Financial Performance - Total operating revenue for Q1 2024 was ¥2,111,539,269.77, a decrease of 19.3% compared to ¥2,616,557,956.86 in Q1 2023[7] - Net profit for Q1 2024 was a loss of ¥357,450,119.89, compared to a profit of ¥206,474,367.55 in Q1 2023[10] - Basic earnings per share for Q1 2024 was -¥0.09, compared to ¥0.04 in Q1 2023[12] - Operating revenue decreased by 19.30% due to a decline in mall occupancy rates and increased discounts to support merchants[53] - The net profit attributable to shareholders of the listed company decreased by 322.16% to -371,506,929.54 RMB compared to the previous year[44] - The net profit attributable to shareholders after deducting non-recurring gains and losses decreased by 156.52% to -119,275,435.39 RMB[44] - Basic earnings per share decreased to -325.00, attributed to a reduction in net profit attributable to shareholders[81] - The weighted average return on equity was -0.75%, a decrease of 1.07 percentage points compared to the previous year[44] - The weighted average return on equity decreased by 1.07 percentage points, mainly due to the decline in net profit[81] Operating Costs and Expenses - Total operating costs for Q1 2024 were ¥2,014,154,986.75, down 9.8% from ¥2,231,391,248.57 in Q1 2023[7] - Research and development expenses for Q1 2024 were ¥3,658,192.56, a decrease from ¥4,971,244.23 in Q1 2023[7] - The company reported a significant increase in financial expenses, totaling ¥644,505,766.61 in Q1 2024, compared to ¥526,684,902.61 in Q1 2023[7] - Financial expenses increased due to the suspension of interest capitalization on projects with lower-than-expected construction progress[53] Cash Flow - In Q1 2024, the net cash flow from operating activities was -181,674,312.38 RMB, a significant decrease compared to 1,076,288,459.82 RMB in Q1 2023[13] - Total cash inflow from operating activities was 1,956,405,750.46 RMB, down from 3,163,213,130.47 RMB in the same period last year[13] - Cash outflow from operating activities increased to 2,138,080,062.84 RMB, compared to 2,086,924,670.65 RMB in Q1 2023[13] - The net cash flow from investing activities was -470,841,213.48 RMB, a decline from 232,657,059.22 RMB in Q1 2023[15] - Cash inflow from financing activities reached 10,684,885,014.28 RMB, significantly higher than 2,474,482,861.10 RMB in the previous year[15] - The net cash flow from financing activities was 1,450,612,057.07 RMB, compared to -1,501,355,849.19 RMB in Q1 2023[15] - The ending balance of cash and cash equivalents was 3,304,603,819.16 RMB, an increase from 2,415,117,287.45 RMB at the end of Q1 2023[15] - The company's cash and cash equivalents rose to ¥3,778,307,768.78 from ¥2,974,052,910.82, marking an increase of approximately 27.00%[75] Assets and Liabilities - Total liabilities as of the end of Q1 2024 were ¥69,205,296,865.70, an increase from ¥68,238,972,398.90 at the end of Q1 2023[5] - Non-current liabilities totaled ¥41,031,198,844.72 in Q1 2024, up from ¥39,647,429,773.82 in Q1 2023[5] - The company's total assets reached ¥121,603,930,762.47, slightly up from ¥121,060,638,399.35 in the previous year[5] - The company's total current assets increased to ¥11,482,932,392.79 as of March 31, 2024, up from ¥10,427,891,309.98 as of December 31, 2023, representing a growth of approximately 10.13%[75] - The company’s total non-current assets amounted to 110,120,998,369.68 RMB, a slight decrease from 110,632,747,089.37 RMB in Q1 2023[18] - Shareholders' equity attributable to the listed company decreased by 0.86% to 49,187,744,445.34 RMB compared to the end of the previous year[44] Shareholder Information - The total number of common shareholders at the end of the reporting period was 58,849[36] - Xiamen Jindaf Co., Ltd. holds 1,042,958,475 shares, accounting for 23.95% of total shares[36] - Hongxing Meikailong Holding Group Co., Ltd. holds 954,890,035 shares, accounting for 21.93% of total shares[36] Other Comprehensive Income - Other comprehensive income after tax for Q1 2024 was -¥55,212,776.60, compared to ¥60,341,184.68 in Q1 2023[10] - The total net loss for the period was -252,231,494.15 million after tax effects and minority interests[34] - The fair value change of investment properties measured at fair value resulted in a loss of -330,407,613.85 million[33] - The fair value loss of investment properties was 324 million RMB, an increase of 314 million RMB compared to the previous year[49] - The company recognized a gain of 40,257,142.82 million from funds occupied by non-financial enterprises[33] - Other non-recurring gains and losses amounted to 3,482,959.06 million, including investment income from joint ventures and disposal of subsidiaries[33] Adjustments and Revisions - The company adjusted its financial statements for 2019 to 2022, with the impact on net profit attributable to shareholders being 6.50%, 0.81%, 2.56%, and 25.39% for those years respectively[79]

Financial Adjustments - The correction of accounting errors resulted in a decrease of RMB 2,475,000,000 in investment properties for the fiscal year 2022, adjusting the total to RMB 93,234,000,000[4]. - The total assets were adjusted down by RMB 2,018,792,415.15 for the fiscal year 2022, resulting in total assets of RMB 126,091,876,698.67[4]. - The net profit for the fiscal year 2022 was adjusted down by RMB 190,115,609.87, leading to a revised net profit of RMB 667,690,075.52[4]. - The total liabilities were adjusted down by RMB 504,698,103.79 for the fiscal year 2022, resulting in total liabilities of RMB 70,610,613,922.44[4]. - The correction of accounting errors resulted in a decrease of investment properties from ¥93.15 billion to ¥90.96 billion, a reduction of ¥2.19 billion[6]. - Fixed assets increased from ¥2.74 billion to ¥2.90 billion, an increase of ¥157.30 million[6]. - Total assets were adjusted from ¥131.55 billion to ¥129.85 billion, a decrease of ¥1.70 billion[6]. - The net profit was revised from ¥2.06 billion to ¥2.05 billion, a decrease of ¥14.05 million[6]. - The equity attributable to the parent company decreased from ¥47.56 billion to ¥46.29 billion, a reduction of ¥1.27 billion[6]. - For 2019, investment properties were adjusted from ¥85.11 billion to ¥82.91 billion, a decrease of ¥2.19 billion[7]. - The total assets for 2019 were adjusted from ¥122.29 billion to ¥120.62 billion, a decrease of ¥1.68 billion[7]. - The net profit for 2019 was revised from ¥4.69 billion to ¥4.40 billion, a decrease of ¥291.07 million[7]. Compliance and Oversight - The company received a notice of administrative penalty from the Ministry of Finance, proposing a fine of RMB 50,000 due to issues with the quality of accounting information for the fiscal year 2022[1]. - The company will closely monitor the progress of the administrative penalty and comply with the final opinions from the Ministry of Finance[1]. - The audit committee confirmed that the corrections comply with accounting standards and accurately reflect the company's financial status[9]. - The board of directors approved the corrections, stating they align with accounting principles and do not harm the interests of the company and its shareholders[9]. Impact of Corrections - The impact of the error correction on the net profit attributable to shareholders for 2022 was 25.39% of the total net profit[2]. - The company adjusted its financial statements for 2019 to 2021, with the error correction affecting the net profit by 6.50%, 0.81%, and 2.56% respectively[2]. - The adjustments do not affect the cash flow statement or the financial statements of the parent company[5]. Property and Investment Issues - The properties "North Fourth Ring Mall" and "Hangzhou Gudu Mall" cannot be sold separately, affecting the investment property accounting[2].

