Global Merchandising Company - CJ O Shoppingcjoshopping.com/ir/data/Annual report_2016.pdfContents...
Transcript of Global Merchandising Company - CJ O Shoppingcjoshopping.com/ir/data/Annual report_2016.pdfContents...
Global Merchandising Company
Contents
Profile
Corporate Profile 03
Chronology 04
CEO Message 06
Financial Highlights 08
Vision & Mission 10
Business Domain 12
2016 at a Glance 14
Financial Section
The Current status of shares
The Current State of a Parent Company, Subsidiariesand Corporate Combination
The Current State of Major Shareholders, Directors and Auditors
Stand alone financial statements
Stand alone Income Statement
Statement of Appropriation of Retained Earnings (Draft)
Consolidated financial statements
Consolidated Income Statement
The Current State of Creditors and Investment
Main Financial Ratio(Based on Stand alone financial statements)
Main Financial Ratio(Based on consolidated financial statements)
An Audit Report by Audit Committee
Audit Report by an Outside Auditor
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CJ O shopping will offer more value than
expected by providing exciting products and
services, in addition to useful programs
and contents that can give a pleasure
and convenience.
O!Surprising, Novel &
Revolutionary
CJ O Shopping
CJ OSHOPPING ANNUAL REPORT 2016
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Chronology
1994 ~2002 2003~2008 1994 10 Selected as a homeshopping channel operator
12 Established Homeshopping TV Corporation
199508 Launched the Korea’s first TV homeshopping show
199611 Changed name of channel from ‘HSTV’ to ‘39 Shopping’
199701 Launched 24/7 live show
199903 Established partnership with 7 state test organizations for the first time in Korea
07 Acquired ISO 9002 for the first time in the industry and changed its name into 39 Shopping
11 Initiated registered transactions on KOSDAQ for the first time in the industry
200006 Acquired by CJ and changed its name into CJ 39 Shopping
09 Opened Gunpo Logistics Center
200101 Established CJ Telenics, a specialized telemarketing company
07 Relocated the HQ into Bangbae-dong
08 Opened CJmall, an Internet shopping mall
200203 Initiated satellite broadcasting Opened the 2nd branch of call center in Busan.
09 Recorded 1 trillion won in sales (based on transactions) and opened Call Center No. 3 in Daejeon
10 Renamed as ‘CJ Homeshopping corp’
12 Ranked 1st in NCSI TV Homeshopping
200311 CJmall acquired ‘BS7799,’ the international information protection certification, for the first time in the shopping mall industry
200404 Opened ‘Dong Bang CJ’ in Shanghai09 Disclosed a TV programming schedule for 2 weeks and initiated pre-order service for the first time in the industry10 Initiated “eTV Homeshopping” service that combines broadcasting with web11 Ranked 1st in the NBCI TV homeshopping sector and the Internet shopping mall sector
200501 ‘Please Order Love,’ a social contribution program, won Excellent Program of the Month from Korea Communications Commission03 Ranked 1st in the K-BPI Internet shopping mall sector by data broadcasting operators 09 CJmall ranked 1st in KS-SQI12 Initiated T-Commerce for the first time in Korea (CJTmall)
200603 Ranked 1st in the (K-BPI) TV homeshopping sector05 CJmall acquired ISO27001, the international security standard06 Acquired Dream City, a broadcasting company09 Acquired Broadband Solutions 12 CJmall received the grand prize in the integrated shopping sector of ‘Web Award Korea 2006’ (Web Award Committee)
200703 Ranked 1st in the K-BPI TV homeshopping sector for 2 consecutive years04 Proclaimed introduction of Consumer Complaint Monitoring System(CCMS)
200801 Acquired CCMS certification for the first time in the industry (Fair Trade Commission)Received City-Rural Interchange Government Incentive President Award in 2007 and the grand prize in the 10th anniversary of NCSI05 Held a proclamation ceremony to introduce ethical management07 Opened ‘CJ Worldis’ (an online travel agency) 08 Completed construction of a new office building in Bangbae-dong 10 Opened TTCJ in Tianjin, China
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2009~2012 2013~2016 200903 Renamed as CJ O Shopping Established ‘Star CJ’ (Presently Shop CJ)
201003 Ranked 1st in the K-BPI TV homeshopping sector for five consecutive years and Korea Marketing Frontier Award in the marketing brand sector
07 Initiated a 24/7 show in ‘Star CJ’ in India
11 Ranked 1st in the NBCI TV homeshopping sector for 5 consecutive years
12 Received KNPS Award in the Internet shopping mall sector
201101 Acquired Prime Shopping, a Japanese homeshopping company, and established CJ Prime Shopping
03 Won Korea Marketing Frontier Award in the global marketing sector
04 Won Korea Service Marketing Award in the service marketing sector and SMBA Merit Award for SME Single PPM Policy
07 Opened ‘SCJ TV’ in Vietnam Opened Channel 2 of ‘Dong Bang CJ’
09 Won Prime Minister Award on Product Safety Day Won Seoul Welfare Award in the excellent corporate social contribution program sector (Seoul Welfare Foundation)
10 Won FAPRA (Federation of Asia-Pacific Retailers Association) Awards in the innovative distribution sector and opened ‘Nam Bang CJ’ in Guangzhou, China
11 Won Korea Distribution Presidential Award (government prize) (GS1 Korea of Korea Chamber of Commerce and Industry)
12 Ranked 1st in the NCSI TV homeshopping sector for 10 consecutive years and 1st in the Internet shopping mall sector for 8 consecutive years
201204 Won Mobile Brand Award in the TV homeshopping sector (Maeil Economic Daily) and ranked 1st in Consumer Quality Satisfaction Award in the mobile shopping sector
06 Opened ‘G”CJ O Shopping’ in Thailand
10 Won 10th Anniversary Beautiful Store Appreciation Award
11 Won Web Award Korea (KIPFA) Excellent e-Trust Company Award (The Ministry of Knowledge Economy & National IT Industry Promotion Agency)
12 Opened ‘MCJ’ in Turkey Excellent Family-Friendly Company (The Ministry of Gender Equality and Family & KMR)
201304 Won Mobile Brand Award in the TV homeshopping sector for 2 consecutive years
05 Launched DMB Channel Opened ‘SCJ’ Studio in Vietnam
10 Opened ‘ACJ’ in the Philippines
201404 Designated as ‘Global Big Buyer Club’ by KITA Acquired Certificate of Company-Specific Approved Exporter for the first time as a large domestic distributor
05 Won Mobile Brand Award in the online shopping mall sector (Maeil Economic Daily) and Excellent Gender Equality Company Award by the Ministry of Employment and Labor
10 Selected as the Best Angel Company in the consumption material sector (e-Daily) Won IR Grand Prize of Korea
12 Won Industry Award on the 51st Trade Day (for supporting SMEs advancing into overseas markets), Excellent Shared Growth Company Award by Korea Commission for Corporate Partnership and the 13th Information Protection Award by The Ministry of Science, ICT and Future Planning and Korea Internet & Security Agency
201504 Renamed as ‘Shop CJ’
05 Launched ‘CJ O Shopping Plus,’ a T-Commerce channel
06 Initiated nationwide one-day delivery for the first time
06 Opened CJ Grand Shopping in Mexico
09 Selected as Excellent Labor Culture Company (The Ministry of Employment & Labor)
12 ‘G"CJ O Shopping’ of Thailand won Trade, Industry and Energy Minister Award (for selling SME products that worth 10 billion won for 3 consecutive years)
201603 Ranked 1st in the K-BPI TV homeshopping sector for 11 consecutive years Won Excellent KOSDAQ Company Award for disclosure.
