Revenue Performance - In FY2020, the provision of interior design and building engineering services generated revenue of approximately RMB241.9 million, a decrease of approximately 34.8% from RMB371.2 million in FY2019[14]. - The sale and distribution of merchandise recorded an overall revenue increase of approximately RMB2.5 million or approximately 1.2%, from RMB202.5 million in FY2019 to RMB205.0 million in FY2020[19]. - Revenue from the sale of building materials increased by approximately 16.7% in FY2020[19]. - New revenue stream of approximately RMB8.6 million was generated from online distribution and electronic marketing due to newly acquired subsidiaries during the Reporting Period[19]. - The provision of interior design and building engineering services accounted for 54% of total revenue in FY2020, down from 65% in FY2019, while the sale and distribution of merchandise accounted for 46%, up from 35%[13]. - Total revenue decreased by approximately RMB126.8 million or approximately 22.1% from approximately RMB573.7 million for FY2019 to approximately RMB446.9 million for FY2020[49]. - Revenue from the sale and distribution of goods increased by approximately RMB2.5 million or 1.2% to approximately RMB205.0 million in FY2020, compared to approximately RMB202.5 million in FY2019, with a notable 16.7% increase in revenue from building materials[21]. - Revenue from the sale of home improvement materials decreased by approximately RMB24.1 million or approximately 72.8% from approximately RMB33.1 million for FY2019 to approximately RMB9.0 million for FY2020[53]. Profitability and Cost Management - The gross profit from the provision of interior design and building engineering services decreased by approximately RMB11.4 million or approximately 20.8%, from RMB54.9 million in FY2019 to RMB43.5 million in FY2020, while the gross profit margin increased from approximately 14.8% to 18.0%[14]. - The Group recorded a consolidated net profit of approximately RMB10.5 million for FY2020, a decrease of approximately RMB2.6 million or 19.8% compared to FY2019's profit of approximately RMB13.1 million[20]. - The overall gross profit decreased by approximately RMB20.8 million or approximately 27.0% from approximately RMB76.9 million for FY2019 to approximately RMB56.1 million for FY2020[69]. - The Group's management implemented successful cost control measures, which helped maintain a healthy net profit despite the decline in revenue due to COVID-19[24]. - Selling expenses decreased by approximately RMB1.9 million or approximately 14.5% from approximately RMB13.1 million for FY2019 to approximately RMB11.2 million for the Reporting Period[74]. - Administrative expenses increased by approximately RMB3.3 million or approximately 15.4% from approximately RMB21.4 million for FY2019 to approximately RMB24.7 million for the Reporting Period[75]. Strategic Initiatives and Future Outlook - The management team focused on recovering revenue and net profits affected by the COVID-19 epidemic throughout FY2020[13]. - The management team actively sought new business opportunities to foster existing businesses during the second half of 2020[13]. - The Group's efforts in the second half of 2020 led to a recovery in revenue and gross profit from merchandise sales despite earlier declines[13]. - The Group plans to expand its retail and domestic interior design market in the Guangdong-Hong Kong-Macao Greater Bay Area, having established offices in Guangzhou and Shenzhen in 2020[29]. - The Group is considering relocating its PRC headquarters from Meizhou to Shenzhen by the end of 2021 to enhance project tender opportunities in the Greater Bay Area[29]. - Investment in online distribution and e-marketing channels is a priority to improve service capabilities and expand market share in the sale and distribution of building materials and home improvement products[30]. - The Group is focusing on developing a full-scale home design and renovation platform to provide comprehensive solutions from design to post-renovation services, enhancing customer experience[35]. - The Group aims to invest in health management platform projects to create a "Healthy Household" market, integrating healthcare elements into household projects[34]. - The Group is actively seeking cooperation with external strategic investors to facilitate rapid growth and development[38]. - Despite challenges from COVID-19, the Group will continue to seek new investment opportunities to enhance profitability and maximize shareholder returns[39]. Management and Governance - The Company has a strong management team with diverse backgrounds in finance, engineering, and government administration, enhancing its operational capabilities[148]. - The management team emphasizes internal control and risk management to ensure sustainable growth and compliance with regulations[150]. - The Company is committed to