Revenue and Profit - Revenue for the six months ended June 30, 2022, was approximately RMB 151.996 million, a slight decrease of about 0.7% from RMB 153.033 million in the same period of 2021[21]. - The net profit for the period was RMB 16.454 million, down from RMB 51.970 million in the previous year, indicating a significant decline[21]. - Core net profit increased to RMB 58.434 million, representing a core net profit margin of 38%, up from 32% in the previous year[21]. - Rental income accounted for approximately 74% of total revenue, totaling RMB 111.883 million, a decrease of about 0.7% from RMB 112.645 million in the prior year[29]. - Property management service revenue increased by approximately RMB 1.9 million or 6.5% to RMB 30.464 million, driven by the expansion of new property management projects[31]. - Sales of goods revenue decreased by approximately RMB 5.0 million or 42.4% to RMB 6.779 million, primarily due to the cancellation of all food-related e-commerce businesses[32]. - Operating profit decreased by approximately RMB 50.0 million or 49.1% to about RMB 51.8 million, with an operating profit margin dropping from 66.6% to 34.1% due to significant changes in the fair value of investment properties[39]. - Profit decreased by approximately RMB 35.5 million or 68.3% to about RMB 16.5 million, with a net profit margin dropping from 34.0% to 10.8% due to a significant decrease in the fair value of investment properties[43]. - The company reported a profit of RMB 14,747 thousand for the six months ended June 30, 2022, compared to a profit of RMB 52,187 thousand for the same period in 2021, indicating a significant decrease of approximately 71.7%[117]. Expenses and Financial Performance - Selling and marketing expenses decreased by RMB 7.2 million or 51.3% to RMB 6.8 million, attributed to ongoing cost reduction measures[35]. - Administrative expenses decreased by RMB 3.0 million or 14.9% to approximately RMB 17.1 million, also due to cost efficiency initiatives[36]. - Other income increased by RMB 2.0 million or 53.9% to approximately RMB 5.7 million, mainly due to increased default income from early lease terminations[37]. - Financial income increased by RMB 0.2 million or 287.3% to approximately RMB 0.3 million, primarily due to investment management of bank deposits[40]. - Financial expenses rose by approximately RMB 2.2 million or 9.0% to about RMB 26.6 million, mainly due to increased bank financing costs[41]. - Net financial expenses increased by RMB 2.0 million or 8.1% to approximately RMB 26.3 million[42]. - Total operating expenses for the six months ended June 30, 2022, were RMB 48,478 thousand, a decrease of 12.7% from RMB 55,512 thousand in the same period of 2021[161]. - Financial expenses for the six months ended June 30, 2022, amounted to RMB 26,292 thousand, an increase from RMB 24,324 thousand in the same period of 2021[163]. Investment Properties and Fair Value - The fair value loss of investment properties was approximately RMB 56.0 million, a significant decline from a fair value gain of RMB 4.1 million in the previous year[34]. - The company reported a loss of RMB 55,973 thousand from fair value changes in investment properties, compared to a gain of RMB 4,120 thousand in the same period last year[107]. - The investment properties' fair value as of June 30, 2022, was RMB 2,733,898 thousand, up from RMB 2,641,030 thousand as of December 31, 2021[143]. - All investment properties were classified under Level 3 fair value hierarchy as of June 30, 2022, consistent with the previous year[146]. Cash Flow and Liquidity - As of June 30, 2022, the unutilized net proceeds amounted to approximately RMB 133.3 million, with plans to allocate 30.0% (about RMB 40.0 million) for expanding property management services[49]. - The liquidity ratio as of June 30, 2022, was 1.11, down from 1.16 as of December 31, 2021[57]. - Cash and cash equivalents increased slightly to RMB 253,268 thousand from RMB 249,689 thousand, showing a growth of about 1.2%[111]. - Operating cash flow for the six months ended June 30, 2022, was RMB 109,176 thousand, an increase from RMB 91,965 thousand in the same period of 2021, representing a growth of 18.6%[121]. - Net cash from operating activities increased to RMB 67,107 thousand, compared to RMB 45,869 thousand in the prior year, reflecting a rise of 46.3%[121]. - Net cash used in investing activities was RMB (67,732) thousand, a significant increase from RMB (28,616) thousand in the previous year, indicating a decline in cash flow of 136.4%[121]. - Financing activities