Financial Performance - Revenue for the six months ended September 30, 2024, was RMB 34,708 million, a decrease of 3.0% compared to RMB 35,768 million in the same period of 2023[2] - Gross profit for the same period was RMB 8,526 million, down 4.1% from RMB 8,889 million year-on-year[2] - Operating profit surged to RMB 621 million, a significant increase of 3,168.4% compared to RMB 19 million in the previous year[2] - Net profit attributable to the company's owners was RMB 186 million, compared to a loss of RMB 378 million in the same period last year, representing a turnaround of 149.2%[2] - Basic and diluted earnings per share improved to RMB 0.02, compared to a loss of RMB 0.04 per share in the prior year[2] - The company reported a significant increase in operating profit margin, indicating improved operational efficiency despite a decline in revenue[2] - Same-store sales growth for the six months ended September 30, 2024, was 0.3%, driven by an increase in average transaction value and improved customer loyalty[50] - The company's attributable profit for the six months ended September 30, 2024, was RMB 206 million, a turnaround from a loss of RMB 359 million for the same period in 2023, reflecting an increase of RMB 565 million or 157.4%[61] Assets and Liabilities - Total assets as of September 30, 2024, increased to RMB 62,001 million, up 2.1% from RMB 60,715 million[2] - Total liabilities rose to RMB 40,203 million, reflecting a 3.3% increase from RMB 38,921 million[2] - Net cash decreased to RMB 14,635 million, down 11.3% from RMB 16,504 million[2] - Trade receivables totaled RMB 1,949 million as of September 30, 2024, down from RMB 2,184 million as of March 31, 2024[34] - Non-current deposits increased to RMB 2,130 million as of September 30, 2024, compared to RMB 1,830 million as of March 31, 2024[36] - Cash and cash equivalents decreased to RMB 9,500 million as of September 30, 2024, from RMB 11,908 million as of March 31, 2024[40] - The company’s lease liabilities as of September 30, 2024, were RMB 6.39 billion, unchanged from March 31, 2024[45] Income and Expenses - Total other income and net gains were RMB 621 million, compared to RMB 746 million in the previous year, reflecting a decrease of 16.74%[14] - Employee benefits expenses totaled RMB 4,106 million, a decrease of 11.3% from RMB 4,634 million in the same period of 2023[15] - Sales and marketing expenses for the six months ended September 30, 2024, were RMB 7.667 billion, a decrease of RMB 1.051 billion or 12.1% from RMB 8.718 billion for the same period in 2023, representing 22.1% of total revenue, down 2.3 percentage points from 24.4%[54] - The total income tax expense for the six months ended September 30, 2024, was RMB 224 million, compared to RMB 184 million for the same period in 2023[24] Cash Flow - Cash outflow from operating activities for the six months ended September 30, 2024, was RMB 641 million, a decrease of RMB 3.442 billion or 122.9% compared to a cash inflow of RMB 2.801 billion for the same period in 2023[63] - Cash outflow from investing activities for the six months ended September 30, 2024, was RMB 2.125 billion, a decrease of RMB 2.388 billion or 908.0% compared to a cash inflow of RMB 263 million for the same period in 2023[65] - As of September 30, 2024, the net cash inflow from financing activities was RMB 360 million, an increase of RMB 1.023 billion or 154.3% compared to a net cash outflow of RMB 663 million for the same period in 2023[67] Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[84] - The audit committee reviewed the unaudited condensed consolidated interim financial statements for the six months ending September 30, 2024[86] - The company has established anti-corruption and reporting policies to promote ethical business conduct and open communication within the workplace[85] Employee and Talent Management - The group had 85,778 employees, down from 102,101 employees as of September 30, 2023[82] - The group has adopted a stock option plan and a revised employee trust benefit plan to attract and retain high-quality talent, approved by shareholders on August 16, 2023[82] - Total employee benefits expenditure amounted to RMB 4,106 million, compared to RMB 4,634 million for the same period last year, reflecting a decrease of approximately 11.3%[82] Business Operations and Strategy - The company operates a single reportable segment, which includes offline physical stores and online sales channels in China[12] - The customer base is diversified, with no single customer accounting for more than 10% of total revenue[12] - The company has identified three new locations for hypermarkets and signed contracts for four medium-sized supermarkets, with one currently under construction[76] - The company’s pricing strategy includes the launch of over 1,100 low-price products to enhance price competitiveness and attract more customers[72] - The company opened one hypermarket and three M membership stores in the first half of the fiscal year, while closing seven hypermarkets[75] Shareholder Information - No interim dividend was declared for the six months ended September 30, 2024, consistent with the previous year[29] - The board has decided to postpone the declaration of an interim dividend due to ongoing evaluation of a potential voluntary conditional offer[88] - The company received a contact letter from a potential offeror expressing interest in making a voluntary conditional offer for all issued shares on September 27, 2024[89] Accounting and Financial Reporting - The company has adopted new and revised accounting standards effective from April 1, 2024, with no significant financial impact on the consolidated financial statements[11] - The company recognized RMB 29 million in expenses related to employee trust benefit plans for the six months ended September 30, 2024, compared to none in the same period of 2023[16] - The company announced proposed amendments to the employee trust benefit plans for Auchan (China) Investment and its subsidiaries, as well as for Suning Investment (China) and its subsidiaries[90] - The proposed changes aim to provide more flexibility in contributions to the trust and to reward employees of both groups[90] - The amendments are subject to shareholder approval at the general meeting scheduled for November 12, 2024[90]