innovation in product development, focusing on green and sustainable building materials[151]. - The leadership team is committed to driving growth through effective management and strategic initiatives[169][179]. - The company emphasizes cross-border mergers and acquisitions as part of its growth strategy, leveraging the expertise of its management team[169]. Risks and Challenges - The Group's business growth is significantly dependent on maintaining and expanding sales to key customers, with potential risks associated with the loss of these customers[132]. - The Group's operations are concentrated in Meizhou, Guangdong Province, making it vulnerable to adverse economic or market developments in this region[132]. - The Group has identified key risks and uncertainties that could materially affect its financial condition and operational results[131]. - Financial risks include exposure to currency fluctuations, interest rates, credit, and liquidity issues[139]. - The Group faces operational risks related to its relationships with suppliers, which could impact business operations if there are adverse changes or delays in product delivery[137]. Corporate Structure and Financial Position - As of 31 December 2020, the Group had net current assets of approximately RMB617.0 million, compared to approximately RMB419.3 million as of 31 December 2019[84]. - The Group completed the acquisition of Sino Legacy Investments Limited on 26 August 2020, which is engaged in online distribution and electronic marketing services in the PRC[97]. - The financial results of Sino Legacy and its subsidiaries have been consolidated into the Group's financial statements for FY 2020[101]. - The maturity date of the outstanding convertible bonds was extended from December 24, 2020, to June 24, 2021, allowing for greater financial flexibility[109]. - The Group has no significant contingent liabilities or outstanding capital commitments as of December 31, 2020[117][118]. Board Composition and Corporate Governance - The company has a strong board composition with independent non-executive directors who have significant industry experience and qualifications[163]. - The directors' qualifications and experience align with the company's commitment to maintaining high standards of corporate governance and compliance[161]. - The company emphasizes the importance of independent oversight in its governance structure, ensuring accountability and transparency[158]. - Jiyi Holdings Limited's independent directors bring extensive experience in finance, auditing, and legal matters, enhancing corporate governance and compliance[160].

Revenue Performance - Total revenue decreased by approximately RMB120.9 million or approximately 48.6% from approximately RMB249.0 million in FY2019 to approximately RMB128.1 million in FY2020[23] - Revenue from sale and distribution of merchandise decreased by approximately RMB56.4 million or approximately 67.2% from approximately RMB83.9 million in FY2019 to approximately RMB27.5 million in FY2020[24] - Revenue from building materials sales decreased by approximately RMB53.5 million, home improvement materials by RMB2.4 million, and furnishings by RMB0.5 million during the Reporting Period[24] - Revenue from the provision of interior design and engineering services decreased by approximately RMB64.5 million or approximately 39.1% from approximately RMB165.1 million in FY2019 to approximately RMB100.6 million in FY2020[21] - Revenue from contracts with customers for the six months ended June 30, 2020, was RMB 128,078,000, a decrease of 48.5% compared to RMB 248,985,000 for the same period in 2019[97] - Revenue from external customers for the provision of interior design and engineering services was RMB 100,579,000 in 2020, down from RMB 165,061,000 in 2019, a decrease of about 39%[146] - Revenue from the sale and distribution of merchandise was RMB 27,499,000, down 67.3% from RMB 83,924,000 in the prior year[162] - The revenue from building materials was RMB 16,334,000, a significant decrease of 76.6% from RMB 69,814,000 in the previous year[162] - The revenue from home improvement materials was RMB 6,930,000, down 26.0% from RMB 9,352,000 in the same period of 2019[162] Financial Performance - The Group reported a loss of approximately RMB18.7 million for the Reporting Period compared to a profit of approximately RMB8.6 million for the Prior Period[46] - The overall gross profit decreased by approximately RMB25.4 million or approximately 73.4% from approximately RMB34.6 million for the Prior Period to approximately RMB9.2 million for the Reporting Period[36] - The overall gross profit margin decreased from approximately 13.9% for the Prior Period to approximately 7.2% for the Reporting Period[36] - The operating loss for the six months ended June 30, 2020, was RMB 8,054,000, compared to an operating profit of RMB 17,050,000 in 2019[97] - The net