04 Opened CJ WOW Shop in Malaysia
05 Recorded 1,000 hours in free broadcasting of ‘One Village, One Luxury Product’ and ‘One Company, One Luxury Product’, which aimed to support SMEs and farm houses
09 Established ‘BCJ’, a joint venture for e-Commerce solution in China
10 Won Health & Welfare Minister Award in National Social Welfare Event (for corporate social contribution)
CJ OSHOPPING ANNUAL REPORT 2016
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CEO Message
The company aims to realize 'Trendy Lifestyle Shopper with Value'
while leading a new shopping culture.
6 | 7
Greetings! My name is Min-Heoi Heo, CEO of CJ O Shopping.Thank you for taking the time out of your busy schedule to be present at the 23rd CJ O Shopping General Shareholders’ Meeting. Last year, CJ O Shopping was the leader of the industry in terms of most operating profits attained thanks to its newly introduced management strategy focused squarely on profitability in the stagnant distribution market, while also pursuing external growth. A particularly notable achievement was our remarkable profits obtained from good selling of competitive TV product, successful launcjing of T-commerce, and substantial operation of our online business, CJmall. The number of customers using not only TV channel but also online channel grows, CJ O Shopping is achieving significant results, coinciding with its corporate strategy. The results include Our GMV(Gross merchandising volume) increased by 2.4%YoY to 2.9tril.won, sales declined by 2.1% 1tril.won and operating profit grew 27% to 145bil.won We also expanded into new overseas markets with the establishment of joint venture with Malaysian company, Media Prima, in April, as well as a joint venture with China-based company, Baozun, in September, laying the foundation for successful expansion into the Chinese online marketplace. In pursuit of our company vision“ Trendy Lifestyle Shopper with Value”, CJ O Shopping is striving to become a global merchandising company. This year, we plan to lay the foundation for innovation and growth centered on our company’s exclusive selling product in Korea(below, OnlyOne) and our platform business, while directing our energy towards the following four areas to meet the expectations of the marketplace. Strengthening Product-based BusinessAs the main focal point of the retail industry is gravitating towards products, it is crucial to enhance the competence in merchandising to keep up with the changing trends. To this end, CJ O Shopping aims to further improve its specialty in OnlyOne brands by category, expand investment in enhancing product competitiveness, and pursue bold mergers and acquisitions. In doing so, the company will ensure its competitiveness in the marketplace as it further differentiates its strong distribution platform. Unrivaled Market Leadership Based on Multi-channel MarketingOur platform business will be the leader of the industry based on competitive power of TV products and multi-channel. We will further enhance our main areas of proficiency, which are TV channel and online channel, CJmall, while continuously expanding our multi-channel customer base using both platforms in order to fuel external growth of our business. In our mobile channel, we will improve the service quality of CJmall and will build competitive contents through strategic partnerships and investments. In order to effectively respond to the rapid changes occurring in the distribution industry, we will also focus our strengths on cultivating new business models centered on mobile devices. Additionally, we will utilize T-Commerce, which has the most expansive coverage in the industry, as a solution directed to provide information-based content to young people with the aim of acquiring
them as customers. Pursuing Improvement of Our Global Business Structure and Generating ResultsWith regards to our overseas business, CJ O Shopping will strive to increase profitability and expand our coverage effectively based on the local circumstances of each international region, as well as explore new business opportunities in surrounding countries centering on local strategic points. In addition, we will develop new service-based models differentiated from existing methods used to solid overseas business by centering them on changes in local retail markets, which are becoming ever more mobile-centric. CJ IMC will increase sales through more sales channels and strengthen its organizational structure; scale up on/offline sales of “OnlyOne” products in addition to sales through its TV homeshopping channel; and valiantly strive to increase sales overseas. Establishment of Superb Organizational Culture, Realizing the CJ Management PhilosophyIn 2017, CJ O Shopping will form a dynamic culture of creativity and desire to conquer challenges based on our management philosophy which places emphasis on honesty, passion and creativity. We will also establish a culture of mutual benefit that places our customers, partner companies and shareholders before all else in order to realize our founding philosophy centered upon contribution to national advancement through successful business. Dear, Shareholders! CJ O Shopping is doing its utmost to be a provider of optimized shopping services which fulfill every need of the customer. We will continue to be a company that conquers challenges together with our partners, while striving for mutual benefit and improving corporate value for our shareholders. We will achieve our company vision“Trendy Lifestyle Shopper with Value” while taking the initiative in creating a new kind of shopping culture. We will fulfill our responsibilities as a trend leader that brings new value to shopping.As a frontier of TV homeshopping industry in Korea, CJ O Shopping will put forth new growth models in homeshopping before advancing into the retail and product-related industries. We here at CJ O Shopping, appreciate your unwavering support in our efforts to take new leaps forward in domestic and international markets and exploring new growth engines while overcoming obstacles. It is my sincere hope that each and every shareholder benefits and has an enriching experience on account of our endeavors in the year 2017.
CE
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CJ O Shopping CEO Min-Heoi Heo
CJ OSHOPPING ANNUAL REPORT 2016
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Our sales declined 2.1%YoY to 1trill. won, however, operating profit increased 27.0% YoY to 145bil. won in 2016.
