Group 1 - The London Metal Exchange (LME) reported a decrease in copper inventory by 3,575 tons, totaling 170,750 tons [1] - Aluminum inventory decreased by 2,525 tons, bringing the total to 390,925 tons [1] - Nickel inventory increased by 90 tons, reaching 202,098 tons [1] Group 2 - Zinc inventory saw a reduction of 4,075 tons, now at 156,725 tons [1] - Lead inventory decreased by 600 tons, totaling 245,750 tons [1] - Tin inventory also decreased by 85 tons, now at 2,655 tons [1]

Summary of LME Non-Ferrous Metal Inventory Report Core Insights - The London Metal Exchange (LME) reported changes in non-ferrous metal inventories, indicating fluctuations in supply levels across various metals [1] Inventory Changes - Copper inventory stands at 170,750 tons, reflecting a decrease of 3,575 tons [1] - Aluminum inventory is at 390,925 tons, down by 2,525 tons [1] - Nickel inventory has increased to 202,098 tons, with a rise of 90 tons [1] - Zinc inventory is recorded at 156,725 tons, showing a decrease of 4,075 tons [1] - Lead inventory is at 245,750 tons, down by 600 tons [1] - Tin inventory totals 2,655 tons, with a reduction of 85 tons [1]

Financial Performance - In 2024, the total revenue reached RMB 162.36 billion, a 29.6% increase from RMB 125.29 billion in 2023[7] - The net profit for the year was RMB 93.36 million, up 42.2% from RMB 65.68 million in the previous year[7] - The company achieved a basic and diluted earnings per share of RMB 1.04, compared to RMB 0.41 in 2023[7] - The total assets increased to RMB 69.48 billion in 2024, compared to RMB 63.78 billion in 2023[7] - The company achieved a revenue of approximately RMB 40.5 billion during the reporting period[25] - Revenue from supply chain management and trading business contributed approximately 99.6% of total revenue, amounting to RMB 161,736.0 million for the year ended December 31, 2024, up from RMB 124,691.4 million in the previous year[35] - The company recorded expected credit loss impairment of approximately RMB 232.7 million for the year ended December 31, 2024, up from RMB 104.6 million in the previous year[45] - The total equity attributable to shareholders as of December 31, 2024, was approximately RMB 13,951.2 million, compared to RMB 13,804.3 million in 2023, reflecting a slight increase of 1.06%[54] - The group's cash and cash equivalents as of December 31, 2024, were approximately RMB 1,546.0 million, a decrease from RMB 1,783.0 million in 2023, indicating a decline of about 13.3%[55] - The total interest-bearing borrowings decreased by approximately 2.9% to RMB 14,831.4 million as of December 31, 2024, down from RMB 15,268.3 million in 2023[56] Operational Developments - The company successfully established a low-altitude logistics operation base, with three low-altitude logistics routes opened in the first phase[10] - The company is expanding its supply chain network by introducing new categories such as the coffee supply chain, attracting over 30 large coffee supply chain enterprises[9] - The total online and offline transaction volume at Hankou North International Trade City exceeded RMB 200 billion in 2024[9] - The company is focusing on high-end manufacturing and digital supply chain platforms to enhance efficiency amid increasing global trade protectionism[12] - The establishment of 50 service centers across more than 310 cities enhances customer service depth and breadth[13] - The digital management platform 2.0 has been launched, utilizing big data and IoT for improved operational efficiency[20] - The company is developing a modern logistics operation system that integrates "channels + hubs + networks," showcasing significant demonstration value for national logistics and supply chain development[23] Market Expansion and Strategy - The company is accelerating its overseas market layout in countries like Indonesia and South Africa[25] - The overseas platform CIC is projected to achieve exponential revenue growth in 2024, becoming the second growth curve for the group[14] - The company plans to expand its market presence in Southeast Asia, targeting a 15% market share by 2025[70] - The company aims for a revenue growth target of 20% for the upcoming fiscal year, supported by new business initiatives[70] - The company plans to enhance its digital technology research and development, focusing on big data, artificial intelligence, and blockchain to improve operational efficiency[30] Corporate Governance and Management - The company has a strong management team with over 20 years of experience in capital markets, led by CFO Zhu Guohui[76] - The board of directors has approved a new compensation strategy aimed at retaining top talent, with a focus on performance-based incentives[72] - The company has established corporate governance policies and practices, which include reviewing and monitoring the training and continuous professional development of directors and senior management[199] - The audit committee is responsible for overseeing the company's financial