Financial Performance - Revenue increased by 7.0% to approximately RMB 378.9 million for the year ended December 31, 2024[3] - The company reported a loss attributable to owners of approximately RMB 55.7 million for the year[5] - Basic loss per share was approximately RMB 5.37[6] - The company has incurred a total comprehensive loss of approximately RMB 55.73 million for the year[9] - The group reported a loss before tax of RMB 55,238,000 for the year, with a significant loss in the retail segment of RMB 49,155,000[23] - The company reported a pre-tax loss of RMB 55,727,000 for the year ended December 31, 2024, compared to a loss of RMB 152,578,000 in 2023, indicating an improvement in performance[39] - The company reported a net loss of approximately RMB 55.7 million, which is a year-on-year reduction of about 63.5%[59] - The loss attributable to shareholders for the year ended December 31, 2024, was approximately RMB 55.7 million, a reduction from a loss of approximately RMB 152.6 million in the same period of 2023[81] Revenue and Sales - The group reported a revenue of RMB 378,901,000 for the year ending December 31, 2024, compared to RMB 353,966,000 in 2023, reflecting an increase of approximately 7%[21] - Sales of goods amounted to RMB 175,592,000 in 2024, up from RMB 168,206,000 in 2023, representing a growth of about 4%[21] - Merchandise sales increased by approximately RMB 7.4 million, while commission income from counter sales decreased by approximately RMB 4.2 million[59] - Commission income from specialty sales decreased by 29.0% to approximately RMB 10.3 million, accounting for 2.7% of total revenue, down from 4.1% in the same period of 2023[69] - Rental income from sub-leased mall properties increased by 21.4% to approximately RMB 139.5 million, representing 36.9% of total revenue, compared to 32.5% in the same period of 2023[71] Assets and Liabilities - Total assets less current liabilities amounted to approximately RMB 550.96 million as of December 31, 2024[10] - Current liabilities net worth was approximately RMB 176.24 million as of December 31, 2024[14] - Non-current liabilities totaled approximately RMB 619.85 million as of December 31, 2024[11] - For the fiscal year ending December 31, 2024, total assets amounted to RMB 809,748,000, while total liabilities were RMB 878,643,000[24] - The total reported assets for the fiscal year ending December 31, 2023, were RMB 897,375,000, with total liabilities of RMB 910,543,000[28] - The group's net current liabilities are approximately RMB 176.2 million as of December 31, 2024, up from RMB 138.9 million as of December 31, 2023[92] Cash Flow and Liquidity - Cash and cash equivalents were approximately RMB 25.09 million as of December 31, 2024[14] - The group has a liquidity policy to maintain sufficient cash and bank balances, ensuring it can meet its financial obligations as they fall due[86] - As of December 31, 2024, the group's bank and cash balance is approximately RMB 25.1 million, a decrease from RMB 40.0 million as of December 31, 2023[91] Operational Strategies - The group has identified two operating segments: retail management and financial services, to allocate resources effectively[22] - The group is actively planning to expand its store network and shopping centers in the coming year[59] - The group aims to enhance consumer loyalty by developing paid membership programs and offering member benefits through quality, pricing, and marketing strategies[63] - The group aims to optimize its business model by focusing on consumer-centered marketing and experiential retail strategies[66] - The company is committed to exploring new business models, including shopping centers and integrated retail, to establish a competitive advantage[66] Market Trends and Challenges - The global retail e-commerce market is projected to exceed $5 trillion in 2024, with e-commerce platforms continuing to hold a significant share of the retail market[50] - Increased competition in the retail sector, especially from technology and logistics companies entering the market, is putting pressure on traditional retailers[51] - The retail industry is experiencing intensified price wars and promotional activities, which are compressing profit margins for retailers[51] - Consumer loyalty is declining, necessitating a more precise understanding of consumer psychology and needs by retailers[51] Employee and Governance - As of December 31, 2024, the group had 582 full-time employees, down from 647 employees as of December 31, 2023[87] - The company is committed to high standards of corporate governance to protect the interests of shareholders, customers, and employees[97] - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[110] Future Outlook - The board expresses confidence in the group's business prospects, aiming to become a leading comprehensive enterprise in China's retail industry[67] - The company is focusing on digital transformation as a core strategy, particularly in the post-pandemic era, with a shift towards an "online and offline integration" retail