Financial Statements Distinction 23rd 22nd 21st
Income Statement Sales 1,095,911 1,119,375 1,277,324
Operating Profit 144,929 114,111 142,158
Ordinary profit 44,803 86,537 139,391
Net Income 16,082 60,297 100,457
Statement of Financial Position
Total Assets 1,111,514 1,176,225 1,178,055
Total 428,379 494,789 539,101
Total capital 683,135 681,436 638,954
Financial Highlights
Financial Statements
(Unit: 1 million won)
(Unit: 1 million won)
Sales
23rd 22nd 21st23rd 22nd 21st
1,111,514
Total Assets
144,929
114,111
142,158
Operating Profit
23rd 22nd 21st
1,095,9111,119,375
1,277,324
300,000
0
600,000
900,000
1,200,000
1,500,000
30,000
60,000
90,000
0
120,000
150,000
1,176,2251,178,055
200,000
400,000
600,000
800,000
1,000,000
0
1,200,000
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Sales breakdown
Fin
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11.1 27.4
20.8
12.2 26.0
20.2
9.9
12.3
25.9
22.7
9.03.8
13.3
12.415.2
10.13.9
8.7
15.2
12.9
7.1
Product portfolio(based on gross merchandising volume)
(Unit: %)
23rd 22nd 21st
● Apparel
● Household goods
● Electronic
● Hair/Cosmetics
● Fashion/Jewely
● Interior
● Others
● Apparel
● Household goods
● Electronic
● Hair/Cosmetics
● Fashion/Jewely
● Interior
● Others
● Apparel
● Household goods
● Electronic
● Hair/Cosmetics
● Fashion/Jewely
● Interior
● Others
25.9%
22.7%
12.3%
15.2%
11.1%
9.0%
3.8%
27.4%
20.8%
13.3%
12.4%
12.2%
10.1%
3.9%
26.0%
20.2%
15.2%
12.9%
9.9%
8.7%
7.1%
77.0
18.74.3
76.4
19.0 4.6
63.5
30.8
16.9
Business (Unit: %)
23rd 22nd 21st
● Profits from Fees
● Product Sales
● Ads/Other Sales
● Profits from Fees
● Product Sales
● Ads/Other Sales
● Profits from Fees
● Product Sales
● Ads/Other Sales
77.0%
18.7%
4.3%
76.4%
19.0%
4.6%
63.5%
30.8%
5.7%
63.3
28.5
6.6 1.6
63.7
25.3
9.21.8 2.1
64.9
16.1
16.9
Channel
(Unit: %)
23rd 22nd 21st
● TV homeshopping
● Mobile & Others
● Internet
● Catalog
● TV homeshopping
● Mobile & Others
● Internet
● Catalog
● TV homeshopping
● Mobile & Others
● Internet
● Catalog
63.3%
28.5%
6.6%
1.6%
63.7%
25.3%
9.2%
1.8%
64.9%
16.1%
16.9%
2.1%
CJ OSHOPPING ANNUAL REPORT 2016
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Vision
Trendy Lifestyle Shopper with Value
Leading the trends and directing lifestyles for the benefit of the customers
Providing optimized solutions catered to individual lifestyles
Providing products and services of excellent value at reasonable costs
Mission
Global Merchandising Company
Through diverse media channels, provide enriching experiences and value for
customers worldwide by suggesting OnlyOne product brands that lead the trendy
lifestyle
Strategy
Increasing global sales through the IMC sales channel and growth centered on
OnlyOne product/brand business enhancement
Expanding to diverse channels in the global marketplace with high growth potential,
starting with the TV platform
Becoming an ‘Omni-Channel’ business through expansion into new platforms and
increasing associative connections with company channels
Securing new growth engines through proactive mergers and acquisitions
Vision & Mission
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CJ OSHOPPING ANNUAL REPORT 2016
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Business Domain
TV HomeshoppingOnline Shopping MallCatalogT-CommerceMobile CommerceGlobal Business
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TV Homeshopping
Since 1995 when CJ O Shopping first launched TV
homeshopping channel in Korea, we have led the
cultural direction of the retail industry by creating a new,
enjoyable shopping culture that can be experienced
regardless of time and location. We have been a frontier
in the industry as we’ve strived to create differentiated
business models in order to enhance our competitiveness
in selling of exclusive products and in broadcasting, while
emerging as Korea’s best homeshopping service
provider by the execution of our combined communication
strategies. CJ O Shopping is demonstrating its leadership
in the TV homeshopping industry through diverse
activities, such as development of new and high-value
products and‘OnlyOne’brands.
T-Commerce
In May 2015, CJ O Shopping launched the T-Commerce
channel, CJ O Shopping Plus, for the purpose of
providing a customer-centered, two-way data shopping
service. CJ O Shopping Plus not only offers TV products,
but also allows consumers to enjoy the pleasure of
looking through the products at the moment desired by
them through the VOD service. We have also created
SMB Event Hall, where SMEs can have their products
marketed for free and use it as a stepping stone to their
future success, while we may discover new products.
Online Shopping Mall
CJmall spare no effort in continually developing new
services and securing a diversity of product groups. We
provide a variety of specialized websites, which
introduce the latest products by category and provide
the users with utmost convenience. Through stringent
quality control, reasonable prices, and reliable services,
CJmall is becoming the most favored shopping mall
among female customers in their 20’s and 30’s.
Mobile Commerce
CJ O Shopping is doing its absolute utmost to secure
new business models in response to the changing
trends in media. Since the release of an I phone
application first in the industry in April 2010, CJ O
Shopping has continued to invest and grow in the
mobile-based shopping industry. In order to create
great shopping environments for customers, we are
persistently working on our mobile services by re-
organizing business and product composition and
are making consistent efforts to provide diverse
shopping-related content optimized to individual
customers.
Catalog
CJ O Shopping is releasing products in various different
categories, including underwear, fashion, household
items and foods, and continues to receive favorable
responses as it provides customers with a pleasurable
shopping experience. It provides customers with
convenient and personalized shopping services suited
to their individual lifestyles, which they can access at
any time and in any place. Also, CJ O Shopping brings
to life a truly exciting shopping experience, which
provides customers with unmissable benefits and
diverse content.
Global Business
In 2004, CJ O Shopping was the first in the industry to
open an overseas platform in Shanghai, China, and
became a trusted first-rate retail channel that enables
customers to buy with confidence. The company also
established overseas platforms in India in 2009 and in
Vietnam in 2011, completing an Asia homeshopping belt.
In 2012, CJ O Shopping advanced into Turkey and into
Philippines in subsequent year. CJ O Shopping was the
first Korean company in the industry to make forays into
Mexico in June 2015, and is fully committed to promote
Korean-style homeshopping to international markets
outside of Asia.
CJ OSHOPPING ANNUAL REPORT 2016
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2016 at a Glance
Advancement into the Malaysian Homeshopping MarketIn January 2016, CJ O Shopping established a joint venture with Media Prima, a promising media group in Malaysia. Based on the vast experience in the TV homeshopping industry at home and overseas, CJ O Shopping takes charge of practical management (including CEO), while Media Prima provides the infrastructure by utilizing its extensive experience in production and broadcasting content. On April 1, 2016, CJ WOW SHOP was launched in a way known as Time Slot, which is airing homeshopping channel on public TV program channel. Sixteen out of the seventeen products introduced on the show were manufactured by Korean SMEs, which significantly contributed to the expansion of overseas sales routes of their products. By offering customer-centric services and entirely new shopping experiences, CJ O Shopping is bringing tremendous innovation to the market.
