Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was approximately RMB 592.9 million, a decrease of about RMB 74.5 million compared to the fiscal year ending December 31, 2023[13]. - The net loss for the fiscal year 2024 was approximately RMB 68.2 million, an increase in loss of about RMB 41.5 million compared to the previous fiscal year[13]. - The decrease in revenue was primarily due to a reduction in collective procurement business and the closure of several retail stores[13]. - The company's gross profit margin decreased, leading to a reduction in overall gross profit, influenced by the operating environment and decreased supplier channel income[13]. - Retail store business revenue for fiscal year 2024 was approximately RMB 431.1 million, down by about RMB 101.3 million or 19.0% from fiscal year 2023[34]. - Wholesale distribution revenue increased to approximately RMB 161.8 million, an increase of about RMB 26.8 million or 19.9% compared to fiscal year 2023[34]. - The company's gross profit margin decreased to 12.1% in fiscal year 2024 from 13.7% in fiscal year 2023, primarily due to lower wholesale distribution margins[35]. - The net loss for fiscal year 2024 was approximately RMB 68.2 million, an increase in loss of about RMB 41.5 million or 155.6% compared to fiscal year 2023[42]. - Total comprehensive expenses for fiscal year 2024 are approximately RMB 68.1 million, an increase of RMB 41.7 million or 158.3% compared to fiscal year 2023[43]. - The company reported a loss before tax of RMB 68,487,000, compared to a loss of RMB 27,456,000 in 2023, indicating a significant increase in losses[197]. - Net loss for the year was RMB 68,198,000, which is a 156.5% increase from RMB 26,684,000 in the prior year[197]. - Basic and diluted loss per share for the year was RMB 0.23, compared to RMB 0.09 in 2023, reflecting a worsening financial position[197]. Business Strategy and Operations - The company is focusing on a multi-channel business model that includes retail, wholesale, online-offline integration, and community marketing to enhance customer satisfaction and brand value[12]. - The company aims to expand its business footprint beyond the Guangdong-Hong Kong-Macao Greater Bay Area to other regions in China[12]. - The company is focusing on transforming its business model by launching new formats such as "supply and marketing discount stores" and "24-hour AI smart unmanned stores" to adapt to market changes[24]. - The company aims to enhance its supply chain by reducing intermediaries through direct supply from manufacturers and nationwide joint procurement, which is expected to improve gross profit margins[24]. - The company plans to strengthen its e-commerce presence and community group buying initiatives, collaborating with third-party platforms like Meituan and JD Daojia to boost sales[24]. - The company aims to explore new business development opportunities outside Guangdong Province and in Hong Kong, leveraging favorable policies in Hainan Free Trade Port[25]. - The company is actively adjusting its business development direction to become a leading urban-rural circulation operator in China[25]. - The company aims to expand its business model by developing discount stores and collective procurement and distribution services[26]. - The company intends to leverage new media marketing and enhance its online platform scale, including its own e-commerce platform[26]. Market Environment - The retail industry in China is facing significant challenges due to economic pressures, changing consumer spending habits, and insufficient consumer demand[14]. - The overall consumer market in China is expected to show stable growth in 2024, despite ongoing challenges in the retail sector[14]. - The company faces risks from intense competition in the retail sector and changing customer preferences, which may impact future growth and profitability[29][30]. Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring high standards of corporate governance[70]. - The company has established a board diversity policy, considering various measurable aspects such as gender, age, and professional experience in its board composition[76]. - The roles of the chairman and the CEO are clearly defined to ensure a balance of power and authority within the company[79]. - The company has complied with all provisions of the corporate governance code as of December 31, 2024, following the appointment of a new independent non-executive director[72]. - The company has implemented a standard code for securities trading by directors, ensuring compliance among all board members[73]. - The nomination committee is responsible for monitoring the implementation of the board diversity policy and will review it periodically to ensure its effectiveness[76]. - The company is committed to fair treatment of employees from diverse backgrounds, ensuring the protection of their legal rights[78]. - The board of directors held four meetings during the year ending December 31, 2024, with individual attendance records documented[81]. - The audit committee conducted four meetings during the year, reviewing the group's interim and annual performance and discussing financial reports[94]. - The company has established appropriate directors and officers liability insurance to cover potential legal claims against its directors and senior management[86]. - All independent non-executive directors confirmed their independence according to the listing rules, with none serving for more than nine years[92]. - The company has three established board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, each with specific written terms of reference[93]. - The company encourages continuous professional development for directors, with all participating in relevant training courses at the company's expense[89]. - The board retains decision-making authority on significant matters, including policy, strategy, budget, and major