Financial Performance - Revenue for 2023 reached RMB 125.29 billion, a 13% increase from RMB 110.91 billion in 2022[9] - Gross profit for 2023 was RMB 846.64 million, up 44% from RMB 587.43 million in 2022[9] - Net profit for 2023 was RMB 65.68 million, a significant recovery from a net loss of RMB 2.98 billion in 2022[9] - The total assets of the company increased to RMB 63.78 billion in 2023, compared to RMB 60.36 billion in 2022[9] - The group recorded a net loss of RMB 38.6 million in other income for the year ended December 31, 2023, compared to a net gain of RMB 135.6 million in 2022, primarily due to increased fair value losses on listed equity securities[44] - Financial income decreased by approximately 8.2% from RMB 353.4 million in 2022 to RMB 324.3 million in 2023, mainly due to a reduction in interest income from time deposits[53] - The group recorded a net gain of RMB 41.3 million from the sale of subsidiaries for the year ended December 31, 2023, compared to a net loss of RMB 1,423.8 million in 2022[51] - The company recorded a net profit of approximately RMB 65.7 million for the year ended December 31, 2023, compared to a net loss of approximately RMB 2,981.2 million in 2022[55] - The equity attributable to shareholders amounted to approximately RMB 50.9 million, a significant improvement from a loss of approximately RMB 3,040.3 million in the previous year[55] Business Expansion and Development - The company expanded its agricultural segment by introducing new products in the pharmaceutical and baking sugar markets[11] - The company established offline stores for its premium coffee brand 'MMerse' in cities like Shenzhen and Wuhan[11] - The company is actively pursuing market expansion in the black metal and chemical plastic sectors, establishing partnerships with major state-owned enterprises[11] - The company aims to strengthen its digital trade platform by integrating digital innovations and enhancing operational efficiency[11] - The company has established a digital "cloud factory" in the recycled plastics sector, enhancing the entire supply chain from raw material procurement to standardized production management and platform sales[13] - The company has achieved nearly 20 billion yuan in total export value through its market procurement trade pilot program by the end of 2023[16] - The company has built a global textile fabric display center, "Fabric Dock," showcasing tens of thousands of fashionable fabrics from over 100 quality suppliers, enhancing its service capabilities[15] - The company has developed a seafood supply chain operation model that allows fresh catches to reach consumers' tables within hours, establishing partnerships with major fishing ports[14] - The company is actively expanding its international business, leveraging cross-border e-commerce to become a significant distribution hub for goods entering and leaving China[16] - The company has launched international data intelligence search platforms, "TradeData.pro" and "VNmore," covering over 30 countries and serving hundreds of Fortune 500 companies[18] - The company has hosted major international trade events, attracting representatives from 30 countries and resulting in significant collaborations in the apparel and agricultural sectors[15] Supply Chain and Operational Efficiency - The company is focusing on enhancing its supply chain services, providing comprehensive solutions to over 300,000 clients[11] - The company aims to drive trade transformation and supply chain optimization through digital innovation, contributing to China's goal of becoming a trade powerhouse[18] - The core project, Hankou North International Trade City, has established 30 large-scale comprehensive professional market clusters, aiming to create the largest trade logistics platform in China and a world leader[20] - The newly launched business formats, including the New Fabric Wharf and Fisherman's Wharf, have created the most comprehensive online and offline auxiliary material trading base in Hubei, with over 7,000 registered enterprises and a transaction volume exceeding RMB 5.4 billion[22] - The agricultural B2B trading platform, Zhongnong Network, achieved an annual revenue of approximately RMB 40.8 billion, with the sweetener segment generating about RMB 30.9 billion despite market volatility[24] - Zhongnong Network's new customer conversion rate reached 41%, with 1,073 new registered customers and 438 converted customers in 2023[24] - The company signed a strategic cooperation framework agreement with multiple logistics enterprises to enhance the service capabilities of the Hankou North trade logistics hub[20] Corporate Governance and Management - The company is committed to maintaining high standards of corporate governance and risk management through its various committees[77][79] - The management team is equipped with extensive industry experience, which is expected to drive future growth and innovation[76][80] - The company has a strong focus on expanding its market presence and enhancing operational efficiency through strategic management appointments[76][77][79][80] - The board consists of eight members, including five executive directors and three independent non-executive directors, ensuring a diverse range of expertise and experience[168] - The company has established mechanisms to ensure diverse and independent viewpoints are considered in decision-making processes, enhancing governance effectiveness[175] - The board aims for at least one-third of its members to be independent non-executive directors[191] - The company promotes equal employment, training, and career development opportunities for all qualified employees[193] Shareholder and Financial Structure - The company reported a total distributable reserve of approximately RMB 4,248 million as of December 31, 2023, compared to RMB 4,243 million in the previous year[88] - The board did not recommend a final dividend for the year ending December 31, 2023, consistent with the previous year[87] - The company has not proposed any new share issuance rights to existing shareholders as per its articles of association[90] - The company has 15,547,407 unexercised share options outstanding, representing approximately 0.13% of the issued shares as of the report date[95] - The company’s financial statements and condition as of December 31, 2023, are detailed in pages 74 to 207 of the annual report[88] - The company has established a share incentive plan to recognize contributions from eligible employees and to attract suitable personnel for further development[115] - The group plans to continue investing in the Hankou North International Commodity Trading Center project, aiming to enhance its market value and establish it as a major market hub in