Financial Performance - Gross revenue for the year ended December 31, 2024, was RMB 846.2 million, a decrease of 13.3% from RMB 976.7 million in 2023[10] - Revenue for the same period was RMB 357.5 million, down from RMB 363.8 million, reflecting a decline of 1.0%[10] - The company reported an EBITDA loss of RMB 53.1 million for 2024, compared to a loss of RMB 34.3 million in 2023[10] - Adjusted EBITDA improved to RMB 20.2 million in 2024 from a loss of RMB 6.6 million in 2023[10] - The loss attributable to equity shareholders increased to RMB 538.1 million in 2024, compared to RMB 453.3 million in 2023[10] - Basic loss per share was RMB 46.8 cents in 2024, compared to RMB 38.9 cents in 2023[10] - The total loss for the year was RMB 540.1 million, compared to RMB 460.1 million in 2023, indicating a worsening financial position[17] - The Group's loss from operations (EBIT) for 2024 was RMB 252.6 million, worsening from a loss of RMB 233.0 million in 2023, with the operating profit margin declining from -23.9% to -29.9%[51] Assets and Liabilities - Net assets of the Group decreased to RMB 511.6 million in 2024 from RMB 948.6 million in 2023, a decline of 46.0%[11] - NAV per ordinary share fell to RMB 0.45 in 2024 from RMB 0.83 in 2023, a decrease of 45.8%[11] - The company experienced a net financial cost of RMB 283.7 million in 2024, up from RMB 231.8 million in 2023[17] - Current liabilities decreased to RMB 1,793,243,000 in 2024 from RMB 2,259,514,000 in 2023, a reduction of 20.6%[23] - The net assets as of December 31, 2024, were RMB 511,579,000, down from RMB 948,576,000 in 2023, a decrease of 46.1%[23] - As of December 31, 2024, the Group's consolidated net asset value was RMB 511.6 million, down from RMB 948.6 million as of December 31, 2023[57] Revenue and Sales Metrics - The sales per ticket increased to RMB 1,382 in 2024 from RMB 1,223 in 2023, reflecting a growth of 13.0%[21] - The annualised area efficiency decreased to RMB 9,723 per m² in 2024 from RMB 11,746 per m² in 2023, a decline of 17.2%[21] - The gross rental income and management service fee income increased to RMB 113.0 million in 2024 from RMB 90.1 million in 2023, representing a growth of approximately 25.4%[50] - The annualized revenue per square meter for the year ended December 31, 2024, was RMB 9,723, down from RMB 11,746 for the year ended December 31, 2023[54] Strategic Initiatives - The Group's strategy focused on creating an ideal community for city life, enhancing customer flow and sales through key project-driven growth and online media promotion[27] - The Group plans to enhance customer experience by integrating multiple formats and introducing immersive entertainment and healthy consumption options in 2025[37] - The Group aims to strengthen cost control and improve internal efficiencies, focusing on human resources and site management for better operational performance[38] - The Group will implement precision marketing strategies targeting quality families and young consumers to enhance customer flow and engagement[39] - The Group plans to optimize its cost structure and improve management efficiency to navigate challenges in the PRC retail market[58] Governance and Leadership - Mr. Yao Jiangang was appointed as executive director and chairman of the board on December 14, 2022, bringing extensive experience in business and management[122] - Ms. Wan Qing was appointed as chief financial officer effective September 3, 2023, and has significant experience in finance and mergers and acquisitions[125] - The company has a diverse board with members holding significant experience in finance, investment, and corporate governance, enhancing its strategic decision-making capabilities[138][140] - The company is focused on expanding its market presence and enhancing its investment strategies through experienced leadership[130][134] - Mr. Choon Hoi Kit Edwin appointed as CEO effective from October 15, 2024, succeeding Mr. Qin Chuan who resigned on July 10, 2024[198] Employee and Operational Metrics - The Group's staff costs for the year ended December 31, 2024, were approximately RMB 65,859,000, a decrease from RMB 84,390,000 in the previous year[117] - The number of the Group's staff decreased to 3,296 as of December 31, 2024, from 3,435 in the previous year[116] - The gender distribution among employees is 15% male (495) and 85% female (2,801)[119] - The Group emphasizes fair employment practices and has implemented a merit-based recruitment process[119] - Comprehensive talent recruitment and performance appraisal policies are in place to reward employees and promote career development[162] Compliance and Risk Management - The Group is committed to full compliance with laws and regulations impacting operations, including product safety and customer rights protection[152] - The Group has implemented security measures to mitigate risks associated with burglary, fire, and cash storage, ensuring the safety of human lives and inventories[159] - The Group emphasizes maintaining good relationships with key stakeholders, including employees, customers, and vendors, as essential for long-term success[161] Shareholder and Financial Policies - The Directors do not recommend the payment of a dividend for the year ended December 31, 2024[173] - As of December 31, 2024, the Company's reserves available for distribution to shareholders amounted to RMB 995,255,000, unchanged from December 31, 2023[182] - The Group's share premium as of December 31, 2024, was approximately RMB 1,019,254,000, also unchanged from December 31, 2023[182]