transactions[88]. - The company has implemented a system for independent professional advice for directors to fulfill their responsibilities, with costs covered by the company[87]. - The board's effective operation is supported by the diverse business experience and expertise of all directors, including independent and non-executive members[87]. Financial Position and Assets - As of December 31, 2024, the company has cash and cash equivalents of approximately RMB 21.2 million, down from RMB 48.7 million as of December 31, 2023[46]. - The total debt as of December 31, 2024, is approximately RMB 62.0 million, an increase from RMB 28.0 million as of December 31, 2023[49]. - The company's asset-liability ratio increased to 75.3% in fiscal year 2024 from 18.6% in fiscal year 2023[51]. - Accounts receivable turnover days increased to 22.0 days in fiscal year 2024 from 18.0 days in fiscal year 2023[51]. - Inventory turnover days decreased to 54.0 days in fiscal year 2024 from 60.1 days in fiscal year 2023[51]. - The return on equity for fiscal year 2024 is -83.6%, compared to -17.9% in fiscal year 2023[51]. - The company has no significant capital commitments or major investments planned for fiscal year 2024[45][47]. - There were no significant acquisitions or disposals of subsidiaries during fiscal year 2024[48]. - The company has sufficient retained earnings and distributable reserves to support its operations and shareholder interests[128]. - The company’s financing needs and expected capital expenditure requirements are aligned with its business expansion plans[128]. - The company has reallocated part of the unutilized net proceeds from opening new retail stores to renovating existing stores and repaying bank loans due to the slowdown in China's economic growth[131]. - The company’s total liabilities increased from RMB 170,265 thousand in 2023 to RMB 190,815 thousand in 2024, reflecting a rise of approximately 12.1%[198]. - Total non-current assets decreased from RMB 131,072 thousand in 2023 to RMB 93,494 thousand in 2024, a decline of approximately 28.7%[198]. - Current assets decreased from RMB 234,434 thousand in 2023 to RMB 211,206 thousand in 2024, a reduction of about 9.9%[198]. - Current liabilities increased from RMB 170,265 thousand in 2023 to RMB 190,815 thousand in 2024, an increase of approximately 12.1%[198]. - Net current assets decreased significantly from RMB 64,169 thousand in 2023 to RMB 20,391 thousand in 2024, a decline of about 68.3%[198]. - Total equity decreased from RMB 150,415 thousand in 2023 to RMB 82,358 thousand in 2024, a drop of approximately 45.3%[199]. - Cash and cash equivalents decreased from RMB 48,683 thousand in 2023 to RMB 21,152 thousand in 2024, a decline of about 56.5%[198]. - Trade payables decreased from RMB 78,384 thousand in 2023 to RMB 66,591 thousand in 2024, a reduction of approximately 15.0%[198]. - The company's reserves decreased from RMB 146,794 thousand in 2023 to RMB 78,959 thousand in 2024, a decline of about 46.3%[199]. Shareholder and Stock Information - The company has not declared any dividends for the fiscal years reported[9]. - The company has not declared any final dividends for the fiscal year ending December 31, 2024, as per its dividend policy[124]. - The company operates as an investment holding company, focusing on supermarket chain operations primarily in Guangdong Province, China[121]. - The company has a stock option plan that allows for the issuance of up to 28,647,700 shares, representing about 9.86% of the shares issued as of the report date[135]. - The total number of shares that can be issued under the stock option plan is capped at 10% of the total shares post-global offering, amounting to 28,647,700 shares, which is approximately 9.86% of the shares issued as of the report date[137]. - The total number of shares issued and to be issued under the stock option plan for each eligible participant cannot exceed 1% of the issued shares as of the grant date within any 12-month period[138]. - The exercise price for any specific stock option must be determined by the board but cannot be lower than the highest of the closing price on the grant date or the average closing price over the five trading days preceding the grant date[145]. - The stock option plan is effective for 10 years from the date of approval and can only be terminated early by shareholder resolution or board decision[143]. - Major shareholders hold a total of 204,558,317 shares, representing 70.42% of the company's equity[151]. - Infini Capital Management is a beneficial owner with 27,600,000 shares, accounting for 9.50% of the equity[151]. - As of December 31, 2024, the indirect controlling shareholder holds approximately 70.42% of the company's issued shares[149]. - The company has no other stock option plans apart from the one mentioned, and no options have been granted that exceed the 30% limit on total shares[137]. - The company has received no applications for stock options that would exceed the 1% limit without shareholder approval[139]. Compliance and Risk Management - The company has implemented a robust internal control and risk management system, with an independent consultant assessing its effectiveness during the year ending December 31, 2024[109]. - The board confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2024, and its performance for the year[104]. - The company has established an insider information policy to manage and disclose insider information in compliance with relevant regulations[110]. - The company adopted an anti-corruption and bribery policy in 2022, ensuring effective risk management and internal control systems for the fiscal year ending December 31, 2024[111]. - The company maintained the required public float as per listing rules throughout the reporting period[172]. - There were no significant events requiring disclosure that occurred after December 31, 2024, up to the date of the report[174].

