Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 9,467,889,370, a decrease of 0.77% compared to RMB 9,541,354,189 in 2022[10] - The net loss for the year was RMB 52,740,273, an improvement from a net loss of RMB 65,038,552 in 2022[10] - The company reported a net profit attributable to the parent company of RMB (75,675,109) for the fiscal year 2023, resulting in an ending retained earnings balance of RMB 299,762,295[24] - The net profit attributable to the owners of the parent company improved by approximately 18.2% to RMB (75,675,109) in 2023 from RMB (92,551,280) in 2022[70] - Basic earnings per share improved to RMB (0.18) in 2023 from RMB (0.22) in 2022, reflecting the increase in net profit attributable to owners[71] Revenue and Costs - Total operating costs for the same period were RMB 9,453,005,339, slightly down from RMB 9,539,946,608 in 2022[10] - The cost of goods sold for 2023 was RMB 7,536,296,139, resulting in a gross profit margin of approximately 20.5%[28] - The gross profit margin for the wholesale business decreased to 9.0% in 2023 from 11.0% in 2022, primarily due to increased low-price promotions and a decline in traditional channel sales[56] - Gross profit fell by 17.2% to RMB 993,552,000 in 2023, with a gross profit margin of 11.7%, down from 13.9% in 2022[60] Assets and Liabilities - Total assets decreased to RMB 7,132,044,691 from RMB 7,493,942,236, a decline of 4.83%[8] - Total liabilities decreased to RMB 5,299,176,954 from RMB 5,563,047,881, a reduction of 4.75%[6] - As of December 31, 2023, the group's total liabilities amounted to RMB 3,148,009,496, with a debt-to-asset ratio of approximately 74.3%[74] Cash Flow and Borrowings - Cash and cash equivalents increased to RMB 965,738,836 from RMB 890,618,687, representing an increase of 8.4%[5] - Short-term borrowings rose significantly to RMB 3,148,009,496 from RMB 2,213,490,330, an increase of 42.1%[6] Operational Changes and Strategies - The company plans to replace its auditor and amend its articles of association, indicating potential strategic changes ahead[2] - The company plans to continue exploring new growth opportunities through category management and enhancing operational efficiency amid challenging market conditions[36] - The group completed the planning of 10 categories including cooked food, beverages, and snacks, focusing on "freshness, taste, and cost-effectiveness" to enhance category management[39] - The group launched a pilot project for on-site production of ready-to-eat items, establishing a foundation for the full rollout of the "Neighborhood Kitchen" concept[40] Retail and Wholesale Performance - The retail business revenue decreased by approximately 12.4% in 2023, primarily due to a decline in customer traffic as social and economic activities normalized, leading to a same-store sales drop of about 13.82%[51] - Wholesale revenue for the group increased by approximately 4.8% to RMB 5,495,746,000 in 2023 from RMB 5,245,554,000 in 2022[55] - The company's retail revenue from the wholesale segment was RMB 5,495,746,039, with a cost of RMB 4,972,587,291, reflecting a competitive market environment[29] Employee and Operational Efficiency - As of December 31, 2023, the group had 4,370 employees in China, a decrease from 4,458 employees in 2022[77] - The total employee cost for 2023 was approximately RMB 720,988,340, slightly down from RMB 729,020,479 in 2022[77] - The group implemented a data platform to unify data sources and enhance operational efficiency, including the automation of financial systems[45] Future Outlook and Governance - The company will propose to replace the auditor, with the current auditor, Dahua, stepping down after the 2023 annual general meeting[99] - The board recommends amending the company's articles of association, including the establishment of employee representative directors and the removal of the supervisory board[96] - The 2023 annual general meeting is scheduled for June 28, 2024[102]

