In July, 10 listed companies announced one after another that they had applied to the relevant government departments for the qualification of duty-free products. They are: Bailian (600827. SH), Lingnan holding (000524. SZ), ewwu (000501. SZ), Dashang (600694. SH), Eurasia Group (600697. SH), Nanning Department Store (600712. SH), youa shares (002277. SZ), Zhongbai group (000759. SZ), Bubugao (002251. SZ), Dongbai group (600693. SH).
Relevant enterprise personages from Nanning Department store, Zhongbai group and Bailian stock told the interface news reporters that at present, the companys tax-free product qualification is only a preliminary application stage, and there is uncertainty whether it is approved. In the future, we will make information disclosure according to the requirements.
It is very normal for the whole retail enterprise to apply for tax-free license on a large scale. Jiang Han, a senior researcher at Pangu think tank, told reporters at the interface,
Application of department store listed companies
On June 9, Wangfujing announced that it had received the notice of the Ministry of Finance on the qualification of duty-free products of Wangfujing Group Co., Ltd., the controlling shareholder of Beijing Capital Travel Group Co., Ltd., granting the company the qualification of duty-free products and allowing the company to operate the retail business of duty-free goods. This is the first time that the tax-free retail business license has been officially approved since five companies such as China National immunity Corporation (CMAC) were licensed in the 1980s.
After Wangfujings share price soared due to tax-free brands, the concept of tax-free became one of the hot spots in the market, which also led to the growth of the army of tax-free concept stocks. Since July, companies applying for tax-free licenses have sprung up.
On July 15, Lingnan Holdings said that Lingnan group, the controlling shareholder of the company, was promoting the application for the qualification of duty-free products, and had formally submitted a request to the relevant departments of Guangzhou municipal government for supporting its application for business license of duty-free business. On the same day, the company said that it had applied to the government for the qualification of duty-free products.
On July 20, in order to optimize the companys business structure, enhance the competitiveness of the industry and increase new profit growth points, the controlling shareholder Dashang group submitted a request to the relevant departments of Liaoning Province and Dalian municipal government on supporting the company to apply for the operation qualification of duty-free products.
On July 21, Eurasia Group said that recently, the company submitted a request to the relevant departments of Jilin Province and Changchun municipal government to support the company to apply for the business qualification of duty-free commodities.
On July 23, Nanning Department store, youa shares and Zhongbai group announced on the same day that they had applied for the qualification of duty-free products, so as to enhance their competitiveness.
On July 24, Bubugao announced that it had submitted a request to the relevant departments of Hunan Province and Xiangtan Municipal Government on supporting the company to apply for the business qualification of duty-free commodities.
On July 25, Dongbai group said that in order to further optimize the structure of commercial retail business, Dongbai group had submitted a request to the relevant departments of Fuzhou municipal government on supporting the company to apply for the operation qualification of duty-free goods. At the same time, Lanzhou Oriental friendship real estate, the holding subsidiary of the company, also submitted to relevant departments of Gansu Province and Lanzhou municipal government about applying for the business qualification of duty-free products in Lanzhou center For instructions.
In terms of the proportion of revenue, most of the enterprises applying for duty-free brand licenses are department stores. Among the 10 companies mentioned above, only Lingnan holdings main business is travel agency operation, and the remaining 9 are department stores.
Taking the data of 2019 as an example, department stores of Dashang shares account for 56.64% of the companys revenue; the commodity circulation industry of Eurasian Group accounts for 81.17% of the revenue, of which clothing accounts for 40.56% and food and department stores accounts for 31.45%; EWU shopping center accounts for 69.82% of the revenue, and supermarkets account for 29.74%; Bailian stocks revenue in 2019 is 16.65 billion yuan, accounting for 33% of the revenue Quasi supermarkets accounted for 19.01% of the total income; wholesale and retail industry accounted for 88% of the high income; supermarkets accounted for 93.27% of the income of Zhongbai group, and department stores accounted for 5.28%; Nanning Department store retail accounted for 95.01% of the companys income; commercial retail accounted for 77.73% of Dongbai groups revenue.
Different from the above-mentioned companies which are mainly retail stores, Lingnan controlling shareholder has submitted a request to the Guangzhou municipal government to support its application for tax-free business license. In 2019, 86.60% of Lingnan holdings revenue is from travel agency operation, with revenue of 6.904 billion yuan, 12.17% of hotel operation and 0.92% of hotel management.
