annual results - 2020 - Golden Eagle Retail

ANNUALRESULTS

2020

Operating Data

511 559 556 797

2,423

1季度 2季度 3季度 4季度全年合计

3.13.9 3.8

5.4

16.2


23 35

44 48

150


3

Highlights in 2020

• Effectively responding to COVID-19, grasping the market recovery trend, achieved steady recovery in operational performance

• Retail GSP in 3Q2020 and 4Q2020 increased by 4.1% and 11.3% yoy, respectively. Retail EBITDA recorded a yoy increase of 3.9% in 2020

Retail GSP

16.2BRMB

Foot Traffic

RMB’B

Retail GSP

RMB'M

Retail EBITDA

YOY-22%

YOY+3%

YOY+11%

YOY+26%

YOY+4%

YOY-7%

YOY-37%

YOY-1%

YOY+4%

YOY+11%

YOY-51%

YOY-21%

YOY-8%

YOY-3% YOY

-21%

Pressing on steady and high-quality development,Achieving steady recovery of sales and foot traffic

People'M

Foot Traffic

Retail EBITDA

2.42BRMB 150.3M

1Q 2Q 3Q 4Q FY2020 1Q 2Q 3Q 4Q FY2020 1Q 2Q 3Q 4Q FY2020

Business Review

Response to COVID-19

• Operate stores in an orderly manner to protect its employees during the

pandemic while ensure the steady supply of livelihood supplies

• Carry out various public welfare activities to fulfill corporate social responsibility

Social Responsibility Support for Merchants

Resuming work in an orderly manner, caring for employees,

and fighting against the pandemic

Ensure supply, price stability and safety

Online & offline omni sales channel with home delivery service

Organising various public welfare activities to bring positive influence to the society

• Adhering to the concept of mutual assistance, mutual trust and win-win situation

with society, the Group launched various measures and policies to support

merchants and business partners overcame the difficulties together

5

4000+ Merchants

with total subsidy amounted to RMB 80.0M

Reduced rent by 50% during the

suspension of business

Adjusted rental prepayments from

quarterly to monthly to ease the

rental pressure of rental tenants

Shortened the settlement periodto

concessnaire merchants

Lowered the guaranteed sales target

(合同保底 ) fo r concess iona i re

merchants

Waived property managementfee dur ing the suspension o fbusiness

Provided extra support to merchantswho were facing difficulties and/orforced to suspense business duringthe epidemic outbreak

Rent Reduction by 50% Installment Payment

Lower the Guaranteed Sales Target

Waive Property Management Fee Extra Support

Shorten Settlement Period

To be amortised over the term of the respective tenant leases, mostly ranging from 1 year to 3 years*

*

6

Stable Operation - Maintained Sound Financials

（RMB'M） 2018 2019 2020

Cash and Near Cash 6,463.9 5,804.4 6,698.4

Total Borrowings 8,346.2 6,728.0 6,245.3

— due within 1 year 1,715.8 272.6 3,786.6

— due after 1 year 6,630.4 6,455.4 2,458.7

净债 1,882.3 923.6 -453.1

BB+Stable

Sound Credit Ratings

BBStable

Solid Financial Indicators

Ba2Stable

@ Upgraded to BB+ in November 2020

Changed the Outlook to “Stable” in October 2020

@ *

Gearing Ratio

Net (Debts) Cash （1,882.3）（923.6） 453.1

Total Assets 24,236.4 22,942.3 24,083.1

Total Equity 6,319.4 6,954.0 7,791.4

*

34.4%29.3%

25.9%

0.0%

20.0%

40.0%

2018 2019 2020

7

High-quality Development, Turn Adversity into Opportunity - Remodel Merchandising

8%

Occupancy Rate

2,029Upgraded/Adjusted Brands

278KAdjusted Area

sq.m.

increased to

YOY growth in 2H2020

Continuous Introduction of Debut Stores and Benchmark Brand Flagship Stores during the Pandemic

representing 24.9% of total operating counter area

95%

8

Leveraged on the store’s scale, continued to enrich the

merchandise and amenities offer. Debuted brands such as

Fnji, Mosso, Honglin and first Kidswant 8G Store in China to

meet the high-quality lifestyle needs of middle-class families

and young customers

Nanjing Golden Eagle World Store

Upgraded cosmetic brand portfolio with debuts of Lancôme,

Armani, Kiehl's, shu uemura and Clarins in Jiangning region;

optimised shopping route to release public space for leisure,

young consumers and social gathering purposes and to

cater for metro foot traffic; and uplifted the appearance of

façade and outdoor area

Nanjing Jiangning Store

Differentiated merchandise offerings of Blocks A and B to

synergise foot traffic. Block A introduced benchmark brands

such as IWC, MAC to uplift and solidify the market

leadership position while Block B introduced talk-of-the-

town brands such as THE COLORIST, Huo Feng Xiang (火

凤祥) and Shao Jiang Nan, etc.

Xuzhou Store

High-quality Development, Turn Adversity into Opportunity - Upgrading of Existing Stores

Upgrading Brands, Enriching Experience Related Business Formats

9

Debuted brands such as IWC, APM, CPB, UGG, Li Ning in

Yancheng city to solidify its market leading position; and

optimised shopping route in F&B area and built a talk-of-

the-town F&B zone to attract young customers

Yancheng Store

Debuted Armani, Channel and POPMART; and continued to

upgrade sports brand section, gross floor productivity of

Nike Beacon 550 store and Adidas MEGA 1 store increased

by 28% and 26%, respectively, after the store

upgrades

Kunshan Store

Built distinctive talk-of-the-town trendy zone, gross floor

productivity of the adjusted area increased by 50% yoy;

and introduced popular light F&B brand Bco (豆库) and

city’s living room S•King KTV which became Check-In Hot

Spots in the city

Yangzhou New City Centre

High-quality Development, Turn Adversity into Opportunity - Upgrading of Existing Stores (Cont'd)

Upgrading Brands, Enriching Experience Related Business Formats

10

Store Revamp to Uplift Shopping Experience

Nanjing Xinjiekou Store

The B1F of Block A commenced fully operation since 30

October 2020. It is directly connected to the Xinjiekou

Metro Station. The area housed young and talk-of-the-

town brands such as Holiland, M&G Shop, HUAWEI,

OTHER TEA and Ku Yue Chao Wan (酷乐潮玩) etc.