model[50]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 207,763,000, a significant increase from RMB 159,166,000 in the same period of 2023, representing a growth of approximately 30.5%[2] - The cost of goods sold for the same period was RMB 83,256,000, compared to RMB 68,447,000 in 2023, resulting in a gross profit of RMB 124,507,000, up from RMB 90,719,000, indicating a gross margin improvement[2] - The company reported a loss before tax of RMB 24,969,000 for the six months ended June 30, 2024, an improvement from a loss of RMB 33,047,000 in the prior year, reflecting a reduction in losses by approximately 24.5%[2] - Basic and diluted loss per share for the period was RMB 2.45, compared to RMB 3.27 in the same period last year, showing a decrease in loss per share by about 25.1%[2] - The operating loss was approximately RMB 24.9 million, a year-on-year decrease of about 24.5%[31] - The company's income tax expense for the six months ended June 30, 2024, was RMB 498,000, a decrease of 45.5% compared to RMB 915,000 for the same period in 2023[18] - Loss attributable to equity shareholders was approximately RMB 25.4 million for the six months ended June 30, 2024, compared to a loss of approximately RMB 33.9 million in the same period of 2023, indicating an improvement[51] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 852,010,000, a decrease from RMB 897,375,000 as of December 31, 2023, indicating a reduction of approximately 5%[3] - Non-current liabilities decreased to RMB 628,156,000 from RMB 665,681,000, reflecting a reduction of about 5.6%[4] - The company’s cash and cash equivalents as of June 30, 2024, were RMB 37,338,000, down from RMB 40,002,000 at the end of 2023, a decline of approximately 6.7%[3] - The company’s total liabilities increased to RMB 910,543 thousand as of December 31, 2023, compared to RMB 891,645 thousand as of June 30, 2024, indicating a rising debt level[11] Operational Insights - The company plans to continue expanding its retail operations and enhancing its financial services offerings in the upcoming periods[5] - The retail sector continues to face significant pressure, with at least 131 supermarkets closing in the first half of 2024, which is nearly six times the closures reported in the same period of 2023[23] - The company faces ongoing challenges in the retail sector, with traditional businesses likely to continue closing due to intensified competition and cost pressures[23] - The group is focusing on inventory and order management optimization to reduce capital occupation issues[32] - The group aims to strengthen product innovation and supply chain management to improve efficiency and reduce costs[30] Market Trends - In 2024, major live-streaming hosts have seen a significant decline in sales during the 618 shopping festival compared to the same period in 2023, indicating a shift in consumer behavior towards quality and after-sales service rather than just price discounts[24] - The retail sector is increasingly adopting live-streaming as a fundamental tool, with more companies upgrading their live-streaming teams and entering direct sales platforms to build their own intellectual property[24] - E-commerce platforms like JD and Taobao are integrating their services to enhance delivery efficiency, with JD consolidating its instant retail brands into JD Seconds[26] - The cancellation of pre-sale systems by major e-commerce platforms has increased inventory pressure on merchants, prompting them to optimize shopping processes and improve logistics to enhance consumer experience[27] Corporate Governance - The company has adopted the corporate governance code under the Hong Kong Stock Exchange and has complied with its provisions during the reporting period[62] - The board has established a remuneration committee to review and determine appropriate remuneration policies for directors and senior management[64] - A nomination committee has been formed to set standards for selecting candidates for the board and to review nominations[65] - The audit committee, consisting of independent non-executive directors, is responsible for reviewing the company's financial condition and internal control systems[66] Future Plans - The group plans to enhance shopping center attractiveness and upgrade market operations to increase revenue[31] - The group is preparing for future expansion of its store network and shopping centers[31] - The group plans to open a new store in Longgang, with a lease agreement signed for a property of approximately 4,100 square meters for a 15-year term[34] - The group is developing a membership program to enhance customer loyalty and increase sales through both offline and online channels[34]