Central and Western China[129] Risk Management and Compliance - The group has adopted internal controls and risk management policies to ensure compliance with relevant laws and regulations[133] - The company has not experienced any significant events after the reporting period as of the report date[163] - The independent non-executive directors confirmed that the related party transactions were conducted in the ordinary course of business and on normal commercial terms[158] - The company's auditor has issued an unqualified opinion on the related party transactions as per the Hong Kong Listing Rules[159] Employee and Community Engagement - The total number of employees increased to 1,655 as of December 31, 2023, from 1,615 in the previous year, with employee benefits expenditure amounting to approximately RMB 316.5 million[68] - The company made charitable donations of approximately RMB 55,000 during the review year, compared to RMB 53,000 in 2022[127] - The gender distribution among employees is approximately 55% male and 45% female, indicating a balanced gender diversity[193]

Financial Performance - For the fiscal year ending December 31, 2023, total revenue reached RMB 125,290,479 thousand, representing an increase of 13.5% from RMB 110,906,215 thousand in 2022[2] - Gross profit for the year was RMB 846,638 thousand, compared to RMB 587,425 thousand in the previous year, indicating a significant improvement[3] - The company reported a net profit of RMB 65,676 thousand for 2023, a turnaround from a net loss of RMB 2,981,191 thousand in 2022[4] - Basic and diluted earnings per share for 2023 were RMB 0.41, recovering from a loss per share of RMB (24.94) in 2022[3] - Revenue from contracts with customers amounted to RMB 124,891,958 thousand in 2023, compared to RMB 110,551,788 thousand in 2022, indicating a growth of around 13%[23] - The property development and related services segment reported a profit of RMB 77,071 thousand in 2023, up from RMB 20,732 thousand in 2022[22] - The supply chain management and trading segment experienced a loss of RMB 41,699 thousand in 2023, an improvement from a loss of RMB 159,851 thousand in 2022[22] - The company reported a net profit from investment properties of RMB 470,456 thousand in 2023, compared to a loss of RMB 933,998 thousand in 2022[25] - Financial income for 2023 was RMB 324,345 thousand, slightly down from RMB 353,367 thousand in 2022[25] - The company reported a significant increase in advances to suppliers, rising to RMB 9,668,556,000 from RMB 5,533,980,000[39] - The company incurred research and development costs of RMB 12,009,000, down from RMB 22,009,000 in the previous year, reflecting a reduction in R&D spending[32] - The company did not declare or recommend any dividends for the year, consistent with the previous year[38] Assets and Liabilities - Total assets increased to RMB 63,778,674 thousand in 2023, up from RMB 60,359,070 thousand in 2022[2] - Total liabilities rose to RMB 49,571,989 thousand, compared to RMB 46,210,964 thousand in the previous year[2] - The company's net asset value was RMB 14,206,685 thousand, slightly up from RMB 14,148,106 thousand in 2022[2] - Total non-current assets increased to RMB 26,296,774 thousand in 2023 from RMB 25,127,151 thousand in 2022, representing a growth of approximately 4.65%[6] - Current assets rose to RMB 37,481,900 thousand in 2023, compared to RMB 35,231,919 thousand in 2022, marking an increase of about 6.39%[6] - Total current liabilities increased to RMB 40,312,320 thousand in 2023 from RMB 36,674,110 thousand in 2022, reflecting a rise of approximately 10.67%[7] - Net current liabilities were reported at RMB (2,830,420) thousand in 2023, worsening from RMB (1,442,191) thousand in 2022[7] - Total assets net of current liabilities stood at RMB 23,466,354 thousand in 2023, slightly down from RMB 23,684,960 thousand in 2022[7] - Total equity attributable to shareholders increased to RMB 13,804,261 thousand in 2023 from RMB 13,752,058 thousand in 2022, showing a growth of about 0.38%[7] - The group recorded net current liabilities of approximately RMB 2,830,420,000, indicating significant uncertainty regarding the group's ability to continue as a going concern[11] - The group has bank loans and other financial institution loans amounting to RMB 5,527,705,000, secured by various investment properties and other assets[12] Strategic Plans and Outlook - The company plans to focus on market expansion and new product development in the upcoming fiscal year[1] - The financial outlook for 2024 indicates a continued emphasis on improving operational efficiency and profitability[1] - The group plans to implement various strategies to improve supply chain management and trading business revenue, anticipating positive operating cash flow within the next twelve months[11] - The group intends to sell non-core businesses and assets to raise more operational funds[11] - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and customer service[20] - The company aims to expand its market presence through both organic growth and acquisitions, enhancing its intelligent ecosystem[62] Compliance and Governance - The group has adopted new International Financial Reporting Standards effective from January 1, 2023, which did not have a significant impact on the financial statements[13] - The company has adhered to corporate governance codes throughout the year ending December 31, 2023[97] - The audit committee has reviewed the consolidated financial statements for the year ending December 31, 2023, and confirmed they are prepared in accordance with applicable accounting standards and regulations[100] - The independent auditor, Tenjob Hong Kong CPA Limited, has verified the financial figures for the year ending December 31, 2023, ensuring consistency with the consolidated financial statements[101] Market and Operational Developments - The core project, Hankou North International Trade City, has developed 30 large-scale comprehensive specialty markets, aiming to create the largest trade logistics platform in China and a world leader[52] - In 2023, Hankou North was recognized in multiple government reports for successfully hosting 14 international events and supporting the construction of over RMB 100 billion trade markets[52] - The group signed a strategic cooperation framework agreement with several logistics companies to enhance the service level and radiation capacity of Hankou North's trade logistics hub[53] - New business models have been launched, including the largest seafood market in Wuhan and the first chili pepper trading center in Hubei, forming an efficient and low-cost consumer goods supply chain[54] - The platform "Hua Textile Chain" has registered over 7,000 enterprises, with