B1F of Block B completed its upgrade during the year and

debuted Long Ji Shan Cheng Tang Yuan (龙记山城汤圆), Kou

Kou Hui Lan (口口回兰), Wong Lo Kat (王老吉), Man Mai Zuo (满麦坐), Chu Shang Han Pin (楚上汉品) in Nanjing or Eastern

China region. Gross floor productivity of the adjusted area

increased by 20%. In addition, debuted well-known F&B Banu

(巴奴) in Nanjing which was well received by the Nanjing public.

The underground walkway connecting the basements of

Blocks A and B is expected to be opened on 1 May 2021.

The walkway not only connecting Block B with Block A, but

also connecting Block B seamlessly with Xinjiekou Metro

Station which with significant foot traffic

High-quality Development, Turn Adversity into Opportunity - Upgrading of Existing Stores (Cont'd)

11

Seek Innovation, Turn Adversity into Opportunity - Innovative Marketing Events

24th Anniversary (4.17-4.19 3 days) 520 Valentine's Day (5.20 1 day) VIP DAY (7.17-7.19 3 days)

YOY growth of 27.8%

GSP RMB270MYOY growth of 47.0%

GSP RMB100MYOY growth of 35.3%

GSP RMB240M

Chinese Valentine's Day (8.25 1 day) Black Friday (10.30-11.1 3 days) New Year's Eve (12.31 1 day)

YOY growth of 30.2%

GSP RMB180M

YOY growth of 33.8%

GSP RMB280M

YOY growth of 12.5%

GSP RMB90M

The Group's chain stores organised various young, interesting and creative PR events to stimulate foot traffic and consumer purchases

12

Strategic Partnership with Kweichow Moutai

To bring quality products to Golden Eagle high-net worth VIP members

Became regional core strategic partner in the first year

Sold bottles of Moutai in 2020270K

Coverage Golden Eagle’s businesses and Moutai’sproducts to develop and build markets together

Seek Innovation, Turn Adversity into Opportunity - Strategic Brand Partnership

Jointly build a benchmark Moutai Cultural and Experience Hall

1

2

3

Serve and cultivate Moutai fans at all ages toachieve breakthroughs together

13

New Businesses to Boost Returns- G·Mart + 7-Eleven Convenience Stores

G·Mart Sales Improved Significantly 7-Eleven Stores Profitability Improved

GSP increased by 46% yoy

Gross Profit grew by 43% yoy （Entered into sound operation stage , well prepared for rapid expansion)

Overall net profit margin grew by 7.7% yoy

Commodity gross profit margin

improved from 31.0% to 33.5%

Staff Cost Rate reduced

from 12.5% to 10.6%

Wastage and Obsolescence Rate

declined from 4.2% to 3.7%

Investment in single-store renovation and equipment reduced by 10%

Investment in single-store internet and IT system reduced by 20%

Optimisation ofSupply Chain

New ProductDevelopment

Promote the integration of logistics and

warehouse

Refine OperationManagement

Streamline HR Structure

Operation Capability Investment Cost

Optimisation of Supply Chain

14

Digitalised Upgrade of Jinying.com

The merge of two mobile Apps “goodee mobile App (掌上金鹰)” and “Jinying.com (金鹰购)” in November 2020

Daily traffic before the merge

70K

Daily Trafficafter the merge

120K

New Businesses to Boost Returns- Jinying.com（金鹰购）

Full Year Sales

Online Flagship Stores and Home-delivery Business

Launched since September 2020

7 online flagship stores achieved a

total GSP of RMB22.35M in the

4Q2020

Online Flagship Store

Available across the Group’s 30 retail

stores and 19 G·Marts

Maintained a high-speed yoy growth

of 227% from September 2020 to

December 2020

Home-delivery Business

Full Year Sales

yoy growth of 71.5%

Platform GMV

RMB479M

Creating a One-Stop Integrated Service Platform to Enhance the Omni Channel Consumption Experience of Golden Eagle VIP Members

•

•

•

•

FuturePlan

Dual Asset-Light and Asset-Heavy Development Strategy - Asset-Light Model

ShaanxiRegion • With the help of Golden Eagle's mature business

operation, its comprehensive domestic and

international brand resources and distinctive self-

operate business contents to create a high quality

commercial project. Management companies will be

formed to account for the revenue/profit sharing with

project owners

商业模式

• East China region

(Jiangsu, Anhui, Zhejiang and Fujian)

• Guangdong, Hong Kong, Macau, Great Bay Area

• Shaanxi region

发展范围

Asset-Light Model

Region of Development

16

East China Region

Jiangsu AnhuiZhejiang Fujian

Guangdong Hong Kong

Macau Great Bay Area

Project Development:

• Provide consultation services to quality business

partners on conducting accurate project research,

formulating precise operating strategy and integrating

business resources so as to achieve project owner’s

commercial real estate development goals

Consultation:

• Provide comprehensive consultation and management

services from the early-stage of position strategy,

project design and merchandising to the later stage of

project construction, construction control and project

launch, marketing and promotion strategy

Operational Management:

17

Metro Commercial Project GE66 Zhenjiang Project

In June 2020, the Group entered into its first asset-lightproject in Jiangsu province, Nanjing GE66 with a totalGFA of 26.3K sq.m.. The project is located right abovethe Metro station connecting Metro Lines 1 and 5 atJiangning Nanjing district. Project GE66 will be positionedas a landmark centred on “Trends” and “Health” and isscheduled to be opened in July 2021.

