Jiangsu Horizon Chain Supermarket (2625) H2 2025 earnings summary

Executive summary

• Revenue rose 14.3% YoY to RMB1,544.0m, while profit for the year fell 13.0% to RMB38.2m; lower margins and higher listing and receivables impairment expenses weighed on earnings.

• Adjusted net profit, adding back listing expenses, was RMB50.8m versus RMB51.3m; adjusted net profit margin was 3.3% versus 3.8%.

• Basic and diluted EPS was RMB0.18 versus RMB0.27; no final dividend was recommended.

Financial highlights

• Gross profit was RMB289.3m, broadly unchanged YoY; gross margin was 18.7%, down 2.7 percentage points.

• Cost of sales increased 18.2% YoY to RMB1,254.7m, outpacing revenue growth.

• Profit from operations was RMB78.6m versus RMB84.5m; profit before tax was RMB54.1m versus RMB62.3m.

• Selling and distribution costs declined 8.5% to RMB146.8m, while administrative and other operating expenses rose 9.1% to RMB59.4m.

• Net finance costs increased to RMB23.3m from RMB22.1m; income tax expense declined to RMB15.9m from RMB18.4m.

Outlook and guidance

• Planned priorities include more retail stores, a new distribution centre, a new central kitchen, and ERP and infrastructure upgrades to improve operating efficiency.

• New retail initiatives include online-offline integration, unmanned smart stores and logistics vehicles, warehouse-store integration, and R&D on equipment such as unmanned coffee robots.

• Remaining Global Offering proceeds are allocated to store upgrades, distribution-centre and central-kitchen projects, and systems; full utilisation is targeted by 31 March 2027 for applicable projects.