永辉超市(601933) - 2024 Q2 - 季度财报

Company Profile and Key Financial Indicators Company Information Yonghui Superstores Co., Ltd. (Stock Code: 601933) is a retail company registered in China, with Zhang Xuansong as its legal representative, headquartered in Fuzhou, Fujian Province - Basic company information: Yonghui Superstores Co., Ltd., legal representative Zhang Xuansong[8] Key Accounting Data and Financial Indicators In H1 2024, the company faced a severe retail competitive environment, with operating revenue decreasing by 10.11% to 37.779 billion yuan and net profit attributable to shareholders declining by 26.34% to 275 million yuan, primarily due to reduced customer traffic, lower average transaction value, and store closures H1 2024 Key Accounting Data | Key Accounting Data | This Reporting Period (Jan-Jun) | Prior Period | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 37,779,186,915.06 Yuan | 42,027,399,571.78 Yuan | -10.11% | | Net Profit Attributable to Parent Company Shareholders | 275,314,748.17 Yuan | 373,773,322.41 Yuan | -26.34% | | Net Profit Attributable to Parent Company Shareholders (Excluding Non-Recurring Items) | 29,862,483.55 Yuan | 99,330,362.85 Yuan | -69.94% | | Net Cash Flow from Operating Activities | 2,939,805,871.88 Yuan | 2,587,185,124.84 Yuan | 13.63% | | Indicator | End of This Reporting Period | End of Prior Year | Change from Prior Year-End (%) | | Net Assets Attributable to Parent Company Shareholders | 6,153,385,774.95 Yuan | 5,939,070,640.55 Yuan | 3.61% | | Total Assets | 47,525,361,897.19 Yuan | 52,052,037,800.14 Yuan | -8.70% | H1 2024 Key Financial Indicators | Key Financial Indicators | This Reporting Period (Jan-Jun) | Prior Period | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (Yuan/Share) | 0.03 | 0.04 | -25.00% | | Basic Earnings Per Share (Excluding Non-Recurring Items) (Yuan/Share) | 0.00 | 0.01 | -100.00% | | Weighted Average Return on Net Assets (%) | 4.53 | 4.92 | Decreased by 0.39 percentage points | | Weighted Average Return on Net Assets (Excluding Non-Recurring Items) (%) | 0.49 | 1.31 | Decreased by 0.82 percentage points | - The company attributes performance decline to: 1) intensified retail competition and changing consumer habits leading to decreased customer traffic and average transaction value; 2) proactive closure of underperforming stores; 3) a 0.41 percentage point year-on-year decrease in overall gross margin, resulting in a 1.09 billion yuan reduction in gross profit, which exceeded the 919 million yuan reduction in period expenses[16] H1 2024 Non-Recurring Gains and Losses | Non-Recurring Gains and Losses Item | Amount (Yuan) | | :--- | :--- | | Gains and Losses from Disposal of Non-Current Assets | 210,097,906.89 | | Government Grants | 49,296,614.54 | | Fair Value Changes and Disposal Gains/Losses of Financial Assets | 9,992,035.81 | | Other Non-Operating Income and Expenses | 10,041,045.43 | | Total | 245,452,264.62 | Management Discussion and Analysis Industry and Main Business Overview The company operates in the retail sector, primarily selling selected goods through offline stores and online channels, and is accelerating transformation by deepening supply chain reform amidst a slowdown in H1 2024 social consumer goods retail growth - The company's main business is a combination of offline and online retail, serving consumers of all age groups[19] - Industry background: In H1 2024, total retail sales of consumer goods increased by 3.7% year-on-year, while department store retail sales decreased by 3.0%; the company is accelerating transformation and focusing on supply chain reform in this context[19] Core Competitiveness Analysis The company is actively learning from industry leaders to enhance user experience across product, scenario, and service dimensions, while strengthening its fresh produce supply chain to provide superior shopping experiences - The company's core competitiveness development focuses on learning from excellent peers, enhancing user experience across product, scenario, and service dimensions, and continuously strengthening its fresh produce supply chain[20] Discussion and Analysis of Operations In H1 2024, the company optimized operations across multiple fronts, including online business revenue exceeding 20% with reduced losses, supply chain optimization, strategic store network adjustments (5 new, 62 closed), and continuous investment in organization, logistics, food safety, and digitalization Overall Operating Performance The company's overall operating performance in H1 2024 included total operating revenue of 37.79 billion yuan, net profit attributable to shareholders of 275 million yuan, and a comprehensive gross margin of 21.58% H1 2024 Overall Operating Performance | Indicator | Amount | | :--- | :--- | | Total Operating Revenue | 