Share Lock-Up and Shareholder Commitments - The company reported a share lock-up period of 36 months, during which the original actual controller, Che Jianxing, cannot transfer or entrust the management of shares[3]. - After the lock-up period, Che Jianxing is allowed to transfer up to 25% of his shares annually while maintaining his actual control status[3]. - The company has committed to a minimum selling price for shares after the lock-up period, which will not be lower than the initial public offering price adjusted for any dividends or stock splits[3]. - The company plans to announce any share reductions three trading days in advance, detailing the reasons and intended quantities[3]. - The company has received approval for changes to the shareholding intentions and reduction commitments of its controlling shareholders as of February 15, 2023[5]. - The company will not repurchase shares during the lock-up period, ensuring stability in its share structure[8]. - The company has outlined a plan for potential limited share reductions after the lock-up period, subject to compliance with existing commitments[5]. - The company emphasizes the importance of maintaining governance and operational stability during any share reduction activities[8]. - The company has committed to not transferring or entrusting others to manage its shares in the public offering of Red Star Macalline for 36 months from the date of listing, which began on January 17, 2018[22]. - The company will extend the lock-up period of its remaining shares by one year if it violates the commitment regarding share reduction[22]. - The company has stated that any illegal proceeds from share reduction will be returned to Red Star Macalline[22]. Environmental and Social Responsibility - The company published its 2023 Annual Corporate Environmental and Social Responsibility Report, detailing environmental protection data and information[12]. - The company strictly adheres to the Energy Conservation Law of the People's Republic of China and has set energy efficiency targets for its mall construction projects[10]. - The company has invested zero funds in environmental protection during the reporting period[34]. - The company does not belong to the national key monitoring pollution units and has established a "green environmental management system" to integrate environmental protection into every operational stage[37]. - The company has a long-term commitment to environmental protection, implementing strict controls over each phase of project management from planning to operation[37]. - The company has maintained a compliance rate of 90% for environmental quality standards, with a detection pass rate of 95.12% for 2,580 batches of products[100]. - The company has reduced carbon emissions by 545,503 tons through various energy-saving initiatives[177]. - The company has not disclosed any other environmental information due to its non-applicability[39]. Financial Performance - The company reported a basic earnings per share of -0.51 yuan, a decrease of 492.31% compared to 0.13 yuan in 2022[53]. - The weighted average return on equity decreased to -4.37%, down 5.44 percentage points from 1.07% in the previous year[53]. - The company reported a total non-operating loss of approximately 988.33 million yuan, significantly impacting overall financial performance[62]. - The company's operating revenue for 2023 was approximately ¥11.51 billion, a decrease of 18.55% compared to ¥14.14 billion in 2022[79]. - The net profit attributable to shareholders for 2023 was approximately -¥2.22 billion, a decline of 496.78% from a profit of ¥558.59 million in 2022[79]. - The net cash flow from operating activities for 2023 was approximately ¥2.36 billion, down 39.07% from ¥3.88 billion in 2022[79]. - The total assets at the end of 2023 were approximately ¥121.06 billion, a decrease of 3.99% from ¥126.09 billion at the end of 2022[79]. - The net assets attributable to shareholders at the end of 2023 were approximately ¥49.62 billion, down 4.65% from ¥52.03 billion at the end of 2022[79]. - The net cash flow from investment activities was approximately ¥701.36 million, showing a slight increase from the previous year[156]. - The net cash flow from financing activities was approximately -¥3.17 billion, indicating a significant reduction in outflows compared to the previous year[156]. Market and Operational Strategy - The company continues to focus on category strategy and brand upgrades to drive growth in the home furnishing sector[71]. - The company plans to focus on market expansion and new product development to improve future performance[79]. - The company operates 448 home improvement stores across 215 cities in 30 provinces, with a total operating area of 21,724,717 square meters[92]. - The company has established a comprehensive service model for its franchise operations, leveraging its brand strength and management experience[107]. - The company is actively pursuing strategic collaborations in the new energy vehicle sector, enhancing its service offerings and customer experience[94]. - The company has expanded its membership service locations from 75 to 96, achieving a customer satisfaction rate of 97%[99]. - The company has a strong online and offline integration strategy, enhancing its digital presence through a partnership with Alibaba since 2019[96]. - The company has seen a 180% year-on-year increase in live streaming sessions and a 234% increase in traffic due to the "Gold Medal Salesperson Live Streaming" initiative[124]. - The company is collaborating with Alibaba to explore new retail models, implementing digital upgrades across malls and enhancing online-to-offline transaction capabilities[143]. - The company aims to create a sustainable high-quality traffic ecosystem by integrating design solutions with materials and enhancing collaboration among malls, designers, dealers, and brand factories[123]. Revenue and Cost Analysis - The company's revenue from the home commercial service industry was approximately ¥8.81 billion, a