Financial Performance - Gross revenue decreased to RMB 846.2 million in 2024 from RMB 976.7 million in 2023, representing a decline of approximately 13.3%[2] - Revenue for the year was RMB 357.5 million, slightly down from RMB 363.8 million in the previous year, a decrease of about 1.0%[2] - The company reported a total loss of RMB 540.1 million for the year, compared to a loss of RMB 460.1 million in 2023[8] - Loss attributable to equity shareholders increased to RMB 538.1 million in 2024 compared to RMB 453.3 million in 2023, reflecting a rise of approximately 18.7%[2] - Basic loss per share worsened to 46.8 cents in 2024 from 38.9 cents in 2023[2] - Net loss for the year was RMB 540,074,000, an increase from RMB 460,143,000 in 2023, reflecting a 17.4% increase in losses year-over-year[16] - The loss before taxation for 2024 was RMB 550,997,000, compared to a loss of RMB 463,552,000 in 2023, indicating a worsening of approximately 18.8%[64] Operational Efficiency - EBITDA for the year was reported at a loss of RMB 53.1 million, worsening from a loss of RMB 34.3 million in 2023[2] - Adjusted EBITDA improved to RMB 20.2 million in 2024 from a loss of RMB 6.6 million in 2023, indicating a positive turnaround[2] - The Group's loss from operations (EBIT) for the year ended December 31, 2024, was approximately RMB 252.6 million, compared to a loss of RMB 233.0 million in 2023, resulting in an operating profit margin decline from -23.9% to -29.9%[91] - Annualized area efficiency per square meter decreased to RMB 9,723 in 2024 from RMB 11,746 in 2023, indicating reduced revenue generation efficiency[11] Assets and Liabilities - Net assets of the Group decreased to RMB 511.6 million in 2024 from RMB 948.6 million in 2023, a decline of about 46.1%[4] - NAV per ordinary share fell to RMB 0.45 in 2024 from RMB 0.83 in 2023, a decrease of approximately 45.8%[4] - Total assets less current liabilities amounted to RMB 5,804,293,000, an increase from RMB 5,432,573,000 in 2023[22] - Non-current liabilities increased to RMB 5,292,714,000 in 2024 from RMB 4,483,997,000 in 2023[22] - As of 31 December 2024, the Group had net current liabilities of approximately RMB 1,572,570,000[29] Revenue Breakdown - Revenue from sales of goods decreased to RMB 174,183,000 in 2024 from RMB 191,395,000 in 2023, representing a decline of approximately 9.4%[40] - Net income from concession sales decreased to RMB 70,318,000 in 2024 from RMB 82,344,000 in 2023, a decline of approximately 14.6%[40] - Gross rental income increased to RMB 58,202,000 in 2024 from RMB 45,305,000 in 2023, representing an increase of approximately 28.5%[40] - For the year ended December 31, 2024, the reportable segment revenue from department stores and shopping malls was RMB 212,633,000, while supermarkets generated RMB 144,901,000, totaling RMB 357,534,000[59] Financial Costs - Net financial costs increased to RMB 283.7 million in 2024 from RMB 231.8 million in 2023, an increase of about 22.4%[8] - The total borrowing costs for 2024 were RMB 368,252,000, up from RMB 316,338,000 in 2023, reflecting an increase of about 16.4%[66] Staff and Employment - Staff costs decreased to RMB 65,859,000 in 2024 from RMB 84,390,000 in 2023, a reduction of 21.9%[16] - The number of the Group's staff as of December 31, 2024, was 3,296, down from 3,435 as of December 31, 2023[148] - The Group's workforce included 627 directly employed full-time employees as of December 31, 2024, down from 767 in the previous year[148] Future Plans and Developments - The Company plans to diversify its business and develop its brand agency business to enhance profitability and provide more quality choices to consumers[134] - The Xintiandi Department Store project is set to commence business for the entire floor within the year, alongside the expansion of new supermarkets[140] - The Company will integrate consumer finance and internet financial products while analyzing member consumption behavior data[141] Legal and Compliance - The Company is involved in a litigation case regarding the lease of the Daming Palace Shopping Mall, claiming RMB 70 million in earnest money and related interests[118] - The first hearing of the litigation case was held on April 30, 2024, with no substantial progress reported as of July 26, 2024[120] - The Audit Committee reviewed the annual results for the year ended December 31, 2024, and confirmed compliance with applicable accounting standards and legal requirements[166]

纪 HR 選 i艺 CENTURY GINWA RETAIL HOLDINGS LIMITED 世紀金花商業控股有限公司 (Stock Code 股份代號：162) 2024 INTERIM REPORT 中 告 崩 報 Contents 目 錄 Pages 頁碼 | --- | --- | |-------------------------------------------------|---------------------------| | | | | Corporate Information | 公司資料 2 | | Financial Highlights and Key Performance Index | 財務摘要及關鍵業務指標 4 | | Consolidated Statement of Profit or Loss | 綜合損益表 6 | | Consolidated Statement of Profit or Loss and | 綜合損益及其他全面收益表 | | Other Comprehensive Income | | | Consolidated Statement ...