Financial Performance - Revenue for the fiscal year ending March 31, 2024, was RMB 72,567 million, a decrease of 13.3% from RMB 83,662 million in the previous year[8]. - Gross profit decreased by 12.7% to RMB 17,958 million from RMB 20,581 million year-over-year[8]. - The company reported an operating loss of RMB 1,009 million, compared to an operating profit of RMB 1,177 million in the previous year, representing a decline of 185.7%[8]. - Net loss for the year was RMB 1,668 million, a significant increase from a profit of RMB 78 million in the prior year, marking a 2,238.5% decline[8]. - Total assets decreased by 5.3% to RMB 60,715 million from RMB 64,118 million year-over-year[9]. - Total liabilities decreased by 2.5% to RMB 38,921 million from RMB 39,921 million[9]. - Net cash decreased by 15.1% to RMB 16,504 million from RMB 19,449 million[9]. - Basic and diluted loss per share was RMB 0.17, compared to earnings of RMB 0.01 per share in the previous year[8]. - For the fiscal year ending March 31, 2024, the revenue from merchandise sales was RMB 69.431 billion, a decrease of RMB 11.104 billion or 13.8% compared to RMB 80.535 billion for the previous fiscal year[16]. - Same-store sales growth was -6.6%, with online B2C business achieving low single-digit positive growth despite a decline in average transaction value[16]. Management Strategy - The company aims to focus on revenue growth by offering more quality products at lower prices to a larger customer base[1]. - The new management team aims to focus on revenue growth and achieving profitability in the fiscal year 2025, emphasizing customer needs and retail fundamentals[15]. - The company plans to accelerate cost reduction and efficiency improvements while developing multi-format and omnichannel strategies[15]. - The new CEO has been appointed to lead the company back to its retail roots, focusing on product quality, pricing, service, and efficiency[14]. - The company is committed to regaining customer trust and loyalty by offering high-quality products at lower prices[14]. - The management expresses confidence in returning to a thriving business model in the new fiscal year[15]. Expenses and Cost Management - Selling and marketing expenses were RMB 18.178 billion, down RMB 0.332 billion or 1.8% from RMB 18.510 billion in the previous year, representing 25.0% of total revenue, an increase of 2.9 percentage points from 22.1%[19]. - Administrative expenses for the year ended March 31, 2024, were RMB 2.251 billion, a decrease of RMB 118 million or 5.0% compared to RMB 2.369 billion for the year ended March 31, 2023[20]. - Financial expenses for the year ended March 31, 2024, were RMB 425 million, a decrease of RMB 29 million or 6.4% compared to RMB 454 million for the year ended March 31, 2023[22]. - Income tax expenses for the year ended March 31, 2024, were RMB 234 million, a decrease of RMB 410 million or 63.7% compared to RMB 644 million for the year ended March 31, 2023[23]. Employee and Talent Management - As of March 31, 2024, the group had 86,226 employees, a decrease from 107,785 employees as of March 31, 2023, with total employee benefits expenditure amounting to RMB 9.558 billion, down from RMB 10.066 billion the previous year[42]. - The group has adopted a stock option plan and a revised employee trust benefit plan to recognize employee contributions and attract high-quality talent, with further details provided in the annual report[42]. - The group is committed to providing ongoing training for employees to enhance their skills and capabilities[42]. - The group aims to align the interests of participants in the stock option plan with those of the company and its shareholders[82]. Corporate Governance - The board of directors is committed to maintaining high standards of corporate governance to protect shareholder interests[178]. - The company has established a code of conduct for securities trading by directors and relevant employees, ensuring compliance with regulations[179]. - The board currently consists of seven members, including one executive director and three independent non-executive directors[182]. - The company maintained compliance with the Listing Rules by having at least three independent non-executive directors, constituting one-third of the board, with two meeting the required professional qualifications[185]. - The Audit Committee held five meetings during the year ending March 31, 2024, reviewing the annual and interim financial performance for the periods ending March 31, 2023, and September 30, 2023[192]. Related Party Transactions - The company has categorized ongoing related transactions with Alibaba Group to better manage long-term business interactions[118]. - The annual cap for procurement of goods and services from Alibaba Group is set at RMB 1.5 billion for the fiscal year ending March 31, 2022, RMB 1.8 billion for the fiscal year ending March 31, 2023, and RMB 2.1 billion for the fiscal year ending March 31, 2024[121]. - The company entered into a business cooperation framework agreement with Taobao China on June 22, 2021, which was approved by shareholders and is effective from September 24, 2021, until March 31, 2024[125]. - The agreements with Alibaba Group are classified as continuing connected transactions, reflecting the ongoing business relationship between the companies[130]. Economic and Market Conditions - The company's sales, revenue, and profitability are heavily influenced by the economic conditions in China[176]. - Fluctuations in exchange rates and government controls on currency exchange may negatively impact the company's ability to pay dividends[177]. - Concerns regarding product safety and quality may significantly impact the company's operating performance[174]. - Any outbreak of serious infectious diseases in China could adversely affect the company's financial performance and growth prospects[175].

