Occupancy Rates - As of December 31, 2024, Xinji Shaxi Hotel Supplies Expo City recorded an occupancy rate of 87.9%, up from 82.8% in 2023[15]. - Xinji Haotai Hotel Supplies City achieved an occupancy rate of 91.4% in 2024, down from 95.9% in 2023[16]. - Shenyang Xinji Shaxi Hotel Supplies Expo City reported an occupancy rate of 32.84% in 2024, significantly decreased from 62.1% in 2023[18]. - Xinji Dashi Furniture City had an occupancy rate of 86.03% as of December 31, 2024, compared to 94.9% in 2023[20]. - The occupancy rate for the shopping center was 79.7% in 2024, down from 84.3% in 2023[22]. Rental and Operational Areas - Xinji Shaxi Hotel Supplies Expo City has a total rental area of approximately 62,124.08 square meters, housing 552 tenants[15]. - Xinji Haotai Hotel Supplies City has a total operational area of about 72,203.28 square meters, with 525 tenants[16]. - Shenyang Xinji Shaxi Hotel Supplies Expo City features a total rental area of approximately 58,720.12 square meters[18]. - Xinji Dashi Furniture City has a total operational area of around 24,576.16 square meters, with 44 tenants[20]. Financial Performance - For the fiscal year ending December 31, 2024, the company's core net profit was approximately RMB 73.8 million, a decrease of about RMB 9.0 million or 10.9% compared to RMB 82.8 million in 2023[24]. - The company's revenue for 2024 was approximately RMB 254.8 million, down by about RMB 18.6 million or 6.8% from RMB 273.4 million in 2023[24][31]. - The rental income accounted for 74% of total revenue in 2024, amounting to approximately RMB 188.6 million, a decrease of about RMB 10.8 million or 5.4% from RMB 199.4 million in 2023[32][33]. - Property management service revenue decreased by approximately RMB 3.3 million or 5.5% to about RMB 58.0 million in 2024, compared to RMB 61.3 million in 2023[34]. - Sales revenue from goods dropped by approximately RMB 3.2 million or 28.2% to about RMB 8.1 million in 2024, down from RMB 11.3 million in 2023[35]. Assets and Liabilities - Total assets as of December 31, 2024, were approximately RMB 2,665.2 million, a decrease from RMB 2,934.3 million in 2023[28]. - Total liabilities decreased to approximately RMB 1,491.9 million in 2024 from RMB 1,598.5 million in 2023[28]. - The company reported net current assets of RMB 100.4 million as of December 31, 2024, compared to RMB 144.1 million as of December 31, 2023, with a current ratio of 1.18[54]. Dividends and Share Repurchase - The company does not recommend a final dividend for 2024, consistent with 2023[30]. - The company repurchased 7,056,000 shares at a total cost of approximately HKD 451,912.01 in April 2024[62]. - The company did not declare any final dividend for the year ending December 31, 2024, and no interim dividend was distributed during the year[147]. Management and Governance - The board consists of 9 members, including 3 executive directors, 3 non-executive directors, and 3 independent non-executive directors[75]. - Zhang Hanquan has been the CEO and executive director since July 27, 2018, and is a key figure in the hotel supplies industry[76]. - The company has established good corporate governance policies and practices, focusing on accountability, transparency, and independence[92]. - The independent non-executive directors bring over 30 years of experience in finance and investment, enhancing the board's oversight capabilities[88]. - The company has established an internal communication platform to promote open communication and engagement among employees[99]. Risk Management - The company faces economic and regulatory risks that may impact property rental rates and demand for services, necessitating timely adjustments to align with market conditions[59]. - The company has a structured internal audit function to analyze and independently assess the adequacy and effectiveness of its risk management and internal control systems[131]. - The board is responsible for maintaining a sound risk management system and effective internal controls to protect the group's assets and shareholders' interests[131]. Future Plans and Strategies - The management remains optimistic about sustainable growth and plans to strengthen its competitive advantages and market leadership[25]. - The group will continue to expand its online mall business and establish a vertical e-commerce service platform for the hotel supplies industry to increase market share and brand influence[73]. - The company plans to utilize RMB 63.3 million for the development of new projects, with a timeline extended to 2027 due to the lack of suitable new projects[1]. Employee Information - As of December 31, 2024, the total number of employees in the group was approximately 260, a decrease of 4.4% from 272 in 2023[60]. - Employee benefits expenditure for 2024 was approximately RMB 36.8 million, down from RMB 39.1 million in 2023[60]. Environmental and Social Responsibility - The company has implemented environmental protection measures and encouraged employees to conserve energy and reduce waste[158]. - The company made charitable donations totaling approximately RMB 0.2 million for the year ending December 31, 2024[151].

