Financial Performance - Total sales proceeds and rental income for the year ended December 31, 2024, were RMB 7,398,080,000, a decrease of 14.2% from RMB 8,622,913,000 in 2023[16] - Total operating revenue for 2024 was RMB 4,999,130,000, down 5.8% from RMB 5,306,289,000 in 2023[16] - Operating profit for 2024 was RMB 897,286,000, a decline of 26.0% compared to RMB 1,212,927,000 in 2023[16] - The company reported a loss for the year of RMB 99,921,000, compared to a loss of RMB 8,316,000 in 2023[16] - Basic loss per share for 2024 was RMB (0.02), compared to RMB (0.01) in 2023[16] - Total assets decreased to RMB 46,462,491,000 in 2024 from RMB 48,950,112,000 in 2023, representing a decline of 5.1%[21] - Total liabilities decreased significantly from RMB 33,120,868,000 in 2023 to RMB 24,227,987,000 in 2024, a reduction of 26.9%[21] - Total equity increased to RMB 22,234,504,000 in 2024 from RMB 15,829,244,000 in 2023, marking a growth of 40.3%[21] - The Group reported a net loss of RMB 99.9 million for 2024, an increase of 1,101.6% based on restated figures compared to the previous year[88] Business Strategy and Market Position - The Group aims to transform from traditional department store retail to a new retail business model, integrating online and offline business development[8] - The Group has expanded into key markets in Eastern, Southwestern, and Northern China, strengthening its leading position in the industry[7] - The company has been focusing on medium-to-high end commercial retail trends in China, leveraging its operational experience and brand resources[8] - The Group's unique operation model of "retail + commercial property" has supported its rapid growth and market expansion[6] - Future strategies include exploring new product lines and technologies to drive revenue growth and improve operational efficiency[25] - The Group aims to enhance consumer experience and attract new customers through a diversified product mix and creative marketing strategies[44] - The Group's focus on brand building and product optimization is part of its strategy to respond to changing consumer behaviors[34] Retail and Consumer Trends - In 2024, China's GDP was approximately RMB 135 trillion, with a year-on-year growth of 5.0%, while total retail sales of consumer goods reached RMB 48.8 trillion, growing by 3.5% year-on-year[31] - Retail sales of the 100 key large-scale retail enterprises in China decreased by 4.3% year-on-year in 2024[31] - The retail industry is increasingly focusing on experience and emotional value, leading to the emergence of new department store formats and brands[31] - The company focused on customer-centric transformation, enhancing product quality and service, and optimizing product mix to meet consumer needs[32] - The company aims to create a 'smart retail' business ecosystem, enhancing personalized shopping experiences for consumers[32] Operational Efficiency and Cost Management - The company implemented a strategy of concessionaire sales to leasing, improving operational efficiency and reducing costs through the use of big data and AI technologies[32] - The Group's operational quality and management have improved, leading to a gradual recovery in business performance and sustainable development[44] - The Group's control on operating costs showed remarkable results, with significant reductions in expenses enhancing overall efficiency[53] - The Group implemented strategies for precise optimization, streamlining, and cost control to enhance operational efficiency[53] - The Group introduced artificial intelligence and big data technologies to replace labor-intensive processes, significantly reducing labor costs[53] Digital Transformation and Technology Integration - The Group's online and offline omni-channel sales strategies were strengthened to capture market opportunities[34] - The Group achieved online full-price sales of approximately RMB 300 million for the full year of 2024, leveraging various applications to capture market traffic[56] - The total number of live broadcasts on Douyin reached 350, with a 16% increase in daily sales percentage[56] - The AI outbound call promotion function in the "Mao Le Hui" self-operated mall achieved a 40% intention rate, outperforming traditional SMS methods[61] - The Group actively integrated online and offline channels, achieving a high degree of digitalization in its operations[55] Corporate Governance - The Company has complied with the Corporate Governance Code throughout the year ended 31 December 2024, except for a deviation from code provision C.2.1[112] - The Board is responsible for overall management and control, including approval of strategic policies and plans to enhance shareholder interests[114] - The Company is committed to enhancing corporate governance practices to align with statutory and professional standards[113] - The implementation and effectiveness of corporate governance mechanisms are reviewed annually, confirming proper implementation in 2024[128] - The Company has established mechanisms to ensure independent views and input are available to the Board[122] Future Outlook - The Group's future outlook anticipates a moderate rebound in the domestic macroeconomy and an optimistic trend in the department store retail industry due to policies promoting domestic demand[66] - The Group plans to transform traditional department stores into diversified formats, including shopping centers and experiential retailing[66] - The Group aims to enhance digital intelligence and integrate technology to improve operational efficiency and explore new business growth points[66] - The Group will continue to focus on innovation and multi-dimensional upgrades to adapt to the changing market landscape[66] Membership and Customer Engagement - The total number of "Mao Le Hui" members reached 3.6 million, a year-on-year increase of 5.2%, with a new member conversion rate of 84.76%, up 32% year-on-year[61] - The "Mao Le Hui" membership management system added 753,500 new members, bringing the total to 18.66 million, with total member consumption amounting to RMB3,148 million[63] - The average monthly user interaction and activity increased by 700% year-on-year, driven by corporate account promotions and private messaging groups[61] Financial Management and Audit - The Audit Committee held 4 meetings during the year ended December 31, 2024, discussing significant issues with external auditors[152] - The Audit Committee reviewed financial statements and reports, ensuring the accuracy and effectiveness of the Company's financial reporting system[150] - The Company has developed risk management procedures with a clear division of power and responsibility[176] - The external auditors reported on their responsibilities regarding the Company's financial statements for the year ended December 31, 2024[182]