decrease of 14.0% compared to the previous year[160]. - The gross profit margin for the home commercial service industry was 64.6%, down by 0.8 percentage points year-on-year[160]. - Revenue from construction and design services was approximately ¥1.21 billion, a decrease of 1.7% year-on-year[162]. - The gross profit margin for construction and design services was -0.6%, a decrease of 15.9 percentage points compared to the previous year[162]. - Revenue from self-operated and leasing income was approximately ¥6.78 billion, down 13.8% year-on-year[162]. - The gross profit margin for self-operated and leasing income was 70.8%, a decrease of 2.1 percentage points year-on-year[162]. - Revenue from project annual brand consulting management services was approximately ¥1.94 billion, a decrease of 10.9% year-on-year[164]. - The company reported a significant decrease in revenue from home decoration-related services, down 51.2% year-on-year[162]. - The total cost of the home commercial service industry was approximately ¥3.12 billion, a decrease of 11.9% compared to the previous year[166]. - The company's operating costs amounted to ¥4,981,648,749.52, reflecting a reduction of 15.79% year-on-year[180]. Marketing and Customer Engagement - The company launched multiple marketing campaigns, including the 315FUN and 818FUN shopping festivals, to boost brand awareness and sales[71]. - The company’s content operations generated over 1.1 billion views across various platforms, with a total fan base of 5 million[72]. - The company achieved a customer net promoter score of 68.1% and an overall satisfaction rate of 95.96%[128]. - The company has developed a comprehensive consumer profile and product mapping, enabling precise matching of brands and merchants with consumer needs throughout the home decoration cycle[146]. - The company's marketing activities are supported by strong control from headquarters, ensuring effective execution across its nationwide stores[172]. Human Resources and R&D - The company has 51 R&D personnel, accounting for 0.35% of the total workforce[194]. - The company has no doctoral researchers among its R&D personnel, with 4 holding master's degrees and 37 holding bachelor's degrees[194]. - The company reduced R&D expenses by 57.63% to ¥19,631,122.59, primarily due to decreased personnel costs[180]. - Management expenses decreased by 7.69% to ¥1,301,881,550.28 due to reduced personnel costs[192]. - Financial expenses increased by 10.23% to ¥2,560,957,468.28, mainly due to a decrease in capitalized interest[192]. Business Expansion and Strategic Initiatives - The company is expanding into lower-tier markets through a light-asset model, utilizing management contracts and franchising to establish a presence in third-tier cities and below[140]. - The introduction of high-frequency consumption formats in malls enhances the overall consumer experience, catering to dining needs during home shopping[141]. - In 2023, the company launched the "Super Star Anchor" project with Tmall, focusing on professional training for influential home decor livestreamers[144]. - The company has established a national marketing network that leverages its extensive physical presence to achieve cost synergies and consistent marketing messages[171]. - The company has over 38,500 brand series in its marketplace, providing a comprehensive selection for consumers[174].

Administrative Penalties - The company received an administrative penalty notice from the Ministry of Finance, proposing a fine of RMB 50,000 due to issues related to the quality of accounting information for the fiscal year 2022[1]. - The company will closely monitor the developments regarding the administrative penalty and comply with the final opinions from the Ministry of Finance[1]. Accounting Corrections - The correction of accounting errors resulted in a decrease of RMB 2.475 billion in investment properties for the fiscal year 2022, adjusting the total to RMB 93.234 billion[4]. - The total assets were adjusted down by RMB 2.018 billion for the fiscal year 2022, resulting in total assets of RMB 126.092 billion[4]. - The net profit for the fiscal year 2022 was adjusted down by RMB 190.116 million, leading to a revised net profit of RMB 667.690 million[4]. - The impact of the correction on the net profit attributable to shareholders for 2022 was 25.39% of the total net profit[2]. - The company made retrospective adjustments to the financial statements for the years 2019 to 2021, with the 2021 net profit adjusted down by RMB 52.492 million[5]. - The total liabilities for the fiscal year 2022 were adjusted down by RMB 504.698 million, resulting in total liabilities of RMB 70.611 billion[4]. - The adjustments do not affect the cash flow statement or the financial statements of the parent company[5]. - The correction of accounting errors resulted in a decrease of investment properties from ¥93.15 billion to ¥90.96 billion, a reduction of ¥2.19 billion[6]. - Fixed assets increased from ¥2.74 billion to ¥2.90 billion, an increase of ¥157 million[6]. - Total assets were adjusted from ¥131.55 billion to ¥129.85 billion, a decrease of ¥1.70 billion[6]. - The net profit attributable to the parent company decreased from ¥1.73 billion to ¥1.72 billion, a reduction of ¥14 million[6]. - For 2019, investment properties were adjusted from ¥85.11 billion to ¥82.91 billion, a decrease of ¥2.19 billion[7]. - The total liabilities were adjusted from ¥80.45 billion to ¥80.03 billion, a decrease of ¥423 million[6]. - The net profit for 2019 was adjusted from ¥4.69 billion to ¥4.40 billion, a reduction of ¥291 million[7]. Compliance and Approval - The audit committee confirmed that the corrections comply with accounting standards and accurately reflect the company's financial status[9]. - The board of directors approved the corrections, stating they align with accounting principles and do not harm the interests of shareholders[9]. - The adjustments do not affect the consolidated cash flow statement or the financial statements of the parent company[6].

