Group 1 - The collaboration between Nanjing Hongshan Forest Zoo and well-known brands has created new engagement opportunities, attracting nationwide fans during the May Day holiday [1][2] - The zoo's partnership with Golden Eagle Group has launched a 2.0 version of deep co-creation, themed "Everything is Cute," integrating cultural tourism and commerce to enhance visitor experiences [1][3] - The zoo implemented a visitor management system during the holiday, limiting daily admissions to 80,000 and peak in-park numbers to 40,000 to ensure safety and order [3] Group 2 - The collaboration with KFC introduced exclusive merchandise, such as plush keychains, which significantly increased customer engagement and social media discussions, with a topic reaching 409,000 views and 2,660 discussions [2] - A pop-up bus featuring zoo mascots was deployed at a shopping area, further promoting the partnership and attracting fans for photo opportunities [2][3] - The zoo's visitor numbers ranked in the top four among city attractions during the holiday, indicating a successful marketing strategy [3]

Store Expansion and Development - As of June 30, 2023, the company has successfully opened 30 stores in China, covering a total construction area of approximately 2,429,827 square meters and a total counter area of about 1,186,401 square meters[4] - The company has established 15 lifestyle centers with a total construction area of approximately 1,897,656 square meters, accounting for about 45.7% of the total counter area[5] - The company aims to expand its presence in first and second-tier cities and develop potential third-tier cities, focusing on sustainable and green development strategies[4] - The group plans to expand its commercial projects in Nantong, Changzhou, and other cities, adding a total construction area of 783,000 square meters[118] Financial Performance - The company's revenue for the first half of 2023 reached RMB 8,153.8 million, representing a 3.5% increase compared to RMB 7,881.5 million in the same period of 2022[16] - Profit attributable to the company's owners increased by 25.4% to RMB 577.7 million in the first half of 2023, compared to RMB 460.8 million in the same period of 2022[16] - Total comprehensive income for the first half of 2023 was RMB 582.95 million, compared to RMB 463.76 million in the same period of 2022[22] - The company's net profit increased by RMB 107.4 million or 22.8% year-on-year to RMB 577.7 million, with a net profit margin of 8.0% compared to 6.7% in the same period last year[151] Customer Engagement and Membership - The company has attracted 3.45 million VIP customers, with over 98% linking their VIP membership cards to the mobile application, and VIP customer spending accounted for 66.2% of total sales revenue[8] - The "Golden Eagle Life" mini-program saw a daily traffic increase of 17.1% year-on-year, with a total of 1,846 community groups established, showing a 43.2% increase in community transaction conversion[116] - The group added 743,000 new members in the first half of 2023, contributing to sales of RMB 67.6 million[115] Operational Efficiency and Management - The company employs 2,015 staff members, enhancing their international management perspective through regular training and overseas visits[9] - The company is actively optimizing its organizational structure to reduce costs and improve efficiency, aiming for sustainable growth in a competitive market[108] - The company continues to implement a localized management system to better adapt to local market conditions[9] Revenue Streams and Sales Performance - Retail business revenue was RMB 2,749.0 million in the first half of 2023, up 4.2% from RMB 2,638.9 million in the first half of 2022[16] - Direct sales revenue increased to RMB 1,303,147 thousand from RMB 1,208,954 thousand, representing an increase of 7.81%[43] - Commission income from licensed counters was RMB 903,683 thousand, up from RMB 891,781 thousand, indicating a growth of 1.01%[43] - Rental income rose to RMB 560,122 thousand, compared to RMB 550,471 thousand, marking a growth of 1.19%[45] - Property sales revenue significantly decreased to RMB 26,815 thousand from RMB 138,421 thousand, a decline of 80.65%[43] Financial Position and Assets - Non-current assets as of June 30, 2023, amounted to RMB 13,111.13 million, a slight decrease from RMB 13,480.18 million at the end of 2022[24] - The company's net asset value as of June 30, 2023, was RMB 9,966.34 million, up from RMB 9,383.39 million at the end of 2022[26] - The total assets of the group as of