公司名稱: 江蘇宏信超市連鎖股份有限公司 呈交日期: 2025年9月2日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02625 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 214,246,910 | RMB | | 1 RMB | | 214,246,910 | | 增加 / 減少 (-) | | | | | | RMB | | | | 本月底結存 | | | 214,246,910 | RMB | | 1 RMB | | 214,246,910 | 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 | 2. 股份分類 | 普通股 | 股份類別 | 其他類別 (請註明 ...

Core Viewpoint - Jiangsu Hongxin (02625.HK) reported a revenue increase of 16.2% to RMB 770 million for the six months ending June 30, 2025, but net profit decreased by 26.6% to RMB 13.5 million due to increased listing expenses [1] Financial Performance - Revenue increased by 16.2% to RMB 770 million [1] - Net profit decreased by 26.6% to RMB 13.5 million compared to RMB 18.4 million for the same period in 2024 [1] - Basic and diluted earnings per share were RMB 0.07, down from RMB 0.11 for the six months ending June 30, 2024 [1] - The board decided not to declare any interim dividend for the reporting period [1] Business Strategy - The company is actively expanding its new retail business by enhancing its "offline stores + online platforms" strategy [1] - Initiatives include launching multiple platform operation windows to meet consumer instant retail demands [1] - The company is preparing for the introduction of unmanned smart stores to improve operational efficiency [1] - Investment in unmanned logistics vehicles is aimed at increasing delivery efficiency [1] - The company is enhancing its information technology standards to integrate online and offline product and inventory management [1] - Investment in research and development of new equipment such as unmanned coffee robots is also underway [1]

Group 1 - The company reported a revenue of 771 million RMB for the six months ending June 30, 2025, representing a year-on-year increase of 16.22% [1] - The profit attributable to shareholders was 12.499 million RMB, which reflects a year-on-year decrease of 30.57% [1] - The basic earnings per share were 0.07 RMB [1]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company's revenue increased by 16.2% to RMB 771.3 million, but gross profit and profit for the period decreased due to higher costs and increased listing expenses Financial Highlights for the Six Months Ended June 30, 2025 | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 771,288 | 663,625 | 16.2% | | Gross Profit | 138,879 | 148,860 | -6.7% | | Profit for the Period | 13,516 | 18,421 | -26.6% | | Earnings Per Share (RMB) | 0.07 | 0.11 | -36.4% | - Revenue increased by **16.2% to RMB 771.3 million**, primarily driven by increased bulk retail sales, wholesale, and catering services sales[4](index=4&type=chunk) - Gross profit decreased by **6.7% year-on-year to RMB 138.9 million**, with gross margin declining by **4.4 percentage points to 18.0%**, mainly due to reduced high-end liquor sales and increased festive promotions[4](index=4&type=chunk) - Profit for the period decreased by **26.6% year-on-year to RMB 13.5 million**, primarily impacted by increased listing expenses[4](index=4&type=chunk) - The Board resolved not to declare any interim dividend for the reporting period[4](index=4&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated financial performance and position, including income, balance sheet, and cash flow statements [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the company's revenue grew by 16.2% to RMB 771.3 million, but higher cost of sales led to a 6.7% decrease in gross profit, and increased listing expenses resulted in a 26.6% decline in profit for the period Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 771,288 | 663,625 | | Cost of Sales | (632,409) | (514,765) | | Gross Profit | 138,879 | 148,860 | | Operating Profit | 32,049 | 38,085 | | Profit Before Tax | 22,844 | 26,709 | | Profit for the Period | 13,516 | 18,421 | | Total Comprehensive Income for the Period | 14,356 | 19,877 | - Cost of sales increased by **22.9% year-on-year**, outpacing revenue growth and pressuring gross profit[5](index=5&type=chunk) - Operating profit decreased by **15.9% year-on-year**, reflecting faster growth in costs and expenses than gross profit[5](index=5&type=chunk) [Consolidated Statement of Financial Position](index=5&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the company's total assets and net assets increased, with improved net current assets and liquidity ratio, notably a significant rise in financial assets at fair value through other comprehensive income Key Data from Consolidated Statement of Financial Position | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 431,093 | 399,108 | | Current Assets | 1,212,323 | 1,056,580 | | Current Liabilities | 861,864 | 774,555 | | Net Current Assets | 350,459 | 282,025 | | Net Assets | 662,456 | 540,910 | | Total Equity | 662,456 | 540,910 | - Financial assets at fair value through other comprehensive income increased from **RMB 31.7 million** at the end of 2024 to **RMB 57.8 million** as of June 30, 2025[7](index=7&type=chunk) - Trade and bills receivables increased from **RMB 190.0 million** at the end of 2024 to **RMB 313.1 million** as of June 30, 2025[7](index=7&type=chunk) - Bank and other borrowings (current portion) increased from **RMB 409.7 million** at the end of 2024 to **RMB 528.0 million** as of June 30, 2025[7](index=7&type=chunk) [Notes to the Interim Financial Report](index=7&type=section&id=Notes%20to%20the%20Interim%20Financial%20Report) This section provides detailed explanations and disclosures for the interim financial statements, covering accounting policies, revenue breakdown, expenses, and financial position items [General Information](index=7&type=section&id=1%20General%20Information) The company, established in 2005 and listed on the HKEX Main Board on March 31, 2025, primarily engages in grain and oil wholesale and operates "Hongxinlong" brand supermarkets and convenience stores in central Jiangsu - The company was listed on the Main Board of the Hong Kong Stock Exchange on **March 31, 2025**[9](index=9&type=chunk) - The Group is primarily engaged in grain and oil wholesale business and operates supermarkets and convenience stores under the "Hongxinlong" brand in central Jiangsu[9](index=9&type=chunk) [Basis of Preparation](index=7&type=section&id=2%20Basis%20of%20Preparation) The interim financial report is prepared in accordance with HKEX Listing Rules and IAS 34, applying the same accounting policies as the 2024 annual financial statements, and remains unaudited - The interim financial report is prepared in accordance with **IAS 34** and was authorized for issue on **August 28, 2025**[10](index=10&type=chunk) - The interim financial report is unaudited, but the comparative financial data for 2024 is extracted from the annual financial statements which received an unqualified opinion from the auditor[12](index=12&type=chunk) [Changes in Accounting Policies](index=8&type=section&id=3%20Changes%20in%20Accounting%20Policies) The amendment to IAS 21 was applied in this period, but it had no significant impact on the interim results as the Group did not engage in foreign currency non-exchangeable transactions - The Group has applied the