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The financial reports of more than 20 middle-class related corporate brands have been compiled without any personal opinion.

Marriott

Marriott International's total revenue in the second quarter of 2024 was approximately US$6.439 billion, a year-on-year increase of 5.99%; net profit was approximately US$772 million, a year-on-year increase of 6.33%; adjusted net profit was approximately US$716 million, a year-on-year increase of 3.77%. In addition, adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was approximately US$1.324 billion. Globally, system-wide revenue per available room (RevPAR) increased by 4.9% year-on-year in constant US dollars, with a 3.9% increase in the US and Canadian markets and a 7.4% increase in the international market.

It is worth noting that in the international market, the RevPAR in Greater China fell by 4.2% year-on-year, while the RevPAR in the Middle East and Africa increased the most, reaching 18.1%. In addition, the occupancy rate of Marriott's global hotels was 73.1%, an increase of 1.6 percentage points year-on-year, among which the occupancy rate in Europe was the highest, at 75%, an increase of 2.1 percentage points year-on-year. The occupancy rate in Greater China was 67.9%, an increase of 0.7 percentage points year-on-year. In terms of average daily room rate, Greater China fell by 5.1% year-on-year, while the average daily room rate of Marriott's global hotels was US$185.33, an increase of 2.6% year-on-year.

Starbucks

Starbucks' third-quarter financial report for fiscal year 2024 showed revenue of $9.106 billion, down 0.62% year-on-year, and net profit attributable to the parent company of $1.055 billion, down 7.61% year-on-year. Starbucks' global same-store sales fell 3% and customer traffic fell 5%, which was related to the weak US consumer market and competitive pressure in the Chinese market. In China, Starbucks' same-store sales fell 14%. Starbucks China said it still adheres to its high-end positioning and does not participate in price wars.

Starbucks China continued to increase its presence in lower-tier markets in the third quarter, opening 213 new stores, a 13% year-on-year increase. It now has 7,306 stores, covering more than 900 county-level markets. Starbucks China also launched 17 new drinks, attracting a large number of new members, especially young Generation Z customers. Starbucks Rewards Club has a record 22 million active members in 90 days, with a total membership of more than 132 million.

Hang Lung Properties

Hang Lung Properties' performance in the first half of 2024 showed that total revenue was approximately HK$6.114 billion, a year-on-year increase of 17%, while net profit attributable to shareholders was approximately HK$1.061 billion, a year-on-year decrease of 55.68%. Property sales revenue reached HK$1.228 billion, but property rental income fell 7% to HK$4.886 billion. This decline in revenue was mainly affected by three factors: weak luxury consumption in the mainland, slowing retail and office markets in Hong Kong, and depreciation of the RMB against the Hong Kong dollar.

In the revenue map of Hang Lung Properties, the mainland business is its core. In the first half of 2024, in the property leasing segment, the mainland business revenue fell by 6% to HK$3.338 billion, while the Hong Kong business revenue fell by 8% to HK$1.548 billion. Despite the decline in property leasing income, Hang Lung Properties' overall occupancy rate continued to rise. In terms of RMB, in the first half of 2024, Hang Lung Properties' mainland shopping mall revenue was 2.414 billion yuan, a year-on-year decline of 3%, of which the high-end shopping mall revenue fell by 4%, and the mid-high-end shopping mall revenue increased by 5%.

P&G China

In fiscal year 2024, organic sales in Greater China of P&G fell by 9% year-on-year. In particular, sales of high-end skincare brand SK-II in Greater China fell by 34%, mainly due to factors such as the nuclear wastewater discharge incident in Japan, high product prices and poor travel retail. Although P&G executives said that SK-II's sales have begun to improve and are expected to continue to improve in the second half of the year, the performance of key consumption periods such as 618 is still not optimistic.

Apple China

As of June 29, in the third fiscal quarter of 2024, Apple's revenue was $85.8 billion, a year-on-year increase of 5%, and its net profit was $21.448 billion, a year-on-year increase of 8%. Among them, iPhone revenue was $39.296 billion, a year-on-year decrease of 0.9%, Mac revenue reached $7.009 billion, a year-on-year increase of 2.4%; iPad business increased by 23.7% to $7.162 billion; wearable, smart home and related accessories business revenue was $8.097 billion, a year-on-year decrease of 2.3%.

The market performance in Greater China was disappointing, with revenue of $14.728 billion, a year-on-year decrease of 6.5%. IDC data shows that in the second quarter of 2024, Apple ranked sixth in China with a market share of 13.6%.

L'Oréal China

In the first half of 2024, L'Oréal's sales in North Asia were 5.475 billion euros, down 3.1% year-on-year, and same-store sales fell 1.7%. Among them, the performance of the Chinese mainland market was weak and consumer confidence continued to be sluggish, which exacerbated the weak market base.

In addition, in the first quarter of 2024, L'Oréal's performance in China increased significantly by 6.2%, continuing to consolidate its leading position in the Chinese market. However, according to a report on August 1, 2024, L'Oréal's position in the Chinese market is gradually losing ground, and its performance growth is slowing down. In the second quarter, sales were 2.752 billion euros, a year-on-year decrease of 2.4%, and same-store sales fell by 2.4%.