Financial Performance - Total retail sales (including leased merchants) reached RMB 8,328.5 million[2] - Total revenue from sales and leasing income amounted to RMB 7,398.1 million[2] - The company recorded a pre-tax profit of RMB 158.4 million, with a net loss of RMB 99.9 million for the year[2] - Basic loss per share for the year was RMB 1.89, and the board recommended no final dividend for the year ended December 31, 2024[2] - Total revenue for the year was RMB 4,018.4 million, a decrease of 3.9% from RMB 4,180.8 million in 2023[3] - Operating profit decreased to RMB 897.3 million from RMB 1,212.9 million, reflecting a decline of 26%[3] - The company reported a comprehensive loss of RMB 394.8 million for the year, compared to a loss of RMB 247.4 million in 2023[5] - The company’s equity attributable to ordinary shareholders decreased to RMB 12,930.3 million from RMB 13,361.1 million[8] - Total sales and rental income for the year ended December 31, 2024, was RMB 7,398.1 million, a decrease of 14.2% compared to RMB 8,622.9 million in 2023[71] - The main business revenue for the year was RMB 4,018.4 million, down from RMB 4,180.8 million in 2023, a decrease of approximately RMB 162.4 million[72] Assets and Liabilities - Total assets decreased to RMB 46,462.5 million from RMB 48,950.1 million, a reduction of 5.1%[6] - Total liabilities decreased significantly to RMB 24,228.0 million from RMB 33,120.9 million, a decline of 26.8%[8] - As of December 31, 2024, the group's current liabilities net amount is approximately RMB 3,108,433,000, with current bank and other borrowings due within the next 12 months amounting to RMB 4,422,287,000[11] - The company reported a basic loss per share attributable to ordinary shareholders of RMB 97,178,000 for the year ended December 31, 2024, compared to a loss of RMB 34,738,000 for 2023[44]. - The company's trade payables as of December 31, 2024, amounted to RMB 1,263,464,000, a decrease from RMB 1,458,160,000 in 2023, reflecting a reduction of 13.4%[46]. Revenue Streams - Franchise sales accounted for 67.6% of total sales and rental income, direct sales accounted for 16.1%, and rental income accounted for 16.3%[70] - Revenue from property sales increased to RMB 772,430 thousand in 2024, up from RMB 464,366 thousand in 2023, representing a growth of approximately 66.2%[32] - Other income decreased to RMB 980,683 thousand from RMB 1,125,475 thousand in the previous year, reflecting a decline of about 12.9%[27][36] Operational Efficiency - Employee expenses totaled RMB 394,844 thousand, down from RMB 414,298 thousand in 2023, showing a reduction of about 4.7%[27][38] - Financing costs decreased to RMB 690,243 thousand from RMB 965,288 thousand in the previous year, a decline of approximately 28.5%[27][39] - Capital expenditures for the year amounted to RMB 362,497 thousand, compared to RMB 730,440 thousand in 2023, indicating a significant decrease of about 50.5%[27][29] - A significant reduction in operational expenses has been achieved, further enhancing the company's profitability and operational momentum[58] Market Trends and Strategies - The retail sales of consumer goods in China for 2024 reached RMB 48.8 trillion, with a year-on-year growth of 3.5%[50]. - The company aims to enhance consumer confidence and adapt to market changes, anticipating a new business cycle in the traditional retail sector in 2025[51]. - The company continues to reshape its business model, focusing on shopping center transformation and joint leasing strategies, leading to an increase in rental income as a percentage of total revenue[54] - The introduction of popular brands, including domestic fashion and high-end cosmetics, has increased their presence in major stores, contributing to overall sales performance[57] - The group plans to embrace technological changes and consumer preference shifts, aiming for a seamless integration of online and offline channels while enhancing digital operations to drive new growth points[64] Digital Transformation - The company is committed to digital transformation, developing online marketing apps to capture market trends and enhance the integration of online and offline operations[59] - In 2024, the group's online sales reached nearly RMB 300 million, with a significant contribution of 45% from the newly launched distribution feature in the self-operated online mall "Maolehui" after its launch in September 2024[60] - The total number of members for "Maolehui" surpassed 3.6 million, representing a year-on-year growth of 5.2%, while the new member conversion rate reached 84.76%, up 32% from 2023[61] Corporate Governance - The board is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance company value[89] - The audit committee, composed of all independent non-executive directors, reviewed the group's performance for the year ended December 31, 2024[91] - The company's auditor, PwC, confirmed that the preliminary financial figures align with the draft consolidated financial report for the year ended December 31, 2024[91]

Store Operations and Expansion - As of June 30, 2024, the Group operated 49 stores across 21 cities in China, with a total gross floor area of approximately 3.1 million sq.m., of which 78.1% was attributable to self-owned properties[9]. - The Group has strengthened its leading position in Southern China and expanded into rapidly growing markets in Eastern, Southwestern, and Northern China[9]. - The Group's store distribution includes key cities such as Shenzhen, Chengdu, and Nanjing, indicating a strategic presence in major urban areas[18]. - The Group's total number of stores reached 49, with a gross floor area of 3,128,155 sq.m, indicating significant operational scale[19]. Financial Performance - For the six months ended June 30, 2024, total sales proceeds and rental income amounted to RMB 3,996,652 thousand, a decrease of 9.9% compared to RMB 4,437,879 thousand in the same period of 2023[10]. - Total operating revenue for the same period was RMB 3,018,329 thousand, up 7.1% from RMB 2,819,426 thousand in 2023[10]. - Operating profit decreased to RMB 628,878 thousand, down 11.3% from RMB 709,286 thousand in the previous year[10]. - Profit for the period attributable to owners of the parent increased to RMB 100,935 thousand, a rise of 20.9% compared to RMB 83,501 thousand in 2023[10]. - Basic and diluted earnings per share for the six months ended June 30, 2024, were RMB 2.0 cents, up from RMB 1.6 cents in the same period of 2023[10][11]. Market Trends and Consumer Behavior - The GDP of mainland China reached RMB 61.68 trillion in the