amendment to **IAS 21**, but it had no significant impact on the interim results due to the absence of foreign currency non-exchangeable transactions[13](index=13&type=chunk) - No new standards or interpretations not yet effective were applied in this accounting period[14](index=14&type=chunk) [Revenue and Segment Reporting](index=8&type=section&id=4%20Revenue%20and%20Segment%20Reporting) The Group's revenue primarily derives from goods sales (retail and wholesale), commission income, and catering services sales, operating as a single segment mainly in China, thus no segment or geographical information is presented Disaggregation of Revenue from Contracts with Customers by Major Products | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Retail Business - General Sales | 261,639 | 262,033 | | Retail Business - Bulk Sales | 33,943 | 16,635 | | Wholesale | 441,087 | 355,509 | | Commission Income | 13,758 | 18,710 | | Catering Services Sales | 13,877 | 2,722 | | Rental Income from Operating Leases | 6,984 | 8,016 | | **Total Revenue** | **771,288** | **663,625** | - The Group has only one operating segment and primarily operates in China, thus no segment or geographical information is presented[18](index=18&type=chunk) [Other Income and Net Other Gains](index=9&type=section&id=5%20Other%20Income%20and%20Net%20Other%20Gains) Other income, mainly from service revenue and government grants, increased year-on-year, while net other gains decreased primarily due to a decline in net foreign exchange gains Details of Other Income | Revenue Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Service Income | 2,707 | 2,338 | | Government Grants | 508 | 61 | | Dividend Income | 165 | 79 | | **Total** | **3,380** | **2,478** | Details of Net Other Gains | Gain Source | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Realized Gains from Structured Deposits and Wealth Management Products | 34 | 152 | | Net Foreign Exchange Gains | 210 | 970 | | Net Loss on Disposal of Property, Plant and Equipment | (2) | (51) | | Others | 174 | (36) | | **Total** | **416** | **1,035** | [Profit Before Tax](index=10&type=section&id=6%20Profit%20Before%20Tax) Profit before tax was influenced by net finance costs, inventory costs, depreciation, impairment losses, listing expenses, and auditor's remuneration, with net finance costs decreasing and listing expenses significantly increasing Net Finance Costs | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest Income from Bank Deposits | (1,728) | (929) | | Interest Expense on Bank and Other Borrowings | 9,083 | 9,591 | | Interest Expense on Lease Liabilities | 1,850 | 2,714 | | **Net Finance Costs** | **9,205** | **11,376** | Other Major Expenses | Expense Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Cost of Inventories Recognized as Expense | 624,338 | 509,676 | | Depreciation Expense | 41,818 | 35,536 | | Impairment Losses on Trade and Other Receivables | 2,873 | 4,335 | | Listing Expenses | 12,552 | 7,040 | | Auditor's Remuneration | 1,855 | 1,575 | - Listing expenses increased from **RMB 7,040 thousands** in 2024 to **RMB 12,552 thousands** in 2025, significantly impacting profit before tax[22](index=22&type=chunk) [Income Tax](index=11&type=section&id=7%20Income%20Tax) Income tax expense increased year-on-year, primarily due to higher non-deductible listing expenses, with China income tax calculated at applicable corporate income tax rates and Hong Kong profits tax at 16.5% Details of Income Tax Expense | Tax Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Tax - Provision for the Period | 10,662 | 10,450 | | Deferred Tax - Origination and Reversal of Temporary Differences | (1,334) | (2,162) | | **Total Income Tax** | **9,328** | **8,288** | - The increase in income tax expense was primarily attributable to higher non-deductible listing expenses[59](index=59&type=chunk) [Earnings Per Share](index=11&type=section&id=8%20Earnings%20Per%20Share) Basic earnings per share decreased to RMB 0.07 from RMB 0.11 in the prior year, with diluted earnings per share being the same as basic earnings per share due to no potential dilutive ordinary shares Earnings Per Share Calculation | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Shareholders (RMB thousands) | 12,499 | 18,002 | | Weighted Average Number of Ordinary Shares in Issue (thousands) | 187,466 | 160,685 | | **Basic and Diluted Earnings Per Share (RMB)** | **0.07** | **0.11** | - The company had no outstanding potential dilutive ordinary shares during the reporting period, thus diluted earnings per share were the same as basic earnings per share[26](index=26&type=chunk) [Inventories](index=11&type=section&id=9%20Inventories) During the reporting period, the reversal of inventory impairment provisions amounted to RMB 1.59 million, a significant increase compared to the prior year Reversal of Inventory Impairment Provisions | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Reversal of Inventory Impairment Provisions | 1,590 | 152 | [Trade and Bills Receivables](index=12&type=section&id=10%20Trade%20and%20Bills%20Receivables) Total trade and bills receivables significantly increased, driven by growth in both trade receivables and bills receivables, with most receivables expected to be recovered within one year Trade and Bills Receivables | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Receivables | 213,841 | 173,007 | | Bills Receivables | 99,286 | 17,000 | | **Total** | **313,127** | **190,007** | Ageing Analysis of Trade Receivables | Ageing | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 Months | 200,614 | 122,506 | | Over 3 Months but Within 6 Months | 11,980 | 44,062 | | Over 6 Months but Within 9 Months | 1,051 | 3,293 | | Over 9 Months but Within 12 Months | 196 | 3,021 | | Over 12 Months | – | 125 | - The Group endorsed certain bank acceptance bills to suppliers to settle trade payables, which were derecognized, with a maximum exposure to loss of zero (2024: **RMB 107,608 thousands**)[29](index=29&type=chunk) [Prepayments, Deposits and Other Receivables](index=13&type=section&id=11%20Prepayments,%20Deposits%20and%20Other%20Receivables) Total prepayments, recoverable VAT, and other deposits and receivables increased, with most expected to be recovered or recognized as expenses within one year Prepayments, Deposits and Other Receivables | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Prepayments | 378,670 | 295,909 | | Recoverable VAT | 1,666 | 488 | | Other Deposits and Receivables | 30,067 | 23,824 | | Less: Loss Allowance | (2,168) | (2,168) | | **Total** | **408,235** | **318,053** | [Restricted Deposits and Cash and Cash Equivalents](index=13&type=section&id=12%20Restricted%20Deposits%20and%20Cash%20and%20Cash%20Equivalents) Restricted deposits increased while cash and cash equivalents decreased, with funds remitted out of mainland China subject to foreign exchange control regulations Restricted Deposits | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Pledged for Letters of Credit | 6,100 | 1,600 | Cash and Cash Equivalents | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank Balances | 167,054 | 215,959 | | Cash on Hand | 848 | 899 | | **Total** | **167,902** | **216,858** | - Remittance of funds out of mainland China is subject to foreign exchange control regulations and rules[32](index=32&type=chunk) [Bank and Other Borrowings](index=14&type=section&id=13%20Bank%20and%20Other%20Borrowings) Total bank and other borrowings increased, with short-term borrowings constituting the largest portion, and most borrowings maturing within one year Bank and Other Borrowings | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Short-term Bank and Other Borrowings | 527,463 | 409,265 | | Long-term Bank and Other Borrowings | 41,523 | 58,775 | | **Total** | **569,506** | **468,517** | Maturity Profile of Bank and Other Borrowings | Maturity Period | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 1 Year or On Demand | 527,959 | 409,688 | | After 1 Year but Within 2 Years | 37,397 | 48,787 | | After 2 Years but Within 5 Years | 4,150 | 10,042 | | **Total** | **569,506** | **468,517** | [Trade and Bills Payables](index=14&type=section&id=14%20Trade%20and%20Bills%20Payables) Total trade and bills payables decreased, with most expected to be settled within three months Trade and Bills Payables | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Payables | 83,039 | 110,285 | | Bills Payables | 100 | – | | **Total** | **83,139** | **110,285** | Ageing Analysis of Trade and Bills Payables | Ageing | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 3 Months | 63,664 | 89,894 | | 3 to 12 Months | 12,809 | 12,856 | | Over 12 Months | 6,666 | 7,535 | | **Total** | **83,139** | **110,285** | [Other Payables and Accruals](index=15&type=section&id=15%20Other%20Payables%20and%20Accruals) Total other payables and accruals increased, primarily driven by growth in other tax payables and other payables Other Payables and Accruals | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Staff-related Costs Payable | 5,982 | 15,878 | | Deposits Received | 14,054 | 12,423 | | Other Tax Payables | 22,542 | 12,169 | | Others | 56,599 | 48,054 | | **Total** | **99,177** | **88,524** | [Capital, Reserves and Dividends](index=15&type=section&id=16%20Capital,%20Reserves%20and%20Dividends) Share capital and capital reserves significantly increased due to the issuance of H shares through the initial public offering, with no dividends paid or declared during the reporting period Changes in Share Capital and Capital Reserves | Metric | Number of Ordinary Shares | Share Capital (RMB thousands) | Capital Reserves (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | December 31, 2024 | 160,684,910 | 160,685 | 147,996 | 308,681 | | Issuance of H Shares from IPO | 53,562,000 | 53,562 | 53,628 | 107,190 | | **June 30, 2025** | **214,246,910** | **214,247** | **201,624** | **415,871** | - The company issued **53,562,000 H shares** with a par value of **RMB 1.0** per share through a global offering on **March 31, 2025**, raising gross proceeds of approximately **RMB 123,568 thousands**[36](index=36&type=chunk) - The company neither paid nor declared any dividends for the six months ended June 30, 2025 and 2024[37](index=37&type=chunk) [Commitments](index=16&type=section&id=17%20Commitments) Authorized and contracted capital commitments significantly increased, reflecting future investment plans Unfulfilled Commitments | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Authorized and Contracted | 15,786 | 1,453 | [Significant Related Party Transactions](index=16&type=section&id=18%20Significant%20Related%20Party%20Transactions) Certain bank and other borrowings of the Group are guaranteed by controlling shareholders and key management personnel Related Party Guarantees | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Guarantees for Bank and Other Borrowings | 328,186 | 327,040 | - Certain financings granted to the Group are guaranteed by Mr. Gao Feng, a controlling shareholder, and his spouse Ms. Leng Yuemei, Mr. Zhang Jiaan, a controlling shareholder, and Ms. Yin Qin, a key management personnel[39](index=39&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the company's business, market conditions, and a detailed financial review, including key performance indicators and future strategies [Business Review and Outlook](index=17&type=section&id=Business%20Review%20and%20Outlook) The company primarily engages in grain and oil wholesale, supermarket and convenience store retail ("Hongxinlong" brand), and central kitchen catering services, with future plans to strengthen its market position through omnichannel strategies, smart stores, logistics efficiency, informatization, and market share expansion - The company's business covers supermarkets, convenience stores, mall retail, as well as grain and oil wholesale and catering services[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) - Future strategies include enhancing the "offline stores + online platforms" omnichannel layout, preparing for unmanned smart stores, introducing unmanned logistics vehicles, improving informatization, and investing in R&D for new equipment[46](index=46&type=chunk) - The company plans to expand market share and the number of retail stores, increase warehousing and processing capabilities by establishing new distribution centers and central kitchens, and strengthen ERP and infrastructure systems to enhance operational efficiency[46](index=46&type=chunk) [Market and Industry Overview](index=18&type=section&id=Market%20and%20Industry%20Overview) China's economy continues to recover, supporting consumer spending and accelerating omnichannel transformation in retail; while the chain supermarket market declines due to e-commerce, small and medium-sized supermarkets show resilience, and convenience stores maintain strong growth, but department stores face decline - China's economy continued to recover in 2023, with **GDP growth of 5.2%**, rising per capita disposable income, and online retail accounting for **32.7%**[45](index=45&type=chunk) - The Chinese chain supermarket market had a **CAGR of -1.28%** from 2017-2023, projected to moderately recover to **1.43%** from 2024-2027[47](index=47&type=chunk) - Small and medium-sized supermarkets showed strong growth in Jiangsu Province and Yangzhou City, with an optimistic outlook expected for the coming years[47](index=47&type=chunk) - The convenience store market demonstrated strong growth nationwide and in Yangzhou, with continued expansion expected in the future[48](index=48&type=chunk) - The industry faces challenges such as intense market competition (especially from e-commerce), changing consumer preferences, and operational cost management[48](index=48&type=chunk) [Financial Review](index=19&type=section&id=Financial%20Review) Revenue grew by 16.2% this period, driven by wholesale, bulk retail sales, and catering services; however, a larger increase in cost of sales, reduced high-end liquor sales, and increased listing expenses led to a decline in both gross profit and profit for the period [Revenue](index=19&type=section&id=Revenue) Total revenue increased by 16.2% year-on-year to RMB 771.3 million, with wholesale revenue up 24.1%, bulk retail sales up 104.0%, and catering services revenue up 409.8%, while operating lease rental income decreased