37.79 Billion Yuan | | Net Profit Attributable to Parent Company Shareholders | 275 Million Yuan | | Net Profit Excluding Non-Recurring Items | 29.8625 Million Yuan | | Comprehensive Gross Margin | 21.58% | Online Business In H1 2024, online business revenue reached 7.84 billion yuan, accounting for 20.8% of total revenue, with significant year-on-year loss reduction and active expansion into new channels like Douyin and Kuaishou - In H1 2024, online business revenue reached 7.84 billion yuan, accounting for 20.8% of total revenue, with a significant year-on-year reduction in losses[22] - "Yonghui Life" self-operated home delivery business achieved sales of 4.22 billion yuan, a 4% year-on-year increase, with APP registered members exceeding 200.4 million households[22] - The company actively expanded into new channels like Douyin and Kuaishou, with durian becoming a top-selling item in Douyin local group purchases, ranking first in both sales and redemption[22] Supply Chain Development In H1 2024, the company optimized its product structure by introducing 20,276 new items and eliminating 22,480, while its private label sales reached 1.28 billion yuan, representing 3.4% of operating revenue - In the first half of the year, the company optimized its product structure, introducing 20,276 new items and eliminating 22,480, with a new product introduction rate of 22.5% and an elimination rate of 24.9%[23] - Private label sales reached 1.28 billion yuan, accounting for 3.4% of operating revenue[23] Store Expansion and Optimization During the reporting period, the company actively optimized its store network by opening 5 new stores and closing 62, resulting in a total of 943 operational stores across 29 provinces and municipalities, with 86 additional stores signed but not yet opened - During the reporting period, the company actively promoted store network optimization, opening 5 new stores and closing 62 stores[24] - As of the end of the reporting period, a total of 943 stores were operational, covering 29 provinces and municipalities nationwide, with 86 stores signed but not yet opened[24] Human Resources and Organizational Development The company is implementing organizational reforms to create a flatter structure, streamline configurations, and enhance employee belonging through benefits like a 92% discount on employee purchases, while also recruiting 817 university graduates through the "1933 Project" - The company is building a flatter organization through structural reforms, streamlining configurations, and enhancing employee belonging by offering benefits such as a 92% discount on employee purchases[31] - To cultivate emerging talent, a total of 817 university students have been recruited through the "1933 Project"[31] Smart Logistics In H1 2024, the company's national logistics operations totaled 25.25 billion yuan, supported by 29 logistics centers covering 800,000 square meters across 29 provinces and municipalities - In H1 2024, national logistics operations totaled 25.25 billion yuan, with 29 logistics centers nationwide covering a total operating area of 800,000 square meters across 29 provinces and municipalities[33] Food Safety The company continuously improves its food safety system, updating 33 related policies and conducting 631,000 self-inspections of agricultural products, with a 3% year-on-year increase in compliance rate, while also learning from peers to enhance overall supply chain food safety governance - The company continuously improves its food safety system, updating 33 related policy guidelines during the reporting period and organizing 631,000 self-inspections of agricultural products by its testing stations, with a 3% year-on-year increase in compliance rate[34] - The company strengthened exchanges and learning with peers like Pang Donglai, drawing on advanced management experience to enhance overall supply chain food safety governance[34] Digitalization Construction As of June 30, 2024, the Technology Department had 487 employees, collaborating with business units to implement digital tools, refine inventory management, and improve operational efficiency - As of June 30, 2024, the Technology Department had 487 employees, collaborating with various business units to promote the application of digital tools, refine inventory management, and enhance operational efficiency[36] Main Business Analysis During the reporting period, the company's main business experienced declines across all dimensions, with retail revenue decreasing by 9.45%, fresh produce and processing revenue by 20.44%, and all regional markets showing year-on-year revenue declines, most notably in East and Central China Changes in Key Financial Statement Items | Item | Current Period Amount (Yuan) | Prior Period Amount (Yuan) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 