Financial Performance - Total operating revenue for the six months ended June 30, 2024, was RMB 1,944.7 million, a decrease of 12.3% compared to RMB 2,218.2 million in the same period last year[1]. - Same-store sales declined by 13.3% during the period[1]. - Total sales revenue (including VAT) for the period was RMB 4,692.8 million, down 12.5% year-on-year[1]. - Operating profit for the period was RMB 193.8 million, a decrease of RMB 71.0 million from RMB 264.8 million in the previous year[1]. - The loss attributable to equity holders of the company was RMB 18.6 million, compared to a profit of RMB 63.1 million in the same period last year[1]. - Total revenue for the six months ended June 30, 2024, was RMB 4,222,156 thousand, a decrease of 12.5% compared to RMB 4,823,689 thousand for the same period in 2023[10]. - Self-operated sales amounted to RMB 995,320 thousand, down 14.5% from RMB 1,164,266 thousand in the previous year[10]. - Total sales from licensed counters were RMB 2,624,925 thousand, a decline of 12.6% from RMB 3,003,808 thousand in 2023[10]. - Other operating income, including consulting and management service fees, rental income, and credit service income, totaled RMB 601,911 thousand, down 8.2% from RMB 655,615 thousand[10]. - The group reported a pre-tax loss of RMB 220,404 thousand for the six months ended June 30, 2024, compared to a loss of RMB 221,860 thousand in the same period of 2023[19]. - The income tax expense for the current period was RMB 40,036 thousand, significantly lower than RMB 79,058 thousand in the previous year[20]. - The group’s employee costs totaled RMB 239,663 thousand, a decrease of 4.2% from RMB 250,802 thousand in the prior year[16]. - Rental income from investment properties was RMB 304,601 thousand, down from RMB 341,058 thousand in the previous year[17]. - Financing income for the six months was RMB 22,816 thousand, compared to RMB 27,444 thousand in the same period of 2023[19]. - The company recorded total sales revenue of RMB 4,692.8 million for the six months ended June 30, 2024, a decrease of 12.5% compared to the same period last year[27]. - Same-store sales decreased by 13.3% during the review period[27]. - Operating profit for the period was RMB 193.8 million, down from RMB 264.8 million in the previous year, representing a decrease of RMB 71.0 million[27]. - Pre-tax loss for the first half of 2024 was RMB 17.8 million, compared to a pre-tax profit of RMB 60.6 million in the same period last year[43]. - The company recorded a net loss attributable to shareholders of RMB 18.6 million in the first half of 2024, compared to a profit of RMB 63.1 million in the same period last year[46]. - Employee costs decreased by 4.4% to RMB 239.7 million in the first half of 2024, while same-store employee costs fell by 4.7%[35]. - Other operating expenses decreased by 3.1% to RMB 346.8 million in the first half of 2024, primarily due to the closure of underperforming businesses[38]. Assets and Liabilities - Non-current assets totaled RMB 8,202.7 million as of June 30, 2024, compared to RMB 8,041.7 million as of December 31, 2023[4]. - Current liabilities amounted to RMB 2,472.8 million, down from RMB 2,841.8 million at the end of the previous year[4]. - Total equity attributable to equity holders was RMB 3,268.8 million as of June 30, 2024, compared to RMB 3,317.1 million at the end of 2023[6]. - As of June 30, 2024, trade receivables amounted to RMB 816.6 million, compared to RMB 681.1 million as of December 31, 2023[23]. - Trade payables as of June 30, 2024, totaled RMB 514.5 million, down from RMB 702.6 million as of December 31, 2023[24]. - Current assets amount to RMB 2,780.5 million as of June 30, 2024, while net assets are RMB 3,268.8 million[49]. - The fair value of financial assets measured at fair value through profit or loss is RMB 68.2 million, representing approximately 0.6% of the group's total assets as of June 30, 2024[50]. - Pledged accounts receivable as of June 30, 2024, total RMB 211.5 million, with pledged properties and investment properties valued at RMB 1,348.4 million and RMB 534.2 million, respectively[51]. - As of June 30, 2024, the total debt to total assets ratio of the group is 24.8%, an increase from 22.5% as of December 31, 2023[48]. Corporate Actions and Governance - The company declared an interim dividend of RMB 0.02 per share[1]. - The board has approved an interim dividend of RMB 0.02 per share, to be paid in Hong Kong dollars[22]. - The company plans to open three new stores in Kunming, Datong, and Mianyang between the second half of 2024 and 2026, expanding its business footprint[28]. - The company has signed lease agreements for stores in Guiyang, Shenyang, and Harbin, with plans for renovations to enhance store image and customer experience[28]. - The group has not purchased, sold, or redeemed any of its listed securities during the six months ending June 30, 2024[52]. - The company has fully complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules as of June 30, 2024[53]. - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2024[55]. - The mid-term report containing all information required by the listing rules will be sent to shareholders and published on the Hong Kong Stock Exchange and the company's website[56]. - The group expresses gratitude to the board, management, and all employees for their contributions and support from shareholders and business partners[57]. - The announcement is made by the executive director and chairman of the company, reflecting the leadership structure as of August 26, 2024[58]. Market Strategy and Adaptation - The company operates and manages department stores, shopping centers, outlet malls, and supermarket networks in China, and provides credit services in Malaysia[7]. - The company aims to adapt to changing market demands and consumer behavior while leveraging its extensive operational experience[26]. - Gross margin for merchandise sales decreased from 13.5% in the first half of 2023 to 13.2% in the first half of 2024[32]. - Net financing costs decreased by RMB 1.5 million or 0.7% to RMB 220.4 million in the first half of 2024[40].
百盛集团(03368) - 2024 - 中期业绩