by 12.9% Year-on-Year Changes in Revenue Breakdown | Revenue Source | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Wholesale | 441.1 | 355.5 | 24.1% | | Retail Operations - General Sales | 261.6 | 262.0 | -0.2% | | Retail Operations - Bulk Sales | 33.9 | 16.6 | 104.0% | | Catering Services Sales | 13.9 | 2.7 | 409.8% | | Operating Lease Rental Income | 7.0 | 8.0 | -12.9% | - Wholesale revenue growth was primarily due to the introduction of new categories of grain and oil and expansion into the northern Jiangsu market[49](index=49&type=chunk) - Bulk retail sales growth was mainly due to active expansion of group purchasing business with local enterprises and government agencies[50](index=50&type=chunk) - The significant increase in catering services revenue was primarily due to some schools resuming and restarting the catering tender process in the second half of 2024[50](index=50&type=chunk) [Cost of Sales](index=20&type=section&id=Cost%20of%20Sales) Cost of sales increased by 22.9% year-on-year to RMB 632.4 million, mainly due to increased costs from wholesale and bulk retail sales Changes in Cost of Sales | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Sales | 632.4 | 514.8 | 22.9% | - The increase in cost of sales was primarily attributable to higher wholesale and bulk sales costs in the retail business[51](index=51&type=chunk) [Gross Profit and Gross Profit Margin](index=20&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit decreased by 6.7% year-on-year to RMB 138.9 million, with gross margin declining by 4.4 percentage points to 18.0%, mainly due to rising grain and oil costs, reduced high-end liquor sales, and increased festive promotions Changes in Gross Profit and Gross Profit Margin | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 138.9 | 148.9 | -6.7% | | Gross Profit Margin | 18.0% | 22.4% | -4.4 percentage points | - The decrease in gross profit margin was primarily attributable to a slight increase in grain and oil costs, a decline in high-end liquor sales volume, and increased festive promotional activities[52](index=52&type=chunk) [Other Income](index=20&type=section&id=Other%20Income) Other income increased by 36.0% year-on-year to RMB 3.4 million, mainly due to higher service revenue and government grants Changes in Other Income | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 3.4 | 2.5 | 36.0% | - Other income primarily includes service revenue from processing meals for two catering operators in Yangzhou and government grants[53](index=53&type=chunk) [Net Other Gains](index=21&type=section&id=Net%20Other%20Gains) Net other gains decreased by 59.6% year-on-year to RMB 0.4 million, mainly due to a reduction in net foreign exchange gains Changes in Net Other Gains | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Net Other Gains | 0.4 | 1.0 | -59.6% | - The decrease in net other gains was primarily due to a reduction in net foreign exchange gains[54](index=54&type=chunk) [Selling and Distribution Costs](index=21&type=section&id=Selling%20and%20Distribution%20Costs) Selling and distribution costs decreased by 5.5% year-on-year to RMB 75.1 million, mainly due to reduced staff costs Changes in Selling and Distribution Costs | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Selling and Distribution Costs | 75.1 | 79.5 | -5.5% | - The decrease in selling and distribution costs was primarily due to reduced staff costs[55](index=55&type=chunk) [Administrative and Other Operating Expenses](index=21&type=section&id=Administrative%20and%20Other%20Operating%20Expenses) Administrative and other operating expenses increased by 7.1% year-on-year to RMB 32.7 million, mainly due to higher listing expenses, partially offset by reduced staff costs Changes in Administrative and Other Operating Expenses | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative and Other Operating Expenses | 32.7 | 30.5 | 7.1% | - The increase in administrative and other operating expenses was primarily due to higher listing expenses, partially offset by reduced staff costs[56](index=56&type=chunk) [Impairment Losses on Trade and Other Receivables](index=21&type=section&id=Impairment%20Losses%20on%20Trade%20and%20Other%20Receivables) Impairment losses on financial assets decreased by RMB 1.5 million year-on-year to RMB 2.9 million, mainly due to a reduction in trade receivables Changes in Impairment Losses | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (RMB millions) | | :--- | :--- | :--- | :--- | | Impairment Losses on Trade and Other Receivables | 2.9 | 4.3 | -1.5 | - The decrease in impairment losses was primarily due to a reduction in trade receivables compared to the prior year[57](index=57&type=chunk) [Net Finance Costs](index=21&type=section&id=Net%20Finance%20Costs) Net finance costs decreased by RMB 2.2 million year-on-year to RMB 9.2 million, mainly due to increased bank deposit interest income and reduced interest expenses on lease liabilities Changes in Net Finance Costs | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (RMB millions) | | :--- | :--- | :--- | :--- | | Net Finance Costs | 9.2 | 11.4 | -2.2 | - The decrease in net finance costs was primarily due to increased bank deposit interest income and reduced interest expenses on lease liabilities[58](index=58&type=chunk) [Income Tax](index=21&type=section&id=Income%20Tax) Income tax expense increased by 12.1% year-on-year to RMB 9.3 million, primarily due to higher non-deductible listing expenses Changes in Income Tax Expense | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 9.3 | 8.3 | 12.1% | - The increase in income tax expense was primarily due to higher non-deductible listing expenses[59](index=59&type=chunk) [Profit for the Period](index=22&type=section&id=Profit%20for%20the%20Period) Profit for the period decreased by 26.6% year-on-year to RMB 13.5 million, primarily attributable to increased listing expenses Changes in Profit for the Period | Metric | 2025 (RMB millions) | 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Profit for the Period | 13.5 | 18.4 | -26.6% | - The decrease in profit for the period was primarily due to increased listing expenses[60](index=60&type=chunk) [Non-IFRS Measures](index=22&type=section&id=Non-IFRS%20Measures) To supplement IFRS, the company presents adjusted net profit and adjusted net profit margin (non-IFRS measures) by adding back listing expenses to provide a fairer assessment of operating performance - Adjusted net profit is defined as profit for the period adjusted by adding back listing expenses, aiming to provide an overall and fair understanding of operating results and financial performance[63](index=63&type=chunk)[64](index=64&type=chunk) Adjusted Net Profit and Adjusted Net Profit Margin | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Period | 13,516 | 18,421 | | Add back: Listing Expenses | 12,552 | 7,040 | | **Adjusted Net Profit** | **26,068** | **25,461** | | **Adjusted Net Profit Margin** | **3.4%** | **3.8%** | [Financial Position](index=23&type=section&id=Financial%20Position) Shareholders' equity increased from RMB 540.9 million as of June 30, 2024, to RMB 662.5 million as of December 31, 2025, primarily due to the