Jiangsu Horizon Chain Supermarket (2625) H1 2026 earnings summary

Executive summary

• H1 2026 revenue rose 4.7% YoY to RMB807.8m, led by wholesale growth; reported profit increased 64.6% to RMB22.3m, while adjusted net profit fell 14.6% to RMB22.3m.

• Gross profit declined 7.5% to RMB128.4m as gross margin narrowed; no interim dividend was recommended.

Financial highlights

• Revenue was RMB807.8m versus RMB771.3m; cost of sales rose 7.4% to RMB679.4m, and gross profit fell to RMB128.4m from RMB138.9m.

• Profit for the period was RMB22.3m versus RMB13.5m; the increase reflected no repeat of RMB12.6m in prior-year listing expenses and a reversal of receivables impairment.

• Selling and distribution costs fell 6.2% to RMB70.4m; administrative and other operating expenses decreased 38.3% to RMB20.1m, mainly as listing expenses did not recur.

• Operating profit increased to RMB41.2m from RMB32.0m, while net finance costs rose to RMB12.7m from RMB9.2m.

• Net cash used in operating activities was RMB11.8m; cash and cash equivalents declined to RMB128.8m from RMB238.4m at 31 December 2025.

Outlook and guidance

• Priorities include expanding stores, upgrading the existing distribution centre, assessing a new centre subject to land and regulatory arrangements, and upgrading ERP and infrastructure systems.

• Central kitchen implementation is conditional on regularising land-use rights and property titles; relocation is suspended while authorities process regularisation, which is progressing slower than expected.

• Initiatives include omni-channel retail, unmanned smart stores and logistics vehicles, integrated online/offline inventory management, AI retail decision-making and assessment of robotic store solutions.