Financial Performance - Gross revenue for the six months ended June 30, 2024, was RMB 496.8 million, a decrease of 3.0% from RMB 512.3 million in the same period of 2023[2] - Revenue increased to RMB 225.4 million, up 18.4% from RMB 190.4 million year-on-year[2] - EBITDA improved to RMB 24.3 million compared to a loss of RMB 7.1 million in the previous year[2] - Loss attributable to equity shareholders was RMB 238.5 million, compared to RMB 200.1 million in the same period last year, reflecting a 19.2% increase in losses[2] - Basic loss per share increased to 20.8 cents from 17.0 cents year-on-year[2] - Loss for the period was RMB 239.2 million, compared to RMB 204.3 million in the same period last year, indicating a 17.1% increase in losses[10] - The company reported a loss of RMB 239,246,000 for the six months ended June 30, 2024, compared to a loss of RMB 204,292,000 for the same period in 2023, representing an increase in loss of approximately 17.1%[12] - Total comprehensive income for the period was RMB (213,226,000), which is a decline from RMB (169,081,000) in the previous year, indicating a worsening of approximately 26.1%[13] - The Group's loss from operations for the six months ended 30 June 2024 was RMB103.3 million, slightly higher than the loss of RMB102.9 million for the same period in 2023, with the operating profit margin changing from -20.1% to -21.1%[81] - The Group's total loss for the six months ended 30 June 2024 was RMB239.2 million, compared to RMB204.3 million for the same period in 2023, influenced by a decrease in operating loss and an increase in net finance expenses[81] Assets and Liabilities - Net assets of the Group decreased to RMB 735.4 million from RMB 948.6 million as of December 31, 2023[3] - NAV per ordinary share fell to RMB 0.64 from RMB 0.83[3] - Current liabilities increased to RMB 2,381,599,000 from RMB 2,259,514,000, representing an increase of about 5.4%[14] - Cash at bank and on hand decreased to RMB 7,788,000 from RMB 11,534,000, a decline of approximately 32.5%[14] - The net current liabilities stood at RMB (2,066,153,000), worsening from RMB (1,967,172,000) at the end of 2023, reflecting an increase in liabilities of approximately 5%[14] - As of June 30, 2024, the Group's current liabilities exceeded its current assets by approximately RMB2,066,153,000[20] - The Group's consolidated net asset value was RMB735.4 million, down from RMB948.6 million as of 31 December 2023[82] - The current ratio as of 30 June 2024 remained at 0.13, unchanged from 31 December 2023, while the gearing ratio increased to 8.25 from 5.06[82] Revenue Sources - Revenue from sales of goods was RMB 100,681,000, down from RMB 104,709,000, representing a decline of 3.0%[24] - Net income from concession sales increased significantly to RMB 67,001,000, up 53.6% from RMB 43,553,000 in the previous year[24] - Management and administrative service fee income rose to RMB 27,667,000, compared to RMB 22,348,000, marking a growth of 23.5%[24] - Gross rental income for the period was RMB 30,062,000, an increase from RMB 19,768,000, reflecting a growth of 52.0%[24] - Revenue from contracts with customers recognized at a point in time was RMB 167,682,000, up from RMB 148,262,000, indicating an increase of 13.2%[24] - Revenue recognized over time was RMB 57,729,000, compared to RMB 42,116,000, which is a growth of 37.1%[24] Operational Efficiency - Sales per ticket rose to RMB 1,419, an increase of 12.8% from RMB 1,258[6] - Annualised area efficiency decreased to RMB 9,795 per m² from RMB 12,732 per m²[6] - Employee costs decreased to RMB 31,361,000 for the six months ended June 30, 2024, down from RMB 43,273,000 in the same period of 2023, representing a reduction of approximately 27.5%[43] - Other operating expenses totaled RMB 7,134,000 for the six months ended June 30, 2024, a decrease of 63.0% from RMB 19,295,000 in the same period of 2023[43] Financing and Support - The controlling shareholder, Qujiang Financial Holdings, has committed to provide additional loan facilities of approximately RMB26 billion to the Group[20] - Qujiang Financial Holdings extended its loans to the Group by approximately RMB2,168,422,000 for two years and granted additional long-term loans of approximately RMB100,557,349.38 during the six months ended June 30, 2024[20] - The directors believe that the Group will have adequate funds to meet its liabilities for at least twelve months from the end of the reporting period[21] - The financial report is prepared on a going concern basis due to the financial support from Qujiang Financial Holdings[21] Market and Strategic Developments - The company aims to enhance its marketing strategies and introduce life scenario brands to adapt to changing consumer market trends[74] - The themed marketing