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 592,941,000, a decrease of 11.2% compared to RMB 667,409,000 in 2023[2] - Gross profit decreased by 21.2% to RMB 71,880,000 from RMB 91,204,000 year-over-year[2] - Operating loss increased by 71.2% to RMB (38,328,000) compared to RMB (22,393,000) in the previous year[2] - Net loss for the year was RMB (68,198,000), a significant increase of 155.6% from RMB (26,684,000) in 2023[2] - Total revenue for the year ended December 31, 2024, was RMB 592,941 thousand, a decrease of 11.1% from RMB 667,409 thousand in 2023[18] - The reported loss before tax for the year ended December 31, 2024, was RMB 68,487 thousand, compared to a loss of RMB 27,456 thousand in 2023[19] - The company reported a loss attributable to shareholders of RMB 67,976,000 for the year ended December 31, 2024, compared to a loss of RMB 26,754,000 in 2023, resulting in a basic and diluted loss per share of RMB (0.23) compared to RMB (0.09) in the previous year[36] - The group's net loss for fiscal year 2024 was approximately RMB 68.2 million, an increase in loss of about RMB 41.5 million or 155.6% compared to fiscal year 2023, primarily due to decreased sales revenue and lower gross margin[71] Assets and Liabilities - Total assets decreased by 16.6% to RMB 304,700,000 from RMB 365,506,000 year-over-year[2] - Total liabilities increased by 3.4% to RMB 222,342,000 compared to RMB 215,091,000 in 2023[2] - Net asset value dropped by 45.2% to RMB 82,358,000 from RMB 150,415,000 in the previous year[2] - Current ratio decreased to 1.11 from 1.37 year-over-year[2] - Total non-current assets decreased from RMB 131,072 thousand in 2023 to RMB 93,494 thousand in 2024, a decline of approximately 28.7%[4] - Current assets decreased from RMB 234,434 thousand in 2023 to RMB 211,206 thousand in 2024, a decline of about 9.9%[4] - Total liabilities increased from RMB 170,265 thousand in 2023 to RMB 190,815 thousand in 2024, an increase of approximately 12.1%[4] - Net current assets decreased significantly from RMB 64,169 thousand in 2023 to RMB 20,391 thousand in 2024, a decline of about 68.3%[4] - Total equity decreased from RMB 150,415 thousand in 2023 to RMB 82,358 thousand in 2024, a decrease of approximately 45.3%[5] - Cash and cash equivalents dropped from RMB 48,683 thousand in 2023 to RMB 21,152 thousand in 2024, a decline of about 56.5%[4] Segment Performance - Retail segment revenue for the year ended December 31, 2024, was RMB 431,125 thousand, a decrease of 19.0% from RMB 532,389 thousand in 2023[18] - Wholesale distribution segment revenue for the year ended December 31, 2024, was RMB 161,816 thousand, an increase of 19.9% from RMB 135,020 thousand in 2023[18] - The retail segment reported a loss of RMB 59,925 thousand for the year ended December 31, 2024, compared to a loss of RMB 25,590 thousand in 2023[18] - The wholesale distribution segment reported a loss of RMB 4,333 thousand for the year ended December 31, 2024, compared to a profit of RMB 1,954 thousand in 2023[18] Operational Changes and Strategies - The company plans to apply new international financial reporting standards, which are not expected to have a significant impact on the group's performance and financial position[11] - The company plans to enhance revenue performance by launching "supply and marketing discount stores" and adjusting operations for loss-making stores[53] - The company aims to develop "24-hour AI smart unmanned stores," with 27 existing stores integrating cloud monitoring capabilities[53] - The company is expanding its online sales channels, including "Douyin Small Hour Delivery" and its own e-commerce platforms, to boost sales volume[54] - The company is committed to improving supply chain systems through direct sourcing and national joint procurement to enhance gross profit margins[54] - The company is exploring development opportunities outside Guangdong Province, including Hong Kong, leveraging favorable policies in Hainan Free Trade Port[55] - The company is focused on transforming its business model to integrate retail, wholesale, and online-offline fusion, aiming to become a leading supermarket enterprise in the Guangdong-Hong Kong-Macao Greater Bay Area[55] Governance and Compliance - The board is committed to high levels of corporate governance, which is essential for protecting shareholder interests and enhancing corporate value[92] - The company did not comply with Listing Rules 3.10(1), 3.21, 3.25, and 3.27A after the resignation of Mr. Wang Yilin as an independent non-executive director on October 26, 2023[93] - The company is actively seeking suitable candidates to fill vacancies and comply with listing regulations, expanding its search channels to various industry associations and individuals with diverse backgrounds and skills[94] - After Mr. Gao Jingyuan is appointed as an independent non-executive director on March 27, 2024, the number of independent non-executive directors will meet the minimum requirement of Listing Rule 3.10(1)[95] - The audit committee has reviewed the accounting standards and practices adopted by the group, and the financial statements for the year ending December 31, 2024, have been reviewed and deemed compliant with applicable accounting standards[97] Employee and Labor Relations - The group had a total of 784 employees, with 776 located in mainland China and 8 in Hong Kong[84] - The group maintains competitive salary levels for employees and conducts annual reviews based on relevant labor market and economic conditions[84] - There were no significant impacts on operations due to labor disputes during the fiscal year 2024[84]

顺客隆 Simple Kind life 中國順客隆控股有限公司 CHINA SHUN KE LONG HOLDINGS LIMITED (於開曼群島註冊成立的有限公司) 股份代號：974 24)供销AI牆 | 新浪网 | Great 放心度材 8生鲜公社 到家配送 2024 中期報告 目錄 公司資料 2 簡明綜合損益及其他全面收益表 3 簡明綜合財務狀況表 4 簡明綜合權益變動表 6 簡明綜合現金流量表 7 簡明綜合中期財務報表附註 8 管理層討論及分析 24 其他資料 32 8生鲜小科 到家配送 公司資料 董事 | --- | --- | |-----------------------|------------------------------------------| | | 中國主要營業地點 | | | 中國廣東省 | | 執行董事 | 佛山市順德區樂從鎮 | | 王仁剛先生 （主席） | 河濱北路 60 號 | | 王卉女士 （行政總裁） | 華樂大廈三樓 | | 非執行董事 | 香港主要營業地點 | | 杜璟女士 | 香港太古坊 | | | 英皇道 979 號 | | 獨立非執行董事 | 林肯 ...