first half of 2024, representing a year-on-year increase of 5.0%[14]. - Total retail sales of social consumer goods in China reached approximately RMB 23.6 trillion, a year-on-year increase of 3.7%[15]. - Online retail sales increased by 9.8% year-on-year to RMB 7.0 trillion, with physical goods online retail sales rising by 8.8% to RMB 5.95 trillion[15]. - The Group's ongoing store upgrades and operational adjustments aimed to strengthen its competitive position in the market and ensure sustainable development[20]. Strategic Initiatives and Innovations - The Group is actively transforming from traditional department store retail to a new retail business model, integrating online and offline advantages[9]. - The Group focused on refined management of commodities and enhanced brand quality, aiming to adapt to evolving consumer trends and improve operational effectiveness[20]. - The Group implemented targeted optimization in its supply chain, reducing costs and increasing operational efficiency through refined management and technology innovations[24]. - The introduction of new consumer categories and cooperation with cost-effective brands was part of the Group's strategy to align with current consumer trends[23]. Membership and Customer Engagement - During the reporting period, the "Mao Yue Hui" membership management system attracted 454.6 thousand new members, bringing the total to 18.36 million members, with total member consumption reaching RMB 1,780 million[33][34]. - The "Mao Le Hui" platform generated a total sales volume (GMV) of RMB 105 million in the first half of 2024, attracting 66,000 new members with a conversion rate of 17%[32]. - The Group's marketing strategies adapted to new consumer trends, focusing on omni-channel marketing and integrating online and offline sales[30]. Financial Position and Liabilities - As of June 30, 2024, the Group had net current liabilities of approximately RMB 10,433.1 million[54]. - Cash and cash equivalents decreased to RMB 715.9 million from RMB 722.8 million as of December 31, 2023, a reduction of RMB 6.9 million[54]. - The Group reported a net cash inflow of RMB 891.0 million from operating activities during the first half of 2024[56]. - The interest-bearing gearing ratio was 23.5% and the net interest-bearing debt to equity ratio was 66.7%, compared to 24.1% and 69.6% as of December 31, 2023, respectively[57]. Related Party Transactions and Governance - The immediate holding company, Maoye Department Store Investment Limited, is wholly owned by Mr. Huang Mao Ru, who also holds 100% of the shares in MOY International Holdings Limited[62][64]. - The Group's ability to repay its debts relies heavily on future operating cash flows, the ability to renew bank borrowings, and continuous financial support from the Ultimate Controlling Shareholder[107]. - The Board does not recommend declaring an interim dividend for the six months ended June 30, 2024, consistent with the previous year[57]. Asset Management and Investments - The net carrying amount of investment properties as of June 30, 2024, is RMB 21,822,172,000, slightly up from RMB 21,806,780,000 as of December 31, 2023[151]. - The Group recognized an impairment loss of RMB 17,244,000 for its investment in Shenzhen UGO E-Commerce Co., Ltd. during the six months ended June 30, 2024, following an accumulated impairment allowance of RMB 200,604,000 recognized in 2023[157]. - The total carrying amount of prepayments and other receivables is RMB 2,425,962 as of June 30, 2024, compared to RMB 2,576,417 as of December 31, 2023, reflecting a decrease of approximately 5.8%[165]. Compliance and Corporate Governance - The Company has complied with the Corporate Governance Code provisions during the six months ended June 30, 2024, with a noted deviation regarding the roles of Mr. Huang Mao Ru as both Chairman and CEO[74]. - The Audit Committee, consisting of all independent non-executive directors, reviewed the unaudited interim results for the six months ended June 30, 2024[75]. - No incidents of non-compliance with the Employees Written Guidelines were noted during the six months ended June 30, 2024[74].

Financial Performance - Total retail sales reached RMB 4,524.5 million[1] - Sales revenue decreased by 13.4% year-on-year to RMB 3,363.7 million[1] - Total operating income grew by 7.1% year-on-year to RMB 3,018.3 million[1] - Net profit increased by 20.3% year-on-year to RMB 115.6 million[1] - Net profit attributable to equity holders of the parent company increased to RMB 100,935 thousand in 2024 from RMB 83,501 thousand in 2023, a growth of 20.9%[18][19] - Operating profit rose to RMB 628,878 thousand in 2024 from RMB 709,286 thousand in 2023, a decrease of 11.3%[18][19] - Total revenue increased to RMB 2,493,460 thousand in 2024 from RMB 2,249,230 thousand in 2023, an increase of 10.9%[18][19] - Basic earnings per share increased to RMB 0.0196 in 2024 from RMB 0.0162 in 2023, a growth of 21.0%[25] - The company's net profit for the first half of 2024 was RMB 115.6 million, an increase of 20.3% compared to the same period in 2023[53] - Operating profit for the first half of 2024 was RMB 628.9 million, a decrease of 11.3% compared to the same period in 2023, mainly due to increased expected credit impairment losses and decreased fair value gains on investment properties[50] Rental and Property Income - Rental income increased by 14.1% year-on-year to RMB 632.9 million[1] - Investment properties increased slightly to RMB 21,822.172 million from RMB 21,806.780 million at the end of 2023[5] - Shop rental income increased by RMB 38,196 thousand (13.4%) to RMB 322,449 thousand for the six months ended June 30, 2024, compared to RMB 284,253 thousand in the same period of 2023[16] - Investment property rental income increased by RMB 45,144 thousand (14.0%) to RMB 368,230 thousand for the six months ended June 30, 2024, compared to RMB 323,086 thousand in the same period of 2023[16] - The company's total rental income increased by 14.1% year-over-year in the first half of 2024, with some stores showing improved rental income and gross margins[33] - Rental income increased by 14.1% year-over-year to RMB 632.9 million[41] Sales and Revenue Breakdown - Direct sales revenue decreased by RMB 131,885 thousand (16.0%) to RMB 691,236 thousand for the six months ended June 30, 2024, compared to RMB 823,121 thousand in the same period of 2023[16] - Property sales revenue increased significantly by RMB 362,269 thousand (119.8%) to RMB 664,624 thousand for the six months ended June 30, 2024, compared to RMB 302,355 thousand in the same period of 2023[16] - Department store revenue decreased to RMB 1,630,277 thousand in 2024 from RMB 1,761,329 thousand in 2023, a