generated net cash of RMB 4,754 thousand, a recovery from a net cash outflow of RMB (30,440) thousand in the same period last year[121]. Shareholder Information and Corporate Governance - Honchuen Investment, owned by Mr. Zhang Hanquan, holds 782,910,000 shares, representing 52.2% of the company's issued share capital[91]. - Zuoting Investment, owned by Mr. Mei, also holds 782,910,000 shares, representing 52.2% of the company's issued share capital[91]. - Weixin Development, owned by Mr. Zhang, holds 782,910,000 shares, representing 52.2% of the company's issued share capital[91]. - AL Capital Holdings holds 119,832,000 shares, representing 7.99% of the company's issued share capital[91]. - Huiqun Investment holds 93,375,000 shares, representing 6.23% of the company's issued share capital[91]. - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[96]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, ensuring compliance by all directors during the reporting period[83]. - There were no reported violations of the standard code of conduct by senior management during the reporting period[83]. - The company reported a strategic focus on maintaining high levels of corporate governance and compliance with applicable regulations[79]. Employee Information - As of June 30, 2022, the total number of employees in the group was approximately 319, an increase from 211 in the same period of 2021[95]. - Employee benefits expenditure during the reporting period was approximately RMB 21.6 million, compared to RMB 18.7 million in the same period of 2021[95]. Future Plans and Business Strategy - The company plans to allocate approximately RMB 30.0 million (22.5%) of the unutilized proceeds to establish a vertical e-commerce service platform for hotel supplies[49]. - Approximately RMB 63.3 million (47.5%) of the unutilized proceeds will be used for general development of new projects related to hotel supplies and home decoration[49]. - The company aims to expand its online mall business and market share through a light asset model focused on brand and management output[77]. - The company plans to enhance its property services business through acquisitions of mature projects to strengthen stable cash flow[77]. - The company has no significant future investment or capital asset plans beyond those disclosed in the prospectus[59]. Legal Matters - There are ongoing legal proceedings involving a claim for a deposit of RMB 10 million related to a lease agreement[99]. - The arbitration case regarding a development agreement has a potential maximum liability estimated at RMB 20 million[100].

Rental Rates and Occupancy - The rental rate for the XJ Shaxi Hotel Supplies Expo City was recorded at 89.0% in 2021, down from 94.7% in 2020[13]. - The XJ Haotai Hotel Supplies City achieved a rental rate of 91.5% in 2021, compared to 93.9% in 2020[15]. - The occupancy rate for Shenyang Xinji Shaxixi Hotel Supplies Expo City was 45.6% in 2021, up from 40.9% in 2020[17]. - The occupancy rate for Xinjishi Dashi Furniture City remained at 100% in both 2021 and 2020[19]. - The occupancy rate for Shenyang Xinji Shaxixi International Home Furnishing Expo Center was 90.0% in 2021, an increase from 85.9% in 2020[21]. Financial Performance - For the year ended December 31, 2021, the company's revenue was approximately RMB 267.5 million, a decrease of RMB 20.4 million or 7% compared to RMB 287.9 million in 2020[25]. - The core profit for the year was approximately RMB 86.2 million, a decrease of RMB 2.5 million or 3% from RMB 88.7 million in 2020[25]. - Total revenue decreased by 7% from approximately RMB 287.9 million in 2020 to approximately RMB 267.5 million in 2021, primarily due to a reduction in rental income[33]. - Rental income for 2021 was approximately RMB 217.3 million, a decrease of about RMB 25.1 million or 10% compared to RMB 242.4 million in 2020, impacted by construction disruptions and COVID-19[37]. - Operating loss for 2021 was approximately RMB 221.1 million, compared to an operating profit of approximately RMB 118.9 million in 2020[46]. - The group reported a loss of RMB 214.925 million for the year ended December 31, 2021, compared to a profit of RMB 31.911 million in 2020, indicating a significant downturn in financial performance[49]. Assets and Liabilities - Total assets decreased from RMB 3,288.5 million in 2020 to RMB 3,100.7 million in 2021, a decline of approximately 5.7%[28]. - Total liabilities increased slightly from RMB 1,394.1 million in 2020 to RMB 1,420.9 million in 2021, reflecting a rise of about 1.9%[28]. - As of