In January 2021, the Group newly signed Zhenjiang DaxiRoad project, which is located in the heart of Zhenjiangcity. The project is intended to be developed into a largescale retail centre with total GFA of 120K sq.m. which tocreate new defined commercial space for Zhenjiangconsumers.

Partially opened for operation on 6 February 2021, theremaining area of 28.2K sq.m. is expected to commenceoperation in October 2021. The project with total GFA of34.9K sq.m. is located at interchange stations of MetroLines 1 and 2, where the core commercial district of thecity is located. The project is expected to bring a newway of life to the citizens of Xuzhou

XI Jin Du (西津渡）Historical and Cultural Protection Blocks

Project Location

Dual Asset-Light and Asset-Heavy Development Strategy - Asset-Light Model (Cont'd)

The first metro commercial project in HuaihaiEconomic Zone —「Golden Eagle•Shangjie」(金鹰.上街）

Nanjing GE66 Zhenjiang Daxilu Project

18

Nantong Golden Eagle World

In the forthcoming years, the Group's Golden Eagle World projects in Nantong, Changzhou, and Changchun, as well as Kunshan Phase II and Yangzhou Jiangdu Phase II

projects will be gradually launched in leased or self-owned properties. These projects will add a total GFA of 731K sq.m. to the Group’s lifestyle centre portfolio. Along with the

surrounding luxury hotels, offices and residences, large-scale commercial complex projects will integrate leisure shopping, commercial offices and community lifestyle into a full

life cycle ecosystem, attracting high-end customer traffic for the Group's operation, and ultimately driving sales growth to the Group.

Area: 197,000 sq.m. Launch Date: 2023Kunshan Phase II Area: 78,000 sq.m. Launch Date: 2022

Dual Asset-Light and Asset-Heavy Development Strategy - Existing Asset-Heavy Projects

Changzhou Golden Eagle World Area: 156,000 sq.m. Changchun Golden Eagle World Area: 220,000 sq.m. Yangzhou Jiangdu Phase II Area: 80,000 sq.m.

19

Upcoming New Stores

Upcoming new store GFA (sq.m.)Owned / Leased

/ Managed2021 2022 2023

2024 andonwards

1 GE 66, Nanjing Managed 26,308

2Metro Commercial Project, additional area for the two stores, Xuzhou

Leased 34,886

3 Kunshan Phase II, Suzhou@ Leased 78,000

4 Nantong, Jiangsu@ Leased 197,000

5 Zhenjiang, Jiangsu@ Managed 120,000

6 Kaiyue Changzhou, Jiangsu@ Leased 156,000

7 Jiangdu Phase II, Yangzhou@ Owned 80,000

8 Changchun, Jilin@ Owned 220,000

Total 912,194 61,194 78,000 197,000 576,000

% GFA Increase 2.4% 3.0% 7.4% 20.2%

% of Owned Properties (GFA) 61.0% 59.2% 55.1% 54.6%

% of Owned Properties and Properties

Leased from Related Parties (GFA)93.1% 93.3% 93.8% 91.3%

2021 2022 2023 2024

1.3 1.7 2.3 2.3

0.3 0.5 0.5 0.3

1.0 1.2 1.8 2.0

*

Estimated Capex. Cap (RMB ‘B)

* Excludes Liyang store, Jiahong and Lianyungang Supermarkets, Changzhou and Yancheng Aquariums, and 7-Elevenconvenience stores with total GFA of 99,084 sq.m.

@ In the format of comprehensive lifestyle center.

2,511,058(as at 31 December 2020)

- Capex. for PUD for Sale

- Capex. for Store Properties

YunnanProvinceKunming

ShaanxiProvince

Xi’an JiangsuProvince

AnhuiProvince

Shanghai

1

1

2

15 12

After the roll out, Golden Eagle will have 36 stores throughout China, with GFA of approximately 3.5M square meters

1

2

1

1

11

12

2

1

13

4

Xuzhou

Suqian Yancheng

HuaibeiHuai’an Taizhou

Yangzhou

Danyang

Nanjing

Kunshan

Shanghai

1

22

Nantong

1

1

Suzhou

1

Ma’anshan

1

11

1

11Wuhu

Changzhou

Zhenjiang

Total 36

No. of Stores

Department Store 16

Lifestyle Centre 20

sq.m.

2.9M

0.6M

3.5M

JilinProvinceChangchun

1

20

1

Our Future Network

21

Continuous Enrichment of Business Contents

Merchandise UpgradeStore Revamp

Suqian Store

Ma'anshan StoreYangzhou Store Xianlin Store

Nanjing Zhujiang Road Store Nantong Lifestyle Store

Dual Asset-Light and Asset-Heavy Development Strategy - Continuous Improvement of Existing Asset-Heavy Projects