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 254,789 thousand, a decrease of 6.8% compared to RMB 273,372 thousand in 2023[4] - The net loss for the year was RMB 162,123 thousand, compared to a net loss of RMB 80,267 thousand in 2023, representing an increase in loss of 102.3%[5] - Core net profit for 2024 was RMB 73,776 thousand, down from RMB 82,782 thousand in 2023, resulting in a core net profit margin of 29% compared to 30% in the previous year[4] - The company reported a significant increase in investment property fair value loss to RMB 314,532 thousand in 2024 from RMB 217,399 thousand in 2023, an increase of 44.7%[5] - Basic and diluted loss per share for 2024 was RMB (0.11), compared to RMB (0.05) in 2023, indicating a worsening in per-share performance[5] - The net loss before tax for the year ending December 31, 2024, was RMB 201,429 thousand, worsening from a loss of RMB 91,087 thousand in 2023[23][24] - The group reported a pre-tax loss of RMB 201,429,000 for 2024, compared to a loss of RMB 91,087,000 in 2023, reflecting a significant increase in losses[44] - The income tax expense for 2024 was RMB 39,306,000, compared to RMB 10,820,000 in 2023, representing a significant increase[37] - The income tax expense calculated at the applicable corporate tax rate of 25% for China amounted to RMB 50,357,000 for 2024, up from RMB 22,772,000 in 2023[44] - Operating loss increased by approximately RMB 115.0 million or 347.6% from about RMB 33.1 million in 2023 to about RMB 148.1 million in 2024, mainly due to increased fair value losses on investment properties[89] Assets and Liabilities - The total assets decreased to RMB 2,665,157 thousand in 2024 from RMB 2,934,280 thousand in 2023, reflecting a decline of 9.2%[7] - Non-current liabilities decreased to RMB 939,942 thousand in 2024 from RMB 1,150,246 thousand in 2023, a reduction of 18.3%[8] - The total equity decreased to RMB 1,173,204 thousand in 2024 from RMB 1,335,736 thousand in 2023, a decline of 12.1%[8] - Total liabilities increased to RMB 1,491,953 thousand as of December 31, 2024, compared to RMB 1,598,544 thousand in 2023, showing a decrease of about 6.7%[25][26] - The group recognized lease liabilities of RMB 193,859,000 and related right-of-use assets of RMB 1,083,388,000 as of December 31, 2024, compared to RMB 214,867,000 and RMB 1,244,171,000 in 2023, respectively[49] - The total amount of trade payables due within one year is RMB 25,706,000 as of December 31, 2024, an increase from RMB 21,290,000 in 2023[64] - The total deferred tax liabilities for 2024 were RMB 242,803 thousand, down from RMB 300,062 thousand in 2023[77] Revenue Segments - The property leasing segment generated revenue of RMB 188,613 thousand for the year ending December 31, 2024, compared to RMB 199,442 thousand in 2023, reflecting a decrease of about 5.9%[23][24] - Revenue from property management services was RMB 57,965,000 in 2024, compared to RMB 61,310,000 in 2023, reflecting a decrease of 5.7%[32] - Property leasing income for 2024 was RMB 188,613,000, down from RMB 199,442,000 in 2023, representing a decline of 5.9%[32] - The total rental income for the group was RMB 188,613,000 in 2024, a decrease from RMB 199,442,000 in 2023[49] - Property management service income in Guangzhou region for 2024 is RMB 33,394,000, down from RMB 35,870,000 in 2023, representing a decline of 6.9%[108] - Sales of goods revenue fell by approximately RMB 3.2 million or 28.2% to about RMB 8.1 million in 2024, compared to RMB 11.3 million in 2023, primarily due to reduced revenue from the B2C platform[83] Cash Flow and Financial Position - Cash and cash equivalents increased to RMB 582,501 thousand in 2024 from RMB 513,011 thousand in 2023, an increase of 13.5%[7] - As of December 31, 2024, cash and cash equivalents amounted to approximately RMB 582.5 million, compared to RMB 513.0 million as of December 31, 2023[96] - The total borrowings amount to RMB 813.424 million as of December 31, 2024, down from RMB 880.436 million in 2023, reflecting a decrease of 7.6%[71] - The average effective interest rate for total borrowings decreased from 5.73% in 2023 to 5.56% in 2024[73] - The capital-to-debt ratio as of December 31, 2024, was 20%, down from 27% as of December 31, 2023[98] - As of December 31, 2024, net current assets were RMB 100.4 million, compared to RMB 144.1 million as of December 31, 2023, with a current ratio of 1.18 compared to 1.32 in 2023[99] Corporate Governance and Compliance - The company adheres to corporate governance principles as per the listing rules, ensuring effective management oversight[115] - The audit committee has reviewed the annual performance for 2024 and confirmed that it complies with relevant accounting standards and regulations[125] - The company confirmed that over 25% of its issued shares are held by the public, complying with listing rules[124] - The company has maintained compliance with the public float requirements as of the announcement date[124] - The company has not reported any significant events occurring after the end of the reporting period up to the announcement date[123] Future Outlook and Strategy - The company anticipates economic recovery in 2024, which is expected to positively impact its six main business segments[113] - The company plans to continue expanding its online store business and enhance market share and brand influence through a light-asset project development model[114] - The company aims to enhance stable cash flow by acquiring mature property management service projects, which will benefit the company and its shareholders[114] - The company maintains a cautious outlook for the next 12 months due to uncertainties in the broader economic recovery[113] Shareholder Information - The company will hold its annual general meeting on May 30, 2025, and will suspend share transfer registration from May 27 to May 30, 2025[127] - The company’s annual report for 2024 will be distributed to shareholders in April 2025[128] - The board did not recommend the payment of a final dividend for 2024, consistent with 2023[78] - The company did not derive more than 10% of its revenue from any single external customer for the year ended December 31, 2024, consistent with 2023[30] Audit and Financial Reporting - The company appointed Zhong Zheng Tian Heng CPA Limited as the new auditor effective from December 31, 2024, following the resignation of the previous auditor[122] - The group has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, with no significant impact on the financial position and performance[14] - The group has not early adopted any new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective, expecting no significant impact on the consolidated financial statements[15]