global offering and profit for the period Changes in Shareholders' Equity | Metric | As of December 31, 2025 (RMB millions) | As of June 30, 2024 (RMB millions) | | :--- | :--- | :--- | | Shareholders' Equity | 662.5 | 540.9 | - The increase in shareholders' equity was primarily due to the global offering and profit for the period[65](index=65&type=chunk) [Liquidity and Financial Resources, Treasury Policy and Capital Structure](index=23&type=section&id=Liquidity%20and%20Financial%20Resources,%20Treasury%20Policy%20and%20Capital%20Structure) The Group maintains a sound financial position with an improved current ratio; cash and cash equivalents decreased, and net cash used in operating activities increased. Bank borrowings are RMB-denominated and comply with financial covenants, with no hedging activities undertaken Liquidity and Financial Resources | Metric | As of June 30, 2025 (RMB millions) | As of December 31, 2024 (RMB millions) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 167.9 | 216.9 | | Net Cash Used in Operating Activities | 141.8 | 45.4 | | Total Current Assets | 1,212.3 | 1,056.6 | | Total Current Liabilities | 861.9 | 774.6 | | Current Ratio | 1.41 | 1.36 | - Total long-term bank and other borrowings amounted to **RMB 41.5 million**, while total short-term bank and other borrowings amounted to **RMB 528.0 million**[67](index=67&type=chunk) - The Group had unutilized bank facilities of approximately **RMB 20.1 million** and did not engage in any hedging activities for financial instruments[67](index=67&type=chunk) - The company's share capital comprises H shares and unlisted shares, with no changes in capital structure since the listing date[68](index=68&type=chunk) [Capital Expenditure](index=24&type=section&id=Capital%20Expenditure) Capital expenditure for the period was RMB 71.3 million, primarily for property, plant and equipment, financial assets, and interests in associates. Funding mainly came from operating cash, with future plans to utilize existing cash, borrowings, and global offering proceeds Capital Expenditure | Metric | For H1 2025 (RMB millions) | | :--- | :--- | | Capital Expenditure | 71.3 | - Capital expenditure primarily included the acquisition of property, plant and equipment, financial assets measured at fair value through other comprehensive income, and interests in associates[69](index=69&type=chunk) - The company intends to fund future capital expenditure and long-term investments using existing cash balances, bank and other borrowings, and proceeds from the global offering[69](index=69&type=chunk) [Pledge of Assets](index=24&type=section&id=Pledge%20of%20Assets) The Group pledged land use rights, plant, and buildings with a total net book value of RMB 56.3 million as collateral for bank and other borrowings amounting to RMB 376.8 million - The Group pledged land use rights with a net book value of **RMB 27.6 million** and plant and buildings with a net book value of **RMB 28.7 million** as collateral for bank and other borrowings amounting to **RMB 376.8 million**[70](index=70&type=chunk) [Contingent Liabilities](index=25&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[71](index=71&type=chunk) [Share Pledges](index=25&type=section&id=Share%20Pledges) During the reporting period, controlling shareholders did not pledge their equity interests in shares to provide debt guarantees or support - During the reporting period, controlling shareholders did not pledge their interests in shares to provide debt guarantees or other support for their obligations[72](index=72&type=chunk) [Gearing Ratio](index=25&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio was 86.0%, a slight decrease compared to 86.6% as of December 31, 2024 Gearing Ratio | Metric | As of June 30, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Gearing Ratio | 86.0% | 86.6% | [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=25&type=section&id=Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries,%20Associates%20and%20Joint%20Ventures) The Group invested RMB 25.0 million in Haike (18% stake) and HKD 20.0 million (approximately RMB 18.3 million) in Hanhong (40% stake), classified as financial assets at fair value through other comprehensive income and an associate, respectively, with these transactions not constituting notifiable transactions under the Listing Rules - The Group invested **RMB 25.0 million** in Haike Hongxin Digital Technology (Jiangsu) Co., Ltd. (18% stake), classifying the investment as financial assets at fair value through other comprehensive income[74](index=74&type=chunk) - The Group invested **HKD 20.0 million** (approximately **RMB 18.3 million**) in Hanhong Holdings Limited (40% stake), classifying it as an associate[74](index=74&type=chunk) - Haike is primarily engaged in providing IT-related information services, while Hanhong is primarily engaged in providing business consulting services[74](index=74&type=chunk) [Future Plans for Material Investments and Capital Assets](index=25&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of June 30, 2025, the Group had no other plans for material investments and capital assets beyond those disclosed in the prospectus - As of June 30, 2025, the Group had no plans for material investments and capital assets, other than those disclosed in the "Future Plans and Use of Proceeds" section of the prospectus[76](index=76&type=chunk) [Foreign Currency Fluctuation Risk](index=26&type=section&id=Foreign%20Currency%20Fluctuation%20Risk) Most of the Group's assets, liabilities, and cash flows are RMB-denominated, so the depreciation of RMB against HKD had no significant impact on conversion; the company undertook no hedging activities and will continue to monitor foreign currency markets - Most of the Group's assets, liabilities, and cash flows are denominated in RMB, and the depreciation of RMB against HKD had no significant impact on conversion[77](index=77&type=chunk) - For the six months ended June 30, 2025, the Group did not engage in any hedging activities and has no intention to do so in the foreseeable future[77](index=77&type=chunk) [Material Investments and Events During the Reporting Period](index=26&type=section&id=Material%20Investments%20and%20Events%20During%20the%20Reporting%20Period) As of June 30, 2025, the Group had not undertaken any material investments (where the investment value accounted for 5% or more of total assets) - As of June 30, 2025, the Group had not undertaken any material investments (including any investment in investee companies where the value accounted for 5% or more of the Group's total assets as of June 30, 2025)[78](index=78&type=chunk) [Events After the Reporting Period](index=26&type=section&id=Events%20After%20the%20Reporting%20Period) No other events with a material impact on the Group occurred after the reporting period and up to the date of this announcement, other than those disclosed herein - Other than those disclosed in this announcement, no other events with a material impact on the Group occurred after June 30, 2025, and up to the date of this announcement[79](index=79&type=chunk) [Corporate Governance and Other