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 告 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。 CHINA SHUN KE LONG HOLDINGS LIMITED 中國順客隆控股有限公司 （於 開 曼 群 島 註 冊 成 立 的 有 限 公 司） （股 份 代 號：974） 截至二零二四年六月三十日止六個月之中期業績公告 中國順客隆控股有限公司（「本公司」）董事會（「董事會」，及 董 事 會 成 員「董 事」） 欣然公佈本公司及其附屬公司（統 稱「本集團」）截至二零二四年六月三十日止 六 個 月 之 未 經 審 核 簡 明 綜 合 中 期 業 績。該 未 經 審 核 綜 合 業 績 已 經 本 公 司 審 核 委員會（「審核委員會」）審 閱。 | --- | --- | --- | --- | |------------|------------------------------------|---------------------- ...

Investment and Stakeholding - The company holds a 14.67% stake in Supply and Marketing Group Co., Ltd. through 11 wholly-owned subsidiaries[1] - An investment agreement was signed on January 3, 2024, for the purchase of 2.6 billion shares of Supply and Marketing Group[11] Financial Performance - Revenue for 2023 reached RMB 667,409 thousand, an increase of 4.3% compared to RMB 638,761 thousand in 2022[26] - Gross profit decreased to RMB 91,204 thousand, down 10.8% from RMB 102,207 thousand in the previous year[26] - The company reported a net loss of RMB 26,684 thousand for 2023, compared to a net loss of RMB 24,933 thousand in 2022, reflecting an increase in losses[26] - Operating cash flow before changes in working capital was RMB 15,922 thousand, a decrease of 39.2% from RMB 26,372 thousand in 2022[30] - The company reported a total comprehensive income of RMB 150,415,000 as of December 31, 2023, after accounting for a loss of RMB 26,754,000 during the year[46] Cash Flow and Liquidity - Total cash and cash equivalents at the end of 2023 were RMB 48,683 thousand, a decrease from RMB 48,972 thousand at the end of 2022[31] - The financing activities resulted in a net cash outflow of RMB 12,944 thousand, significantly reduced from RMB 94,708 thousand in 2022[31] - The company repaid bank loans amounting to RMB 8,000 thousand in 2023, a significant decrease from RMB 60,000 thousand in 2022[31] Inventory and Assets - The wholesale cash-generating unit has a carrying amount of RMB 1,467,000 as of December 31, 2023[19] - The retail cash-generating unit has a carrying amount of RMB 85,614,000 as of December 31, 2023[19] - The company experienced a decrease in inventory by RMB 33,347 thousand, compared to an increase of RMB 4,729 thousand in the previous year[30] - The company has not recognized any impairment losses for the wholesale cash-generating unit as of December 31, 2023[19] Revenue Recognition - The company recognizes revenue based on the transfer of control of goods or services to customers, reflecting the expected consideration for those goods or services[61] - The company operates retail and wholesale distribution, confirming revenue at the point of sale when control is transferred to retail customers[65] - The company recognizes revenue from sales to wholesalers or franchisees upon the transfer of product control, typically at the time of delivery[66] - The company earns commission income from sales made by counter suppliers in retail stores, with total amounts collected being transferred to suppliers after deducting commissions and expenses[67] - The group recognizes revenue from retail sales to customers when the ownership of goods is transferred, typically upon delivery, with payment terms ranging from 0 to 180 days[102] Financial Reporting and Standards - The financial statements are prepared in accordance with historical cost conventions, with amounts rounded to the nearest thousand RMB[56] - The company has adopted new international financial reporting standards, which may impact future financial reporting[54] - The company’s financial statements are presented in RMB, reflecting the primary economic environment of its major subsidiaries in China[51] - The board approved the financial statements on March 27, 2024, indicating a timely review and authorization process[45] Risk Management and Audit - The company has identified risks related to fraud and errors that could lead to significant misstatements in the financial statements[41] - The company has communicated its independence and any relationships that could affect its independence to the audit committee[42] - The audit report emphasizes the importance of management's judgments in determining the recoverable amounts of cash-generating units[18] Lease and Asset Management - Lease liabilities are measured at the present value of unpaid lease payments, discounted using the implicit interest rate or incremental borrowing rate if the implicit rate is not readily determinable[69] - The group applies International Financial Reporting Standard 16 for leases, recognizing right-of-use assets and corresponding lease liabilities for all leases except short-term leases and low-value asset leases[104] - The group assesses impairment of right-of-use assets according to International Accounting Standard 36, recognizing any identified impairment losses[109] Taxation and Deferred Tax - Current tax liabilities are calculated based on taxable profits for the year, differing from pre-tax losses due to other taxable or deductible items[121] - Deferred tax assets and liabilities are measured based on applicable tax rates expected to apply when the liabilities are settled or the assets are realized[122] - The group recognizes deferred tax assets and liabilities based on temporary differences between the carrying amounts of assets and liabilities and their tax bases[145] Credit Risk and Impairment - The group recognizes expected credit losses for trade receivables, lease receivables, and receivables from related companies based on historical loss experience and adjustments for specific debtor factors and economic conditions[157] - The assessment of significant increases in credit risk considers quantitative and qualitative data, including past experience and forward-looking information related to the debtor's industry[159] - Evidence of credit impairment includes contract violations, potential bankruptcy, or severe financial difficulties of the debtor[179] Franchise and Business Operations - The group has established a franchise program allowing interested parties to apply for franchise retail stores, contributing to wholesale distribution revenue[197] - The success of the business is heavily dependent on accurately predicting and timely adjusting the product mix to meet changing customer preferences influenced by various factors[189]

