Financial Performance - For the year ended December 31, 2024, the Group reported revenue of RMB1,252.6 million, marking a 7.1% decrease compared to the prior year[19]. - The loss attributable to owners of the Company amounted to RMB20.1 million, compared to a profit of RMB87.8 million in 2023, resulting in a loss per share of RMB0.014[19]. - The Group's total sales proceeds decreased by 11.8% to RMB2,782.3 million from RMB3,154.1 million in the previous year, with a year-on-year decrease of 12.1% in the second half of 2024[36]. - Gross profit for the year decreased by 10.6% to RMB702.0 million, while the gross profit margin as a percentage of total sales proceeds increased to 25.2% from 24.9% in 2023[37]. - The Group's adjusted EBITDA for the year decreased by 17.5% to RMB358.1 million from RMB434.3 million in 2023, primarily due to a decline in sales and revenue[54]. - The Group's share of Beiren Group's net profit decreased by 25.4% to RMB138 million from RMB185.0 million in 2023[88]. - The Group's revenue for 2024 was RMB1,252.6 million, a decrease of 7.1% from RMB1,349.0 million in 2023, with total sales proceeds dropping 11.8% to RMB2,782.3 million[40]. Strategic Initiatives - The Group celebrated the 20th anniversary of Shanghai Jiuguang in September 2024, emphasizing its commitment to a "Customer-First" philosophy and innovative service offerings[17]. - The Group has optimized tenant portfolios and diversified product categories to adapt to market shifts and enhance online and offline integration[18]. - The Group aims to enhance operational efficiency and capitalize on government initiatives to boost consumption and expand domestic demand[22]. - The Group plans to expand its membership base and refine its loyalty program, introducing exclusive privileges for new members[23]. - The Group's strategy includes optimizing merchandise assortments and enhancing omnichannel integration to adapt to evolving consumer preferences[32]. - The Group will leverage high-traffic social media platforms to enhance customer engagement through live streaming and interactive content[24]. - The Group's strategies included promoting scenario-based consumption and advancing green and low-carbon development to meet evolving consumer needs[71]. Market Conditions - The retail growth rate of offline stores has moderated across the industry, influenced by heightened consumer caution and competitive pressures from e-commerce[18]. - The Shanghai Municipal Government's campaigns, such as the "New Year Celebration Shopping Festival," align with the Group's initiatives to stimulate consumer spending[31]. - The retail landscape is shifting towards rational consumption and service-oriented spending, prompting the Group to prioritize innovation and strategic agility in its offerings[104]. Sustainability and Environmental Initiatives - The Group is committed to advancing green, low-carbon development initiatives as part of its strategic focus[18]. - The Group's commitment to sustainability and green consumption practices is part of its strategy to meet changing consumer demands[32]. - The Group focuses on measuring and reporting carbon reduction results and promoting waste reduction at source[140]. - The Group aims to set sustainable and measurable environmental protection targets[139]. - The Group is implementing energy-saving measures, including the use of LED lighting to reduce power consumption in stores and offices[161]. - The Group has established emission reduction targets to help decrease greenhouse gas emissions, supporting global ecosystem sustainability[181]. Employee and Labor Relations - The Group employed a total of 1,078 full-time staff as of December 31, 2024, down from 1,172 as of December 31, 2023, reflecting a decrease in staff headcount and bonuses[45]. - The Group regularly reviews employee remuneration packages to ensure competitiveness, referencing industry standards and employee performance[187]. - The employee turnover rate for the Group in the financial year 2024 was 1.47%[196]. - The Group emphasizes enhancing employees' knowledge and skills in safety through training programs[200]. - The Group has a comprehensive performance appraisal management regime to attract and retain outstanding talents, ensuring transparency and fairness[186]. Financial Position - As of December 31, 2024, the Group's net debt decreased to approximately RMB196.8 million from RMB405.4 million as of December 31, 2023, due to increased operating cash and dividends received[55]. - Cash and cash equivalents, bank deposits, and structured bank deposits amounted to approximately RMB2,953.3 million, an increase from RMB2,823.6 million as of December 31, 2023[56]. - The debt-to-equity ratio slightly decreased from 34.9% to 34.5% due to a reduction in bank borrowings[61]. - The outstanding loan amount under the 15-year financing facility was RMB3,238 million as of December 31, 2024, down from RMB3,278 million in the previous year[64]. Customer Engagement and Experience - The Group focused on enhancing online member engagement and optimizing its online marketplace, which included facilitating click-and-collect services[72]. - The Shanghai Jiuguang Center (JGC) hosted various thematic campaigns in 2024 to elevate customer experiences and stimulate spending[73]. - Average daily footfall increased by 9.9% year-on-year to approximately 34,300 visitors, and the stay-and-buy ratio improved by 0.9 percentage points to 76.2%[81]. Challenges and Risks - The Group's independent legal opinion indicated a very low probability of recovering outstanding receivables, which have been deemed irrecoverable since the full provision for bad debts was established in 2019[100]. - The Group actively assesses climate-related risks, including extreme weather events, and has developed internal guidelines for safety and operational continuity[180]. - The Group's management will monitor foreign currency exposure and consider measures to mitigate significant potential foreign currency risks if necessary[63].

