that as of December 31, 2021, seven stores in Taiwan have received a total of NTD 970 million revitalization vouchers, and the top three beneficiary industries are household appliances, cosmetics and sports.

        The mainland region closed the Chongqing metropolis store on May 31 this year to reduce losses, and accelerated the improvement of the revenue of Shanghai Xuhui store and Chongqing Jiangbei store, hoping to increase profits. The new shopping center Chongqing Longxin store is also planned to open in May next year, which will help the future operation expansion and performance growth of the mainland region.

        Fe SOGO Department stores has been deeply involved in E (environment), s (Society) and G (Governance) for a long time. Since the "first year of CSR" in 2015, it has won 114 CSR and ESG related awards at home and abroad. In response to the changes of the epidemic in recent years, we have made greater efforts to "care for colleagues", "care for customers" and "protect the earth" in response to the carbon reduction trend.

        ● environmental orientation: SOGO has won the silver award or above of the "National Enterprise Environmental Protection Award" for three consecutive years. In 2021, it was awarded the "honorary environmental protection enterprise award" and entered the Taipei presidential palace to receive praise, and delivered a speech on behalf of the award-winning enterprises, setting a precedent for department stores.

        ● social orientation: during the epidemic, SOGO is committed to giving employees "peace of mind". In 2021, due to the success of cost saving, the profit increased slightly, and the year-end bonus of SOGO was paid as usual. From January 2022, all employees were given a salary increase of about 4% to boost employee morale. During the peak of the epidemic in 2022, SOGO took the initiative to provide employees with full paid isolation leave, so that employees who unfortunately contracted the epidemic can rest assured. According to the survey released by "yes123 job search website" on May 25, 2022, only 8% of domestic enterprises provide full paid isolation leave. "Do the right thing" SOGO will never be absent!

        ● Governance: SOGO has achieved success in epidemic prevention, creating a reassuring and safe store, and customers' consumption will be reflected in operational performance. Net profit before / after tax, earnings per share (after tax) and return on shareholders' equity have all grown for four consecutive years; Among them, EPS reached ntd1.40, with an annual growth of more than 9.37 times, and the after tax surplus increased by 9.53%.

        In response to the international sustainability trend, under the decision of the enterprise sustainability Committee, it refocuses and plans the 2030 sustainability development strategic blueprint, focuses on the three major aspects of "energy conservation and emission reduction", "sustainable consumption" and "circular business model", and integrates with the United Nations sustainability development goals (sdgs), and jointly carries out a number of ESG action plans with operating sites, suppliers and consumers in Taiwan.

        Facing all kinds of challenges in the future, SOGO Sophia C.W. Huang chairman encouraged his colleagues with "if you go the right way, you are not afraid of going far", and hoped that SOGO would become a "retail benchmarking enterprise that keeps pace with the times, is friendly and friendly, and provides a comprehensive fashion life experience for the public".


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