Nike China

Nike's recent financial report in the Chinese market shows that the company achieved revenue of US$12.429 billion and net profit of US$1.172 billion in the third quarter of fiscal year 2024. Among them, the revenue of Greater China in the third quarter was US$2.084 billion, a year-on-year increase of 5%, maintaining six consecutive quarters of growth. In addition, Nike Greater China's full-year revenue in fiscal year 2024 reached US$7.545 billion, an increase of 8% year-on-year on the basis of constant exchange rate. The revenue in the fourth quarter was US$1.9 billion, a year-on-year increase of 7%, achieving seven consecutive quarters of growth.

Swire Properties

Swire Properties' operating data for the first quarter of 2024 showed that some of the six international projects in mainland China achieved positive growth in retail sales, while others experienced a decline. The details are as follows:

• Beijing Sanlitun Taikoo Li: Retail sales fell 5.4% year-on-year, and occupancy rate increased from 94% at the end of 2023 to 97%.

• Guangzhou Taikoo Hui: Retail sales fell 9.2% year-on-year, and occupancy rate remained at 100%.

• Beijing INDIGO: Retail sales fell 2.4% year-on-year, and occupancy rate remained at 99%.

• Chengdu Taikoo Li: Retail sales fell 14.7% year-on-year, and occupancy rate increased from 97% to 98% at the end of 2023.

• Shanghai Xingye Taikoo Hui: Retail sales fell 19.4% year-on-year, and occupancy rate dropped from 93% at the end of 2023 to 92%.

• Shanghai Taikoo Li Qiantan: Retail sales increased by 0.7% year-on-year, and the occupancy rate remained at 98%.

Yum! Brands (KFC + Pizza Hut, etc.)

Yum China's financial results for the first quarter of 2024 showed that the company achieved solid sales growth, with total revenue increasing 1% year-on-year to US$2.96 billion. Net income was basically the same as the same period last year, at US$287 million. Operating profit fell 10% year-on-year to US$374 million, mainly because restaurants added cost-effective products to drive customer traffic growth. System sales increased 6% from the same period last year, excluding the impact of foreign currency conversion, mainly due to the 8% contribution of net new stores. Yum China's total number of stores hit a milestone of 15,000, with 378 net new stores, a record high in the first quarter

McDonald's

McDonald's revenue in the second quarter of 2024 was $6.49 billion, down 0.12% year-on-year; net profit was $2.022 billion, down 12.48% year-on-year. In the first half of 2024, McDonald's revenue was $12.659 billion, up 2% year-on-year; net profit was $3.951 billion, down 4% year-on-year. In the past few years, McDonald's inflation costs have increased significantly, ranging from 20% to 40% in different markets.

Joe Erlinger, president of McDonald's USA, repeatedly stressed in a conference call that it will be more cautious in raising product prices and will extend discount packages in multiple markets. In order to cope with more discerning and price-sensitive consumers, McDonald's is working with franchisees to develop plans, including adopting a more favorable pricing strategy.

LVMH

LVMH, the world's largest luxury goods group, had sales of 41.7 billion euros in the first half of the year, down 1% from analysts' expectations of 42.2 billion euros. Operating profit was 10.7 billion euros, down 8%, and net profit was 7.3 billion euros, down 14%.

Among them, the fashion leather goods department experienced a significant slowdown both year-on-year and quarter-on-quarter. Revenue in the first half of the year fell 2% to 20.8 billion euros, with an organic growth of 1%, which was lower than the 21 billion euros expected by analysts. The jewelry and watch department, where Tiffany and Bulgari are located, saw an organic revenue decline of 3% to 5.2 billion euros in the first half of the year. Among them, the organic revenue in the second quarter fell 4% to 2.7 billion euros.

Kering Group

Gucci's parent company Kering Group's revenue in the first half of 2024 was 9 billion euros, down 11%, and its operating profit was 1.58 billion euros, down 42%. It is expected that net profit will still decline by 30% in the second half of 2024, and this is based on the forecast of improved revenue.

Among them, the main brand Gucci had the largest decline, with revenue down 20% year-on-year to 4.09 billion euros. Among the remaining brands, Saint Laurent and other brands' revenues fell by 9% and 7% respectively, and only Bottega Veneta's revenue remained flat. In terms of operating profit, Gucci fell by 44%. Bottega Veneta, Saint Laurent and other brands fell by 28%, 34% and 80% respectively.

Burberry

According to Burberry's first quarter results for fiscal year 2025, in the three months ending June 29, the company's revenue fell sharply by 22% from the same period last year to 458 million pounds. In particular, there was a 23% drop in the Asia-Pacific and Americas markets.

In terms of regional distribution, same-store sales in the Chinese market fell by 21%, the Korean market fell by 26% year-on-year, and sales in Europe, the Middle East and Africa fell by 16% year-on-year.

Richemont Group

As of June 30, the first quarter of fiscal year 2025, Richemont Group's sales were 5.268 billion euros, down 1% at the current exchange rate, compared with a 19% increase in the same period last year. Sales of the watch division fell 13% to 911 million euros, accounting for less than 20% of the group's total performance.