Financial Performance - Revenue decreased by 7.1% to RMB 1,252.6 million compared to the previous year[4] - The company reported a loss attributable to owners of RMB 20.1 million, down from a profit of RMB 87.8 million in the previous year[4] - Loss per share was RMB 0.014, compared to earnings per share of RMB 0.060 in the previous year[4] - Total comprehensive income for the year was RMB 119.1 million, down from RMB 275.6 million in the previous year[5] - Total revenue for the year 2024 was RMB 1,252,612, a decrease of 7.1% from RMB 1,348,975 in 2023[11] - The company reported a net loss attributable to shareholders of RMB 20,105 for 2024, compared to a profit of RMB 87,767 in 2023[18] - Total sales revenue dropped 11.8% from RMB 3,154.1 million in the previous year to RMB 2,782.3 million, primarily due to increased uncertainty in the domestic economic outlook and rising online penetration rates[30] - The company's attributable net loss for the year was approximately RMB 20.1 million, a significant decline from a profit of RMB 87.8 million in 2023, mainly due to sales slowdown and a 25.4% decrease in profit from the associated company, Beiren Group[32] Revenue Breakdown - Self-operated sales revenue was RMB 507,233, down from RMB 523,341, representing a decline of 3.1%[11] - Revenue from franchise sales decreased by 19.3% to RMB 388,685 from RMB 481,262[11] - Service revenue fell to RMB 35,545, down 14.3% from RMB 41,509[11] Expenses and Costs - Gross profit margin decreased, with gross profit at RMB 702.0 million compared to RMB 785.4 million last year[5] - Total employee costs for the year were RMB 238,417, slightly up from RMB 236,632 in the previous year[16] - The group's sales and distribution costs for 2024 were RMB 578.3 million, a decrease of 5.5% from RMB 612.1 million in the previous year, primarily due to a reduction in total sales and related expenses[33] - General administrative expenses decreased by 2.4% to RMB 255.0 million from RMB 261.3 million in 2023, mainly due to a reduction in maintenance costs[34] - Employee costs (excluding director remuneration) decreased by 1.7% to RMB 204.9 million from RMB 208.4 million in 2023, attributed to a reduction in employee numbers and bonuses[35] Assets and Liabilities - Non-current assets decreased to RMB 14,250.5 million from RMB 14,374.5 million in the previous year[6] - Current assets increased to RMB 2,743.5 million from RMB 2,662.4 million in the previous year[6] - Total liabilities decreased slightly to RMB 11,069.7 million from RMB 11,016.5 million in the previous year[7] Cash Flow and Financing - As of December 31, 2024, the group's net debt decreased to approximately RMB 196.8 million from about RMB 405.4 million, mainly due to increased operating cash flow and dividends received from associates[39] - The group's cash and cash equivalents, bank deposits, and structured bank deposits increased to approximately RMB 2,953.3 million from RMB 2,823.6 million in 2023, with a significant portion held in RMB[40] - Total financing costs increased to RMB 186,916, up 2.0% from RMB 181,938[15] Dividends - The board of directors did not declare any dividends for the year[4] - The company did not declare any dividends for the year 2024, consistent with 2023[17] - No dividend declared for the year ending December 31, 2024, consistent with 2023[67] Market and Consumer Trends - The retail sales of consumer goods in China reached RMB 43.2 trillion, reflecting a year-on-year growth of 3.2%, indicating challenges in the market[28] - The group plans to enhance its digital infrastructure and introduce unique products and promotions to attract younger consumers, maintaining competitiveness in the retail market[58] - The group aims to optimize its merchant and product mix to meet rising consumer demand for high-quality, personalized, and environmentally friendly products[60] - The group is committed to responding to green consumption trends and promoting environmental sustainability through its product offerings and consumer behavior initiatives[59] Strategic Initiatives - The company has implemented various measures to adapt to changing consumer demands, including optimizing product offerings and enhancing the shopping experience[28] - The group actively adjusted its market strategy to enhance online member interaction and drive traffic to offline stores, including live streaming on Douyin to expand sales opportunities[45] - The group is focused on integrating online and offline marketing strategies to boost brand exposure and drive foot traffic to physical stores[62] Operational Performance - The operating loss before tax for the year was RMB 61.8 million, compared to a profit of RMB 21.5 million in 2023[32] - The group's EBITDA for the year decreased by 17.5% to RMB 358.1 million from RMB 434.3 million in 2023, primarily due to a decline in sales and revenue[39] Employee Acknowledgment - Acknowledgment of employees' efforts and contributions despite challenging operating environment[72]

证券时报网讯，利福中国复牌大涨逾26%，利福中国宣布将通过协议安排方式私有化并撤销公司上市地 位，计划股东将按每股0.913港元的价格获得现金注销价。 独立董事委员会已成立，以评估建议的公平合理性。 若计划获批，公司将撤销股份在联交所的上市地位。 校对：姚远 ...