reporting, internal control principles, and risk management[198] - The independent non-executive directors have reviewed and confirmed the ongoing related party transactions for the year ending December 31, 2024[169] Social Responsibility and Community Engagement - The company made charitable donations of approximately RMB 800,000 during the review year, a significant increase from RMB 55,000 in the previous year[133] - The company has committed to maintaining high standards of corporate governance throughout the year ending December 31, 2024[180] Future Outlook - The company has allocated $100 million for research and development in innovative technologies over the next three years[70] - New product launches are expected to drive an additional $50 million in revenue in the next fiscal year[70] - The group plans to continue investing in the Hankou North International Commodity Trading Center project, aiming to enhance supply chain infrastructure and establish it as a major market hub in Central and Western China[138]

Core Insights - The company, Zall Smart Commerce, reported a revenue of 162.36 billion yuan for the fiscal year 2024, marking a year-on-year growth of 29.59% and a net profit of 93.36 million yuan, up 42.15%, demonstrating strong operational resilience [1] - The core business of supply chain trade and management achieved a revenue of 161.74 billion yuan, reflecting a growth of 29.71%, solidifying its position as a leader in digital trading of bulk commodities [1] - The overseas revenue reached a historical high of 40.67 billion yuan, showcasing significant growth in international operations [2] Revenue Growth - The company has consistently surpassed the 100 billion yuan revenue mark for four consecutive years, with revenue increasing from 103.61 billion yuan in 2021 to 162.36 billion yuan in 2024 [2] - Domestic bulk business also saw stable growth, with overall revenue increasing by 37.05 billion yuan compared to the previous year [4] Business Expansion - The establishment of the World Commodity Intelligent Trading Center (CIC) in Singapore has been pivotal, focusing on coal, nickel, and copper trading, and utilizing blockchain technology to enhance digital trade solutions [2] - The CIC platform has registered over 16,000 users and facilitated transactions exceeding 29.3 billion USD, indicating robust international engagement [2] Supply Chain Innovations - The company is actively integrating online and offline supply chain services, with the Han Kou Bei International Trade City achieving a total transaction volume exceeding 200 billion yuan in 2024 [6] - The company has developed multiple modern supply chains, including flower, seafood, and coffee chains, enhancing consumer experience and market reach [6][8] Technological Advancements - The company has applied for 365 patents and obtained 173, focusing on integrating digital technologies like AI and big data into its operations [9] - The launch of the digital management platform 2.0 and the establishment of low-altitude ports for drone logistics signify the company's commitment to enhancing operational efficiency and service quality [12]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of RMB 162,359,281, an increase of 29.6% from RMB 125,290,479 in 2023[2]. - The company's gross profit for the same period was RMB 698,971, down 17.5% from RMB 846,638 in 2023[3]. - Net profit for the year was RMB 93,361, representing a 42.2% increase compared to RMB 65,676 in 2023[3]. - Basic and diluted earnings per share increased to RMB 1.04 from RMB 0.41, reflecting a growth of 153.7%[3]. - The company’s total comprehensive income for the year was RMB 111,113, up from RMB 66,964 in 2023, reflecting a growth of 66.5%[5]. - The company did not declare or recommend any dividends for 2024, consistent with 2023[35]. - The board does not recommend the distribution of dividends for the fiscal year ending December 31, 2024, consistent with the previous year[98]. Assets and Liabilities - Total assets rose to RMB 69,484,756, up from RMB 63,778,674, marking an increase of 8.9%[2]. - Current assets increased to RMB 42,618,024, compared to RMB 37,481,900, a growth of 13.3%[2]. - Total liabilities increased to RMB 55,141,803 from RMB 49,571,989, an increase of 11.5%[2]. - The group recorded a net current liability of approximately RMB 4,725,063,000 as of December 31, 2024, indicating significant uncertainty regarding the group's ability to continue as a going concern[11]. - As of December 31, 2024, the group's net current liabilities amounted to approximately RMB 4,725.1 million, compared to RMB 2,830.4 million as of December 31, 2023, with total equity attributable to shareholders at approximately RMB 13,951.2 million, up from RMB 13,804.3 million in 2023[80]. - The total interest-bearing borrowings decreased by approximately 2.9% to RMB 14,831.4 million as of December 31, 2024, down from RMB 15,268.3 million in 2023[82]. Revenue Segmentation - Revenue from supply chain management and trading