June 30, 2023, were RMB 24,963.8 million, a decrease from RMB 25,652.0 million as of December 31, 2022[171] Cash Flow and Financing - For the six months ended June 30, 2023, the net cash generated from operating activities was RMB 1,300,241 thousand, a significant increase from RMB 552,951 thousand in the same period of 2022, representing a growth of approximately 135%[31] - The company raised new bank loans amounting to RMB 1,508,000 thousand during the six months ended June 30, 2023, compared to no new loans in the same period of 2022[34] - The group recorded a net foreign exchange loss of RMB 122.4 million in the first half of 2023, compared to RMB 312.0 million in the same period of 2022[175] Market Trends and Economic Context - The GDP of China for the first half of 2023 was RMB 59.3 trillion, growing by 5.5% year-on-year, indicating a moderate economic recovery[106] - National retail sales reached RMB 22.8 trillion, marking an 8.2% year-on-year increase, highlighting the strengthening role of consumption in the economy[106] Future Outlook - In the second half of 2023, the company aims to maintain steady growth in operating performance and deliver better returns[183] - The company plans to leverage its operational strength and efficient asset management capabilities to empower urban commerce[183]

Business Expansion and Development - As of December 31, 2022, the company has successfully opened 30 stores in China, covering a total construction area of approximately 2,503,623 square meters and a total counter area of about 1,178,623 square meters[3]. - The company has established 15 lifestyle centers with a total construction area of approximately 1,971,090 square meters, accounting for about 45.7% of the total counter area[4]. - The company aims to expand its presence in first and second-tier cities and develop potential third-tier cities, focusing on sustainable and green development strategies[3]. - The company plans to open an additional 60 7-Eleven stores in 2023, aiming to exceed 180 stores and enter the Xuzhou market[26]. - The company plans to open 34 retail stores with a total construction area of 3.3 million square meters, including new projects in Nantong, Changzhou, and others[30]. - The Kunshan All-Life Center Phase II, with a construction area of 78,000 square meters, is set to open in the second half of 2023[32]. Financial Performance - In 2022, the company's retail business revenue was RMB 14,951.1 million, a decrease of 13.0% compared to 2021[14]. - The company's profit attributable to owners was RMB 748.5 million in 2022, down 53.6% from RMB 1,614.0 million in 2021[14]. - Same-store sales declined by 14.3% in 2022, compared to an increase of 6.1% in 2021[14]. - The company reported a basic earnings per share of RMB 0.451 in 2022, down 53.6% from RMB 0.972 in 2021[17]. - The company experienced a retail business EBITDA of RMB 2,475.0 million in 2022, a decline of 7.6% from RMB 2,677.7 million in 2021[14]. - In 2022, total sales revenue reached RMB 14.95 billion, with a year-on-year decline of 13.5%[22]. - The total operating income decreased to RMB 6,094.8 million, down 5.8% from RMB 6,468.5 million in 2021[47]. - The net profit for the year decreased by RMB 849.4 million or 52.7% to RMB 762.9 million, with a net profit margin of 5.7% compared to 10.5% in 2021[65]. Customer Engagement and VIP Programs - The "Jin Ying Life" mobile application has surpassed 21.16 million downloads, with over 98% of the 3.21 million VIP customers linking their VIP membership cards to the app[7]. - VIP customer spending accounted for 66.4% of the company's total sales revenue, an increase of 2.0% compared to the end of 2021[7]. - The company is focused on upgrading its smart retail services to provide innovative, experiential, and comprehensive services for VIP customers[7]. - The company emphasized a customer-centric approach, focusing on deep interactions with consumers and business partners to enhance product, environment, and service capabilities[22]. Sustainability and Environmental Initiatives - The company aims to implement low-carbon energy-saving technologies in all new projects to support China's carbon neutrality goals by 2060[30]. - The company is committed to integrating ESG strategies into daily operations and decision-making processes[132]. - The company has established effective communication channels with stakeholders to understand their expectations and concerns regarding corporate social responsibility[131]. - The company achieved a reduction of approximately 8 million kWh in electricity