Financial Performance - Total revenue for the first half of 2024 was RMB 34,708 million, a decrease of 3.0% compared to RMB 35,768 million in the same period of 2023[8]. - Gross profit for the first half of 2024 was RMB 8,526 million, down 4.1% from RMB 8,889 million in the previous year[8]. - Operating profit surged to RMB 621 million, a significant increase of 3,168.4% from RMB 19 million in the same period last year[8]. - Net profit for the period was RMB 186 million, a turnaround from a loss of RMB 378 million in the same period of 2023, representing a 149.2% improvement[8]. - The company reported a basic and diluted earnings per share of RMB 0.02, compared to a loss per share of RMB 0.04 in the previous year[8]. - Revenue from merchandise sales for the six months ended September 30, 2024, was RMB 33.186 billion, a decrease of RMB 1.039 billion or 3.0% compared to the same period in 2023[32]. - Same-store sales growth for the same period was 0.3%, driven by an increase in average transaction value and improved customer loyalty[32]. - Gross profit for the six months ended September 30, 2024, was RMB 8.526 billion, down RMB 3.63 billion or 4.1% from RMB 8.889 billion in the prior year[35]. - Gross margin for the period was 24.6%, a decrease of 0.3 percentage points from 24.9% in the previous year[38]. - Other income and net gains for the six months ended September 30, 2024, were RMB 0.621 billion, a decrease of RMB 1.25 billion or 16.8% from RMB 0.746 billion in the prior year[39]. - Selling and marketing expenses for the same period were RMB 7.667 billion, a decrease of RMB 1.051 billion or 12.1% from RMB 8.718 billion in the previous year[40]. - Cash outflow from operating activities for the six months ended September 30, 2024, was RMB 0.641 billion, a decrease of RMB 3.442 billion or 122.9% from a cash inflow of RMB 2.801 billion in the prior year[51]. - The company reported a total comprehensive loss of RMB 7,765 million for the six months ended September 30, 2024[177]. Assets and Liabilities - Total assets increased by 2.1% to RMB 62,001 million from RMB 60,715 million as of March 31, 2024[8]. - Total liabilities rose by 3.3% to RMB 40,203 million from RMB 38,921 million as of March 31, 2024[8]. - The company's equity totalled RMB 21,798 million, slightly up from RMB 21,794 million, reflecting stable shareholder value[165]. - Cash and cash equivalents decreased to RMB 9,500 million from RMB 11,908 million, indicating a reduction in liquidity[163]. - Total equity amounted to RMB 24,197 million, a decrease of 19% compared to the previous period[172]. - Non-controlling interests totaled RMB 679 million, reflecting a decrease of 359%[172]. - Retained earnings stood at RMB 7,732 million, with a 206% increase compared to the previous period[175]. Business Operations and Strategy - The company launched over 1,100 low-price products under various series to enhance price competitiveness and attract more customers[14]. - The online B2C business achieved mid-single-digit same-store sales growth during the first half of the fiscal year[14]. - The Dazhong Supermarket chain expanded to 30 stores across multiple provinces, achieving mid-to-high single-digit same-store sales growth[17]. - The company opened 6 new M membership stores in cities including Yangzhou, Changzhou, Nanjing, Changshu, Jiaxing, and Wuxi, with membership exceeding 360,000[18]. - The M membership store offers over 4,000 products from nearly 30 countries, with more than 200 new products launched monthly, and private label sales accounting for over 30%[18]. - The company is focused on becoming a market leader by providing fresh, convenient, and affordable shopping environments[31]. - Future outlook includes potential market expansion and new product development strategies[179]. - The company plans to enhance its operational efficiency through technology advancements and strategic partnerships[179]. Employee and Management Information - Employee count decreased to 85,778 as of September 30, 2024, from 102,101 a year earlier, with total employee benefits expenditure amounting to RMB 4.106 billion[26]. - The share option plan was approved by shareholders on August 16, 2023, aimed at aligning the interests of participants with those of the company and its shareholders[75][76]. - The share option plan is valid for ten years from the adoption date, with approximately 8 years and 8 months remaining as of the interim report date[79][80]. - The maximum number of shares available for issuance under the share option plan is capped at 953,970,470 shares, representing 10% of the total shares issued as of the adoption date[86]. - The total number of stock options and rewards available for grant at the beginning of the reporting period was 908,970,470 shares[93]. - The employee trust benefit plans aim to align the interests of eligible participants with the group's interests and encourage long-term growth and profitability contributions[104]. Governance and Compliance - The group has maintained compliance with all provisions of the Corporate Governance Code as of September 30, 2024[62]. - The financial report for the six months ending September 30, 2024, is prepared in accordance with Hong Kong Accounting Standard 34, which does not include all notes typically found in annual financial reports[182]. - The auditor's report on the financial statements is unqualified, indicating no reservations or emphasis of matter[185]. - The management's significant judgments and estimates in preparing the interim financial information are consistent with those applied in the annual financial statements for the year ending March 31, 2024[195]. Shareholder Information - Major shareholder 吉鑫 holds 4,419,731,966 shares, representing 46.33% of the company[147]. - 淘寶中國 directly owns 2,607,565,384 shares, accounting for 27.33% of the company[149]. - 淘寶控股有限公司 holds a total of 7,027,297,350 shares, which is 73.66% of the company[149]. - 阿里巴巴集團 controls 7,507,666,581 shares, representing 78.70% of the company[149]. - The total number of shares held by major shareholders indicates a significant concentration of ownership within the company[147]. - The company is subject to the Securities and Futures Ordinance, which requires disclosure of substantial shareholders[149].
高鑫零售(06808) - 2025 - 中期财报