Financial Performance - For the year ended December 31, 2023, the Group recorded revenue of approximately RMB 354.0 million, representing a year-over-year increase of approximately 5.6%[25] - Gross profit from sales of goods was approximately RMB 29.0 million, reflecting a year-over-year increase of approximately 96.6%[25] - Loss attributable to owners of the Company was approximately RMB 152.6 million, which is a year-over-year increase of approximately 46.9%[25] - The total retail sales of consumer goods in China reached approximately RMB 47.1 trillion, with a year-over-year increase of approximately 7.2%[89] - National online retail sales were approximately RMB 15.4 trillion, reflecting a year-over-year increase of approximately 11.0%[89] - The online retail sales of physical goods were approximately RMB 13.0 trillion, increasing by approximately 8.4% and accounting for approximately 27.6% of total retail sales[89] - The catering revenue increased by approximately 20.4%, reaching approximately RMB 5.3 trillion[89] - The Group's total revenue for the year ended December 31, 2023, was approximately RMB 354 million, an increase of about 5.6% year-on-year[97] - Gross profit amounted to approximately RMB 29 million, reflecting a significant year-on-year increase of about 95.6%[97] - The loss attributable to the owners of the company was approximately RMB 152.6 million, representing a year-on-year increase of about 46.9%[97] Market Trends and Challenges - The decline in revenue was primarily due to a general decrease in consumer spending during the pandemic, while rental income from investment properties increased[25] - The retail industry is expected to face a slowdown in economic growth in China, leading to more business mergers in 2024[27] - Traditional retail stores are anticipated to increasingly integrate with online stores to enhance customer experience[27] - The retail industry in 2024 is expected to face pressures from slowing growth, high operating costs, and narrowing profits, leading to increased market consolidation and higher concentration levels[31] - In 2023, China's retail industry faced significant changes, with hypermarkets struggling and traditional e-commerce adopting low-price strategies due to consumption downgrade[67] - Membership store development has slowed, with only 50 cities in China capable of supporting member supermarkets, indicating market limitations as a major challenge[70] - The changing family structure and consumption habits in China are driving membership stores to become more sophisticated, impacting their operational strategies[69] Strategic Initiatives - The Group implemented operational reforms, reorganized the internal structure of flagship stores, and streamlined business processes to reduce costs[26] - The company aims to enhance its competitive strength and brand image while expanding steadily, focusing on regions like Guangdong and Guangxi through various models including acquisitions and joint ventures[33][35] - The company will leverage resource integration to improve marketing competitiveness and strengthen its competitive advantages in the retail sector[31] - The Group's strategy includes seeking and developing potential profit opportunities in other investment projects while planning for future store network and shopping center expansions[97] - The Group aims to consolidate existing stores through reform and innovation, improving sales mix and enhancing the shopping experience[114] - The Group is exploring new commercial retail modes, including shopping malls and internet plus, to provide a one-stop shopping experience[115] Operational Insights - The Group opened the Shajing Shopping Mall on July 28, 2023, with a sales floor area of approximately 54,000 square meters, aimed at expanding its new retail market share[100] - The Shajing area has a general population of approximately 548,000 and achieved a total industrial output value of approximately RMB 140 billion in 2022[100] - The Group adjusted the layout and area of elite supermarkets to enhance production efficiency and customer comfort, focusing on seasonal and thematic displays[104] - A total of 20 projects were concluded for the upgrade service of the benchmark store in Shiyan, enhancing customer satisfaction through various value-added services[105] - The Group implemented a service reward and punishment system to improve service quality and customer satisfaction[107] Management and Governance - The company has a strong management team with extensive experience in financial reporting, corporate finance, and retail industry management, with members serving over 20 years in the group[53][54][55] - The company has a commitment to internal control and Environmental, Social, and Governance (ESG) matters, with a dedicated team providing valuable advice[57] - The Group has complied with corporate governance principles to enhance transparency and protect shareholder interests[200] Consumer Behavior and E-commerce - Consumers are increasingly favoring high-quality, low-priced products, prompting supermarkets to launch low-price discounted offerings[72] - E-commerce platforms, including JD.com, initiated a price war with claims of the lowest prices and ultra-low discounts[82] - Emerging models like short video e-commerce and membership-based e-commerce are significantly impacting traditional e-commerce[83] - Douyin Supermarket launched "hourly delivery" alongside