Financial Performance - Revenue decreased by 7.3% to RMB 644.6 million[1] - Profit attributable to owners of the Company decreased by 67.4% to RMB 41.7 million[2] - Earnings per share decreased by 67.4% to RMB 0.028[2] - No interim dividend has been declared by the Board[2] - Total sales proceeds dropped by 11.5% to RMB1,450.4 million, down from RMB1,638.6 million in the same period last year[7] - Gross profit fell by 8.1% to RMB362.1 million, with a stable gross profit margin of approximately 56.2%[7] - Adjusted EBITDA decreased by 18.7% to RMB197.1 million from RMB242.4 million in the first half of 2023, primarily due to a decrease in sales and revenue[9] - Total comprehensive income for the period was RMB 130,919,000, compared to RMB 265,645,000 for the same period in 2023, indicating a decrease of 50.8%[61] - Profit for the period attributable to owners of the Company was RMB 41,668,000, a significant decline from RMB 127,622,000 in the prior year[61] Cost and Expenses - Selling and distribution costs decreased by 4.0% to RMB289.5 million, while as a percentage of total sales proceeds, it increased to 20.0% from 18.4%[8] - General administrative expenses increased by 3.9% to RMB118.9 million, primarily due to rising staff costs[8] - Staff costs increased by 6.9% to RMB106.8 million, influenced by salary increments and a one-off redundancy payment[8] - Total finance costs increased by 11.1% to RMB93.5 million, with bank loan interest at RMB60.3 million and lease liabilities at RMB33.2 million[9] - The company reported finance costs of RMB 93,505,000 for the period, an increase from RMB 84,129,000 in the prior year[61] Market Trends and Consumer Behavior - China's GDP grew by 5.0% year-on-year in the first half of 2024, with a second quarter growth of 4.7%[6] - Total retail sales of consumer goods in China increased by 3.7% year-on-year during the same period[6] - Consumers are becoming more price sensitive, favoring high-quality, low-cost products[6] - Retailers are actively launching sustainable development initiatives to drive steady consumption growth[6] - The market is witnessing a shift towards "China chic" products as consumers embrace traditional culture[6] Strategic Initiatives - The company is focusing on enhancing product quality and personalized designs to meet changing consumer preferences[6] - The Group focused on strengthening the Jiuguang brand, optimizing product mix, and enhancing the shopping environment to meet customer demand for high-quality products[13] - Continued integration of online platforms with physical stores and improvement of VIP membership programs to increase customer traffic and sales[13] - The Group aims to enhance the Jiuguang brand's leadership in the department store retail industry in Shanghai and the Yangtze River Delta, focusing on optimizing product and service portfolios[29] - The Group plans to introduce more experiential consumption options, including a new water park with a surf simulator and a 6-meter tall water slide, to attract customers[31] Operational Insights - In the first half of 2024, Shanghai Jiuguang's average daily footfall increased by 22.3% year-on-year to 34,000 visitors, while total sales revenue decreased by 4.0% year-on-year to RMB155.7 million[14] - The average ticket size at Shanghai Jiuguang dropped by 12.9% year-on-year to RMB181, and the stay-and-buy ratio decreased slightly by 1.9 percentage points to 75.3%[14] - Suzhou Jiuguang's average daily footfall grew by 16.4% year-on-year to approximately 14,400 visitors, but total sales proceeds dropped 17.5% year-on-year to RMB387.1 million[18] - The average ticket size at Suzhou Jiuguang fell by 2.8% year-on-year to RMB482, while the stay-and-buy ratio decreased by 11.6 percentage points to 49.2%[18] Investment and Financing - The Group entered into a 3-year entrusted loan agreement providing a loan facility of up to RMB60 million to Shanghai Joinbuy at a higher interest rate than normal bank deposits[8] - Net debt decreased to approximately RMB384.3 million from RMB405.4 million as of December 31, 2023, mainly due to dividends received from associates[9] - Cash and cash equivalents amounted to approximately RMB2,767.9 million, down from RMB2,823.6 million, primarily due to repayment of RMB20.0 million in bank borrowings and capital expenditures[9] - The Group's strategic stake in Beiren Group saw a 37.0% decrease in net profit for the period, down to RMB96.2 million from RMB152.7 million last year[21] Legal and Compliance - The Group has made full impairment against the total amount of trade receivables due from debtors, indicating a significant risk in recoverability[26] - As of December 31, 2023, the independent legal advisor assessed the likelihood of recovering any balance of trade receivables as very low, leading the Group to maintain its position on full impairment since 2019[27] - The Group's management assessed the recoverability of Trade Receivables as very low, leading to a Full Impairment against these receivables as of December 31, 2023[56] Future Outlook - The Group anticipates a complex international environment and a continued slowdown in global economic growth, with challenges in the Chinese economy such as a sluggish real estate market and weak consumer confidence[30] - Despite global economic challenges, the Chinese economy is expected to maintain a growth trajectory, with a cautiously optimistic outlook for the retail market[31] - The Group will continue to seek investment opportunities with promising potential to achieve long-term growth and deliver sustained returns to shareholders[31]