business surged to RMB 161,735,969 thousand in 2024, compared to RMB 124,691,353 thousand in 2023, marking an increase of about 29.7%[20]. - The property development and related services segment reported revenue of RMB 478,890 thousand in 2024, up from RMB 441,163 thousand in 2023, reflecting a growth of approximately 8.5%[26]. - Rental income from investment properties decreased by approximately 16.9% from RMB 283.5 million to RMB 235.6 million due to a reduction in total leased area[64]. - Property sales and related services revenue increased by approximately 54.3% from RMB 157.7 million to RMB 243.2 million, attributed to an increase in the area of properties delivered in 2024[66]. Operational Highlights - The company operates primarily in China, focusing on developing and managing large consumer goods wholesale markets and providing supply chain management services[19]. - The company’s core project, Hankou North International Trade City, has developed into a comprehensive market cluster with 30 specialized markets, enhancing its supply chain management capabilities[45]. - In 2024, Hankou North aims to optimize and upgrade its commodity market, focusing on integrating industry and trade, and enhancing digital trade capabilities[45]. - The company launched over 3,000 product SKUs on its platform, meeting diverse customer needs[53]. - The company established 8 regional marketing centers in cities like Xi'an, Chengdu, and Chongqing to expand its downstream market[53]. Financial Management and Strategy - The group expects to generate positive operating cash flow in the next twelve months through improved supply chain management and trade business revenue[13]. - The group is actively reviewing its capital structure and negotiating with banks for the refinancing of existing loans[13]. - The group plans to further divest several non-core businesses and assets to raise additional operating funds[13]. - The group has not engaged in any significant acquisitions or disposals during the year ending December 31, 2024, and will continue to seek opportunities to divest non-core assets to enhance liquidity[86]. Risk Management - The group has implemented over 80 risk control rules and enhanced risk assessment capabilities through its "Risk Brain" system[54]. - The expected credit loss model showed a total impairment loss of RMB 232,661 thousand in 2024, significantly higher than RMB 104,554 thousand in 2023[30]. Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and has complied with its provisions for the fiscal year ending December 31, 2024[93]. - The audit committee, composed of three independent non-executive directors, reviewed the audited consolidated financial statements for the fiscal year ending December 31, 2024, and found them to be prepared in accordance with applicable accounting standards[96]. - The independent auditor confirmed that the financial figures for the fiscal year ending December 31, 2024, were consistent with the audited consolidated financial statements[97].

Business Growth and Expansion - In the first half of 2024, Zall Smart Commerce Group achieved stable growth in digital trade scale, focusing on supply chain management and logistics services [7]. - The company expanded its product offerings, launching over 3,000 SKU items in the agricultural sector and establishing high-end coffee trade channels in Peru and Costa Rica [8]. - Zall Smart Commerce's revenue from the steel supply chain services increased significantly, supporting large-scale end-users in infrastructure and renewable energy sectors [8]. - The company has developed digital "cloud factories" in various sectors, enhancing supply chain flexibility and efficiency through big data and AI technologies [10]. - Zall Smart Commerce's ranking in the Fortune China 500 improved by 13 positions, reflecting its growing market presence and recognition [7]. - The company is actively pursuing ESG development principles, receiving multiple social responsibility awards and recognitions [7]. - Zall Smart Commerce is focusing on expanding its market share in bulk commodities through service extension and category expansion [7]. - The company has implemented a "pull-based" supply chain model, transitioning from production-driven to sales-driven operations [10]. - In the first half of 2024, the company achieved a cumulative export value exceeding $18 billion through various new business models, including market procurement and cross-border e-commerce [13]. - The company has registered a total of 16,486 users on the CIC platform, with a cumulative transaction volume exceeding $20.6 billion in the first half of 2024, indicating steady growth [13]. - The company has established 30 large-scale comprehensive professional market clusters, enhancing its position as a leading supply chain management center and commercial logistics platform in China [16]. - The company has been recognized as a "National Supply Chain Innovation Demonstration Market" and a "Hubei Province Trustworthy Consumption