37,779,186,915.06 | 42,027,399,571.78 | -10.11 | | Operating Cost | 29,628,245,252.09 | 32,786,165,503.87 | -9.63 | | Selling Expenses | 6,513,523,191.26 | 7,264,482,947.30 | -10.34 | | Research and Development Expenses | 133,685,051.80 | 207,361,419.05 | -35.53 | | Investment Income | 275,981,109.67 | 121,781,506.96 | 126.62 | | Net Cash Flow from Investing Activities | -1,602,807,066.72 | 339,673,519.25 | -571.87 | Main Business by Product Category (Unit: Ten Thousand Yuan) | By Product | Operating Revenue | Operating Cost | Gross Margin (%) | YoY Change in Operating Revenue (%) | YoY Change in Gross Margin | | :--- | :--- | :--- | :--- | :--- | :--- | | Fresh Produce and Processing | 1,359,688.60 | 1,190,343.29 | 12.45 | -20.44 | Decreased by 0.77 percentage points | | Food and General Merchandise | 2,176,690.69 | 1,757,301.45 | 19.27 | -0.90 | Increased by 0.18 percentage points | Main Business by Region (Unit: Ten Thousand Yuan) | By Region | Operating Revenue | YoY Change in Operating Revenue (%) | | :--- | :--- | :--- | | Southeast Region | 591,933.64 | -10.89 | | North China Region | 381,895.20 | -7.15 | | East China Region | 807,966.21 | -11.84 | | West China Region | 703,640.73 | -8.78 | | Southwest Region | 602,741.06 | -5.34 | | South China Region | 160,315.72 | -9.37 | | Central China Region | 287,886.73 | -12.36 | Analysis of Assets and Liabilities At the end of the reporting period, the company's total assets were 47.525 billion yuan, an 8.70% decrease from the prior year-end, primarily driven by a significant increase in financial assets held for trading, a decrease in inventory, and the reclassification of long-term borrowings Changes in Key Balance Sheet Items | Item Name | Current Period-End Amount (Yuan) | Prior Year-End Amount (Yuan) | Change (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | | Financial Assets Held for Trading | 2,709,808,027.29 | 735,971,777.07 | 268.19 | Increase due to purchase of structured deposit wealth management products in current period | | Inventory | 5,700,299,097.82 | 8,268,982,538.27 | -31.06 | Inventory decreased due to optimization of stock at period-end, compared to Spring Festival stocking at year-start | | Loans and Advances | 0 | 557,908,591.96 | -100.00 | No related business after transferring equity in Yonghui Yunjin Technology during the reporting period | | Long-Term Borrowings | 0 | 349,889,789.58 | -100.00 | Reclassified to non-current liabilities due within one year | Investment Analysis During the reporting period, the company continued its strategy of activating assets, recouping funds, and focusing on its core business, with financial assets measured at fair value totaling approximately 6.012 billion yuan at period-end, including 348 million yuan in equities and 5.664 billion yuan in other financial products - The company's strategy focuses on its core business, continuously activating assets to recoup funds[46] Changes in Financial Assets Measured at Fair Value (Unit: Yuan) | Asset Category | Beginning Balance | Amount Purchased in Current Period | Amount Sold/Redeemed in Current Period | Ending Balance | | :--- | :--- | :--- | :--- | :--- | | Equities | 388,932,227.74 | 0 | 0 | 348,110,366.74 | | Other | 3,998,519,668.57 | 2,880,000,000.00 | 1,113,653,511.72 | 5,664,263,246.40 | | Total | 4,387,451,896.31 | 2,880,000,000.00 | 1,113,653,511.72 | 6,012,373,613.14 | Significant Asset and Equity Disposals During the reporting period, the company proceeded with three significant asset and equity disposals: selling shares in Dalian Wanda Commercial Management Group, transferring 10% of Hongqi Chain's shares to Sichuan Business Investment, and selling 65% of Yonghui Yunjin Technology's equity to Shanghai Paihui Technology - Disposal of Dalian Wanda Commercial Management Group shares: Total price of 4.53 billion yuan, with adjusted payment plan and introduction of a guarantor; as of the report disclosure date, 891 million yuan has been received, with 3.639 billion yuan remaining to be paid[49] - Transfer of 10% of Hongqi Chain shares: 136 million shares transferred to Sichuan Business Investment, with the transaction approved by SASAC and the State Administration for Market Regulation, the agreement effective, and transfer procedures underway[50] - Disposal of 65% equity in Yonghui Yunjin Technology: Total transfer price of 378 million yuan, with full payment received; the company retains a 35% stake after the transaction[50] Analysis of Major Holding and Participating Companies During the reporting period, logistics and commercial retail were core segments among the company's major holding and participating companies, with logistics firms like Fujian Yuntong and Yonghui Logistics contributing significant net profits, and Sichuan Yonghui and Chongqing