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 11,514,983 thousand, a decrease of 18.4% compared to RMB 14,138,320 thousand in 2022[3] - Gross profit for the same period was RMB 7,033,253 thousand, down from RMB 8,844,699 thousand, resulting in a gross margin of 61.1% compared to 62.6% in 2022[3] - The company reported a net loss of RMB 2,570,418 thousand for 2023, contrasting with a profit of RMB 816,884 thousand in 2022, leading to a loss attributable to owners of the company of RMB 2,412,713 thousand[3][5] - Other income for 2023 was RMB 319,480 thousand, down from RMB 447,559 thousand in 2022[5] - The company incurred a significant increase in expected credit loss impairment, amounting to RMB 1,303,571 thousand compared to RMB 385,205 thousand in the previous year[5] - The company’s basic and diluted loss per share for 2023 was RMB (0.55), compared to earnings of RMB 0.16 per share in 2022[6] - The company reported a net loss of RMB 2,570,418 thousand for the year ended December 31, 2023[12] - The company’s total equity was RMB 55,143,135 thousand, down from RMB 58,002,716 thousand in 2022[12] - The company’s bank and other borrowings decreased to RMB 19,713,654 thousand from RMB 24,508,990 thousand in the previous year[12] - The company’s contract liabilities decreased to RMB 1,137,850 thousand from RMB 1,839,930 thousand in 2022[12] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 124,186,609 thousand, a decline from RMB 129,482,459 thousand in 2022[7] - The company’s investment properties decreased to RMB 98,480,200 thousand from RMB 100,022,185 thousand year-over-year[7] - As of December 31, 2023, the company's net current liabilities amounted to RMB 18,607,903 thousand, an increase from RMB 14,210,208 thousand in 2022[12] - Total assets minus current liabilities were RMB 95,595,068 thousand, down from RMB 104,120,867 thousand in 2022[12] - Non-current liabilities totaled RMB 40,451,933 thousand, a decrease from 46,118,151 thousand in the previous year[12] - The company’s current liabilities increased to RMB 28,591,541 thousand from RMB 25,361,592 thousand in 2022[12] Operational Metrics - The number of self-operated malls decreased to 87 from 94, with a self-operated mall average occupancy rate of 82.80%, down from 85.20% in the previous year[4] - The average rental rate for managed malls was 85.70%, a decrease from 86.70% in 2022[4] - The segment profit for the self-owned/leased malls was RMB 3,381,871 thousand, while the construction and design segment reported a loss of RMB (98,740) thousand[19] - The group reported total revenue from external customers of RMB 11,514,983 thousand for the year ended December 31, 2023[19] Strategic Initiatives - The company plans to expand its market presence in mainland China, with a focus on enhancing service offerings and product sales in the home decoration sector[22] - The company is exploring strategic acquisitions to bolster its market position and diversify its revenue streams[22] - The company launched the M+ high-end design center in March 2023, aiming to create a comprehensive home ecosystem that integrates design, materials, and brands[46] - The company has established strategic partnerships in the new energy vehicle sector, with over 10,000 square meters dedicated to EV brands like Tesla and BYD[45] Economic Context - In 2023, China's GDP grew by 5.2%, an acceleration of 2.2 percentage points compared to 2022, outperforming the global growth estimate of around 3%[41] - The per capita disposable income of residents increased by 6.3% nominally, with a real growth of 6.1% after adjusting for price factors[41] - The total retail sales of consumer goods increased by 7.2% year-on-year, with retail sales of goods growing by 5.8%[41] Employee and Administrative Costs - Total employee costs amounted to RMB 2,584,844 thousand in 2023, compared to RMB 3,016,422 thousand in 2022, reflecting a decrease of approximately 14.3%[29] - The company’s administrative expenses were RMB 42,764 thousand, and other income was RMB 319,480 thousand[18] Investment and Financing - The company has engaged in discussions with banks and financial institutions regarding financing matters to improve liquidity[12] - The company continues to implement plans to enhance its financial position, including utilizing unused bank loan facilities[12] - The total amount raised from the A-share issuance was RMB 3,222,450,000, with net proceeds amounting to RMB 3,050,007,849 after deducting issuance costs[79] - The total amount raised from the private placement of shares was RMB 3,701,299.9 thousand, with a net amount of RMB 3,678,363.8 thousand after deducting issuance costs of RMB 22,936.1 thousand[82] Compliance and Governance - The company has complied with the Corporate Governance Code, with adjustments made to separate the roles of Chairman and CEO as of August 15, 2023[75] - The company has confirmed compliance with the Standard Code of Conduct for securities trading by all directors and supervisors for the year ending December 31, 2023[76]

Financial Performance - The company's operating revenue for the nine months ended September 30, 2023, was RMB 8,675,386,414.22, a decrease of 17.3% compared to RMB 10,483,872,179.16 in the same period of 2022[2]. - The net profit attributable to the owners of the parent company for the same period was a loss of RMB 560,527,154.92, a decline of 142.53% from a profit of RMB 1,317,956,964.82 in 2022[3]. - The total comprehensive income attributable to the owners of the parent company was a loss of RMB 783,580,901.15, compared to a profit of RMB 732,337,805.19 in the same period last year[3]. - The company anticipates a net profit attributable to the owners of the parent company for the first three quarters of 2023 to be between RMB -600 million and RMB -500 million, a decrease of 137.9% to 145.5% year-on-year[3]. Financial Costs and Expenses - The company reported a significant increase in financial costs, totaling RMB 1,878,704,823.68, compared to RMB 1,771,406,018.09 in the previous year, reflecting a rise of 6.05%[2]. - Research and development expenses decreased to RMB 13,771,845.42 from RMB 34,414,109.82, indicating a reduction of 60.0%[2]. - The company reported a decrease in interest income to RMB 124,654,518.65 from RMB 174,617,731.89, a decline of 28.6%[2]. - The company recognized impairment losses of over RMB 130 million for entrusted management business and over RMB 210 million for construction-related business due to slow recovery in the real estate sector[6]. - The company made an impairment provision of approximately RMB 166 million for long-term equity investments with poor operating conditions[6]. - The company plans to adjust its future operational direction for high-end imported furniture retail business and intends to conduct a bulk clearance of existing inventory, leading to an impairment loss of nearly RMB 100 million[6]. Cash Flow and Assets - The net cash flow from operating activities for the nine months ended September 30, 2023, was RMB 2.77 billion, down from RMB 3.98 billion in the same period of 2022, representing a decline of approximately 30.4%[8]. - The company reported a net increase in cash and cash equivalents of approximately RMB 510 million for the period, compared to a decrease of approximately RMB 906 million in the same period of 2022[8]. - As of September 30, 2023, the total current assets amounted to approximately RMB 11.70 billion, an increase from RMB 11.45 billion at the end of 2022[9]. Liabilities and Equity - The total liabilities as of September 30, 2023, were approximately RMB 70.21 billion, a decrease from RMB 71.12 billion at the end of 2022[13]. - As