01817.HK announced its interim results for 2021. For the six months ended June 30, 2021, the company's total revenue was 1.204 billion yuan, an increase of 10.75% over the same period last year. Gross profit was 624 million yuan, an increase of 48.17% over the same period last year. Gross profit margin increased from 38.7% to 51.8% in the six months ended June 30, 2020. The profit attributable to the owner of the parent company during the period was RMB 48.511 million, while the loss in the same period was RMB 133 million, which was substantially reversed compared with the same period last year, and the basic profit per share was RMB5.32fen.
The announcement said that the increase in revenue during the period was mainly due to the significant reduction in the impact of the COVID-19 epidemic on the Group's business and the Group's adoption of enhanced sales management measures for its offline distribution channels.
During the reporting period, the sales revenue of GXG and gxg.kids, the group's main brands, increased by 20.3% and 18.7% respectively over the same period in 2020. The increase in GXG sales revenue is mainly due to the reduced impact of the COVID-19 epidemic, strategic adjustments to various brands, appropriate reduction of product discount rates, optimization and integration of offline channels, and average store sales growth. The increase in gxg.kids sales revenue is mainly due to the revenue growth of offline distribution channels due to the reduced impact of the COVID-19 epidemic. In addition, as the group adjusted its brand positioning to improve store efficiency by reducing the number of stores, the sales revenue of gxg jeans and Yatlas, another major brand of the group, decreased by 23.0% and 16.7% respectively compared with the same period in 2020.
In the first half of 2021, the impact of the COVID-19 epidemic on the group's business has been significantly reduced. As a result, the Group recorded strong growth in offline channel revenue. The Group believes that its performance will continue to recover steadily for the rest of the year. In addition, thanks to its multi-brand strategy and the advantages of its online sales channels to adapt to the accelerated change in customer shopping behavior from offline to online during and after the COVID-19 epidemic, the Group is confident about its future as a leading fashion company in China.
In order to further consolidate its leading position in China's fashion and clothing industry, the Group is committed to implementing the following growth strategies: diversifying product mix and brand matrix through multi-brand strategies to deepen the integration of online and offline sales channels, adjust existing brand strategies and launch new product lines to meet changing market needs. Adopt continuous and innovative marketing initiatives and analysis, identify potential consumer groups, and enhance the member experience through new retail technologies and advantages; further optimize the leading supply chain network, enhance customer service capabilities, and provide quality products and services to meet customer needs; and reform the organizational structure and business model to improve operational efficiency and enable the Group to respond to the market more quickly.