next-day delivery, aiming to enhance e-commerce growth through real-time retail capabilities[84] Financial Position and Risks - The Group's cash and cash equivalents as of December 31, 2023, were approximately RMB 40.0 million, down from approximately RMB 66.2 million as of December 31, 2022, indicating a decrease of about 39.5%[150] - The total borrowings of the Group included bank loans of approximately RMB 151.5 million as of December 31, 2023, compared to RMB 157.2 million as of December 31, 2022, showing a reduction of about 3.9%[150] - The Group's net current liabilities increased to approximately RMB 138.9 million as of December 31, 2023, from approximately RMB 71.6 million as of December 31, 2022, representing an increase of about 93.9%[151] - The Group's liquidity risk management policy aims to maintain sufficient cash and bank balances to meet operational funding needs[177] - The Group's credit risk is primarily associated with receivables from lending activities, with policies in place to mitigate this risk[176]

Financial Performance - Revenue increased by 5.6% to approximately RMB 354.0 million[1] - Gross profit from merchandise sales rose by 96.6% to approximately RMB 29.0 million[2] - Loss attributable to owners of the company for the year was approximately RMB 152.6 million[3] - Basic loss per share was approximately RMB 14.71[4] - Total comprehensive loss for the year attributable to owners of the company was RMB 152.6 million, compared to RMB 103.9 million in the previous year[7] - The company reported a total loss before tax of RMB 156,332,000 for the year ended December 31, 2023[32] - The company reported a loss attributable to owners of the company of RMB 1,505,000 for the year ended December 31, 2023, which is a decrease in total comprehensive loss by the same amount compared to the previous year[25] - The company reported a net rental income loss of RMB 146,112 thousand in 2023, compared to a loss of RMB 108,691 thousand in 2022, indicating a worsening of 34.4%[48] - The group reported a loss attributable to equity shareholders of approximately RMB 152.6 million for the year ended December 31, 2023, compared to a loss of approximately RMB 103.9 million for the same period in 2022, indicating an increase in losses[117] Dividends and Shareholder Returns - No final dividend is recommended for distribution[5] - The company has not declared or paid any dividends for the fiscal year ending December 31, 2023, consistent with 2022[54] - The board of directors does not recommend the payment of a final dividend for the year ended December 31, 2023[118] Assets and Liabilities - Non-current assets decreased from RMB 960.8 million to RMB 791.4 million[9] - Current liabilities net worth was approximately RMB 138.9 million[10] - Cash and cash equivalents amounted to approximately RMB 40.0 million[14] - The company’s total liabilities were reported at RMB 910,543,000 as of December 31, 2023[35] - The company's accounts payable decreased to RMB 46,570,000 in 2023 from RMB 54,029,000 in 2022, reflecting a reduction of approximately 13.7%[64] - The net current liabilities of the group increased to approximately RMB 138,900,000 as of December 31, 2023, from RMB 71,600,000 as of December 31, 2022[133] Cash Flow and Financial Support - The company has secured an interest-free and unsecured loan of RMB 50 million from a related company, with the funding period from March 15, 2024, to December 31, 2025[15] - As of December 31, 2023, the company has not yet drawn down the loan funding[15] - The board believes that the company will have sufficient financial resources to meet its operational funding needs and fulfill its financial obligations[17] - The company's ability to continue as a going concern depends on its ability to generate sufficient cash flow and secure ongoing financial support from the related company[17] - The company has received financial support from the related company, including additional funding and deferred lease payments when needed[20] Operational Performance - The company reported a significant increase in impairment losses on receivables, rising to RMB 36.4 million from RMB 0.9 million[7] - The company incurred a total financing cost of RMB 46,859 thousand in 2023, up from RMB 39,438 thousand in 2022, reflecting an increase of 18.5%[46] - The cost of goods sold for the year was RMB 139,169 thousand, down from RMB 168,004 thousand in 2022, indicating a decrease of 17.2%[48] - Employee costs increased by 4.2% to RMB 72.2 million, mainly due to new hires for the Sha Jing Shopping Center opened in July 2023[109] Market Trends and Industry Insights - The retail industry in China has undergone significant changes, with a notable increase in snack discount stores expected to reach 30,000 by 2025, indicating a shift in consumer purchasing patterns[69] - Major retailers like Hema and Yonghui Supermarket have adopted a "discount transformation" strategy, with Hema expanding its discount product range and reducing prices by 20%[74] - The community group buying market has seen