Core Viewpoint - Gao Xin Retail's interim performance report for the six months ending September 30, 2025, shows a decline in revenue and profit, but the company is focusing on online growth and operational efficiency to drive future performance [1][2][3] Financial Performance - The company reported revenue of RMB 30.502 billion, a decrease of 12.1% compared to RMB 34.708 billion in the same period last year [2] - Gross profit was RMB 7.719 billion, down 9.5% from RMB 8.526 billion year-on-year [2] - Operating profit fell significantly by 56.4% to RMB 271 million from RMB 621 million [2] - The company recorded a net loss of RMB 127 million, compared to a profit of RMB 186 million in the previous year [2] Business Operations - Online B2C business showed robust performance with a same-store order growth of approximately 7.4%, contributing to a same-store sales increase of about 2.1% [2][3] - The company initiated a front warehouse project aimed at exploring new growth points in online business, leveraging existing resources for efficient local delivery [3] - The self-owned brand strategy was upgraded with the launch of a "1+1 dual brand matrix," contributing over 2% to overall performance [3] Strategic Focus - The company plans to focus on three core areas: streamlining and differentiating products, enhancing store modifications to improve customer experience, and accelerating the front warehouse network expansion to capture online market growth [3] - Following the sale of Gao Xin Retail to Dehong Capital, which now holds a 79.16% stake, the company is entering a new phase of transformation away from Alibaba [3]

Core Insights - Gao Xin Retail Co., Ltd. reported a revenue of RMB 30.502 billion for the six months ending September 30, 2025, with a gross margin of 25.3%, an increase of 0.7 percentage points year-on-year, and a net cash position of RMB 11.958 billion [1] Group 1: Financial Performance - The company's revenue reached RMB 30.502 billion, reflecting a solid financial performance [1] - The gross margin improved to 25.3%, indicating enhanced profitability [1] - The net cash position stood at RMB 11.958 billion, showcasing strong liquidity [1] Group 2: Business Operations - Online B2C business showed robust performance with a same-store order growth of approximately 7.4%, contributing to a same-store sales increase of about 2.1% [3] - The company initiated a front warehouse project to achieve efficient local delivery and attract online users, with warehouses established in five locations [3] - Significant advancements were made in national procurement to reduce costs and enhance efficiency, alongside an upgrade of the private label strategy [3] Group 3: Private Label and Logistics - The company leveraged national supply chain resources to build a comprehensive quality control system and pricing advantages for its private label products [5] - The "Chao Sheng" series focuses on direct factory connections to eliminate intermediaries, while the "Run Fa Zhen Xuan" series emphasizes health trends and local flavors [5] - The logistics chain was optimized by reducing external warehouse numbers and introducing competitive bidding for storage services, expected to save over RMB 100 million in costs over the next few years [5] Group 4: Store Development - The company is focusing on store renovations as a key development direction, with new stores in Jiangsu and Anhui serving as models for the next generation of hypermarkets [5] - The sales proportion of fresh and processed goods in the new stores exceeded 30%, significantly higher than the overall average [5] - Plans are in place to complete over 30 store renovations or regional adjustments within the current fiscal year, with an expectation to finish over 200 renovations before the next fiscal year [5]

Core Insights - Gao Xin Retail reported a revenue of 30.502 billion yuan for the six months ending September 30, 2025, with a gross margin of 25.3%, an increase of 0.7 percentage points year-on-year, and a net cash position of 11.958 billion yuan [1] - The company's online B2C business showed robust performance, with same-store order volume growing approximately 7.4%, leading to a same-store sales increase of about 2.1% [1] - The group initiated a front warehouse project to achieve efficient local delivery and acquire online incremental users, establishing front warehouses in five locations by September 2025 [1] Business Developments - The "Chao Sheng" private label series aims to connect directly with factories, eliminating intermediaries and brand premiums, while "Run Fa Zhen Xuan" promotes healthy eating from conceptualization to practical application [1] - The company plans to accelerate store renovations, with over 30 stores targeted for complete or regional renovations in the current fiscal year, and over 200 stores expected to be renovated before the next fiscal year [2] - New stores in Jiangsu and Anhui have adopted a comprehensive store renovation approach, with fresh and processed goods sales accounting for over 30% of total sales [2]

Core Insights - Gao Xin Retail Co., Ltd. reported a revenue of 30.502 billion RMB for the first half of the fiscal year 2026, with a gross margin of 25.3%, an increase of 0.7 percentage points year-on-year [1] - The company has a net cash position of 11.958 billion RMB, providing strong support for business operations and strategic initiatives [1] Business Performance - The online B2C business showed steady performance, with same-store order growth of approximately 7.4%, leading to a same-store sales increase of about 2.1% [3] - The company initiated a front warehouse project, establishing a low-cost model in cities such as Shanghai, Jiangyin, Luoyang, Jinan, and Qingyuan, leveraging resources from large supermarkets to enhance fulfillment efficiency and customer acquisition [3] - Gao Xin Retail is advancing a national joint procurement model, utilizing a four-in-one management system to reduce procurement costs and optimize product hierarchy and display standardization, thereby improving overall operational efficiency [3] - The company has developed a "1+1 dual brand matrix" for its private label products, with the "Chao Sheng" series directly connecting to factories to minimize intermediaries, while "Run Fa Zhen Xuan" focuses on health and local specialties, contributing over 2% to sales in September [3] Logistics and Store Development - Significant logistics optimization has been achieved through the integration of warehousing resources and the introduction of a market-based bidding mechanism, with expected cumulative savings exceeding 100 million RMB over the next few years, enhancing supply chain resilience [3] - Store renovations are a key focus for Gao Xin Retail, with new stores in Jiangsu Kunshan and Anhui Wuwei serving as models for the next generation of large supermarkets, where fresh and processed goods account for over 30% of sales [3] - The company plans to complete over 30 store renovations in the current fiscal year and aims to renovate more than 200 stores cumulatively before the next fiscal year [3] Future Strategy - Over the next three years, Gao Xin Retail will focus on "healthy products + enjoyable experiences + attentive service," targeting families and young customers within a three-kilometer radius, to enhance both experience and efficiency in its retail model, thereby unlocking operational resilience and long-term value [4]