Jiangsu Horizon Chain Supermarket (2625) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 16.2% YoY to RMB771.3m, while gross profit fell 6.7% to RMB138.9m and reported profit declined 26.6% to RMB13.5m.

• Adjusted net profit, excluding listing expenses, increased to RMB26.1m from RMB25.5m; adjusted margin was 3.4% versus 3.8%.

Financial highlights

• Revenue increased 16.2% to RMB771.3m, while cost of sales rose 22.9% to RMB632.4m.

• Gross margin declined 4.4 percentage points to 18.0%.

• Operating profit was RMB32.0m versus RMB38.1m; profit before tax was RMB22.8m versus RMB26.7m; basic and diluted EPS was RMB0.07 versus RMB0.11.

• Net finance costs declined to RMB9.2m from RMB11.4m, while income tax expense increased to RMB9.3m from RMB8.3m.

• Net cash used in operating activities increased to RMB141.8m from RMB45.4m.

Outlook and guidance

• Plans include adding retail stores, establishing a distribution centre and central kitchen, and upgrading ERP and infrastructure systems; implementation using offering proceeds is targeted by 31 March 2026.

• Initiatives included expanding online/offline retail, preparing unmanned smart stores, testing unmanned logistics vehicles, integrating inventory management, and developing unmanned coffee robots.