loss attributable to equity holders for the period was RMB 18,651,000, compared to a profit of RMB 8,613,000 in the same period of 2019[97] - Basic loss per share was RMB (2.70) cents for the six months ended June 30, 2020, down from earnings of RMB 1.25 cents in 2019[184] Expenses and Costs - Selling expenses dropped by approximately RMB1.0 million or approximately 17.2% to approximately RMB4.8 million for the Reporting Period[43] - Administrative expenses decreased by approximately RMB3.0 million or approximately 23.8% to approximately RMB9.5 million for the Reporting Period[44] - Total staff costs for the reporting period were approximately RMB 4.6 million, a decrease from RMB 4.9 million in FY2019[88] - Finance costs increased significantly to RMB 11,324,000 in 2020 from RMB 4,349,000 in 2019, marking an increase of about 161%[154] Cash Flow and Liquidity - The Group had total cash and bank balances of approximately RMB15.5 million as of June 30, 2020, down from RMB24.2 million as of December 31, 2019, primarily due to net cash used in operating activities of approximately RMB32.2 million[68] - Cash and cash equivalents decreased to RMB 15,467,000 from RMB 24,209,000, a decline of 36.1%[106] - The company reported a net cash generated from financing activities of RMB 30,024,000 for the six months ended June 30, 2020, down from RMB 92,353,000 in the same period of 2019[112] - The company had cash flows from operations of RMB (41,298,000) for the six months ended June 30, 2020, compared to RMB (87,269,000) in the same period of 2019, showing an improvement in operational cash flow[112] Assets and Liabilities - The Group's net current assets were approximately RMB407.2 million as of June 30, 2020, compared to RMB419.3 million as of December 31, 2019[69] - Total assets as of June 30, 2020, increased to RMB 933,024,000 from RMB 929,930,000 as of December 31, 2019, reflecting a growth of 0.1%[106] - Total liabilities rose to RMB 415,496,000 from RMB 394,368,000, an increase of 5.4%[106] - The gearing ratio increased to 46.2% as of June 30, 2020, compared to 38.3% at the end of 2019[82] - The net debt to equity ratio rose to 43.2% as of June 30, 2020, from 33.7% at the end of 2019[82] Business Environment and Strategy - The decline in performance was mainly due to the outbreak of COVID-19 and the Prevention and Control Measures imposed by local governments in the PRC[25] - The Group's performance was significantly impacted by the closure of construction sites under the Prevention and Control Measures[23] - The business environment is expected to remain unstable and challenging due to the ongoing impact of COVID-19 and related control measures[52] - The Group plans to expand its retail and domestic interior design market in the Guangdong-Hong Kong-Macao Greater Bay Area[53] - The Group aims to build online distribution and e-marketing channels in addition to traditional retail and wholesale distribution channels[53] - The Group is actively seeking new investment opportunities to enhance profitability and maximize shareholder returns despite challenges from COVID-19[67] Acquisitions and Investments - The Group completed the acquisition of Sino Legacy Investments Limited on August 26, 2020, aiming to enhance management efficiency in home decoration businesses[59] - The acquisition of Sino Legacy is expected to diversify sales and distribution channels, with Xinjiale specializing in online distribution and e-marketing activities[60] - The Group is investing in the development of a full-scale home design and renovation platform to provide one-stop solutions for customers[65] Employee and Shareholder Information - The Group had a total of 127 employees as of June 30, 2020, down from 144 employees a year earlier[88] - The company did not recommend any interim dividend for the six months ended June 30, 2020, consistent with the previous year[188]

Revenue and Profit Performance - In FY2019, the provision of interior design and engineering services accounted for 65% of total revenue, up from 52% in FY2018[15] - Revenue from interior design and building engineering services increased by approximately RMB59.8 million or 19.2%, from approximately RMB311.4 million in FY2018 to approximately RMB371.2 million in FY2019[16] - Gross profit from the interior design and building engineering services segment rose by approximately RMB22.3 million or 68.4%, from approximately RMB32.6 million in FY2018 to approximately RMB54.9 million in FY2019[16] - The gross profit margin for this segment increased from approximately 10.5% in FY2018 to approximately 14.8% in FY2019[16] - The Group recorded a consolidated net profit of approximately RMB13.1 million for FY2019, representing an increase of approximately RMB0.8 million or 6.3% compared to FY2018[21] - The increase in net profit was primarily due to the increase in gross profit from interior design services