Rising operating costs caused Wa City’s net profit after tax to decrease by 39% in the first three quarters

Wacheng Taitong (2729) Group announced that its consolidated revenue in the first three quarters reached 4.905 billion yuan, an annual increase of 6.24%, a record high in the same period; after-tax net profit was 170 million yuan, a 39% decrease from the same period last year, and earnings per share was 4 yuan. The profit decline was mainly affected by the increase in food materials, personnel and other operating costs.

Wacheng Taitong Group simultaneously announced consolidated revenue of 499 million yuan in October, a year-on-year decrease of 2.99%; cumulative consolidated revenue for the first ten months reached 5.405 billion yuan, an annual increase of 5.41%, setting a new high for the same period in history.

In October, affected by the typhoon and the suspension of work and classes in some counties and cities, some of its shopping malls and street stores were suspended in compliance with typhoon prevention measures, resulting in a reduction in business days, which had a short-term impact on single-month revenue performance. However, benefiting from the demand for dinner parties during the Double Ten holiday holiday and the influx of customers driven by the department store’s anniversary celebration, the cumulative revenue in the first ten months still grew steadily.

The Group will continue to take advantage of its multi-brand and multi-cuisine layout and deepen its operations in iconic shopping malls. Taking Taoyuan Dajiang Shopping Center as an example, the group has five major brands stationed in the mall. Through diversified cuisine and complementary brand positioning, it can meet the dining needs of families, relatives and friends, and different customer groups. It can leverage the synergy of multiple brands to attract customers and enhance the overall operating efficiency of a single shopping mall location.

The group entered the Eastern Taiwan market for the first time at the end of August, and simultaneously opened the dual brands "Wacheng" and "Shishixiang" at Taitung Show Tai Plaza. In September, it continued to open "Wacheng" at the Beijing Station Xiaobitan store, targeting the MRT co-constructed shopping malls and surrounding high-density residential family customers, and continued to deepen the layout of the store.

In terms of overseas markets, the group continues to promote its international layout. Following the stable operation of the first store "Very Thai by Wacheng" in Los Angeles (Westfield Century City), it opened its second brand in the United States in the Silver Lake District of Los Angeles in August. It will enter the local market with a more distinctive and youthful brand positioning and differentiated menus, and further expand the diversified consumer customer base.

Looking forward to the fourth quarter, Taiwan's major department stores are ushering in their annual anniversary peak season one after another. With the advantage of the channel layout of most stores in core department stores and shopping malls, the group is expected to benefit from the increase in shopping mall crowds and consumption, driving store visits and revenue performance.