Recorded 1,000 Hours of Free Broadcasting for SMEs As of April 2016, CJ O Shopping recorded one thousand hours of accumulated free broadcasting to support sales routes of SMEs and farming and fishing villages.‘One-Village, One-Luxury Product’, a program first launched in the industry in August 2007, was developed to facilitate sales of harvested, livestock, and fisheries products in the domestic market. Another program called‘One-Company, One-Luxury Product’modeled after the‘One-Village, One-Luxury Product’, was established in 2012 to help SMEs in expanding sales routes. In particular, the‘One-Company, One-Luxury Product’ emerged as a representative of SME-support-program that SMBA, the Korea Commission for Corporate Partnership, and four other homeshopping companies (GS, Lotte, Hyundai, and CJ O Shopping) established an agreement to support the sales of SME products by jointly airing free broadcasting for SME products.
Dedicated Program for Korean Products in Homeshopping in Vietnam and Thailand As a result of Korean Wave occurring in Southeast Asia, CJ O Shopping has developed a program dedicated to introduce Korean products in Vietnam and Thailand with the aim of proactively selling the products. Since July 2016, SCJ of Vietnam has aired total of thirty Korean products, including kitchen utensils, healthcare products, and hair & beauty products, under the weekly program called Golden Zone for Korean Products. Also G"CJ of Thailand broadcasted the primetime show, GURU Korea once a week since last August. The sales of the products that were introduced during the show, a total of twelve, has increased by 30% compare to the initial stage.
Advancement into the Chinese e-Commerce Solution Sector Joining forces with Baozun, one of the largest partners of Alibaba, CJ O Shopping launched an e-Commerce solution business centered on Korean brands product. CJ O Shopping and Baozun established the joint venture of BCJ (Baozun-CJ E-commerce) by investing $6.7 million at a ratio of 49% to 51% each. CJ O Shopping takes charge of management (CEO), product development, and sourcing of BCJ, while Baozun is in charge of product distribution, marketing, logistics, and IT by utilizing an excellent local platform network and infrastructure. It is the plan of CJ O Shopping to lay the foundation for more convenient advancement into the online market in China by offering services in various areas, including sales, marketing, logistics, and CS, to domestic SMEs.
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Operation of Market Exploitation Team to Help SMEs Advance into Overseas Markets In November 2016, CJ O Shopping’s‘Homeshopping Market Exploitation Team Event’was held in Ho Chi Minh City in Vietnam over four days to celebrate its 3rd anniversary. Fifteen SMEs, which desire to enter the Vietnamese and other Southeast Asian markets, have participated in the event. The event offered the opportunity to discuss about each country’s favorable products and entry strategy with MDs from‘SCJ’of Vietnam and‘CJ IMC Southeast Asia, a product supply subsidiary of CJ O Shopping responsible for providing Korean products to major ASEAN countries, such as Thailand, Malaysia and the Philippines.
Reception of Health & Welfare Minister Award Organized by Korea National Council on Social Welfare CJ O Shopping received the Health & Welfare Minister Award at the 2016 National Social Welfare Sharing Event last October for its contributions to expand a culture of caring and sharing through a fund-raising event broadcasted on TV, as well as volunteer activities conducted by employees. Using the special characteristics of homeshopping, the broadcasting retail business, CJ O Shopping has aired Order Your Love, a TV fund-raising program for 140 times since 2004 and have donated the funds to Social Welfare Society, Inc. and other social organizations to support the living expenses, medical costs, and educational expenses of the underprivileged classes. As of 2015, the company have donated cash and goods worth total of KRW 6 billion to help those who need support and care, and 70% of employees have volunteered for 9 hours per annum.
Launch of an Offline Store within a Department Store for the First Time in the Industry In April 2016, CJ O Shopping opened STYLE ON AIR +, an offline shop located inside a department store, for the first time in the homeshopping industry. Since STYLE ON AIR + in AK Plaza in Suwon is placed on the same floor as designer brands for women, it is frequently visited by female customers in their 20’s and 30’s. High-quality products, classified in six categories of fashion, beauty, kitchen, lifestyle, travel items, and foods, on a par with those sold in upscale department stores are displayed to suggest new lifestyles to customers.
Launching of the Casual Golf Wear Brand, Jean-Michel BasquiatBased on a license contract with the Jean-Michel Basquiat Foundation, CJ O Shopping exclusively launched the casual golf-wear brand, Jean-Michel Basquiat.‘Jean-Michel Basquiat’is a genius graffiti artist based in New York, who has been cited as‘Black Picasso’as he led the artistic field of the U.S. in the 1980s. CJ O Shopping plans to choose from his artworks to use as seasonal themes and reflect these in our products to improve design and material and to create a premium casual golf wear brand.