a transaction volume exceeding RMB 5.4 billion, providing comprehensive services for the textile and apparel industry[54] - The group organized multiple large-scale trade fairs, including the Wuhan Commodity Trading Fair and the Global Digital Trade Conference, significantly boosting market activity[55] - Approximately 160,000 square meters of new retail space was added with nearly 100 new stores opening in various sectors, including hotel supplies and smart home products[55] Employee and Welfare Information - The total number of employees increased to 1,655 as of December 31, 2023, from 1,615 in the previous year[95] - Employee welfare expenses for the year amounted to approximately RMB 316.5 million, slightly down from RMB 321.6 million in the previous year[95] Financial Health Indicators - The group's net debt ratio decreased from 48.6% as of December 31, 2022, to 28.1% as of December 31, 2023, reflecting improved financial health[88] - The group's cash and cash equivalents were approximately RMB 1,783.0 million as of December 31, 2023, an increase from approximately RMB 1,341.3 million in 2022, indicating stable cash levels[86] - The group has provided financial guarantees amounting to approximately RMB 292.0 million as of December 31, 2023, compared to RMB 331.4 million as of December 31, 2022[93]

Market Demand and Business Growth - In the first half of 2023, Zall Smart Commerce Group reported a recovery in the commodity market demand, providing favorable conditions for the growth of its main business[14]. - Daily foot traffic at the newly developed commercial towns in HanKouBei exceeds 30,000, contributing to regional consumption growth[15]. - The group hosted nearly 100 promotional events and trade fairs, enhancing market activity and consumer engagement[25]. - The company plans to launch new projects such as fashion shows and lifestyle exhibitions to enhance market upgrades and create consumption hubs in Hubei Province[17]. Digital Transformation and Technology Integration - The company has established a digital service platform for the textile and apparel industry, "Huafang Key," in collaboration with local state-owned enterprises, which has been recognized as a national e-commerce demonstration enterprise[14]. - The group is leveraging big data, AI, and blockchain technologies to improve transaction efficiency and supply chain services[10]. - Zall Smart Commerce aims to enhance its B2B trading services and supply chain solutions through digital technology cloud services[10]. - The digital trade data platform evolved from DataPro to TradeData.pro, expanding its global market reach through diversified online sales strategies[32]. - The company plans to enhance its digital technology research and development, focusing on "new trade methods" utilizing big data, artificial intelligence, and blockchain technologies[33]. Supply Chain and Logistics Development - Zall Smart Commerce is focusing on building a modern supply chain system, integrating digital technology and logistics to connect high-quality agricultural and industrial products to Wuhan[15]. - The HanKouBei market, as the largest modern commercial logistics platform in China, is undergoing optimization and upgrading, aiming to become a national trade logistics center[15]. - The company has provided comprehensive supply chain services to over 300,000 customers, focusing on industries such as agriculture, steel, and chemicals[18]. - The company has established a customized SaaS system for the steel industry, covering all business scenarios and serving nearly 500 large enterprises[20]. - The company is enhancing its digital economy integration with traditional industries, providing comprehensive services such as quality inspection, logistics, and supply chain finance[20]. Financial Performance and Revenue Growth - In the first half of 2023, the group achieved a revenue of approximately RMB 19.2 billion, primarily benefiting from the rise in sugar prices and stable growth in the feed and chili sectors[26]. - Total revenue increased from approximately RMB 49.93 billion for the six months ended June 30, 2022, to approximately RMB 54.93 billion for the six months ended June 30, 2023, marking a growth of about 10%[38]. - The revenue from supply chain management and trading business contributed approximately 99.5% of the total revenue, reflecting a year-on-year increase of about 10%[39]. - The group’s core sweetener segment generated revenue of about RMB 15.7 billion, with a customer conversion rate of 75% from the newly registered customers on the platform[26]. - The group’s e-commerce platform for chemicals and plastics achieved a revenue of approximately RMB 11.4 billion by June 30, 2023, with a cumulative customer count of 50,541[30]. Profitability and Cost Management - Gross profit increased by approximately 37.6% from RMB 290.4 million to RMB 399.5 million, with a gross profit margin rising from 0.6% to 0.7%[45]. - Selling and distribution expenses increased by approximately 17.8% from RMB 88.5 million to RMB 104.2 million, primarily due to higher employee and logistics costs[48]. - Administrative and other expenses decreased by approximately 15.2% from RMB 248.1 million to RMB 210.4 million[49]. - Net profit for the six months ended June 30, 2023, was approximately RMB 37.2 million, an increase of about 19.8% from RMB 31.0 million[57]. Intellectual Property and Innovation - As of June 30, 2023, the company has accumulated 140 patents and 199 software copyrights, totaling 489 intellectual property rights[20]. - The company has been recognized as one of the top 100 enterprises in the industrial internet sector, reflecting its commitment to high-quality development[14]. Employee and Corporate Governance - The group employed a total of 1,734 full-time employees as of June 30, 2023, with employee benefit expenses amounting to approximately RMB 149.3 million for the six months ending June 30, 2023, compared to RMB 157.4 million for the same period in 2022[71]. - The company has complied with all corporate governance codes as of June 30, 2023[159]. - All directors have adhered to the securities trading standards as per the listing rules for the six months ending June 30, 2023[160]. Investment and Asset Management - The company is actively managing its liquidity needs and exploring additional funding sources, including bond issuance and asset sales[59]. - The company plans to increase investments in the market through self-funding, bank loans, and bond issuance, focusing on upgrading the Hankou North International Trading Center and enhancing service levels through professional market management[67]. - The company has completed the sale of all non-core projects except for the Hankou North Zhuoer Life City Phase II, which has a remaining area of approximately 43,000 square meters available for sale[161]. Shareholder Structure and Equity - As of June 30, 2023, the company has a total of 12,399,505,800 shares issued[151]. - Mr. Wen Zhi holds 8,619,250,868 shares, representing 69.51% of the total shares[150]. - The company’s major shareholder, Zhaor Development Investment, owns 7,309,850,268 shares, accounting for 58.95%[155]. - The company’s equity structure reflects significant control by a few major shareholders, indicating potential influence over corporate decisions[154].