Revenue and Profitability - Revenue for the six months ended June 30, 2024, was approximately RMB 129.4 million, a slight increase of 0.2% from RMB 129.1 million in the same period of 2023[6]. - Core net profit for the same period was RMB 46.98 million, representing a core net profit margin of 36%, up from 28% in 2023[3][4]. - Rental income increased by approximately RMB 3.5 million or 3.8% to RMB 95.6 million, accounting for about 74% of total revenue[7]. - Property management service revenue decreased by approximately RMB 1.8 million or 5.9% to RMB 29.3 million due to reduced contract renewals and decreased managed area[8]. - Sales of goods revenue decreased by approximately RMB 1.0 million or 18.8% to RMB 4.5 million, primarily due to reduced income from the B2B platform[9]. - Other income increased by approximately RMB 0.9 million or 59% to about RMB 2.4 million, driven by compensation received for subway relocation, which was not present in the same period of 2023[14]. - The group’s revenue for the six months ended June 30, 2024, was RMB 129,405 thousand, a slight increase from RMB 129,101 thousand in the same period of 2023, representing a growth of approximately 0.23%[56]. - Total segment revenue for the property leasing segment is RMB 100,114 thousand, while the property management services segment generated RMB 29,291 thousand, leading to a total group revenue of RMB 129,405 thousand for the six months ended June 30, 2024, an increase from RMB 129,101 thousand in the same period last year[81]. Expenses and Losses - Selling and marketing expenses decreased by approximately RMB 3.1 million or 41% to RMB 4.4 million, mainly due to reduced payroll expenses[12]. - Administrative expenses decreased by approximately RMB 2.4 million or 13% to about RMB 16.0 million compared to RMB 18.4 million in the same period of 2023, primarily due to the absence of acquisition services during the reporting period[13]. - Operating loss increased by approximately RMB 13.4 million or 18% to about RMB 89.6 million from RMB 76.2 million in the same period of 2023[15]. - Net loss increased by approximately RMB 8.4 million or 10% to about RMB 91.3 million from RMB 82.9 million in the same period of 2023, mainly due to increased fair value losses on investment properties[16]. - The group reported a loss before tax of RMB 116,491 thousand for the six months ended June 30, 2024, compared to a loss of RMB 103,517 thousand for the same period in 2023, indicating a worsening of approximately 12.5%[81]. - The net loss for the period is RMB 91,293 thousand, compared to a net loss of RMB 82,929 thousand for the same period last year, reflecting an increase in losses of approximately 10.3%[82]. Financial Position - As of June 30, 2024, the company had cash and cash equivalents of approximately RMB 554.5 million, an increase from RMB 513.0 million as of December 31, 2023[26]. - The company's bank borrowings amounted to approximately RMB 859.9 million as of June 30, 2024, down from RMB 879.4 million as of December 31, 2023, with interest rates ranging from 4.45% to 6.13%[27]. - The capital-to-debt ratio as of June 30, 2024, was 24%, a decrease from 27% as of December 31, 2023[28]. - The company reported net current assets of approximately RMB 241.7 million as of June 30, 2024, compared to RMB 144.1 million as of December 31, 2023[29]. - Total assets as of June 30, 2024, were RMB 2,782,612 thousand, down from RMB 2,934,280 thousand as of December 31, 2023, representing a decrease of approximately 5.2%[59]. - The total liabilities decreased to RMB 1,538,578 thousand as of June 30, 2024, from RMB 1,598,544 thousand as of December 31, 2023, indicating a reduction of approximately 3.8%[59]. - The company’s total equity attributable to owners decreased to RMB 1,245,894 thousand as of June 30, 2024, down from RMB 1,334,947 thousand as of June 30, 2023, reflecting a decline of approximately 6.7%[62]. Investments and Future Plans - Unutilized net proceeds amounting to approximately RMB 133.3 million will be allocated to expand property management services and establish a vertical e-commerce platform for the hotel supplies industry[19]. - Approximately 30% of the unutilized net proceeds, amounting to about RMB 40.0 million, will be used to expand property management services[20]. - The company plans to utilize approximately RMB 63.3 million or 47.5% of the unutilized net proceeds for general development related to new projects in the hotel supplies and home decoration industries[20]. - The company has postponed the expected timeline for utilizing unallocated funds for new project development from 2023 to 2024 due to the lack of suitable new projects[4]. - The company plans to phase investments in establishing a vertical e-commerce service platform for the hotel supplies industry, delaying the expected timeline from 2023 to 2025[5]. - The company has not identified any significant investments or capital asset plans beyond those disclosed in the prospectus as of June 30, 2024[30]. Shareholder Information - As of June 30, 2024, Zhang Hanquan holds a 38.22% equity interest in the company, representing 570,564,000 shares[43]. - Major shareholders include Honchuen Investment, Zuoting Investment, and Weixin Development, each holding approximately 38.22% of the company's issued share capital, totaling 570,564,000 shares[45]. - AL Capital Global Opportunities Fund holds 129,180,000 shares, representing 8.65% of the company's issued share capital[45]. - Huiqun Investment Limited holds 93,375,000 shares, accounting for 6.25% of the company's issued share capital[45]. - The board of directors did not recommend any interim dividend for the reporting period, consistent with the same period in 2023[51]. - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with no dividend declared in the same period of 2023[102]. Employee and Governance - As of June 30, 2024, the total number of employees in the group was approximately 256, a decrease from 265 in the same period of 2023, with employee benefit expenses amounting to RMB 187 million, down from RMB 207 million in 2023[49]. - The company has established a compensation system based on job grading to ensure internal wage comparability among different levels and categories[49]. - The company emphasizes effective communication with employees to enhance their sense of belonging, which is considered core to successful management[49]. - The group has maintained compliance with corporate governance codes, ensuring