Financial Performance - For the fiscal year ending March 31, 2024, the company reported a revenue of RMB 72,567 million, a decrease of RMB 11,095 million or 13.3% compared to RMB 83,662 million in the previous year[2] - Gross profit for the same period was RMB 17,958 million, down RMB 2,623 million or 12.7% from RMB 20,581 million year-on-year[2] - The company experienced an operating loss of RMB 1,009 million, a decline of RMB 2,186 million or 185.7% compared to an operating profit of RMB 1,177 million in the previous year[2] - The net loss attributable to the company's owners was RMB 1,668 million, a significant drop of RMB 1,746 million or 2,238.5% from a profit of RMB 78 million in the prior year[2] - Basic and diluted loss per share was RMB (0.17), compared to earnings of RMB 0.01 per share in the previous year[4] - Sales costs for the year ending March 31, 2024, were RMB 54,523 million, a decrease from RMB 62,993 million in the previous year, representing a reduction of approximately 13.5%[26] - The group reported a total income tax expense of RMB 234 million for the year ending March 31, 2024, down from RMB 644 million in the previous year, indicating a significant decrease of approximately 63.7%[28] - The company reported a basic loss per share of RMB 0.17 for the fiscal year ending March 31, 2024, compared to a profit of RMB 0.01 per share in the previous year[34] - The proposed final dividend for the fiscal year ending March 31, 2024, is HKD 0.020 per share, equivalent to RMB 0.018, down from HKD 0.045 per share (RMB 0.040) in the previous year[35] Assets and Liabilities - Total assets decreased to RMB 60,715 million, down RMB 3,403 million or 5.3% from RMB 64,118 million year-on-year[2] - Total liabilities were reported at RMB 38,921 million, a reduction of RMB 1,000 million or 2.5% from RMB 39,921 million in the previous year[2] - The company's net cash position was RMB 16,504 million, down RMB 2,945 million or 15.1% from RMB 19,449 million in the previous year[2] - The company’s equity attributable to owners decreased to RMB 21,794 million, a decline of RMB 2,403 million or 9.9% from RMB 24,197 million year-on-year[2] - Trade receivables decreased to RMB 2,184 million in 2024 from RMB 3,073 million in 2023, a decline of approximately 29%[39] - Total other receivables decreased to RMB 1,537 million in 2024 from RMB 1,768 million in 2023, a decline of about 13%[39] - Cash and cash equivalents decreased to RMB 11,908 million in 2024 from RMB 12,408 million in 2023, a decrease of around 4%[44] - The company reported a total of RMB 6,628 million in lease liabilities as of March 31, 2024, compared to RMB 7,039 million in 2023, a decrease of about 6%[49] Operational Highlights - The company plans to focus on new product development and market expansion strategies to improve future performance[3] - The customer base is diversified, with no single customer accounting for more than 10% of total revenue[17] - Online business sales accounted for approximately 29% of total revenue, with B2C sales making up about 22%[73] - The company's own app sales represented around 36% of B2C business, and third-party platform sales are being accelerated from Q4 of the fiscal year[73] - Same-store sales growth was -6.6%, with online B2C business achieving low single-digit positive growth despite a decline in average transaction value[53] - The company aims to return to revenue growth and achieve profitability by focusing on cost reduction and efficiency improvements[79] Employee and Compensation - Employee benefits expenses totaled RMB 9,558 million, a decrease from RMB 10,066 million in the previous year[20] - Employee count decreased to 86,226 as of March 31, 2024, down from 107,785 a year earlier, with total employee benefits expenditure amounting to RMB 9.558 billion[78] - The group confirmed employee trust benefit plan-related expenses of RMB 12 million for the year ending March 31, 2023, with no expenses recognized for the following year[24] - The company has adopted a stock option plan and a revised employee trust benefit plan to attract and retain high-quality talent[78] Investment and Future Plans - The company plans to complete the sale of several retail stores within one year, with related assets and liabilities classified as held for sale[45] - The company plans to sell certain non-performing assets to reduce losses and store closure costs, with related assets classified as held for sale as of March 31, 2024[69] - The company plans to open four new membership stores in the new fiscal year, having already secured locations for four hypermarkets and signed contracts for 13 medium-sized supermarkets[74] Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[80] - The company’s ultimate holding company is Alibaba Group Holding Limited[1] - The company’s management and auditors have discussed internal controls and financial reporting matters[82] Miscellaneous - The company has applied new accounting standards effective from April 1, 2023, including HKFRS 17 on insurance contracts[15] - The company did not face significant foreign exchange risks as most of its assets and liabilities are denominated in RMB[70] - The company will publish its annual report for the fiscal year ending March 31, 2024, on the HKEX and its own website[88] - The company will suspend the registration of share transfers from August 9 to August 14, 2024, to ensure shareholders can attend the annual general meeting[86]