Demonstration Unit" in 2023 [16]. - The company is actively constructing a large logistics center, including a sorting center and an urban logistics distribution center, to support the development of a national logistics hub in Wuhan [16]. - The company has introduced 24 varieties of chili peppers from India, Vietnam, and Xinjiang, establishing a service network covering four provinces in Central China [12]. - The company has launched the 2.0 version of its digital service platform for the textile and apparel industry, facilitating nearly 9,000 enterprises to join the digital supply chain [12]. - The company is focusing on integrating digital trade and supply chain services, aiming to enhance its international trade platform capabilities and promote the integration of domestic and foreign trade [13]. - The company is leveraging data elements to create an international trade data search platform, expanding its business to over 30 countries globally [13]. - The company is committed to enhancing its supply chain digital service capabilities to support the digital economy's competitiveness and influence [13]. - In the first half of 2024, the company launched the HanKou North Chili Exchange cold storage warehouse, becoming a major integrated trading center for chili varieties in Central and Western China, with 24 domestic and international chili varieties introduced [18]. - The company's B2B trading platform, Zhongnong Network, achieved a revenue of approximately RMB 16.6 billion during the reporting period, focusing on enhancing customer-centric services and digital supply chain capabilities [20]. - Zhongnong Network's new product offerings included nearly 3,500 SKU items, with a customer conversion rate of 55% and a repurchase rate of 31% [20]. - The company established strategic partnerships with major fishing areas and ports, creating a new seafood supply chain model that connects directly from the ocean to the market [18]. - The digital management platform 2.0 was launched in June 2024, significantly improving the market's information technology and digital management capabilities [18]. - The company expanded its agricultural business, covering over 800 new farmers and collaborating on 4,000 acres of sugarcane cultivation in regions like Guangxi and Yunnan [20]. - The company invested in a seasoning processing center in Xinjiang, with the first phase of the cumin production center nearing completion [20]. - The company’s digital supply chain and cloud factory initiatives have linked over 120 downstream plastic product enterprises, supplying a total of 20,000 tons of raw materials [22]. - The company actively participated in various trade fairs and events, enhancing its brand visibility and market presence in the industry [18]. Financial Performance - The company's revenue increased by approximately 24.3% from RMB 54,931.5 million for the six months ended June 30, 2023, to RMB 68,276.4 million for the six months ended June 30, 2024 [32]. - Revenue from supply chain management and trading business contributed approximately 99.7% of total revenue, increasing by about 24.5% year-on-year [33]. - Rental income from investment properties rose from RMB 115.4 million to RMB 122.4 million, attributed to an increase in new tenants and leased area [34]. - Financing income decreased by approximately 11.2% from RMB 34.9 million to RMB 31.0 million, mainly due to a reduction in the scale of supply chain finance business [36]. - Sales revenue from properties and related services decreased by approximately 15.3% from RMB 64.1 million to RMB 54.3 million, primarily due to a decrease in the area of properties delivered [37]. - Gross profit decreased by approximately 8.9% from RMB 399.5 million to RMB 363.8 million, with a gross profit margin dropping from 0.7% to 0.5% [39]. - Other net income turned positive at RMB 55.1 million compared to a loss of RMB 36.5 million in the previous period, mainly due to changes in fair value of listed equity securities and financial products [40]. - Financial income decreased by approximately 23.1% from RMB 159.7 million to RMB 122.8 million, while financial costs increased by approximately 8.2% from RMB 313.2 million to RMB 338.9 million [46]. - Net profit for the period increased by approximately 9.7% from RMB 37.2 million to RMB 40.8 million [51]. - Income tax expense increased by approximately 372.5% from RMB 20.7 million to RMB 97.9 million, primarily due to deferred tax liabilities related to investment property valuation gains [50]. - As of June 30, 2024, the group's net current liabilities amounted to approximately RMB 5,070.8 million, an increase from RMB 2,830.4 million as of December 31, 2023 [52]. - The group's cash and cash equivalents were approximately RMB 2,024.8 million as of June 30, 2024, compared to RMB 1,783.0 million as of December 31, 2023, indicating a growth of about 13.5% [53]. - The total interest-bearing borrowings decreased by approximately 5.0% from RMB 15,268.3 million as of December 31, 