activities at Century Ginwa New Block have successfully driven consumer engagement and improved performance[70] - The company expects market vitality to further increase in the second half of 2024 as economic recovery continues[68] - The total retail sales of consumer goods in China reached RMB 23.6 trillion in the first half of 2024, reflecting a year-on-year increase of 3.7%[68] Legal and Compliance Matters - Century Ginwa Ding Yao filed a civil complaint claiming the lease agreement for Daming Palace Shopping Mall be ruled as terminated, seeking RMB 70 million in earnest money and relevant interests from the lessor[96] - The litigation case regarding the Daming Palace Shopping Mall had its first hearing on 30 April 2024, with no substantial progress made as of 26 July 2024[96] - The audit committee has reviewed the unaudited interim results for the six months ended 30 June 2024 prior to their approval by the Board[104] - The Company has adopted most of the code provisions as stated in the Corporate Governance Code and has complied with all relevant code provisions during the six months ended 30 June 2024[104]

Financial Performance - Gross revenue for the year ended December 31, 2023, was RMB 976.7 million, an increase from RMB 847.8 million in 2022, representing a growth of approximately 15.2%[11] - Revenue decreased to RMB 363.8 million in 2023 from RMB 376.1 million in 2022, indicating a decline of about 3.1%[11] - The company reported an EBITDA loss of RMB 34.3 million for 2023, compared to a loss of RMB 23.0 million in 2022, reflecting a worsening of approximately 49.6%[11] - Loss attributable to equity shareholders increased to RMB 453.3 million in 2023 from RMB 361.7 million in 2022, marking an increase of around 25.3%[11] - Basic loss per share rose to 38.9 cents in 2023 from 15.5 cents in 2022, indicating a significant increase in losses per share[11] - The Group's total loss for the year ended December 31, 2023, was RMB 460.1 million, up from RMB 378.9 million in 2022[46] Assets and Liabilities - Net assets of the Group decreased to RMB 948.6 million in 2023 from RMB 1,507.0 million in 2022, a decline of approximately 37.0%[11] - NAV per ordinary share fell to 0.83 yuan in 2023 from 1.31 yuan in 2022, representing a decrease of about 36.6%[11] - As of December 31, 2023, total non-current assets amounted to RMB 7,399,745,000, showing a slight increase from RMB 7,353,273,000 in 2022[17] - Current assets increased to RMB 292,342,000 from RMB 199,832,000 in 2022, representing a growth of 46.3%[17] - Current liabilities decreased significantly to RMB 2,259,514,000 from RMB 4,442,302,000 in 2022, a reduction of 49.1%[17] Operational Efficiency - Sales per ticket increased to RMB 1,223 in 2023 from RMB 1,007 in 2022, showing an increase of approximately 21.5%[14] - Annualised area efficiency decreased to RMB 11,746 per m² in 2023 from RMB 12,400 per m² in 2022, reflecting a decline of about 5.3%[14] - The Group's gross rental income and management service fee income increased to RMB 90.1 million in 2023 from RMB 68.6 million in 2022, attributed to new store rentals[44] - The Group's loss from operations (EBIT) for the year ended December 31, 2023, was RMB 233.0 million, compared to a loss of RMB 211.6 million in 2022[45] Market Strategy - The company is focusing on enhancing operational efficiency and exploring new market opportunities to drive future growth[10] - The Company is focusing on the Xi'an and Xianyang markets, enhancing trade and investment attraction, and improving operational capabilities[21] - The Company aims to strengthen market share by integrating its department store and supermarket operations in the Xianyang region[29] - The Company aims to diversify its business and introduce well-known domestic and foreign brands to the northwest market, enhancing consumer choices[71] - The Company will continue to expand its presence in second- and third-tier cities based on successful experiences in trendy department stores and supermarkets[72] Corporate Governance and Management - The Group's management team includes experienced professionals with backgrounds in finance, investment, and retail management[99][100] - The company emphasizes the importance of corporate governance and compliance, as reflected in the roles of its independent directors[110] - The company has a commitment to enhancing its financial reporting and audit processes through its audit committee[110] - The independent non-executive Directors confirmed their independence for the year ended December 31, 2023, in accordance with the Listing Rules[171] Employee and Stakeholder Relations - As of December 31, 2023, the Group's total staff increased to 3,435 from 2,000 in 2022, with 767 directly employed full-time employees[90] - The gender distribution