Financial Performance - Revenue decreased by 7.3% to RMB 644.6 million compared to RMB 695.2 million in the same period last year[1]. - Profit attributable to owners of the company fell by 67.4% to RMB 41.7 million, down from RMB 127.6 million[1]. - Earnings per share dropped by 67.4% to RMB 0.028 from RMB 0.087[1]. - Total comprehensive income for the period attributable to owners was RMB 130.9 million, down from RMB 265.6 million[3]. - The group's net profit attributable to shareholders fell by 67.4% to RMB 41.7 million, down from RMB 127.6 million in the previous year[26]. - Adjusted EBITDA decreased by 18.7% to RMB 197.1 million, driven by a decline in sales and revenue[33]. Revenue Breakdown - Revenue from self-operated sales was RMB 262.4 million, down from RMB 281.1 million[8]. - Revenue from licensed counter sales decreased to RMB 202.6 million from RMB 251.2 million[8]. - Service revenue was RMB 17.9 million, a slight decrease from RMB 19.2 million[8]. - Total sales revenue dropped by 11.5% to RMB 1,450.4 million from RMB 1,638.6 million year-on-year[24]. - Other income, including management fees and exchange gains/losses, decreased by 7.5% to RMB 101.6 million, attributed to lower sales and reduced income from third-party payment platform fees[30]. Cost and Expenses - Gross profit margin decreased, with gross profit at RMB 362.1 million compared to RMB 394.1 million last year[3]. - Selling and distribution costs decreased by 4.0% to RMB 289.5 million from RMB 301.6 million in the previous year[27]. - General administrative expenses increased by 3.9% to RMB 118.9 million, primarily due to rising employee costs[28]. - Employee costs rose to RMB 106,760 thousand in 2024, up from RMB 99,888 thousand in 2023, indicating an increase of approximately 6.9%[11]. - Financing costs rose by 11.1% to RMB 93.5 million, with bank loan interest at RMB 60.3 million and lease liabilities interest at RMB 33.2 million[32]. Dividends and Shareholder Returns - The board of directors did not declare any interim dividend for the period[1]. - The company did not declare or pay any dividends for the six months ended June 30, 2024, consistent with the same period in 2023[11]. - The group has decided not to declare an interim dividend for the six months ending June 30, 2024, consistent with the previous year[49]. Market and Economic Conditions - The overall economic environment showed signs of slowing growth, with GDP growth of 5.0% year-on-year in the first half of 2024[22]. - The retail market is becoming increasingly cautious, leading to a decline in average customer spending[24]. - The group is optimistic about the retail market outlook, supported by government policies to stimulate consumer demand, despite challenges in the broader economic environment[46]. Strategic Initiatives - The group plans to enhance its brand presence through online platforms like Xiaohongshu and Douyin, utilizing live streaming and short videos to boost online sales and attract customers to physical stores[47]. - The group aims to introduce more experiential and immersive consumption projects, including a newly opened water park at Shanghai Jiuguang Center, featuring a surfing simulator and a 6-meter high water slide[46]. - The group will enhance its VIP membership program to foster customer loyalty through personalized product recommendations and exclusive offers[46]. - The group will continue to optimize its product and service offerings to meet consumer demand for high cost-performance products, with plans to introduce new health and wellness brands in Shanghai[46]. - The group is focused on maintaining a competitive salary structure for employees, ensuring compensation aligns with market trends[48]. Operational Metrics - Average daily foot traffic at Shanghai Jiuguang Center increased by 22.3% to 34,000 visitors, while sales decreased by 4.0% to RMB 155.7 million[39]. - Suzhou Jiuguang's average daily foot traffic increased by 16.4% year-on-year to approximately 14,400 visitors, while the conversion rate and average transaction value decreased by 11.6 percentage points and 2.8% to 49.2% and RMB 482, respectively[41]. - The occupancy rates for the two office buildings at Shanghai Jiuguang Center reached approximately 70% and 10%, generating rental income of about RMB 16.3 million[39]. Receivables and Liabilities - The total accounts payable decreased to RMB 825,060 thousand as of June 30, 2024, from RMB 959,356 thousand as of December 31, 2023, a reduction of about 14%[15]. - The company's accounts receivable as of June 30, 2024, amounted to RMB 80,553 thousand, a decrease from RMB 85,189 thousand as of December 31, 2023, reflecting a decline of about 5.5%[14]. - The group has fully impaired receivables from Beiren Group, with no progress reported in recovering outstanding amounts, leading to continued reliance on Beiren's management for necessary actions[44]. - Independent legal opinions indicate a very low likelihood of recovering the outstanding receivables, which have been fully provisioned since 2019[45].

Financial Performance - For the year ended December 31, 2023, the Group's revenue reached RMB1,349 million, representing a 19.6% year-on-year growth[8]. - The Group turned around from a loss to a profit, with profit attributable to owners of the Company amounting to RMB87.8 million, compared to a loss of RMB24.4 million in 2022[8]. - Earnings per share were RMB0.06, recovering from a loss per share of RMB0.017 in 2022[8]. - The Group's net profit attributable to shareholders for the year ended December 31, 2023, was RMB 87.8 million, compared to a loss of RMB 24.4 million in 2022[29]. - Total sales proceeds rose by 25.2% year-on-year to RMB3,154.1 million from RMB2,520.2 million in the previous year[61]. - The Group's operating profit before tax was RMB21.5 million for the year, compared to an operating loss of RMB15.9 million in 2022[78]. - Adjusted EBITDA for the year increased by 9.6% to RMB434.3 million from RMB396.1 million in 2022, driven by a recovery in sales and revenue[82]. - The total profit for the year after tax was RMB 82.16 million, compared to RMB 78.85 million in the previous year[147]. Market and Economic Outlook - The Central Government has designated 2024 as the "Year of Consumption Promotion," which is expected to boost retail market growth[9]. - The Chinese economy is anticipated to sustain recovery momentum, positively impacting consumer confidence and retail market growth[22]. - The outlook for the Chinese economy remains stable and positive, with expectations for improvement in the retail market[196]. Customer Engagement and Marketing Strategies - The Group plans to enhance its use of artificial intelligence (AI) analytic tools to better understand consumer preferences and improve marketing activities[10]. - The Group aims to optimize the shopping environment and increase experiential content to attract consumers and encourage frequent visits[11]. - The Group will continue to improve its VIP membership program with exclusive offers and benefits to enhance customer experience[10]. - The Group plans to enhance customer engagement through AI tools to analyze consumer behavior and optimize product offerings and marketing activities[36]. - The Group aims to leverage both physical and online business channels, utilizing social media to enhance customer shopping experiences and drive foot traffic to stores[35]. - The Group is enhancing its VIP membership program by utilizing AI technology to analyze purchasing habits and provide personalized