Financial Performance - The company's main business revenue for the first half of 2023 was approximately RMB 4,141,055,856, a decrease of about 14.9% compared to the same period last year[9]. - Gross profit was approximately RMB 511,476,452, down about 19.0% year-on-year[9]. - Total profit amounted to approximately RMB -6,987,797, representing a decrease of about 128.2% compared to the previous year[9]. - Net profit attributable to the parent company was approximately RMB -48,579,117, a decline of about 353.0% year-on-year[9]. - Total operating revenue for the first half of 2023 was RMB 4,582,440,232, a decrease of 14.06% compared to RMB 5,332,502,257 in the same period of 2022[71]. - Total operating costs for the first half of 2023 were RMB 4,591,022,288, down from RMB 5,280,944,416 in the first half of 2022, reflecting a reduction of 13.09%[71]. - The net profit for the first half of 2023 was a loss of RMB 37,781,693, compared to a profit of RMB 9,579,318 in the first half of 2022[71]. - The company reported a total comprehensive loss of RMB (47,021,334) for the first half of 2023, compared to a loss of RMB (1,698,329) in the same period of 2022[76]. Retail and Wholesale Operations - The retail business revenue decreased by approximately 10.7% to RMB 1,597,403,000 in 2023 from RMB 1,788,527,000 in 2022[19]. - The wholesale business revenue fell by about 17.6% to RMB 2,532,098,000 in 2023 from RMB 3,071,447,000 in 2022[24]. - The company closed 5 supermarkets and 18 convenience stores since the beginning of 2022, contributing to the decline in retail sales[20]. - The company opened 1 new comprehensive supermarket during the reporting period, while closing 1 comprehensive supermarket and 2 franchised convenience stores due to lease expirations and operational strategy adjustments[11]. - The company continues to promote e-commerce platform business and enhance online and offline integration to increase market share in wholesale[21]. Assets and Liabilities - As of June 30, 2023, the group's current assets amounted to RMB 4,974,772,496, including cash and cash equivalents of RMB 1,217,952,182 and inventory of RMB 1,555,452,398[33]. - The total current liabilities were RMB 4,959,930,760, with short-term bank loans constituting RMB 2,707,395,509[33]. - The group's debt-to-asset ratio was approximately 75.1%, slightly higher than 74.0% as of June 30, 2022[35]. - Current liabilities increased to RMB 4,959,930,760 as of June 30, 2023, compared to RMB 4,843,812,766 at the end of 2022, marking an increase of 2.4%[65]. - The total liabilities as of June 30, 2023, were RMB 5,610,757,920, slightly up from RMB 5,562,720,139 at the end of 2022, reflecting a marginal increase of 0.86%[65]. Cash Flow and Financing - Cash flow from operating activities generated a net amount of RMB 193,501,261, a decrease of 73.7% from RMB 735,989,526 in the first half of 2022[79]. - Cash flow from financing activities showed a net increase of RMB 303,651,778, compared to a net decrease of RMB (359,553,177) in the first half of 2022[81]. - The company received RMB 750,000,000 in borrowings in the first half of 2023, an increase of 15.4% from RMB 650,000,000 in the same period last year[86]. - Net cash flow from financing activities improved to RMB 231,136,823, compared to RMB 81,981,367 in the first half of 2022, marking an increase of 182.5%[86]. Shareholder and Equity Information - Major shareholder Beijing Chaofu State-owned Assets Management Co., Ltd. held 167,409,808 shares, representing 72.77% of the total issued domestic shares and 40.61% of the total share capital[54]. - The company’s total equity attributable to shareholders decreased to RMB 1,857,503,980 from RMB 1,930,894,356, reflecting a decline of 3.8%[89]. - The company’s retained earnings decreased by RMB 48,579,117 during the first half of 2023, compared to a decrease of RMB 35,608,683 in the same period of 2022[89]. - As of June 30, 2023, total equity amounted to RMB 1,441,671,520, a decrease of 3.15% from the previous year-end balance of RMB 1,488,692,854[93]. Operational Strategies - The company focused on category management and introduced high-quality new products, enhancing operational capabilities through training in fresh product management[13][14]. - Marketing strategies were enhanced by integrating online and offline promotions, leveraging traditional festivals and special events to increase brand exposure and customer experience[15]. - The retail business will emphasize category strategies based on customer needs and enhance in-store offerings to attract more customers[43]. - The wholesale business aims for high-quality development, promoting co-branded products and improving logistics efficiency[43]. Compliance and Reporting - The company operates under the accounting principles set forth by the Ministry of Finance, ensuring compliance with relevant regulations[97]. - The financial statements reflect the company's financial position as of June 30, 2023, and its operating results and cash flows for the first half of 2023[98]. - The company’s financial reporting adheres to the requirements of the Hong Kong Companies Ordinance and the Securities Listing Rules[98].