Information](index=26&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the company's corporate governance practices, employee policies, dividend declarations, global offering specifics, and compliance with regulatory standards [Employees and Remuneration Policy](index=26&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the company had 1,412 employees, with total employee benefits decreasing year-on-year. The company contributes to social insurance and housing provident funds, despite some underpayment, and focuses on internal training for retention and management development Employee Headcount and Benefits | Metric | As of June 30, 2025 | | :--- | :--- | | Total Employees | 1,412 | | Total Employee Benefits (RMB millions) | 43.7 | | Total Employee Benefits as of June 30, 2024 (RMB millions) | 52.2 | Employee Functional Classification | Function | Headcount | | :--- | :--- | | Management | 13 | | Administration | 104 | | Finance and IT | 42 | | Marketing | 11 | | Procurement | 24 | | Logistics | 69 | | Operations | 1,149 | | **Total** | **1,412** | - The company had not fully paid social insurance and housing provident fund contributions for all employees, but no administrative actions, fines, or penalties were incurred during the reporting period[84](index=84&type=chunk) - The company enhances employee retention through internal training programs and cultivates management candidates for business expansion[86](index=86&type=chunk) [Corporate Governance](index=28&type=section&id=Corporate%20Governance) The company is committed to maintaining high corporate governance standards and has fully complied with all principles and applicable code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules since its listing date - The company adopted the code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules as its own corporate governance code since its listing date[87](index=87&type=chunk) - From the listing date to June 30, 2025, the company has consistently complied with all principles and applicable code provisions contained in Part 2 of the Corporate Governance Code[87](index=87&type=chunk) [Interim Dividend](index=28&type=section&id=Interim%20Dividend) The Board recommended not to declare an interim dividend for the six months ended June 30, 2025 - The Board recommended not to declare an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[88](index=88&type=chunk) [Global Offering](index=29&type=section&id=Global%20Offering) The company's H shares were listed on the HKEX Main Board on March 31, 2025, with a global offering of 53,562,000 H shares at an offer price of HKD 2.50 per share, and the over-allotment option has not yet been exercised - The company's H shares were listed on the Main Board of the Stock Exchange on **March 31, 2025**, with a global offering of **53,562,000 H shares**[89](index=89&type=chunk) - The H shares were issued at an offer price of **HKD 2.50** per share, and the over-allotment option has not yet been exercised by the overall coordinator[89](index=89&type=chunk) [Use of Proceeds from Global Offering](index=29&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The net proceeds from the global offering were approximately HKD 89.04 million, lower than estimated due to higher actual listing expenses. The company adjusted the planned use of net proceeds accordingly and has utilized approximately HKD 21.7 million - The net proceeds from the global offering were approximately **HKD 89.04 million**, lower than the **HKD 92.55 million** disclosed in the prospectus, mainly due to higher actual listing expenses (approximately **RMB 41.4 million**) than estimated[90](index=90&type=chunk)[91](index=91&type=chunk) - As of the date of this announcement, the company has utilized approximately **HKD 21.7 million** of the net proceeds from the global offering[92](index=92&type=chunk) Details of Use of Net Proceeds from Global Offering | Use | Estimated Allocation in Prospectus (HKD millions) | Revised Allocation after Actual Listing Expenses (HKD millions) | Utilized (HKD millions) | Remaining Amount (HKD millions) | | :--- | :--- | :--- | :--- | :--- | | Opening New Retail Stores | 32.5 | 27.5 | 20.7 | 6.8 | | Establishing New Distribution Centers | 43.3 | 36.7 | – | 36.7 | | Establishing New Central Kitchens | 28.1 | 23.9 | – | 23.9 | | Enhancing ERP System and Infrastructure Systems | 1.2 | 1.0 | 1.0 | – | | **Total** | **105.1** | **89.1** | **21.7** | **67.4** | [Purchase, Sale or Redemption of the Company's Listed Securities](index=30&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities from the listing date up to the date of this announcement - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities from the listing date up to the date of this announcement[94](index=94&type=chunk) [Standard Code for Securities Transactions by Directors and Supervisors](index=31&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors%20and%20Supervisors) The company adopted the Standard Code to regulate securities transactions by directors, supervisors, and relevant employees, and all directors and supervisors confirmed strict compliance with its provisions - The company has adopted the Standard Code to regulate all dealings in the company's securities by directors, supervisors, and relevant employees[95](index=95&type=chunk) - All directors and supervisors confirmed strict compliance with the required standards set out in the Standard Code from the listing date up to the date of this announcement[95](index=95&type=chunk) [Audit Committee](index=31&type=section&id=Audit%20Committee) The Audit Committee, comprising four independent non-executive directors and one non-executive director, reviewed the unaudited interim consolidated results, confirming compliance with accounting principles, standards, and disclosure requirements - The Audit Committee comprises four independent non-executive directors (Mr. Lam Ka Tak, Mr. Zheng Manjun, Mr. Zheng Yu, and Mr. Zhu Bo) and one non-executive director (Ms. Wei Yan)[96](index=96&type=chunk) - The Audit Committee reviewed the unaudited interim consolidated results for the six months ended June 30, 2025, and confirmed compliance with applicable accounting principles, standards, and requirements, as well as adequate disclosure[96](index=96&type=chunk) [Publication of Interim Results and Interim Report](index=31&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) The interim results announcement has been published on the HKEX and company websites, and the interim report will be made available to shareholders in due course - The interim results announcement is published on the HKEX website (www.hkexnews.hk) and the company's website (www.hxsupermarket.cn)[97](index=97&type=chunk) [Board of Directors](index=32&type=section&id=Board%20of%20Directors) As of the announcement date, the Board of Directors includes seven executive directors, one non-executive director, and four independent non-executive directors - The Board of Directors comprises seven executive directors, one non-executive director, and four independent non-executive directors[98](index=98&type=chunk)

格隆汇8月11日丨江苏宏信(02625.HK)发布公告，公司将于2025年8月28日召开董事会会议，藉以审议并 批准包括截至2025年6月30日止的六个月期间的未经审核中期业绩，及考虑宣派中期股息（如有）。 ...