Financial Performance - For the year ended December 31, 2023, the company reported revenue of RMB 667,409 thousand, an increase of 4.5% from RMB 638,761 thousand in 2022[3]. - The gross profit for the same period was RMB 91,204 thousand, down 10.8% from RMB 102,207 thousand in 2022[3]. - The company recorded an operating loss of RMB 22,393 thousand, compared to an operating profit of RMB 4,500 thousand in the previous year[3]. - The company reported a basic and diluted loss per share of RMB (0.09), unchanged from the previous year[10]. - The company reported a total revenue of RMB 638,761 thousand for the year ended December 31, 2023, with a pre-tax loss of RMB (24,904) thousand[47]. - The group’s pre-tax loss for the year was RMB 27,456,000, compared to a loss of RMB 24,904,000 in the previous year, an increase of 10.2%[77]. - The group reported a comprehensive loss attributable to equity shareholders of approximately RMB 26.4 million, an increase in loss of about RMB 2.3 million or 9.5% compared to fiscal year 2022[122]. - The group incurred a net loss attributable to equity shareholders of approximately RMB 26.8 million, an increase in loss of about RMB 1.8 million or 7% compared to the previous fiscal year[170]. Assets and Liabilities - The total assets as of December 31, 2023, were RMB 365,506 thousand, a decrease of 6.2% from RMB 389,819 thousand in 2022[3]. - The total liabilities amounted to RMB 215,091 thousand, which is a slight increase of 1.0% from RMB 213,059 thousand in 2022[3]. - The net asset value decreased by 14.9% to RMB 150,415 thousand from RMB 176,760 thousand in 2022[3]. - The group’s total assets were RMB 375,477 thousand, which includes other corporate assets of RMB 14,342 thousand[33]. - The total equity decreased to RMB 150.4 million in 2023 from RMB 176.8 million in 2022, resulting in a debt-to-equity ratio of 18.6%, up from 4.5%[179]. Revenue Segmentation - The reported revenue from the wholesale distribution segment was RMB 667,409 thousand, with external customer revenue of RMB 532,389 thousand[31]. - The reported loss for the wholesale distribution segment was RMB (25,590) thousand, while the overall group reported a pre-tax loss of RMB (27,456) thousand[31]. - Retail sales under general retail operations amounted to RMB 510,824,000, slightly up from RMB 504,123,000 in the previous year[50]. - Wholesale distribution revenue increased significantly to RMB 135,020,000 from RMB 107,056,000, marking a growth of 26.1%[50]. - In the fiscal year 2023, the group's retail business generated revenue of approximately RMB 532.4 million, an increase of about RMB 0.7 million or 0.1% compared to fiscal year 2022, primarily due to the addition of new procurement and distribution business[135]. Operational Strategies - The company plans to enhance its operational strategies based on segment performance evaluations, focusing on resource allocation and performance assessment[44]. - The company aims to expand its "Shun Ke Long Fresh Community" stores and enhance profitability through the introduction of 24-hour AI smart unmanned stores[109]. - The company plans to utilize its supply chain and brand advantages to increase the number of franchise stores while managing risks effectively[109]. - The group aims to expand its retail network and enhance its influence in the Guangdong-Hong Kong-Macao Greater Bay Area through a multi-channel sales model combining retail, wholesale, and online-offline integration[128]. - The group plans to expand its business in the Guangdong-Hong Kong-Macao Greater Bay Area and develop 24-hour AI intelligent unmanned stores[111]. Employee and Governance - The group reported a total of RMB 62,002,000 in employee benefits expenses, up from RMB 60,177,000, an increase of 3.0%[72]. - The company has maintained a competitive salary level for employees and has not faced significant difficulties in hiring senior staff[182]. - The company has actively sought suitable candidates to fill vacancies and comply with listing rules, expanding its search channels[161]. - The company did not comply with several listing rules regarding the composition of the board and committees after the resignation of Mr. Wang Yilin as an independent non-executive director on October 26, 2023[197]. - The company has adhered to all corporate governance code provisions for the fiscal year ending December 31, 2023, except for the aforementioned issues[198]. Financial Guidance and Future Outlook - The company has not provided specific guidance for future performance or new product developments in the conference call[3]. - There were no mentions of market expansion or acquisitions in the earnings call summary[3]. - The company has not anticipated any significant impact on its performance and financial position from the application of the revised International Financial Reporting Standards[40]. - The company has not made any significant investments or acquisitions during the fiscal year 2023[175]. Cash Flow and Financing - As of December 31, 2023, the group had cash and cash equivalents of approximately RMB 48.7 million, compared to approximately RMB 49.0 million as of December 31, 2022[146]. - The company's bank loans classified as current liabilities increased significantly to RMB 28,000 thousand in 2023 from RMB 8,000 thousand in 2022[34]. - The group’s financing costs were approximately RMB 4.4 million, a decrease of about RMB 0.2 million or 5.1% from the previous year, primarily due to reduced interest expenses on short-term borrowings[168]. - The company plans to utilize part of the unallocated proceeds from the global offering for renovating existing retail stores to enhance competitiveness in Guangdong Province[185]. Market Conditions and Risks - The group identified risks related to intense competition in the retail sector and the ability to expand its business network in the Greater Bay Area[112]. - The group is facing intense competition from other supermarket operators and online retailers, which has compressed profit margins due to rising operating costs[132]. - The group has adopted a "new retail" approach, focusing on online and offline sales channels to stabilize revenue and expand innovative business[128].