significant changes, with major players like Xingsheng Youxuan reducing their operational scope to only three provinces[75] - The retail market is experiencing a shift towards membership-based models, with consumers increasingly accepting this format and showing loyalty to high-quality products[77] Expansion and Development - In 2023, the company accelerated its expansion in the Chinese market by opening 4 new stores, with Sam's Club also opening 4 new stores[77] - The company plans to expand its store network and shopping centers in the coming year[89] - The group has upgraded the layout and area of supermarkets to enhance production efficiency and customer comfort, focusing on seasonal and thematic displays[93] Governance and Compliance - The company is committed to high standards of corporate governance to protect the interests of shareholders, customers, and employees[137] - The Audit Committee reviewed the financial performance for the year ending December 31, 2023, prior to submission for board approval[149] - The company has established a Compensation Committee to provide recommendations on the compensation policies for directors and senior management[146] - The board consists of both executive and independent non-executive directors, ensuring a balanced governance structure[154]

Economic Recovery - In the first half of 2023, the global economy showed initial signs of recovery, but inflation and financial instability remain significant challenges [10]. - China's economy demonstrated steady recovery with increasing market demand and production, although some economic indicators showed a decline in growth rates since Q2 [10]. - Developed economies achieved good economic growth, while the recovery in developing countries was relatively slow, highlighting disparities in global economic recovery [14]. - The sustainability of the economic recovery is influenced by the global pandemic situation and the emergence of new variants [11]. - The overall economic recovery is still fragile, with the foundation for sustained growth not solidified amid complex external conditions [34]. Inflation and Monetary Policy - Inflation rates remain high in several countries, putting pressure on consumers and businesses, necessitating a balance between monetary and fiscal policies [14]. - Central banks globally adopted loose monetary policies to stimulate recovery, but some have begun tightening policies in response to rising inflation [18]. - Many countries implemented large-scale fiscal stimulus measures to support demand and investment, but are now gradually tightening fiscal policies to mitigate risks [18]. China's Economic Performance - In the first half of 2023, China's GDP grew by approximately 4.5% year-over-year, indicating a solid economic recovery despite global uncertainties [22][24]. - Domestic demand has become a key driver for China's economic recovery, with increased consumer demand for goods such as automobiles and home appliances, particularly in major cities and higher income groups [26][27]. - The manufacturing sector, especially in high-end equipment, new materials, and new energy vehicles, has shown significant growth, contributing to the overall economic recovery [26][27]. - China's exports stabilized and grew in the first half of 2023, particularly in electronic products, textiles, and pharmaceuticals, supported by rising global trade demand [29][31]. - The Chinese government implemented proactive fiscal policies, increasing investment in infrastructure and public spending, which drove the development of related industries [29][31]. - The government's support for technological innovation has increased, fostering an environment conducive to innovation and entrepreneurship, which is vital for economic recovery [26][27]. Retail Market Trends - In the first half of the year, total retail sales of social consumer goods in China reached RMB 22.8 trillion, a year-over-year (YOY) increase of 8.2% [35]. - National per capita consumption expenditure increased by 8.4% YOY, which is 5.9 percentage points higher than the same period last year [35]. - The sales volume of China's top 100 supermarket companies exceeded RMB 900 billion, indicating challenges in achieving market growth [38]. - The YOY growth rate of retail sales in supermarkets was 1.4% in the first quarter of 2023, reflecting a recovery in consumption [38]. - The department store retail industry is facing pressure due to a slowdown in macroeconomic growth and changing consumer preferences, leading to a decline in customer flow [45]. - The rapid development of e-commerce and logistics has significantly impacted traditional department stores, exacerbating the trend of consumption deceleration [45]. Investment and Expansion - The Group's total revenue was approximately RMB159.2 million, a decrease of approximately 5.6% compared to RMB168.7 million in the first half of 2022 [76]. - The Group plans to enhance sales turnover and avoid unnecessary costs through operational management measures [78]. - The Group is exploring new commercial retail modes, including