How Did The Company Lose Its Fortune?

In recent two years, the performance of Xinhua has been hard to say.

In 2013 and 2014, the net profit after deducting non profits was -1.82 billion yuan and -1273 million yuan respectively.

In April 28th this year, Xinhua announced the first half of this year's performance forecast. It was estimated that the net profit attributable to shareholders of Listed Companies in the first half of this year was 0~2335 million yuan.

However, in July 15th, the company released the 2015 half year performance notice amendment notice, which reduced the net profit attributable to shareholders of listed companies to -1900 million ~-2800 during the reporting period.

In the first half of this year, Xinhua's performance also met expectations of the revised performance forecast.

Xinhua data show that the net profit attributable to shareholders of Listed Companies in the first half and net profit after deduction were -2380.83 yuan and -5983.50 million, respectively, down 151.08% and 235.21% respectively.

In response to the sharp decline in performance in the first half, Xinhua said in response that there are 6 reasons for the decline in operating income, the decline in gross profit margins, the increase in labor costs and rents, the decrease in operating income and serious losses in some stores.

In the first half of the year, there was a huge loss in its performance. However, it was unclear in the semi annual report.

In September 9th, in response to the inquiry letter of the exchange, Xinhua announced the detailed reasons for the huge changes in the company's performance.

The company said that some of its stores suffered serious losses as an important reason.

15 of the 21 equity companies and subsidiaries listed in the semi annual report appeared to be in deficit, accounting for more than 70%.

Also said that the future will be part of the loss of hopeless shop broken.

In September 2, 2015, Xinhua received a letter from the Ministry of management of the Shenzhen stock exchange small and medium-sized board company on the Limited by Share Ltd 2015 semi annual report.

The Shenzhen stock exchange conducted a total of 3 questions, namely, the substantial decline in corporate performance, the reasons for the large discrepancy between cash flow and net profit attribution, and the origin of other recurrent profit and loss items.

In September 9th, Xinhua responded to the inquiry of Shenzhen Stock Exchange.

Reporters noted that most of the subsidiaries of Xinhua capital had a large deficit in the first half of the year.

According to its semi annual report, 21 companies, subsidiaries, Jiangxi Xinhua capital Shopping Plaza Co., Ltd. and Zhangzhou Xinhua Department Store Co., Ltd. and other 15 companies have suffered losses. Their net profit losses in the first half of the year amounted to 114 million yuan, while the Xinhua Xinhua supermarket limited company suffered the highest net loss in, reaching 22 million 600 thousand yuan, including

The net profit loss of many Xinhua companies such as Xinhua Plaza shopping mall and Zhangzhou Xinhua Department Store Co. Ltd. is more than 10 million yuan.

Xinhua said in a reply that in view of the serious losses of some stores, after careful analysis and research, it will break down the shops that fail to make a profit.

In fact, in the semi annual report period, Xinhua has closed 3 stores.

It is worth mentioning that the compensation for breach of contract and compensation for employees also increased the operating costs of Xinhua, which has become one of the reasons for the decline in company performance.

Data show that

And Yonghui supermarket performance in the first half of the year has increased year-on-year, net profit attributable to listed companies were 45 million 247 thousand and 100 yuan, 527 million yuan, an increase of 282.3% and 16.3% compared to the same period; the consolidated gross profit margin was 23.87% and 19.88%, respectively, up 1.54 and 0.45 percentage points respectively.

Xinhua expects net profit loss of 99 million 500 thousand ~8300 1~9 yuan this year.

Reporters yesterday (September 10th) afternoon to call the Xinhua capital secretaries on the plane, Xinhua on both the performance loss and subsidiary supplementary agreement and other issues for consultation.

At the time of the press release, no calls were received.