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CJ OSHOPPING ANNUAL REPORT 2016
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Main business purpose of the company
Financial Section
CJ OSHOPPING ANNUAL REPORT 2016
1. Comprehensive cable broadcasting business
2. Production and supply of comprehensive cable
broadcasting-related business
3. Comprehensive cable broadcasting ads and cultural PR business
4. Shareholding business aimed to control business of subsidiaries
through equity holding
5. Financial & administrative support for subsidiaries
(including a subsidiary of subsidiaries)
6. Administrative support for joint development of products and common utilization of sale, facility and IT systems along with subsidiaries
7. Purchase and supply of overseas programs
8. Exchange with domestic and foreign broadcasters and producers
9. Manufacture, wholesale and retail of various products
10. Mail-order business
11. e-Commerce
12. Sale of lifestyle necessities
13. Food processing & dressmaking sale
14. Consignment, sale and brokerage of farm, fisheries and livestock products
15. Liquor brokerage
16. Cafeteria
17. Retail service and consignment
18. Tourism business including travel business/travel agency
19. Operation of sports & leisure facilities
20. Storage and warehouse
21. Rental & management service for real estate, machinery and equipment
22. Organization, sponsorship and production agency for events and
cultural events
23. Education & publication business, production of video, records and
tapes and domestic and overseas sale
24. Manufacture and sale of products and rental of trademarks in accordance with Trademark Act
25. Rental of program production facilities, training facilities & equipment
26. Database-related facility investment and operation
27. Collection, processing and sale of information at home and abroad
28. Development of software and system and provision of services
29. Insurance agency
30. Research consultation on opinion poll and research information database service
31. Sale of medical supplies
32. Production of ads and agency
33. Mobile communication device agency
34. Marriage and move service
35. Internet lottery sale agency
36. Job information provider
37. Internet hosting and service
38. Imported auto sale & agency
39. Cosmetics manufacture & sale
40. Door-to-door sale
41. Real estate sale agency
42. Other wholesale & retail
43. Import & export related to each of the above items
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The Current status of shares
The Current State of a Parent Company, Subsidiaries and Corporate Combination
• The Current State of a Parent Company
※ Not Applicable (A parent company owns more than 50% of issued shares)
• The Current State of Subsidiaries(Unit: Share, %)
Company Name Location Capital Main Business The Number of Shares Rate of Shareholding
CJ Hello Vision Corp. Korea 193,617 mil.won Cable Broadcasting 41,756,284 53.92
CJ Telenics Corp. Korea 3,500mil.won Manpower Supply 700,000 100
Super Race Corp. Korea 1,816 mil.won Exhibition & Event Agency 358,800 98.79
CMI Holdings Ltd. China HKD 355mil Overseas Corporation Investment & Management 70,972,510 100
CJ Prime Shopping Inc. Japan JPY 98mil Wholesale & Product Brokerage 8,945,800 99.78
※ The company recorded more 50% in the rate of shareholding
• The Current State of Concurrent Position of Executives in a Parent Company and Subsidiaries
Executives Holding Position Concurrently Concurrent Company Remarks
Name Position Company Name Position
Min-Heoi Heo CEOCJ Cheil Jedang Corp. Inside Director -
CJ Health Care Corp. Inside Director -
In-su Lee Inside Director CJ Telenics Corp. CEO -
Type of share Number of shares Dividend per share Face value per share
Ordinary share 6,215,518 2,500 won 5,000 won
CJ OSHOPPING ANNUAL REPORT 2016
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The Current State of Major Shareholders, Directors and Auditors
• The Current State of Major Shareholders(Unit : Share, %)
Shareholder Name The Number of SharesRate of
Shareholding Base DateTransaction with the
Company
CJ Corp. 2,486,214 40.00% 2016.12.31 -
NPS1) 718,329 11.56% 2016.12.31 -
Alianz Global Investors Asset Management 2) 503,019 8.09% 2016.09.05 -
Korea Value Asset Management 3) 313,674 5.05% 2016.11.22 -
1) Based on public notification (NPS, 2017.01.04)
2) Based on public notification (Alianz Global Investors Asset Management, 2016.09.08)
3) Based on public notification (Korea Value Asset Management, 2016.11.23)
• The Current State of Directors and Auditors(As of Dec. 31, 2016)
Distinction of directors Name (Date of Birth) Obligation or Shared Responsibility Position Transactions with the
Company
Inside
Min-Heoi Heo (1962.03) Present CEO of CJ O Shopping CEO None
Hyun-jae Shin (1961.04) Present General Executive Director Senior Vice President None
Seung-ro Yun (1962.03) Present Global Business Director of CJ O Shopping Vice President None
In-su Lee (1964.04) Present CEO of CJ Telenics Vice President None
Outside
Jae-cheon Kim (1954.11) Present Kim Jae-cheon Tax & Accounting Firm Audit Committee Chair None
Jong-bin Kim (1947.09) Legal Advisor with Hwawoo Law Office Audit Committee Member None
In-gyu Kim (1950.02) Chair of Korean War Memorial Foundation Audit Committee Member None
Item The end of the 23rd term (current) The end of the 22nd term (previous)
Assets
Current Assets 340,325,172,072 352,607,396,393
Cash and Cash Equivalent 29,897,203,080 197,578,100,259
Short-term Financial Product 147,587,511,906 22,680,000,000 Financial Assets at Fair Value Through Profit or Loss 2,066,214,617 2,000,339,726 Accounts Receivables and Other Receivables 115,731,038,277 91,714,550,083
Inventory Assets 35,603,793,478 31,131,061,262
Others Financial Assets - 1,534,500,000
Stand alone financial statements
23rd : As of Dec. 31, 201622nd : As of Dec. 31, 2015
(Unit : Won) CJ O Shopping
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Others 9,439,410,714 5,968,845,063
Non-Currents Assets 771,189,185,079 823,618,150,677
Long-term Financial Product 4,225,988,094 1,413,500,000 Available-for-Sale Financial Assets 119,821,180,205 125,531,302,404
Investment in Subsidiaries 434,456,197,179 444,580,033,723 Investment in Affiliated Companies 16,075,814,317 16,954,214,317
Investment in Joint Companies 53,553,704,845 96,902,361,166
Tangible Assets 104,540,236,180 105,268,024,904
Intangible Assets 35,190,112,629 30,968,360,504
Others Financial Assets 1,159,325,969 1,786,514,119
