The company's 1H2023 revenue decreased by 18.64% year on year, net profit decreased by 85.30% year on August 30. On August 30, the company announced the 2023 semi-annual report: 1H2023 achieved operating income of 5.66 billion yuan, a year-on-year decrease of 18.64%, and realized net profit of 151 million yuan, converted to fully diluted EPS of 0.03 yuan, a year-on-year decrease of 85.30%, and achieved net profit of 90 million yuan, a year-on-year decrease of 90.37%.
Looking at the single-quarter split, 2Q2023 achieved operating income of 3,043 million yuan, a year-on-year decrease of 15.03%, and realized net profit of 05 million yuan, converted to a fully diluted EPS of 0.001 yuan, a year-on-year decrease of 98.53% over the previous year. Net profit after deducting non-attributable net profit of 126 million yuan was 126 million yuan, compared to 461 million yuan in the same period last year.
The company's comprehensive gross margin for 1H2023 fell 2.65 percentage points, and the cost ratio for the period increased by 10.57 percentage points. 1H2023 The company's comprehensive gross margin was 59.69%, down 2.65 percentage points from the previous year. Looking at the quarterly split, 2Q2023's overall gross margin was 59.59%, down 3.58 percentage points from the previous year.
The cost rate for 1H2023 during the period was 45.20%, up 10.57 percentage points from the previous year. Among them, the sales/management/finance/R&D expense ratio was 10.71%/11.87%/22.45%/0.17%, respectively, and the year-on-year change was +2.10/ +3.07/+5.60/-0.20 percentage points, respectively. The cost rate for 2Q2023 during the period was 48.54%, up 15.23 percentage points from the previous year. Among them, the sales/management/finance/R&D expense ratio was 11.47%/12.47%/24.45%/0.14%, respectively, and the year-on-year change was +2.51/ +5.26/ +7.65/-0.19 percentage points, respectively.
The average occupancy rate of 1H2023 self-operated shopping malls was 85.7%, and the coverage rate of food and beverage shopping malls increased by 1H2023. The company closed 2 self-operated shopping malls and 1 was transferred to outsourcing; 5 new shopping malls were managed, 7 were closed, and 2 were converted to franchising. As of the end of June 2023, the company had 91 self-operated shopping malls, 281 managed shopping malls, 8 strategic cooperative shopping malls, and 54 franchised home building materials projects. In terms of occupancy rate, the average occupancy rate of 1H2023's self-operated shopping malls was 85.7%, and the average occupancy rate of shopping malls managed by the company was 87.7%. 1H2023 continues to introduce catering categories. As of the end of June 2023, the overall coverage rate of the company's catering shopping malls was 44%, of which the 100mall shopping mall coverage rate was 85%.
Lower profit forecasts, lower A-share ratings, and maintain H-share ratings
The company's performance fell short of our previous expectations, mainly due to relatively weak consumer demand related to the real estate industry chain, and the company's fair value change and loss amount, which had a certain adverse impact on the company's profits. We lowered our EPS forecast for 2023/2024/2025 by 57%/55%/53% to 0.07/0.09/0.10 yuan. The company's performance is under relative pressure and greatly affected by the real estate industry chain. There is still some uncertainty about the future recovery process. The company's A share rating was downgraded to “increase holdings”, and the company's H share “increase” rating was maintained.
Risk warning: The expansion of stores and rent increases did not meet expectations, the effects of digital transformation did not meet expectations, and profit and loss fluctuations from changes in fair value were greater than expected.