recommendations to increase customer satisfaction and loyalty[171]. - The Group will leverage both physical and online business channels to increase brand exposure and attract consumers[195]. Operational Efficiency and Cost Management - Total selling and distribution costs increased by 5.9% year-on-year to RMB 612.1 million, while the percentage of these costs to total sales decreased to 19.4% from 22.9% in 2022[31]. - General administrative expenses rose by 10.8% year-on-year to RMB 261.3 million, primarily due to increased staff costs as business operations normalized[31]. - Staff costs (excluding directors' emoluments) increased by 8.1% year-on-year to RMB 208.4 million, reflecting the return to normal business operations and salary increments[31]. - The Group's total finance costs for the year amounted to approximately RMB181.9 million, an increase of 57.1% from RMB115.7 million in 2022, primarily due to higher bank loan interest and lease liabilities[82]. Environmental and Sustainability Initiatives - The Group aims to reduce total waste intensity to 1.09 tons/sq.m. by 2030, a 2% reduction from 2023 levels[156]. - The Group has established a sewage treatment system in compliance with government standards for urban sewage treatment[157]. - The Group is committed to minimizing overall energy consumption through scientific management and appropriate controls in daily operations[164]. - The Group has established disposal agreements with municipal government departments for the collection and treatment of kitchen waste, ensuring compliance with government regulations[161]. - The Group aims to reduce total water consumption intensity to 1.29 ton/sq.m. by 2030, representing a 3% reduction from the 2023 level[181]. - The total emissions for the financial year 2023 amounted to 725,916.74 tons, with an emission intensity of 1.11 ton/sq.m.[184]. - The total greenhouse gas emissions of carbon dioxide for the financial year 2023 were 84,518.03 tons, with an intensity of 0.13 ton/sq.m.[185]. - The Group aims to reduce greenhouse gas emissions intensity to 0.13 tons/sq.m by 2030, a 3% reduction from 2023 levels[190]. Investment and Asset Management - The Group's investment property is primarily composed of leasehold land and buildings, held for long-term rental yields or capital appreciation[95]. - The Group pledged assets to secure bank facilities amounting to RMB 3,300 million, an increase from RMB 2,240 million in the previous year[128]. - The Group did not make any significant investments or acquisitions during the year, nor were there any material disposals of subsidiaries, associates, or joint ventures[128]. - The Group's property, plant, and equipment in China had a book value of approximately RMB 3,631 million, down from RMB 3,786 million in 2022[128]. Performance Metrics and Sales Analysis - Sales in the first half of the year increased by 50.7% year-on-year, but growth slowed to approximately 5.8% year-on-year in the second half due to cautious consumer sentiment[61]. - The Group's share of profit in its associate Beiren Group increased by 68.9% year-on-year to RMB185.0 million[78]. - The average concession rate for the year slightly increased by 0.3 percentage points to 15.3%[137]. - The conversion rate and average transaction value decreased by 8.3 percentage points and 9.7% year-on-year to 55.5% and RMB 464, respectively[137].

Financial Performance - Revenue increased by 19.6% to RMB 1,349.0 million compared to RMB 1,127.6 million in the previous year[12] - Profit attributable to owners of the company was RMB 87.8 million, a turnaround from a loss of RMB 24.4 million in the previous year[12] - Earnings per share was RMB 0.060, compared to a loss per share of RMB 0.017 in the previous year[12] - Total comprehensive income for the year was RMB 275.6 million, up from RMB 106.8 million in the previous year[13] - The company reported total income from self-operated sales of RMB 523.3 million, up from RMB 430.3 million[8] - Total sales revenue rose by 25.2% from RMB 2,520.2 million in the previous year to RMB 3,154.1 million[37] - Gross profit increased by 19.3% to RMB 785.4 million, while the gross profit margin decreased from 26.1% in 2022 to 24.9% in 2023[38] - Adjusted EBITDA rose by 9.6% to RMB 434.3 million from RMB 396.1 million in 2022, attributed to the recovery in sales and revenue[42] - The group's net profit attributable to shareholders increased by 68.9% to RMB 185.0 million for the year, up from RMB 109.5 million in the previous year[104] Income and Expenses - Rental income increased to RMB 302.9 million from RMB 224.5 million[8] - Interest income from bank deposits was RMB 55.8 million, compared to RMB 26.2 million in the previous year[9] - Total employee costs increased from RMB 208,753 thousand in 2022 to RMB 236,632 thousand in 2023[24] - General administrative expenses increased by 10.8% year-on-year to RMB 261.3 million, primarily due to rising employee costs as business operations normalized[90] - The total sales and distribution costs for the year 2023 amounted to RMB 612.1 million, an increase of 5.9% compared to RMB 577.8 million in the previous year, with the cost-to-sales ratio decreasing to 19.4% from 22.9% due to higher sales growth[64] - Financing costs for the year totaled approximately RMB 181.9 million, up from RMB 115.7 million in 2022, primarily due to an increase in bank loan interest to RMB 124.2 million from RMB 101.5 million[67] Assets and Liabilities - Non-current assets totaled RMB 13,811.8 million, an increase from RMB 12,409.7 million in the previous year[14] - The company’s total liabilities decreased to RMB 11,016.5 million from RMB 10,798.9 million[16] - As of December 31, 2023, the company's net debt decreased to approximately RMB 405.4 million from RMB 560.6 million a year earlier, attributed to increased cash flow from operations[68] Customer Engagement and Sales Strategy - The company aims to enhance customer engagement and sales growth through optimized store environments and marketing activities[36] - The company continues to enhance its product offerings and optimize the shopping environment, focusing on experiential consumption models and various themed marketing activities to attract customers[72] - The group plans to leverage big data analytics to understand customer preferences and enhance marketing strategies, aiming to improve customer engagement and loyalty[110] - The group aims to enhance brand exposure through live streaming, short videos, and emerging social media, while providing online shopping convenience[126] Market Trends