accountability, transparency, and independence in its operations[40]. Risk Management and Compliance - The group continues to manage financial risks including market, credit, and liquidity risks, with no changes in risk management policies since December 31, 2023[69]. - The audit committee has been established and reviewed the financial information for the reporting period, ensuring compliance with applicable accounting standards[54]. - The company has no significant events or arbitration that would materially affect its operations during the reporting period[55]. - The company has no knowledge of any other significant matters requiring disclosure after the reporting period[52]. Cash Flow and Financial Activities - Operating cash flow for the six months ended June 30, 2024, was RMB 106,719 thousand, a significant increase of 81% compared to RMB 58,802 thousand for the same period in 2023[63]. - The company’s operating cash flow net amount for the six months ended June 30, 2024, was RMB 75,669 thousand, compared to RMB 25,426 thousand for the same period in 2023, indicating a substantial increase of approximately 197%[63]. - The company incurred RMB 9,470 thousand in costs related to business combinations under common control during the six months ended June 30, 2024, compared to RMB 24,750 thousand in the same period of 2023, indicating a decrease of approximately 62%[63]. - The company’s net cash used in investing activities for the six months ended June 30, 2024, was RMB 5,052 thousand, a significant improvement compared to RMB 28,092 thousand for the same period in 2023[63].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 129,405 thousand, a slight increase from RMB 129,101 thousand in the same period of 2023, representing a growth of approximately 0.23%[1] - The net loss for the period was RMB (91,293) thousand, compared to a net loss of RMB (82,929) thousand in the prior year, indicating an increase in loss of approximately 10.3%[1] - Core net profit for the period was RMB 46,977 thousand, up from RMB 35,526 thousand in the same period last year, reflecting a growth of approximately 32.3%[1] - The core net profit margin improved to 36% from 28% year-on-year, indicating enhanced operational efficiency[1] - The group reported a net loss before tax of RMB 116,491,000, with a total loss for the period amounting to RMB 91,293,000[15] - The group reported a loss of RMB 91.3 million for the six months ended June 30, 2024, compared to a loss of RMB 82.9 million in the same period of 2023[53] - Operating loss increased by approximately RMB 13.4 million or 18% to about RMB 89.6 million due to increased fair value losses on investment properties[47] - The company's loss increased by approximately RMB 8.4 million or 10% to about RMB 91.3 million, primarily due to increased fair value losses on investment properties[51] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 2,782,612 thousand, down from RMB 2,934,280 thousand as of December 31, 2023, a decrease of approximately 5.16%[5] - Non-current assets decreased from RMB 2,341,854 thousand to RMB 2,143,579 thousand, a decline of approximately 8.45%[5] - Total liabilities decreased from RMB 1,598,544 thousand to RMB 1,538,578 thousand, a reduction of approximately 3.75%[6] - Cash and cash equivalents increased from RMB 513,011 thousand to RMB 554,539 thousand, an increase of approximately 8.1%[5] - Total liabilities as of June 30, 2024, were RMB 1,538,578 thousand, a decrease from RMB 1,598,544 thousand as of December 31, 2023, representing a reduction of 3.8%[17] - The debt-to-capital ratio decreased to 24% as of June 30, 2024, from 27% as of December 31, 2023[55] - Net current assets increased to approximately RMB 241.7 million as of June 30, 2024, compared to RMB 144.1 million as of December 31, 2023[55] Revenue Breakdown - Total revenue for the property leasing segment reached RMB 100,114,000, while the property management services segment generated RMB 29,291,000, leading to a combined total of RMB 129,405,000 for the group[15] - Revenue from rental income was RMB 95,596,000, indicating a significant contribution to the overall revenue[15] - Revenue from property management services decreased to RMB 29,291 thousand in 2024 from RMB 31,111 thousand in 2023, reflecting a decline of 5.8%[19] - Rental income for the six months ended June 30, 2024, was RMB 95,596 thousand, up from RMB 92,075 thousand in 2023, indicating a growth of 5.7%[19] - The group recognized contract revenue from customers amounting to RMB 33,809,000, with RMB 4,518,000 recognized at a specific point in time and RMB 29,291,000 recognized over time[15] Investment Properties - The group incurred a fair value loss on investment properties amounting to RMB 101,211,000, impacting overall performance[15] - The fair value loss on investment properties increased by approximately RMB 26.4 million to about RMB 184.4 million[43] - The net value of investment properties decreased to RMB 2,102,824 thousand as of June 30, 2024, down from RMB 2,348,596 thousand as of June 30, 2023, reflecting a fair value change of RMB (184,360) thousand[31] - The company’s investment properties held through land use rights decreased to RMB 958,670 thousand as of June 30, 2024, from RMB 1,041,250 thousand as of June 30, 2023[31] Operational Focus and Strategy - The company continues to focus on operational management in the hotel and home goods sectors within China, aiming for market expansion and product development[7] - The group has identified two main operating segments: property leasing and property management services, indicating a diversified business model[13] - The company plans to expand its property management services, particularly through acquisitions of mature projects to enhance stable cash flow[64] - The company aims to establish a vertical e-commerce service platform for hotel supplies to increase market share and brand influence[64] - The company is actively seeking new business opportunities to diversify revenue sources and enhance long-term growth potential[64] Corporate Governance and Compliance - The board of directors consists of 3 executive directors, 3 non-executive directors, and 3 independent non-executive directors, ensuring a significant degree of independence[67] - The audit committee has been established and consists of three members, ensuring compliance with relevant accounting standards and regulations during the reporting period[72] - The audit committee has reviewed the interim performance and internal controls, confirming compliance with applicable accounting principles and regulations[72] - The company confirmed that all directors adhered to the standard code of conduct for securities trading during the reporting period[68] Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous period[30] - The company will distribute its 2024 interim report to shareholders in September 2024, which will include all information required by listing rules[72] - The company has not engaged in any purchase, sale, or redemption of its listed securities during the reporting period, except for the aforementioned share repurchase[69] Market Conditions - The ongoing geopolitical instability due to the Russia-Ukraine conflict and the Israel-Palestine war is expected to hinder global economic recovery[64] - The company has suspended the annual South China Hotel Industry Expo (CHE) since 2020 due to the impact of the COVID-19 pandemic, resulting in no revenue from CHE[63]

