Introduction
Introduction Credit Ratings
Red Star Macalline Group Corporation Ltd. (formerly known as Shanghai Red Star Macalline Home Furnishing Company Ltd. and Shanghai Red Star Macalline Enterprise Management Company Ltd., hereinafter referred to as the “Company”) is a limited liability company jointly established by Red Star Macalline Holding Group Company Ltd. (hereinafter referred to as“RSM Holding”) and Red Star Furniture Group Co., Ltd. (hereinafter referred to as“Red Star Furniture Group”) on 18 June 2007 in Shanghai, the People’s Republic of China (the“PRC”). On 6 January 2011, the Company was converted into a foreign-invested joint stock limited company in accordance with laws and changed its name to Red Star Macalline Group Corporation Ltd..
The Company completed the public initial offering of overseas listed foreign shares, namely H shares, and became listed on the Hong Kong Stock Exchange on 26 June 2015, and completed the public initial offering of domestic listed foreign shares, namely A shares, and became listed on the Shanghai Stock Exchange on 17 Jan 2018. The business scope of the Company includes providing invested enterprises with management service, providing enterprise management and product information consulting; providing business stores with design planning and management services, wholesale of furniture, building materials (steel exclusive) and decoration materials, and relevant supporting services. (Products involving quota license or special management provisions shall be subject to relevant state regulations). The Company and its subsidiaries (hereinafter referred to as the “Group”) are principally engaged in the operation and management of and the professional consultancy for home improvement and furnishings shopping malls. The Company of the Company is RSM Holding, and the actual controller is Mr. Che Jianxing.
During the Reporting Period, the Group continued to focus on the strategic positioning of growing into an “omni-channel platform service provider for the pan home improvement and furnishings industry”, followed the operation and management mode of“market-oriented operation and shopping-mall-based management”, further strengthened its cooperation with home improvement and furnishings manufacturers and distributors, and persistently optimized the structure of brands operated by us in home improvement and furnishings shopping malls to provide consumers with better services. With all such efforts, the Group obtained satisfactory results.
As of 31 December 2019, the Group achieved a revenue of RMB 16.47 billion, representing an increase of 15.7 % for the same period in 2018. Gross profit margin decreased by 1 percentage points to 65.2% from 66.2% for the same period last year.
During the Reporting Period, we continued to implement the two-pronged business model of Portfolio Shopping Malls and Managed Shopping Malls, with a focus on continuing development of our asset-light business model, and strategically expanded our shopping mall network nationwide in order to further enhance our market share, thereby strengthening our market leadership in China’s home improvement and furnishings industry. As of 31 December 2019, we operated a total of 428 shopping malls.
Our future development plans are as follows:
1. We will continue to implement the two-pronged business model of Portfolio Shopping Malls and Managed Shopping Malls, and consolidate the market leadership through strategic expansion of our shopping mall network and brand portfolio;
2. We will build a comprehensive service system and strive to become the new retail benchmark in the home decoration and furnishing industry;
3. We will work together with Alibaba to deeply expand the layout of the new retail sector;
4. We will deeply promote business transformation and strengthen the brand mentality of “omnichannel service provider for the pan-home improvement and furnishing industry”;
5. We will be proactive in innovation and attach importance to the application of capital markets and financial instruments; and
6. We will continue to improve corporate governance of the Company, standardize our operation and implement social responsibilities.