and Performance - The company experienced a slowdown in sales growth in the second half of the year, with an increase of approximately 5.8% year-on-year[37] - The total retail sales of consumer goods in China grew by 7.2% year-on-year, with notable increases in jewelry and clothing sectors, which rose by 13.3% and 12.9% respectively[61] - The overall retail sales of the strategic equity holding in Beiren Group increased by approximately 9.3% year-on-year, driven by the recovery of the retail market post-pandemic[104] Employee and Operational Insights - The total number of full-time employees as of December 31, 2023, was 1,172, up from 1,168 the previous year[91] - Employee costs (excluding director remuneration) amounted to RMB 208.4 million for the year ended December 31, 2023, compared to RMB 192.7 million in 2022, reflecting an increase of approximately 8.8%[127] Dividends and Investments - The company did not declare any dividends for the year[12] - The group has not declared any dividends for the year ending December 31, 2023, consistent with the previous year[115] - The company has not made any significant investments or acquisitions during the year[97] Risks and Challenges - The independent legal opinion suggests that the likelihood of recovering any outstanding receivables is very low, with full bad debt provisions made since 2019[81] - The group continues to monitor the situation regarding receivables and has not made progress in recovering outstanding accounts[105] - The company is actively monitoring foreign currency risks and may consider appropriate measures to mitigate potential significant foreign currency risks as needed[69]

Financial Performance - Revenue increased by 36.7% to RMB 695.2 million[40] - Profit attributable to owners of the Company increased by 357.7% to RMB 127.6 million[40] - Earnings per share rose by 357.7% to RMB 0.087[40] - Gross profit for the same period was RMB 394,070,000, with a gross margin of approximately 56.6%, compared to RMB 288,251,000 in 2022[160] - Profit before taxation increased to RMB 303,689,000, up 87% from RMB 162,423,000 in the previous year[160] - Total comprehensive income for the period was RMB 265,645,000, compared to RMB 131,028,000 in the previous year[160] - Net cash inflow from operating activities was RMB 350,435,000, a turnaround from a net outflow of RMB 100,556,000 in the same period last year[166] - Direct sales revenue amounted to RMB 281,139,000, up 40.9% from RMB 199,457,000 in 2022[171] - Income from concessionaire sales reached RMB 251,249,000, a 26.0% increase from RMB 199,350,000 in the previous year[171] - Service income grew to RMB 19,168,000, representing a 39.5% increase from RMB 13,711,000 in 2022[171] Cash and Liquidity - Cash and cash equivalents amounted to approximately RMB 2,740.2 million as of June 30, 2023, up from RMB 1,609.1 million as of December 31, 2022[49] - The Company reported a net cash outflow from investing activities of RMB 150,717,000, while financing activities generated a net inflow of RMB 927,902,000[166] - Cash and cash equivalents at the end of the period stood at RMB 2,740,164,000, up from RMB 1,477,559,000 in 2022[166] Trade Receivables and Allowances - As of June 30, 2023, trade receivables amounted to RMB 70,749,000, a decrease from RMB 100,791,000 as of December 31, 2022, reflecting a decline of approximately 29.8%[6] - The loss allowance on expected credit losses increased to RMB 6,376,000 from RMB 2,657,000, indicating a rise of approximately 140.5%[6] - The Group has made full impairment against the total trade receivable balances due from the debtors[101] - There has been no additional information regarding the recoverability of trade receivables from the Debtors as of June 30, 2023, and the full impairment remains appropriate[155] Liabilities and Borrowings - Bank borrowings increased significantly to RMB 3,290,000,000 from RMB 2,240,000,000, marking an increase of approximately 47%[22] - The effective interest rates of the borrowings decreased to 3.7%–3.8% from 4.31%–4.41% per annum[26] - The Group's total liabilities decreased to RMB 949,701,000 from RMB 1,094,625,000, a reduction of approximately 13.2%[25] - The debt-to-equity ratio increased to 34.9% as of June 30, 2023, compared to 24.1% as of December 31, 2022, due to increased bank loans[49] - Bank borrowings due within one year decreased dramatically from RMB 1,120,000 to RMB 30,000, a reduction of 97.3%[137] Inventory and Trade Payables - The Group's inventories held for resale decreased to RMB 94,355,000 from RMB 109,471,000, representing a decline of about 13.8%[12] - Total trade payables as of June 30, 2023, were RMB 44,049,000, down from RMB 47,548,000, a decrease of approximately 10.5%[25] - The average credit period for trade payables is maintained within 45 days from the invoice date, ensuring timely payments[18] Market and Operational Insights - In the first half of 2023, the retail market improved significantly, with sales proceeds and rental income of Shanghai Jiuguang Center increasing by 49.0% and 55.4% year-on-year to RMB162.2 million and RMB90.5 million respectively[52] - Average daily footfall at Shanghai Jiuguang rose to approximately 27,800 visitors, with a stay-and-buy ratio increasing by 12.9 percentage points to 77.2%[52] - Total sales revenue of Shanghai Jiuguang increased by 71.3% year-on-year to RMB995.6 million, despite a decrease in average ticket size by 14.0% to RMB404[53] - The occupancy rate of the East Tower at Shanghai Jiuguang Center was close to 50% by the end of June 2023, despite a weak commercial property market[52] - The Group introduced non-traditional retail and service tenants, such as fitness studios, to optimize its product and service portfolio[52] Strategic Initiatives and Future Outlook - The Group aims to enhance its tenant mix and diversify business formats to increase customer traffic and boost sales[1] - The VIP membership program will be improved to deepen customer engagement and encourage more frequent visits and purchases[1] - The Group plans to adopt innovative marketing strategies, including livestreaming and social media campaigns, to enhance brand exposure and online shopping options[1] - The Group will continue to explore potential business and investment opportunities for sustainable growth[1] - The outlook for the retail market is cautiously optimistic, driven by new consumption scenarios emerging in the post-pandemic environment[110] Governance and Compliance - The Company has complied with the Corporate Governance Code, with no significant deviations noted during the reporting period[121] - All directors confirmed compliance with the Model Code regarding securities transactions during the six months ended June 30, 2023[121] - The Group's unaudited interim results for the six months ended June 30, 2023, have been reviewed by the audit committee and the auditor[122]