Occupancy and Market Performance - The total leasable area of the Xinji Shaxi Hotel Supplies Expo City is approximately 62,124.08 square meters, with an occupancy rate of 82.8% in 2023, down from 85.4% in 2022[13]. - The Xinji Haotai Hotel Supplies City has a total operating area of about 72,203.28 square meters, achieving an occupancy rate of 95.9% in 2023, up from 85.7% in 2022[14]. - The Shenyang Xinji Shaxi Hotel Supplies Expo City recorded an occupancy rate of 62.1% in 2023, significantly increasing from 42.8% in 2022[16]. - The Xinji Dashi Furniture City has a total operating area of approximately 24,576.16 square meters, with an occupancy rate of 94.9% in 2023, down from 100% in 2022[18]. - The occupancy rates across different markets indicate a mixed performance, with some locations showing improvement while others face challenges[13][14][16][18]. Financial Performance - For the fiscal year ending December 31, 2023, the company's core net profit was approximately RMB 82.8 million, a decrease of about RMB 12.1 million or 12.8% compared to RMB 94.9 million in 2022[22]. - The company's revenue for 2023 was approximately RMB 273.4 million, down RMB 25 million from RMB 298.4 million in 2022, representing a decrease of 8%[29]. - The rental income accounted for 73% of total revenue in 2023, amounting to approximately RMB 199.4 million, a decrease of RMB 20 million or 9% from RMB 219.4 million in 2022[31]. - Property management service revenue decreased by approximately RMB 1.5 million or 2% to about RMB 61.3 million in 2023, compared to RMB 62.8 million in 2022[32]. - Sales of goods revenue decreased by approximately RMB 2.4 million or about 18% to approximately RMB 11.3 million in 2023, down from RMB 13.7 million in 2022, primarily due to a decline in B2B platform business revenue[33]. - Operating loss decreased by approximately RMB 125.6 million or about 79% to approximately RMB 33.1 million in 2023, primarily due to reduced fair value losses on investment properties[39]. - The group recorded a loss of approximately RMB 80.3 million in 2023, a decrease from RMB 167.4 million in 2022, mainly due to reduced fair value losses on investment properties[43]. Assets and Liabilities - Total assets as of December 31, 2023, were approximately RMB 2,934.3 million, an increase from RMB 2,831.2 million in 2022[26]. - The total liabilities increased to RMB 1,598.5 million in 2023 from RMB 1,415.4 million in 2022[26]. - The capital-to-debt ratio as of December 31, 2023, was 27%, a decrease from 30% on December 31, 2022[51]. - The company reported net current assets of RMB 144.1 million as of December 31, 2023, compared to RMB 46.4 million as of December 31, 2022, with a current ratio of 1.32[52]. Strategic Initiatives - Xinji Shaxi Group's strategy includes expanding its market presence and enhancing customer experience through modern retail spaces and diverse product offerings[15]. - The company aims to enhance brand influence and expand in international markets, focusing on innovation to meet changing customer needs[23]. - The company plans to continue strengthening its six main business segments to create synergistic effects[23]. - The company aims to lead the hotel supplies industry and enhance customer experiences by promoting comfort, sustainability, and quality[92]. - The vision is to become a global operator in the hotel supplies industry, establishing a leading brand in China[93]. Corporate Governance - The board consists of 9 members, including 3 executive directors, 3 non-executive directors, and 3 independent non-executive directors[74]. - The company emphasizes the importance of independent judgment in its board operations, particularly through its audit and remuneration committees[85][86]. - The board includes members with significant academic and practical experience in finance, accounting, and corporate governance[84][85]. - The company is committed to maintaining a diverse board with a mix of executive and independent members to ensure balanced decision-making[74]. - The board has reviewed the effectiveness of the internal control and risk management systems to ensure a well-functioning operational framework[127]. Employee and Management Practices - Employee benefits expenses for 2023 were approximately RMB 39.1 million, down from RMB 43.2 million in 2022, with a total employee count of about 272[59]. - The company has implemented training programs to instill its core values and corporate culture among employees[95]. - The management team is composed of experienced professionals, ensuring effective oversight and balance of power within the organization[98]. Market and Customer Relations - The company aims to enhance its market share and brand influence through a light-asset project development model[72]. - The largest customer accounted for 6% of the total revenue, while the top five customers contributed 11% of the total revenue during the review period[191]. - The largest supplier represented 44% of the total procurement, with the top five suppliers making up 84% of the total procurement[191]. Compliance and Risk Management - The company has established a whistleblowing policy for employees and stakeholders to report concerns confidentially[127]. - The company has implemented policies to promote anti-corruption laws and provides regular compliance training to employees[127]. - The company has confirmed compliance with the non-competition agreement for the year ending December 31, 2023, with no violations reported[170]. Future Outlook - The company maintains a cautious optimism regarding the business outlook for 2024, despite uncertainties in the economic environment[71]. - The company will focus on cost management to ensure sustainable development and improve cash flow[71].