and a decrease in distribution and selling expenses[21] - Overall net profit for FY2019 was approximately RMB13.1 million, an increase of approximately RMB0.8 million or approximately 6.3% compared to RMB12.3 million for FY2018[42] - Overall gross profit increased by approximately RMB20.9 million or approximately 37.4% from approximately RMB56.0 million for FY2018 to approximately RMB76.9 million for FY2019[58] Revenue Decline in Merchandise - Revenue from the sale and distribution of merchandise decreased by approximately RMB85.6 million or 29.7%, from approximately RMB288.1 million in FY2018 to approximately RMB202.5 million in FY2019[20] - Revenue from building materials and furnishing products decreased by approximately 38.3% and 14.9% respectively, while revenue from home improvement materials increased by approximately RMB12.3 million or 59.2%[20] - Revenue from building materials decreased by approximately RMB95.1 million or approximately 38.3% from approximately RMB248.2 million for FY2018 to approximately RMB153.1 million for FY2019[44] - Revenue from the sale of home improvement materials increased by approximately RMB12.3 million or approximately 59.2% from approximately RMB20.8 million for FY2018 to approximately RMB33.1 million for FY2019[40] Strategic Focus and Development - The strategic focus shift from merchandise sales to interior design services contributed to stable growth in gross and net profits despite a slight overall revenue decrease[15] - The Group is committed to developing its strategic footprint in the Guangdong-Hong Kong-Zhuhai-Macao Greater Bay Area, incorporating a new subsidiary in August 2019[26] - The Group is investing in the development of a full-scale home design and renovation platform to enhance customer experience[30] - The Group is actively seeking opportunities for more EPC projects, including governmental and cultural development projects[29] Financial Position and Cash Flow - As of December 31, 2019, the Group had total cash and bank balances of approximately RMB24.2 million, a decrease from RMB116.4 million in 2018[69] - The Group's net current assets as of December 31, 2019, were approximately RMB419.3 million, compared to RMB415.7 million as of December 31, 2018[74] - The Group's total bank borrowings as of December 31, 2019, were approximately RMB113.4 million, an increase from RMB103.0 million in 2018[78] - The Group's current ratio decreased to 2.1 as of December 31, 2019, down from 2.7 in 2018[87] - The gearing ratio increased to 38.3% as of December 31, 2019, compared to 21.0% in 2018[87] Management and Governance - The Group's overall management and strategic planning are led by Ms. Hou Wei, who has approximately 19 years of experience in retail chain operations[139] - The company has a strong focus on corporate governance and compliance, as evidenced by the qualifications of its directors and senior management[162] - The management team includes professionals with advanced degrees in law and business administration, enhancing the company's strategic capabilities[162][165] - The company emphasizes investor relations and corporate finance, reflecting its commitment to maintaining strong financial health and transparency[162] Risks and Challenges - The Group's business is concentrated in Meizhou, Guangdong Province, making it vulnerable to adverse economic or market developments in this region[125] - The Group's operational risk includes reliance on suppliers for merchandise, with potential adverse effects from changes in supplier relationships or delays in product delivery[130] - The Group faces talent competition in its operating cities, risking its ability to attract and retain key personnel with necessary skills and experience[133] - The Group's business operations are significantly influenced by the growth of the Chinese real estate market and related government policies[135] - The Group faces potential risks and uncertainties that may impact future business development, as discussed in the annual report[186]

Revenue Performance - Total revenue decreased by approximately RMB14.0 million or 5.3% from approximately RMB263.0 million in FY2018 to approximately RMB249.0 million in FY2019[24]. - Revenue from sale and distribution of merchandise decreased by approximately RMB27.2 million or 24.5% from approximately RMB111.2 million in FY2018 to approximately RMB83.9 million in FY2019[27]. - Revenue from the provision of interior design and engineering services increased by approximately RMB13.2 million or 8.7% from approximately RMB151.8 million in FY2018 to approximately RMB165.1 million in FY2019[21]. - Revenue from home improvement materials increased by 16.9% from RMB8.0 million in FY2018 to RMB9.4 million in FY2019[21]. - Revenue from furnishings decreased by approximately RMB2.2 million or 31.6% from RMB7.0 million in FY2018 to RMB4.8 million in FY2019[21]. - The Group's