shopping malls and internet-based consumption, to provide a one-stop shopping experience [79]. - The Group aims to consolidate existing stores through reform and innovation to improve the sales mix and enhance the shopping experience [78]. - The Group will continue to seek merger and acquisition opportunities to enhance its competitive advantage and explore new business opportunities [86]. Financial Performance - The total loss attributable to shareholders was approximately RMB34.0 million, compared to a loss of approximately RMB26.4 million for the same period in 2022, representing an increase of approximately 28.9% [76]. - The Group's gross profit was approximately RMB12.2 million, showing a year-over-year increase of approximately 111.1% [92]. - The operating loss for the period was approximately RMB33.0 million, an increase of approximately 31.9% year-over-year [92]. - The decrease in revenue was attributed to a general decline in consumer sentiment due to factory closures and rising unemployment rates [92]. - The Group's liquidity is dependent upon cash received from customers, and the directors are confident that the Group will meet its financial obligations in the foreseeable future [128]. Customer Engagement and Service Quality - The Group actively organized marketing activities, including live broadcast sales, to enhance customer engagement and maintain a stable customer base [110]. - A service reward and punishment system has been formulated to improve service quality and customer satisfaction [106][108]. - The Group has implemented a customer relationship management system and conducted customer satisfaction surveys to improve service quality [110]. Challenges and Risks - The uncertainty in global economic direction remains high due to factors like international trade disputes and geopolitical conflicts [15]. - Global trade protectionism risks remain, impacting international trade and necessitating stronger coordination among governments to promote trade liberalization [21][23]. - The street stall economy has gained popularity, supported by government initiatives, but faces challenges such as health and safety issues and insufficient infrastructure [42].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈 全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 佳 華 百 貨 控 股 有 限 公 司 Jiahua Stores Holdings Limited （於開曼群島註冊成立的有限公司） （股份代號：00602） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 中 期 業 績 財務業績 佳華百貨控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司 及其附屬公司（合稱「本集團」）截至二零二三年六月三十日止六個月之未經審 核簡明綜合中期業績，連同比較數字如下： ...

Economic Overview - In 2022, the global average Consumer Price Index (CPI) increased by 8.8%, significantly higher than the growth rate in 2021[17]. - The annual average CPI growth rate for the United States was approximately 8.1%, while the Eurozone experienced a growth rate of about 8.3%[17]. - Emerging European economies saw a staggering CPI increase of 27.8% in 2022, with inflation levels rising sharply across major economies[17]. - The pandemic's impact led to a reduction in the labor force in many countries, resulting in tight supply in the labor market and rapid wage increases, further pushing up inflation[19]. - The reconfiguration of supply chains from an emphasis on efficiency to a focus on safety and politics has raised costs and driven up prices globally[19]. China's Economic Conditions - China's economy faced pressures from demand contraction and supply shocks, with actual consumption's contribution to economic growth significantly weakened[20]. - The growth rate of total retail sales of social consumer goods in China became more volatile, indicating a shift in consumer behavior[20]. - The decline in real estate investment in China continued to expand, while manufacturing investment remained resilient due to rapid export growth[20]. - Infrastructure investment contributed to the growth of fixed asset investment in China despite challenges in the service industry[20]. - Net exports stimulated economic growth, although the year-on-year growth rate of foreign trade imports and exports declined due to slowing global economic growth[20]. Retail Industry Trends - The retail industry is shifting towards high-quality, personalized, and differentiated consumption, with a growing trend in e-commerce and community convenience stores[24][25]. - The retail business is recovering, but traditional department stores face unprecedented pressure due to the pandemic and rising operational costs[30]. - The domestic consumption market was severely impacted by the pandemic, leading to significant challenges for supermarkets and department stores in 2022[71]. - In 2022, many listed supermarket companies, including Yonghui and Lianhua Supermarket, reported substantial losses, prompting strategic contractions and store closures[74]. - The Chinese government issued the "Strategic Planning Outline for Expanding Domestic Demand (2022–2035)" to promote domestic spending and consumption upgrades[71]. Shopping Mall Developments - In 2022, 366 shopping malls with a total area of