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 323,177 thousand, an increase of 3.4% compared to RMB 313,064 thousand for the same period in 2022[16] - Gross profit for the same period was RMB 46,064 thousand, down 7.3% from RMB 49,706 thousand in 2022[16] - The company reported a loss before tax of RMB 12,747 thousand, an improvement from a loss of RMB 14,276 thousand in the previous year[16] - The total comprehensive income for the period was RMB 164,310,000, compared to RMB 200,848,000 for the same period in 2022, representing a decline of 18.1%[32] - The company reported a total revenue of RMB 175,506,000 for the period, down from RMB 199,751,000 in the previous year, marking a 12.1% decrease[32] - The group reported a pre-tax loss of RMB (12,747) thousand for the period[40] - The net loss attributable to the owners of the group was approximately RMB 12.6 million, a decrease of about RMB 1.7 million compared to the same period last year, primarily due to reduced sales and distribution costs, administrative expenses, and financing costs[119] - The group reported a net loss attributable to owners of approximately RMB 12.6 million, a reduction in loss of RMB 1.7 million or 11.7% compared to the same period in 2022[168] Assets and Liabilities - Total assets decreased to RMB 216,873 thousand as of June 30, 2023, compared to RMB 257,233 thousand at the end of 2022[17] - Current liabilities decreased to RMB 148,120 thousand from RMB 172,976 thousand in the previous year[17] - The net asset value as of June 30, 2023, was RMB 164,310 thousand, down from RMB 176,760 thousand at the end of 2022[18] - The company’s cash and cash equivalents were RMB 31,438 thousand, a decrease from RMB 48,972 thousand at the end of 2022[17] - The carrying value of investment properties pledged to banks was RMB 8,861,000 as of June 30, 2023, down from RMB 9,024,000 as of December 31, 2022[97] - The group had current assets of approximately RMB 68.8 million, down from RMB 84.3 million as of December 31, 2022[173] - The group's bank borrowings amounted to RMB 8.0 million as of June 30, 2023, with a collateral value of approximately RMB 8.9 million for certain investment properties[191] Cash Flow - For the six months ended June 30, 2023, the net cash flow from operating activities was RMB 6,526,000, a decrease of 76.7% compared to RMB 27,981,000 for the same period in 2022[32] - The net cash used in investing activities was RMB 1,415,000, compared to RMB 1,994,000 in the previous year, indicating a reduction of 29.1%[32] - The net cash used in financing activities was RMB 22,996,000, significantly lower than RMB 79,784,000 in the prior year, reflecting a decrease of 71.2%[32] - As of June 30, 2023, cash and cash equivalents decreased to RMB 31,438,000 from RMB 50,401,000 at the end of June 2022, a reduction of 37.6%[32] Operational Efficiency and Strategy - The company plans to enhance its product offerings and expand its market presence in the coming quarters[1] - The management is focused on improving operational efficiency and reducing costs to mitigate losses[1] - The company plans to continue its market expansion strategy, focusing on enhancing its service offerings and operational efficiency[21] - The company is actively pursuing new product development initiatives to drive future growth and innovation[21] - The group plans to expand its franchise store numbers through brand and product output, and management output, leveraging supply chain and brand advantages[120] - The group aims to continue upgrading stores and optimizing the shopping experience, as well as simplifying and upgrading the ordering system to enhance operational efficiency[120] - The group will actively develop its own e-commerce platform "Shun Ke Long You Xuan" and expand its online presence through live streaming on platforms like Douyin[120] Employee and Operational Metrics - Employee benefits expenses totaled RMB 31,947,000 for the six months ended June 30, 2023, compared to RMB 35,570,000 in 2022, reflecting a reduction of 10.5%[67] - The number of retail stores decreased from 67 as of December 31, 2022, to 63 as of June 30, 2023, representing a decline of approximately 6.0%[115] - The group had a total of 1,020 employees as of June 30, 2023, with 1,010 located in mainland China and 10 in Hong Kong and Macau[194] Revenue Segmentation - Total revenue for the retail segment reached RMB 255,292 thousand, while wholesale distribution generated RMB 67,885 thousand, leading to a total of RMB 323,177 thousand[40] - Revenue from external customers for the retail segment was RMB 265,676 thousand, and wholesale distribution contributed RMB 47,388 thousand, totaling RMB 313,064 thousand[41] - Revenue from general retail sales under the retail segment was RMB 158,856 thousand, while bulk sales generated RMB 94,088 thousand[45] - The retail store business generated revenue of approximately RMB 255.3 million, a decrease of about RMB 10.4 million or 3.9% compared to the same period last year, mainly due to the closure of one store and the conversion of five long-term loss-making stores to franchise operations[141] - The group's wholesale distribution revenue for the period was approximately RMB 67.9 million, an increase of RMB 20.5 million or 43.3% compared to the same period in 2022[161] Other Financial Metrics - Interest expenses for bank loans were RMB 223 thousand, and for lease liabilities, they were RMB 2,255 thousand, totaling RMB 2,478 thousand[49] - The gross profit margin for the period was approximately 14.3%, a decrease of about 1.6% from 15.9% in the same period last year[162] - Other operating income for the period was approximately RMB 13.4 million, a decrease of RMB 2.3 million or 14.4% compared to the same period in 2022[163] - Sales and distribution costs were approximately RMB 60.3 million, a decrease of RMB 6.7 million or 10% compared to the same period in 2022[164] - Administrative expenses for the period were approximately RMB 9.4 million, a decrease of RMB 0.4 million or 4.3% compared to the same period in 2022[165] Shareholder Information - Major shareholders hold a total of 204,558,317 shares, representing 70.42% equity interest[198] - The company has full ownership of Hainan Supply and Marketing Group Holdings Co., Ltd., which in turn fully owns Hainan Supply and Marketing Chain Network Technology Co., Ltd.[199] - Hainan Supply and Marketing Chain Network Technology Co., Ltd. fully owns Green Industry (Hong Kong) Co., Ltd.[199] - Green Industry (Hong Kong) Co., Ltd. fully owns Supply and Marketing International Holdings Limited[199] - The special service trust holds all shares of Hainan HNA No. 2 Trust Management Co., Ltd.[198]

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。 CHINA SHUN KE LONG HOLDINGS LIMITED 中國順客隆控股有限公司 （於開曼群島註冊成立的有限公司） 974 （股份代號： ） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 公 告 中國順客隆控股有限公司（「本公司」）董事會（「董事會」，及董事會成員「董事」） 欣然公佈本公司及其附屬公司（統稱「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。該未經審核綜合業績已經本公司審核 委員會（「審核委員會」）審閱。 財務摘要 截至六月三十日止六個月 二零二三年 二零二二年 % 人民幣千元 人民幣千元 323,177 313,064 3.2% 收益 46,064 49,706 -7.3% ...