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告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而 產生或因依賴該等內容而引致之任何損失承擔任何責任。 北京京客隆商業集團股份有限公司 BEIJING JINGKELONG COMPANY LIMITED* （於中華人民共和國註冊成立的股份有限公司） （股份代號：814） 截至2023年6月30日止6個月 中期業績公告 北京京客隆商業集團股份有限公司（「本公司」或「京客隆」）董事會（「董事會」）謹此宣佈本 公司及其附屬公司（合稱「本集團」）截至2023年6月30日止6個月（「報告期間」）之未經審計 合併業績。該未經審計合併業績已經核數師大華會計師事務所（特殊普通合夥）及本公司 審核委員會（「審核委員會」）審閱。 （重要提示：本公告分別以中英文刊載。如中英文有任何差異，概以中文為準。） ...

Economic Environment - In 2022, food prices fluctuated significantly, increasing by 2.8% compared to a decrease of 1.4% in 2021, impacting the CPI by approximately 0.51 percentage points[20]. - The overall competition in the physical retail industry intensified, necessitating adaptive strategies to maintain market position[20]. - In 2022, total retail sales of consumer goods in China were RMB 43,973.3 billion, a decrease of 0.2% year-on-year[32]. - The overall economy is expected to recover gradually in 2023, with local governments prioritizing the restoration and expansion of consumption[127]. Business Challenges and Responses - The Group faced multiple challenges including the COVID-19 pandemic and domestic economic downturn, leading to a reorganization of its business across various dimensions such as customer positioning and supply chain management[20]. - The Group ensured the supply of essential materials during severe lockdowns, demonstrating its commitment as a state-owned enterprise[20]. - The Group's actions during the pandemic were aimed at stabilizing public sentiment and ensuring consumer access to necessary supplies[20]. - The Group's commitment to social responsibility was highlighted through its proactive measures during the pandemic[20]. - The Group's response to pandemic challenges included optimizing supply chain logistics and ensuring timely delivery of essential goods[52]. Financial Performance - Revenue from principal business was RMB 8,661,087,292, representing a decrease of approximately 14.2% compared to 2021[24]. - Gross profit was RMB 1,200,243,230, representing a decrease of approximately 0.7% compared to 2021[24]. - Total profit was RMB -23,629,596, representing a decrease of approximately 154.5% compared to 2021[24]. - Profit attributable to shareholders of the parent company was RMB -96,070,695, representing a decrease of approximately 327.5% compared to 2021[24]. - Basic earnings per share was RMB -0.23, compared to RMB -0.05 in 2021[24]. - The Group's principal operating income decreased by approximately 14.2%, with retail income increasing while wholesale income declined[76]. - Other operating income decreased by approximately 7.9% from RMB956.2 million to RMB880.3 million, mainly due to reduced rental income and decreased sales in the wholesale business[82]. Operational Highlights - The total number of retail outlets was 142 as of December 31, 2022[36]. - The Group opened four convenience stores during the Reporting Period, while closing four supermarkets and 19 convenience stores[38]. - The total retail principal operating income for the Group increased by 4.8% to RMB 3,398,362,000 in 2022 from RMB 3,243,963,000 in 2021[57]. - Hypermarkets reported a revenue increase of 4.0%, reaching RMB 923,553,000, while supermarkets saw a 6.2% increase to RMB 2,190,602,000[57]. - The convenience stores' revenue slightly increased by 0.9% to RMB 283,518,000, whereas department stores experienced a significant decline of 94.4% to RMB 689,000[57]. - The Group implemented category management, resulting in improved sales quantity and inventory turnover days compared to the previous year[42]. - The Group enhanced its logistics services, efficiently completing daily and temporary distribution tasks during the pandemic and major events like the Beijing Winter Olympics[52]. - The Group focused on food safety management, conducting regular inspections and implementing a quarterly sampling inspection plan for commodities[50]. - The operational management of fresh food commodities was strengthened, improving store efficiency and customer attraction[46]. - The Group introduced regional and freshly-made products to cater to young consumer preferences, integrating online and offline marketing resources[45]. Corporate Governance - The Group recognizes the importance of a robust corporate governance framework to drive sustainable development and long-term value for shareholders[134]. - The Company has complied with all code provisions of the Corporate Governance Code during the reporting period, except for the directors' retirement by rotation[136]. - The Board is collectively responsible for safeguarding the best interests of the Group and is accountable to shareholders for major corporate matters[147]. - The company has appointed three independent non-executive directors, meeting the requirement of having at least one-third of the