Financial Performance - Revenue increased by 36.7% to RMB 695.2 million compared to RMB 508.5 million in the same period last year[2] - Profit attributable to owners surged by 357.7% to RMB 127.6 million, with earnings per share rising by 357.7% to RMB 0.087[1] - Gross profit reached RMB 394.1 million, up from RMB 288.3 million, indicating a strong growth in profitability[17] - The company's profit attributable to owners for the six months ended June 30, 2023, was RMB 127,622 thousand, a significant increase from RMB 27,884 thousand in the same period of 2022, representing a growth of approximately 358%[29] - The company's net profit attributable to shareholders increased by 357.7% year-on-year to RMB 127.6 million, primarily due to a significant increase in sales and other income as operations normalized, and a 28.6% rise in profit share from Beiren Group to RMB 152.7 million[64] - The adjusted EBITDA for the period increased to RMB 242.4 million from RMB 170.0 million in the first half of 2022, primarily due to the recovery in sales and revenue[96] Sales and Revenue Growth - The company reported a significant increase in sales from self-operated sales, which rose to RMB 281.1 million from RMB 199.5 million[8] - Total sales proceeds rose by 50.7% to RMB 1,638.6 million, compared to RMB 1,087.4 million in the previous year[40] - Sales and rental income at Shanghai Jiuguang Center increased by 49.0% and 55.4% year-on-year to RMB 162.2 million and RMB 90.5 million, respectively, with a daily foot traffic of approximately 27,800 and a purchase conversion rate rising by 12.9 percentage points to 77.2%[71] - Suzhou Jiuguang's total sales increased by 22.2% year-on-year to RMB 469.5 million, with daily foot traffic rising by 11.8% to approximately 12,300[75] - Daily foot traffic at Shanghai Jiuguang increased significantly from 17,000 to 49,000 visitors, while total sales surged by 71.3% to RMB 995.6 million[103] Income and Expenses - Rental income increased to RMB 143.7 million, compared to RMB 96.0 million in the previous year[8] - Interest income from bank deposits rose to RMB 30.4 million, up from RMB 13.2 million[10] - Tax expenses for the six months ended June 30, 2023, totaled RMB 38,078 thousand, compared to RMB 31,506 thousand in 2022, indicating an increase of about 21%[27] - Employee costs for the period were RMB 99,888 thousand, up from RMB 93,637 thousand in the previous year, reflecting a rise of approximately 6.5%[28] - Total sales and distribution costs rose by 6.8% year-on-year to RMB 301.6 million, while the percentage of these costs to total sales decreased from approximately 26.0% in the previous year to about 18.4% due to sales growth outpacing cost increases[64] Assets and Liabilities - Total non-current assets amounted to RMB 13.97 billion, compared to RMB 12.41 billion in the previous year[20] - The net current assets improved significantly to RMB 1.87 billion, compared to a net current liability of RMB 353.5 million in the previous year[20] - The company's debt-to-equity ratio increased to 34.9% from 24.1% at the end of 2022, due to the increase in bank loans[68] - The net debt decreased from approximately RMB 560.6 million as of December 31, 2022, to about RMB 490.1 million, attributed to increased operational cash flow[96] Strategic Initiatives - The company has been actively exploring sustainable development opportunities to meet the increasing demand for health and environmentally friendly products in the post-pandemic era[39] - The company aims to enhance its overall competitiveness by optimizing store operations and creating unique marketing scenarios to attract consumers[39] - The group will continue to optimize its merchant portfolio and enrich business formats to enhance customer flow and sales[116] - The group plans to improve its VIP membership program to deepen customer interaction and increase store visit frequency[122] - The group aims to explore new consumption trends and innovate marketing strategies both online and offline, including live streaming and social media promotions[117] Market Outlook - The retail market outlook remains cautiously optimistic despite challenges in the real estate sector and consumer spending behavior[114] - In the first half of 2023, China's GDP grew by 5.5% year-on-year, with national retail sales increasing by 8.2%[61] - Department store retail sales rose by 9.8% year-on-year in the first half of 2023[61] Corporate Governance - The company did not declare any interim dividend for the period, consistent with the previous year[12] - The group did not make any significant investments or acquisitions during the reporting period[46] - The group has not purchased, sold, or redeemed any listed securities during the six months ended June 30, 2023[124] - The board acknowledges the unique circumstances surrounding the audit modifications and has no specific timeline for resolution[111]

Financial Performance - For the year ended December 31, 2022, the Group's revenue was RMB1,127.6 million, a year-on-year decrease of 13.2%[10] - The Group reported a loss attributable to owners of RMB24.4 million for the year, compared to a net profit of RMB143.4 million in 2021[10] - The Group's market capitalization as of December 31, 2022, was HK$1,318 million[8] - The Group's total selling and distribution costs increased by 10.3% from RMB523.7 million in 2021 to RMB577.8 million in 2022, with selling and distribution expenses as a percentage of total sales rising to approximately 22.9% from 15.0% in 2021[46] - General administrative expenses slightly decreased to approximately RMB235.9 million from RMB238.3 million in 2021, despite an additional RMB39.2 million depreciation charge due to the commencement of operations at the JGC[46] - Staff costs (excluding directors' remuneration) edged up 0.7% to approximately RMB192.7 million from RMB191.3 million in 2021, with the total number of full-time staff employed by the Group increasing to 1,168[46] - Other income, gains, and losses increased by 75.7% to RMB229.2 million, primarily due to full-year management fee income from the JGC and an increase in subsidies received from local governments amounting to RMB36.5 million[46] - The Group's interest and investment income decreased