Financial Performance - Revenue for the six months ended September 30, 2023, was RMB 35,768 million, a decrease of 11.9% compared to RMB 40,611 million in the same period of 2022[8] - Gross profit for the same period was RMB 8,889 million, down 12.1% from RMB 10,112 million year-on-year[8] - Operating profit significantly dropped to RMB 19 million, a decline of 96.2% from RMB 500 million in the previous year[8] - The company reported a net loss of RMB 378 million, compared to a loss of RMB 87 million in the same period last year, representing a 334.5% increase in losses[8] - For the six months ended September 30, 2023, revenue from merchandise sales was RMB 34.225 billion, a decrease of RMB 4.859 billion or 12.4% compared to the same period in 2022[21] - Same-store sales growth for the six months ended September 30, 2023, was -5.9%, primarily due to a decline in pork and fresh vegetable CPI, and a decrease in average transaction size[22] - Other income and gains for the six months ended September 30, 2023, amounted to RMB 746 million, a decrease of RMB 56 million or 7.0% compared to RMB 802 million for the same period in 2022[24] - Sales and marketing expenses for the six months ended September 30, 2023, were RMB 8.718 billion, down RMB 660 million or 7.0% from RMB 9.378 billion in the same period of 2022, representing 24.4% of total revenue, a decrease of 1.3 percentage points[25] - Administrative expenses for the six months ended September 30, 2023, were RMB 898 million, a decrease of RMB 138 million or 13.3% compared to RMB 1.036 billion for the same period in 2022, accounting for 2.5% of total revenue, down 0.1 percentage points[26] - Financial expenses for the six months ended September 30, 2023, were RMB 213 million, a decrease of RMB 21 million or 9.0% from RMB 234 million in the same period of 2022[28] - Income tax expenses for the six months ended September 30, 2023, were RMB 184 million, a decrease of RMB 168 million or 47.7% compared to RMB 352 million for the same period in 2022[29] - Net cash generated from operating activities for the six months ended September 30, 2023, was RMB 2.801 billion, a decrease of RMB 326 million or 10.4% from RMB 3.127 billion in the same period of 2022[33] - Net cash inflow from investing activities for the six months ended September 30, 2023, was RMB 263 million, a decrease of RMB 681 million or 72.1% from RMB 944 million in the same period of 2022[34] - The net cash outflow from financing activities for the six months ended September 30, 2023, was RMB 663 million, a decrease of RMB 524 million or 44.1% compared to RMB 1.187 billion for the same period in 2022[35] Store Operations and Expansion - The company launched its first membership store in April 2023, with over 50,000 paid members and a total membership nearing 100,000 by September 30, 2023[11] - The company completed the reconstruction of 8 stores and over 50 partial renovations as part of its large store 2.0 transformation strategy[10] - The company opened 3 new large stores and 7 medium-sized supermarkets in the six months ending September 30, 2023, while closing 4 large stores[12] - The total building area of large stores and medium-sized supermarkets is approximately 13.74 million square meters, with 66.7% being leased properties[12] - As of September 30, 2023, the company has opened three hypermarket locations through leases or acquisitions, with two currently under construction[13] - The total number of physical stores as of September 30, 2023, is 505, comprising 485 hypermarkets and 19 medium-sized supermarkets, with a total building area of 13,785,656 square meters[14] - The company has signed contracts for 18 medium-sized supermarkets, with six currently under construction[13] Employee and Compensation - The total employee count as of September 30, 2023, was 102,101, down from 114,490 a year earlier, with total employee benefits expenses amounting to RMB 4.634 billion[19] - The company has adopted a share option scheme approved by shareholders on August 16, 2023, aimed at aligning the interests of participants with those of the company and its shareholders[45] - The share option scheme is valid for ten years from the adoption date and can be terminated by the company or the board at any time[46] - Eligible participants for the share option scheme include employees, directors, and other relevant individuals expected to provide services to the group[47] - The company granted a total of 60,000,000 stock options to three grantees with an exercise price of HKD 2.18 as of September 30, 2023[51] - The maximum number of shares available for subscription under the stock option plan is capped at 953,970,470 shares, which is 10% of the total shares issued as of the adoption date[50] - The average remaining contractual life of the unexercised share options is 9.89 years as of September 30, 2023[121] Financial Position and Assets - Total assets as of September 30, 2023, amounted to RMB 65,253 million, an increase from RMB 64,118 million as of March 31, 2023[88] - Total liabilities increased to RMB 41,840 million from RMB 39,921 million, indicating a rise of 4.6%[88] - The company's equity totalled RMB 23,413 million, down from RMB 24,197 million, reflecting a decrease of 3.2%[89] - Non-current assets totalled RMB 30,481 million, a slight decrease from RMB 31,037 million[88] - Inventory as of September 30, 2023, was RMB 8,716 million, an increase from RMB 8,474 million, indicating a rise of 2.9%[88] - The company’s capital reserve is RMB 1,244 million, remaining stable from the previous period[92] - The group’s total borrowings amounted to RMB 1.180 billion as of September 30, 2023[110] - The group’s financial risk management includes fair value measurements categorized into three levels based on the observability of inputs used[105] Legal and Regulatory Compliance - The review of the interim financial data did not reveal any issues that would suggest the data was not prepared in accordance with Hong Kong Accounting Standards[85] - The interim financial report includes a consolidated statement of financial position as of September 30, 2023, and a consolidated income statement for the six-month period ending on that date[83] - The company is subject to the regulations of the Hong Kong Stock Exchange and must comply with relevant accounting standards[84] - The report was prepared by 罗兵咸永道, an independent auditor, confirming the accuracy of the financial data[85] Shareholder Information - The company has a significant ownership structure with Alibaba Group being the largest shareholder, indicating strong control over its subsidiaries[80] - The total number of shares held by Alibaba Group as of September 30, 2023, was 20,274,382,712[76] - As of September 30, 2023, major shareholder 吉鑫 holds 4,419,731,966 shares, representing 46.33% of the company's equity[79] - 淘寶中國 directly owns 2,607,565,384 shares, accounting for 27.33% of the company's equity[80] - 淘寶控股有限公司 holds a total of 7,027,297,350 shares, which is 73.66% of the company's equity[80] - 阿里巴巴集團 owns 7,507,666,581 shares, representing 78.70% of the company's equity[80] Capital Expenditures and Commitments - Capital expenditures amounted to RMB 440 million for the six months ended September 30, 2023, up from RMB 258 million in the same period of 2022, primarily related to new store development and digital transformation[138] - The company reported a total of RMB 1,788 million in capital commitments as of September 30, 2023, compared to RMB 2,041 million as of March 31, 2023[156] - The company has contracted capital commitments of RMB 695 million and authorized but not contracted commitments of RMB 1,093 million, totaling RMB 1,788 million[156]
高鑫零售(06808) - 2024 - 中期财报