Zhongmin Baihui Retail Group (5SR) H2 2024 earnings summary

Executive summary

• FY2024 net profit rose 12.0% to RMB 23.8m and EPS increased to RMB 12.42 cents; stronger outlet earnings offset near break-even Fujian operations.

• Revenue grew 1.7% to RMB 983.7m, while operating cash flow declined to RMB 38.0m from RMB 89.2m.

• Store-network realignment continued: two stores closed in FY2024 and one more in August 2024; a 4,072 sqm Haicang supermarket opened in March 2024.

Financial highlights

• Revenue was RMB 983.7m versus RMB 967.6m in FY2023; gross profit increased 7.3% to RMB 231.8m.

• Profit before tax rose to RMB 23.9m from restated RMB 18.2m; net profit was RMB 23.8m versus restated RMB 21.2m.

• Gross sales proceeds were RMB 1,348.0m, compared with RMB 1,351.9m in FY2023; revenue excludes gross concessionaire sales proceeds.

• Other income fell to RMB 91.3m from RMB 106.8m; finance costs declined to RMB 20.0m from RMB 22.4m.

Outlook and guidance

• Management committed to improving operating performance in the new fiscal year; no financial earnings guidance was stated.

• Citi-Base performance is expected to improve as rental income rises; its 668 apartments reached near-full occupancy and retail occupancy was progressing well.

• FY2025 sustainability targets include carbon intensity ≤220 kgCO₂e/m², electricity intensity ≤270 kWh/m² and water intensity ≤2,200 ml/m².