Yonghui being key revenue and profit sources among retail subsidiaries Financial Summary of Major Holding and Participating Companies (Unit: Ten Thousand Yuan) | Company Abbreviation | Industry | Total Assets | Net Assets | Net Profit | Operating Revenue | | :--- | :--- | :--- | :--- | :--- | :--- | | Fujian Yuntong | Logistics and Distribution | 186,235.34 | 41,770.79 | 14,601.70 | 647,844.10 | | Yonghui Logistics | Logistics and Distribution | 181,353.55 | 40,408.41 | 9,987.11 | 318,932.67 | | Sichuan Yonghui | Commercial Retail | 388,480.44 | 76,858.36 | 3,268.58 | 461,548.49 | | Chongqing Yonghui | Commercial Retail | 429,666.91 | 43,290.33 | 2,145.61 | 543,109.37 | Corporate Governance Overview of Corporate Governance During the reporting period, the company held its 2023 Annual General Meeting, approving various proposals including amendments to the Articles of Association, annual board reports, financial resolutions, profit distribution, related-party transactions, credit plans, auditor re-appointment, and supervisor elections, ensuring standardized corporate governance operations - The company held its 2023 Annual General Meeting on May 20, 2024, reviewing and approving multiple proposals concerning corporate governance, finance, related-party transactions, and personnel changes[53][54] Changes in Directors, Supervisors, and Senior Management During the reporting period, the company's senior management team underwent several changes, including Huang Mingyue's departure as CFO, succeeded by Wu Kaizhi, and Wu Lefeng's departure as Board Secretary, succeeded by Huang Xiaofeng, alongside other supervisor and vice president level changes Senior Management Changes | Name | Position Held | Change Type | | :--- | :--- | :--- | | Huang Mingyue | Chief Financial Officer | Resigned | | Wu Kaizhi | Chief Financial Officer | Appointed | | Wu Lefeng | Board Secretary | Resigned | | Huang Xiaofeng | Board Secretary | Appointed | | Wu Lefeng | Supervisor | Elected | | Xiong Houfu | Supervisor | Resigned | | Peng Huasheng | Vice President | Resigned | | Wu Guangwang | Vice President | Dismissed | | Lin Jianhua | Vice President | Dismissed | Environmental and Social Responsibility Environmental Information The company and its subsidiaries are not classified as key polluting entities by environmental protection authorities, and during the reporting period, they strictly complied with national environmental regulations, incurring no environmental violations or administrative penalties - The company and its subsidiaries are not classified as key polluting entities, with no environmental violations or penalties during the reporting period[60] Significant Matters Fulfillment of Commitments During the reporting period, company shareholders Zhang Xuansong and Zhang Xuanning continued to strictly fulfill long-term commitments made since the 2010 IPO, including resolving horizontal competition, standardizing related-party transactions, addressing property defects, and implementing housing provident fund systems - Company shareholders Zhang Xuansong and Zhang Xuanning have strictly fulfilled long-term commitments made since the 2010 IPO, including avoiding horizontal competition and standardizing related-party transactions, during the reporting period[64][65] Significant Litigation and Arbitration Matters During the reporting period, the company was involved in multiple significant litigation and arbitration cases, primarily lease and sales contract disputes, with several cases exceeding ten million yuan and some in slow or stalled enforcement, potentially impacting operations - The company has multiple significant litigation and arbitration matters during this reporting period, with relevant information disclosed in interim announcements[68][69] - Litigation and arbitration cases not disclosed in interim announcements or with subsequent progress primarily involve lease and sales contract disputes, with significant amounts, and some cases are in enforcement or trial procedures[70] Significant Contracts and Their Performance The company is performing a significant asset disposal contract to sell its shares in Dalian Wanda Commercial Management Group Co., Ltd. to Dalian Yujin Trading Co., Ltd. for approximately 4.53 billion yuan, with an adjusted payment plan and guarantor, having received 891 million yuan to date - The company signed a supplementary agreement with Dalian Yujin for the disposal of Wanda Commercial Management shares, adjusting the payment plan and adding a guarantor; as of the report disclosure date, a total of 891 million yuan in share transfer payments has been received, with 3.639 billion yuan remaining to be paid[161] Share Changes and Shareholder Information Changes in Share Capital During the reporting period, there were no changes in the company's