Economic Performance - In the first half of 2021, China's GDP grew by 12.7% year-on-year, with an average growth rate of 5.3% over two years[17]. - The total retail sales of consumer goods in China increased by 23.0% year-on-year in the first half of 2021, contributing 61.7% to economic growth[18]. - Per capita disposable income in China rose by 12.0% in real terms in the first half of 2021, with an average growth rate of 5.2% over two years[18]. - The online retail sales in China grew by 23.2% year-on-year in the first half of 2021, with physical goods online retail sales increasing by 18.7%[19]. - The proportion of service consumption in total household consumption reached 52.5% in the first half of 2021, an increase of 3.2 percentage points[18]. Financial Performance - The group's revenue for the review period was approximately RMB 13.238 billion, a decrease of about RMB 799 million, down approximately 5.7% year-on-year[21]. - The group's gross profit amounted to approximately RMB 1.619 billion, a decrease of about RMB 405 million, representing a decline of 20.0% compared to the previous year[21]. - Same-store sales decreased by approximately 7.90% year-on-year, primarily impacted by the COVID-19 pandemic[21]. - The group's pre-tax profit for the review period was approximately RMB 125 million, a decrease of about RMB 138 million, down approximately 52.5% year-on-year[23]. - The company reported a net profit of RMB 60,120 thousand, a decline of 58.8% compared to RMB 146,030 thousand in the previous year[91]. - Basic earnings per share decreased to RMB 0.018 from RMB 0.052, reflecting a 65.4% drop[91]. - The company reported a total comprehensive income of RMB 20,077,000 for the six months ended June 30, 2021, compared to RMB 58,327,000 for the same period in 2020, reflecting a decrease of about 65.6%[98]. Segment Performance - The revenue from the large-scale comprehensive supermarket segment was approximately RMB 7.250 billion, a year-on-year decline of about 9.6%, accounting for approximately 54.8% of the group's total revenue[25]. - The supermarket segment recorded a revenue of approximately RMB 5,098.65 million, a decrease of about RMB 37.60 million or 0.7% year-on-year, accounting for approximately 38.5% of the group's total revenue[26]. - The convenience store segment achieved a revenue of approximately RMB 790.57 million, an increase of about 0.4% year-on-year, with same-store sales rising by approximately 32.99%[29]. Cost and Expenses - Distribution and selling costs were approximately RMB 2.325 billion, a decrease of about RMB 0.038 billion, down approximately 1.6% year-on-year[23]. - Administrative expenses were approximately RMB 423 million, an increase of about RMB 8 million, up approximately 1.8% year-on-year[23]. - The overall operating profit margin for the supermarket segment decreased by 0.73 percentage points to approximately 1.31%[26]. Store Operations - The group opened 161 new stores during the period, including 34 direct-operated and 127 franchise stores, with 79.5% located in the Yangtze River Delta region[36]. - The group closed 99 stores during the period, including 23 direct-operated and 76 franchise stores, resulting in a net increase of 40 stores in the supermarket segment[37]. - As of June 30, 2021, the group had a total of 3,254 stores, with approximately 85.3% located in the East China region[40]. Supply Chain and Product Strategy - The group enhanced its supply chain integration, optimizing product categories and focusing on "quality fresh" offerings[42]. - The group actively adjusted its product category structure, controlling stockout rates and shortening turnover days to enhance consumer perception and sales of core categories[42]. - The group launched its own brand series, including "Lianhua Quality," "Youxiang," and "Youpin Life," to strengthen market competitiveness[44]. Marketing and Consumer Engagement - The group improved its marketing strategies, focusing on consumer engagement and enhancing the effectiveness of promotional activities through collaboration with JBP suppliers[47]. - The group emphasized the development of its membership system and private traffic operations, increasing new member acquisition through online channels[51]. - The group aims to create a unified brand strategy to enhance brand awareness and improve consumer shopping experiences[49]. Digital Transformation - The group focused on digital store transformation, enhancing operational efficiency through the implementation of a digital store system and advanced technologies like big data and AI[56]. - The company aims to enhance its digital systems across operations, procurement, sales, distribution, and finance, improving operational efficiency in large supermarkets[63]. - The digitalization of supermarket stores will be consolidated, maintaining efficiency gains and gradually covering all national stores[63]. Future Outlook - In the second half of 2021, the group aims to enhance overall sales and operational capabilities, with a focus on expanding store locations and optimizing rental costs[60]. - The group anticipates a positive trend in the consumer market as consumer confidence gradually improves in the second half of 2021[58]. - The company has not disclosed any specific future outlook or guidance in the provided documents[87]. Governance and Compliance - The audit committee reviewed the group's unaudited interim accounts for the six months ended June 30, 2021, and found them compliant with applicable accounting standards[78]. - The company has adopted the Securities Trading Code as a guideline for all directors and supervisors regarding securities trading[78]. - Non-listed foreign shareholders have the same rights as domestic shareholders, including the right to attend and vote at shareholder meetings[76].
联华超市(00980) - 2021 - 中期财报