December 31, 2021, the group had net current assets of RMB 4.2 million, a significant improvement from net current liabilities of RMB 68.5 million as of December 31, 2020[65]. Strategic Initiatives - The company aims to maintain its position as a leading wholesale market for hotel supplies in China[13]. - The company aims to enhance brand influence and expand into international markets[25]. - The group aims to utilize the unutilized net proceeds by 2023 for various strategic initiatives, including property management and e-commerce development[57]. - The company plans to allocate approximately RMB 30 million (22.5%) of the unutilized net proceeds to establish a vertical e-commerce platform for the hotel supplies industry[54]. Corporate Governance - The company has implemented good corporate governance policies and measures, focusing on accountability, transparency, and independence[109]. - The board of directors consists of 9 members, including 3 executive directors, 3 non-executive directors, and 3 independent non-executive directors, ensuring a balanced composition[111]. - The independent non-executive directors are allowed to freely express their opinions to the board[126]. - The company has a diversity policy for board members, considering various factors such as gender, age, and industry experience[137]. Market Position and Industry Relations - The company has established itself as a leader in the hotel supplies industry in China, with over 2,000 members in the China Hotel Supplies Association (CHSA) since its founding in 2013[92]. - The group emphasizes the importance of industry alliances and collaborative development to strengthen brand loyalty within the industry[85]. - The management team is actively involved in various industry associations, which helps in networking and staying updated with industry trends[92][96]. Environmental and Social Responsibility - The company has implemented environmental protection measures and encourages employees to conserve energy and reduce waste[174]. - The company plans to disclose further details on its environmental, social, and governance performance in its upcoming report[174]. Employee and Director Management - The group’s employee count as of December 31, 2021, was approximately 204, down from 211 in 2020, with employee benefits expenses of RMB 29.3 million in 2021[73]. - The total remuneration for directors in 2021 amounted to approximately RMB 2.9 million, a decrease from RMB 3.8 million in 2020[113]. - The independent non-executive directors have disclosed their time spent on company affairs, confirming their capacity to contribute effectively[120]. Financial Controls and Compliance - The company has established a policy to prevent corruption and provides regular compliance training to maintain a healthy corporate culture and enhance compliance awareness[153]. - The internal audit function is responsible for analyzing the adequacy and effectiveness of the company's risk management and internal control systems[153]. - The external auditor's report confirms that there are no significant uncertainties that may affect the company's ability to continue as a going concern[153].

Financial Performance - Revenue for the six months ended June 30, 2021, was approximately RMB 138.4 million, a slight decrease of about 0.4% from RMB 138.9 million in the same period of 2020[10]. - Profit for the period increased significantly to RMB 47.1 million, compared to RMB 15.1 million in the previous year[7]. - Core net profit was RMB 44.0 million, with a core net profit margin of 32%, down from 36% in 2020[7][8]. - Operating profit increased by approximately RMB 40.8 million or 74.7% to approximately RMB 95.4 million, with an operating profit margin rising from about 39.3% to approximately 68.9%[14]. - Profit for the period increased by approximately RMB 32 million or 211.9% to approximately RMB 47.1 million, with a net profit margin rising from about 10.9% to approximately 34.0%[18]. - The company reported a net profit attributable to owners of RMB 48,224,000 for the six months ended June 30, 2021, compared to RMB 16,188,000 for the same period in 2020, marking a significant increase of 197.5%[119]. Revenue Breakdown - Rental income accounted for approximately 81% of total revenue, amounting to RMB 112.6 million, a decrease of about 6.9% from RMB 121.0 million in the previous year[12]. - Property management services revenue increased to RMB 13.9 million, representing 10% of total revenue, up from 8% in 2020[11]. - Sales of goods reached RMB 11.8 million, contributing 9% to total