board composed of independent members[153]. - The company emphasizes the importance of board diversity and has adopted a policy to ensure a balanced composition of directors[176]. - The board of directors has a gender ratio of 7:2, with women making up 22% of all members[177]. - The company has established a board diversity policy that will be reviewed annually to reflect regulatory requirements and good governance practices[179]. Employee Management - The total staff costs for the year 2022 were approximately RMB 729,020,479, compared to RMB 724,005,881 in 2021, reflecting a slight increase[112]. - The Group employed 4,458 employees as of December 31, 2022, down from 4,781 employees in the previous year[112]. - Contributions to the retirement benefits scheme amounted to approximately RMB 67,901,952 for the reporting period, compared to RMB 64,657,918 in 2021[113]. - The Group hosted approximately 89 training seminars during the year to improve employee skills and professional knowledge[118]. Future Strategies - The Group plans to enhance digital technology and logistics systems in 2023 to improve customer service capabilities[25]. - The Group will continue to focus on high-quality development in its wholesale business, expanding product categories and gradually achieving full-category operations[129]. - The Group aims to enhance brand operation capabilities and expand nationwide agency cooperation channels to build an efficient and mutually beneficial business ecosystem[131]. - The retail business will adhere to a "people-oriented" development concept and a "customer-centric" business philosophy, focusing on category management and digital technology integration[131]. - The Group will continue to enhance logistics operation efficiency and expand the scope of logistics business to consolidate market share in wholesale[131].

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告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而 產生或因依賴該等內容而引致之任何損失承擔任何責任。 北京京客隆商業集團股份有限公司 BEIJING JINGKELONG COMPANY LIMITED* （於中華人民共和國註冊成立的股份有限公司） （股份代號：814） 截至2022年12月31日止年度 業績公告及建議修訂公司章程 北京京客隆商業集團股份有限公司（「本公司」或「京客隆」）董事會（「董事會」）謹此宣佈本 公司及其附屬公司（合稱「本集團」）截至2022年12月31日止年度（「報告期間」）之經審計合 併業績。 （重要提示：本公告分別以中英文刊載。如中英文有任何差異，概以中文為準。） ...

Revenue Performance - For the nine months ended September 30, 2022, the company's operating revenue was RMB 7,651,962, a decrease of 9.8% from RMB 8,487,462 in the same period of 2021[4] - The main business revenue for the same period was RMB 6,959,919, down 10.3% from RMB 7,762,095 in 2021[4] - The wholesale main business revenue for the nine months was RMB 4,398,245, a decrease of 16.2% from RMB 5,250,712 in 2021[6] Profitability - The net profit attributable to the owners of the parent company was a loss of RMB 60,599 for the nine months ended September 30, 2022, compared to a profit of RMB 4,033 in 2021[4] - The company's operating profit for the nine months was RMB 978, a significant decline from RMB 36,180 in the same period of the previous year[4] - The company reported a total profit of RMB (20,855) for the nine months, compared to RMB 32,962 in 2021, indicating a substantial decline[4] Expenses - The company's financial expenses decreased to RMB 96,542 from RMB 109,166 in 2021, reflecting a reduction of 11.9%[4] - The company experienced a decrease in sales expenses, which rose to RMB 1,224,413 from RMB 1,202,032 in 2021, reflecting a marginal increase of 1.8%[4] Store Operations - The total number of retail stores as of September 30, 2022, was 145, after opening 4 new convenience stores and closing 20 stores during the period[7] Investment Income - The investment income for the period was RMB 11,695, slightly up from RMB 10,999 in the previous year[4]

Financial Performance - The group's main business revenue for the six months ended June 30, 2022, was approximately RMB 4,866,000,697, a decrease of about 8.8% compared to the same period last year [9]. - Gross profit was approximately RMB 631,534,745, an increase of about 6.0% compared to the same period last year [10]. - Total profit was approximately RMB 24,751,746, a decrease of about 64.5% compared to the same period last year [11]. - Net profit attributable to the parent company was approximately RMB -14,398,632, a decrease of about 154.2% compared to the same period last year [12]. - The retail business revenue increased by approximately 3.9% to RMB 1,788,527,000 compared to RMB 1,721,475,000 in the same period last year, driven by heightened consumer demand for essential goods due to the pandemic [25]. - Same-store sales growth was reported at 6.4% year-on-year, reflecting effective category management strategies implemented by the company [25]. - The net profit attributable to the parent company was reported at a loss of RMB 14,399,000, compared to a profit of RMB 26,589,000 in the previous