Financial Performance - The group's main business revenue for the six months ended June 30, 2022, was approximately RMB 4,866,000,697, a decrease of about 8.8% compared to the same period last year [9]. - Gross profit was approximately RMB 631,534,745, an increase of about 6.0% compared to the same period last year [10]. - Total profit was approximately RMB 24,751,746, a decrease of about 64.5% compared to the same period last year [11]. - Net profit attributable to the parent company was approximately RMB -14,398,632, a decrease of about 154.2% compared to the same period last year [12]. - The retail business revenue increased by approximately 3.9% to RMB 1,788,527,000 compared to RMB 1,721,475,000 in the same period last year, driven by heightened consumer demand for essential goods due to the pandemic [25]. - Same-store sales growth was reported at 6.4% year-on-year, reflecting effective category management strategies implemented by the company [25]. - The net profit attributable to the parent company was reported at a loss of RMB 14,399,000, compared to a profit of RMB 26,589,000 in the previous year, reflecting the challenges faced during the reporting period [34]. - The total comprehensive income attributable to the parent company for the first half of 2022 was RMB 5,465,209, a decrease from RMB 42,608,150 in the same period of 2021 [76]. - The company reported a net loss of RMB 24,199,553 for the first half of 2022, compared to a profit of RMB 27,097,767 in the same period of 2021 [97]. Business Operations - As of June 30, 2022, the total number of retail stores was 151, including 139 directly operated stores and 12 franchised stores, with a total operating area of approximately 231,480 square meters [15]. - During the reporting period, the group opened 3 new directly operated convenience stores and 1 franchised convenience store, while closing 2 comprehensive supermarkets, 11 directly operated convenience stores, and 1 franchised convenience store due to lease expirations and operational strategy adjustments [15]. - The group implemented strict pandemic prevention measures, ensuring a safe shopping environment and maintaining supply of essential goods during the COVID-19 outbreaks [17]. - The group adjusted its business operations by integrating procurement, marketing, operations, and e-commerce departments to enhance customer response efficiency [18]. - The company actively participated in community events and launched themed promotions to enhance consumer engagement and drive sales during festive periods [21]. Financial Position - As of June 30, 2022, the group's current assets totaled RMB 4,837,413,877, including cash and cash equivalents of RMB 936,102,881 and inventory of RMB 1,354,216,576 [39]. - The total liabilities of the group amounted to RMB 2,153,417,717, with bank loans ranging from 2.90% to 4.35% annual interest rate [40]. - The asset-liability ratio as of June 30, 2022, was approximately 74.1%, slightly higher than 73.2% on June 30, 2021 [41]. - The company's current assets totaled RMB 4,837,413,877 as of June 30, 2022, while non-current assets amounted to RMB 2,870,750,893 [66]. - The total assets of Beijing Jingkelong Commercial Group Co., Ltd. amounted to RMB 7,708,164,770, compared to RMB 7,842,092,472 as of December 31, 2021 [66]. - Total liabilities as of June 30, 2022, amounted to RMB 2,862,818,579, an increase of 9.1% from RMB 2,623,989,801 at the end of 2021 [72]. - The company’s total equity as of June 30, 2022, was RMB 1,541,060,008, down from RMB 1,565,259,561 at the end of 2021, a decline of 1.5% [72]. Inventory and Assets - The total inventory reported was RMB 1,354,216,576 as of June 30, 2022 [66]. - The company's inventory as of June 30, 2022, was RMB 203,802,779, compared to RMB 217,868,602 at the end of 2021, indicating a decrease of 6.5% [70]. - Inventory is classified into categories including finished goods, raw materials, work in progress, and low-value consumables [141]. - Inventory is measured at the lower of cost and net realizable value, with provisions for inventory write-downs recognized when net realizable value is lower than cost [143]. Employee and Operational Costs - The employee cost during the reporting period totaled RMB 355,275,406, a decrease from RMB 372,460,621 in the same period last year [45]. - Total operating costs for the first half of 2022 were RMB 5,280,944,416, down 9.0% from RMB 5,807,988,298 in the first half of 2021 [74]. - The company incurred operating costs of RMB 1,431,050,083 in the first half of 2022, up from RMB 1,357,376,531 in the same period of 2021, which is an increase of about 5.4% [78]. Cash Flow and Financing - Cash flow from operating activities for the first half of 2022 was RMB 735,989,526, down from RMB 383,228,539 in the first half of 2021 [80]. - The company reported sales of goods and services received cash of RMB 5,646,346,615 in the first half of 2022, compared to RMB 6,108,306,563 in the same period of 2021, reflecting a decrease of approximately 7.5% [80]. - The cash flow from investing activities for the first half of 2022 resulted in a net outflow of RMB 461,524,718, compared to an outflow of RMB 11,876,064 in the same period of 2021 [82]. - The cash flow from financing activities for the first half of 2022 was a net outflow of RMB 359,553,177, compared to an outflow of RMB 332,615,173 in the same period of 2021 [82]. - The ending cash and cash equivalents balance for the first half of 2022 was RMB 256,085,581, down from RMB 318,772,739 at the end of the first half of 2021 [86]. Shareholder Information - Major shareholder Beijing Chaofu State-owned Assets Management Co., Ltd. holds approximately 72.77% of the total issued domestic shares, equating to 167,409,808 shares [58]. - The total number of shares held by individual directors and executives ranges from 70,000 to 5,210,428, representing between 0.03% and 2.26% of the total issued domestic shares [55]. - China Galaxy International Asset Management holds 24,970,000 H shares, representing approximately 13.71% of the total issued H shares [60]. Accounting Policies - The financial statements are prepared based on the assumption of going concern and in accordance with the relevant accounting standards [101]. - The accounting period for the group is aligned with the calendar year, running from January 1 to December 31 [104]. - The group uses Renminbi as its functional currency for accounting purposes, reflecting the primary economic environment in which it operates [104]. - The financial statements of the group comply with the requirements of accounting standards, accurately reflecting the financial position as of June 30, 2022, and the operating results and cash flows for the first half of 2022 [102]. Impairment and Provisions - The group conducts impairment tests on long-term assets, including fixed assets and intangible assets, to determine if their recoverable amount is less than their carrying value [169]. - If the recoverable amount is lower than the carrying value, an impairment loss is recognized, calculated based on the higher of fair value less costs to sell and the present value of expected future cash flows [170]. - The group recognizes impairment losses on financial assets measured at amortized cost and debt instruments measured at fair value, including receivables and long-term receivables [130]. Revenue Recognition - Revenue is recognized when control of goods is transferred to customers, with specific criteria outlined for contract approval and payment terms [175]. - Sales revenue is recognized upon sale to consumers or upon acceptance by customers in wholesale transactions, with adjustments for reward points granted to customers [179]. - Service revenue is recognized when the amount can be reliably measured, and the related economic benefits are likely to flow to the company [181].
北京京客隆(00814) - 2022 - 中期财报