Revenue Performance - Revenue for the year ended December 31, 2023, was RMB 273,372 thousand, a decrease of 8.4% from RMB 298,423 thousand in 2022[2] - Total revenue for the year ended December 31, 2023, was RMB 298,423 thousand, a decrease from RMB 319,755 thousand in 2022, representing a decline of approximately 6.6%[196] - Revenue from customer contracts was RMB 73,930 thousand, compared to RMB 79,019 thousand in 2022, indicating a decline of approximately 6.4%[196] - Rental income for the year was RMB 199,442 thousand, down from RMB 219,404 thousand in the previous year, reflecting a decrease of about 9.1%[196] - Rental income for 2023 was RMB 199,442 thousand, accounting for 73% of total revenue, while property management service income was RMB 61,310 thousand, representing 22%[70] Profit and Loss - The operating loss for 2023 was RMB 33,091 thousand, significantly improved from an operating loss of RMB 158,716 thousand in 2022[2] - Net loss attributable to the owners of the company for 2023 was RMB 79,989 thousand, compared to a net loss of RMB 168,706 thousand in 2022, representing a reduction of 52.6%[2] - The group reported a loss before tax of RMB (91,087,000) for the year ended December 31, 2023, compared to a loss of RMB (208,346,000) in 2022, showing an improvement of approximately 56.3%[52] - The company reported a net loss of RMB 167,430 thousand for the year, compared to a loss of RMB 208,346 thousand in 2022, showing an improvement of about 19.6%[196] - The group recorded a loss of approximately RMB 80.3 million in 2023, a decrease from RMB 167.4 million in 2022, attributed to reduced fair value losses on investment properties[99] Financial Position - Total liabilities increased to RMB 1,598,544 thousand in 2023 from RMB 1,415,380 thousand in 2022, reflecting a rise of 12.9%[5] - Total assets as of December 31, 2023, were RMB 2,934,280 thousand, compared to RMB 2,831,183 thousand in 2022, indicating a growth of 3.6%[18] - The capital-to-debt ratio as of December 31, 2023, was 27%, down from 30% in 2022[103] - Current assets amounted to RMB 144.1 million as of December 31, 2023, compared to RMB 46.4 million in 2022, with a current ratio of 1.32[104] - The total amount of bank loans as of December 31, 2023, was RMB 879,424,000, an increase from RMB 733,307,000 in 2022, representing a growth of about 20%[60] Asset Management - The group’s total assets in the property leasing segment amounted to RMB 2,952,549,000 as of December 31, 2023, compared to RMB 2,833,874,000 in 2022, reflecting a growth of about 4.2%[44] - The investment properties pledged as collateral for bank loans increased significantly to RMB 1,011,880,000 as of December 31, 2023, compared to RMB 418,800,000 in 2022[41] - The fair value loss of investment properties decreased to approximately RMB 217.4 million in 2023 from RMB 349.8 million in 2022, a reduction of about 37.8%[73] Expenses and Financial Management - Financial expenses increased by approximately RMB 8.4 million or 17% to RMB 58.0 million in 2023 compared to RMB 49.6 million in 2022[77] - Administrative expenses increased by approximately RMB 1.8 million or 5% to about RMB 39.0 million in 2023, primarily due to increased travel and entertainment costs[96] - The group reported a net impairment loss on financial assets and lease receivables of RMB 5,625 thousand in 2023, down from RMB 9,588 thousand in 2022[2] Corporate Governance and Strategy - The company is committed to adhering to the corporate governance code as outlined in the listing rules[127] - The company has established a cautious approach to its six main business operations amidst a challenging business environment[125] - The company plans to continue expanding its investment properties and rental income streams as part of its growth strategy[88] - The company aims to enhance its property management services through acquisitions of mature projects, which will contribute to stable cash flow and shareholder benefits[126] Market and Economic Outlook - The company maintains a cautiously optimistic outlook for business operations in 2024, emphasizing cost management to ensure sustainable development and stronger cash flow[125] - The company anticipates continued economic recovery in China in 2024, despite recent uncertainties in the global environment[143] Other Key Information - The company has established an audit committee consisting of three members, including Dr. Zeng Zhaowu as the chairman[133] - The company will hold its annual general meeting on May 30, 2024[135] - The company has not purchased, sold, or redeemed any of its listed securities during the year ending December 31, 2023[150] - The company has not recognized any revenue from a single external customer that accounts for 10% or more of total revenue for both 2023 and 2022, indicating a diversified revenue base[48]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 129,101 thousand, a decrease of 15% compared to RMB 151,996 thousand for the same period in 2022[31]. - The company reported a net loss of RMB 82,929 thousand for the first half of 2023, compared to a profit of RMB 16,454 thousand in the same period last year[33]. - The operating profit margin for the online mall business decreased to about 4% during the reporting period, down from 18% in the same period of 