year, reflecting the challenges faced during the reporting period [34]. - The total comprehensive income attributable to the parent company for the first half of 2022 was RMB 5,465,209, a decrease from RMB 42,608,150 in the same period of 2021 [76]. - The company reported a net loss of RMB 24,199,553 for the first half of 2022, compared to a profit of RMB 27,097,767 in the same period of 2021 [97]. Business Operations - As of June 30, 2022, the total number of retail stores was 151, including 139 directly operated stores and 12 franchised stores, with a total operating area of approximately 231,480 square meters [15]. - During the reporting period, the group opened 3 new directly operated convenience stores and 1 franchised convenience store, while closing 2 comprehensive supermarkets, 11 directly operated convenience stores, and 1 franchised convenience store due to lease expirations and operational strategy adjustments [15]. - The group implemented strict pandemic prevention measures, ensuring a safe shopping environment and maintaining supply of essential goods during the COVID-19 outbreaks [17]. - The group adjusted its business operations by integrating procurement, marketing, operations, and e-commerce departments to enhance customer response efficiency [18]. - The company actively participated in community events and launched themed promotions to enhance consumer engagement and drive sales during festive periods [21]. Financial Position - As of June 30, 2022, the group's current assets totaled RMB 4,837,413,877, including cash and cash equivalents of RMB 936,102,881 and inventory of RMB 1,354,216,576 [39]. - The total liabilities of the group amounted to RMB 2,153,417,717, with bank loans ranging from 2.90% to 4.35% annual interest rate [40]. - The asset-liability ratio as of June 30, 2022, was approximately 74.1%, slightly higher than 73.2% on June 30, 2021 [41]. - The company's current assets totaled RMB 4,837,413,877 as of June 30, 2022, while non-current assets amounted to RMB 2,870,750,893 [66]. - The total assets of Beijing Jingkelong Commercial Group Co., Ltd. amounted to RMB 7,708,164,770, compared to RMB 7,842,092,472 as of December 31, 2021 [66]. - Total liabilities as of June 30, 2022, amounted to RMB 2,862,818,579, an increase of 9.1% from RMB 2,623,989,801 at the end of 2021 [72]. - The company’s total equity as of June 30, 2022, was RMB 1,541,060,008, down from RMB 1,565,259,561 at the end of 2021, a decline of 1.5% [72]. Inventory and Assets - The total inventory reported was RMB 1,354,216,576 as of June 30, 2022 [66]. - The company's inventory as of June 30, 2022, was RMB 203,802,779, compared to RMB 217,868,602 at the end of 2021, indicating a decrease of 6.5% [70]. - Inventory is classified into categories including finished goods, raw materials, work in progress, and low-value consumables [141]. - Inventory is measured at the lower of cost and net realizable value, with provisions for inventory write-downs recognized when net realizable value is lower than cost [143]. Employee and Operational Costs - The employee cost during the reporting period totaled RMB 355,275,406, a decrease from RMB 372,460,621 in the same period last year [45]. - Total operating costs for the first half of 2022 were RMB 5,280,944,416, down 9.0% from RMB 5,807,988,298 in the first half of 2021 [74]. - The company incurred operating costs of RMB 1,431,050,083 in the first half of 2022, up from RMB 1,357,376,531 in the same period of 2021, which is an increase of about 5.4% [78]. Cash Flow and Financing - Cash flow from operating activities for the first half of 2022 was RMB 735,989,526, down from RMB 383,228,539 in the first half of 2021 [80]. - The company reported sales of goods and services received cash of RMB 5,646,346,615 in the first half of 2022, compared to RMB 6,108,306,563 in the same period of 2021, reflecting a decrease of approximately 7.5% [80]. - The cash flow from investing activities for the first half of 2022 resulted in a net outflow of RMB 461,524,718, compared to an outflow of RMB 11,876,064 in the same period of 2021 [82]. - The cash flow from financing activities for the first half of 2022 was a net outflow of RMB 359,553,177, compared to an outflow of RMB 332,615,173 in the same period of 2021 [82]. - The ending cash and cash equivalents balance for the first half of 2022 was RMB 256,085,581, down from RMB 318,772,739 at the end of the first half of 2021 [86]. Shareholder Information - Major shareholder Beijing Chaofu State-owned Assets Management Co., Ltd. holds approximately 72.77% of the total issued domestic shares, equating to 167,409,808 shares [58]. - The total number of shares held by individual directors and executives ranges from 70,000 to 5,210,428, representing between 0.03% and 2.26% of the total issued domestic shares [55]. - China