revenue, compared to 5% in the previous year[11]. - Total revenue from the group's malls decreased by approximately RMB 5.8 million during the reporting period, primarily due to construction impacts and increased property management fees[35]. - Online mall sales generated revenue of approximately RMB 11.8 million during the reporting period, an increase from RMB 6.5 million in the same period of 2020[38]. Expenses and Liabilities - Financial income decreased by approximately RMB 1.4 million or 93.3% to approximately RMB 0.1 million due to a decline in deposit interest rates[15]. - Financial expenses decreased by approximately RMB 2.9 million or 10.6% to approximately RMB 24.4 million, mainly due to reduced bank financing costs[16]. - The company incurred interest expenses of RMB 22,854,000 during the first half of 2021, compared to RMB 20,748,000 in the same period of 2020, indicating an increase of approximately 10%[72]. - The company reported a net financial expense of RMB 24,324 thousand for the six months ended June 30, 2021, compared to RMB 25,794 thousand for the same period in 2020, showing a reduction of approximately 5.7%[111]. - The company's current liabilities exceeded its current assets by RMB 82,500,000 as of June 30, 2021, indicating potential liquidity concerns[77]. Cash Flow and Assets - As of June 30, 2021, the group's cash and cash equivalents amounted to approximately RMB 168.9 million, a decrease from RMB 182.5 million as of December 31, 2020[24]. - The net cash flow from operating activities for the six months ended June 30, 2021, was RMB 87,143,000, compared to RMB 65,494,000 for the same period in 2020, indicating a year-over-year increase of approximately 33%[72]. - The total assets as of June 30, 2021, amounted to RMB 3,302,503 thousand, a slight increase from RMB 3,288,482 thousand as of December 31, 2020[68]. - The net debt was RMB 432,038 thousand as of June 30, 2021, compared to RMB 444,608 thousand as of December 31, 2020[88]. - The total borrowings amounted to RMB 604,238,000 as of June 30, 2021, down from RMB 630,405,000 as of December 31, 2020, a decrease of 4.1%[139]. Strategic Initiatives and Future Outlook - The company continues to focus on enhancing its property management services and exploring new revenue streams[9]. - Future outlook includes potential market expansion and strategic initiatives to improve overall performance[9]. - The company plans to utilize net proceeds from global offerings for various projects, including repayment of bank loans and development of new projects in Chengdu, Zhengzhou, Fuzhou, and Guangzhou[22]. - The company plans to further explore revenue-generating opportunities in property management, leveraging its comprehensive service advantages in commercial operations and property management[41]. - The company is actively seeking legal advice regarding ongoing arbitration cases, which may impact future operations and shareholder interests[57]. Market and Industry Context - Since the outbreak of COVID-19 in 2020, the importance of property service companies in creating safe and reliable community environments has been recognized, leading to unprecedented development opportunities in the property management industry[41]. - The COVID-19 pandemic has severely disrupted business operations and led to a significant global economic slowdown, with ongoing assessments to formulate appropriate response strategies[56]. - The company provided a positive outlook for the next quarter, projecting a revenue growth of 20% driven by new product launches and market expansion initiatives[154]. Shareholder Information - Citigroup Inc. holds a total of 115,611,000 shares (7.70%) and 35,251,877 shares (2.35%) in short positions, indicating significant institutional interest[52]. - Honchuen Investment, controlled by Mr. Zhang Hanquan, holds 782,910,000 shares, representing 52.2% of the company's issued share capital, indicating a strong controlling interest[52]. - The company did not recommend the payment of any interim dividend for the reporting period, consistent with the previous year where no interim dividend was declared[55]. Employee and Operational Metrics - As of June 30, 2021, the total number of employees in the group was approximately 211, a decrease from 221 in the same period of 2020, with employee benefits expenses amounting to RMB 16.3 million compared to RMB 20.3 million in 2020[55]. - Employee benefit expenses decreased to RMB 16,254 thousand in the first half of 2021 from RMB 20,278 thousand in the same period of 2020, a decline of about 19.9%[109].