2022[10]. - The company reported a loss of RMB 82.929 million for the period, compared to a profit of RMB 16.454 million in the same period last year[184]. - The total revenue breakdown included rental income at 71%, property management services at 24%, and sales of goods at 4%[194]. - Core profit for the period was RMB 35.526 million, down from RMB 58.434 million, resulting in a core profit margin of 28% compared to 38% in the previous year[184][191]. - The company reported a net loss of approximately RMB 82.9 million for the six months ended June 30, 2023, compared to a profit of RMB 16.5 million in the same period of 2022, resulting in a net loss margin of about 64.2%[199]. - Operating loss for the same period was approximately RMB 76.2 million, with an operating loss margin of about 59.1%, compared to an operating profit of RMB 51.8 million and an operating profit margin of 34.1% in 2022[199]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 2,970,229 thousand, an increase from RMB 2,831,183 thousand at the end of 2022[36]. - Non-current liabilities rose to RMB 1,300,165 thousand, up from RMB 1,075,059 thousand, primarily due to increased borrowings[38]. - The company’s total equity decreased to RMB 1,333,074 thousand from RMB 1,415,803 thousand, reflecting the impact of the net loss[38]. - Total liabilities rose to RMB 1,637,155,000 as of June 30, 2023, up from RMB 1,415,380,000 at the end of 2022, indicating an increase of about 15.6%[96]. - The fair value of investment properties as of June 30, 2023, was RMB 2,348,596 thousand, down from RMB 2,396,940 thousand, representing a decrease of 2.0%[82]. - The net value of investment properties decreased to RMB 2,348,596,000 as of June 30, 2023, down from RMB 2,733,898,000 at the end of 2022, representing a decline of 14.1%[125]. Cash Flow and Financing - As of June 30, 2023, the company's cash and cash equivalents amounted to approximately RMB 473.2 million, an increase from RMB 314.5 million as of December 31, 2022[1]. - The group incurred a net cash outflow from investing activities of RMB 28,092 thousand, compared to RMB 67,732 thousand in the same period last year[49]. - Financing activities generated net cash inflow of RMB 161,539 thousand, significantly up from RMB 4,754 thousand in the previous year[49]. - The company’s cash flow forecasts are prepared by the management and monitored to ensure sufficient cash to meet business needs[73]. - The company’s operating lease receivables net amount increased to RMB 37,045,000 as of June 30, 2023, compared to RMB 30,150,000 at the end of 2022, reflecting a growth of 22.9%[126]. Shareholder Information - Major shareholders include Honchuen Investment, Zuoting Investment, and Weixin Development, each holding approximately 52.19% of the company's issued share capital[22]. - The company holds a 52.2% equity interest in the issued share capital, with significant ownership by key executives[17]. - The company has established a consistent action agreement among major shareholders to maintain control over the group[24]. - The company does not recommend the payment of any interim dividend for the reporting period, consistent with the same period in 2022[27]. Operational Developments - The company has entered into a cooperation agreement with Zhengzhou Henghao Steel Co., Ltd. to manage a planned hotel supplies mall, which will have a total operating area of approximately 150,000 square meters and accommodate up to 500 tenants[10]. - The company continues to expand its market share and brand influence by establishing a vertical e-commerce service platform for the hotel supplies industry[12]. - The company has paused the CHE exhibition management service since 2020 due to the impact of the COVID-19 pandemic, which has affected its revenue generation[12]. - The company plans to enhance its stable cash flow through property service projects, particularly via acquisitions and mergers[12]. Employee Information - As of June 30, 2023, the total number of employees in the group was approximately 265, a decrease from 319 in the same period of 2022[27]. - Employee benefit expenses during the reporting period amounted to RMB 207 million, compared to RMB 216 million in the same period of 2022[27]. - The management emphasizes the importance of employee training and development to enhance skills and knowledge[27]. Legal and Compliance - The group is involved in a legal dispute regarding a lease agreement, with a court ruling on June 5, 2023, ordering the return of a deposit of RMB 10 million[27]. - The audit committee has reviewed the unaudited financial information for the reporting period, ensuring compliance with applicable accounting standards[165]. - The company has maintained compliance with corporate governance codes and continues to review its governance status regularly[156].

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，概不對因本公告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 （於開曼群島註冊成立的有限公司） 3603 （股份代號： ） 2023 6 30 截 至 年 月 日 止 六 個 月 的 中 期 業 績 公 告 信基沙溪集团股份有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本 公司及其附屬公司（統稱「本集團」）截至2023年6月30日止六個月（「報告期」）之未 經審核簡明綜合中期業績連同截至2022年6月30日止六個月（「2022 年同期」）之比 較數字。本集團之該等中期業績已由本公司之審核委員會審閱。 財務摘要 6 30 截至 月 日止六個月 2023 年 2022年 （人民幣千元） （人民幣千元） 收益 129,101 151,996 期內（虧損）╱溢利 (82,929) 16,454 核心純利(i) 35,526 58,434 ...