JIANGSU HORIZON CHAIN SUPERMARKET COMPANY LIMITED 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 依 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 承董事會命 江蘇宏信超市連鎖股份有限公司 主 席 高 峰 中 國 江 蘇，2025年8月11日 於 本 公 告 日 期，董 事 會 成 員 包 括 執 行 董 事 高 峰 先 生、袁 原 先 生、張 佳 安 先 生、 姚 駿 先 生、沈 志 艮 女 士、佴 晶 晶 女 士 及 王 飛 先 生；非 執 行 董 事 韋 燕 女 士；及 獨 立 非 執 行 董 事 林 嘉 德 先 生、鄭 滿 軍 先 生、鄭 宇 先 生 及 朱 波 先 生。 江蘇宏信超市連鎖股份有限公司 （在中華人民共和國註冊成立的股份有限公司） （股份代號：2625） 董事會會議召開日期 江 蘇 宏 信 超 市 連 鎖 股 份 ...

Core Insights - Hongxin Supermarket (02625.HK) has successfully listed on the Hong Kong Stock Exchange, raising approximately HKD 134 million, with a net amount of about HKD 92.55 million (equivalent to RMB 86.26 million) [1] Group 1: Business Model and Strategy - The success of Hongxin Supermarket is attributed to its flexible business model and support from state-owned enterprises, providing strong supply chain support and market influence [3] - The company has shifted its strategy from retail to wholesale and meal supply, particularly in the prepared food sector, which has become a new growth point [3] - Hongxin Supermarket has maintained stable overall performance by focusing on grain and oil wholesale as a secondary growth curve, with wholesale business revenue accounting for 56.9% in the first three quarters of 2024 [3] Group 2: Market Position and Challenges - The listing journey of Hongxin Supermarket faced challenges, including an initial failed submission of the prospectus in 2024, before successfully listing in January this year [3] - The company’s development path has sparked industry attention and discussion regarding its ability to stand out in a competitive market through an innovative model combining wholesale and central kitchen services [3][4] - Despite facing challenges such as declining retail business, cash flow issues in wholesale, and growth in group meal services, the successful listing may provide new insights for regional retail brands to overcome bottlenecks [4]

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 1,350,925 thousand, a decrease of 3.6% compared to RMB 1,401,972 thousand in 2023[15] - Gross profit for the same period was RMB 289,101 thousand, resulting in a gross margin of 21.4%, slightly down from 21.5% in 2023[15] - Profit before tax decreased to RMB 62,345 thousand, down 11.9% from RMB 70,058 thousand in the previous year[15] - Net profit for the year was RMB 43,975 thousand, a decline of 14.8% compared to RMB 51,602 thousand in 2023[15] - The group's net profit for the reporting period was approximately RMB 44.0 million, a decrease of about 14.73% from approximately RMB 51.6 million for the year ended December 31, 2023[17] - Gross profit decreased from approximately RMB 301.4 million to approximately RMB 289.1 million, with a stable gross margin of approximately 21.5% and 21.4% for the respective years[38][39] - Net profit decreased from approximately RMB 51.6 million to approximately RMB 44.0 million, with a net profit margin decline from approximately 3.7% to approximately 3.3%[48] - Adjusted net profit for the year ending December 31, 2024, is approximately RMB 51.3 million, down from RMB 55.1 million in 2023, reflecting a decrease of about 6.5%[51] - The adjusted net profit margin for 2024 is 3.8%, slightly down from 3.9% in 2023[51] Assets and Liabilities - Non-current assets increased to RMB 399,108 thousand from RMB 377,772 thousand in 2023, reflecting a growth of 5.4%[15] - Current assets rose to RMB 1,056,580 thousand, up from RMB 1,029,364 thousand in 2023, indicating a growth of 2.6%[15] - Current liabilities decreased to RMB 774,555 thousand from RMB 819,983 thousand in 2023, a reduction of 5.5%[15] - Total net assets increased to RMB 540,910 thousand, compared to RMB 493,341 thousand in 2023, marking an increase of 9.6%[15] - Cash and cash equivalents decreased from approximately RMB 236.2 million at the end of 2023 to RMB 216.9 million at the end of 2024, primarily due to higher cash outflows from investing and financing activities[55] - Inventory increased significantly from approximately RMB 266.3 million in 2023 to RMB 330.1 million in 2024, driven by increased procurement to meet anticipated food demand[58] - Trade receivables decreased from approximately RMB 213.8 million in 2023 to RMB 190.0 million in 2024, indicating improved collection efforts[60] - Trade payables decreased from approximately RMB 160.7 million in 2023 to RMB 110.3 million in 2024, reflecting timely settlements of trade payables[63] Revenue Breakdown - Revenue from general sales decreased to approximately RMB 505.8 million, down about 18.0% or RMB 111.0 million from approximately RMB 616.8 million for the year ended December 31, 2023[17] - Revenue from wholesale increased to approximately RMB 729.8 million, an increase of about 7.39% or RMB 50.2 million compared to approximately RMB 679.6 million for the year ended December 31, 2023[17] - General sales revenue decreased from approximately RMB 616.8 million to approximately RMB 505.8 million, primarily due to the cessation of tobacco sales and adverse weather conditions affecting promotional performance[35] Market Outlook and Strategy - Future outlook includes potential market expansion and new product development strategies to enhance revenue growth[15] - The retail market in Jiangsu Province shows strong growth potential, with small and medium-sized chain supermarkets experiencing a compound annual growth rate of 15.7% from 2017 to 2023, expected to reach 8.7% from 2024 to 2027[28] - The convenience store market has shown robust growth with a compound annual growth rate of 14.3% from 2017 to 2023, expected to continue expanding at 9.0% from 2024 to 2027[29] - The company plans to expand its market share and number of retail stores, establish new distribution centers, and enhance its ERP systems to improve operational efficiency[21][30] Corporate Governance and Management - The