图源：Unsplash 高鑫零售（06808.HK）近期的一系列动作引发外界猜测。 进入2024年，高鑫零售旗下知名超市大润发持续关店，德阳、黄冈、株洲等地门店相继退场。据不完全统计，2023年1月至今，至少有13家大润发闭店 或宣布闭店。 高鑫零售方面告诉时代财经，公司一切都在正常的运转当中，大润发闭店属于正常的经营调整，"部分改造为2.0门店和M会员商店，部分出于物业到期 等原因。" 进入2024年来，阿里巴巴的变革向新零售领域蔓延。2月初，有媒体报道，阿里考虑出售银泰百货；2月7日的财报电话会议上，阿里巴巴集团董事长蔡 崇信亦提及，传统实体零售业务不是阿里的核心业务，"对这类业务进行退出也是合理的做法，但这需要时间，根据市场情况慢慢来实现。" 2月19日，瑞银的一份研报称，阿里可能出售其在高鑫零售的股份，或将加速高鑫零售业务调整，包括关闭亏损店铺等。这更为高鑫零售在阿里体系内 的去留增添了一些扑朔迷离的意味。 对于阿里出售高鑫零售的传言，高鑫零售官方回应称不予置评。有业内人士则对时代财经分析，高鑫零售在阿里战略性投资入股时，已经是一个港股上 市公司主体，它有一整套需要遵循的独立公司上市的标准跟守则，任何 ...

智通财经APP获悉，高鑫零售(06808)涨近5%，截至发稿，涨4.88%，报1.29港元，成交额641.65万港 元。 消息面上，瑞银研报指出，市场流传阿里巴巴考虑减持零售资产的消息，推动公司股价上升，据报阿里 与策略投资者就相关资产进行讨论，而阿里管理层表示，实体零售资产属非核心及亏损业务，出售亦属 合理，但因应市况料进行需时。 该行认为，虽然高鑫零售股价上升，但其市值109亿元仍然严重低估，因为净现金及投资物业整体价值 有200亿元。此外，阿里的潜在出售，可能会加快高鑫扭亏，因为集团可能会关闭非核心地区的亏损店 铺，劳工安排将更具效益，虽然短期可能出现拨备开支，但长远能够提升年度盈利。 ...

智通财经APP获悉，瑞银发布研究报告称，维持高鑫零售(06808)"买入"评级，目标价由2.3港元下调至 2.08港元，主要因为集团从传统超市业务，多元化发展至会员店铺，并推动资本应用及营运效益改善。 阿里的潜在出售，可能会加快高鑫扭亏，因为集团可能会关闭非核心地区的亏损店铺，劳工安排将更具 效益，虽然短期可能出现拨备开支，但长远能够提升年度盈利。 报告中称，市场流传阿里巴巴-SW(09988)考虑减持零售资产的消息，推动公司股价上升，据报阿里与策 略投资者就相关资产进行讨论，而阿里管理层表示，实体零售资产属非核心及亏损业务，出售亦属合 理，但因应市况料进行需时。虽然高鑫零售股价上升，但其市值109亿元仍然严重低估，因为净现金及 投资物业整体价值有200亿元人民币。 ...

Financial Performance - Revenue for the six months ended September 30, 2023, was RMB 35,768 million, a decrease of 11.9% compared to RMB 40,611 million in the same period of 2022[8] - Gross profit for the same period was RMB 8,889 million, down 12.1% from RMB 10,112 million year-on-year[8] - Operating profit significantly dropped to RMB 19 million, a decline of 96.2% from RMB 500 million in the previous year[8] - The company reported a net loss of RMB 378 million, compared to a loss of RMB 87 million in the same period last year, representing a 334.5% increase in losses[8] - For the six months ended September 30, 2023, revenue from merchandise sales was RMB 34.225 billion, a decrease of RMB 4.859 billion or 12.4% compared to the same period in 2022[21] - Same-store sales growth for the six months ended September 30, 2023, was -5.9%, primarily due to a decline in pork and fresh vegetable CPI, and a decrease in average transaction size[22] - Other income and gains for the six months ended September 30, 2023, amounted to RMB 746 million, a decrease of RMB 56 million or 7.0% compared to RMB 802 million for the same period in 2022[24] - Sales and marketing expenses for the six months ended September 30, 2023, were RMB 8.718 billion, down RMB 660 million or 7.0% from RMB 9.378 billion in the same period of 2022, representing 24.4% of total revenue, a decrease of 1.3 percentage points[25] - Administrative expenses for the six months ended September 30, 2023, were RMB 898 million, a decrease of RMB 138 million or 13.3% compared to RMB 1.036 billion for the same period in 2022, accounting for 2.5% of total revenue, down 0.1 percentage points[26] - Financial expenses for the six months ended September 30, 2023, were RMB 213 million, a decrease of RMB 21 million or 9.0% from RMB 234 million in the same period of 2022[28] - Income tax expenses for the six months ended September 30, 2023, were RMB 184 million, a decrease of RMB 168 million or 47.7% compared to RMB 352 million for the same period in 2022[29] - Net cash generated from operating activities for the six months ended September 30, 2023, was RMB 2.801 billion, a decrease of RMB 326 million or 10.4% from RMB 3.127 billion in the same period of 2022[33] - Net cash inflow from investing activities for the six months ended September 30, 2023, was RMB 263 million, a decrease of RMB 681 million or 72.1% from RMB 944 million in the same period of 2022[34] - The net cash outflow from financing activities for the six months ended September 30, 2023, was RMB 663 million, a decrease of RMB 524 million or 44.1% compared to RMB 1.187 billion for the same period in 2022[35] Store Operations and Expansion - The company launched its first membership store in April 2023, with over 50,000 paid members and a total membership nearing 100,000 by September 30, 2023[11] - The company completed the reconstruction of 8 stores and over 50 partial renovations as part of its large store 2.0 transformation strategy[10] - The company opened 3 new large stores and 7 medium-sized supermarkets in the six months ending September 30, 2023, while closing 4 large stores[12] - The total building area of large stores and medium-sized supermarkets is approximately 13.74 million square meters, with 66.7% being leased properties[12] - As of September 30, 2023, the company has opened three hypermarket locations through leases or acquisitions, with two currently under construction[13] - The total number of physical stores as of September 30, 2023, is 505, comprising 485 hypermarkets and 19 medium-sized supermarkets, with a total building area of 13,785,656 square meters[14] - The company has signed contracts for 18 medium-sized supermarkets, with six currently under construction[13] Employee