decline of 7.4%[18][19] - Property development revenue increased significantly to RMB 721,657 thousand in 2024 from RMB 354,796 thousand in 2023, a growth of 103.4%[18][19] - Total customer contract revenue increased by RMB 244,230 thousand (10.9%) to RMB 2,493,460 thousand for the six months ended June 30, 2024, compared to RMB 2,249,230 thousand in the same period of 2023[16] - Franchised counter sales accounted for 66.9% of total sales and rental income, with a total of RMB 2,672.5 million, a decrease of 12.7% year-over-year[41] - Direct sales revenue was RMB 691.2 million, a decrease of 16.0% compared to the same period in 2023[41] Assets and Liabilities - Total assets decreased to RMB 47,544.467 million from RMB 49,043.358 million at the end of 2023[5] - Total liabilities decreased to RMB 31,890.685 million from RMB 33,120.868 million at the end of 2023[6] - Total equity attributable to equity holders of the parent company remained stable at RMB 460,153 thousand as of June 30, 2024, unchanged from December 31, 2023[7] - Total reserves decreased by RMB 275,731 thousand (2.1%) to RMB 12,707,080 thousand as of June 30, 2024, compared to RMB 12,982,811 thousand at the end of 2023[7] - Total equity decreased by RMB 268,708 thousand (1.7%) to RMB 15,653,782 thousand as of June 30, 2024, from RMB 15,922,490 thousand at the end of 2023[7] - Total liabilities and equity decreased by RMB 1,498,891 thousand (3.1%) to RMB 47,544,467 thousand as of June 30, 2024, compared to RMB 49,043,358 thousand at the end of 2023[7] - Current liabilities net amount stood at RMB 10,433,096 thousand as of June 30, 2024, with RMB 5,545,505 thousand in bank loans due within 12 months and RMB 6,531,678 thousand in current balances payable to related parties[9] - Total bank borrowings as of June 30, 2024, were RMB 11,152.7 million, a decrease from RMB 11,797.2 million as of December 31, 2023[56] - Interest-bearing debt to asset ratio and net interest-bearing debt to equity ratio were 23.5% and 66.7%, respectively, as of June 30, 2024[56] Cash Flow and Financing - Cash and cash equivalents decreased to RMB 715.912 million from RMB 722.822 million at the end of 2023[5] - Net cash and cash equivalents decreased by RMB 6.9 million to RMB 715.9 million as of June 30, 2024, compared to RMB 722.8 million as of December 31, 2023[54] - Net cash inflow from operating activities was RMB 891.0 million, while net cash outflow from investing activities was RMB 22.4 million, including RMB 62.6 million for property, plant, and equipment purchases[54] - Net cash outflow from financing activities was RMB 875.6 million, including RMB 3,637.5 million for bank loan repayments and RMB 2,993.1 million from new bank loans[55] - The company's financing costs decreased by 28.7% year-over-year to RMB 347.2 million, driven by a reduction in interest-bearing liabilities and lower interest rates[51] - Total interest expense decreased to RMB 347,242 thousand in 2024 from RMB 486,918 thousand in 2023, a reduction of 28.7%[22] Expenses and Taxes - Current tax expense increased to RMB 144,786 thousand in 2024 from RMB 113,725 thousand in 2023, a growth of 27.3%[23] - The company's tax expenses increased by 27.3% year-over-year to RMB 144.8 million, primarily due to higher operating profit and land value-added tax[52] - Capital expenditure decreased to RMB 160,016 thousand in 2024 from RMB 481,557 thousand in 2023, a reduction of 66.8%[18][19] - Interest income increased to RMB 4,833 thousand in 2024 from RMB 2,235 thousand in 2023, a growth of 116.2%[21] Accounts Receivable and Payable - Accounts receivable within 90 days increased to RMB 18,799 thousand in June 2024 from RMB 17,355 thousand in December 2023, showing a growth of 8.3%[26] - Accounts receivable over 360 days increased to RMB 25,906 thousand in June 2024 from RMB 20,382 thousand in December 2023, indicating a rise of 27.1%[26] - Accounts payable within 90 days increased to RMB 937,842 thousand in June 2024 from RMB 869,889 thousand in December 2023, reflecting a growth of 7.8%[27] Market and Economic Context - China's GDP in the first half of 2024 reached RMB 61.68 trillion, with a year-on-year growth of 5.0%[28] - Total retail sales of consumer goods in the first half of 2024 amounted to approximately RMB 23.6 trillion, with a year-on-year growth of 3.7%[28] - Online retail sales in the first half of 2024 reached RMB 7.0 trillion, with a year-on-year growth of 9.8%[28] Store Operations and Strategy - The company operates 49 stores across 21 cities, with a total building area of 3.1 million square meters, of which 78.1% is self-owned property[30] - The company's Huabei store achieved a total sales of RMB 30.92 million in cosmetics, showing a continuous growth trend[31] - The company introduced new brands such as Huawei flagship store, Uniqlo, and UR in the Southwest region, and KKV collection store, Mi Cun Mixed Rice, and Xi Ta Old Lady in Qinhuangdao Maoye Tiandi[31] - The company implemented a "one store, one strategy" approach, expanding the dining area and introducing 36 popular brands at the Qinhuangdao Maoye Tiandi store, improving both store efficiency and revenue[32] - The company optimized its supply chain by reducing intermediaries, adopting AI technology, and increasing self-operation of goods and services, leading to cost reduction and efficiency improvement[32] - The company's Chengdu Yanshikou Maoye Tiandi North Area reconstruction project's conceptual design was approved by the Chengdu Urban Planning Committee, with construction progress to be steadily advanced[36] - The company's top-performing store, Shenzhen Huaqiangbei, generated sales and rental income of RMB 713.5 million, with a store age of 20.8 years and a business area of 63,243 square meters[37] Digital Transformation and Online Sales - The "Maolehui" platform achieved a total sales of RMB 105 million in the first half of 2024, with 66,000 new members added and a new member conversion rate of 17%[35] - The "Maoyuehui" membership management system added 454,600 new members, reaching a total of 18.36 million members by June 30, 2024, with total member spending reaching RMB 1.78 billion[35] - The company's online cosmetics sales remained strong, with brands like Lancôme, Estée Lauder, Shiseido, and La Mer exceeding RMB 10 million in sales, and over 20 brands surpassing RMB 1 million in sales[35] - The "Maolehui" mini-program generated a total transaction volume of RMB 24.04 million, with 12 "Cloud Store" events attracting nearly RMB 2 million in advertising investment[35] - The company's TikTok live-streaming platform achieved a daily sales peak of RMB 23,000, with the Armani lip gloss selling over 500 units in a single day[35] - The company's