among employees is approximately 17% male (580) and 83% female (2,855)[90] - The Group emphasizes fair employment practices, ensuring merit-based recruitment without gender discrimination[86] - The Group values relationships with key stakeholders, including employees and customers, to ensure long-term success and profit growth[134][138] Risk Management and Compliance - The Group's risk management strategies address credit, interest rate, liquidity, currency, and equity price risks[133] - The Group emphasizes compliance with laws and regulations impacting operations, including product safety and customer rights protection[125][130] - The Group has established an Environmental, Social and Governance (ESG) Committee to promote sustainable development and monitor ESG-related matters[123][129] Future Initiatives - The Company plans to implement five strategic initiatives for 2024, including brand adjustment and active expansion of the Tiandi Department Store project[75][76] - The Company introduced a third-party operation and management high-tech store at the beginning of 2024 to enhance revenue growth[34] Shareholder Information - Hony Capital, the second largest shareholder, holds 28.07% of the Company's ordinary share capital and has contributed US$60 million for business expansion[82] - The directors do not recommend the payment of a dividend for the reporting period[84] - As of December 31, 2023, the Company's reserves available for distribution to shareholders amounted to RMB 995,255,000, unchanged from the previous year[156]

Financial Performance - Gross revenue for the year ended December 31, 2023, was RMB 976.7 million, an increase of 15.2% from RMB 847.8 million in 2022[4] - Revenue decreased to RMB 363.8 million, down 3.1% from RMB 376.1 million in the previous year[4] - Loss attributable to equity shareholders increased to RMB 453.3 million, compared to RMB 361.7 million in 2022, representing a 25.3% increase in losses[4] - Basic loss per share for 2023 was RMB 0.389, compared to RMB 0.155 in 2022, indicating a significant increase in loss per share[16] - The company reported a loss for the year of RMB 460,143,000 in 2023, compared to a loss of RMB 378,941,000 in 2022, representing an increase in loss of approximately 21.5%[19] - Total comprehensive expense for the year was RMB 345,348,000, up from RMB 301,665,000 in the previous year, indicating a year-over-year increase of about 14.5%[19] - The Group reported a loss from operations of RMB 233.0 million, compared to RMB 211.6 million in 2022, indicating a worsening operational performance[14] - Loss before taxation for 2023 was RMB 463,552,000, compared to a loss of RMB 378,994,000 in 2022, indicating a worsening of financial performance[58] Assets and Liabilities - Net assets of the Group decreased to RMB 948.6 million from RMB 1,507.0 million in 2022, reflecting a decline of 37%[6] - Current liabilities decreased significantly from RMB 4,442,302,000 in 2022 to RMB 2,259,514,000 in 2023, a reduction of about 49.1%[21] - The company's net current liabilities improved from RMB 4,242,470,000 in 2022 to RMB 1,967,172,000 in 2023, showing a decrease of approximately 53.7%[21] - Total equity attributable to equity shareholders decreased to RMB 924,366,000 in 2023 from RMB 1,475,838,000 in 2022, a decline of about 37.4%[23] - Cash at bank and on hand increased to RMB 49,725,000 in 2023 from RMB 19,542,000 in 2022, representing a growth of approximately 154.5%[21] - Non-current assets increased to RMB 7,399,745,000 in 2023 from RMB 7,353,273,000 in 2022, reflecting a growth of approximately 0.6%[21] Revenue Breakdown - Revenue from sales of goods decreased to RMB 191,395,000 in 2023 from RMB 230,323,000 in 2022, reflecting a decline of about 16.9%[42] - Net income from concession sales increased to RMB 82,344,000 in 2023 from RMB 77,124,000 in 2022, marking an increase of approximately 6.4%[42] - Management and administrative service fee income rose to RMB 44,782,000 in 2023 from RMB 35,560,000 in 2022, an increase of about 26%[42] - Gross revenue from concession sales increased to RMB 695,224,000 in 2023, up from RMB 548,810,000 in 2022, marking a growth of about 26.7%[46] - Gross rental income rose to RMB 45,305,000 in 2023, compared to RMB 33,063,000 in 2022, reflecting an increase of approximately 37.0%[46] Operational Efficiency - Annualised area efficiency per square meter decreased to RMB 11,746 from RMB 12,400, a decline of 5.3%[9] - The adjusted EBITDA for the reportable segments showed a profit of RMB 4,913,000 in 2023, a significant improvement from a loss of RMB 18,499,000 in 2022[57] - The department stores and shopping mall segment reported a loss of RMB 2,068,000 in adjusted EBITDA for 2023, while the supermarkets segment achieved a profit of RMB 