and Compensation - The total employee count as of September 30, 2023, was 102,101, down from 114,490 a year earlier, with total employee benefits expenses amounting to RMB 4.634 billion[19] - The company has adopted a share option scheme approved by shareholders on August 16, 2023, aimed at aligning the interests of participants with those of the company and its shareholders[45] - The share option scheme is valid for ten years from the adoption date and can be terminated by the company or the board at any time[46] - Eligible participants for the share option scheme include employees, directors, and other relevant individuals expected to provide services to the group[47] - The company granted a total of 60,000,000 stock options to three grantees with an exercise price of HKD 2.18 as of September 30, 2023[51] - The maximum number of shares available for subscription under the stock option plan is capped at 953,970,470 shares, which is 10% of the total shares issued as of the adoption date[50] - The average remaining contractual life of the unexercised share options is 9.89 years as of September 30, 2023[121] Financial Position and Assets - Total assets as of September 30, 2023, amounted to RMB 65,253 million, an increase from RMB 64,118 million as of March 31, 2023[88] - Total liabilities increased to RMB 41,840 million from RMB 39,921 million, indicating a rise of 4.6%[88] - The company's equity totalled RMB 23,413 million, down from RMB 24,197 million, reflecting a decrease of 3.2%[89] - Non-current assets totalled RMB 30,481 million, a slight decrease from RMB 31,037 million[88] - Inventory as of September 30, 2023, was RMB 8,716 million, an increase from RMB 8,474 million, indicating a rise of 2.9%[88] - The company’s capital reserve is RMB 1,244 million, remaining stable from the previous period[92] - The group’s total borrowings amounted to RMB 1.180 billion as of September 30, 2023[110] - The group’s financial risk management includes fair value measurements categorized into three levels based on the observability of inputs used[105] Legal and Regulatory Compliance - The review of the interim financial data did not reveal any issues that would suggest the data was not prepared in accordance with Hong Kong Accounting Standards[85] - The interim financial report includes a consolidated statement of financial position as of September 30, 2023, and a consolidated income statement for the six-month period ending on that date[83] - The company is subject to the regulations of the Hong Kong Stock Exchange and must comply with relevant accounting standards[84] - The report was prepared by 罗兵咸永道, an independent auditor, confirming the accuracy of the financial data[85] Shareholder Information - The company has a significant ownership structure with Alibaba Group being the largest shareholder, indicating strong control over its subsidiaries[80] - The total number of shares held by Alibaba Group as of September 30, 2023, was 20,274,382,712[76] - As of September 30, 2023, major shareholder 吉鑫 holds 4,419,731,966 shares, representing 46.33% of the company's equity[79] - 淘寶中國 directly owns 2,607,565,384 shares, accounting for 27.33% of the company's equity[80] - 淘寶控股有限公司 holds a total of 7,027,297,350 shares, which is 73.66% of the company's equity[80] - 阿里巴巴集團 owns 7,507,666,581 shares, representing 78.70% of the company's equity[80] Capital Expenditures and Commitments - Capital expenditures amounted to RMB 440 million for the six months ended September 30, 2023, up from RMB 258 million in the same period of 2022, primarily related to new store development and digital transformation[138] - The company reported a total of RMB 1,788 million in capital commitments as of September 30, 2023, compared to RMB 2,041 million as of March 31, 2023[156] - The company has contracted capital commitments of RMB 695 million and authorized but not contracted commitments of RMB 1,093 million, totaling RMB 1,788 million[156]

Financial Performance - Revenue for the six months ended September 30, 2023, was RMB 35,768 million, a decrease of 11.9% compared to RMB 40,611 million in the same period of 2022[2] - Gross profit for the same period was RMB 8,889 million, down 12.1% from RMB 10,112 million year-on-year[2] - Operating profit significantly declined to RMB 19 million, a decrease of 96.2% from RMB 500 million in the previous year[2] - The company reported a loss attributable to owners of the company of RMB 378 million, compared to a loss of RMB 87 million in the prior year, representing an increase of 334.5%[2] - Basic and diluted loss per share for the six months ended September 30, 2023, was RMB (0.04), compared to RMB (0.01) in the same period of 2022[4] - The net loss for the six months ended September 30, 2023, was RMB 378 million, an increase of RMB 291 million or 334.5% compared to a loss of RMB 87 million for the same period in 2022[52] - The loss attributable to owners of the company for the six months ended September 30, 2023, was RMB 359 million, an increase of RMB 290 million or 420.3% from RMB 69 million in the same period in 2022[53] Assets and Liabilities - Total assets as of September 30, 2023, were RMB 65,253 