Sales of Smore International Down 18.7% in H1 2022
On August 24th, Somor International disclosed that in the first half of 2022, the group's sales revenue reached RMB 5.653 billion during the review period, a decrease of 18.7% compared to the same period last year. During this period, the net profit fell to RMB 1.385 billion, and the overall revenue decreased to RMB 1.384 billion. Adjusted net profit for the review period was RMB 1.436 billion, a decrease of 51.7% compared to the same period last year. The main reasons for the group's decline in net profit during the review period were lower sales from enterprise customers, declining gross profit margins, and increased sales, management, and research and development expenses.
Sales revenue for enterprise customers decreased by 21.6% compared to the same period last year, accounting for a percentage drop from 93.4% to 90.1% of total revenue; while sales revenue for retail customers increased by 22.9% compared to the same period last year, accounting for a percentage increase from 6.6% to 9.9% of total revenue.
There has been a short-term decrease in sales in the US market. Products transported through Hong Kong resulted in a 33.0% decrease in sales revenue to enterprise customers in the US market compared to the same period last year. The percentage of total revenue also decreased from 34.6% to 28.6% during the same period.
During the review period, the group experienced a decrease in sales in the Chinese market compared to the high base in the first half of 2021. Excluding export sales to Chinese traders, the group's sales revenue to enterprise customers in China decreased by 40.1% compared to the same period last year. The proportion of this revenue to the total revenue decreased from 40.8% in the same period last year to 30.0% in the review period.
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