Others 140,298,333 213,839,540
Deferred Corporate Tax Assets 2,026,327,328 -
Total Assets 1,111,514,357,151 1,176,225,547,070
Liabilities
Current Liabilities 420,886,861,201 435,013,131,156 Accounts Payable & Other Payables 119,968,605,523 103,573,073,988
Short-term Borrowings - 6,966,438,511
Current portion of bonds 49,988,216,817 109,926,831,055 Current Corporate Tax Liabilities 21,186,343,298 15,747,375,054
Estimated Liabilities 4,139,889,967 5,427,205,883
Deferred Profits 1,906,677,333 1,270,362,747
Others Fiancial Assets 70,000,000 -
Others 223,627,128,263 192,101,843,918
Non-Current Liabilities 7,492,367,012 59,776,131,911
Bonds - 49,922,026,608
Defined BenefitLiabilities 7,492,367,012 8,676,970,224
Deferred Corporate Tax Liabilities - 1,177,135,079
Total Liabilities 428,379,228,213 494,789,263,067
Shareholder's epuity
Stock capital 31,077,590,000 31,077,590,000
Capital surpus 66,353,502,058 66,353,502,058
Retained earnings 564,136,496,217 563,585,106,226
Others 21,567,540,663 20,420,085,719
Total Shareholder's epuity 683,135,128,938 681,436,284,003
Total Liabilities & Shareholder's epuity 1,111,514,357,151 1,176,225,547,070
Item The end of the 23rd term (current) The end of the 22nd term (previous)
CJ OSHOPPING ANNUAL REPORT 2016
20
Stand alone Income Statement
23rd: From Jan. 1, 2016 to Dec. 31, 201622nd: From Jan. 1, 2015 to Dec. 31, 2015
CJ O Shopping (Unit : Won)
Item 23rd (Current) 22nd (Previous)
Operating Revenue 1,095,911,239,675 1,119,374,858,317
Operating Expense 950,981,861,466 1,005,263,718,770
Cost of Employee Pay 120,401,962,810 121,022,904,747
Depreciation Cost 7,177,998,298 7,852,259,627
Amortization Expenses on Intangible Assets 6,033,592,275 6,511,862,096
Outsourcing Costs 232,121,961,065 232,563,926,396
Product Costs 124,561,924,166 157,638,467,487
Other Operating Costs 460,684,422,852 479,674,298,417
Operating Profit 144,929,378,209 114,111,139,547
Financial Profit 10,725,120,889 10,206,763,884
Financial Cost (4,115,675,700) (6,065,318,676)
Other Non-Operating Profits 245,021,330 958,934,098
Other Non-Operating Costs (106,981,174,294) (32,674,181,986)
Earnings Before Taxes 44,802,670,434 86,537,336,867
Costs of Corporate Tax 28,721,065,238 26,239,859,213
Net Profit 16,081,605,196 60,297,477,654
Other Comprehensive Profit & Loss 690,234,739 (6,580,035,357)
Items That May Be Subsequently Reclassified to the Current Profit & Loss (457,220,205) (1,022,633,198)
Remeasurements of the Net Defined Benefit Liability (603,192,883) (1,349,120,314)
Corporate Tax Pertaining to Items That May Not Be Reclassified into the Current Profit & Loss
145,972,678 326,487,116
Items That May Be Subsequently Reclassified into the Current Profit & Loss
1,147,454,944 (5,557,402,159)
Unrealized gains & losses on valuation of available-for-sale financial assets 1,513,792,801 (7,331,665,118)
Corporate Tax Pertaining to Items That May Be Reclassified into the Current Profit & Loss
(366,337,857) 1,774,262,959
Comprehensive Current Profit 16,771,839,935 53,717,442,297
Earnings Per Share (Unit: Won)
Net Earnings Per Basic Share 2,667 10,013
Diluted Net Earnings Per Share 2,667 10,013
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Statement of Appropriation of Retained Earnings (Draft)
Consolidated financial statements
23rd: From Jan. 1, 2016 to Dec. 31, 2016/Expected Date of Disposal: Mar. 24, 201722nd: From Jan. 1, 2015 to Dec. 31, 2015/Date of Confirmed Disposal: Mar. 18, 2016
CJ O Shopping (Unit : Won)
Item 23rd (Current) 22nd (Previous)
Ⅰ. Surplus Appropriation 538,856,750,867 538,326,493,376
1. Previous Deferred Surplus Appropriation 523,232,365,876 479,051,648,920
2. Net Profit 16,081,605,196 60,297,477,654
3. Remeasurements of the Net Defined Benefit Liability (457,220,205) (1,022,633,198)
Ⅱ. Appropriations of Retained Earnings 15,072,995,000 15,094,127,500
1. Profit Reserve - 21,132,500
2. Dividend 15,072,995,000 15,072,995,000
Cash Dividend (Dividend Per Ordinary (Rate)):
15,072,995,000 15,072,995,000 Current : 2,500Won(50%),
Previous : 2,500Won(50%)
Ⅲ. Subsequent Deferred Surplus Appropriation 523,783,755,867 523,232,365,876
23rd: As of Dec. 31, 2016 22nd: As of Dec. 31, 2015
CJ O Shopping (Unit : Won)
Item The end of the 23rd term (current) The end of the 22nd term (previous)
Assets
Current Assets 689,027,934,725 758,534,402,154
Cash and Cash Equivalent 103,226,351,205 325,848,637,455
Short-term Financial Product 147,587,511,906 22,730,000,000 Financial Assets at Fair Value Through Profit or Loss 66,000,919 - Accounts Receivables and Other Receivables 353,924,772,597 320,061,700,241
Inventory Assets 62,168,236,753 61,572,877,092
Current Corporate Tax Assets - 34,635,219
Others Financial Assets 2,519,645,635 9,808,694,237
Others 19,535,415,710 18,477,857,910
Non-Current Assets 2,064,565,569,206 2,229,698,002,209
Long-term Financial Product 4,228,988,104 2,322,024,526 Long-term Accounts Receivables and Other Receivables 19,599,489,821 34,671,336,739
CJ OSHOPPING ANNUAL REPORT 2016
22 Available-for-SaleFinancial Assets 121,915,498,279 127,317,136,506
Deferred income tax Assets 23,093,879,702 19,256,274,744
Investment in Associates 83,027,772,249 68,819,009,029
Investment in Subsidiaries 28,978,321,633 28,080,843,008
Tangible Assets 814,913,835,302 859,381,263,799
Investment Property 9,863,651,564 16,749,837,711
Business Rights 708,344,578,781 787,047,335,059
Intangible Assets 225,566,535,141 261,194,668,095
Others Financial Assets 17,022,741,766 18,902,718,149
Others 8,010,276,864 5,955,554,844
Total Assets 2,753,593,503,931 2,988,232,404,363
Liabilities
Current Liabilities 1,017,274,895,867 988,400,541,102 Accounts Payable & Other Payables 317,359,746,275 285,073,540,563
Short-term Borrowings 157,000,000,000 23,922,590,087 Current Portion of Long-term Liabilities 168,152,416,913 215,765,393,778
Current portion of bonds 99,975,017,567 209,878,262,764
Current Tax Liabilities 21,315,167,855 24,350,791,168
Estimated Liabilities 5,217,606,603 6,652,514,170
Deferred Revenue 1,906,677,333 2,148,733,637
Others Financial Assets 3,643,147,818 2,007,278,696
Others 242,705,115,503 218,601,436,239
Non-Current Liabilities 373,429,983,628 649,702,418,952 Long-term Trade Payable and Other Payables 1,475,973,795 1,206,609,189
Long-term Borrowings 1,991,620,000 168,991,708,089
Corporate Bonds 299,505,586,025 399,122,494,207 Net Defined Benefit Liabilities 16,048,022,535 17,808,093,808
Deferred Tax Liabilities 54,050,635,585 59,710,669,089
Others Financial Assets 358,145,688 2,862,844,570