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 54,931,545 thousand, an increase of 10.0% compared to RMB 49,930,636 thousand for the same period in 2022[2]. - Gross profit for the same period was RMB 399,453 thousand, up from RMB 290,377 thousand, reflecting a significant increase in profitability[2]. - Operating profit increased to RMB 211,085 thousand from RMB 171,057 thousand, indicating a growth of 23.4% year-over-year[3]. - Net profit for the period was RMB 37,152 thousand, compared to RMB 31,002 thousand in the previous year, representing a growth of 19.5%[5]. - Basic and diluted earnings per share were both RMB 0.18, compared to RMB 0.00 for the same period last year[3]. - Total comprehensive income for the period was RMB 44,964 thousand, down from RMB 71,608 thousand in the previous year, primarily due to fluctuations in foreign exchange[5]. - The company reported a total revenue of RMB 54,931,545 thousand for the six months ended June 30, 2023, compared to RMB 49,930,636 thousand for the same period in 2022, marking an increase of about 10.0%[22]. - The group reported a net loss of approximately RMB 36.5 million for the six months ended June 30, 2023, compared to a net income of approximately RMB 101.6 million for the same period in 2022, primarily due to changes in fair value of listed equity securities and financial products[84]. Assets and Liabilities - Cash and cash equivalents as of June 30, 2023, amounted to RMB 1,491,709 thousand, compared to RMB 1,341,318 thousand at the end of the previous year[8]. - The company reported a total of RMB 34,323,110 thousand in current assets, slightly down from RMB 34,851,903 thousand in the previous year[8]. - As of June 30, 2023, the company's net current liabilities amounted to approximately RMB 2,532,189,000, an increase from RMB 1,442,191,000 as of December 31, 2022, representing a year-over-year increase of 75.7%[11]. - The company's total liabilities, including trade and other payables, reached RMB 37,190,581,000, compared to RMB 36,634,273,000, marking an increase of 1.5%[11]. - The total value of assets minus current liabilities was reported at RMB 22,880,255,000, down from RMB 23,684,960,000, reflecting a decrease of 3.4%[11]. - The company's total assets were RMB 37,229,633,000, compared to RMB 36,674,110,000, reflecting an increase of 1.5%[11]. - The total interest-bearing borrowings decreased by approximately 16.9% from RMB 18,261.0 million as of December 31, 2022, to RMB 15,170.5 million as of June 30, 2023[96]. - The group reported total liabilities of RMB 15,194,069,000 as of June 30, 2023, compared to RMB 18,274,968,000 as of December 31, 2022, indicating a reduction in total liabilities[61]. Revenue Streams - Revenue from supply chain management and trading business reached RMB 54,678,564,000, up from RMB 49,716,755,000 year-over-year[16]. - The revenue from sales of goods and related services for the six months ended June 30, 2023, was RMB 64,112,000, compared to RMB 36,602,000 for the same period in 2022, representing a significant increase[16]. - The reported revenue for the Property Development and Related Services segment was RMB 54,918,454 thousand for the six months ended June 30, 2023, compared to RMB 49,926,465 thousand for the same period in 2022, representing an increase of approximately 10.0%[20]. - Revenue from supply chain management and trading business contributed approximately 99.5% of the total revenue, reflecting a 10.0% increase compared to the same period last year[77]. Investment and Financial Strategy - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[1]. - The company is actively reviewing its capital structure and negotiating with banks for refinancing options to improve its financial position[12]. - The company plans to continue selling non-core businesses and assets to raise additional funds[12]. - The company aims to generate positive operating cash flow through improved supply chain management and trading business income[12]. - The company is focusing on market expansion and new product development as part of its future strategy, although specific figures were not disclosed in the conference call[24]. - The company plans to continue investing in digital technology R&D, focusing on big data, artificial intelligence, and blockchain[72]. Operational Efficiency - The company has implemented various strategies to enhance its supply chain management and trading business revenue[12]. - The company's digital trading platform, CIC, generated a revenue of approximately RMB 1.5 billion during the reporting period[70]. - The company's SaaS system service improved labor efficiency by 12% and reduced energy consumption by 30%[70]. - The company aims to enhance operational efficiency through further development in supply chain management and trade business[71]. Employee and Governance - Employee costs for the six months ended June 30, 2023, were RMB 149,345 thousand, a decrease from RMB 157,392 thousand in the same period of 2022, reflecting a reduction of approximately 5.7%[29]. - The group employed a total of 1,734 full-time employees as of June 30, 2023, compared to 1,708 employees as of June 30, 2022[104]. - The company has adopted corporate governance practices in line with the Hong Kong Stock Exchange's requirements, confirming adherence to all governance codes as of June 30, 2023[106]. - The audit committee has reviewed the group's unaudited interim results for the six months ended June 30, 2023, ensuring compliance with accounting principles and internal controls[109]. Market Presence and Development - The group has established 30 large-scale specialized market clusters under the Hankou North International Trade City, with 32,000 stable operating merchants[62]. - The group has implemented a strategy combining online and offline operations, enhancing its market presence and driving transformation[62]. - The government of Hubei Province has highlighted the success of Hankou North in hosting international events, supporting its development as a key trading market[63]. - The group organized nearly 100 promotional events, including the 2023 Wuhan Commodity Festival and various seasonal shopping festivals[64].

