occurrences
2023H1 achieved operating income of 42,027 billion yuan, a year-on-year decrease of 13.76%; realized net profit attributable to the parent company of 374 million yuan, which turned a loss into a profit over the same period last year; realized that non-net profit attributable to the parent company was 993.304 million yuan, an increase of 5.56% over the previous year. Net operating cash flow was $2,587 million, down 39.99% from the same period last year.
Supply chain efficiency continues to improve, and the product structure continues to improve; internally actively optimized and adjusted the store layout, compounded by external factors, and increased revenue scale during the reporting period. From an industry perspective, as the company's main source of revenue, the retail industry's 2023H1 revenue revenue in 2023H1 was 39.056 billion yuan, accounting for a revenue share of 92.93%. Revenue fell 13.85% from the same period last year. Revenue from the service sector also showed a decline of 424 million yuan. The decline was slightly lower than that of the retail industry but was similar. On the one hand, it was affected by insufficient consumer confidence and consumption downgrade. On the other hand, the company took the initiative to optimize stores, eliminate long-term loss-making stores, and carefully open new stores. In the first half of the year, 4 new stores were added (including 100 Yonghui, excluding Yonghui Life and Super Species), and closed 29 supermarket stores. The overall number of the company's stores decreased during the reporting period compared to the same period last year. The company's revenue declined year-on-year due to these comprehensive effects.
From a product perspective, fresh and processed food products (including clothing) are the main sources of the company's revenue, accounting for over 90% of revenue. Among them, revenue from the fresh food and processing sector fell by 3,813 billion yuan, a year-on-year decrease of 18.24%; the revenue of the food products sector fell by 2,468 billion yuan, a year-on-year decline of 10.10%, both of which were a drag on scale. In the first half of 2023, private brand sales reached 1.95 billion yuan, accounting for 4.64%, an increase of 15.2% over the previous year, and an online share of 22.5%.
The company takes user needs as the center and strengthens the construction of popular products and the source supply chain. In terms of fresh food, the company launched landmark and differentiated products such as the “99 Red Face” strawberry from Dandong, Liaoning, and the 18mm+ Big Fruit Plateau Blueberry, etc., and continued to develop the “Taste the Freshness of the Source” brand position; at the same time, it accelerated the launch of the “Hui Chef” and “Hui Feast” series of prepared dishes from Hui Ma's Home, bringing convenient cooking life to users. In terms of food and supplies, by strengthening flavor innovation and innovative development of health and antibacterial products, the company has introduced basalt weakly alkaline mineral water, durian milk ketchup, antibacterial chopsticks, and antibacterial textiles.
From a regional perspective, East China contributed 9.165 billion yuan in revenue, accounting for 21.81% of revenue, ranking first among the seven regions. Revenue from all seven regions fell by more than 10% compared to the same period last year. Among them, North China experienced the biggest drop, with a year-on-year decline of 18.24%, a year-on-year decrease of 918 million yuan; West China had the biggest drop in revenue, with a year-on-year decline of 1,693 billion yuan.
In the first half of the year, the company's online business revenue was 7.92 billion yuan, an increase of 4.4% over the previous year, accounting for 18.7% of the main omni-channel revenue; gross product margin was the highest in nearly 3 years, thanks to optimized category structure and improved supply chain efficiency. During the reporting period, “Yonghui Life”'s self-operated door-to-home business covered 946 stores, achieved sales of 4.06 billion yuan, an average daily order volume of 295,000 orders, and an average monthly repurchase rate of 48.9%. During the reporting period, the third-party platform-to-home business covered 922 stores, achieving sales of 3.86 billion yuan, an increase of 10.9% over the previous year, with an average daily order volume of 197,000.
From a quarterly perspective, the first quarter is the traditional peak season for the supermarket industry, and the off-peak season performance during the reporting period is in line with the rules. However, it is important to note that since the third quarter of last year, the company's quarterly revenue growth rate has entered a negative range and the decline has increased quarterly. Under the downward CPI trend, the development of the supermarket industry is clearly under pressure.
From a profit side perspective, 2023H1 achieved net profit attributable to the parent company of 374 million yuan, turning losses into profits. The main reason for the improvement in net profit during the reporting period was: (1) Since the company's comprehensive gross margin increased from 20.35% in the same period last year to 21.99%; (2) the company's digital initiatives are beginning to bear fruit, operating efficiency continues to improve, and costs and efficiency have been reduced by 642 million yuan over the same period of the previous year; (3) Transactional financial assets held by the company during the reporting period generated fair value changes and losses - 210 million yuan Yuan, an increase of 534 million yuan over the same period last year.