Xiaohongshu platform achieved a single-day sales record of over RMB 600,000 in its first collaboration with the brand DARPHIN[35] - The company plans to focus on digital transformation, exploring new digital operation models, and enhancing online and offline business integration to drive future growth[39] Other Financial Metrics - Total sales and rental income for the first half of 2024 was RMB 3,996.7 million, a decrease of 9.9% compared to the same period in 2023, primarily due to the transition from department store direct sales and franchised counters to shopping center leasing[40] - The company recorded a net foreign exchange loss of RMB 0.8 million during the reporting period, with no foreign exchange risk hedging arrangements in place[58] - No interim dividend was recommended for the six months ended June 30, 2024[59] - The company maintained sufficient public float as required by the listing rules[63] - The interim results were reviewed by PricewaterhouseCoopers in accordance with Hong Kong Standard on Review Engagements 2410[62]

Financial Performance - The company reported a revenue of 15,416 million in 2023, showing a significant increase from 11,547 million in 2021, representing a growth of approximately 33% over two years[12]. - The company aims to achieve a net profit margin of 15% in the upcoming fiscal year, up from 12% in 2023, driven by operational efficiencies and cost management strategies[12]. - The net loss attributable to owners of the parent for 2023 was approximately RMB 96,112,000, compared to a net profit of RMB 228,093,000 in 2022[28]. - Total operating revenue for 2023 was RMB 5,306,289, down 1.7% from RMB 5,395,975 in 2022[53]. - Operating profit for the year was RMB 1,012,323, a decline of 33% compared to RMB 1,510,410 in 2022[53]. - The Group's profit attributable to owners of the parent for the year was a loss of RMB 96,112, compared to a profit of RMB 228,093 in 2022[53]. - Basic earnings per share for 2023 were RMB (0.02), a decrease from RMB 0.04 in 2022[53]. Store Operations and Expansion - The retail network includes over 30 stores across various provinces, with the largest store located in Taiyuan, covering an area of 252,882 square meters[17]. - The company plans to expand its market presence by opening new shopping centers and department stores in key regions, aiming for a 10% increase in store count by the end of 2024[17]. - As of December 31, 2023, the Group operated 49 stores with a total gross floor area of approximately 3.1 million sq.m., with self-owned properties accounting for 78.1% of the total area[22]. - The Group has expanded into key cities across Southern, Eastern, Southwestern, and Northern China, becoming an industry leader in several regions[22]. - The company operates a total of 17 retail stores in Guangdong, Sichuan, Shandong, and Inner Mongolia, with a combined gross floor area of approximately 1,000,000 square meters[57][59]. - Future expansion plans include opening new stores in key provinces to enhance market presence and customer reach[59]. Digital Transformation and Technology - The management highlighted a focus on enhancing user experience through new technology integration, which is expected to improve customer engagement by 20%[17]. - The management discussion indicated a strong focus on digital transformation, with an investment of 10 million in technology upgrades planned for 2024[17]. - The Group will continue to develop and iterate digital infrastructures to expand into new areas of business growth[40]. - New product lines and technology enhancements are being developed to improve customer experience and operational efficiency[59]. Sustainability and Corporate Responsibility - The chairman's statement emphasized a commitment to sustainability, with plans to reduce carbon emissions by 25% over the next five years[17]. - The Group's commitment to corporate social responsibility includes conserving natural resources and minimizing environmental impact[155]. - The Group emphasizes environmental considerations in supplier negotiations, promoting sustainable practices and compliance with environmental regulations[94]. - The Group has implemented strict policies to prohibit the employment of individuals under the age of 16, ensuring compliance with labor laws[92]. Market Trends and Consumer Behavior - The domestic GDP for 2023 reached RMB 126 trillion, with a year-on-year growth of 5.2%[46]. - The total retail sales of consumer goods in 2023 amounted to RMB 47.1 trillion, reflecting a year-on-year increase of 7.2%[46]. - Online retail sales of physical goods grew by 8.4% year-on-year, accounting for 27.6% of total retail sales[46]. - The Group's stores achieved double-digit growth in sales through brand building and quality upgrades, particularly in the Qinhuangdao Maoye Complex[51]. Financial Position and Assets - Total assets decreased to RMB 49,043,358,000 in 2023 from RMB 50,236,899,000 in 2022, representing a decline of approximately 2.4%[28]. - Total liabilities decreased to RMB 33,120,868,000 in 2023 from RMB 33,898,808,000 in 2022, a reduction of about 2.3%[28]. - Total equity attributable to owners of the parent decreased to RMB 13,442,964,000 in 2023 from RMB 13,824,204,000 in 2022, reflecting a decline of approximately 2.8%[28]. - The Group's investment properties amounted to approximately RMB 21,806,780,000[188]. Governance and Compliance - The Company has a focus on corporate governance, with a dedicated report outlining its practices and policies[149]. - The Group's audit committee assists the directors in overseeing the financial reporting process[168]. - The Group has complied in material respects with relevant laws and regulations impacting its business and operations during the year ended December 31, 2023[182]. - The Group's independent auditor's report confirms compliance with International Financial Reporting Standards (IFRS) and the Hong Kong Companies Ordinance[159]. Employee Development and Training - The number of trained employees increased to 4,998 in 2023, representing a 122.38% increase from the previous year[90]. - The percentage of employees trained by gender and employee category is reported, indicating a focus on employee development[63]. - The average training hours completed per employee by gender and employee category are tracked to enhance workforce skills[63]. Mergers and Acquisitions - The company is exploring potential mergers and acquisitions to enhance its market position, targeting a deal that could increase market share by 15%[17]. - The litigation between Chongqing Jiefangbei Store and Xin Long Da has been resolved, allowing the Group to consider acquiring interests in Chongqing Jiefangbei Store and Maoye Wuxi Store[127].