2023, to RMB 14,508.9 million as of June 30, 2024 [54]. - The net debt ratio increased from approximately 28.1% as of December 31, 2023, to 51.9% as of June 30, 2024, primarily due to a decrease in pledged bank deposits [56]. - As of June 30, 2024, the group had pledged assets with a total book value of approximately RMB 16,179.1 million, down from RMB 17,155.7 million as of December 31, 2023 [58]. - The group did not engage in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the six months ended June 30, 2024 [59]. - The group employed a total of 1,628 full-time employees as of June 30, 2024, a decrease from 1,734 employees as of June 30, 2023 [65]. - Employee benefit expenses for the six months ended June 30, 2024, were approximately RMB 129.6 million, down from RMB 149.3 million for the same period in 2023 [65]. - The group continues to seek opportunities to sell non-core assets and businesses to enhance liquidity and focus resources on core operations [59]. - The group plans to invest in the upgrade of the Hankou North International Trading Center to enhance service levels and promote the integration of online and offline businesses [60]. - The company has a total of 15,547,407 unexercised stock options, representing approximately 0.13% of the issued shares as of the report date [70]. - The maximum number of shares that can be issued under the stock option plan is capped at 10% of the total issued shares as of the adoption date, which equates to 1,178,282,580 shares [89]. - The stock option plan adopted in 2011 has expired, and no further options can be granted under this plan [70]. - The stock options granted under the 2021 stock option plan can be exercised within 10 years from the grant date [73]. - The exercise price for stock options must not be lower than the highest of the closing price on the grant date or the average closing price over the preceding five trading days [75]. - The company has not experienced any stock options that have lapsed, been granted, exercised, or canceled in the six months ending June 30, 2024 [84]. - The 2021 stock option plan aims to incentivize and reward eligible participants for their contributions to the company's growth [87]. - The total number of stock options that can be issued under the 2021 stock option plan is approximately 9.5% of the company's issued share capital as of the report date [89]. - Eligible participants for the stock option plans include full-time and part-time employees, directors, and other contributors as determined by the board [69]. - The company must issue a circular and obtain shareholder approval for any stock options exceeding 1% of the issued shares within any 12-month period [72]. - The maximum number of shares that can be issued under the Share Award Scheme is capped at 10% of the total issued shares as of the adoption date, equating to 1,178,282,580 shares [101]. - As of June 30, 2024, there are no unexercised options under the 2021 Share Option Scheme, with no options granted, expired, or canceled during the six-month period [96]. - The number of shares available for grant under the Share Award Scheme is 1,161,602,580 shares, representing approximately 9.4% of the company's issued share capital [101]. - The 2021 Share Option Scheme allows options to be exercised within 10 years from the grant date, with no minimum holding period required before exercise [93]. - The company has not granted any award shares under the Share Award Scheme during the six-month period ending June 30, 2024 [106]. - The maximum number of shares that can be granted to selected employees under the Share Award Scheme is limited to 1% of the total issued shares at any time [102]. - The company anticipates that the sale of 66,677,559 shares by Seller D will be completed by December 31, 2024, due to current market conditions [107]. - The exercise price for any specific option under the 2021 Share Option Scheme is determined by the board but must be higher than the closing price on the grant date [95]. - The Share Award Scheme aims to recognize contributions from selected employees and attract suitable personnel for further development of the group [99]. - The 2021 Share Option Scheme has been effective since May 28, 2021, and will last for 10 years [96]. - The company is in the process of acquiring an additional 3% equity stake in the target company, with a remaining payment of approximately RMB 88,000,000 expected to be completed by December 31, 2024 [109]. - As of June 30, 2024, Yan Zhi holds 8,633,306,868 shares, representing 69.63% of the company's total shares [114]. - The annual director remuneration for Yan Zhi has been adjusted from HKD 1,280,000 to HKD 480,000, effective April 1, 2024 [111]. - The total number of issued shares of the company as of June 30, 2024, is 12,399,505,800 shares [115]. - The company has not established any arrangements for directors to acquire shares or bonds during the review period [110]. - The company anticipates the completion of the second batch of