million, reflecting a 1.8% increase from RMB 64,118 million as of March 31, 2023[2] - Total liabilities increased by 4.8% to RMB 41,840 million from RMB 39,921 million as of March 31, 2023[2] - The company’s net asset value decreased by 3.2% to RMB 23,413 million from RMB 24,197 million as of March 31, 2023[2] - Trade and other receivables totaled RMB 2,330 million as of September 30, 2023, down from RMB 3,073 million as of March 31, 2023[31] - Cash and cash equivalents increased to RMB 14,809 million as of September 30, 2023, compared to RMB 12,408 million as of March 31, 2023[34] - Trade payables rose to RMB 12,797 million as of September 30, 2023, from RMB 11,478 million as of March 31, 2023[38] - The company had restricted cash of RMB 2,929 million as of September 30, 2023, reflecting funds subject to specific usage restrictions[34] Revenue Breakdown - Revenue from merchandise sales was RMB 34,225 million, down from RMB 39,084 million, while rental income from tenants increased slightly to RMB 1,543 million from RMB 1,527 million[12] - Revenue from merchandise sales for the six months ended September 30, 2023, was RMB 34.225 billion, a decrease of RMB 4.859 billion or 12.4% compared to RMB 39.084 billion for the same period in 2022[43] - Same-store sales growth for the same period was -5.9%, primarily due to a decline in the consumer price index for pork and fresh vegetables, a contraction in supply guarantee business, and a decrease in average transaction size[43] - Rental income for the six months ended September 30, 2023, was RMB 1.543 billion, an increase of RMB 0.016 billion or 1.0% compared to RMB 1.527 billion for the same period in 2022[43] Expenses and Costs - Employee benefits expenses totaled RMB 4,634 million, down from RMB 5,044 million, reflecting a decrease of 8.1%[15] - Selling and marketing expenses for the six months ended September 30, 2023, were RMB 8.718 billion, a decrease of RMB 0.66 billion or 7.0% compared to RMB 9.378 billion for the same period in 2022[46] - Administrative expenses for the same period were RMB 898 million, a decrease of RMB 138 million or 13.3% compared to RMB 1.036 billion for the same period in 2022[47] - The total income tax expense for the six months ended September 30, 2023, was RMB 184 million, down from RMB 352 million in the same period of 2022, reflecting a significant reduction of 47.2%[21] - The group reported a total financial expense of RMB 213 million for the six months ended September 30, 2023, down from RMB 234 million in the same period of 2022[20] Cash Flow - Net cash generated from operating activities for the six months ended September 30, 2023, was RMB 2.801 billion, a decrease of RMB 326 million or 10.4% compared to RMB 3.127 billion for the same period in 2022[53] - Cash inflow from investment activities for the six months ended September 30, 2023, was RMB 263 million, a decrease of RMB 681 million or 72.1% from RMB 944 million in the same period of 2022[55] - Cash outflow from financing activities for the six months ended September 30, 2023, was RMB 663 million, a decrease of RMB 524 million or 44.1% from RMB 1.187 billion in the same period of 2022[56] Corporate Governance and Compliance - The company emphasizes maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[69] - The company has complied with all provisions of the Corporate Governance Code for the six months ended September 30, 2023[70] - No dividends were declared for the six months ended September 30, 2023, consistent with the previous period[72] - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the six months ended September 30, 2023[71] - No significant events or transactions that could impact the group have occurred since September 30, 2023, up to the date of this announcement[73] Operational Developments - The company continues to focus on enhancing operational efficiency and exploring new market opportunities despite the current financial challenges[3] - The company has launched over 100 private label products as of September 30, 2023, achieving a penetration rate of nearly 10% in the relevant subcategories[60] - The first M membership store opened in April 2023, with over 50,000 paid members and a total membership close to 100,000 as of September 30, 2023[61] - The company has completed the reconstruction of 8 stores and partial renovations of over 50 stores as of September 30, 2023, focusing on enhancing customer experience[60] - The company has a total of 505 physical stores as of September 30, 2023, including 485 hypermarkets and 19 medium-sized supermarkets[62] - The company plans to open three new hypermarkets and 18 medium-sized supermarkets, with six under construction as of September 30, 2023[63] - The company aims to enhance customer satisfaction and optimize fulfillment costs, with daily online store orders continuing to grow[60] - The company will continue to focus on differentiated product offerings and expand its store network, with plans to convert two existing stores into membership stores in 2024[61][68] - Approximately 66.7% of the total building area of hypermarkets and medium-sized supermarkets is leased, while 33.3% is owned by the company[62] Employee Information - Employee count decreased to 102,101 as of September 30, 2023, down from 114,490 a year earlier, with total employee benefits expenditure amounting to RMB 4,634 million[67]

