XHCG(SH:600785)2021-08-19 16:00Financial Performance - The company's operating revenue for the first half of 2021 was approximately RMB 3.04 billion, an increase of 3.55% compared to the same period last year[21]. - The net profit attributable to shareholders of the listed company decreased by 25.98% to approximately RMB 37.80 million compared to the same period last year[21]. - The net cash flow from operating activities increased significantly by 243.62% to approximately RMB 416.29 million compared to the same period last year[21]. - The total assets of the company at the end of the reporting period were approximately RMB 8.08 billion, representing a 29.75% increase from the end of the previous year[21]. - The net assets attributable to shareholders of the listed company decreased by 16.37% to approximately RMB 1.98 billion compared to the end of the previous year[21]. - Basic earnings per share for the first half of 2021 were RMB 0.1675, down 25.98% from RMB 0.2263 in the same period last year[22]. - The weighted average return on net assets decreased by 0.20 percentage points to 1.93% compared to the same period last year[22]. - The company reported a non-recurring loss of approximately RMB 1.40 million from the disposal of non-current assets[23]. - The company achieved operating revenue of CNY 303,907.63 million, a year-on-year increase of 3.55%[31]. - The net profit attributable to shareholders was CNY 3,779.72 million, a year-on-year decrease of 25.98% due to an increase in related period expenses by CNY 4,839.64 million[31]. Business Operations - The main business revenue accounted for 86.17% of total operating revenue, with supermarkets contributing 66.93%, department stores 13.30%, and electronics 19.09%[27]. - The company operates 288 physical stores, including 11 department stores with a total area of 520,200 square meters, 192 supermarkets with 560,300 square meters, and 85 electronics stores with 132,500 square meters[26]. - The rental business contributed 13.83% to total operating revenue, with rental income after deducting property costs being a significant profit source[27]. - The company is accelerating the integration of online and offline retail operations to enhance market competitiveness[30]. - The company's online sales through the new retail model achieved approximately 30 million yuan in sales, a year-on-year increase of 45%[32]. - The supermarket segment's online sales reached 121 million yuan, with a year-on-year growth of 48% and over 2.1 million online orders processed[32]. - The electrical appliance segment focused on inventory reduction and new product launches, enhancing operational quality and participating in government initiatives to boost market confidence[35]. - The company is actively expanding its logistics business, implementing a new OS system to enhance efficiency and transparency in delivery processes[36]. - The company plans to transform the Xining store into a shopping center, with necessary resource support for brand adjustments[37]. - The company has opened 22 new stores during the reporting period[38]. - The company closed 10 stores during the reporting period, primarily due to losses and contract expirations[39]. Financial Management - The company does not plan to distribute profits or increase capital reserves during this reporting period[4]. - There were no non-operating fund occupations by controlling shareholders or related parties during the reporting period[6]. - Financial expenses surged by 171.21% to CNY 113,894,576.50, up from CNY 41,995,316.57 in the previous year[43]. - The company's short-term borrowings decreased by 22.86% to CNY 827,321,162.86 from CNY 1,072,490,681.65 at the end of the previous period[44]. - The amount of prepayments decreased significantly by 60.20% to CNY 127,807,620.50 from CNY 321,110,934.80 year-on-year[44]. - The company's construction in progress increased by 99.41% to CNY 180,525,561.71 from CNY 90,530,670.31 at the end of the previous period[44]. - The company's long-term borrowings decreased by 41.72% to CNY 97,940,000.00 from CNY 168,040,000.00 year-on-year[45]. - The company's deferred income decreased by 20.10% to CNY 10,982,671.24 from CNY 13,745,786.71 in the previous year[44]. - The company has made strategic adjustments in its financial management, including a focus on reducing short-term borrowings and managing cash flow effectively[45]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 8,844[74]. - The largest shareholder, Wumart Technology Group Co., Ltd., holds 81,570,343 shares, representing 36.15% of total shares[75]. - Shanghai Baoyin Chuangying Investment Management Co., Ltd. holds 65,415,643 shares, accounting for 28.99%, with 34,165,417 shares pledged[75]. - The company has not experienced any changes in total share capital or share structure during the reporting period[73]. - The top ten shareholders collectively hold a significant portion of the company's shares, indicating concentrated ownership[75]. Legal and Compliance - The company’s subsidiary, Yinchuan Xinhua Department Store, is involved in a significant lawsuit due to a fire incident affecting its leased commercial property, which has led to ongoing legal proceedings[65]. - The actual controller and shareholders have committed to not engage in any business activities that compete directly or indirectly with the company and its subsidiaries in the Ningxia Hui Autonomous Region and surrounding areas[60]. - The company has committed to supervise and restrict its own and related enterprises' business activities to avoid competition with its subsidiaries[61]. - The company’s controlling shareholder, Wumart Holdings, committed to minimizing or avoiding related party transactions with Xinhua Department Store and its subsidiaries[63]. Corporate Governance - The company appointed Mr. Song Xingchao as the new CFO on February 26, 2021, following the resignation of the previous CFO, Mr. Wang Baolu, due to job relocation[54]. - The company has a governance structure that includes a shareholders' meeting, board of directors, and executive committee, ensuring effective decision-making[118]. - The company has a history of strategic partnerships, including a significant share transfer to Beijing Wumart Commercial Group in 2006, enhancing its market position[114]. Accounting Policies - The financial statements are prepared in accordance with the accounting standards for enterprises, reflecting the company's financial position, operating results, changes in shareholders' equity, and cash flows accurately[125]. - The company confirms that all controlled subsidiaries are included in the consolidated financial statements, with necessary adjustments made for accounting policy inconsistencies[129]. - The company recognizes the operating results and cash flows of subsidiaries from the date control is obtained in non-same control business combinations[130]. - The company has established specific accounting policies for joint ventures, recognizing assets and liabilities based on agreements[132]. - The company applies the exchange rate on the transaction date for foreign currency transactions, with differences recognized in the current period's profit or loss[134]. - The company has a clear policy for the translation of foreign currency financial statements, ensuring accurate representation of financial results[135]. Future Outlook - The management did not provide specific future guidance or performance outlook in the available data[82].