Financial Performance - Total retail sales (including leasing merchants) reached RMB 13,926.3 million[1] - Sales revenue amounted to RMB 7,402.8 million, a year-on-year decrease of 6.7%[1] - The company recorded a net loss of RMB 78.2 million, a year-on-year decline of 138.1%[1] - Excluding the impairment impact on the associate company, net profit for the year was RMB 72.3 million[1] - Basic loss per share for the year was RMB 1.9 cents, with a proposed final dividend of HKD 0.75 per share[1] - Total revenue for the year ended December 31, 2023, was RMB 5,306,289 thousand, a decrease from RMB 5,395,975 thousand in 2022, representing a decline of approximately 1.65%[39] - Operating profit for the year was RMB 997,289 thousand, compared to RMB 1,510,410 thousand in the previous year, indicating a decrease of about 34%[39] - The company reported a net profit of RMB 381,546 thousand for 2023, down from RMB 630,724 thousand in 2022, reflecting a decline of approximately 39.5%[39] Revenue and Income Sources - Total rental income increased to RMB 1,124.2 million, up 6.9% year-on-year[1] - Revenue from direct sales in 2023 was RMB 1,512,516 thousand, slightly up from RMB 1,502,247 thousand in 2022, showing a growth of about 0.18%[43] - Property sales revenue decreased significantly to RMB 464,366 thousand in 2023 from RMB 787,638 thousand in 2022, a decline of approximately 41%[43] - Total other income for 2023 reached RMB 1,125,475,000, an increase of 7.6% from RMB 1,046,285,000 in 2022[49] - The breakdown of revenue sources showed that franchise sales accounted for 69.1%, direct sales for 17.7%, and rental income for 13.2%[89] - Franchise sales totaled RMB 5,890.2 million, down 8.5% from 2022, while direct sales increased by 0.7% to RMB 1,512.5 million, and rental income rose by 6.9% to RMB 1,124.2 million[89] Expenses and Costs - The total cost of sales for the year was RMB 1,850,950 thousand, compared to RMB 1,850,950 thousand in 2022, indicating stable cost management[40] - Employee expenses totaled RMB 414,298,000 in 2023, a decrease of 8.8% compared to RMB 454,586,000 in 2022[49] - Financing costs amounted to RMB 965,288,000 in 2023, down 8.1% from RMB 1,050,310,000 in 2022[51] - Depreciation and amortization expenses were RMB 990.1 million, down 5.6% from RMB 1,049.2 million in 2022[101] - Other operating expenses rose by 3.1% to RMB 1,041.8 million, reflecting increased utility costs as operations normalized post-COVID[103] Assets and Liabilities - Non-current assets totaled RMB 37,511.3 million, down from RMB 38,516.9 million in 2022[9] - Total equity amounted to RMB 15,922.5 million, a decrease from RMB 16,338.1 million in 2022[11] - As of December 31, 2023, the group's current liabilities net amount is approximately RMB 6,232,484,000[14] - The total amount of trade payables as of December 31, 2023, was RMB 1,458,160,000, a decrease from RMB 1,600,620,000 in 2022[62] - The group’s total bank borrowings amounted to RMB 11,797.2 million as of December 31, 2023, down from RMB 12,864.3 million in 2022[136] Future Outlook and Strategy - The group expects to generate cash inflows from operating activities in 2024, which will support its ability to repay maturing debts[14] - The group expects stable recovery growth in 2024, driven by fiscal expansion and monetary easing policies[65] - The group plans to continue optimizing operations and management to capitalize on the recovery of the retail industry in 2024[84] - The group is actively pursuing a diversified and cross-regional development strategy to strengthen its core competitiveness[84] Operational Highlights - The group operated 49 stores across 21 cities in China as of December 31, 2023, with a total building area of approximately 3.1 million square meters[67] - The "Maoyuehui" membership management system added 1.09 million new members in 2023, bringing the total to 17.9 million, with total member spending reaching RMB 4.25 billion[79] - Online sales across all platforms reached RMB 540 million in 2023, with over 2 million visitors attracted through the "Maolehui" WeChat mini-program[77] - The group achieved a 27.6% increase in rental income at the Huaqiangbei store during the reporting period, driven by the ongoing strategy of transitioning from joint operations to leasing[72] - The group's hotel business revenue grew by 50.8% year-on-year, reaching a historical high in 2023[80] Financial Reporting and Standards - The financial statements are prepared in accordance with International Financial Reporting Standards and reflect historical cost accounting[14] - The group has adopted new and revised International Financial Reporting Standards during the year, with no significant impact on the financial statements[22] - The group has not yet applied certain revised International Financial Reporting Standards that have been issued but are not yet effective[26] - The company is currently evaluating the impact of the amendments to IFRS 10 and IAS 28 regarding the treatment of asset sales or contributions between investors and their associates or joint ventures, with no significant impact expected on the financial statements[27]