Financial Performance - For the fiscal year 2023, the company reported revenue of RMB 83,662 million, a decrease of 5.1% from RMB 88,134 million in the previous year[37] - The gross profit for the year was RMB 20,581 million, down 4.2% from RMB 21,473 million[37] - Operating profit surged to RMB 1,177 million, a significant increase of 6,438.9% compared to RMB 18 million in the prior year[37] - The net profit attributable to shareholders was RMB 109 million, recovering from a loss of RMB 739 million in the previous year[37] - For the fiscal year ending March 31, 2023, the revenue from merchandise sales was RMB 80.535 billion, a decrease of RMB 4.060 billion or 4.8% compared to RMB 84.595 billion for the previous fiscal year[45] - Same-store sales growth for the fiscal year was -4.0%, primarily impacted by a decline in foot traffic, although online channels achieved double-digit growth[45] - Rental income for the fiscal year was RMB 3.127 billion, down RMB 0.412 billion or 11.6% from RMB 3.539 billion in the previous year[45] - Gross profit for the fiscal year was RMB 20.581 billion, a decrease of RMB 0.892 billion or 4.2% from RMB 21,473 billion in the previous year, with a gross margin of 24.6%[46] - The net profit margin for the fiscal year ending March 31, 2023, was 0.1%, an increase of 1.0 percentage points from the net loss margin of 0.9% in the previous year, primarily due to an increase in operating profit margin[54] Cash Flow and Financial Position - The company achieved a net cash position of RMB 19,449 million, an increase of 4.2% from RMB 18,659 million[38] - The company's cash inflow from operating activities for the fiscal year ending March 31, 2023, was RMB 4.302 billion, an increase of RMB 0.725 billion or 20.3% compared to RMB 3.577 billion in the previous year[57] - The net cash position of the company as of March 31, 2023, was RMB 19.449 billion, up from RMB 18.659 billion a year earlier[57] - The net cash outflow from investment activities for the fiscal year ending March 31, 2023, was RMB 12.00 billion, a decrease of RMB 45.01 billion or 136.4% compared to a net cash inflow of RMB 33.01 billion in the previous year[58] - The net cash outflow from financing activities for the fiscal year ending March 31, 2023, was RMB 19.88 billion, a decrease of RMB 16.92 billion or 46.0% from RMB 36.80 billion in the previous year[59] Strategic Initiatives and Market Focus - The company plans to enhance its product offerings and expand its market presence through four strategic initiatives, focusing on product strength, offline experience centers, online fulfillment centers, and multi-format expansion[44] - The company is focusing on enhancing its fresh supply chain infrastructure to improve customer satisfaction and operational efficiency[43] - The company plans to focus on the middle-aged and young families in fiscal year 2024, enhancing the experience and service reliability in its B2C business to meet customer demands for home delivery[65] - The company aims to strengthen its digital membership capabilities, integrating its membership system with platforms like Ele.me and Taobao, enhancing its competitive edge in digital operations[65] Employee and Governance - As of March 31, 2023, the group had 107,785 employees, a decrease from 122,010 employees as of March 31, 2022[74] - Total employee benefits expenditure amounted to RMB 10,066 million, compared to RMB 10,383 million for the same period last year, reflecting a decrease of approximately 3.05%[74] - The board of directors consists of seven members, including one executive director, three non-executive directors, and three independent non-executive directors[161] - The company has implemented effective mechanisms to ensure the independence of the board, allowing all directors to access relevant information and seek independent professional advice[164] - The company has established its own Corporate Governance and Compliance Manual, which includes all principles and practices outlined in the Corporate Governance Code[157] Risks and Challenges - The company's performance is significantly influenced by the economic conditions in China, affecting sales, revenue, and profitability[154] - Concerns regarding product quality or safety could significantly impact the company's sales and operational performance[152] - The outbreak of any serious infectious disease in China could adversely affect the company's business performance and overall consumer spending[153] - The company faces substantial foreign exchange risks due to a large portion of its revenue and expenses being denominated in RMB, which is not freely convertible[155] Related Party Transactions - The annual cap for procurement of goods and services from Alibaba Group for the fiscal years ending March 31, 2022, 2023, and 2024 is set at RMB 1.5 billion, RMB 1.8 billion, and RMB 2.1 billion respectively, with actual transaction amounts for the fiscal year ending March 31, 2023, being approximately RMB 