acquisitions by the end of 2024, pending the fulfillment of remaining conditions [109]. - The company has disclosed no changes in director information that require further disclosure under the listing rules since the last annual report [111]. - As of June 30, 2024, the beneficial ownership of shares by Yu Gang includes 270,000 shares and 11,800,000 shares through spouse rights [114]. - The company has not reported any interests or positions held by directors or senior management beyond those disclosed [117]. - The company is actively pursuing further acquisitions as part of its growth strategy, as indicated in multiple announcements [109]. - Major shareholder Zall Development Investment holds 7,323,906,268 shares, representing 59.07% of total shares as of June 30, 2024 [119]. - Zall Holdings owns 1,309,400,600 shares, accounting for 10.56% of total shares as of June 30, 2024 [119]. - China Huarong Asset Management holds 685,689,000 shares, which is 5.53% of total shares as of June 30, 2024 [119]. - The total number of issued shares as of June 30, 2024, is 12,399,505,800 [120]. - The company did not declare an interim dividend for the six months ended June 30, 2024 [128]. - The audit committee reviewed the unaudited interim financial results for the six months ended June 30, 2024 [127]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2024 [125]. - The company has adopted corporate governance practices in compliance with the Hong Kong Stock Exchange listing rules [123]. - The company has completed the sale of most properties in the Han Kou North Zall Life City Phase II project, with approximately 41,600 square meters remaining for sale [125]. - The company confirmed compliance with the standards for securities trading by directors during the six months ended June 30, 2024 [124]. - Revenue for the six months ended June 30, 2024, was RMB 68,276,396 thousand, an increase from RMB 54,931,545 thousand in the same period of 2023, representing a growth of 24.3% [130]. - Gross profit decreased to RMB 363,830 thousand from RMB 399,453 thousand, reflecting a decline of 8.9% year-over-year [130]. - Operating profit increased significantly to RMB 354,292 thousand, compared to RMB 211,085 thousand in the previous year, marking a growth of 67.6% [130]. - Net profit attributable to equity shareholders rose to RMB 49,817 thousand, up from RMB 22,364 thousand, indicating a substantial increase of 122.3% [130]. - Basic and diluted earnings per share improved to RMB 0.40 from RMB 0.18, representing a growth of 122.2% [130]. - Total assets as of June 30, 2024, were RMB 37,274,839 thousand, slightly down from RMB 37,481,900 thousand at the end of 2023 [133]. - Non-current assets increased to RMB 26,624,259 thousand from RMB 26,296,774 thousand, showing a growth of 1.2% [133]. - Inventory rose to RMB 5,214,250 thousand from RMB 4,779,687 thousand, reflecting an increase of 9.1% [133]. - Current liabilities increased to RMB 42,345,664 thousand from RMB 40,312,320 thousand, indicating a rise of 5.1% [135]. - The company reported a total comprehensive income of RMB 38,078 thousand for the period, down from RMB 44,964 thousand in the previous year, a decrease of 15.2% [132]. - For the six months ended June 30, 2024, the company reported a total revenue of RMB 44,964,000, an increase from RMB 30,176,000 in the same period of 2023, representing a growth of approximately 48.9% [137]. - The net cash used in operating activities for the six months ended June 30, 2024, was RMB (3,411,736), compared to RMB 2,699,357 in the same period of 2023, indicating a significant decline in cash flow from operations [139]. - The company recorded a net cash inflow from investing activities of RMB 4,139,967 for the six months ended June 30, 2024, a substantial increase from RMB 610,036 in the same period of 2023 [139]. - The net cash used in financing activities was RMB (483,720) for the six months ended June 30, 2024, compared to RMB (3,160,689) in the same period of 2023, showing an improvement in financing cash flow [141]. - The company's cash and cash equivalents increased to RMB 2,024,826 as of June 30, 2024, up from RMB 1,491,709 at the end of the same period in 2023, reflecting a growth of approximately 35.7% [141]. - The total comprehensive income for the six months ended June 30, 2024, was RMB 38,078, compared to RMB 47,135 in the same period of 2023, indicating a decrease of about 19.5% [141]. - The company reported a profit of RMB 22,364 for the six months ended June 30, 2024, compared to RMB 14,788 in the same period of 2023, representing an increase of approximately 51.5% [137]. - The company’s investment in associates amounted to RMB (49,000) for the six months ended June 30, 2024, compared to RMB (30,000) in the same period of 2023, indicating increased investment activity [139]. - The company’s total assets as of June 30, 2024, were RMB 14,206,685, reflecting an increase from RMB 14,148,106 at the end of the previous period [137]. - The company’s equity attributable to shareholders was RMB 396,394 as of June 30, 2024, compared to RMB 386,309 at the end of the same period in 2023, showing a growth of approximately 2.8% [137]. - As of June 30, 2024, the group's net current liabilities amounted to approximately RMB 5,

