Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 4,224,862 thousand, a decrease of 25.4% compared to RMB 5,659,926 thousand for the same period in 2023[7]. - Gross profit for the same period was RMB 2,797,379 thousand, resulting in a gross margin of 66.2%, up from 64.0% in the previous year[7]. - The company reported a loss attributable to owners of RMB (1,336,774) thousand, compared to a profit of RMB 128,196 thousand in the prior year, reflecting a loss margin of -31.6%[7]. - Basic and diluted loss per share was RMB (0.31) compared to earnings of RMB 0.03 per share in the previous year[7]. - The company reported a total loss attributable to shareholders of RMB 1,336.8 million, a decline of 1,142.8% compared to a profit of RMB 128.1 million in the same period of 2023[26]. - The core net loss attributable to shareholders was RMB 383.8 million, compared to a core net profit of RMB 251.3 million in the same period of 2023, a decrease of 252.7%[26]. - The company reported a net loss of RMB 1,423,256 thousand for the six months ended June 30, 2024, compared to a profit of RMB 113,449 thousand in the prior year[124]. - The company reported a total comprehensive loss of RMB 1,505,086 thousand for the six months ended June 30, 2024[131]. Operational Metrics - The number of operating self-managed malls decreased to 85 from 87, with a total operating area of 7,885,050 square meters and an average occupancy rate of 81.6%[11]. - The total number of malls operated by the company was 352, with a total operating area of 21,201,448 square meters, covering 210 cities[11]. - The company experienced a decline in the average occupancy rate for managed malls, which fell to 82.8% from 85.7%[11]. - The company operates a total of 85 self-operated malls and 267 managed malls, covering 210 cities across 30 provinces, with a total operating area of 21,201,448 square meters[61]. - The average occupancy rate for self-operated malls is 81.6%, while managed malls have an average occupancy rate of 82.8%[62]. Expenses and Costs - Selling and distribution expenses were RMB 463.2 million, accounting for 11.0% of revenue, a decrease of 23.6% from RMB 606.2 million (10.7% of revenue) in the same period of 2023[22]. - Administrative expenses were RMB 700.4 million, representing 16.6% of revenue, down 22.7% from RMB 905.8 million (16.0% of revenue) in the same period of 2023[23]. - The company's sales and service costs were RMB 1,427.5 million, down 29.9% from RMB 2,037.6 million in the same period of 2023[17]. - The total salary expenditure during the reporting period was RMB 1,116.6 million, a decrease from RMB 1,354.4 million in the same period of 2023[50]. - The total employee costs for the six months ended June 30, 2024, were RMB 1,057,430 thousand, down 22.1% from RMB 1,356,070 thousand in 2023[175]. Cash Flow and Liquidity - The company experienced a net cash outflow from operating activities of RMB 821.3 million, a decrease of RMB 2,889.5 million compared to a net inflow of RMB 2,068.2 million in the same period last year[34]. - The company’s cash and cash equivalents decreased to RMB 2,380.3 million from RMB 2,529.8 million at the end of 2023, a reduction of RMB 149.5 million[33]. - The company’s net cash used in investing activities was RMB 113,067 thousand, a decrease from RMB 734,465 thousand in the previous year[139]. - The company plans to continue discussions with banks and financial institutions regarding financing arrangements to improve liquidity[146]. - The company’s management believes that liquidity risks are manageable and will not significantly impact the company’s ongoing operations[146]. Debt and Financial Position - The total debt of the company as of June 30, 2024, was RMB 31,346.4 million, with bank and other borrowings amounting to RMB 29,574.0 million[37]. - The debt-to-asset ratio increased slightly to 55.8% as of June 30, 2024, compared to 55.6% at the end of 2023[42]. - The interest coverage ratio decreased to 0.98 from 1.42 in the previous year, indicating a decline in the ability to cover interest expenses[43]. - The company reported a significant loss of RMB 85,531 thousand from fair value changes in financial instruments for the six months ended June 30, 2024, compared to a loss of RMB 4,960 thousand in 2023[168]. Strategic Initiatives - The company is focusing on market expansion despite the current financial challenges, with plans to enhance operational efficiency in existing malls[11]. - Future outlook indicates a commitment to new product development and technology integration to drive growth in the upcoming periods[11]. - The company aims to leverage its leading position in the industry to capture growth opportunities amid ongoing urbanization and rising consumer demand[13]. - The company has launched a "3+Star Ecosystem" strategy, focusing on high-end appliances with plans to open 100 high-end living appliance stores nationwide within two years[64]. - The company is expanding into the new energy vehicle sector, with over 60,000 square meters of new space for electric vehicle showrooms and high-end used car stores added during the reporting period[68]. Shareholder Information - The company has a total of 4,354,732,673 shares issued as of June 30, 2024, including 3,613,447,039 A shares and 741,285,634 H shares[84]. - CEO Che Jianxing holds 1,023,348,353 A shares, representing 28.32% of the A shares and 23.50% of the total shares[84]. - The company’s major shareholder, Red Star Macalline Holdings, holds 980,325,353 A shares, which is 27.13% of the A shares and 22.51% of the total shares[90]. - The company did not recommend any dividend payment for the six months ending June 30, 2024[99]. - The company’s board members and senior executives have disclosed their shareholdings in accordance with regulatory requirements[87]. Investment Properties - The company reported a fair value loss on investment properties of RMB 1,177.5 million during the reporting period, attributed to increased incentives to retain tenants amid economic fluctuations[30]. - The fair value changes of investment properties amounted to RMB 1,177,523 thousand for the six months ended June 30, 2024, significantly higher than RMB 296,248 thousand in the previous year[137]. - The total fair value of investment properties, including properties under construction and leased properties, was 97,305,200 thousand RMB as of June 30, 2024[184]. - The rental income from investment properties is assessed using the income approach, with a capitalization rate ranging from 6.0% to 7.0%[188]. Project Developments - The company has 287 signed projects in preparation for managed malls that have obtained land use rights[62]. - The company has terminated several projects, including the "New Generation Smart Home Mall Project" and the "Tmall Home Decoration Same City Station Project," reallocating remaining funds to replenish working capital[119]. - The total planned investment for the Tianjin Beichen Mall project is RMB 245,137,000, fully utilized[101]. - The total planned investment for the Hohhot Yuquan Mall project is RMB 76,825,000, fully utilized[101]. - The total planned investment for the Urumqi Exhibition Mall project is RMB 669,084,000, fully utilized with a remaining balance of RMB 2,351,000[101].
红星美凯龙(01528) - 2024 - 中期财报