consumption, accounting for 2.11% of total electricity usage in 2022[135]. - The company has begun a digital transformation of energy management systems in its Nanjing store, predicting a potential reduction in energy consumption of 0.5% to 1.0% annually[147]. - The company has implemented energy-saving measures that resulted in a reduction of 4.5 million kWh annually, accounting for 1.19% of the company's total electricity consumption in 2022[147]. - The company has committed to using energy-efficient and environmentally friendly products in its procurement processes since 2021[144]. Corporate Governance - The company complies with the listing rules regarding the appointment of independent non-executive directors[86]. - The board consists of five directors, all male, with ages ranging from 50 to 79 years[90]. - The company has adopted a board diversity policy, ensuring at least one director of a different gender by December 31, 2024[92]. - The company has established a shareholder communication policy to ensure equal access to information for all shareholders and potential investors[118]. - The company aims to ensure timely disclosure of financial information to stakeholders, publishing annual and interim results within three and two months after the respective periods[100]. Employee Management and Development - The company employs 2,115 staff members, enhancing their capabilities through professional training and overseas visits[8]. - The total number of employees as of December 31, 2022, was 2,115, down from 2,590 in 2021, with total compensation for 2022 amounting to RMB 326.2 million, a decrease from RMB 381.0 million in 2021[71]. - The company actively engages in employee development, having recruited multiple management trainees in 2022 to foster talent growth[187]. - The training participation rate for employees was 96.1%, with a total of 37,701 training hours, resulting in an average of 18.4 hours per employee[190]. - The company has implemented comprehensive employee insurance plans, including work injury insurance and annual health checks[184]. Marketing and Sales Strategies - The company organized various marketing activities linked to the Winter Olympics and local consumption festivals, resulting in significant sales boosts, including RMB 190 million during the Nanjing International Consumption Festival[25]. - The company introduced new brands and upgraded existing stores, including the introduction of HOKA and K SWISS in Jiangsu, enhancing the quality consumption experience for target customers[23]. Financial Management - The company's total liabilities were RMB 16,268.6 million, showing a slight decrease of 0.3% compared to the previous year[17]. - The company's non-current assets totaled RMB 13,480.2 million as of December 31, 2022, a decrease of 3.1% from the previous year[17]. - The group recorded a net foreign exchange loss of RMB 567.1 million for the year ended December 31, 2022, compared to a net foreign exchange gain of RMB 144.7 million in 2021[70].

Store Expansion and Development - As of June 30, 2022, the company has opened 30 stores in China, covering a total construction area of approximately 2,503,623 square meters and a total counter area of about 1,197,944 square meters[4] - The company has established 15 lifestyle centers with a total construction area of approximately 1,971,090 square meters, accounting for about 45.4% of the total counter area[5] - The company aims to expand its presence in first and second-tier cities and develop potential third-tier cities, focusing on sustainable and green development strategies[4] - The company plans to open 35 retail stores with a total construction area of 3.4 million square meters as part of its future expansion strategy[115] - The group plans to achieve a total of 100 stores in Jiangsu by August 18, 2022, focusing on the "15-minute convenience circle" in the market[110] Customer Engagement and Experience - The "Jin Ying Life" mobile application has been downloaded over 14.47 million times, with an average of 136,000 daily active users as of June 30, 2022[8] - VIP customers accounted for 66.3% of the company's total sales revenue, an increase of 2.0% compared to the end of 2021[8] - The company plans to enhance customer experience by integrating online and offline services, creating a comprehensive and precise membership value-added service[8] - The group aims to enhance customer experience and service through digital supply chain improvements and all-channel operations[114] - The company introduced several new brands and upgraded