Transferring the façade with urban cultural elements; and

adding three-dimensional parking garage to create over

hundreds of car parking spaces in the core commercial

district of Yangzhou

Positioned as a comprehensive lifestyle center for all customers;

physically connecting the retail store and street shops to form a

large scale retail complex; optimising merchandising portfolio;

and enriching experience related business formats

Upgrading sports flagship store such as Adidas SWC, Nike

Sports L; introducing first-tier international cosmetic brands,

affordable luxury and trendy brands to create a leading

shopping district in the eastern part of Nanjing

To be transformed into a hybrid of comprehensive lifestyle

center and city outlet; upgrading the overall property

lighting; and reshaping the store position to enhance its

trendy and fashionable offerings and enrich lifestyle

functions and amenities

Connecting the B1F with the interchange station of Metro

Lines 1 and 2; the new connection will attract Metro foot

traffic and thus enhance the store’s commercial value

Upgrading cosmetic brands portfolio by introducing high-

end cosmetic brand such as Dior; introducing high-end

benchmark ladieswear to solidify the store’s market position;

and introducing an outdoor F&B zone to transfer into a

leading comprehensive lifestyle centre in town

In-depth Co-operation with Brands to Achieve Operating Growth

In-depth co-operation with strategic brand groups, omni-channel empowerment，achieving the 1+1>N brand effect

&

Shorten

Payment Terms

Improve

Turnaround

Priority in CounterSelectionPriority in Business

Corporation

Priority in PR Resources

Allocation & PR Functions Schedule

In-depth Marketing Resources

Sharing

Exclusive

Tailor-made PR

Functions & Cross

Selling Events

2021 Omni-channel sales target RMB 980M YOY growth of 50%

22

23

Accelerate Continuous Growth in Emerging Business- G·Mart + 7-Eleven Convenience Stores

Integrate G·Mart and 7-Eleven’s logistics and warehouses

Improve the capacity of supply chain logistics and reduce logistics costs

G·Mart 2021 Plan 7-Eleven 2021 Plan

Increase the proportion of centralised procured goods to 80% across all stores

Optimise supply chain network and enrich commodity offer

各类公益活动，传递正能量

各类公益活动，传递正能量

Offer exclusively or tailor-made products for Golden Eagle

Enlarge strategic cooperative brand portfolio

Optimise shopping route and brand category of G·Mart

Enhance local home delivery business and launch

Golden Eagle Online Supermarket (金鹰云超）

Initiate site selection of fresh food factory to match future

development plan

Continue the supply chain optimisation

Aiming to achieve a gross profit margin of 35%

Open 35 new stores in Nanjing

Open 15 new stores in each of Yangzhou, Taizhou and Nantong

Total number of stores in operation would be 105 in 2021

24

Online Flagship Store 2021 Plan Building Comprehensive Integrated Procurement System

Improve User Experience

50%

Online user repeat

purchase rate increased to

Plan to Launch

100+

Brand online sales

contribute over

of total sales

10%

Assist strategic cooperative brands to build omni-channel flagship stores,

enhance online and offline user experience and ultimately achieve high

growth in omni-channel members

• Build an open platform for different types of merchants

• Fast logistics experience across 30 stores

Provide 24-hour delivery and Next-day delivery services to enhance user’s

logistics experience

• 24-hour online after-sales customer service

• Adoption of X+1 Scheme（JD/self-owned warehouse), ensure quality logistics experience during major marketing events

Accelerate Continuous Growth in Emerging Business- Jinying.com (金鹰购）

Brands online

Professional customer service team with quick response, instant processing and instant feedback

X：Day to day mode, multi-store distribution: The store which picks up the

purchase order will arrange for delivery immediately;

1：Major marketing event mode, centralised warehouse distribution: Orders of

hot selling items are designated to warehouse for distribution directly, to

reserve store manpower and to ensure speedy delivery

Different merchant types: Offline stores, Cross-border merchants,POP brands and self-operated supermarkets

• Expand services offer, integrate all business formats inside

and outside the Group

In-depth cooperation with different business segments including but not

limited to Golden Eagle Health, Medical and Beauty; Golden Eagle Hotel;

Golden Eagle Thai Odyssey and Confinement club, etc.

Pets, men's skin care, children's dentistry, etc

• Differentiated development of online product to meet user

needs Expanding emerging segments

25

Refined Operation to Enhance VIP Loyalty

Integrated VIP members of all business segments

Golden EagleHotels

G·MartRetail Stores

G·Health 7-Eleven Jinying.com

(金鹰购)

Real Estate

• Upgraded the Group ’s VIPmembership programme andintroduced black gold VIPmembership since January 2021

• Strengthen management of the

tiered membership and conduct

precise marketing to different

VIP member classes

Membership MarketingMembership Programme Upgrade

26

Refined Operation to Upgrade Information System

Big Data Analysis

Integration of Operation and Finance Functions

Financial Sharing Center

AISmart Retail

Blockchain FinanceIntelligent GOP

Visualise ShopsManagement

Counter Contract Management

Consumer Age Analysis Consumption Category Analysis Foot Traffic Analysis

Local Inside Jiangsu Province

OutsideJiangsu Province

Overall Coordination

Invoice Management

StandardisedManagement

MORE…

Electronic AccountingFiles

Accounting FileManagement

Shared Business Processing

Accounting

Cash Payments

Light Food Young Fashion Jewelry Ladieswear Men’s Wear

IntelligentNotifications

Member Portrait

Precise Marketing

B2B TradingPlatform

Settlement

FinancialInformation Sharing

Image Management

Business System

ReimbursementPlatform

other

Refined Operations to Build Brand Influence

Launch plan of the next 25-year for sustainable

strategic development; to deliver positive

influence to target customers, business

partners and employees

Adhere to the brand value of "sustainable development"

Build good relationships with cities, consumers, partners and employees

Brand Building

1 2 3

4 5 6

Focus on the main business, maintain

high-quality and rapid development to

solidify industry leading position

Follow the trend of the industry intelligent

upgrade, accelerate the integration and

innovation of online and offline businesses

All business contents to resonate and give

full play to increase brand influence, join

hands with strategic partners from

different business segments to strengthen

the city’s commercial development

Carry out social welfare charitable

a c t i v i t i e s continuously t o b u i l d a

corporate culture that values corporate

social responsibility and team with

vitality and values

In-depth marketing, promotion and

penetration to help achieve performance

targets while further strengthen brand

building

27

Financial Highlights

29

Financial Highlights

Gross Sales Proceeds (GSP)Concessionaire Sales Direct Sales Rental IncomeSales of PropertiesOthers