(於開曼群島註冊成立的有限公司) 股份代號: 3603 年 報 2020 目錄 公司資料 2 商城概覽 4 主席報告 8 9 財務概要 10 管理層討論及分析 20 董事及高級管理層的履歷資料 26 企業管治報告 董事會報告 36 49 獨立核數師報告 經審核財務報表： 綜合收益表 54 綜合全面收益表 55 綜合資產負債表 56 綜合權益變動表 58 綜合現金流量表 59 綜合財務報表附註 60 124 釋義 公司資料 公司秘書 | --- | --- | |---------------------------------------|-----------------------------------------------------------| | | | | 執行董事 | 授權代表 | | 張漢泉先生， 董事會主席兼首席執行官 | 靳春雁女士 | | 梅佐挺先生 | 甘志成先生 | | 張偉新先生 | | | 靳春雁女士， 首席財務官 | 核數師 | | 非執行董事 | 羅兵咸永道會計師事務所 執業會計師及註冊公眾利益實體核數師 | | 余學聰先生 | | | 林烈先生 （於 2020年3月1 ...

Revenue Performance - Revenue for the six months ended June 30, 2020, decreased by approximately 2.9% to RMB 138.9 million from RMB 143.1 million in the same period of 2019[10]. - Total revenue for the six months ended June 30, 2020, was RMB 138,905,000, compared to RMB 143,092,000 in 2019, reflecting a decrease of 2.9%[110]. - Rental income accounted for approximately 87.0% of total revenue, amounting to RMB 121.0 million, a decrease of about RMB 2.8 million or 2.3% compared to RMB 123.8 million in the same period of 2019[12]. - The decrease in revenue was primarily attributed to reduced rental income and property management service fees[10]. - Revenue from property management services decreased by approximately RMB 1.5 million or about 11.6% to approximately RMB 11.4 million, mainly due to a decline in managed area caused by the pandemic[14]. - Sales of goods contributed RMB 6.5 million, slightly up from RMB 6.4 million in the previous year[11]. - Online mall sales generated revenue of approximately RMB 6.5 million during the reporting period, slightly up from RMB 6.4 million in the same period of 2019[32]. Profitability - Core profit for the six months ended June 30, 2020, was RMB 49.8 million, down from RMB 54.1 million in 2019, with a core profit margin of 36% compared to 38% in the previous year[6][7]. - The company reported a net profit of RMB 15.1 million for the period, significantly lower than RMB 46.3 million in the same period of 2019[6]. - The company's profit decreased by approximately RMB 31.2 million to about RMB 15.1 million, with a net profit margin dropping from approximately 32.3% in the same period of 2019 to about 10.9% due to significant reductions in fair value gains from investment properties[16]. - Core net profit decreased by approximately RMB 4.3 million or about 7.9% to approximately RMB 49.8 million, primarily attributed to a revenue decline of about RMB 4.2 million caused by the COVID-19 pandemic[17]. - Operating profit decreased by approximately RMB 42.9 million to about RMB 54.6 million, with the operating profit margin dropping from approximately 68.2% in 2019 to about 39.3%[14]. - Net profit attributable to the company’s owners was RMB 16.2 million, a decline of 65.8% compared to RMB 47.3 million in the prior year[59]. - Basic earnings per share for the six months ended June 30, 2020, was RMB 0.01, down from RMB 0.04 in 2019[6]. Financial Position - As of June 30, 2020, the group had cash and cash equivalents of approximately RMB 228.5 million, down from RMB 272.4 million as of December 31, 2019[26]. - The group's bank borrowings amounted to approximately RMB 611.7 million as of June 30, 2020, with an interest rate ranging from 6.30% to 7.36%[26]. - The capital debt ratio as of June 30, 2020, was 20%, compared to 18% as of December 31, 2019[26]. - Total assets as of June 30, 2020, were RMB 3,232,119,000, down from RMB 3,289,969,000 as of December 31, 2019, reflecting a decrease of 1.75%[63]. - The total equity decreased to RMB 1,877,590,000 from RMB 1,881,769,000, reflecting a decrease of 0.22%[65]. - The company's retained earnings as of June 30, 2020, were RMB 1,344,008,000, a minor decrease from RMB 1,347,140,000 at the end of 2019[63]. - The group’s total liabilities as of June 30, 2020, were RMB 1,016,233 thousand, with trade and other payables excluding salaries and taxes amounting to RMB 85,300 thousand[91]. Impact of COVID-19 - The company implemented rental waivers and concessions due to the impact of the COVID-19 pandemic, affecting rental income[12]. - The financial results reflect the challenges faced during the reporting period, with a focus on recovery strategies moving forward[9]. - The overall occupancy rate of the group's malls decreased by approximately 