approximately 32.68 million square meters were opened, bringing the total number of shopping mall projects in China to 5,685, with a total area of 503 million square meters[27][28]. - The number of new openings decreased due to the pandemic's impact, reflecting intensified market competition and a gradual slowdown in industry growth[27][28]. - East China accounted for over 40% of new openings, while South China represented 18%, with Guangdong Province alone contributing over 70% of that figure[27][28]. - The proportion of shopping malls with areas between 150,000 to 200,000 square meters is significantly increasing, while smaller projects of 30,000 to 50,000 square meters continue to grow year-on-year[27][28]. - A wave of sports experience has emerged in shopping centers, reflecting the national trend towards sports and fitness[27][28]. Company Financial Performance - For the year ended December 31, 2022, the Group recorded revenue of approximately RMB335.3 million, representing a YOY decrease of approximately 22.8%[31]. - Gross profit from direct sales was approximately RMB14.8 million, reflecting a YOY increase of approximately 4.0%[31]. - Loss attributable to owners of the Company was approximately RMB107.9 million, representing a YOY increase of approximately 7.8%, mainly due to impairment loss provisions on existing loss-making retail stores[31]. - The decline in revenue was primarily due to decreased sales of goods, commissions from concessionaire sales, and rental income from sub-leasing of properties[31]. - The Group implemented operational reforms, reorganized the internal structure of flagship stores, and streamlined business processes to reduce costs[32]. Future Strategies and Outlook - The retail industry is expected to face continued pressure from high operating costs and a slowdown in economic growth, leading to increased consolidation in 2023[36]. - The Group plans to focus on resource consolidation and retail chain development, with an emphasis on expanding in Guangdong and Guangxi through various models including acquisitions and joint ventures[38]. - The integration of physical stores and online platforms is anticipated to enhance customer experience by sharing resources and marketing strategies[36]. - The Group aims to strengthen management and brand image while expanding steadily in the market[38]. - The overall operating environment remains challenging, but the Directors believe there are both opportunities and challenges ahead for the retail industry[37]. Management and Governance - Mr. Zhuang Xiao Xiong has over 17 years of experience in overall operation management of the Group[47]. - Mr. Chin Kam Cheung has over 15 years of experience as an independent non-executive director, with extensive auditing and financial management expertise[48]. - Mr. Sun Ju Yi has over 33 years of experience in financial lecturing, accounting, and corporate financial management, serving the Group for over 10 years[49]. - The company has been in strict compliance with legal and regulatory requirements, enhancing the transparency of corporate governance and information disclosure[200]. - The Group adopted the principles in the Corporate Governance Code to improve the quality of corporate governance, reflected in its Articles of Association and internal regulations[200]. Challenges in the Retail Sector - The pandemic has led to a decline in customer flow and weakening consumption power, making store closures a necessary strategy for many retailers[75]. - Major supermarket companies have begun to close stores, with significant contractions observed in various markets, including the complete withdrawal of Better Life supermarket from the Sichuan market[74]. - The community group buying model's reliance on capital to capture market share is no longer viable, emphasizing the need for core capabilities in supply chain and cost efficiency for future success[80][82]. - The catering industry faced significant challenges, with many well-known brands experiencing sharp declines in net profit and numerous store closures due to pandemic-related restrictions[84][87]. - The overall performance of listed catering companies has deteriorated, with many reporting operating losses and shrinking scales amid the pandemic[84][87].

香港交易及結算所有限公司以及香港聯合交易所有限公司對本公佈之內容概 不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈 全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責 任。 佳 華 百 貨 控 股 有 限 公 司 Jiahua Stores Holdings Limited （於開曼群島註冊成立的有限公司） （股份代號：00602） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 佈 財務摘要 收入下跌22.8%至約人民幣335.3百萬元。 商品銷售毛利率上升4.0%至約人民幣14.8百萬元。 本公司擁有人應佔年內虧損約人民幣107.9百萬元。 每股基本虧損約為人民幣10.40分。 不建議擬派發末期股息。 ...

香港交易及結算所有限公司以及香港聯合交易所有限公司對本公佈之內容概 不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈 全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責 任。 佳 華 百 貨 控 股 有 限 公 司 Jiahua Stores Holdings Limited （於開曼群島註冊成立的有限公司） （股份代號：00602） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 佈 財務摘要 收入下跌22.8%至約人民幣335.3百萬元。 商品銷售毛利率上升4.0%至約人民幣14.8百萬元。 本公司擁有人應佔年內虧損約人民幣107.9百萬元。 每股基本虧損約為人民幣10.40分。 不建議擬派發末期股息。 ...

