Revenue Performance - Revenue for the six months ended June 30, 2024, was RMB 10.90 billion, a decrease of approximately 7.4% year-on-year[1] - For the six months ended June 30, 2024, the total revenue was RMB 11,798,972,000, a decrease of 7.9% compared to RMB 12,812,422,000 for the same period in 2023[10] - The revenue from merchandise sales was RMB 10,896,547,000, down 7.4% from RMB 11,771,962,000 in the previous year[10] - The revenue from large-scale supermarkets was RMB 5,220,509,000, a decrease of 11.1% from RMB 5,873,177,000 in the previous year[13] - The revenue from convenience stores was RMB 785,340,000, down 7.9% from RMB 852,375,000 in the prior year[13] - The revenue from large-scale supermarkets was approximately RMB 4.724 billion, a year-on-year decrease of about 10.0%[48] - The revenue from supermarkets was approximately RMB 5.372 billion, a year-on-year decrease of about 4.9%[51] Profitability - Gross profit was approximately RMB 1.25 billion, a decrease of RMB 235 million, with a gross margin of 11.49%[2] - The operating profit for the six months was RMB 106,849,000, a decrease of 39.7% compared to RMB 177,293,000 in the same period last year[14] - The company reported a pre-tax profit of RMB 17,522,000 for the six months ended June 30, 2024, compared to RMB 9,191,000 in the same period of 2023[14] - The net loss attributable to shareholders was approximately RMB 55 million, an improvement of RMB 62 million year-on-year[2] - The loss attributable to the company's shareholders was approximately RMB 0.55 million, a reduction in losses of about RMB 0.62 million year-on-year, with a net loss margin of approximately 0.50%[45] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 20.00 billion, down from RMB 20.99 billion as of December 31, 2023[3] - Non-current assets decreased to RMB 11.96 billion from RMB 13.39 billion[3] - Current assets included cash and cash equivalents of RMB 2.37 billion, down from RMB 2.45 billion[3] - Total liabilities decreased to RMB 19.59 billion from RMB 20.54 billion[4] - The net current liabilities as of June 30, 2024, were RMB 7,349,767,000, down from RMB 8,505,312,000 as of December 31, 2023[10] - Accounts payable decreased to RMB 2.885 billion as of June 30, 2024, from RMB 2.952 billion as of December 31, 2023[30] Store Operations - The company opened 123 new stores during the review period, bringing the total number of stores to 3,343[1] - The company closed 136 stores during the same period, comprising 45 direct-operated and 91 franchise stores[61] - As of June 30, 2024, the company operated a total of 3,343 stores, with approximately 84% located in the East China region[62] Cost Management - Total operating expenses increased to RMB 15,999,000 from RMB 1,557,000, showing a significant rise[18] - Distribution and selling costs were approximately RMB 1.973 billion, down RMB 208 million or 9.5% year-on-year, accounting for 18.11% of revenue, a decrease of 0.42 percentage points[39] - Administrative expenses were approximately RMB 324 million, a decrease of RMB 74 million or 18.5% year-on-year, representing 2.97% of revenue, down 0.40 percentage points[40] - Interest expense on lease liabilities decreased to RMB 94,010,000 from RMB 111,559,000, a reduction of approximately 15.8%[19] Strategic Initiatives - The company is undergoing strategic adjustments, including the closure of loss-making outlets, which has impacted overall sales performance[35] - The company emphasized the development of its private label products, launching a project for 100 low-priced promotional items to enhance market competitiveness[63] - The company initiated a strategic layout for the "silver economy," focusing on community-based services for elderly consumers[64] - The company implemented a marketing strategy around key events, successfully launching a membership program that increased brand loyalty[65] - The company optimized logistics processes to reduce operational costs and enhance profitability, implementing standardized procedures to improve cold chain logistics efficiency[66] - The company launched digitalization projects aimed at enhancing both online and offline consumer experiences, with four major digital initiatives already piloted[67] Human Resources - As of June 30, 2024, the company employed 23,415 staff members, with total labor costs amounting to approximately RMB 974.99 million[68] - The company focused on organizational efficiency by streamlining its structure and optimizing labor costs, enhancing the performance of frontline employees[68] - The company has committed to enhancing talent acquisition and training, establishing a recruitment platform to balance human resource allocation across subsidiaries[69] Compliance and Governance - The company has adopted revised Hong Kong Financial Reporting Standards, which will not have a significant impact on the financial statements[8] - The audit committee has reviewed the accounting principles adopted by the group and found no disagreements with the management[76] - The company has adopted the Securities Trading Standard Code, ensuring compliance by all directors and relevant employees during the review period[77] - The company confirmed compliance with the Corporate Governance Code, with minor deviations noted regarding the rotation of directors and attendance at board meetings[78][79] Future Outlook - In the second half of 2024, the company plans to respond to China's economic policies aimed at boosting domestic consumption, which is expected to create new growth opportunities in the retail sector[70] - The company aims to deepen overall business reforms, focusing on core capabilities and enhancing revenue-generating capabilities through channel expansion and supply chain optimization[71] - The company will issue up to 360 million new domestic shares at a subscription price of RMB 1.00 per share, providing strong financial support for business transformation[73]
联华超市(00980) - 2024 - 中期业绩