Store Operations and Locations - As of June 30, 2023, the Group operated and managed a total of 49 stores across 21 cities, with a total gross floor area of approximately 3.1 million sq.m., of which 78.1% was attributable to self-owned properties[14] - The coverage of key cities includes major locations such as Shenzhen, Zhuhai, Chengdu, and Nanjing, indicating a strategic presence in economically significant areas[14] - The Group's self-owned property operating area accounted for 78.1% of the total gross floor area, with related party rental area reaching 84.5%[22] Financial Performance - The total operating revenue for the six months ended June 30, 2023, was RMB 83,501,000, a decrease from RMB 100,202,000 for the same period in 2022, representing a decline of approximately 16.6%[17] - The total sales proceeds and rental income for the Group amounted to RMB 4,437.9 million for the six months ended June 30, 2023, representing a decrease of 10.6% compared to the same period in 2022 due to insufficient market demand and a slow recovery in the domestic retail environment[52] - For the six months ended June 30, 2023, total sales proceeds and rental income amounted to RMB 4,437.9 million, a decrease of 10.6% compared to RMB 4,962.5 million for the same period in 2022[53] - The profit attributable to ordinary equity holders for the six months ended June 30, 2023, was RMB 83,501,000, a decline from RMB 100,202,000 for the same period in 2022[196] Revenue Streams - The Group's rental income and sales revenue included total sales from all stores, direct sales, and rental income, indicating a diversified revenue stream[17] - Franchise sales accounted for 68.9% of total sales, direct sales contributed 18.5%, and rental income made up 12.6%[53] - The total franchise sales for the first half of 2023 was RMB 3,059.9 million, down 13.6% year-on-year[53] - Direct sales revenue increased by 4.9% to RMB 823.1 million compared to the same period in 2022[53] - Rental income decreased by 12.8% to RMB 554.9 million year-on-year[53] Membership and Customer Engagement - The Group's Maoyuehui membership management system attracted 471,000 new members during the reporting period, bringing the total number of service members to 17.27 million, with total member consumption reaching RMB 2,339 million[37] - The Group conducted 202 mini program live broadcasts in the first half of 2023, with sales across the Maolehui platform reaching RMB 210 million[30] Strategic Initiatives - The Group aims to transform from traditional department store retail to a new retail business model by integrating online and offline advantages, enhancing customer experience[14] - The Group continues to focus on the development trend of medium-to-high-end physical retail in China, adapting to market changes and consumer preferences[14] - The Group is focusing on transforming its stores from traditional retail to experiential consumption formats, such as catering and entertainment, to enhance store performance[35] - The Group plans to continue promoting digital upgrades and scientific and technological innovation as core advantages to explore new business growth areas[45] - The Group's strategy includes high-quality merchant leasing management and in-depth data analysis to improve store performance and layout[35] - The Group's new strategy emphasizes diversified and cross-regional coordinated development in response to the comprehensive recovery of the domestic economy[46] Financial Health and Debt Management - The Group's overall interest-bearing debt decreased from RMB 12,864.3 million as of December 31, 2022, to RMB 12,403.6 million as of June 30, 2023, while financing costs reduced from RMB 534.8 million in the first half of 2022 to RMB 486.9 million in the first half of 2023[41] - The Group's net current liabilities as of June 30, 2023, were approximately RMB 5,506,391,000, indicating a significant liquidity position[112] - The Group's ability to repay debts relies heavily on future operating cash flow and the renewal of bank loans[112] - The directors believe that the Group can satisfy its financial obligations in the foreseeable future, preparing the interim financial report on a going concern basis[112] Employee and Operational Efficiency - As of June 30, 2023, the group employed a total of 3,460 employees, with salaries and benefits determined based on market terms and individual performance[87] - The management discussion highlights the ongoing efforts to enhance operational efficiency and market competitiveness amid challenging market conditions[18] Taxation and Expenses - Income tax expenses were RMB 113.7 million, a decrease of 28.8% from RMB 159.6 million in the previous year[59] - The total tax charge was RMB 113,725,000, a decrease of 28.8% from RMB 159,622,000 in the same period of 2022[141] Asset Management - The carrying amount of properties under development was RMB 2,888,739,000 as of June 30, 2023, a slight decrease from RMB 2,902,888,000 at the end of 2022[157] - The Group's inventories for resale amounted to RMB 294,779,000 as of June 30, 2023, compared to RMB 352,487,000 at the end of 2022, indicating a reduction in inventory levels[155] - The total prepayments and other receivables were RMB 2,479,201,000 as of June 30, 2023, down from RMB 2,721,783,000 at the end of 2022[161] Related Party Transactions - Related party transactions during the period included significant dealings with MAOYE INTERNATIONAL HOLDINGS LIMITED, although specific financial figures were not disclosed in the provided content[199] - The interim report highlights the importance of related party transactions in the Group's financial activities, suggesting ongoing strategic partnerships[200]

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的任何損失承擔任何責任。 MAOYE INTERNATIONAL HOLDINGS LIMITED 茂 業 國 際 控 股 有 限 公司 （於開曼群島註冊成立的有限公司） 848 （股份代號： ） 2023 6 30 截至 年 月 日止六個月之中期業績 摘要 • 7,882.2 門店零售總額達人民幣 百萬元 • 4,437.9 10.6% 銷售所得款項及租賃收入總額為人民幣 百萬元，同比下降 • 2,819.4 6.9% 經營收入總額為人民幣 百萬元，同比下降 • 96.0 11.8% 淨利潤為人民幣 百萬元，同比增長 • 1.6 2023 6 30 期內每股基本盈利為人民幣 分，董事會不建議就截至 年 月 日止六 ...

