Financial Performance - Revenue decreased by 7.3% to RMB 644.6 million compared to RMB 695.2 million in the same period last year[1]. - Profit attributable to owners of the company fell by 67.4% to RMB 41.7 million, down from RMB 127.6 million[1]. - Earnings per share dropped by 67.4% to RMB 0.028 from RMB 0.087[1]. - Total comprehensive income for the period attributable to owners was RMB 130.9 million, down from RMB 265.6 million[3]. - The group's net profit attributable to shareholders fell by 67.4% to RMB 41.7 million, down from RMB 127.6 million in the previous year[26]. - Adjusted EBITDA decreased by 18.7% to RMB 197.1 million, driven by a decline in sales and revenue[33]. Revenue Breakdown - Revenue from self-operated sales was RMB 262.4 million, down from RMB 281.1 million[8]. - Revenue from licensed counter sales decreased to RMB 202.6 million from RMB 251.2 million[8]. - Service revenue was RMB 17.9 million, a slight decrease from RMB 19.2 million[8]. - Total sales revenue dropped by 11.5% to RMB 1,450.4 million from RMB 1,638.6 million year-on-year[24]. - Other income, including management fees and exchange gains/losses, decreased by 7.5% to RMB 101.6 million, attributed to lower sales and reduced income from third-party payment platform fees[30]. Cost and Expenses - Gross profit margin decreased, with gross profit at RMB 362.1 million compared to RMB 394.1 million last year[3]. - Selling and distribution costs decreased by 4.0% to RMB 289.5 million from RMB 301.6 million in the previous year[27]. - General administrative expenses increased by 3.9% to RMB 118.9 million, primarily due to rising employee costs[28]. - Employee costs rose to RMB 106,760 thousand in 2024, up from RMB 99,888 thousand in 2023, indicating an increase of approximately 6.9%[11]. - Financing costs rose by 11.1% to RMB 93.5 million, with bank loan interest at RMB 60.3 million and lease liabilities interest at RMB 33.2 million[32]. Dividends and Shareholder Returns - The board of directors did not declare any interim dividend for the period[1]. - The company did not declare or pay any dividends for the six months ended June 30, 2024, consistent with the same period in 2023[11]. - The group has decided not to declare an interim dividend for the six months ending June 30, 2024, consistent with the previous year[49]. Market and Economic Conditions - The overall economic environment showed signs of slowing growth, with GDP growth of 5.0% year-on-year in the first half of 2024[22]. - The retail market is becoming increasingly cautious, leading to a decline in average customer spending[24]. - The group is optimistic about the retail market outlook, supported by government policies to stimulate consumer demand, despite challenges in the broader economic environment[46]. Strategic Initiatives - The group plans to enhance its brand presence through online platforms like Xiaohongshu and Douyin, utilizing live streaming and short videos to boost online sales and attract customers to physical stores[47]. - The group aims to introduce more experiential and immersive consumption projects, including a newly opened water park at Shanghai Jiuguang Center, featuring a surfing simulator and a 6-meter high water slide[46]. - The group will enhance its VIP membership program to foster customer loyalty through personalized product recommendations and exclusive offers[46]. - The group will continue to optimize its product and service offerings to meet consumer demand for high cost-performance products, with plans to introduce new health and wellness brands in Shanghai[46]. - The group is focused on maintaining a competitive salary structure for employees, ensuring compensation aligns with market trends[48]. Operational Metrics - Average daily foot traffic at Shanghai Jiuguang Center increased by 22.3% to 34,000 visitors, while sales decreased by 4.0% to RMB 155.7 million[39]. - Suzhou Jiuguang's average daily foot traffic increased by 16.4% year-on-year to approximately 14,400 visitors, while the conversion rate and average transaction value decreased by 11.6 percentage points and 2.8% to 49.2% and RMB 482, respectively[41]. - The occupancy rates for the two office buildings at Shanghai Jiuguang Center reached approximately 70% and 10%, generating rental income of about RMB 16.3 million[39]. Receivables and Liabilities - The total accounts payable decreased to RMB 825,060 thousand as of June 30, 2024, from RMB 959,356 thousand as of December 31, 2023, a reduction of about 14%[15]. - The company's accounts receivable as of June 30, 2024, amounted to RMB 80,553 thousand, a decrease from RMB 85,189 thousand as of December 31, 2023, reflecting a decline of about 5.5%[14]. - The group has fully impaired receivables from Beiren Group, with no progress reported in recovering outstanding amounts, leading to continued reliance on Beiren's management for necessary actions[44]. - Independent legal opinions indicate a very low likelihood of recovering the outstanding receivables, which have been fully provisioned since 2019[45].
利福中国(02136) - 2024 - 中期业绩