of September 30, 2023, the total equity attributable to shareholders of the parent company is RMB 52,492,976,026.81, a decrease from RMB 53,547,605,431.72 as of December 31, 2022, representing a decline of approximately 1.96%[14]. - The total liabilities and equity amount to RMB 126,075,090,926.67, down from RMB 128,110,669,113.82 in the previous year, indicating a decrease of about 1.60%[14]. - The total borrowings of the group as of the reporting date stand at RMB 32,695,451,845.44[14]. - The capital reserve increased slightly to RMB 6,884,592,342.60 from RMB 6,881,596,618.59, reflecting a growth of approximately 0.02%[14]. - Other comprehensive income decreased to RMB 715,747,273.47 from RMB 1,012,724,841.48, showing a decline of about 29.3%[14]. - The retained earnings as of September 30, 2023, are RMB 38,249,175,184.77, down from RMB 39,009,822,745.68, which is a decrease of approximately 1.93%[14]. - The total equity of the group is RMB 55,861,999,814.51, a decrease from RMB 56,995,357,087.59, representing a decline of about 1.99%[14]. - The minority interest amounts to RMB 3,369,023,787.70, down from RMB 3,447,751,655.87, indicating a decrease of approximately 2.27%[14]. Operational Adjustments - The company updated its operational assessment for underperforming rental malls and decided to terminate leases, resulting in an operating expense of nearly RMB 68 million for the reporting period[8]. - The company plans to discuss rental and management fee discounts for eligible merchants to support the ongoing development of the home furnishing and building materials industry[1]. - The company experienced a decline in rental rates, impacting the valuation of investment properties and leading to a corresponding adjustment in property valuations[5]. Legal and Governance - The company reached a settlement regarding a civil lawsuit with Runliang Investment, agreeing to pay RMB 63.35 million in compensation and terminate the related cooperation agreements[8]. - The board of directors includes both executive and non-executive members, ensuring a diverse governance structure[15]. - The company emphasizes that the financial data provided is unaudited and based on internal records, cautioning shareholders and potential investors to act prudently[15]. Investment Properties - The fair value change loss of investment properties accumulated to RMB 457 million, representing an increase in loss of RMB 557 million year-on-year[5].

Financial Performance - For the first three quarters of 2023, the company reported cash inflows from operating activities totaling ¥9,889,197,852.12, a decrease of 9.1% compared to ¥10,879,406,513.79 in the same period of 2022[15] - The net cash flow from operating activities for the first three quarters of 2023 was ¥2,768,453,497.54, down 30.4% from ¥3,975,737,906.64 in the previous year[15] - The company's operating revenue for the third quarter was approximately ¥3.02 billion, a decrease of 14.51% year-on-year[40] - The net profit attributable to shareholders was approximately -¥711.23 million, a decline of 342.85% compared to the same period last year[40] - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately -¥425.60 million, down 331.23% year-on-year[40] - The company reported a net profit loss of RMB 635,867,934.46 for the third quarter, compared to a net profit of RMB 1,323,939,881.84 in the same period last year, indicating a significant decline[89] - The net profit attributable to shareholders for the current reporting period is -342.85 million, reflecting a year-on-year decline due to a decrease in mall rental rates and reduced income from management and construction projects[46] - The net profit attributable to shareholders for the year-to-date period is -142.53 million, impacted by similar factors as the current period[46] - The net profit attributable to shareholders after deducting non-recurring gains and losses for the current period is -331.23 million, indicating a significant decline in revenue[46] Cash Flow and Liquidity - The company recorded cash outflows from investment activities amounting to ¥1,178,254,108.77 for the first three quarters of 2023, compared to ¥2,926,747,952.81 in the same period of 2022[8] - The total cash inflow from financing activities for the first three quarters of 2023 was ¥4,880,693,188.74, a decrease of 58.0% from ¥11,608,387,911.58 in the previous year[8] - The company’s cash and cash equivalents at the end of the third quarter of 2023 stood at ¥3,118,251,176.16, compared to ¥5,192,313,896.39 at the end of the same period in 2022, reflecting a decrease of 40.0%[8] - The company reported a net cash outflow from financing activities of ¥2,794,817,455.40 for the first three quarters of 2023, compared to a net outflow of ¥5,053,574,314.65 in the previous year[8] - The company’s cash inflow from investment activities for the first three quarters of 2023 was ¥1,714,253,916.62, down from ¥3,097,256,974.43 in the same period of 2022[15] - The company’s total cash outflows from operating activities for the first three quarters of 2023 were ¥7,120,744,354.58, an increase of 3.2% compared to ¥6,903,668,607.15 in the previous year[15] - The company's cash dividend distribution amounted to RMB 200,269,642.16, with a payout of RMB 0.46 per 10 shares[85] Assets and Liabilities - The total assets attributable to shareholders at the end of the reporting period were approximately ¥126.08 billion, a decrease of 1.59% from the previous year[40] - Total assets decreased from RMB 128,110,669,113.82 to RMB 126,075,090,926.67, reflecting a reduction of approximately 1.6%[88] - Total liabilities decreased to CNY 70,213,091,112.16 as of September 30, 2023, from CNY 71,115,312,026.23 at the end of 2022, reflecting a reduction of 1.3%[94] - The company's total equity attributable to shareholders decreased from RMB 53,547,605,431.72 to RMB 52,492,976,026.81, a decline of about 2%[88] - The company's long-term equity investments decreased from RMB 3,757,062,104.96 to RMB 3,504,649,210.39, a decline of about 6.7%[88] Shareholder Information - The total number of common shareholders at the end of the reporting period is 61,453, with Xiamen C&D Inc. holding 1,042,958,475 shares, representing 23.95% of the total shares[63] - Red Star Macalline Holdings Group Co., Ltd. holds 954,890,035 shares, accounting for 21.93% of the total shares, with a portion of its shares pledged[63] - Alibaba (China) Network Technology Co., Ltd. increased its shareholding from 4.30% to 9.9976% after converting part of its bonds into 248,219,904 A-shares[68] - The company plans to acquire 29.95% of Red Star Macalline Holdings Group Co., Ltd. shares, as per the share transfer framework agreement signed on January 13, 2023[67] - The top ten shareholders collectively hold a significant portion of the company's shares, with the largest shareholder holding nearly 24%[63] Operational Adjustments and Future Plans - The company plans to discuss rental and management fee discounts for qualifying merchants in specific malls to support the home furnishing and building materials industry, which may impact the valuation of investment properties[22] - The company plans to adjust its future operations for high-end imported furniture retail, aiming to clear existing inventory[36] - The company has updated its operational assessments for certain leasing malls, leading to decisions to terminate leases and enter closure procedures[49] - The company is actively involved in strategic acquisitions and partnerships to enhance its market position[67] Impairments and Expenses - The company recorded a cumulative fair value loss of ¥4.57 billion on investment properties, an increase