Financial Performance - Revenue for 2022 reached RMB 110,906,215 thousand, an increase of 6.4% compared to RMB 104,551,813 thousand in 2021[5] - Gross profit for 2022 was RMB 587,425 thousand, down 33.7% from RMB 885,755 thousand in 2021[5] - The net loss for the year was RMB 2,981,191 thousand, compared to a net loss of RMB 1,450,126 thousand in 2021[5] - The total assets amounted to RMB 60,359,070 thousand, slightly up from RMB 59,275,001 thousand in 2021[5] - Revenue from supply chain management and trading business contributed approximately 99.6% of total revenue, increasing from RMB 103,607.8 million in 2021 to RMB 110,409.9 million in 2022[47] - Rental income from investment properties decreased by approximately 54.6% from RMB 530.6 million in 2021 to RMB 240.9 million in 2022, primarily due to COVID-19 impacts[48] - Property sales and related services revenue decreased by approximately 59.1% from RMB 261.1 million in 2021 to RMB 106.8 million in 2022, attributed to a reduction in the area of properties delivered[52] - Other net income increased from RMB 15.2 million in 2021 to RMB 135.6 million in 2022, mainly due to a reduction in fair value losses on listed equity securities[55] - The company recorded an impairment loss on goodwill of approximately RMB 267.1 million in 2022, compared to RMB 334.0 million in 2021[60] - The expected credit loss impairment (net of reversals) was approximately RMB 29.1 million in 2022, significantly lower than RMB 306.3 million in 2021[59] - Financial income increased by approximately 58.3% from RMB 223.3 million in 2021 to RMB 353.4 million in 2022, primarily due to increased interest income from time deposits[64] - Financial costs decreased by approximately 12.3% from RMB 1,037.0 million in 2021 to RMB 910.0 million in 2022, attributed to a reduction in interest expenses and an increase in capitalized amounts[66] - As of December 31, 2022, net current liabilities were approximately RMB 1,442.2 million, up from RMB 446.5 million in 2021, and total equity attributable to shareholders was approximately RMB 13,752.1 million[69] - Cash and cash equivalents as of December 31, 2022, were approximately RMB 1,341.3 million, compared to RMB 1,095.8 million in 2021, indicating stable cash levels[70] - Total interest-bearing borrowings increased by approximately 3.1% from RMB 17,709.4 million in 2021 to RMB 18,261.0 million in 2022[72] - The net debt ratio rose from 46.1% in 2021 to 48.6% in 2022, calculated as interest-bearing borrowings and lease liabilities minus cash and cash equivalents divided by total equity attributable to shareholders[73] Business Operations and Strategy - The company served over 300,000 physical enterprise customers through its digital trade platforms, enhancing supply chain services[9] - The company aims to strengthen its digital trade platform construction amid the rapid development of the global digital economy[9] - The company has successfully served nearly 500 large state-owned and private enterprises through its Zhaogang Chain technology[11] - The company’s international trade platform, HanKouBei, has maintained an average import and export growth rate of 46% over the past five years, with a total export value exceeding $10.7 billion[19] - The company has established a large live streaming base in HanKouBei, enhancing the digital economy and integrating online and offline consumption experiences[15] - The company has launched the "overseas warehouse stocking" model, making HanKouBei one of the most active regions for foreign trade development in Central China[19] - The company’s TradeData.Pro platform has registered over 14,000 users and provides digital trade data analysis for over 30 countries, with data product sales increasing by 155%[21] - The company is actively promoting the digital transformation of the offline wholesale market, aiming to enhance economic benefits through live streaming[12] - The company plans to introduce more high-quality supply chain resources into HanKouBei, focusing on automotive, seafood, and clothing supply chains[16] - The company has hosted 13 consecutive HanJiao fairs, enhancing its open platform and market presence[15] - The company’s digital trade scale is expanding, with a focus on improving the quality of digital trade[12] - The company aims to become a globally influential shopping park and a leading supply chain management center in the future[18] - The agricultural products B2B platform, Zhongnong Network, achieved operating revenue of RMB 43 billion during the reporting period[31] - The "Mush Sweet Mall" saw a year-on-year increase in transaction volume of approximately 85%, with a customer conversion rate of about 62%[31] - The company established partnerships with 29 financial institutions, providing over RMB 3 billion in financial support to more than 500 clients through the Zhongnong Network platform[31] - The company is in the process of acquiring the remaining 3% of the target equity, expected to be completed by December 31, 2023[161] Corporate Governance and Management - The company reported significant management experience in e-commerce and international trade, with executives having over 10 years of relevant industry experience[96][97] - The company has a strong focus on technological innovation and business model development within its subsidiaries, particularly in e-commerce[97] - The independent non-executive directors bring over 25 years of auditing, accounting, and financial experience, enhancing corporate governance[100][101] - The company has established a robust leadership team with diverse backgrounds in finance, law, and technology, contributing to strategic decision-making[101][103] - The executives have advanced degrees, including EMBA qualifications, indicating a high level of expertise in management and business administration[96][101] - The company emphasizes risk management and compliance through its independent board committees, ensuring accountability[100][103] - The company has a clear structure of ownership with significant stakes held by a few key individuals and entities[200] Share Options and Incentives - A total of 45,667,950 stock options remained unexercised under the stock option plan as of December 31, 2022[89] - The group plans to continue its stock option plan to incentivize eligible participants for their contributions[89] - The group has adopted a share award plan to recognize contributions from employees and retain talent for further development[90] - The maximum number of shares that can be issued under the share incentive plan is capped at 10% of the total issued shares as of the adoption date, equating to 1,178,282,580 shares[149] - The company granted a total of 16,680,000 incentive shares under the share incentive plan during the fiscal year ending December 31, 2022[157] - The share incentive plan allows for the issuance of shares to selected employees without any payment required for the awarded shares[153] - The share incentive plan will terminate on the 10th anniversary of its adoption date or on an earlier date determined by the board, without affecting any rights of selected employees[155] Market Presence and Future Plans - The group plans to continue investing in the Hankou North International Commodity Trading Center project, aiming to enhance its market value and establish it as a leading modern trade logistics platform in China and globally[174] - The group intends to expand its investment properties and logistics facilities, focusing on improving supply chain infrastructure and generating additional operating cash flow[174] - The group will explore various strategies to improve property sales, supply chain management, and trade business revenue, as well as rental income from investment properties[174] - The group is actively reviewing its capital structure and may consider issuing bonds or new shares to raise additional funds when appropriate[174] Shareholder Information - Mr. Yan Zhi holds a controlling interest in the company with 8,619,250,868 shares, representing approximately 69.51%[197] - Major shareholder Zhuoer Development Investment holds 7,309,850,268 shares, accounting for 58.95% of the total shares[198] - Zhuoer Holdings, also fully owned by Mr. Yan, possesses 1,309,400,600 shares, which is 10.56% of the total[198] - China Huarong Asset Management Co., Ltd. has a controlled interest in 685,689,000 shares, representing 5.53%[198] - The total number of shares held by directors and senior management is minimal, with most holdings below 1%[197]