Store Operations and Strategy - As of December 31, 2022, the Group operated 48 stores across 21 cities in China, with a total building area of approximately 3.1 million square meters, of which 77.9% were owned properties[16] - The Group's operational strategy focuses on upgrading store formats and optimizing content to enhance consumer shopping experiences, with an emphasis on transforming stores into shopping centers and community lifestyle hubs[18] - The Group aims to strengthen its operational efficiency and optimize store layouts while empowering technological development as a core advantage[14] - The Group's strategic focus includes introducing high-quality brands and trendy products to continuously update store offerings and improve product quality[18] - The Group's retail network covers key cities including Shenzhen, Chengdu, Wuxi, and Taiyuan, among others[16] - The Group operated and managed a total of 48 stores across 21 cities with a gross floor area of approximately 3.1 million sq.m., with 77.9% of the operating area attributable to self-owned properties[41] - The Group's store transformation initiatives included introducing trendy consumption experiences to meet evolving consumer preferences[36] - The Group aims to enhance its service capacity and optimize store layout while focusing on technological innovation for digital upgrading and business growth[48] Financial Performance - The Group's rental income and total operating revenue for the reporting period were not specified, but the focus remains on increasing market share and sales performance in core categories such as light luxury and cosmetics[18] - Total sales proceeds from concessionaire sales decreased to RMB 6,435.8 million in 2022, down 25.2% from RMB 8,601.0 million in 2021[50] - Direct sales income and rental income totaled RMB 1,502.2 million and RMB 1,051.3 million respectively in 2022, compared to RMB 1,768.5 million and RMB 1,177.7 million in 2021, reflecting a decline of 15.1% and 10.7%[50] - Overall total sales proceeds and rental income for 2022 amounted to RMB 8,989.4 million, a decrease of 22.2% from RMB 11,547.2 million in 2021[52] - The group's main business revenue for the year ended December 31, 2022, was RMB 4,349.7 million, a decrease of 16.9% from RMB 5,234.6 million in 2021[53] - Net profit for 2022 was RMB 205.2 million, representing an increase of 85.5% compared to RMB 110.6 million in 2021[55] - The group reported a net cash inflow of RMB 1,249.5 million from operating activities in 2022[55] - Cash inflow from the disposal of financial assets at fair value through profit or loss was RMB 395.7 million in 2022[55] - The Group's interest-bearing liabilities were further reduced as of December 31, 2022, leading to decreased financial costs and improved profitability[47] Digital Transformation and E-commerce - Online sales experienced rapid growth due to continuous updates and iterations of the Group's digital operation platforms[35] - The online platform "Mao Le Hui" attracted over 2 million visits throughout the year, with more than 300 brands available, and annual online sales for brands like Lancome, SK-II, and Shiseido exceeded RMB 20 million each[45] - The total sales of the entire online platform reached RMB 640 million in 2022[45] - The implementation of a cloud POS system has improved operational efficiency and user experience by integrating mobile payment methods and additional functionalities[76] - The Group's "Xiao Hong Mao" merchant service platform has been optimized to enhance convenience and timeliness of merchant services, improving merchant satisfaction[76] Environmental Responsibility - The Group implemented energy-saving measures and prepared statistical analysis reports to monitor energy consumption effectively[32] - The Group promotes environmentally responsible shopping by using recycled paper bags and charging customers for plastic bags to reduce consumption[112] - The Group is committed to enhancing energy conservation and emission reduction management through various policies and measures[110] - The Group encourages the use of environmentally friendly materials and energy-efficient equipment in construction projects[112] - The Group's initiatives include promoting a paperless office operation and implementing double-sided printing to reduce paper consumption[110] - The Group's electricity consumption decreased by 30.75% in 2022, totaling 267,569,820.37 kWh compared to 386,362,695.46 kWh in 2021[156] - Carbon dioxide emissions in 2022 were 197,084.51 tonnes, a reduction of 28.66% from 276,442.43 tonnes in 2021[177] - The Group has established a sound environmental responsibility system for waste management from construction and restaurant operations[172] Corporate Governance - The Company has complied with the Corporate Governance Code throughout the year ended December 31, 2022, except for a deviation from code provision C.2.1[63] - The Board has delegated responsibilities to executive directors and senior management for day-to-day operations, with periodic reviews of these functions[66] - The Company believes that the current structure of having the same person serve as both Chairman and CEO does not affect the balance of power between the board and management[99] - The Company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific areas[102] - The Audit Committee's main duties include reviewing financial statements and reports, and monitoring the independence and efficiency of external auditors[104] Employee Management - The Group has established a sound compensation system to ensure competitive remuneration and welfare policies for employees[149] - During the reporting period, there were no violations of labor-related laws and regulations[150] - As of December 31, 2022, the Group had 4,001 employees, a decrease of 24.85% compared to 2021[184] - Employee turnover in 2022 was 2,340, accounting for 58.49% of the total workforce, an increase from 37.72% in 2021[187] Future Outlook - The Group is committed to exploring new business growth areas and promoting digital upgrades to create a diversified business ecosystem[14] - Future strategies include leveraging technology for operational empowerment and exploring new business growth areas through digital upgrades[79] - The Group aims to enhance store operational efficiency and optimize store layouts in response to the recovery of retail business post-pandemic[79]

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，概不對因本公告全部或任何 部分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。 MAOYE INTERNATIONAL HOLDINGS LIMITED 茂 業 國 際 控 股 有 限 公司 （於開曼群島註冊成立的有限公司） 848 （股份代號： ） 2022 12 31 截至 年 月 日止年度全年業績公告 摘要 • 14,461.6 門店零售總額達到人民幣 百萬元 • 8,989.4 22.2% 銷售所得款項及租賃收入總額為人民幣 百萬元，同比下降 • 5,396.0 15.7% 經營收入總額為人民幣 百萬元，同比下降 • 205.2 85.5% 本年錄得淨利潤為人民幣 百萬元，同比增長 • 4.44 2022 12 31 年內每股基本盈利為人民幣 分，董事會建議派付截至 年 月 日止 ...