existing ones, including the first stores in Jiangsu for brands like Anta and Chopard[106] Financial Performance - The company's retail business revenue for the first half of 2022 was RMB 7,881.5 million, a decrease of 16.0% compared to RMB 9,386.4 million in the first half of 2021[16] - The profit attributable to the company's owners for the first half of 2022 was RMB 460.8 million, representing a significant decline of 48.1% from RMB 887.6 million in the first half of 2021[16] - Total revenue for the first half of 2022 was RMB 2,786.2 million, down from RMB 3,021.4 million in the first half of 2021[20] - The total comprehensive income for the period was RMB 463.8 million, down from RMB 898.5 million in the first half of 2021[23] - The company's basic earnings per share for the first half of 2022 was RMB 0.278, down from RMB 0.535 in the same period last year[20] Operational Challenges - Same-store sales decreased by 17.6% in the first half of 2022 compared to the previous year[16] - The number of visitors to the company's stores was 80.18 million, reflecting a significant impact from the COVID-19 pandemic[105] - The group recorded a 17.6% year-on-year decline in same-store sales due to the impact of COVID-19 outbreaks[118] - The overall economic environment in China is shifting from investment and export-driven growth to consumption-driven growth, with retail businesses adapting to new consumer trends[101] - The national retail sales in China fell by 0.7% in the first half of 2022, contrasting sharply with a growth of 23.0% in the same period of 2021[100] Financial Position and Assets - Non-current assets as of June 30, 2022, amounted to RMB 13,771.1 million, slightly down from RMB 13,916.2 million at the end of 2021[25] - The company's cash and cash equivalents stood at RMB 7,286.9 million as of June 30, 2022, compared to RMB 7,651.4 million at the end of 2021[25] - The total liabilities of the group as of June 30, 2022, were RMB 16,033.7 million, a decrease from RMB 16,325.6 million as of December 31, 2021[171] - The group's total assets as of June 30, 2022, were RMB 25,134.0 million, an increase from RMB 24,962.1 million as of December 31, 2021[171] - The net asset value of the group as of June 30, 2022, was RMB 9,110.3 million, up from RMB 8,636.5 million as of December 31, 2021[171] Strategic Initiatives and Future Outlook - The company is committed to developing new business models that align with consumer upgrade trends, focusing on health care, children's education, and cultural arts[7] - The company is actively pursuing a dual development strategy of self-operated business and light asset layout to achieve sustainable growth in a rapidly changing market[7] - In the second half of the year, the company aims to seize new normal and new consumption opportunities while facing challenges and business development prospects[183] - The company is committed to innovation and breakthroughs to achieve high-quality development and provide better returns for shareholders[183] - The company plans to optimize shopping environments and enhance market competitiveness through capital expenditures related to store expansions[152] Revenue Breakdown - In the first half of 2022, licensed counter sales contributed 73.6% to the total revenue, down from 77.0% in the same period of 2021, with revenue decreasing by 19.8% to RMB 5,797.3 million[121] - Direct sales contributed 17.3% to total revenue, a slight increase from 16.7% in the first half of 2021, with revenue decreasing by 12.8% to RMB 1,365.7 million[121] - Rental income contributed 7.0% to total revenue, up from 5.6% in the first half of 2021, with a 5.2% increase in revenue to RMB 550.5 million[121] - Property sales contributed 1.7% to total revenue, significantly up from 0.3% in the first half of 2021, with revenue increasing 3.4 times to RMB 138.0 million[121] - The total revenue from 7-Eleven convenience stores reached RMB 88.9 million, a 73.2% increase compared to RMB 51.3 million in the first half of 2021[124]

