Financial Performance - In the first half of 2023, the company's revenue was approximately RMB 11.772 billion, a decrease of about RMB 1.813 billion or 13.3% year-on-year[10]. - Gross profit for the period was approximately RMB 1.487 billion, down by about RMB 312 million or 17.3% year-on-year, with a gross margin of 12.63%[11]. - The company reported a pre-tax profit of approximately RMB 9 million, a decrease of about RMB 122 million year-on-year[19]. - The loss attributable to shareholders was approximately RMB 116.461 million, a decrease in profit of about RMB 130.865 million year-on-year, with a net loss margin of 0.99%[21]. - The company reported a net loss of RMB 70,986 for the six months ended June 30, 2023, compared to a profit of RMB 61,407 in the previous year[81]. - The company reported a total comprehensive loss of RMB 116,461,000 for the period, compared to a total comprehensive income of RMB 14,404,000 in the previous year[89]. - The company reported a net loss attributable to shareholders of RMB 2,275,000 for the six months ended June 30, 2023, compared to a profit of RMB 704,000 in the same period of 2022[102]. - The basic loss per share was RMB 0.104, compared to earnings of RMB 0.013 per share in the same period last year[81]. Revenue Breakdown - The large-scale comprehensive supermarket segment recorded revenue of approximately RMB 5.251 billion, a year-on-year decrease of approximately RMB 1.892 billion, representing a decline of 26.5%[25]. - The supermarket segment achieved revenue of approximately RMB 5.650 billion, an increase of approximately RMB 97 million, representing a year-on-year growth of 1.8%[28]. - The convenience store segment recorded revenue of approximately RMB 823 million, an increase of approximately RMB 118 million, representing a year-on-year growth of 16.7%[32]. - Revenue from merchandise sales was RMB 11,771,962 thousand, down 13.4% from RMB 13,585,003 thousand in the previous year[109]. - The performance of the hypermarket segment generated revenue of RMB 5,873,177 thousand, a decrease of 24.4% from RMB 7,773,972 thousand in the prior year[114]. - The supermarket segment reported revenue of RMB 6,038,883 thousand, an increase of 2.3% compared to RMB 5,905,912 thousand in the previous year[114]. - The convenience store segment showed revenue growth to RMB 852,375 thousand, up 16.8% from RMB 729,720 thousand[114]. Cost and Expenses - Distribution and selling costs were approximately RMB 2.181 billion, a decrease of about RMB 141 million or 6.1% year-on-year, accounting for 18.53% of revenue[15]. - Administrative expenses rose to approximately RMB 398 million, an increase of about RMB 21 million or 5.5% year-on-year, representing 3.38% of revenue[16]. - Total operating expenses decreased significantly to RMB 1,557,000 in 2023 from RMB 27,866,000 in 2022, a reduction of 94.4%[118]. - Interest expenses on lease liabilities decreased to RMB 111,559,000 in 2023 from RMB 126,530,000 in 2022, a decline of 11.87%[119]. Cash Flow and Assets - As of June 30, 2023, the group's cash and cash equivalents and time deposits amounted to approximately RMB 815,991.9 million, with a net inflow of approximately RMB 56,928.9 million during the review period, primarily from operating activities[22]. - The net cash generated from operating activities for the six months ended June 30, 2023, was RMB 702,387,000, a significant decline of 55.8% from RMB 1,586,891,000 in the same period of 2022[91]. - Total assets as of June 30, 2023, amounted to RMB 21,678,276, a decrease from RMB 22,988,706 as of December 31, 2022[84]. - The company’s total liabilities decreased to RMB 20,506,453,000 as of June 30, 2023, from RMB 21,742,435,000 as of December 31, 2022, indicating a reduction in overall debt levels[86]. Store Operations - In the first half of 2023, the company opened 141 new stores, including 46 direct-operated stores and 95 franchise stores, with 68.79% of new stores located in the Yangtze River Delta region[40]. - As of June 30, 2023, the company operated a total of 3,362 stores, with approximately 84.47% located in the East China region[41]. - The company closed 131 stores during the review period, including 33 direct-operated and 98 franchise stores[40]. Strategic Initiatives - The company is actively optimizing its leasing strategy, resulting in improved occupancy rates and increased leasing income[12]. - The company is focusing on optimizing product categories and enhancing the competitiveness of products, brands, and displays, with an emphasis on introducing new and trending products[44]. - The company is implementing a digital transformation project in 2023, focusing on enhancing product digitization, optimizing the supply chain, and upgrading the financial digital system[45]. - The company aims to improve operational efficiency by optimizing internal core business processes and enhancing management efficiency[47]. - The company is actively recruiting and training talent, creating a shared platform for talent exchange among subsidiaries[50]. Shareholder Information - As of June 30, 2023, the major shareholders include Shanghai Bailian Group holding approximately 20.03% of the company's shares, and Alibaba Group holding 18.00%[63]. - Bailian Group directly and indirectly holds 513,869,400 shares, representing 45.90% of the total share capital[65]. - Alibaba Group controls multiple entities that collectively own 201,528,000 shares, accounting for 18% of the total share capital[67]. Governance and Compliance - The audit committee reviewed the unaudited interim accounts for the six months ending June 30, 2023, with no disagreements on accounting principles or methods[71]. - The company confirmed compliance with the corporate governance code, except for certain deviations regarding the rotation of directors[73]. - Non-executive directors were absent from a board meeting held on March 28, 2023, due to other work commitments[73]. Market and Economic Environment - The company’s operating environment showed a GDP growth of 5.5% in China, but supermarket retail sales declined by 0.4% year-on-year due to intensified competition[9]. - The group launched several marketing campaigns, including the "Bailian 120th Anniversary" and "55 Shopping Festival," resulting in over 69.55 million brand media exposures and more than 1 million reads on hot topics[51].
联华超市(00980) - 2023 - 中期财报