Economic Environment - The global economy is facing significant inflationary pressures, with inflation in the United States reaching its highest level in four years[11]. - China's economy has experienced a slowdown due to the pandemic, with consumption remaining sluggish while fixed asset investment increased in the first half of the year[20]. - Despite internal and external pressures, China's supply chain remains safe and stable, with strong overseas demand contributing to high growth[20]. - Since June, various economic data in China have shown signs of stabilization and rebound, particularly in the Yangtze River Delta region[20]. Retail Industry Trends - The traditional retail model is undergoing innovation and transformation, driven by new internet technologies, leading to the development of a new retail business model[21]. - In 2022, the retail industry is adapting to market changes, shifting focus from product pipelines to consumer needs, with an emphasis on community-based retail development[25]. - The integration of technology, fashion, and lifestyle is enhancing the shopping experience through smart applications like digital signage and virtual reality displays[25]. - The consumer goods market in China still has growth potential, as the country transitions from a world factory to a world market[25]. - The pandemic has led to a greater emphasis on "instant delivery," highlighting both opportunities and challenges for retailers[29]. - The integration of online and offline retail is becoming a trend, with a focus on improving product quality and user loyalty[26]. - The retail industry is experiencing a shift towards personalized and diversified services, which are becoming dominant consumption trends[37]. - Retail operators are enhancing online capabilities through live broadcasts and multi-channel marketing to increase sales[41]. - The integration of online and offline retail channels is being emphasized to stimulate business growth[37]. Market Performance - The performance of the Group has been affected by various factors, but confidence in the retail industry's development remains strong[30]. - The overall scale of the retail market is expected to continue expanding in 2022, driven by changing consumer behaviors and preferences[31]. - The 618 promotional event saw major e-commerce companies enhancing consumer shopping experiences, injecting new momentum into the market[34]. - The performance of department stores has generally declined due to ongoing pandemic effects and rising costs[39]. - The number of shopping mall openings has shown a decreasing trend over the past five years, indicating a more cautious market development[44]. - The decrease in revenue was primarily due to the ongoing impact of the pandemic on consumer sentiment and the closure of three stores last year[84]. Financial Performance - For the six months ended June 30, 2022, the Group's total revenue was approximately RMB169.0 million, a decrease of approximately 31.7% compared to RMB247.0 million in the first half of 2021[67]. - The total loss attributable to shareholders was approximately RMB26.4 million, compared to a loss of approximately RMB30.4 million for the same period in 2021[67]. - Gross profit was approximately RMB5.8 million, reflecting a year-on-year decrease of approximately 58.4%[83]. - The operating loss was approximately RMB25.1 million, a year-on-year decrease of approximately 14.4%[83]. - The Group's liquidity is dependent upon the cash received from its customers, and the directors are satisfied that the Group will be able to meet its financial obligations in the foreseeable future[117]. - The company incurred a loss of RMB 26,335,000 for the six months ended June 30, 2022, compared to a loss of RMB 100,114,000 for the previous year[174]. Strategic Initiatives - The Group is expanding investment horizons to obtain diverse income sources while enhancing core competitiveness in the retail sector[30]. - The Group aims to consolidate existing stores through reform and innovation to improve sales mix and enhance shopping experience[69]. - The Group plans to enhance its competitive advantage through mergers and acquisitions to explore new business opportunities[77]. - The Group is preparing for the expansion of its branch network and shopping malls in the coming year[86]. - The Group signed a licensing exhibition cooperation agreement to increase store attractiveness and customer flow, resulting in increased sales and new member registrations[92]. - The Group actively organized marketing activities and implemented cross-industry cooperation to provide a diversified shopping atmosphere, including live broadcast sales to enhance customer engagement[98]. Community Engagement - The Group organized community activities to support medical staff and essential workers during the pandemic, enhancing community relations[96]. Operational Challenges - The pandemic has caused delays in the opening of shopping malls originally planned for the first half of 2022, pushing many projects to the second half of the year[49]. - Retailers are focusing on optimizing supply chains and enhancing product management capabilities to mitigate pandemic impacts[41]. Future Outlook - The Group aims to become one of the major operators in the retail industry, leveraging core competencies to navigate challenges and opportunities in 2022[104]. - The Group has prepared to cope with macro-economic conditions that significantly impact the retail industry, driven by rapid growth in information technology[105].