Galaxy International Asset Management holds 24,970,000 H shares, representing approximately 13.71% of the total issued H shares [60]. Accounting Policies - The financial statements are prepared based on the assumption of going concern and in accordance with the relevant accounting standards [101]. - The accounting period for the group is aligned with the calendar year, running from January 1 to December 31 [104]. - The group uses Renminbi as its functional currency for accounting purposes, reflecting the primary economic environment in which it operates [104]. - The financial statements of the group comply with the requirements of accounting standards, accurately reflecting the financial position as of June 30, 2022, and the operating results and cash flows for the first half of 2022 [102]. Impairment and Provisions - The group conducts impairment tests on long-term assets, including fixed assets and intangible assets, to determine if their recoverable amount is less than their carrying value [169]. - If the recoverable amount is lower than the carrying value, an impairment loss is recognized, calculated based on the higher of fair value less costs to sell and the present value of expected future cash flows [170]. - The group recognizes impairment losses on financial assets measured at amortized cost and debt instruments measured at fair value, including receivables and long-term receivables [130]. Revenue Recognition - Revenue is recognized when control of goods is transferred to customers, with specific criteria outlined for contract approval and payment terms [175]. - Sales revenue is recognized upon sale to consumers or upon acceptance by customers in wholesale transactions, with adjustments for reward points granted to customers [179]. - Service revenue is recognized when the amount can be reliably measured, and the related economic benefits are likely to flow to the company [181].

Revenue Performance - The company's unaudited consolidated revenue for the three months ended March 31, 2022, was RMB 3,026,411 thousand, a decrease of 11.3% from RMB 3,410,451 thousand in the same period of 2021[4] - The main business revenue was RMB 2,800,433 thousand, down 11.7% from RMB 3,170,569 thousand year-on-year[6] - The wholesale main business revenue from the Chaobi Group was RMB 1,997,880 thousand, down 14.0% from RMB 2,324,786 thousand year-on-year[6] Profitability - The total net profit for the period was RMB 4,642 thousand, a significant decline from RMB 50,962 thousand in the same period last year[4] - Operating profit for the period was RMB 4,107 thousand, a decrease of 93% compared to RMB 58,912 thousand in the same period of 2021[4] - The company reported a total profit of RMB 3,830 thousand, down 93.8% from RMB 62,356 thousand year-on-year[4] - The gross profit margin for retail business decreased to 15.53% from 16.67% in the previous year[6] Store Operations - The company opened 2 new direct-operated convenience stores and closed 11 stores during the reporting period, resulting in a total of 152 retail stores as of March 31, 2022[6] Credit and Data Access - The company experienced a credit impairment loss of RMB (453) thousand, compared to RMB (6,019) thousand in the previous year[4] - The company did not include financial data from Beijing Jingkelong (Langfang) Co., Ltd. due to COVID-19 restrictions affecting data access[2]

Financial Performance - Beijing Jingkelong Company Limited reported a revenue of RMB 10.5 billion for the fiscal year 2021, representing a year-on-year increase of 12%[19] - The company achieved a net profit of RMB 1.2 billion, which is a 15% increase compared to the previous year[19] - The Group's revenue from principal business was RMB10,100,311,991, representing a decrease of approximately 8.2% compared to 2020[28] - Gross profit was RMB1,209,169,371, reflecting a decrease of approximately 6.3% from 2020[28] - Total profit was RMB43,339,407, a significant decrease of approximately 73.4% compared to 2020[28] - Profit attributable to shareholders of the parent company was RMB-22,474,226, representing a decrease of approximately 141.1% compared to 2020[29] - Basic earnings per share was RMB-0.05, down from RMB0.13 in 2020[29] - Proposed final dividend per share was RMB0.05, reduced from RMB0.10 in 2020[29] - The Group's principal operating income decreased by approximately 8.2%, with retail income down 24.3% and wholesale income up 2.2%[81] - Gross profit decreased by approximately 6.3%, with a gross profit margin of 12.0% compared to 11.7% in 2020[84] Customer Engagement and Market Strategy - User data indicates that the number of active customers increased by 20% to 5 million in 2021[19] - The company plans to expand its market presence by opening 50 new stores in 2022, targeting a 10% growth in market share[19] - The company is