Gross ProfitOther Operating IncomeOperating Expenses

EBITEBITDA

Profit Attributable to ShareholdersEPS – Basic (RMB)

2019 (+/-)Year ended 31 December(RMB ‘M)

2020

18,246.813,757.32,641.9

914.3829.3104.0

3,610.2546.7

1,963.0

2,193.92,641.7

1,185.50.706

-10.0%-10.7%

+12.9%-4.8%

-75.7%-16.1%

-11.7%+16.7%

-8.4%

-7.6%-6.3%

+31.8%+32.9%

16,425.812,284.62,982.0

870.4201.587.3

3,187.3637.8

1,797.4

2,027.72,476.1

1,562.60.938

30

EBITDA Analysis

Year ended 31 December(RMB ‘M)

2020 2019 (+/- )

Total EBITDA 2,476.1

2,422.9

2,641.7

2,332.8 +90.1

- 4th Quarter

Others

+56.6

53.2 -255.7

+163.4

- 3rd Quarter

(+/- )

+3.9%

+11.3%

+25.8%

-82.8%308.9

633.7797.1

555.7 499.1

* Operating Cost savings

* Gross Profit & Other Income

- 2nd Quarter

* Gross Profit & Other Income

* Operating Cost savings

559.2 544.3 +14.9 +2.7%

+156.4

+7.0

+55.2

+1.4

- 1st Quarter 510.9 655.7 -144.8 -22.1%

-165.6 -6.3%

Retail EBITDA

31

Margin Analysis

(+/- )% points

Year ended 31 December(%)

2020

Gross Margin 22.3% -0.521.8%

2019

Combined Margin fromConcessionaire Sales and Merchandise Sales

+0.1

Sale of Properties 38.9% -5.1

16.4%

33.8%

16.3%

- Concessionaire Sales Margin

- Direct Sales Margin

+0.117.0% 16.9%

+1.514.1% 12.6%(Note 1)

(Note 2)

Note 1: There was an one-off inventory clearance sales during the period from November 2018 to May 2019 to clear the Group’s aged inventories whereas no such clearance sales took place in the year 2020.

Note 2: The delivery of a majority of pre-sold phase two sub-section one units of Yangzhou New City Centre Project in the 2H2019 whichcarried a higher gross profit margin than the other property units.

32

Financial Position

Note 1: Cash and near cash represents bank balances and cash and various short-term bank related deposits, including structured bank deposits and restricted cash

Note 2: Gearing ratio = total borrowings / total assets

As at 31 Dec 2020

As at 31 Dec 2019RMB ‘M

Total Assets

Total Liabilities

Net Assets

Cash and Near Cash (Note 1)

Total Borrowings

Short-Term Loans

3-Year Syndicated Loan

10-Year Senior Notes

Net Cash (Debts)

Gearing Ratio (Note 2)

24,083.1

16,291.7

7,791.4

6,698.4

6,245.3

-

3,786.6

2,458.7

22,942.3

15,988.3

6,954.0

5,804.4

6,728.0

80.0

4,022.6

2,625.4

25.9% 29.3%

(923.6)453.1

Cash Flow Statement

33

Net cash generated from operating activities

2019

Net increase (decrease) in cash and cash equivalents

2020

344.8

(393.5)

2,178.3

293.0

(466.1)

Net cash used in financing activities (1,083.3) (2,726.8)

1,588.9 (255.5)

2,327.4

Net cash generated from investing activities

- Capex for the year

Year ended 31 December(RMB ‘M)

- Decrease in net bank and other borrowings (80.0) (1,766.7)

2,673.62,478.3

- Interest paid

(467.1)

- Change in short-term bank related deposits

- Dividends paid to owners of the Company (580.5)

(398.3)

- Operating cash flows before working capital movements

805.3 573.9

(288.6)

- (Increase) decrease in PUD/completed properties for sale (108.6) 302.3

- 146.6- Proceeds from disposal/partial disposal of interests in associates

- Repurchase of shares (3.0)(121.7)

- Increase (decrease) in contract liabilities 183.1 (624.8)

34

Growth and Profitability

18,247 16,426

16.3% 16.4%

0.0%

10.0%

20.0%

10,000

15,000

20,000

2019 2020

GSP Combined Margin

EBITDA Sales Per Ticket (Same-Store Comparison)

Combined Margin & GSP Revenue

2,642 2,476

43.0%44.3%

15.0%

45.0%

0

1,500

3,000

2109 2020

EBITDA EBITDA Margin

6,149 5,588

0

4,000

8,000

2019 2020

901 955

0

600

1,200

2019 2020

Sales Per Ticket (Same-Store Comparison)(excluding supermarket sales)