298.3 million[131] - The actual transaction amount for sales of goods and services to Alibaba Group for the fiscal year ending March 31, 2023, was approximately RMB 3,339.8 million, representing a decrease of 47.3% compared to the previous year[134] - The Group's ongoing relationship with Alibaba affiliates is expected to enhance operational efficiency and market reach through collaborative efforts[135] Sustainability and ESG Initiatives - The Group has engaged external consultants to prepare ESG information as required by the Listing Rules, emphasizing the importance of sustainability for future development[145] - The ESG committee was established to manage ESG risks and has reported to the board three times during the reporting period, reviewing ESG strategies and identifying risks[175] - The company is committed to promoting the use of clean energy and sustainable operations, aiming for energy conservation and emission reduction[75]

Financial Performance - For the fiscal year ending March 31, 2023, total revenue decreased to RMB 83,662 million, down 5.1% from RMB 88,134 million in 2022[2] - Gross profit for the same period was RMB 20,581 million, a decline of 4.2% compared to RMB 21,473 million in the previous year[2] - Operating profit surged to RMB 1,177 million, a significant increase of 6,438.9% from RMB 18 million in 2022[2] - The net profit attributable to the company's owners was RMB 109 million, recovering from a loss of RMB 739 million in the prior year[2] - Basic and diluted earnings per share improved to RMB 0.01, compared to a loss of RMB 0.08 per share in 2022[9] - The company reported a total comprehensive income of RMB 78 million for the year, compared to a loss of RMB 826 million in the previous year[7] Assets and Liabilities - Total assets as of March 31, 2023, were RMB 64,118 million, a decrease of 2.5% from RMB 65,746 million in 2022[2] - Total liabilities decreased to RMB 39,921 million, down 1.9% from RMB 40,680 million in the previous year[2] - Net cash increased to RMB 19,449 million, reflecting a growth of 4.2% from RMB 18,659 million in 2022[2] Revenue Breakdown - Revenue from merchandise sales was RMB 80,535 million, down from RMB 84,595 million, indicating a decline of 4.0%[19] - Rental income from tenants decreased to RMB 3,127 million from RMB 3,539 million, reflecting a decline of 11.6%[19] - Other income for the year was RMB 1,475 million, slightly up from RMB 1,449 million in the previous year[20] Expenses and Cost Management - Employee benefits expenses totaled RMB 10,066 million, a decrease of 3.0% from RMB 10,383 million in the previous year[21] - Selling and marketing expenses were RMB 18.510 billion, down RMB 1.843 billion or 9.1% from RMB 20.353 billion the previous year, reflecting cost-cutting efforts[51] - Administrative expenses for the year ended March 31, 2023, were RMB 2.369 billion, a decrease of RMB 0.182 billion or 7.1% compared to RMB 2.551 billion for the year ended March 31, 2022[52] Taxation - The total income tax expense for the year ended March 31, 2023, was RMB 644 million, significantly higher than RMB 323 million in the previous year[26] - Approximately 34% of the company's subsidiaries in China benefited from a preferential corporate income tax rate of 20% for small and micro enterprises, compared to 31% in the previous year[28] Cash Flow - Cash inflow from operating activities for the year ended March 31, 2023, was RMB 4.302 billion, an increase of RMB 0.725 billion or 20.3% compared to RMB 3.577 billion for the year ended March 31, 2022[59] - Cash outflow from investing activities for the year ended March 31, 2023, was RMB 1.200 billion, a decrease of RMB 4.501 billion or 136.4% compared to cash inflow of RMB 3.301 billion for the year ended March 31, 2022[61] - Cash outflow from financing activities for the year ended March 31, 2023, was RMB 1.988 billion, a decrease of RMB 1.692 billion or 46.0% compared to RMB 3.680 billion for the year ended March 31, 2022[62] Market and Operational Strategy - The company plans to continue focusing on operational efficiency and exploring market expansion opportunities in the upcoming fiscal year[2] - The company plans to declare a final dividend of RMB 0.040 per share for the year ended March 31, 2023, compared to RMB 0.045 per share in the previous year[32] - The company aims to enhance digital membership capabilities and integrate with various platforms to strengthen its competitive edge[67] Store Operations - The company opened one hypermarket and five medium-sized supermarkets during the fiscal year, while closing seven stores[70] - As of March 31, 2023, the company operated 486 hypermarkets, 12 medium-sized supermarkets, and 84 small supermarkets across China[70] - The total number of physical stores reached 582, with a total building area of 13,805,741 square meters[71] Employee and Corporate Governance - The company had 107,785 employees as of March 31, 2023, down from 122,010 employees a year earlier, with total employee benefits expenditure amounting to RMB 10,066 million[74] - The company has maintained high standards of corporate governance, ensuring compliance with the Corporate Governance Code[76]