total share capital or share structure - During the reporting period, there were no changes in the company's total share capital or share structure[163] Shareholder Information As of the end of the reporting period, the company had 222,927 common shareholders, with the top three being Dairy Farm International Holdings Limited (21.08%), Zhang Xuansong (8.72%), and Beijing Jingdong Century Trading Co., Ltd. (8.11%), while Mr. Zhang Xuansong and his concerted parties collectively held 13.57% - As of the end of the reporting period, the company had a total of 222,927 common shareholders[163] Top Ten Shareholders' Holdings | Shareholder Name | Shares Held at Period-End | Percentage (%) | | :--- | :--- | :--- | | Dairy Farm International Holdings Limited | 1,913,135,376 | 21.08 | | Zhang Xuansong | 791,242,298 | 8.72 | | Beijing Jingdong Century Trading Co., Ltd. | 736,437,197 | 8.11 | | Zhang Xuanning | 634,969,840 | 7.00 | | Linzhi Tencent Technology Co., Ltd. | 478,523,106 | 5.27 | | Suqian Hanbang Investment Management Co., Ltd. | 391,402,804 | 4.31 | - Explanation of shareholder relationships: Mr. Zhang Xuansong signed concerted action agreements with several Xishirun private equity funds, holding a combined 13.57%; Zhang Xuanning and Zhang Xuansong are brothers; Beijing Jingdong Century Trading Co., Ltd. and Suqian Hanbang Investment Management Co., Ltd. are concerted parties[166] Financial Report Financial Statements As of June 30, 2024, the company's total assets were 47.525 billion yuan, total liabilities were 41.373 billion yuan, and equity attributable to parent company owners was 6.153 billion yuan, with H1 2024 operating revenue of 37.779 billion yuan and net cash flow from operating activities of 2.940 billion yuan Consolidated Balance Sheet As of June 30, 2024, the consolidated balance sheet shows total assets of 47.525 billion yuan, total liabilities of 41.373 billion yuan, and total owners' equity of 6.152 billion yuan Consolidated Balance Sheet Summary (June 30, 2024) | Item | Amount (Yuan) | | :--- | :--- | | Assets | | | Total Current Assets | 16,644,770,608.52 | | Total Non-Current Assets | 30,880,591,288.67 | | Total Assets | 47,525,361,897.19 | | Liabilities and Owners' Equity | | | Total Current Liabilities | 21,939,984,132.53 | | Total Non-Current Liabilities | 19,433,288,640.86 | | Total Liabilities | 41,373,272,773.39 | | Total Owners' Equity Attributable to Parent Company | 6,153,385,774.95 | | Non-controlling Interests | -1,296,651.15 | | Total Owners' Equity | 6,152,089,123.80 | | Total Liabilities and Owners' Equity | 47,525,361,897.19 | Consolidated Income Statement For H1 2024, the consolidated income statement shows total operating revenue of 37.779 billion yuan, total operating costs of 37.901 billion yuan, and net profit attributable to parent company shareholders of 275 million yuan Consolidated Income Statement Summary (Jan-Jun 2024) | Item | Amount (Yuan) | | :--- | :--- | | I. Total Operating Revenue | 37,779,186,915.06 | | II. Total Operating Costs | 37,901,260,794.72 | | Including: Operating Costs | 29,628,245,252.09 | | Selling Expenses | 6,513,523,191.26 | | III. Operating Profit | 258,249,007.89 | | IV. Total Profit | 323,783,654.06 | | V. Net Profit | 210,827,566.08 | | Net Profit Attributable to Parent Company Shareholders | 275,314,748.17 | | Non-controlling Interests | -64,487,182.09 | Consolidated Cash Flow Statement For H1 2024, the consolidated cash flow statement shows net cash flow from operating activities of 2.940 billion yuan, net cash used in investing activities of 1.603 billion yuan, and net cash used in financing activities of 2.148 billion yuan Consolidated Cash Flow Statement Summary (Jan-Jun 2024) | Item | Amount (Yuan) | | :--- | :--- | | Net Cash Flow from Operating Activities | 2,939,805,871.88 | | Net Cash Flow from Investing Activities | -1,602,807,066.72 | | Net Cash Flow from Financing Activities | -2,147,697,794.38 | | Net Increase in Cash and Cash Equivalents | -810,699,879.36 | | Cash and Cash Equivalents at Period-End | 4,885,936,321.31 | Notes to Financial Statements (Selected) The company's financial statements are prepared on a going concern basis, adhering to Chinese Enterprise Accounting Standards, with key policies including expected credit loss model for financial instruments, moving weighted average cost for inventory, and revenue recognition upon customer obtaining control of goods or services - The company's financial statements are prepared on a going concern basis, adhering to Enterprise Accounting Standards[201][202] - Key accounting policies include: impairment of financial instruments using the expected credit loss model; inventory valuation using the moving weighted average method; and revenue recognition when the customer obtains control of goods[216][225][253]