In addition, Hangzhou Jiebai (600814. SH) and supply and marketing Daji (000564. SZ) have recently clarified that: the company has not obtained the business qualification of duty-free products and has not applied for the tax-free license.
Can tax-free licenses save performance?
According to the first quarter data, Nanning Department Store achieved a revenue of 154 million yuan, a year-on-year decline of 67.77%, a loss of 39.09 million yuan, a sharp drop of 29879.46%; Zhongbai group achieved a revenue of 3.954 billion yuan, a year-on-year decline of 10.45%, a loss of 170 million yuan, a year-on-year decline of 739.94%; Wangfujing achieved a revenue of 1.52 billion yuan, a year-on-year decline of 78.79%, a loss of 202 million yuan, a year-on-year decline of 150.16%; Hangzhou Jiebai The company achieved a revenue of 1.079 billion yuan, a year-on-year decrease of 33.12%, a loss of 52300 yuan, a year-on-year decrease of 100.08%; Bubugao achieved a revenue of 5.516 billion yuan, a year-on-year decline of 1.83%, a profit of 100 million yuan, a year-on-year decline of 46.21%; Bailian shares achieved a revenue of 9.836 billion yuan, a year-on-year decrease of 30.94%, a profit of 26.5214 million yuan, a year-on-year decrease of 91.93%; the revenue of Hubei Wushang reached 1.292 billion yuan, a year-on-year decline of 72 In the first quarter, Lingnan holdings realized a revenue of 3.377 billion yuan, a year-on-year decrease of 17.46%, and a loss of 22.0318 million yuan, a year-on-year decrease of 143.78%; in addition, Lingnan holdings achieved a revenue of 671 million yuan in the first quarter, a year-on-year decrease of 63.07%, a loss of 61794000 yuan, a year-on-year decrease of 155.34%.
Up to now, Zhongbai group, Hubei Wushang and Lingnan holdings have issued the performance forecast for the first half of 2020, and they are all in the state of loss.
In the first half of this year, Zhongbai Group expects a loss of 60-80 million yuan, down 264.95% - 319.94% compared with the same period of last year. In the first half of this year, Hubei Wushang is expected to lose 40 million to 45 million yuan, down 106.67% - 107.50% compared with the same period last year. Lingnan holdings is expected to lose 120 million to 150 million yuan in the first half of the year, down 166.51% - 183.14% year on year.
At present, except Wangfujing, other department store license applications are still far away. Duty free goods have become the straw to save department stores performance losses? At present, there will be no direct effect in the short term.
Obviously, a tax-free licence is not something you can apply for. A person from a relevant department store listed company told the interface news reporter: as a department store industry, the commodities we operate coincide with duty-free shops, so we applied for this qualification. Department stores have the right to declare, but we dont know whether to approve or not. We apply for the qualification of duty-free products to the commercial departments of the government. We think it is very difficult to obtain approval. Wangfujing is a special case. If we want to implement the qualification in the whole country, we need to improve the methods and systems.
After the announcement of obtaining the license on June 11, Wangfujing announced on July 9 that it would invest in the establishment of a duty-free operating company with a registered capital of 500 million yuan to carry out duty-free business.
It is worth noting that with the companys share price doubled and skyrocketed, the relevant shareholders of Wangfujing reduced their holdings during this period.
On July 9, Wangfujing hit a record high of 79.19 yuan / share. On July 13, Wangfujing shares Tokyo Guorui Fund announced that it plans to reduce its holding of 15.525 million shares by means of centralized bidding, which is no more than 2% of the total share capital of the company. On July 14, Li Jie, the supervisor of Wangfujing company, insisted on 1700 shares of a company through centralized bidding. The price range of the reduction was 70.15 yuan / share to 70.16 yuan / share.
What are the real tax-free concept shares?
After 2017, the market share of the company has reached as high as 84% after the acquisition of shares of NISCO China and NISCO Shanghai. In addition, according to the public data, the duty-free market share of Hainan is 5%, and that of Zhuhai is 5%.
In terms of the types of duty-free shops, CMAC group mainly distributes in airports and border areas, while Zhuhai duty-free stores mainly focus on duty-free shops at ports. According to the public information inquiry, the company previously involved in the city duty-free shop was Zhongqiao duty-free. This time, Wangfujing will focus on the business of duty-free shops in the city.