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 68,276,396 thousand, an increase of 24.2% compared to RMB 54,931,545 thousand for the same period in 2023[2] - Gross profit for the same period was RMB 363,830 thousand, down 8.9% from RMB 399,453 thousand year-over-year[2] - Operating profit increased significantly to RMB 354,292 thousand, compared to RMB 211,085 thousand in the previous year, reflecting a growth of 67.6%[3] - Net profit attributable to equity shareholders for the period was RMB 49,817 thousand, up from RMB 22,364 thousand, representing a year-over-year increase of 123.5%[3] - Basic and diluted earnings per share rose to RMB 0.40, compared to RMB 0.18 in the same period last year[3] - Total comprehensive income for the period was RMB 38,078 thousand, down from RMB 44,964 thousand in the previous year[5] Assets and Liabilities - Investment properties at fair value increased to RMB 24,786,822 thousand from RMB 24,466,240 thousand, showing a slight growth[6] - Trade and other receivables rose to RMB 23,215,316 thousand, compared to RMB 20,055,402 thousand, indicating a growth of 10.8%[6] - Cash and cash equivalents increased to RMB 2,024,826 thousand from RMB 1,782,996 thousand, reflecting a growth of 13.5%[6] - As of June 30, 2024, the company's current liabilities net amount is approximately RMB 5,070,825,000, indicating significant uncertainty regarding the company's ability to continue as a going concern[9] - The total value of assets minus current liabilities is RMB 21,553,434,000, compared to RMB 23,466,354,000 as of December 31, 2023, reflecting a decrease[7] - The company's interest-bearing debt amounts to RMB 11,662,889,000, an increase from RMB 10,405,065,000 in the previous year[7] Cash Flow and Financing - The company reported a decrease in financial income to RMB 122,803 thousand from RMB 159,746 thousand, a decline of 23.1% year-over-year[3] - The group expects to generate positive operating cash flow in the next twelve months through improved supply chain management and trade business revenue[10] - As of June 30, 2024, bank loans and other financial institution loans amount to RMB 5,294,641,000, a decrease from RMB 5,527,705,000 as of December 31, 2023[10] - The group plans to sell non-core businesses and assets to raise additional operating funds[10] - The group has taken measures to manage its liquidity needs and improve its financial position, including negotiating extensions or refinancing existing borrowings[10] Segment Performance - Total revenue from sales and related services amounted to RMB 68,111,700, an increase from RMB 54,755,767 in the previous period[17] - Reported segment revenue for the first half of 2024 was RMB 68,266,708 thousand, an increase of 24.2% compared to RMB 54,918,454 thousand in the same period of 2023[24] - The property development and related services segment focuses on developing, selling, and operating large consumer goods wholesale markets, contributing significantly to overall revenue[19] - The supply chain management and trading segment operates in the trading of agricultural products, chemicals, and metals, providing related financial services[19] Taxation and Compliance - The company has subsidiaries in China that benefit from a preferential tax rate of 15% and 9% for certain periods, impacting the overall tax obligations[32] - The company’s income tax expense for the six months ending June 30, 2024, was RMB 23,650,000, compared to RMB 20,799,000 for the same period in 2023, reflecting an increase of approximately 8.9%[31] - The company has not generated any taxable income in Hong Kong for the periods ending June 30, 2024, and June 30, 2023, resulting in no provisions for Hong Kong profits tax[32] Corporate Governance - The company has established an audit committee to oversee financial reporting, risk management, and internal control systems as of June 30, 2024[108] - The board of directors does not recommend the distribution of an interim dividend for the six months ending June 30, 2024[109] - The company has complied with all corporate governance codes as of June 30, 2024[105] Strategic Initiatives - The group is actively enhancing its capital structure to maintain a debt-to-equity ratio not exceeding 75%[56] - The core project, Hankou North International Trade City, has developed 30 large-scale specialized markets and is positioned as a leading supply chain management center[58] - The group is planning to build a large logistics center to enhance the logistics industry’s cluster, intensification, and refinement[59] - The company is committed to transforming traditional trade into digital trade, providing a range of digital services across various industries[68]

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].