RMB ‘M RMB ‘M

RMB ‘M RMB

35

Stable Expense Ratio

381 336

2.3% 2.3%

0.0%

1.5%

3.0%

0

400

800

2019 2020

Rental Expense

Staff Expense

Other Operating Expenses

Depreciation and Amortisation

320 306

2.0% 2.1%

0.0%

1.0%

2.0%

0

250

500

2019 2020

447 448

2.8%

3.1%

0.0%

1.5%

3.0%

0

400

800

2019 2020

814 707

5.0%

4.8%

0.0%

3.0%

6.0%

0

600

1,200

2019 2020

Other Operating Expenses as a % of GSPOther Operating Expenses

Depreciation and Amortisation as a % of GSPDepreciation and Amortisation

Staff Expense as a % of GSPStaff Expense

Rental Expense as a % of GSPRental Expense

RMB ‘M RMB ‘M

RMB ‘M RMB ‘M

362 318 325 392

1,397

260 321 319 444

1,344

-

400

800

1,200

1,600

1Q 2Q 3Q 4Q FY2020

2019 2020

Lifestyle Centre Gross Profit RMB ‘M

-28.2% -1.8%

-3.8%

0.9%13.4%

1.9 1.5 1.4 1.9

6.7

1.2 1.5 1.52.2

6.4

0.0

3.0

6.0

9.0

1Q 2Q 3Q 4Q FY2020

2019 2020

Lifestyle Centre GSP

RMB ‘B

3.4%

-3.8%

-32.9%1.5%

15.4%

36

Lifestyle Centre Performance

204 174 173 212

763

159 203 191 261

814

-

250

500

750

1,000

1Q 2Q 3Q 4Q FY2020

2019 2020

31 30 33 33

127

15 23 28 31

97

0

50

100

150

200

1Q 2Q 3Q 4Q FY2020

2019 2020

Lifestyle Centre EBIT

RMB ‘M

Note: On a same store basis excluding Nanjing Xinjiekou Lifestyle Centre and Xuzhou Lifestyle Centre

-22.2% 16.5%10.6%

Lifestyle Centre Foot Traffic People ‘M

-52.3%-12.4%

-23.5%

-25.9% -5.2%

23.0%

6.6%

Business Review

38

Growing Presence in the PRC

• Yangzhou Jinghua Store

• Shanghai Store

• Nanjing Hanzhong Store

• Nanjing Xianlin Store

• Liyang Store(closed for majorrevamp since

Feb 2018)

• Xuzhou People Square Store

• Kunming Nanya Store (suspended in Aug 2015)

• Yancheng Outlet Store

• Changzhou Wujin Store(suspended in Dec 2015)

* Nanjing Xinjiekou Store, together with the additional area of 81,098 sq.m., was upgraded to a lifestyle centre in April 2014 # Nanjing Xianlin Store, together with the additional area of 168,900 sq.m., was upgraded to a lifestyle centre in November 2017@ Xuzhou Store, together with the additional area of 51,040 sq.m., was upgraded to a lifestyle centre in September 2019

• KunmingLifestyle Centre

• Nanjing ZhujiangStore

• Nanjing *Xinjiekou Store

• Nantong Store

• Yangzhou Store

• SuzhouStore (closed in Feb 2013)

• Xuzhou Store

• Xi’anGaoxin Store

• Taizhou Store

• Huai’an Store

• Yancheng Lifestyle Centre

• Hefei Suzhou Road Store(suspended inDec 2015)

• Changzhou Jiahong Store (partially suspended in May 2017)

• Xi’an XiaozhaiStore (suspended in Oct 2014)

• Suqian Store

• Nanjing Xinjiekou Lifestyle Centre

• Yancheng Julonghu Lifestyle Centre

• Nantong LifestyleCentre

*• Danyang Lifestyle Centre

• Kunshan Lifestyle Centre

• Jiangning Lifestyle Centre

• Ma’anshanLifestyle Centre

• Nantong Renmin Road Store

• Wuhu Store• Wuhu New City

Store

• Xi’an GuomaoStore(closed in Oct 2010)

• The Group’s total GFA as of 31 December 2020 amounted to 2,511,058 sq.m.

• Of the 31 stores in operation, 16 stores are lifestyle centres with total GFA of 1,991,662 sq.m.

• Hefei Dadongmen Store (suspended in May 2015)

• Hefei Baihuajing Store (suspended in May 2015)

• Anhui Huaibei Store

2011 2010201220152016 201420172019

• Xi’an Qujiang Lifestyle Centre

• Suzhou Lifestyle Centre

• Nanjing Xianlin Hubin Tiandi Zone B

• Nanjing Golden Eagle World

• Yangzhou New City Centre

#

#

1996 2000 2001 2002 2003 2005 2006 2007 20092008

@

• Xuzhou StoreZone B

@

39

Self-Owned Properties

Self-owned properties in prime locations accounted for 62.5% of total GFA

Lifestyle centers represented 79.3% of total GFAOwned-to-leased GFA ratio

32.9%*Leased from

related parties

62.5%*Owned

2.7%*Leased from independent

3rd parties

# In the format of lifestyle centre* As a percentage of total GFA (sq. m.) as at 31 December 2020

1.9%*Managed

@ Excludes Liyang store, Jiahong and Lianyungang Supermarkets, Changzhou and Yancheng Aquariums, and 7-Eleven convenience stores with total GFA of 99,084 sq.m.

Store(in operation)

Owned / Leased

GFA (sq. m.)

1 Nanjing Xinjiekou # Owned / Leased 83,896 / 37,363

2 Nantong Owned 9,297

3 Yangzhou Owned / Leased 37,562 / 3,450

4 Xuzhou # Owned 110,974

5 Xi’an Gaoxin Owned 32,878

6 Taizhou Owned 58,374

7 Kunming # Owned 116,817

8 Nanjing Zhujiang Leased 33,578

9 Huai’an Owned 55,768

10 Yancheng # Owned 88,165

11 Yangzhou Jinghua Leased 29,598

12 Shanghai Leased 29,651

13 Nanjing Hanzhong Leased 12,462

14 Nanjing Hubin Tiandi# Owned / Leased 168,900 / 47,494

15 Anhui Huaibei Leased 34,714

16 Suqian Owned 65,410

Store(in operation)

Owned / Leased

GFA (sq. m.)