6,981,000[57] Financial Costs - Net finance costs rose to RMB 231,802,000 in 2023 from RMB 204,084,000 in 2022, reflecting an increase of approximately 13.6%[58] - The borrowing costs capitalized for the year ended December 31, 2023, were at a rate of 7.02%, slightly up from 6.98% in 2022[62] Future Plans and Strategies - A new department store is expected to open in 2024, indicating plans for market expansion[49] - The company plans to expand its retail operations by opening new branches, primarily funded through bank borrowings[143] - The company aims to achieve healthy growth in second- and third-tier cities based on successful practices in trendy department stores and supermarkets[153] - The company is focused on new retail concepts, implementing technology, service, and management upgrades to achieve breakthroughs in various operational aspects[154] Shareholder Information - Hony Capital holds 28.07% of the company's ordinary share capital, making it the second-largest shareholder after additional capital contributions for business expansion[160] - The company does not recommend the payment of a dividend for the reporting period[166] Acquisitions and Disposals - The company has disposed of a total of 7,327,400 A-Shares of Ginwa Enterprise (Group) Inc. during the Disposal Mandate period, generating total proceeds of RMB62.2 million at a disposal price of RMB8.5 per A-Share[175] - The company completed the sale of a property in Xi'an for RMB 12,000,000, which has been fully received[188]

Financial Performance - Gross revenue for the six months ended June 30, 2023, was RMB 512.3 million, an increase from RMB 495.3 million in the same period of 2022, representing a growth of approximately 3.9%[11]. - Revenue decreased to RMB 190.4 million from RMB 230.6 million year-on-year, indicating a decline of about 17.4%[11]. - Loss attributable to equity shareholders increased to RMB 200.1 million from RMB 185.8 million, reflecting a rise of approximately 7.0%[11]. - Basic loss per share was reported at 17.0 cents, compared to 8.0 cents in the previous year, indicating a significant increase in losses per share[11]. - Loss for the period was RMB 204,292,000, compared to a loss of RMB 195,556,000 in the previous year, reflecting an increase in loss of 4.4%[20]. - Basic and diluted loss per share increased to RMB 0.17 from RMB 0.08, indicating a worsening financial performance[16]. - Total comprehensive income for the period was RMB (169,081,000), slightly improved from RMB (177,951,000) in the prior year[22]. - For the six months ended June 30, 2023, the company reported a loss of RMB 200,090,000, compared to a loss of RMB 200,090,000 in the same period of 2022[36]. Assets and Liabilities - Net assets of the Group decreased to RMB 1,124.8 million from RMB 1,507.0 million, a decline of about 25.4%[11]. - NAV per ordinary share fell to RMB 0.98 from RMB 1.31, representing a decrease of approximately 25.2%[11]. - Non-current assets totaled RMB 7,360,802,000 as of June 30, 2023, showing a marginal increase from RMB 7,353,273,000 at the end of 2022[26]. - Current liabilities decreased significantly to RMB 2,385,946,000 from RMB 4,442,302,000, indicating improved liquidity management[26]. - Non-current liabilities increased significantly to RMB 4,145,332,000 as of June 30, 2023, compared to RMB 1,603,771,000 at December 31, 2022, representing a growth of approximately 158%[28]. - Total equity attributable to equity shareholders of the Company fell to RMB 1,099,349,000 from RMB 1,475,838,000, a decrease of approximately 25.5%[28]. - Share capital decreased from RMB 199,369,000 to RMB 103,602,000, reflecting a reduction of about 47.9%[28]. - The Group's total financial liabilities measured at amortised cost increased to RMB 858,616,000 as of June 30, 2023, compared to RMB 652,991,000 as of December 31, 2022, marking a growth of around 31.5%[164]. Cash Flow and Financing - Cash at bank and on hand increased to RMB 51,919,000 from RMB 19,542,000, reflecting better cash flow management[26]. - Cash used in operating activities increased to RMB 101,840,000 from RMB 67,319,000 in the previous year[38]. - Net cash generated from investing activities was RMB 32,803,000, compared to a cash outflow of RMB 25,632,000 in the same period of 2022[38]. - Proceeds from new bank loans amounted to RMB 44,900,000, while repayments of bank loans were RMB 164,550,000[42]. - The company reported a net increase in cash and cash equivalents of RMB 22,358,000, compared to a decrease of RMB 3,282,000 in the previous year[42]. - As of June 30, 2023, cash and cash equivalents totaled RMB 33,866,000, up from RMB 26,994,000 at the end of June 2022[42]. - The Group's borrowings are primarily unsecured and unguaranteed, amounting to RMB 2,705,052,000 as of June 30, 