in loss of ¥5.57 billion year-on-year[35] - The company made an impairment provision of approximately ¥166 million for underperforming long-term equity investments[36] - The company has made impairment provisions exceeding 130 million for management-related businesses and over 210 million for construction-related businesses due to slow recovery in the real estate sector[60] - The company incurred approximately 190 million in non-operating expenses related to project terminations and associated costs[62] - Management expenses increased to RMB 1,051,877,168.88, up from RMB 975,732,589.76, representing an increase of about 7.8%[89] - Research and development expenses decreased significantly to RMB 13,771,845.42 from RMB 34,414,109.82, a reduction of approximately 60%[89] Earnings Per Share - The basic earnings per share for the third quarter was -¥0.16, a decrease of 328.57% year-on-year[40] - Basic earnings per share for the current period is -328.57, primarily due to the decrease in net profit attributable to shareholders[46] - Basic earnings per share for the year-to-date period is -143.33, reflecting the same downward trend in profitability[46]

Financial Performance - For the six months ended June 30, 2023, the company reported operating revenue of RMB 5,659,926 thousand, a decrease of 18.6% from RMB 6,956,620 thousand in 2022[8]. - The gross profit for the same period was RMB 3,622,346 thousand, with a gross margin of 64.0%, down from 66.7% in the previous year[8]. - The profit attributable to owners of the company was RMB 128,196 thousand, representing a significant decline of 87.0% compared to RMB 982,069 thousand in 2022[8]. - The core profit attributable to owners was RMB 251,260 thousand, down 78.0% from RMB 1,143,076 thousand in the prior year, with a core profit margin of 4.4%[8][9]. - The group's operating revenue for the first half of 2023 was RMB 5,659.9 million, a decrease of 18.6% compared to RMB 6,956.6 million in the same period of 2022[18]. - The group's net profit attributable to shareholders was RMB 128.2 million, an 86.9% decrease from RMB 982.1 million in the same period last year[27]. - Core net profit attributable to shareholders was RMB 251.3 million, down 78.0% from RMB 1,143.1 million in 2022[27]. - The company reported a net loss of RMB 241,926 thousand from other gains and losses, compared to a loss of RMB 31,143 thousand in the previous year[96]. - The company reported a pre-tax profit of RMB 288,200 thousand, significantly lower than RMB 1,721,922 thousand in the prior year[96]. - Net profit for the period was RMB 113,449 thousand, a decrease of 88.2% from RMB 959,747 thousand in the same period last year[96]. - Total comprehensive income for the six months ended June 30, 2023, was RMB 86,003 thousand, a decrease of 86.2% compared to RMB 624,974 thousand in the same period of 2022[97]. - The total profit attributable to the owners of the company for the six months ended June 30, 2023, was RMB 128,196 thousand, down 87.0% from RMB 982,069 thousand in the same period of 2022[97]. - Basic and diluted earnings per share for the six months ended June 30, 2023, were RMB 0.03, a decline of 86.9% compared to RMB 0.23 in the same period of 2022[97]. Revenue and Expenses - Rental income from self-owned/leased malls decreased from RMB 4,153.4 million in 2022 to RMB 3,376.9 million in 2023, reflecting a decline due to lower occupancy rates and rent exemptions[18]. - The group's sales and distribution expenses increased to RMB 606.2 million, accounting for 10.7% of operating revenue, compared to 8.6% in the previous year[24]. - Administrative expenses rose to RMB 905.8 million, representing 16.0% of operating revenue, up from 12.0% in 2022[25]. - The company incurred a financial cost of RMB 1,258.0 million, with interest expenses remaining stable at RMB 1,426.6 million[26]. - The total operating expenses, including selling, administrative, and R&D expenses, amounted to RMB 1,521,397 thousand, an increase from RMB 1,455,962 thousand in 2022[96]. - The financial cost for the first half of 2023 was RMB 1,258,002 thousand, which is a significant expense impacting overall profitability[127]. Assets and Liabilities - The group's accounts receivable amounted to RMB 1,654.9 million, a decrease of RMB 307.3 million compared to the end of 2022, primarily due to a decline in operating revenue[29]. - The group's cash and cash equivalents decreased to RMB 2,498.4 million, down RMB 108.9 million from RMB 2,626.3 million at the end of 2022[32]. - Total debt amounted to RMB 33,949.0 million, with bank and other borrowings at RMB 31,526.4 million and bonds at RMB 1,821.4 million[35]. - The debt-to-asset ratio was 54.8%, slightly down from 55.2% at the end of 2022[38]. - The group's non-current assets totaled RMB 116,699,287 thousand as of June 30, 2023, a decrease of 1.4% from RMB 118,331,075 thousand as of December 31, 2022[98]. - Current assets amounted to RMB 10,948,519 thousand as of June 30, 2023, down 1.8% from RMB 11,151,384 thousand as of December 31, 2022[98]. - Total assets decreased to RMB 127,647,806 thousand as of June 30, 2023, from RMB 129,482,459 thousand as of December 31, 2022, reflecting a decline of 1.4%[98]. - Total current liabilities were RMB 24,554,106 thousand as of June 30, 2023, a decrease of 3.2% from RMB 25,361,592 thousand as of December 31, 2022[100]. - The company reported a net asset value of RMB 57,742,942 thousand as of June 30, 2023, down from RMB 58,002,716 thousand as of December 31, 2022[101]. Market and Strategic Initiatives - The company is actively implementing a "heavy operation" strategy, focusing on expanding categories such as smart appliances and dining, and exploring new retail models[14]. - The company aims to enhance its online and offline integrated retail network, leveraging initiatives like "Gold Medal Sales Live Broadcast Plan" and "Same City Station Product Aggregation" to boost performance[14]. - The overall market for retail consumption in China showed a recovery, with a year-on-year growth of 8.2% in the first half of 2023, indicating potential for future growth in the home decoration and furniture industry[16]. - The company is committed to optimizing mall category layouts and expanding its presence in new hot-selling brands to drive recovery in performance[14]. - The company has increased its restaurant category coverage to 44% nationwide and 85% in its mall format, collaborating with major brands like McDonald's and Starbucks[55]. - The company has implemented a digital upgrade in its core malls, focusing on product, user, and content operations, resulting in a 400%+ increase in traffic from live streaming events[57]. - The company is actively pursuing strategic partnerships and collaborations to expand its market presence and operational capabilities[54]. - The company aims to become China's leading and most professional "home decoration and furniture industry omnichannel platform service provider" as part of its development goal[59]. Corporate Governance and Shareholder Information - The company has adhered to the corporate governance principles and has maintained high standards to protect shareholder rights and enhance corporate value[61]. - The company has complied with all applicable provisions of the Corporate Governance Code, except for a deviation regarding the roles of the chairman and CEO[62]. - The audit committee, consisting of independent non-executive directors, has reviewed and confirmed the company's interim report for the six months ending June 30, 2023[66]. - The company completed the election of the fifth board of directors and supervisory board, with Mr. Zheng Yongda as the chairman of the board[69]. - As of June 30, 2023, the total number of issued shares was 4,354,732,673, including 3,613,447,039 A shares and 741,285,634 H shares[73]. - The company did not purchase, sell, or redeem any listed securities during the six months ended June 30, 2023[72]. - The company did not recommend any dividend payment for the six months ending June 30, 2023[86]. - The company declared dividends amounting to RMB 348,295,000 during the reporting period, compared to RMB 435,473,000 in the previous year[103]. Employee and Operational Metrics - The group employed 15,977 staff, a decrease from 20,526 staff in the same period last year, with total salary expenses of RMB 1,354.4 million[45]. - Total employee costs for the period were RMB 1,356,070 thousand, a decrease of 6.4% from RMB 1,448,976 thousand in 2022[151]. - The company has implemented risk management measures to address foreign exchange risks, which are not expected to significantly impact operational performance[44]. - The company has maintained a cash reserve and appropriate credit lines to meet liquidity needs[42].