Occupancy Rates and Property Management - As of December 31, 2022, the total leasable area of the Xinji Shaxi Hotel Supplies Expo City is approximately 62,124.08 square meters, with an occupancy rate of 85.4%, down from 89.0% in 2021[16][26]. - The Xinji Haotai Hotel Supplies City recorded an occupancy rate of 85.7% in 2022, compared to 91.5% in 2021, with a total building area of approximately 72,636.09 square meters[17][28]. - The Shenyang Xinji Shaxi International Home Supplies Expo Center has a total building area of approximately 114,911.16 square meters and an occupancy rate of 100% as of December 31, 2022[32]. - The Shenyang Xinji Shaxi Hotel Supplies Expo City has an occupancy rate of 42.8% in 2022, down from 45.6% in 2021[8]. - Xinji Dashi Furniture City achieved a 100% occupancy rate in 2022, maintaining the same level as in 2021[30]. - The occupancy rate of the Shenyang Xinji Shaxi International Home Furnishing Expo Center was 79.9% in 2022, down from 90.0% in 2021[59]. - The total number of tenants across various malls includes 552 tenants in Xinji Shaxi Hotel Supplies Expo City, 70 in Shenyang Xinji Shaxi Hotel Supplies Expo City, and 184 in Shenyang Xinji Shaxi International Home Supplies Expo Center[26][29][32]. Financial Performance - For the year 2022, the company reported a revenue of RMB 298.4 million, an increase of RMB 1.0 million or 0.3% compared to RMB 297.4 million in 2021[62]. - The core profit for 2022 was approximately RMB 94.9 million, a decrease of RMB 0.7 million or 1% from RMB 95.6 million in 2021[62]. - Total assets as of December 31, 2022, amounted to RMB 2,831.2 million, down from RMB 3,160.1 million in 2021[39]. - Non-current assets were reported at RMB 2,444.4 million, a decrease from RMB 2,792.8 million in the previous year[39]. - Current liabilities stood at RMB 340.3 million, compared to RMB 317.4 million in 2021[39]. - The total liabilities of the company were RMB 1,415.4 million, slightly down from RMB 1,437.9 million in 2021[39]. - The company did not declare a final dividend for the year ended December 31, 2022, consistent with 2021[67]. - The net loss for the year was approximately RMB 167.4 million, down from RMB 205.6 million in 2021, representing a reduction of RMB 38.2 million or 19%[96]. Strategic Initiatives and Market Expansion - The company aims to provide a one-stop shopping experience for office and home supplies, targeting potential commercial and household customers in Northeast China[9]. - The company continues to focus on expanding its market presence and enhancing customer experience through strategic initiatives[9]. - The company aims to enhance brand influence and expand in international markets, striving to establish itself as a world-class brand[37]. - The company plans to allocate approximately 22.5% of the unutilized net proceeds, amounting to about RMB 30.0 million, to establish a vertical e-commerce service platform for the hotel supplies industry[46]. - The company aims to expand its online mall business and increase market share and brand influence through a vertical e-commerce service platform in the hotel supplies industry[144]. - The company plans to continue expanding its property services business, particularly through acquisitions of mature property service projects to enhance stable cash flow[144]. Employee and Operational Insights - Employee count increased by 35% to approximately 276 as of December 31, 2022, compared to 204 in 2021[83]. - Employee benefits expenses for 2022 amounted to approximately RMB 43.2 million, up from RMB 38.1 million in 2021[83]. - The company has sufficient cash and bank financing to support its general business operations[81]. - The company is closely monitoring foreign exchange risks, although it currently has no hedging policies in place[80]. Corporate Governance and Board Structure - The board consists of 9 members, maintaining a balanced composition of 3 executive directors, 3 non-executive directors, and 3 independent non-executive directors[133]. - The company is committed to enhancing gender diversity on the board, currently having one female director, and aims to improve the female ratio in line with shareholder expectations and best practices[133]. - The company emphasizes the importance of a balanced power structure within the board to ensure effective decision-making and execution[132]. - The company has complied with the corporate governance code principles and provisions as per the listing rules, except for the provision that the roles of chairman and CEO should be separate[156]. - The board is responsible for the leadership and internal control of the company, overseeing business, strategic decisions, and performance[158]. - The company has appointed independent non-executive directors to ensure independent judgment and oversight of the board[163]. - The company has established three board committees: the audit committee, nomination committee, and remuneration committee, which operate according to their specific written terms of reference[176]. Future Outlook and Development Plans - The company anticipates that the unutilized net proceeds will be fully utilized by 2024 for new project developments[99]. - The group anticipates a stable business outlook for 2023, driven by the recovery from the pandemic and strategic adjustments in its business plans[117]. - The company plans to delay the use of unallocated net proceeds for new project development from 2023 to 2024 due to the lack of suitable new projects[75].

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所產生或因依賴該等內容而引致的任何損失承擔任何責 任。 （於開曼群島註冊成立的有限公司） 3603 （股份代號： ） 2022 12 31 截 至 年 月 日 止 年 度 的 年 度 業 績 公 告 信基沙溪集團股份有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本 公司及其附屬公司（統稱「本集團」）截至2022年12月31日止年度（「2022 年」）之經審 核年度業績連同截至2021年12月31日止年度（「2021 年」）之比較數字。本年度業 績已由本公司之審核委員會審閱。 財務摘要 12 31 截至 月 日止年度 2022 年 2021年 （人民幣千元）（人民幣千元） （經重列） 收益 298,423 297,429 年內虧損 (167,430) (205,576) 核心純利(i) 94,890 95,563 ...