2023[168]. Operational Highlights - Sales per ticket increased to RMB 1,258 from RMB 922, indicating a growth of approximately 36.5%[15]. - Annualised area efficiency decreased to RMB 12,732 per m² from RMB 13,827 per m², reflecting a decline of about 7.9%[15]. - The company’s principal activities include the operation of department stores, a shopping mall, and supermarkets in the People's Republic of China[44]. - The Group's revenue is derived from the sales value of goods sold, net income from concession sales, gross rental income, and management and administrative service fee income[63]. - The group operates two department stores and a shopping mall, with one department store expected to re-open in 2025[80]. Cost Management - Staff costs decreased to RMB 43,273,000 from RMB 51,329,000, a reduction of 15.7%, contributing to cost control efforts[16]. - Depreciation expenses rose to RMB 95,740,000 from RMB 78,015,000, an increase of 22.7%, indicating potential investments in fixed assets[16]. - Total borrowing costs increased to RMB 152,774,000 for the first half of 2023, compared to RMB 143,450,000 in the same period of 2022[94]. Taxation and Compliance - The provision for PRC Corporate Income Tax for the six months ended June 30, 2023, was RMB 205,000, significantly lower than RMB 1,924,000 for the same period in 2022, reflecting a decrease of approximately 89.3%[100]. - The company did not make any provision for Hong Kong Profits Tax for the six months ended June 30, 2023, as there were no assessable profits, similar to the previous year[102]. - The interim financial report is unaudited but has been reviewed by an independent auditor[52]. Future Outlook - The Group's financial performance in department store and supermarket operations did not meet management's expectations due to slowing economic growth and intense competition[134]. - The company has not indicated any new product launches or market expansion strategies during this reporting period[108]. - The company expects an annual sales growth rate beyond the five-year period to stabilize at 2%[139].

Hong Kong Exchanges and Clearing Limited and The Stock 香港交易及結算所有限公司及香港聯合交 Exchange of Hong Kong Limited take no responsibility for 易所有限公司對本公告的內容概不負責， the contents of this announcement, make no representation 對其準確性或完整性亦不發表任何聲明， as to its accuracy or completeness and expressly disclaim any 並明確表示，概不對因本公告全部或任何 liability whatsoever for any loss howsoever arising from or in 部分內容而產生或因倚賴該等內容而引致 reliance upon the whole or any part of the contents of this 的任何損失承擔任何責任。 announcement. CENTURY GINWA RETAIL HOLDINGS LIMIT ...

Financial Performance - Gross revenue for the year ended December 31, 2022, was RMB 847.8 million, a decrease of 35.5% from RMB 1,316.4 million in 2021[12]. - Revenue from continuing operations was RMB 376.1 million, down 24% from RMB 494.3 million in the previous year[20]. - The company reported a loss attributable to equity shareholders of RMB 361.7 million, slightly improved from a loss of RMB 368.0 million in 2021[12]. - Basic loss per share for 2022 was 15.5 cents, compared to 15.8 cents in 2021[12]. - Net assets of the Group decreased to RMB 1,507.0 million from RMB 1,808.3 million in 2021, reflecting a decline of 16.6%[12]. - NAV per ordinary share fell to RMB 1.31 from RMB 1.57 in the previous year, a decrease of 16.5%[12]. - The gross rental income and management service fee income for the year ended December 31, 2022, was RMB 68.6 million, down from RMB 110.0 million in 2021, reflecting a decline of 37.5%[47]. - The Group's loss from operations (EBIT) for the year ended December 31, 2022, was RMB 211.6 million, compared to a loss of RMB 189.1 million in 2021, with the operating profit margin worsening from -14.4% to -25.0%[47]. - The Group's consolidated net asset value as of December 31, 2022, was RMB 1,507.0 million, down from RMB 1,808.3 million in 2021, indicating a decrease of 16.6%[50]. - The current ratio of the Group as of December 31, 2022, was 0.04, slightly down from 0.05 in the previous year[50]. - The gearing ratio as of December 31, 2022, was 2.81, an increase from 2.13 in 2021, indicating higher financial leverage[50]. - The Group reported a loss for the year ended December 31, 2022, with no dividends recommended for distribution[154]. Operational Efficiency and Strategy - The company continues to focus on improving operational efficiency and exploring new market opportunities to enhance revenue streams[11]. - Future strategies include potential market expansion and the development of new products and technologies to drive growth[11]. - The supermarket business will focus on enhancing operational efficiency and expanding toB business within three kilometers of stores to increase sales volume[34]. - Digital management tools will be further utilized