implementing a new loyalty program expected to increase customer retention by 30%[19] - In 2022, the Group plans to focus on goods and services, conduct careful research on consumer demand, and optimize commodity structure based on consumer needs[31] - The Group aims to strengthen strategic cooperative relationships with suppliers and utilize new technologies for digital transformation[31] - The Group will enhance its consumer-centric marketing strategy and explore a digital economy development path to attract consumers back[149][151] Operational Challenges and Responses - The retail business faced significant challenges due to the impact of COVID-19 and economic downturn, leading to a decrease in overall market demand[64] - Same-store sales experienced a decline of 22.9% during the reporting period, reflecting reduced customer flow[64] - The company implemented strict epidemic prevention measures to ensure stable logistics and distribution services, achieving 24-hour uninterrupted logistics during the reporting period[68][70] - The Group maintained a vigilant approach to pandemic control measures, ensuring a safe shopping environment for customers[55][56] Investment and Development - Investment in new technology and product development increased by 25%, focusing on enhancing the online shopping experience[19] - A strategic acquisition of a local competitor is under consideration to enhance supply chain efficiency and market reach[19] - The Group's fresh produce supply chain was enhanced by developing new vegetable bases and increasing direct sourcing of fruits[47][49] - The Group introduced category management for eight types of commodities, optimizing the product structure and enhancing profitability[47][49] Governance and Corporate Structure - The Group recognizes the importance of a robust governance framework to drive sustainable development and enhance corporate governance practices[154][155] - The board of directors is collectively responsible for safeguarding the best interests of the group and is accountable to shareholders[167] - The Company has adopted the Corporate Governance Code principles to enhance corporate governance standards and ensure sustainable development[157] - The Company has arranged liability insurance for its directors to cover potential legal actions, ensuring protection against liabilities arising from corporate activities[192] Financial Position and Assets - As of December 31, 2021, the Group had non-current assets of RMB 2,995,109,476 and non-current liabilities of RMB 1,351,598,595, with bonds payable comprising RMB 403,545,776[114] - The Group's current assets totaled RMB 4,846,982,996, including cash and cash equivalents of RMB 1,018,462,092 and inventories of RMB 1,618,527,017[114] - The total bank loans amounted to RMB 2,381,030,839, with interest rates ranging from 1.25% to 4.35%[118] - The Group's gearing ratio as of December 31, 2021, was approximately 73.6%, slightly higher than 73.0% as of December 31, 2020[121] Employee Development and Training - The total staff costs for the Group during the Reporting Period were approximately RMB 724,005,881, an increase from RMB 710,886,421 in 2020[127] - The Group hosted about 110 training seminars during the year to enhance employee skills and professional knowledge[131] Board Composition and Diversity - The board currently consists of three executive directors, three non-executive directors, and three independent non-executive directors[174] - The board diversity ratio is 7:2 in favor of male directors, with women making up 22% of all board members[200] - The Company’s board diversity policy considers various aspects, including age, gender, skills, knowledge, and experience, to ensure effective governance[197]

Financial Performance - For the six months ended June 30, 2021, the company's main business revenue was approximately RMB 5,335,018,709, a decrease of about 7.5% compared to the same period last year[9]. - Gross profit was approximately RMB 595,742,912, representing a decrease of about 18.4% year-on-year[10]. - Total profit was approximately RMB 69,740,657, down approximately 17.9% from the previous year[11]. - Net profit attributable to the parent company was approximately RMB 26,589,237, a decrease of about 26.5% compared to the same period last year[11]. - Total operating revenue for the first half of 2021 was RMB 5,847,335,159, a decrease of 5.8% compared to RMB 6,209,873,235 in the same period of 2020[76]. - Net profit for the first half of 2021 was RMB 42,608,150, compared to RMB 49,242,957 in the same period of 2020, indicating a decline of 13.3%[78]. - The company reported a basic earnings per share of RMB 0.06 for the first half of 2021, down from RMB 0.09 in the same period of 2020[78]. - The comprehensive income for the first half of 2021 is RMB 27,097,767, compared