From a regional perspective, sales in the Asia-Pacific region fell 19% to 1.809 billion euros. Europe, America, the Middle East and East Africa markets grew 4%, 11% and 9% respectively. Among them, sales in Greater China fell 27%. Richemont Group pointed out that the decline in the Chinese mainland and Hong Kong and Macau markets was particularly significant, dragging down the overall performance.

Swatch

In the six months ending June 30, 2024, Swatch Group recorded net sales of 3.45 billion Swiss francs, a year-on-year decline of 14.3% at current exchange rates. This is the first time the group has experienced a decline in revenue since 2021.

In addition, Swatch Group recorded a net profit of only 147 million Swiss francs in the first half of 2024, a year-on-year drop of more than 70%. The group stated in its financial report that the decline in sales was caused by a sharp drop in demand for luxury goods in Greater China (including Hong Kong and Macau).

Nayuki's Tea

On August 2, Nayuki's Tea released an announcement stating that in the six months ending June 30, 2024, Nayuki's Tea expects revenue to be approximately RMB 2.4 billion to RMB 2.7 billion, and an adjusted net loss (not measured in accordance with International Financial Reporting Standards) to be approximately RMB 420 million to RMB 490 million.

When Nayuki's Tea was officially listed in Hong Kong as the "first stock of new-style tea drinks", its total market value reached HK$32.347 billion. On August 5, its latest market value was only HK$2.654 billion, shrinking by more than 10 times.

Audi

Audi Group's revenue in the first half of this year was 30.9 billion euros, down 9.5% year-on-year; operating profit was 1.982 billion euros, down 42% year-on-year; net cash flow was 1.13 billion euros, down 39.9% year-on-year. Among them, Audi's sales in China were 322,000 vehicles, down 2% year-on-year. Audi's sales profit margin was 6.4%, down 3.6 percentage points year-on-year.

In the first half of this year, Audi Group delivered 833,000 vehicles, down 8.2% year-on-year, including 5,476 Bentleys and 5,558 Lamborghinis. In 2024, Audi expects to deliver 1.7 million to 1.9 million vehicles, with revenues of 63 billion to 68 billion euros. In addition, Audi lowered its sales profit margin forecast for 2024 to 6% to 8%; by 2027, Audi's sales profit margin will reach 12%.

Bentley

Bentley Motors' revenue in the first half of 2024 was 1.388 billion euros, a year-on-year decrease of 17%; operating profit was 261 million euros, a year-on-year decrease of 33%; return on sales was 18.8%, compared with 23.2% in the same period last year.

In the first half of this year, Bentley Motors delivered a total of 5,476 vehicles in the global market. Among them, the super luxury SUV models Bentayga and Bentayga Long Wheelbase accounted for 41% of Bentley Motors' total sales, the Continental GT and Continental GT Convertible accounted for 34% of the total sales, and the Flying Spur accounted for 25%. Among them, the sales volume in the Chinese market was 1,337 units, a decrease of 28.2% compared with the same period last year.

BMW

BMW Group's second-quarter sales were 36.94 billion euros, down 0.7% year-on-year, and its EBIT was 3.88 billion euros, down 11% year-on-year. The automotive division's revenue was 32.07 billion euros, up 1.4% year-on-year. The second-quarter delivery volume was 618,743 vehicles, down 1.3% year-on-year, lower than the market estimate of 622,754 vehicles.

In the first half of the year, the BMW Group delivered a total of 1,213,276 BMW, MINI and Rolls-Royce brand vehicles in the global market, roughly the same as in 2023. The Chinese market was the market segment with the largest decline in the world, with 375,900 vehicles delivered, a year-on-year decline of 4.2%.

Benz

In the first half of this year, Mercedes-Benz's global sales were 1.1686 million vehicles, a year-on-year decrease of 6%. Mercedes-Benz sedan sales were 959,700 vehicles, a year-on-year decrease of 6%. In the first half of the year, sales in China were 341,500 vehicles, a year-on-year decrease of 9%. In addition, the company's passenger car sales fell 6% year-on-year, of which electric vehicle sales fell 17%.

The sales of Mercedes-Benz E-Class and Mercedes-Benz GLB have declined significantly in China. The sales of Mercedes-Benz E-Class in the first half of the year were only 59,000 units, a year-on-year decrease of 36.2%, and the sales of GLB were 22,000 units, a year-on-year decrease of 46.1%.

Liquor

In the first half of 2024, the consumption demand of the Chinese liquor market showed the characteristics of diversification and strong differentiation, and market breadth competition has become a fact. The best selling prices are 300-500 yuan, 100-300 yuan and 100 yuan and below. At the same time, 80% of enterprises said that the market was cold and the market recovery trend was weak.

In addition, the 2023 annual reports of 20 listed liquor companies show that the total inventory is 149.095 billion yuan, an increase of 16.262 billion yuan year-on-year, of which 19 companies' inventory collectively increased by 151. This shows that although liquor companies have taken measures to reduce inventory in 2023, inventory pressure still exists, and the situation has not been fundamentally improved in the first half of 2024.

Content author: Shen Shuaibo, Jasmine