to improve operational efficiency and enhance consumer profiling and digital services[39]. - The Company will optimize its cost structure and improve management efficiency to create value for customers and maximize shareholder returns[77]. - The Company plans to integrate consumer finance and develop mobile shopping guide applications based on member consumption behavior data[85]. - The Group is committed to continuous monitoring and improvement of its operations and compliance with local regulations across its department stores[147]. Market Expansion and Projects - The company expects the Daming Palace project to significantly enhance its market share in Xi'an after its opening in early 2024, following the acquisition of a 20-year operating lease[27]. - The Xi'an Saigo project reached trial operation status in January 2023, introducing several first-opening brands to the region, which is anticipated to improve asset value and market influence[26]. - The Company plans to conduct market research in Xianyang city to identify new commercial investment opportunities and increase market share[33]. - Specific strategies include active expansion in Xi'an and second- and third-tier cities, optimizing revenue, and enhancing capital liquidity[84]. Human Resources and Corporate Governance - As of December 31, 2022, the Group's total staff was approximately 2,000, a decrease from 2,500 as of December 31, 2021, with approximately 1,000 directly employed full-time employees[90]. - The gender distribution among employees was approximately 17.5% male (around 350) and 82.5% female (around 1,650)[90]. - Employee remuneration, promotions, and salary increments are assessed based on the Group's performance and individual experience, with discretionary bonuses granted based on performance[90]. - The Group emphasizes fair employment practices, ensuring merit-based recruitment without gender discrimination[91]. - The Group's management team includes experienced professionals with backgrounds in finance, investment, and retail management, enhancing strategic decision-making capabilities[97][98][101]. - The Group's focus on high-caliber staff is regarded as a key factor for corporate success, highlighting the importance of human resources in achieving business objectives[90]. Shareholder and Financial Information - Hony Capital holds 28.07% of the Company's ordinary share capital, making it the second-largest shareholder, following a capital contribution of approximately HK$470 million for business expansion[78]. - The Group does not recommend the payment of a dividend for the reporting period, consistent with the previous year where no dividend was paid[89]. - As of December 31, 2022, the Company's reserves available for distribution amounted to RMB 995,255,000, unchanged from the previous year[160]. - The share premium of the Company was approximately RMB 1,136,595,000 as of December 31, 2022, also unchanged from the previous year[164]. - Major shareholders owning 5% or more of the company's issued ordinary shares were disclosed as per the Securities and Futures Ordinance[200]. Compliance and Risk Management - The Group has ensured full compliance with relevant laws and regulations impacting operations, including product safety and customer rights[128]. - The Group operates department stores and supermarkets in the PRC, facing risks such as burglary and fire, and has implemented security measures to mitigate these risks[136]. - The Group has established a vendor evaluation system based on price, quality, and service to ensure sustainable supply of goods and services[146]. - The company has established appropriate insurance arrangements for potential legal claims against its directors and senior management, which remain effective as of the report date[182]. - The independent non-executive directors confirmed their independence as of December 31, 2022, in accordance with the Listing Rules[182]. Environmental, Social, and Governance (ESG) - The Group has established an Environmental, Social and Governance (ESG) Committee to promote sustainable development and monitor ESG-related matters[126]. - An energy conservation project team has been set up to implement measures aimed at reducing electricity consumption and pollutant discharge[127].

Hong Kong Exchanges and Clearing Limited and The Stock 香港交易及結算所有限公司及香港聯合交 Exchange of Hong Kong Limited take no responsibility for 易所有限公司對本公告的內容概不負責， the contents of this announcement, make no representation 對其準確性或完整性亦不發表任何聲明， as to its accuracy or completeness and expressly disclaim any 並明確表示，概不對因本公告全部或任何 liability whatsoever for any loss howsoever arising from or in 部分內容而產生或因倚賴該等內容而引致 reliance upon the whole or any part of the contents of this 的任何損失承擔任何責任。 announcement. CENTURY GINWA RETAIL HOLDINGS LIMIT ...