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 110,906,215 thousand, an increase of 6.4% from RMB 104,551,813 thousand in 2021[2] - Gross profit for the same period was RMB 587,425 thousand, down 33.7% from RMB 885,755 thousand in 2021[3] - The net loss for the year was RMB 2,981,191 thousand, compared to a net loss of RMB 1,450,126 thousand in 2021, representing a 105.5% increase in losses[4] - Basic and diluted loss per share for 2022 was RMB (24.94), compared to RMB (11.27) in 2021[3] - The total comprehensive loss for the year was RMB 2,900,611 thousand, compared to RMB 1,460,515 thousand in 2021[5] - The reported loss for 2022 was RMB (3,222,697) thousand, compared to a loss of RMB (1,608,811) thousand in 2021, indicating a significant increase in losses[29] Assets and Liabilities - Total assets as of December 31, 2022, amounted to RMB 60,359,070 thousand, a slight increase from RMB 59,275,001 thousand in 2021[2] - Total liabilities increased to RMB 46,210,964 thousand in 2022 from RMB 42,495,660 thousand in 2021, marking an increase of 8.0%[2] - Non-current assets, including investment properties, were valued at RMB 25,127,151 thousand as of December 31, 2022, down from RMB 26,094,178 thousand in 2021[6] - The company’s net asset value decreased to RMB 14,148,106 thousand in 2022 from RMB 16,779,341 thousand in 2021[2] - Current liabilities totaled 36,634,273 thousand RMB, up from 31,222,568 thousand RMB in the previous year, indicating a significant increase in obligations[8] - The total equity attributable to shareholders decreased to 13,752,058 thousand RMB from 16,454,723 thousand RMB, showing a reduction in shareholder value[10] Revenue Segments - Revenue from supply chain management and trading business reached RMB 110,409,906 thousand in 2022, up from RMB 103,607,840 thousand in 2021, indicating a growth of about 6.9%[22] - The property development and related services segment generated revenue of RMB 106,751 thousand in 2022, a significant decrease from RMB 261,125 thousand in 2021, reflecting a decline of approximately 59%[22] - The company reported a net loss of RMB 933,998 thousand in the property development segment for 2022, compared to a loss of RMB 240,711 thousand in 2021[27] - The supply chain management and trading segment reported a net profit of RMB 20,732 thousand in 2022, down from RMB 71,431 thousand in 2021, representing a decline of about 70.9%[27] Cash Flow and Financing - The group plans to generate positive operating cash flow within the next twelve months through improved supply chain management and trade business revenue, as well as rental income from investment properties[14] - The group has bank loans and other financial institution loans amounting to RMB 4,357,140,000, secured by various investment properties and assets, and believes it has sufficient collateral to support the renewal or refinancing of most existing borrowings[15] - The group is actively reviewing its capital structure and negotiating with banks and other financial institutions regarding the renewal or refinancing of existing borrowings[14] - The group plans to sell non-core businesses and assets to raise additional operating funds[14] Employee and Operational Metrics - Employee costs for 2022 totaled RMB 321,629 thousand, a decrease from RMB 331,299 thousand in 2021[35] - The total number of employees as of December 31, 2022, was 1,615, down from 1,825 in 2021[106] - The company’s total designated non-current assets in China were valued at RMB 24,675,372 thousand in 2022, down from RMB 25,651,762 thousand in 2021[31] Market and Business Development - The group has established a comprehensive market cluster with 30 major specialized markets, currently hosting 32,000 stable operating merchants[62] - The group is actively promoting the integration of domestic and foreign trade, showcasing its vitality at the China International Import Expo[64] - The company is focusing on enhancing its logistics and warehousing capabilities to support its growth strategy in the consumer goods wholesale market[24] - The company is innovating in the agricultural sector by exploring a new service model that integrates "industry big data + digital order trading + supply chain finance + smart agriculture" to support rural revitalization[68] Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the consolidated financial statements for the year ended December 31, 2022[111] - The company has adhered to the corporate governance code throughout the year ended December 31, 2022[108] - There were no significant events occurring after the reporting period up to the date of the announcement[105]

Digital Trade and E-commerce - Zall Smart Commerce Group Ltd. aims to become a global leader in digital trade, focusing on B2B platforms for various industries including consumer goods, agriculture, and chemicals[3]. - The company aims to enhance its digital trade platform's capabilities in digitalization, intelligence, and internationalization, focusing on reducing costs and increasing efficiency across various operational aspects[12]. - The integration of online and offline operations has been emphasized, with the company promoting a hybrid model that combines wholesale and experiential consumption[14]. - The company is integrating wholesale and experiential consumption by developing themed commercial districts, including the recently opened Wan Guo Town and Carnival Theme Park[9]. - The "Zhuoer Purchase" platform has established over 200 shared live streaming rooms and 60 flagship live streaming rooms, facilitating a total transaction amount of RMB 330 million during the "618" shopping festival[14]. Operational Performance - In the first half of 2022, despite external challenges such as the pandemic and commodity market fluctuations, the company improved operational efficiency through digital technology and refined management[7]. - The company has been recognized in the "Forbes Global 2000" list and ranked 132nd in the "2022 Fortune China 500" list, reflecting its influence in the digital trade sector[12]. - The company is focusing on digital transformation and optimizing logistics and warehousing to improve operational efficiency and customer experience[19]. - The company plans to improve its financial condition by enhancing property sales revenue and managing trade receivables more effectively[174]. Financial Performance - The company's revenue for the six months ended June 30, 2022, was approximately RMB 49,930.6 million, a decrease of 0.5% from RMB 50,160.3 million for the same period in 2021[30]. - Revenue from supply chain management and trading business contributed approximately 99.6% of the total revenue, remaining stable compared to the previous year[31]. - The company reported a net profit of RMB 30,865 for the six months ended June 30, 2022, compared to RMB 12,651,484 for the same period in 2021, indicating a significant decline[164]. - The company experienced a significant decline in property sales and related services revenue, which dropped to RMB 36,602,000 from RMB 169,152,000, representing a decrease of approximately 78.4%[178]. - The company recorded a profit of approximately RMB 31.0 million for the six months ended June 30, 2022, a decrease of approximately 4.3% from RMB 32.4 million for the six months ended June 30, 2021[48]. Market Expansion and Future Plans - Future plans include enhancing the distribution network and building a significant modern supply chain center to improve product variety, pricing, and efficiency[9]. - The company plans to further expand into other sectors through organic growth or acquisitions to enhance its smart ecosystem and operational efficiency[22]. - The construction of the Hankou North theme park and other commercial areas is expected to be completed within the year, enhancing the company's market presence[16]. - The company plans to continue increasing investment in digital technology research and development, focusing on "new trade methods" using big data, artificial intelligence, and blockchain[24]. Challenges and Adjustments - The impact of the COVID-19 pandemic has led the company to strengthen its online and offline operational model, enhancing digital trade capabilities[25]. - The company has initiated the "online and offline dual supply guarantee" model to support upstream and downstream enterprises during the pandemic[10]. - The group has not made any significant acquisitions or disposals of subsidiaries, associates, or joint ventures in the six months ended June 30, 2022, and will continue to seek opportunities to divest non-core assets to enhance liquidity[56]. Shareholder and Governance Information - The company adopted a share incentive plan on December 10, 2021, aimed at rewarding eligible employees and retaining talent for operational and developmental support[128]. - The group has provided financial guarantees amounting to approximately RMB 170 million for third parties as of June 30, 2022, unchanged from December 31, 2021[59]. - The company has adopted corporate governance practices in compliance with the Hong Kong Stock Exchange's rules and has maintained adherence to these practices[146]. - Major shareholders include Zall Development Investment with 7,309,850,268 shares (59.03%) and Zall Holdings with 1,309,400,600 shares (10.57%) as of June 30, 2022[139].