17 Xuzhou People’s Square Owned 37,457

18 Yancheng Outlet Leased 18,377

19 Yancheng Julonghu # Leased 110,848

20 Nantong Lifestyle # Owned 94,700

21 Danyang # Leased 52,976

22 Kunshan # Owned 118,500

23 Nanjing Jiangning # Leased 144,710

24 Ma’anshan # Leased 87,568

25 Nantong Renmin Road Owned 30,191

26 Wuhu Shopping Owned 30,629

27 Wuhu New City # Owned 98,906

28 Xi’an Qujiang # Managed 48,502

29 Suzhou # Owned 176,764

30 Golden Eagle World # Leased 251,019

31 Yangzhou New City # Owned 153,560

Total 2,511,058@

40

Merchandise Offering

Category2020 GSP

Contribution2019 GSP

Contribution

(+/- )% points

Top Performing Brand

Apparel & Accessories 40.3% 45.0% -4.7

Gold, Jewelry and Timepieces

16.7% 16.7% -

Cosmetics 14.8% 13.3% +1.5

Outdoor, Sports Clothing and Accessories

10.0% 9.7% +0.3

Supermarket (including Tobacco and Wines)

10.1% 6.9% +3.2

Electronics and Appliances 2.4% 2.4% -

Children’s Wears and Toys 3.7% 4.0% -0.3

Others 2.0% 2.0% -

Merchandise Mix (Concessionaire and Direct Sales) in 2020

Offered a full range of mid-to-high-end merchandise to meet the one-stop shopping needs of customers

41

Consumption and Service Upgrade

As at 31 December 2020, 27 G·Life series stores were in operation, including:

• 16 G·Mart premium supermarkets;

• 4 G·Space boutique bookstores; and

• 7 G·Beauty beauty variety stores

Grasped the evolving trends to attract middle-class families and customers who pursue for a high-quality lifestyle

42

7-Eleven Convenience Stores

• We have been granted the exclusive franchise right of 7-Eleven in Jiangsu Province by Seven-Eleven (China) for a term of 20 years

• Providing more efficient convenient services to our customers by sharing 7-Eleven supply chain, IT and membership system

• As at 31 December 2020, 26 7-Eleven convenience stores with total GFA of 2,960 sq.m. were opened and generated RMB76.8M GSP in 2020

• Out of the 26 stores, 19 are self-operated stores and 7 are franchise-stores. All stores are located in Nanjing

Qixia District ：5 stores

Xuanwu District ：5 stores

Yuhua District ：1 store

Jiangning District ：2 stores

Qinhuai District ：4 stores

Pukou District ：3 stores

Gulou District ：3 stores

Jianye District ：3 stores

56% 56% 56% 55%

59% 61%

0%

30%

60%

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

2015 2016 2017 2018 2019 2020

43

Broad VIP Customer Base

VIP members % of Total GSP

VIP consumption

G.Point members

G.Club members

Continuously expanding VIP customer base, strengthening loyalty and providing the foundation for long-term growth.

Out of 3.8M VIP members, 3.5M were connected with the “Goodee Mobile App”

VIP consumption accounted for 60.6% of total GSP in 2020

2 types:

-G. Club: Black, Platinum and Gold levels with varying discounts, enrollment and renewal based on consumption

-G. Point: pre-VIP, free to enroll, with point accrual only

Point awards, exclusive benefits

Introduced co-branded credit cards with various banks

* As at 31 December 2020

Chain StoreYears intooperation

Retail OFA(sq.m.)

Lifestyle OFA(sq.m.)

Total OFA(sq.m.)

2020 Sales(RMB'M)

SSSG(%)

2020 ASP(RMB)

2019 ASP(RMB)

Stores under SSS calculation

1Nanjing XinjiekouLifestyle Centre

25 66,202 19,692 85,894 2,408 2.6% 1,892 1,767

2 Nantong 20 5,693 64 5,757 6 - n/a n/a

3 Yangzhou 19 28,739 730 29,469 1,055 -11.4% 1,523 1,426

4Xuzhou

Lifestyle Centre17 64,270 8,680 72,950 1,902 1.0% 1,172 1,176

5 Xi'an Gaoxin 14.5 22,254 4,278 26,532 644 -15.5% 1,877 1,769

6 Taizhou 14 35,563 5,675 41,238 702 -10.7% 1,252 1,177

7Kunming

Lifestyle Centre13.5 51,399 31,878 83,277 306 -32.8% 1,126 1,093

8 Nanjing Zhujiang 13 21,675 6,454 28,129 254 -19.5% 706 737

9 Huai'an 12 31,543 2,783 34,326 373 -11.7% 1,101 941

10Yancheng

Lifestyle Centre12 50,252 10,352 60,604 1,329 -2.5% 1,282 1,147

(1) (2) (3) (3)

Golden Eagle is the leading premium retail store chain targeting to the mid-to-high-end market in second-tier cities

(5)

44

Store Sales

(1) As at 31 December 2020(2) Retail OFA of 1,117,995 sq.m., Lifestyle OFA of 591,576 sq.m. and total OFA of 1,709,571 sq.m. as at 31 December 2020(3) Same store ASP excluding supermarket sales of RMB955 (2019: RMB901), increased by 6.0%(4) Nanjing Xinjiekou Store Block A was closed for major upgrade and revamp from June to December 2019 and enlarged GFA by 8,121 sq.m. in 2020(5) The stores mainly operate under lease model(6) The stores underwent a material level of merchandise and store upgrade/revamp in 2020(7) The stores will undergo a material level of merchandise and store upgrade/revamp in 2021

(4)

(7)

(7)

(7)

(7)

(6)


Retail OFA(sq.m.)


Total OFA(sq.m.)