Financial Performance - The company's revenue for the fiscal year 2022 was approximately RMB 638.8 million, a decrease of about RMB 102.9 million or 13.9% compared to the previous year[73]. - The net loss attributable to equity shareholders for the fiscal year 2022 was approximately RMB 25.0 million, a reduction in loss of about RMB 13.0 million compared to the previous year[73]. - The group's revenue for the fiscal year ending December 31, 2022, was approximately RMB 638.8 million, a decrease of about RMB 102.9 million or 13.9% compared to the fiscal year ending December 31, 2021[88]. - The net loss attributable to equity shareholders for the fiscal year 2022 was approximately RMB 25.0 million, a reduction in loss of about RMB 13.0 million compared to the previous fiscal year, primarily due to decreased management and distribution costs[88]. - The company reported non-current assets of RMB 132.586 million in 2022, down from RMB 170.933 million in 2021[185]. - Current assets totaled RMB 257.233 million in 2022, compared to RMB 310.652 million in 2021[185]. - The company's cash and cash equivalents decreased to RMB 48.972 million in 2022 from RMB 103.343 million in 2021[185]. - The company’s total liabilities decreased from RMB 224.702 million in 2021 to RMB 172.976 million in 2022[185]. - The company’s net asset value was RMB 176.760 million in 2022, down from RMB 200.848 million in 2021[185]. Corporate Governance - The company has established a compensation committee consisting of three members, including the chairman, Mr. Wang Yilin, and two independent non-executive directors[22]. - The company has adopted a nomination policy that includes transparent and formal standards for selecting directors, focusing on academic background, professional qualifications, and industry experience[25]. - The company has implemented a standard code of conduct for directors regarding securities trading, ensuring compliance with regulations[11]. - The company has arranged appropriate liability insurance for directors and senior personnel against potential legal claims arising from company activities[14]. - The company encourages directors and senior management to participate in relevant training courses to enhance their knowledge and skills[17]. - The company’s board of directors is required to rotate every three years, with new directors subject to re-election at the next shareholders' meeting[18]. - The audit committee is responsible for providing independent opinions on the effectiveness of financial reporting procedures, internal controls, and risk management systems[20]. - The company has appointed Mr. Zhao Xiaofei as the Chief Financial Officer since February 2022, bringing extensive experience in financial management[9]. - The company has a total of three executive directors, with Ms. Wang Hui appointed as an executive director in February 2022[12]. - The board of directors has reviewed the structure, composition, and diversity of the board, assessing the independence of non-executive directors[28]. - The company has received confirmations of independence from all independent non-executive directors as per listing rules[106]. - The company’s independent non-executive directors have confirmed their independence according to the relevant listing rules[106]. - The audit committee reviewed the financial statements and discussed accounting policies and risk management with senior management[141]. - The company maintained the public float required by listing rules as of December 31, 2022[140]. - There were no significant events requiring disclosure after December 31, 2022, up to the date of the report[142]. - The annual general meeting is scheduled for June 6, 2023, with a suspension of share transfer registration from June 1 to June 6, 2023[143]. Business Strategy and Operations - The company operates supermarket chains primarily in Guangdong Province, China, focusing on both retail and wholesale distribution channels[57]. - The company has faced increased competition from the rise of online retail platforms, which has affected its retail store expansion plans[54]. - The company plans to repurpose part of the funds originally allocated for opening new retail stores to renovate existing stores, enhancing competitiveness in Guangdong Province[62]. - The company has decided to slow down the pace of opening new retail stores due to the recent slowdown in China's economic growth[62]. - Management has noted that the retail industry is experiencing significant changes in consumer habits and business models post-COVID-19, necessitating a shift towards online platforms and enhanced in-store experiences[73]. - The group aims to develop its own e-commerce platform "Shun Ke Long You Xuan" and enhance online sales through continuous live streaming on platforms like Douyin[76]. - The company is committed to upgrading stores and optimizing the shopping experience through category structure adjustments[76]. - The group has implemented cost control measures, significantly reducing expenses related to rent, labor, bank loan interest, and utilities[75]. - The company is focusing on the Guangdong-Hong Kong-Macao Greater Bay Area to become a leading supermarket enterprise in the region[76]. - The group is actively exploring and expanding its international wholesale trade business, leveraging policies from the Hainan Free Trade Port and the Greater Bay Area[76]. - The company