board consists of 12 members, including seven executive directors, one non-executive director, and four independent non-executive directors[103] - The supervisory board currently consists of three members, including two shareholder representatives and one employee representative, with a term of three years[138] - The company has appointed two joint company secretaries to enhance corporate governance[150][151] - The company emphasizes the importance of monitoring financial and operational performance through its supervisory board[138] - All independent non-executive directors confirmed their independence as per Listing Rules[137] Compliance and Risks - The company has complied with all relevant laws and regulations without incurring any fines or penalties related to health, safety, or environmental issues during the reporting period[181] - The company has faced risks related to finding ideal retail locations and competition with online stores, which may adversely affect its business[168] - The company is currently addressing compliance issues related to certain properties, with plans to relocate storage activities to areas with valid property certificates[180] Future Plans and Funding - The company plans to open new retail stores, allocating approximately 30.9% of the net proceeds from the global offering, which amounts to about HKD 32.5 million[161] - The company intends to establish a new distribution center, with 41.2% of the net proceeds, approximately HKD 43.3 million, designated for this purpose[161] - The company has not utilized any of the net proceeds from the global offering as of the last practicable date[163] - The net proceeds from the global offering are estimated to be approximately HKD 92.55 million after deducting underwriting fees and estimated expenses related to the listing[161]

Core Viewpoint - The listing of Jiangsu Hongxin Supermarket Chain Co., Ltd. on the Hong Kong Stock Exchange marks a potential revaluation of regional retail leaders under the dual pressures of consumer segmentation and channel restructuring [1][4]. Group 1: Company Overview - Jiangsu Hongxin Supermarket, known as "the first supermarket in Central Jiangsu," raised approximately HKD 150 million during its IPO [1]. - The company operates 52 supermarkets and 107 convenience stores, primarily concentrated in Yangzhou, Jiangsu Province [5][6]. - As of 2023, Hongxin Supermarket ranked second among supermarket operators in Yangzhou with a market share of 9.1% and fifth in Central Jiangsu with a market share of 2.3% [6]. Group 2: Financial Performance - The company's revenue for the past three years was RMB 1.43 billion, RMB 1.33 billion, and RMB 1.40 billion, with net profits of RMB 35.08 million, RMB 51.07 million, and RMB 51.60 million respectively [6][9]. - In the first nine months of 2024, revenue reached RMB 1.00 billion with a net profit of RMB 24.08 million [6][9]. - The net profit margin for 2023 was 3.66%, ranking second among listed peers [8]. Group 3: Business Structure and Strategy - Hongxin Supermarket is undergoing a significant business structure adjustment, shifting from a C-end retail focus to a B-end wholesale business, with wholesale revenue increasing from 36.7% in 2021 to 56.9% in the first nine months of 2024 [10][12]. - The company has also ventured into the prepared food sector, with a central kitchen capable of producing 20,000 meals daily [13][15]. - Despite its growth in wholesale and prepared food, the company has faced challenges with its franchise model, leading to the termination of its franchise program due to declining revenues [16]. Group 4: Market Position and Future Outlook - The successful IPO has enhanced the company's brand recognition and market visibility, transitioning from a regional player to a more nationally recognized entity [17]. - Hongxin Supermarket's approach of deepening its regional market presence and diversifying its business model serves as a reference for other companies in the industry [19]. - The company aims to expand its prepared food supply chain and infrastructure, indicating a commitment to growth in this segment [16].

Core Viewpoint - Jiangsu Hongxin, a regional supermarket company from Yangzhou, has successfully listed on the Hong Kong Stock Exchange amid challenges faced by traditional retail, aiming to enhance its operational capabilities and store image through raised capital [1][4]. Group 1: Company Overview - Jiangsu Hongxin operates 51 supermarkets and 109 convenience stores, with the majority located in Yangzhou and a few in Taizhou [1]. - The company ranked second among supermarket operators in Yangzhou with a market share of approximately 9.1% in 2023 [4]. - The company has seen a significant reduction in store count from nearly 500 to 160, indicating challenges in expansion and market adaptation [5]. Group 2: Financial Performance - Jiangsu Hongxin's revenue figures from 2021 to the first nine months of 2024 are as follows: 14.32 billion, 13.29 billion, 14.02 billion, and 10.06 billion CNY, with net profits of 350.8 million, 510.65 million, 516.02 million, and 240.78 million CNY respectively [6]. - The retail business's revenue contribution has decreased from 62% in 2021 to 41.6% in the first nine months of 2024, while the wholesale business's share increased from 36.7% to 56.9% during the same period [6]. Group 3: Strategic Initiatives - The company plans to use the raised funds to improve store image, upgrade logistics, invest in information technology, and enhance its central kitchen capabilities [1]. - Jiangsu Hongxin is entering the prepared food market, with a central kitchen capable of producing 10,000 meals per day, primarily serving local schools [7]. - The prepared food market in the Suzhong region is projected to grow from approximately 10.64 billion CNY in 2024 to 19.78 billion CNY by 2027, with a compound annual growth rate of about 22.96% [7].