Financial Performance - The company's operating revenue for the first half of 2023 was approximately ¥5.66 billion, a decrease of 18.64% compared to ¥6.96 billion in the same period last year[22]. - The net profit attributable to shareholders of the listed company was approximately ¥150.70 million, down 85.30% from ¥1.03 billion in the previous year[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was approximately ¥90.24 million, a decline of 90.37% compared to ¥936.70 million last year[22]. - The total assets at the end of the current period amount to ¥53.32 billion, compared to ¥53.55 billion at the beginning of the period, reflecting a slight decrease[24]. - The company's total revenue for the reporting period was approximately ¥5.66 billion, a decrease of 18.64% compared to ¥6.96 billion in the same period last year[69]. - Operating costs decreased by 12.92% to approximately ¥2.28 billion from ¥2.62 billion year-on-year, primarily due to the decline in revenue[69]. - The company reported a net cash flow from operating activities of approximately ¥2.07 billion, an increase of 3.35% compared to ¥2.00 billion in the previous year[69]. - The investment activities generated a net cash flow of approximately ¥734.47 million, a significant increase of 797.67% from ¥81.82 million in the previous year[69]. - The gross profit for the reporting period was 3.38 billion yuan, down 22.1% from 4.34 billion yuan in the same period last year, with a gross margin of 59.7%[98]. - Basic earnings per share decreased to 0.03 yuan, down 87.5% from 0.24 yuan year-on-year[92]. - The weighted average return on equity fell to 0.28%, a decrease of 1.61 percentage points compared to the previous year[92]. - The company’s total assets were 126.43 billion yuan, a decrease of 1.31% from the previous year[91]. - The company’s net assets attributable to shareholders were 53.32 billion yuan, a decrease of 0.43% from the previous year[91]. Membership and Customer Engagement - The company hosted nearly 500 member activities in the first half of 2023, adding 980,000 new members with an activation rate of 61% and a member repurchase rate of 18%[23]. - The company emphasizes a customer service-oriented membership system to enhance customer loyalty and service quality[23]. - The company continuously optimizes customer service through home visits and maintenance services, enhancing overall customer satisfaction[39]. - The company has conducted four major home service theme activities, serving over 170,000 households with a customer satisfaction rate of 98%[69]. - The company has focused on enhancing customer experience through improved management and service upgrades, aiming to solidify brand partnerships and consumer trust[68]. Market Strategy and Operations - The company is actively exploring new retail channels and enhancing digital operations in collaboration with Alibaba, focusing on home consumption[31]. - The company has established a renovation industry group to provide high-quality, personalized home decoration services, aiming to capture front-end traffic in the home decoration market[33]. - The company has implemented a nationwide marketing network, leveraging its extensive physical store network to achieve cost synergies and consistent marketing messages[34]. - The company aims to create an integrated online and offline home retail network, enhancing customer experience through various new retail models[44]. - The company has implemented a "heavy operation" strategy, optimizing mall category layouts and expanding into new product categories[44]. - The company has expanded its market penetration in lower-tier cities through a light asset model, including commissioned malls and franchised home building materials projects[78]. - The company has launched the first smart appliance lifestyle store in China, successfully entering the high-end appliance market[81]. - The company has upgraded its product strategy to a ten-theme pavilion strategy, covering various categories such as tiles and flooring[81]. Corporate Governance and Management - The introduction of new shareholders in June 2023 is expected to enhance corporate governance and operational efficiency[41]. - The company has a strong management team with extensive experience in the home decoration and furniture retail industry, contributing to its strategic direction[40]. - The company has established a diversified corporate culture and is expected to leverage synergies with new shareholders in supply chain and real estate operations[43]. - The company held three shareholder meetings during the reporting period, including one annual meeting and two extraordinary meetings[146]. - The company announced the election of new directors, including Zheng Yongda as non-executive director and vice chairman, and Li Jianhong as executive director, during the extraordinary meeting on February 15, 2023[150]. Environmental Responsibility - The company has established a "green environmental management system" to integrate environmental protection into all business operations[159]. - The company has implemented a zero-tolerance policy towards non-green home products and brands, emphasizing environmental responsibility in its operations[162]. - The company has committed to reducing carbon emissions by implementing energy-saving measures during mall construction and promoting energy-efficient technology upgrades[163]. - The company did not report any administrative penalties related to environmental issues during the reporting period[159]. Future Outlook and Growth - The company plans to expand its market presence and enhance its product offerings in the upcoming quarters[126]. - New product development initiatives are underway, focusing on innovative home furnishing solutions to capture market share[126]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its portfolio[126]. - Future guidance suggests a projected revenue growth of approximately 15% year-over-year, driven by strategic marketing efforts[126]. - Overall, the financial outlook remains positive, with a commitment to sustainable growth and shareholder value enhancement[126]. Risks and Challenges - The company acknowledges potential risks from macroeconomic slowdowns and cyclical fluctuations in the real estate industry, which could negatively impact demand in the home decoration and furniture retail sector[132]. - The company’s investment properties are subject to various factors, including macroeconomic growth, urbanization, and housing market policies, which could affect their fair value and future profitability[140].