total revenue for the Reporting Period was approximately RMB249.0 million[24]. - Revenue from the sale and distribution of merchandise decreased by approximately RMB27.2 million or approximately 24.5% to approximately RMB83.9 million for the Reporting Period[29]. - Revenue from the provision of interior design and engineering services increased by approximately RMB13.2 million or approximately 8.7% to approximately RMB165.1 million for the Reporting Period[33]. Profitability and Gross Margin - Overall gross profit increased by approximately RMB6.0 million or approximately 20.9% to approximately RMB34.6 million for the Reporting Period, with gross profit margin rising from approximately 10.9% to approximately 13.9%[38]. - Gross profit margin for the sale and distribution of merchandise increased from approximately 10.2% to approximately 13.8%, driven by improvements in building materials and furnishings sales[39]. - Profit for the period increased by approximately RMB1.6 million or approximately 22.9% to approximately RMB8.6 million for the Reporting Period[48]. - Operating profit for the period was RMB 17.05 million, up 29% from RMB 13.14 million in the prior year[110]. - The total comprehensive income for the period was RMB 12.55 million, compared to RMB 13.17 million in the previous year[114]. Expenses and Financial Costs - Selling expenses dropped by approximately RMB2.9 million or approximately 33.7% to approximately RMB5.6 million for the Reporting Period[45]. - Administrative expenses increased by approximately RMB5.8 million or approximately 85.0% to approximately RMB12.5 million for the Reporting Period[46]. - Net finance costs increased by approximately RMB1.6 million or approximately 57.3% to approximately RMB4.4 million for the Reporting Period[47]. - Finance costs increased to RMB 4.38 million from RMB 2.82 million in the previous year, reflecting a rise in financial expenses[110]. Cash Flow and Liquidity - As of June 30, 2019, the Group's total cash and bank balances were approximately RMB 91.0 million, down from RMB 116.4 million as of December 31, 2018, primarily due to net cash used in operating activities of approximately RMB 98.8 million[62][66]. - The Group's current ratio decreased to 2.1 as of June 30, 2019, from 2.7 as of December 31, 2018, while the quick ratio also declined to 2.0 from 2.5[76][77]. - Cash and cash equivalents decreased to RMB 91,006,000 from RMB 116,391,000, a decline of 21.8%[120]. - Net cash used in operating activities for the six months ended June 30, 2019, was RMB 98,835,000, an increase of 106% compared to RMB 47,983,000 in the same period of 2018[126]. - Net cash generated from financing activities was RMB 92,353,000, significantly up from RMB 19,000 in the prior year, driven by proceeds from the issuance of convertible bonds amounting to RMB 89,725,000[126]. Capital Structure and Financing - The Group issued convertible bonds totaling HK$ 102,000,000 on June 25, 2019, with an initial conversion price of HK$ 1.0 per share, providing additional capital for project tendering and potential acquisitions[60][64]. - Total bank borrowings as of June 30, 2019, were approximately RMB 108.0 million, with a weighted average effective interest rate of 6.96% per annum[68][70]. - The gearing ratio as of June 30, 2019, was 21.2%, slightly up from 21.0% as of December 31, 2018[76][77]. - The company raised approximately HK$101.8 million through a rights issue of 172,800,000 shares at a subscription price of HK$0.60 per share, increasing total issued shares from 432,000,000 to 604,800,000[79]. - Approximately 90% of the net proceeds, around HK$91.6 million, was allocated for financing interior design and engineering projects in the PRC, while 10% (approximately HK$10.2 million) was designated for general working capital[79]. Accounting Policies and Changes - The Group applied HKFRS 16 from January 1, 2019, without restating comparatives for 2018[155]. - The Group's right-of-use assets as of January 1, 2019, were valued at RMB 22,153,000, which decreased to RMB 20,485,000 by June 30, 2019, reflecting depreciation charges of RMB 1,668,000[174]. - The Group changed its accounting policy for investment properties to a fair value model, which is expected to enhance comparability and reflect the true value of these assets[186]. - The fair value changes of investment properties will now be recognized in the consolidated statement of comprehensive income as they arise, a shift from the previous cost model[186]. Employee and Operational Metrics - The Group's employee count increased to 144 as of June 30, 2019, from 137 a year earlier, with total staff costs amounting to approximately RMB 4.9 million[106]. - The Group has commenced construction on several significant corporate projects, including two EPC projects from the PRC government, and various residential and commercial construction projects[55][57].