Financial Adjustments - The company reported a significant adjustment in rental income from investment properties, correcting approximately RMB 12.4 million due to prior overstatement[1] - Legal fee provisions were reclassified, resulting in an adjustment of approximately RMB 88.5 million to administrative and other expenses[2] - The net gain from the sale of subsidiaries was corrected, leading to a reduction of approximately RMB 3.6 million[2] - The company adjusted the net gain from the sale of associates, correcting an overstatement of approximately RMB 178.1 million[2] - Expected credit losses were reclassified, impacting financial assets by approximately RMB 14.4 million[2] - Trade and other receivables impairment losses were renamed and reclassified, totaling approximately RMB 291.9 million[2] - The adjustments collectively reflect the comprehensive impact of prior misclassifications and overstatements across various financial categories[4] Financial Losses - The company recognized a fair value loss on financial assets of approximately RMB 2.5 million for the year ended December 31, 2021[3] - The company incurred a loss of approximately RMB 20.9 million related to the write-off of interests in a sold associate[3] Acquisitions - The company completed a transaction to acquire 3% equity in a subsidiary for approximately RMB 77.8 million[4]

Financial Performance - Total revenue for 2021 was RMB 104,551,813, an increase from RMB 72,769,426 in 2020, representing a growth of approximately 43.6%[6] - Gross profit for 2021 was RMB 885,755, down from RMB 1,233,731 in 2020, resulting in a gross margin of 0.85%, compared to 1.7% in the previous year[6] - The net loss for 2021 was RMB (1,450,126), slightly higher than the net loss of RMB (1,349,238) in 2020, with basic and diluted loss per share at RMB (11.27) for 2021[6] - The revenue for the year ended December 31, 2021, increased by approximately 43.7% to RMB 104,551.8 million, up from RMB 72,769.4 million in the previous year, primarily due to significant growth in supply chain management and trade business[38] - As of December 31, 2021, the company achieved operating income of approximately RMB 30.1 billion, representing a year-on-year growth of about 78%[25] - The revenue from supply chain management and trading business contributed approximately 99.1% to the total revenue, amounting to RMB 103,607.8 million for the year ended December 31, 2021, up from RMB 71,433.7 million in 2020, primarily due to increased revenue from key subsidiaries[39] Assets and Liabilities - Non-current assets decreased to RMB 26,094,178 in 2021 from RMB 32,543,379 in 2020, while current assets increased to RMB 33,180,823 from RMB 29,584,551[7] - Total assets decreased to RMB 59,275,001 in 2021 from RMB 62,127,930 in 2020, while total liabilities decreased to RMB 42,495,660 from RMB 43,793,474[7] - As of December 31, 2021, the group's current liabilities amounted to approximately RMB 446.5 million, down from RMB 3,668.3 million in 2020, and net assets were approximately RMB 16,779.3 million, down from RMB 18,334.5 million[58] - The total interest-bearing borrowings decreased by approximately 14.4% from RMB 20,679.6 million on December 31, 2020, to RMB 17,709.4 million on December 31, 2021[60] - The net debt ratio decreased from 71.8% on December 31, 2020, to 46.1% on December 31, 2021, primarily due to the reduction in total interest-bearing borrowings[62] Strategic Initiatives - The company is focusing on becoming a global digital trade platform, leveraging technologies such as blockchain, big data, and artificial intelligence to enhance supply chain services[8] - The company aims to optimize market infrastructure and create a favorable business environment for merchants at Hankou North, enhancing its role in the national supply chain service system[9] - The company is committed to driving high-quality development in international trade through comprehensive foreign trade and value-added services[8] - The company is focused on upgrading the Wuhan International Trade City and related projects, aiming to create the largest modern commercial logistics cluster in China and a leading global hub[11] - The company aims to build the world's largest digital trade platform by leveraging accumulated industry data and driving digital transformation[16] Market and Product Development - In 2021, the company integrated innovative supply chain services to support domestic and international trade, enhancing its service offerings in warehousing, logistics, and finance[12] - The company plans to expand its product categories and service capabilities, focusing on coffee and dried seasoning products to enhance business quality and profitability[22] - The company plans to expand its trade categories to include new commodities such as iron, copper, and lead, as well as agricultural products like chili peppers[26] - The company has launched a blockchain trading platform in the agricultural sector, which has been promoted nationally as an exemplary case[14] Digital Economy and Technology - The company has applied for 213 patents, with 42 granted, focusing on the development of digital technologies such as blockchain, artificial intelligence, and big data[14] - The company has upgraded its SaaS cloud services and opened new warehouses to enhance the digitalization of the steel industry[12] - The company is actively pursuing strategic partnerships to promote digital trade and economic development globally[16] - The company’s digital economy initiatives are projected to contribute significantly to the global GDP, with digital trade being a key driver of this growth[14] Events and Conferences - The company successfully hosted the 2021 Wuhan (Hankou North) Commodity Trading Fair and the 2021 Global Digital Trade Conference, attracting participation from 103 countries and 8,491 enterprises[9] - The 12th Hankou Fair in October 2021 saw participation from 8,491 enterprises and an estimated transaction volume of approximately RMB 402.8 billion, showcasing 39 themed product exhibition halls[20] Corporate Governance - The company is committed to maintaining high standards of corporate governance and has adopted the Corporate Governance Code as per the Stock Exchange's requirements[161] - The board consists of nine members, including six executive directors and three independent non-executive directors, ensuring a diverse range of expertise[163] - The independent non-executive directors have confirmed their