2020 Sales(RMB'M)

SSSG(%)

2020 ASP(RMB)

2019 ASP(RMB)


11 Yangzhou Jinghua 11.5 19,383 42 19,425 570 -9.3% 993 972

12 Shanghai 11.5 12,269 15,058 27,327 31 -84.8% 9,378 -

13 Nanjing Hanzhong 11.5 9,685 652 10,337 235 -17.5% 498 479

14Nanjing Hubin Tiandi Lifestyle

Centre11 72,585 38,621 111,206 820 -9.3% 570 548

15 Anhui Huaibei 10 27,147 1,862 29,009 289 -13.6% 643 641

16 Suqian 9 45,219 5,419 50,638 531 2.4% 861 783

17Xuzhou People's

Square9 17,890 9,917 27,807 219 -13.1% 578 542

18 Yancheng Outlet 8.5 15,537 441 15,978 179 -1.9% 518 486

19Yancheng Julonghu

Lifestyle Centre6.5 62,208 29,710 91,918 560 -1.3% 871 791

20Nantong

Lifestyle Centre6 36,119 11,978 48,097 438 -1.0% 1,323 1,104

(1) (2) (3) (3)

45

Store Sales (Cont’d)

(1) As at 31 December 2020(2) Retail OFA of 1,117,995 sq.m., Lifestyle OFA of 591,576 sq.m. and total OFA of 1,709,571 sq.m. as at 31 December 2020(3) Same store ASP excluding supermarket sales of RMB955 (2019: RMB901), increased by 6.0%(7) The stores will undergo a material level of merchandise and store upgrade/revamp in 2021(8) Shanghai Store was operated under full lease model since November 2019(9) Near the store’s subway construction commenced since March 2018 and is expected to be completed in 1H2022. Nantong Lifestyle Centre’s performance will be

affected during the period

(7)(9)

(8)

(7)


Retail OFA(sq.m.)


Total OFA(sq.m.)

2020 Sales(RMB'M)

SSSG(%)

2020 ASP(RMB)

2019 ASP(RMB)


21Danyang

Lifestyle Centre6 20,825 21,576 42,401 36 -16.5% 389 325

22Kunshan


23Jiangning


24Ma’anshan


25Nantong

Renmin Road5 2,422 20,656 23,078 10 -14.9% n/a n/a

26Wuhu

Shopping Centre5 0 31,011 31,011 2 -92.1% - 873

27Wuhu

New City5 8,233 50,571 58,804 17 -4.7% n/a n/a

28Suzhou

Lifestyle Centre4 60,539 31,473 92,012 128 -30.7% 748 763

(1) (2) (3) (3)

46


(1) As at 31 December 2020(2) Retail OFA of 1,117,995 sq.m., Lifestyle OFA of 591,576 sq.m. and total OFA of 1,709,571 sq.m. as at 31 December 2020(3) Same store ASP excluding supermarket sales of RMB955 (2019: RMB901), increased by 6.0%(5) The stores mainly operated under lease model(6) The stores underwent a material level of merchandise and store upgrade/revamp in the year 2020(7) The stores will undergo a material level of merchandise and store upgrade/revamp in the year 2021(10) Wuhu Shopping Centre was operated under full lease model since July 2020(11) Steep local market competition

(5)(6)

(7)

(10)

(6)(11)

(6)(7)

(5)

(5)


Retail OFA(sq.m.)


Total OFA(sq.m.)

2020 Sales(RMB'M)

SSSG(%)

2020 ASP(RMB)

2019 ASP(RMB)


29Nanjing Golden

Eagle World3 107,500 76,319 183,819 1,033 34.5% 739 609

30YangzhouNew City

3 43,995 41,269 85,264 312 -0.8% 566 526

Managed Store

31Xi'an Qujiang

Lifestyle Centre4 24,817 14,498 39,315 n/a n/a n/a n/a

(1) (2) (3) (3)

47


(1) As at 31 December 2020(2) Retail OFA of 1,117,995 sq.m., Lifestyle OFA of 591,576 sq.m. and total OFA of 1,709,571 sq.m. as at 31 December 2020(3) Same store ASP excluding supermarket sales of RMB955 (2019: RMB901), increased by 6.0%

48

City Sales

CityNumber of

storesRetail OFA

(sq.m.)

Lifestyle OFA

(sq.m.)

Total OFA(sq.m.)

Total GFA(sq.m.)

2020 Sales(RMB'M)

2019 Sales(RMB'M)

Sales Growth

2020 EBIT(RMB'M)

2019 EBIT(RMB'M)

EBIT Growth

Nanjing 6 336,506 188,122 524,628 779,422 5,271 5,215 1.1% 849 734 15.7%

Yangzhou 3 92,117 42,041 134,158 224,170 1,937 2,133 -9.2% 244 259 -5.5%

Yancheng 3 127,997 40,503 168,500 217,390 2,069 2,112 -2.1% 249 246 1.2%

Xuzhou 2 82,160 18,597 100,757 148,431 2,121 2,137 -0.7% 298 300 -0.7%

Nantong 3 44,234 32,698 76,932 134,188 454 460 -1.4% 34 30 14.5%

Open Forum

50

Disclaimer

• The material in this document is a presentation of general background information about theCompany’s activities at the date of the presentation. It is information given in summaryform and does not purport to be complete. It is not intended to be relied upon as advice topotential investors. This presentation may not be reproduced or redistributed to any otherperson and you agree to keep the contents herein confidential. No representation orwarranty, express or implied is made and no reliance should be placed on the accuracy,fairness or completeness of the information presented herein.

• These documents are not an offer of securities for sale inside or outside of the United States.Securities may not be offered or sold in the United States unless they are registered orexempt from registration. Any offering of securities to be made in the United States will bemade by means of an offering circular that may be obtained from the Bank. Such offeringcircular will contain detailed information about the company and its management, as well asthe Company’s financial statements.

• This document may not be copied or otherwise reproduced and may not be distributed in theUnited States or to U.S. persons, or in Canada or Japan.

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