Store Expansion and Operations - As of December 31, 2021, the company has successfully opened 31 stores in China, covering a total construction area of approximately 2,529,930 square meters and a total operating area of about 1,713,415 square meters[3]. - The company has established 15 lifestyle centers, with a total construction area of 1,971,090 square meters, accounting for approximately 35.0% of the company's total operating area[4]. - The group plans to launch new projects in Nantong, Changzhou, and Changchun, with a total of 35 retail stores and a total construction area of 3.4 million square meters[33]. - The "Xuzhou Jin Ying Shangjie" subway commercial project is set to open in Q3 2022, with approximately 25,000 square meters of space dedicated to a trendy, social, and artistic theme[35]. - The company is focusing on the middle-class family and young customer segments, aiming to upgrade its existing business brands and enhance customer experience[4]. Financial Performance - Total revenue for 2021 reached RMB 17.19 billion, representing a 4.6% increase compared to 2020[17]. - Retail business revenue for 2021 was RMB 5.57 billion, with a year-on-year growth of 3.8%[17]. - EBITDA for the retail business in 2021 was RMB 2.68 billion, reflecting a 10.5% increase from the previous year[17]. - Net profit attributable to the company's owners for 2021 was RMB 1.61 billion, up 3.3% from 2020[17]. - The total customer traffic for the year reached 190 million, a 26.1% increase compared to 2020[25]. Customer Engagement and Digital Strategy - The mobile application "Jin Ying Life" has surpassed 9.24 million downloads, with an average of 140,000 daily active users as of December 31, 2021[8]. - Over 98% of the 3.14 million VIP customers have linked their VIP membership cards to the mobile application, with VIP customer spending accounting for 64.4% of the total sales revenue[8]. - The company is focusing on brand upgrades and enhancing customer experience through digitalization and innovative marketing strategies[25]. - The group will continue to focus on digital transformation and enhance member experience to improve customer lifetime value (LTV)[31]. Sustainability and Environmental Impact - The company is committed to reducing its environmental impact while creating social and economic value, adhering to various Chinese environmental laws and regulations[158]. - Natural gas consumption in 2021 was 3,394,343 cubic meters, an increase from 2,909,849 cubic meters in 2020, representing a 16.6% increase[156]. - Water consumption in 2021 reached 3,416,174 cubic meters, up from 2,918,879 cubic meters in 2020, marking a 17.1% increase[156]. - Total greenhouse gas emissions in 2021 were 322,366 tons of CO2 equivalent, compared to 288,942 tons in 2020, reflecting an increase of 11.5%[156]. - The company is committed to green development by classifying waste generated by merchants and establishing collection points to promote recycling and reduce solid waste emissions[164]. Corporate Governance - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[99]. - The company has a governance framework that includes an audit committee, a remuneration committee, and a nomination committee to enhance transparency and accountability[95]. - The company has been compliant with the corporate governance code as per the Hong Kong Stock Exchange regulations since the fiscal year ending December 31, 2021[95]. - The company aims to ensure timely disclosure of financial information to stakeholders, with annual and interim results published within three and two months after the respective periods[118]. - The board of directors is responsible for corporate governance matters, including the review and implementation of governance policies and compliance with legal regulations[135]. Employee Management and Compensation - The company employs approximately 2,590 staff members as of December 31, 2021, to enhance its international management vision and local operational strategies[9]. - Employee benefits expenses increased by RMB 44.7 million or 13.3% to RMB 381.0 million, attributed to various factors including increased contributions to national retirement benefit plans[60]. - The group regularly reviews compensation and benefits standards based on labor market conditions and industry salary benchmarks, aiming to provide competitive remuneration to employees[198]. - Employee contracts cover terms such as contract duration, compensation, benefits, working hours, rest periods, and termination conditions[199]. Challenges and Future Outlook - The group anticipates challenges in 2022 due to recurring COVID-19 outbreaks and inflationary pressures, but remains optimistic about the long-term economic fundamentals in China[32]. - The company aims to adapt to consumer trends by providing sustainable and diverse products and services[24]. - The company has initiated a climate response action plan to manage physical and transition risks associated with climate change[192]. - The company plans to consider hedging measures for foreign exchange risks if necessary, as it currently has no contracts in place[81].