independence and contribute constructively to the company's strategy and policies[168] - The company has established a Risk Management Committee on March 31, 2017, to identify, discuss, and review any risks or potential risks, advising the board on overall risk management strategies[186] Employee and Shareholder Relations - The company has adopted a new share option plan to incentivize eligible participants, with 45,667,950 options unexercised as of December 31, 2021[72] - The company aims to attract and retain qualified employees through a Share Award Scheme initiated on December 10, 2021, which provides shares as rewards[119] - The company emphasizes maintaining good relationships with employees, suppliers, and customers to achieve its current and long-term goals[123] Future Outlook - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share by 2025[77] - The company has set a performance guidance of 10% revenue growth for the next quarter[78] - New product launches are expected to contribute an additional $100 million in revenue over the next fiscal year[75] - A strategic acquisition of a competitor is anticipated to enhance the company's market position and increase revenue by 20%[77]

Digital Trade and E-commerce - Zall Smart Commerce Group aims to become a leading global digital trade platform, focusing on B2B transactions and supply chain services using digital technologies like big data and AI[4]. - The company is committed to integrating traditional commerce with e-commerce live streaming, showing initial success in this area[7]. - The company is focusing on digital trade as a key area to optimize production and improve resource integration, enhancing overall production efficiency[10]. - The company aims to leverage digital technologies to support industry innovation and structural upgrades, enhancing trade efficiency and reducing costs for businesses[21]. - The company is expanding its logistics capabilities and enhancing its digital trading platform in the Tianjin region, aiming to become a benchmark for digital commodity trading[15]. Financial Performance - The company’s total revenue for Zhongnong Network was approximately RMB 24.5 billion as of June 30, 2021[16]. - The company reported a significant reduction in financing costs to RMB 332,689 thousand from RMB 467,640 thousand, a decrease of approximately 29.0%[173]. - Revenue for the six months ended June 30, 2021, was RMB 50,160,278 thousand, compared to RMB 35,763,064 thousand for the same period in 2020, representing an increase of approximately 40.3%[173]. - Gross profit for the period was RMB 606,608 thousand, up from RMB 561,411 thousand in the previous year, indicating a growth of about 8.0%[173]. - Net profit for the six months ended June 30, 2021, was approximately RMB 32.4 million, with profit attributable to equity shareholders decreasing by approximately 89.4% to approximately RMB 30.9 million[45]. Supply Chain and Trading - The company established "Zalul International Trade Group" to provide comprehensive foreign trade and value-added services for import and export enterprises[10]. - Revenue from supply chain management and trading business contributed approximately 98.7% to the total revenue, significantly increasing due to improved production and higher transaction volumes on the platform[28]. - The company’s agricultural e-commerce platform, Zhongnong Network, generated revenue of approximately RMB 19.1 billion from the sugar segment in the first half of 2021[16]. - Supply chain management and trading business revenue increased significantly to RMB 49,527,936,000, compared to RMB 34,956,298,000 in the prior year, marking an increase of approximately 41.7%[196]. - The Supply Chain Management and Trading segment engages in the trading of agricultural products, chemical materials, plastics, consumer goods, and both ferrous and non-ferrous metals, while also providing trade-related financial services[199]. Market Expansion and Development - The construction of 12 major projects at the upgraded "Wuhan International Trade City" is progressing smoothly, aiming to establish a leading trade logistics platform[7]. - The "Hankou North International" received approval to become one of the first second-hand car export enterprises in Wuhan, presenting new development opportunities[10]. - The company is leveraging its trading ecosystem to connect domestic and international resources, focusing on wholesale markets and commodity trading as key entry points[8]. - The establishment of the World Commodity Smart Trading Center in Singapore won a gold award at the 2021 Asia-Pacific Stevie Awards, highlighting the company's commitment to international market opportunities[10]. - The group plans to improve cash flow by enhancing property sales revenue and trade receivables collection, aiming for positive operating cash flow in the next twelve months[192]. Corporate Governance and Shareholder Information - The company has adopted corporate governance practices in compliance with the listing rules and has adhered to all relevant codes during the reporting period[163]. - The company has entered into a non-competition agreement with its controlling shareholders to avoid direct competition in the market[167]. - Major shareholder Zall Development Investment owns 6,609,022,268 shares, accounting for 56.09% of total shares[161]. - The company holds 6,902,684,268 shares, representing 58.58% of total shares as of June 30, 2021[156]. - The group has a total of 45,667,950 unexercised share options under the stock option plan, which represents approximately 0.39% of the company's issued shares as of the report date[64]. Employee and Operational Metrics - As of June 30, 2021, the group employed a total of 1,849 full-time employees, a decrease from 1,944 employees as of June 30, 2020[60]. - Employee benefit expenses for the six months ended June 30, 2021, were approximately RMB 161.4 million, compared to RMB 155.3 million for the same period in 2020, reflecting an increase of about RMB 11.9 million[60]. - The group is actively seeking opportunities to sell non-core assets and businesses to enhance liquidity and focus resources on core operations[53]. - The group plans to increase investments in the market through self-funding, bank loans, and bond issuance to upgrade the Hankou North International Trading Center[54]. - The group is monitoring foreign exchange fluctuations closely, expecting no significant impact on its business from currency rate changes[51].