Financial Performance - Revenue for the first half of 2023 was RMB 5,659,926, a decrease of 18.6% compared to RMB 6,956,620 in the same period of 2022[2] - Gross profit for the first half of 2023 was RMB 3,622,346, with a gross margin of 64.0%, down from 66.7% in the first half of 2022[2] - Profit attributable to owners of the company was RMB 128,196, representing a significant decline of 87.0% from RMB 982,069 in the same period last year[2] - Core profit attributable to owners was RMB 251,260, down 78.0% from RMB 1,143,076 in the first half of 2022, with a core profit margin of 4.4%[2][3] - Other income for the first half of 2023 was RMB 146,906, down from RMB 182,685 in the same period of 2022[6] - The company’s basic and diluted earnings per share were RMB 0.03, a decrease from RMB 0.23 in the first half of 2022[7] - The company reported a net loss from changes in the fair value of investment properties of RMB 296,248, compared to a loss of RMB 226,429 in the previous year[6] - The company reported a total profit attributable to owners of RMB 128.2 million, an 86.9% decrease from RMB 982.1 million in the same period of 2022[53] - Basic and diluted earnings per share for the period were RMB 0.03, consistent with the previous year[16] - The company incurred a total income tax expense of RMB 174,751 thousand for the six months ended June 30, 2023, down from RMB 762,175 thousand in the same period of 2022, representing a decrease of about 77%[33] Assets and Liabilities - Total assets as of June 30, 2023, were RMB 127,647,806, a decrease from RMB 129,482,459 as of December 31, 2022[8] - As of June 30, 2023, total current liabilities decreased to RMB 24,554,106 thousand from RMB 25,361,592 thousand as of December 31, 2022, representing a reduction of approximately 3.2%[10] - Non-current liabilities totaled RMB 45,350,758 thousand as of June 30, 2023, down from RMB 46,118,151 thousand as of December 31, 2022, reflecting a decrease of about 1.7%[10] - Shareholders' equity as of June 30, 2023, was RMB 57,742,942 thousand, slightly down from RMB 58,002,716 thousand as of December 31, 2022, showing a decrease of approximately 0.4%[11] - The company reported a decrease in trade payables and other payables to RMB 12,614,753 thousand from RMB 12,996,449 thousand, a decline of about 2.9%[10] - The company's total liabilities as of June 30, 2023, were RMB 13,148,671 thousand, a slight decrease from RMB 13,552,690 thousand as of December 31, 2022[40] Operational Metrics - The number of self-operated malls decreased to 91 from 94, while the average occupancy rate improved to 85.7% from 85.2%[5] - The total number of malls operated decreased to 372 from 378, with a total operating area of 22,203,217 square meters[5] - The average occupancy rate for self-managed malls was 85.7%, while for managed malls it was 87.7%[67] - The company organized three major promotional events in the first half of 2023, resulting in significant consumer engagement and brand collaboration[70] - Customer satisfaction for home service activities reached 98%, with over 170,000 households served across 276 malls during the reporting period[74] Investment and Capital Expenditure - The company has utilized approximately 89% of the net proceeds from its A-share issuance for designated investment projects and to supplement working capital as of June 30, 2023[81] - The total amount raised from the A-share issuance was RMB 3,222,450,000, with a net amount of RMB 3,050,008,000 after deducting issuance costs[82] - The company has fully invested in several projects, including the Tianjin Beichen Mall and Hohhot Yuquan Mall, with total planned investments of RMB 245,137,000 and RMB 76,825,000 respectively[83] - The total planned investment across all projects is RMB 3.68 billion, with RMB 1.83 billion invested to date[87] Strategic Initiatives - The company is actively exploring new strategies for market expansion and product development, although specific details were not disclosed in the earnings call[21] - The company aims to solidify its market leadership by expanding its mall network and brand portfolio under a "light asset, heavy operation" business model[75] - Future plans include enhancing the full-cycle service for home decoration consumption and establishing a comprehensive service system[75] - The company has implemented a member system to increase customer loyalty, hosting nearly 500 member events in the first half of 2023[73] - The company is focused on digital strategies to enhance long-term competitiveness in the market[75] Governance and Compliance - The board of directors confirmed compliance with the standard code of conduct for securities trading for all directors and supervisors for the six months ending June 30, 2023[79] - The audit committee reviewed the interim results for the six months ending June 30, 2023[88] - The interim report will be published on the Hong Kong Stock Exchange and the company's website[89]