Total Liabilities 1,390,704,879,495 1,638,102,960,054
Shareholder's epuity
Capital Reverting to the Owner of a Controlling Company 917,384,053,922 911,871,512,160
Stock capital 31,077,590,000 31,077,590,000
Capital surpus 72,555,614,522 73,557,728,710
Retained earnings 811,867,419,363 805,413,658,945
Others 1,883,430,037 1,822,534,505
Non-controlling Stake 445,504,570,514 438,257,932,149
Total Shareholder's epuity 1,362,888,624,436 1,350,129,444,309 Total Liabilities & Shareholder's epuity 2,753,593,503,931 2,988,232,404,363
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Consolidated Income Statement
23rd: As of Dec. 31, 2016 22nd: As of Dec. 31, 2015
CJ O Shopping (Unit : Won)
Item 23rd (Current) 22nd (Previous)
Sales 2,208,596,188,143 2,308,605,389,638
Cost of Sales 999,565,154,741 1,071,969,495,253
Gross Profit of Sales 1,209,031,033,402 1,236,635,894,385 Selling and AdministrativeExpenses 1,030,150,876,923 1,026,981,176,067
Operating Profit 178,880,156,479 209,654,718,318
Financial Profit 13,157,129,537 14,058,086,303
Financial Cost 27,918,921,065 35,951,930,349 Investment Stocks Accounted inEquity Method (Loss) (11,131,949,400) 595,048,219
Other Non-Operating Profit 12,416,824,042 11,654,101,740
Other Non-Operating Cost 103,267,953,069 37,689,296,552
Earnings Before Taxes 62,135,286,524 162,320,727,679
Cost of Corporate Tax 29,552,180,851 50,302,188,913
Net Profit 32,583,105,673 112,018,538,766
Other Comprehensive Income (1,994,005,352) (10,660,975,380)
Items That May Be Subsequently Reclassified to the Current Profit & Loss (2,275,449,523) (4,669,016,211)
Re-measurements of NetDefined Benefit (2,964,413,952) (6,371,510,190)
Items That Will Not Be Reclassified to Profit or Loss 688,964,429 1,702,493,979
Items Reclassified asCurrent Profit or Loss 281,444,171 (5,991,959,169)
Unrealized gains & losses on valuation of available-for-sale financial assets 1,523,712,893 (7,461,818,620) Unrealized translation gains & losses on foreign operation (322,908,339) (827,474,102) Unrealized gains & losses on valuation of cash flow hedge 716,969,383 1,662,806,867
Capital Change in Equity Method (1,131,453,316) (721,183,106)
Corporate Tax Pertaining to Items that may be reclassified to the current profit or loss
(504,876,450) 1,355,709,792
Total ComprehensiveCurrent Profit 30,589,100,321 101,357,563,386
Attributable Net Profit 32,583,105,673 112,018,538,766
Owner of a Controlling Company 23,428,704,470 84,740,966,063
Non-Controlling Interest 9,154,401,203 27,277,572,703 Attributable Comprehensive Income 30,589,100,321 101,357,563,386
Owner of a Controlling Company 21,587,650,950 75,233,831,088
Non-Controlling Interest 9,001,449,371 26,123,732,298
Earning Per Share
Net Profit Per Basic Share 3,886 14,073
Diluted Net Profit Per Share 3,886 14,073
CJ OSHOPPING ANNUAL REPORT 2016
24
CJ OSHOPPING ANNUAL REPORT 2016
The Current State of Creditors and Investment
• The current state of major creditors(As of Dec. 31, 2016, Unit:bil.won, Share, %)
Creditor name Credit The Number of Shares Rate of Shareholding Remarks
CJ Korea Express Corp. 9.3 - - Transport Service Cost
CJ Olive Networks Corp. 8.8 - - System DevelopmentService Cost
CJ Telenics Corp. 3.6 - - Telephone Consulting Service Cost
• The Current State of Investment in the Company, Subsidiaries and Other Companies
(As of Dec. 31, 2016, Unit:bil.won, Share, %)
Company nameInvestment &
Shareholding Company
Detailed Investment
The Number of Shares Rate of Shareholding
New Business Investment Partnership No. 13 TW CJ O Shopping Corp. - 45.00
SMB Coexistence Investment Partnership CJ O Shopping Corp. - 95.00
CJ Hello Vision Corp. CJ O Shopping Corp. 4,175,628 53.92
CJ Telenix Corp. CJ O Shopping Corp. 70,000 100.00
Super Race Corp. CJ O Shopping Corp. 35,880 98.79
CJ Worldis Corp. CJ O Shopping Corp. 800,000 49.99
Dong Bang CJ Co., Ltd CJ O Shopping Corp. - 15.84
CMI Holdings Ltd. CJ O Shopping Corp. 7,097,251 100.00
SHOP CJ Network Private Ltd. CJ O Shopping Corp. 22,916,455 50.00
CJ PRIME SHOPPING INC. CJ O Shopping Corp. 894,580 99.78
SCJ TV Shopping Company Ltd. CJ O Shopping Corp. - 50.00
GMM CJ O Shopping Company Ltd. CJ O Shopping Corp. - 49.00
CJ Mediasa Shopping & Retail Co., Ltd. CJ O Shopping Corp. 2,850,000 50.00
CJ Mediasa Television Broadcasting Co., Ltd. CJ O Shopping Corp. 450,000 50.00
MP CJ O SHOPPING SDN. BHD. CJ O Shopping Corp. 2,107,000 49.00
Shanghai Baozun-CJ E-Commerce Co., Ltd. CMI Holdings Ltd. - 49.00
ACJ O Shopping Corporation CJ O Shopping Corp. 10,250,000 50.00
Televisa CJ Grand, S.A. DE C.V. CJ O Shopping Corp. 10,875 50.00
CJ Vietnam Co., Ltd CJ O Shopping Corp. - 10.00
TianTian CJ Homeshopping Co., Ltd CMI Holdings Ltd. - 44.00
SMC-CJ O Shopping Corp.. CMI Holdings Ltd. - 23.00
Oshishang Trading Co., Ltd. CMI Holdings Ltd. - 44.46
CJ IMC Co., Ltd. CMI Holdings Ltd. - 100.00
CJ IMC Vietnam CMI Holdings Ltd. - 100.00
CJ IMC Thailand CMI Holdings Ltd. - 100.00
CJ IMC S.A. DE C.V. CMI Holdings Ltd. 10 99.00
CJ IMC MALAYSIA SDN.BHD. CMI Holdings Ltd. - 100.00
Cable TV VOD Corp.( former Home Choice corp.) CJ Hello Vision Corp. 28,400 17.75
Highway Solar Corp. CJ Hello Vision Corp. 9,450 21.00
MJ Cine Corp. CJ Hello Vision Corp. 18,000 30.00
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Main Financial Ratio(Based on Stand alone financial statements)
• Stability Index
Distinction Formula 23rd 22nd Remarks
Current Ratio Current Assets/Current Liabilities 80.86% 81.06%
Debt Ratio Total Debts/Shareholders' Equity 62.71% 72.61%
Dependence on Debt Debts/Total Assets 4.50% 14.18%
Interest Coverage Ratioagainst Operating Profit Operating Profits/Interest Expense 41.81times 22.81times
• Profitability Index
Distinction Formula 23rd 22nd Remarks
Operating Profit Ratio Operating Profits/Sales 13.22% 10.19%
Ratio of Net Income to Sales Net Income/Sales 1.47% 5.39%
Return on Assets Net Income/Total Assets 1.45% 5.13%
Return on Equity Net Income/Equity Capital 2.35% 8.85%
• Growth & Activity Index
Distinction Formula 23rd 22nd Remarks
Sales Growth Rate (Current Sales/Previous Sales)-1 -2.10% -12.37%
Operating Profit Growth Rate
(Current Operating Profit/Previous Operating Profit)-1 27.01% -19.73%
Net Income Growth Rate(Net Income/Previous Net Income)-1 -73.33% -39.98%
Total AssetsGrowth Rate
(Total Assets at the End of Current Term /Total Assets at the End of Previous Term)-1
-5.50% -0.16%
Assets Turnover Sales/Average Total Assets 0.96times 0.95times
CJ OSHOPPING ANNUAL REPORT 2016
26
Main Financial Ratio(Based on consolidated financial statements)