has successfully adopted new sales methods such as live streaming to align with consumer habits and enhance online sales[75]. - The group has opened 12 "Shun Ke Long Fresh Community" stores, highlighting growth in fresh product sales[75]. - The company plans to expand its franchise store count by leveraging its supply chain and brand advantages, focusing on brand output and management output[76]. - The group has exclusive distribution rights for 21 brands in Foshan, Jiangmen, and Zhaoqing, collaborating with over 483 suppliers[93]. - The group aims to achieve a balanced budget amidst a challenging retail environment, focusing on the successful model of the "Shun Ke Long Fresh Community"[93]. - The group plans to enhance its online platform and community marketing through its self-operated platform "Shun Ke Long You Xuan" and partnerships with major e-commerce platforms[93]. - The group has set annual caps for the goods procurement agreement with Gongxiao Daji Group at RMB 60 million, RMB 80 million, and RMB 100 million for the next three years[101]. - The group emphasizes the importance of supply chain management in the fresh produce sector, viewing it as a key competitive advantage[93]. - The group will maintain a high level of risk awareness to respond to any unexpected events following the COVID-19 pandemic[91]. - The group is committed to expanding its geographical sales channels across China to meet the growing demand for its products[101]. - The company is expanding its sales channels to online platforms as part of its growth strategy[124]. Challenges and Risks - The company faced a fine of RMB 700,000 due to non-disclosure of certain non-operating related transactions and guarantees in financial reports from 2017 to 2020[4]. - The company is facing challenges due to high employee turnover rates, particularly among younger workers, which may adversely affect business operations and expansion plans[114]. - The company is facing intense competition in the retail sector, which may impact future growth and profitability[182]. - The company’s ability to expand its retail network in the Greater Bay Area is contingent on various risks, including finding suitable locations and securing government approvals[182]. - Changes in customer preferences in China are rapid and influenced by multiple factors, which may affect the company's operational performance if not addressed[183]. Shareholder Information - The company has a significant indirect shareholding of approximately 70.42% held by the controlling shareholder through Supply Chain International Holdings Limited[118]. - The major shareholder, Supply and Marketing Group Co., Ltd., holds approximately 70.42% of the company's issued shares[127]. - The main shareholders include Everbright Xinglong Trust Co., Ltd. and CITIC Trust Co., Ltd., each holding 204,558,317 shares, representing 70.42%[129]. - Infini Capital Management holds 27,600,000 shares, accounting for 9.50% of the total equity[129]. - Golden Prime Holdings Limited owns 25,988,000 shares, which is 8.95% of the total equity[129]. - Hainan HNA No. 2 Trust holds a 14.67% stake in Supply and Marketing Group Co., Ltd. through 11 wholly-owned subsidiaries[130]. - The company confirms that there were no significant transactions or contracts with directors or related entities as of December 31, 2022[132]. Audit and Compliance - The company has not established an internal audit function but has engaged an independent consultant to assess its internal controls and risk management systems[32]. - The company has adopted a share option scheme as a long-term incentive plan for employees[157]. - The audit firm has been engaged since December 29, 2017, and will be proposed for reappointment at the upcoming annual general meeting[160]. - There were no transactions under the product sales agreement for the fiscal year 2022, which requires annual review by independent non-executive directors and auditors[122]. - The pricing for products sold to the supply chain group will be based on a cost-plus model, with markup rates typically ranging from 2% to 5%[121]. - The procurement amount from the largest supplier accounted for 9.13% of total purchases, while the top five suppliers accounted for 22.84%[161]. - The revenue contribution from the top five customers was 4.87% for the year ended December 31, 2022[161]. - The impairment assessment of cash-generating units is identified as a key audit matter due to significant management judgment involved[170]. - As of December 31, 2022, the wholesale cash-generating unit has a carrying value of RMB 2,343,000, with an impairment loss recognized of RMB 403,000[147]. - The retail cash-generating unit has a carrying value of RMB 79,670,000, with no impairment loss recognized for the year ended December 31, 2022[147]. - Trade receivables amounted to RMB 28,660,000 as of December 31, 2022, after deducting cumulative impairment losses of RMB 608,000[171].

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。 CHINA SHUN KE LONG HOLDINGS LIMITED 中國順客隆控股有限公司 （於開曼群島註冊成立之有限公司） 974 （股份代號： ） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 之 年 度 業 績 公 告 中國順客隆控股有限公司（「本公司」）董事會（「董事會」，及董事會成員（「董事」）） 欣然宣佈本公司及其附屬公司（「本集團」）截至二零二二年十二月三十一日止 年度之經審核綜合業績以及截至二零二一年十二月三十一日止年度的比較數 字如下： 年度業績摘要 截至十二月三十一日止年度 二零二二年 二零二一年 變動 人民幣千元 人民幣千元 638,761 741,635 -13.9% 收益 102,207 107,843 -5.2% 毛利 (18,697) (27,273) -31.4% 經營虧損 (24,933) (38,257) -34.8% 年內虧損 ...