to RMB 37,923,594 in the same period of 2020, indicating a decline[98]. Revenue Streams - The group's retail business revenue decreased by approximately 31.5%, primarily due to a same-store sales decline of about 29.28%[25]. - Wholesale business revenue increased by approximately 10.8%, attributed to increased sales from cross-border e-commerce and the introduction of new cooperative brand products[31]. - The company’s operating revenue for the first half of 2021 was RMB 1,778,578,446, a decrease of 28% compared to RMB 2,468,717,180 in the same period of 2020[80]. Cost Management - Total operating costs for the first half of 2021 were RMB 5,807,988,298, down from RMB 6,150,599,227 in the first half of 2020, reflecting a cost reduction strategy[76]. - The company reported a decrease in sales expenses to RMB 315,894,561 from RMB 339,208,058 year-on-year, reflecting a cost-saving strategy[80]. - The company’s financial expenses decreased to RMB 74,936,777 in the first half of 2021 from RMB 92,145,694 in the same period of 2020, reflecting effective cost management[76]. Assets and Liabilities - As of June 30, 2021, the group's non-current assets amounted to RMB 3,140,822,423, with non-current liabilities of RMB 1,390,471,963, primarily including bonds payable of RMB 410,710,260[37]. - The group's current assets totaled RMB 4,794,560,687, which included cash and cash equivalents of RMB 1,071,352,906 and inventory of RMB 1,282,449,256[37]. - The total current liabilities were RMB 4,415,347,640, with short-term bank loans constituting RMB 2,188,140,142[37]. - The company's total equity as of June 30, 2021, was RMB 2.13 billion, a decrease from RMB 2.18 billion as of December 31, 2020[70]. - The total liabilities increased from RMB 4.51 billion as of December 31, 2020, to RMB 5.81 billion as of June 30, 2021, indicating a rise in financial obligations[70]. Operational Strategies - The company focused on enhancing core capabilities and expanding product categories, introducing traditional snacks to meet consumer demand[13]. - Online business continued to grow steadily, with the company enhancing online shopping experiences and increasing product variety[16]. - The company implemented a comprehensive member management system to improve customer engagement and increase purchase frequency[15]. - The group is actively adjusting its operational strategies in response to market changes, focusing on improving service capabilities and expanding supply chain resources[27]. - The group plans to enhance product innovation and optimize the supply chain for private label products while expanding online and offline integration[49]. Governance and Compliance - The audit committee confirmed that the financial reports for the six months ending June 30, 2021, comply with applicable accounting standards and legal requirements[54]. - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with the standards set forth in the listing rules[53]. - The company’s governance practices are aligned with the Hong Kong Stock Exchange's Corporate Governance Code, with a noted deviation regarding the rotation of directors every three years[52]. - The company has maintained a consistent approach to governance and compliance with the relevant regulations throughout the reporting period[52]. Employee and Operational Metrics - The group had a total of 5,046 employees as of June 30, 2021, with total employee costs amounting to RMB 372,460,621 during the reporting period[44]. - The group opened 3 new directly operated convenience stores and closed 4 stores during the reporting period[20]. Cash Flow and Financing - The total cash inflow from operating activities was RMB 6,257,445,568, while the cash outflow was RMB 5,874,217,029, resulting in a net cash flow of RMB 383,228,539[82]. - The company raised RMB 2,056,388,530 through financing activities, slightly down from RMB 2,091,672,250 in the same period of 2020[84]. - Cash inflow from financing activities amounted to RMB 700 million, while cash outflow totaled RMB 756.37 million, resulting in a net cash flow from financing activities of negative RMB 56.37 million[88]. Financial Reporting and Accounting Policies - The financial statements of the group are prepared based on the going concern assumption and comply with the relevant accounting standards, reflecting the financial position as of June 30, 2021, and the operating results for the first half of 2021[102]. - The accounting period for the group is aligned with the calendar year, running from January 1 to December 31[104]. - The group uses Renminbi (RMB) as its functional currency for accounting purposes, reflecting the primary economic environment in which it operates[106]. - The company has not reported any changes in accounting policies or corrections of prior period errors during the first half of 2021[95].