Revenue Performance - In FY2018, the provision of interior design and engineering services accounted for approximately 51.9% of total revenue, up from 23.9% in FY2017[14]. - Revenue from interior design and engineering services increased by approximately RMB212.1 million or 213.5%, from approximately RMB99.3 million in FY2017 to approximately RMB311.4 million in FY2018[15]. - Revenue from the sale and distribution of merchandise decreased by approximately RMB28.6 million or 9.0%, from approximately RMB316.6 million in FY2017 to approximately RMB288.1 million in FY2018[20]. - Revenue from home improvement materials and furnishing products decreased by approximately 46.3% and 7.8% respectively in FY2018[20]. - Total revenue increased by approximately RMB183.5 million or approximately 44.1% from approximately RMB416.0 million for FY2017 to approximately RMB599.5 million for FY2018[40]. - Revenue from the sale and distribution of merchandise decreased by approximately RMB28.5 million or approximately 9.0% from approximately RMB316.6 million in FY2017 to approximately RMB288.1 million in FY2018[43]. - Revenue from the sale of home improvement materials decreased by approximately RMB17.9 million or approximately 46.3% from approximately RMB38.7 million in FY2017 to approximately RMB20.8 million in FY2018[45]. - Revenue from the sale of furnishings decreased by approximately RMB1.6 million or approximately 7.8% from approximately RMB20.7 million in FY2017 to approximately RMB19.1 million in FY2018[46]. Profitability - The consolidated net profit for FY2018 was approximately RMB12.1 million, representing an increase of approximately RMB3.1 million or 34.4% compared to RMB9.0 million in FY2017[21]. - The increase in net profit was primarily due to the increase in gross profit from interior design services and a decrease in selling and administrative expenses[21]. - The decrease in gross profit from merchandise sales was approximately RMB21.5 million, which partially offset the increase in net profit[21]. - Overall gross profit increased by approximately RMB2.9 million or approximately 5.4% from approximately RMB53.1 million in FY2017 to approximately RMB56.0 million in FY2018[57]. - Profit for the year increased by approximately RMB3.1 million or approximately 34.4% from approximately RMB9.0 million in FY2017 to approximately RMB12.1 million in FY2018[67]. Financial Position - As of December 31, 2018, the Group's total cash and bank balances increased to approximately RMB116.4 million, up from RMB93.0 million in FY2017, primarily due to net proceeds from share issuance and bank borrowings totaling approximately RMB244.7 million[72][73]. - The Group's net current assets rose to approximately RMB415.6 million as of December 31, 2018, compared to RMB257.4 million as of December 31, 2017[73]. - Total bank borrowings increased to approximately RMB103 million as of December 31, 2018, from RMB88.2 million in FY2017, while unutilized banking facilities for short-term financing decreased to approximately RMB20 million from RMB108 million[74][78]. - The Group's current ratio improved to 2.7 in FY2018 from 2.5 in FY2017, and the quick ratio increased to 2.5 from 2.3[83]. - The gearing ratio decreased to 21.0% in FY2018 from 26.3% in FY2017, indicating a reduction in financial leverage[83]. Investment and Growth Strategy - The Group is actively seeking new investment opportunities in the pan-cultural and entertainment industry to enhance profitability and maximize shareholder returns[28]. - An investment agreement was signed to acquire 51% of Xinfeng Culture for a total consideration of HK$54,366,000, expected to diversify the Group's business[28]. - The Company raised approximately HK$101.8 million through a rights issue of 172,800,000 shares at HK$0.60 per share, with plans to allocate approximately HK$91.6 million for capital input in interior design and engineering projects in the PRC[88][89]. - On December 27, 2018, the Company completed a placing of 86,400,000 new shares at HK$0.70 per share, raising approximately HK$59.7 million, with plans to use approximately HK$53.7 million for potential acquisitions of movie or television projects[95]. Management and Leadership - The Group has a strong leadership team with diverse backgrounds in finance, management, and government[125][128][131]. - The Company emphasizes strategic planning and business development under the leadership of Ms. Hou Wei[125]. - The management team has extensive experience in various sectors, including finance, real estate, and engineering, enhancing the company's operational capabilities[138]. - The company is committed to maintaining effective internal control systems and audit processes, as emphasized by Mr. Ye Yihui's role[140]. Risks and Challenges - Key business risks include reliance on key customers and concentration of operations in Meizhou, Guangdong Province, which may affect demand for the company's merchandise[111]. - The company faces operational risks related to supplier relationships and potential delays in product delivery[112]. - The growth of the company's business is significantly influenced by the real estate market and relevant government policies in China[118]. Dividend Policy - The Company does not recommend the payment of a dividend for the reporting period[181]. - The Company has adopted a dividend policy that allows for the declaration and distribution of dividends, subject to profitability and operational considerations[186]. - The dividend policy will be reviewed periodically, with no assurance of dividends in specific periods[188].