by 49.0% from RMB51.3 million in 2021 to RMB26.2 million in 2022, mainly due to a decrease in interest from structured deposits[46] - Total finance costs charged to the profit and loss account amounted to approximately RMB115.7 million, a significant increase from RMB27.9 million in 2021, primarily due to bank loan interest of RMB101.5 million that could no longer be capitalized after the JGC commenced operations[46] Strategic Initiatives - The Group plans to enhance its VIP membership program with exclusive offers and discounts to increase customer loyalty and purchasing frequency[11] - The Group plans to enhance its VIP membership program to deepen customer engagement through exclusive offers and personalized rewards, aiming to increase purchase frequency and size[26] - The Group's strategy includes the integration of online and offline retail businesses to strengthen competitiveness and respond to changing consumer demands[38] - The Group has launched experiential retail initiatives, including a cinema, skate park, and karaoke bar, to drive customer footfall and enhance brand loyalty[26] - The Group will increase leasing efforts for its two office towers at the Shanghai Jiuguang Center, expecting significant and stable cash flow from the office leasing market as it recovers post-pandemic[27][41] - The Group aims to establish a benchmark commercial flagship complex in North Shanghai, featuring diverse operations including premium beauty products, light luxury goods, restaurants, beauty salons, and fitness centers[175] Operational Developments - The Group has signed a new tenancy agreement for the Shanghai Jiuguang premises for 20 years, with a right-of-use asset value of approximately RMB1.6 billion to be recognized[19] - The renewal of the lease for the Shanghai Jiuguang Department Store for another 20 years after the initial lease expires in September 2024 reflects the Group's confidence in the long-term retail market prospects in Shanghai[26] - The Group's two established department stores, Shanghai Jiuguang and Suzhou Jiuguang, along with the new Shanghai Jiuguang Center, outperformed the brick-and-mortar retail venues in the market during the year[38] - In its first year of operation, JGC generated sales revenue of RMB232.0 million and rental income of RMB140.5 million, with an average daily footfall of approximately 26,900 visitors and a stay-and-buy ratio of 65.9%[49] - Shanghai Jiuguang Center recorded sales revenue of RMB 232.0 million and rental income of RMB 140.5 million in its first operational year, with an average daily foot traffic of approximately 26,900 and a purchase conversion rate of 65.9%[179] - The Group's office buildings at Shanghai Jiuguang Center have commenced leasing activities, expected to provide stable cash flow in the future[175] Market Outlook - The Group remains cautiously optimistic about the retail market in Shanghai for 2023, anticipating a gradual release of pent-up consumer demand[12] - Following the abolition of the zero-COVID policy in December 2022, early signs of recovery in China's retail market were observed in the first two months of 2023[71] Environmental and Social Responsibility - The total amount of non-hazardous waste generated in the fiscal year 2022 was 529,617.86 tons, with a density of 0.81 tons per square meter[65] - In 2022, the total greenhouse gas emissions were 72,739.58 tons, with a density of 0.11 tons per square meter[84] - The Group's direct energy consumption for 2022 included 90,360,750 kWh of electricity, 557,169 cubic meters of natural gas, and 4,723 tons of steam energy[89] - The Group aims to reduce total water consumption intensity to 1.61 tons per square meter by 2030, a 5% reduction compared to 2019 levels[94] - The Group has implemented measures to enhance product safety, particularly for baby and children products, ensuring compliance with relevant regulations[68] - The Group's commitment to environmentally friendly practices includes using low VOC compliant materials in renovation projects[86] - The Group promotes the use of recycled paper bags and has implemented a charge for non-woven bags to reduce plastic consumption[125] - The Group has identified various physical risks related to climate change that may threaten operations and financial performance, including extreme weather events[127] - The Group has established internal guidelines to address climate-related risks and conducts regular drills to enhance employee awareness of safety[129] - The Group's commitment to corporate social responsibility includes active participation in community services, particularly focusing on education and support for underprivileged groups[196] Employee and Workplace Policies - The Group has 1,168 employees as of December 31, 2022, with 1,163 located in China and 5 in Hong Kong[105] - The employee turnover rate for the financial year 2022 was 1.45%[107] - The Group's employment policy emphasizes equal opportunities and aims to create a discrimination-free working environment[103] - The Group has not reported any work-related fatalities in the past three years, including the financial year 2022[111] - The Group's initiatives include a paperless office model to reduce paper usage through the enhancement of the OA electronic office system[126] - The average training hours completed per employee were 7.92 hours for males and 8.00 hours for females[76] - The percentage of trained employees was 20.80% for males in senior management and 12.97% for females in middle management and below[75] - The Group has implemented comprehensive insurance coverage for employees, including work injury and employer liability, as well as annual health checks[160] - The Group has established a performance evaluation system to attract and retain talent, ensuring transparency and fairness[133] - The Group's employee gender distribution is 43.0% female and 57.0% male, with the majority (44.5%) in the age group of 31-40[135] Customer Service and Quality Assurance - The Group is committed to providing safe and high-quality products and services, addressing customer complaints with utmost attention[66] - The Group's customer service department effectively handled complaints during the epidemic prevention period, ensuring proper management of returns and exchanges[154] - The Group emphasizes high standards of product quality and service, actively addressing customer complaints to maintain its reputation[182] - The Group received 272 complaints regarding products and services in the financial year 2022, which is consistent with industry norms[156]