• Stability Index
Distinction Formula 23rd 22nd Remarks
Current Ratio Current Assets/Current Liabilities 67.73% 76.74%
Debt Ratio Total Debts/Shareholders' Equity 102.04% 121.33%
Dependence on Debt Debts/Total Assets 26.39% 34.06%
Interest Coverage Ratioagainst Operating Profit Operating Profits/Interest Expense 6.95times 6.06times
• Profitability Index
Distinction Formula 23rd 22nd Remarks
Operating Profit Ratio Operating Profits/Sales 8.10% 9.08%
Ratio of Net Income to Sales Net Income/Sales 1.48% 4.85%
Return on Assets Net Income/Total Assets 1.18% 3.75%
Return on Equity Net Income/Equity Capital 2.39% 8.30%
• Growth & Activity Index
Distinction Formula 23rd 22nd Remarks
Sales Growth Rate (Current Sales/Previous Sales)-1 -4.33% -11.37%
Operating Profit Growth Rate
(Current Operating Profit/Previous Operating Profit)-1 -14.68% -10.57%
Net Income Growth Rate(Net Income/Previous Net Income)-1 -70.91% 5.89%
Total AssetsGrowth Rate
(Total Assets at the End of Current Term /Total Assets at the End of Previous Term)-1
-7.85% -5.25%
Assets Turnover Sales/Average Total Assets 0.77times 0.75times
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An Audit Report by Audit Committee
To shareholders and the board of directors of CJ O Shopping
The audit committee audited accounting and business of CJ O Shopping in the 23rd fiscal year (from January 1,
2016 to December 31, 2016) and reports the result as follows.
1. Overview of a method of audit
It examined the accounting ledger and related documents for the purpose of accounting audit, reviewed financial statements, consolidated financial statements and supplementary schedules and applied comparison, due diligence, observation,
confirmation and other appropriate audit procedures if it is deemed necessary.
It attended the board of directors’meetings and other important meetings for the purpose of audit, received reports from directors on business activities, examined documents related to significant projects and thoroughly inspected the contents through the use of appropriate methods.
2. Matters related to statement of financial position, consolidated statement of financial position, comprehensive income statement, comprehensive income statement and others
Statement of financial position, consolidated statement of financial position, comprehensive income statement and comprehensive income statement properly indicate financial status and managerial achievements of the company in accordance with laws and regulations and the articles of association.
3. Matters related to statement of appropriation of retained earnings (draft)
Statement of appropriation of retained earnings (draft) was established in consideration of financial status and other circumstances
of the company in accordance with laws and regulations and the articles of association.
4. Matters related to an annual report
An annual report properly indicates corporate situations in accordance with laws and regulations and the articles of association.
Jae-cheon Kim, Chairman of Audit Committee
Mar. 3, 2017CJ O Shopping
CJ OSHOPPING ANNUAL REPORT 2016
28
Audit Report by an Outside Auditor
CJ OSHOPPING ANNUAL REPORT 2016
Dear shareholders and the Board of Directors of CJ O Shopping,
We audited the separately attached consolidated financial statement of CJ O Shopping and its subsidiaries. The consolidated financial statement consists of the present consolidated statement of financial position from December 31, 2016 to December 31, 2015, consolidated statement of comprehensive income, consolidated statement of changes in shareholders’ equity and consolidated cash flow statement, a summary of significant accounting policies, and other descriptive information.
The Management’s Responsibilities for Consolidated Financial Statements
The Management is responsible for establishing consolidated financial statements and fairly indicating the contents in accordance
with K-IFRS (International Financial Reporting Standards) and takes responsibility for internal control required to create the
consolidated financial statements without distortion on account of frauds or error.
Responsibility of the Auditor
Our responsibility is to express opinions on the consolidated financial statement based on the audit conducted by us. We
conducted the audit in accordance with K-IFRS. The standards require us to comply with ethical requirements and to confirm that
there are no distortions.
The audit includes implementation of procedures to acquire the evidence on the amounts stated, as well as public notification, on
the consolidated financial statement. Selection of the procedures varies in accordance with auditors’ judgment in terms of
evaluation of the risks associated with indication of significant distortions in the consolidated financial statement on account of
fraud or error. At the time of assessing the risks, the auditors take internal control related to establishment and fair indication of the
consolidated financial statement into account for the purpose of designing the appropriate procedures for audit. However, it is not
aim to express opinions on effectiveness of the internal control. The audit also includes compliance with accounting policies that
the management applied to establish the consolidated financial statement and assessment on rationality of accounting estimates
generated by the management, in addition to evaluation on general indication of the consolidated financial statement.
We believe that the audit evidence we obtained is sufficient as a basis of our audit opinions.
Opinions of the Auditor
In our opinion, the consolidated financial statement fairly indicates the present financial status from December 31, 2016 to
December 31, 2015 and the financial achievements and cash flow during the same period are in accordance with K-IFRS,
as deemed relevant by us.
CEO Jong-ho Ham
Mar. 16, 201710, Gukjegeumyung-ro, Youngdeungpo-gu, Seoul
Deloitte Korea
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Corporate Data
Company Name : CJ O Shopping
HQ : 870-13, Gwacheondae-ro, Seocho-gu, Seoul
Logistics Center : 20, 47 beon-gil, Nongsim-ro,
Gunpo-si, Gyeonggi-do
CEO Name : Min-Heoi Heo
The Date of Foundation : December 1994
The Number of Employees : 942 persons (497 male employees & 445 female employees) (As of December 31, 2016)
Homepage : www.cjoshopping.com
CJ O Shopping Corp. (06761) CJ O Shopping, 870-13, Gwacheon-daero,Seocho-gu, Seoul, KoreaTEL 82-2-2107-0114www.CJmall.com