5% compared to December 31, 2019, primarily due to the impact of the COVID-19 pandemic[28]. - The Zhengzhou and Fuzhou projects originally planned to start in July 2021 have been postponed due to the ongoing COVID-19 pandemic[34]. - The group has decided to suspend the CHE exhibition in the second half of 2020 due to cautious participation from exhibitors amid the pandemic[35]. - The company has introduced rent exemptions or reductions for tenants due to the impact of the COVID-19 pandemic, which has affected financial performance[169]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules and confirmed compliance by all directors during the reporting period[40]. - The board consists of 4 executive directors, 3 non-executive directors, and 4 independent non-executive directors, ensuring a significant level of independence[38]. - The company has implemented good corporate governance policies and practices, overseen by the board[38]. - The company is committed to maintaining high standards of corporate governance and accountability[38]. Future Outlook - The company plans to implement various policies to improve mall occupancy rates and alleviate tenant burdens during the pandemic, including a 20% discount on promotional fees for tenants renewing leases by December 31, 2020[35]. - The company is actively communicating with government departments regarding land requisition for the Guangzhou Mall, which is under review for redevelopment[38]. - The company will make further announcements as developments regarding land requisition progress[38].

Market Presence and Operations - The total leasable area of the Xiji Shaxi Hotel Supplies Expo City is approximately 62,124.08 square meters, with an occupancy rate of 99.3% as of December 31, 2019[12]. - The Xiji Haotai Hotel Supplies City has a total operating area of about 70,845.28 square meters, achieving an occupancy rate of 97.0% in 2019[14]. - The Shenyang Xiji Shaxi Hotel Supplies Expo City has a total leasable area of approximately 48,933.43 square meters, with an occupancy rate of 55.3% as of December 31, 2019[17]. - The Xiji Shaxi Hotel Supplies Expo City is recognized as the largest hotel supplies wholesale market in Guangzhou and China based on 2018 operating area and rental income[12]. - The company operates multiple hotel supplies markets across China, including locations in Guangzhou and Shenyang, enhancing its market presence[16]. - The Xiji Shaxi Hotel Supplies Expo City was awarded the title of "Leading Market in China's Hotel Supplies Industry" in 2014 and recognized as a "National Integrity Demonstration Market" in 2015[12]. - The company aims to maintain its position as a leading wholesale market for hotel supplies in China, leveraging its strategic locations[12]. - The total construction area of the Shenyang Xiji Shaxi Hotel Supplies Expo City is approximately 88,416.03 square meters, making it a key player in the Northeast China market[16]. - The company has established a strong brand presence in the hotel supplies sector, attracting both domestic and international tenants[12]. - The Xiji Haotai Hotel Supplies City was previously known as Xiji Yingbin Hotel Supplies City, indicating a rebranding strategy to enhance market appeal[14]. Financial Performance - In 2019, the company's core net profit was approximately RMB 109.8 million, an increase of RMB 22.5 million or 26% compared to RMB 87.3 million in 2018[27]. - The company's revenue for 2019 was approximately RMB 303.1 million, up RMB 21.7 million or 8% from RMB 281.4 million in 2018[27]. - Rental income increased by RMB 10.8 million or 4% to RMB 254.7 million in 2019, accounting for 84% of total revenue[42]. - Property management service revenue rose by RMB 4.4 million or 18% to RMB 28.3 million, driven by increased managed area and higher service fees[43]. - Sales of goods revenue surged by RMB 7.2 million or 91% to RMB 15.1 million, attributed to the launch of the online mall business in April 2018[47]. - Operating profit decreased by RMB 178.3 million or 46% to RMB 207.6 million, with the operating profit margin dropping from 137% in 2018 to 68% in 2019[53]. - Net profit for 2019 fell by RMB 148.7 million or 59% to RMB 101.5 million, with the net profit margin declining from 89% to 33%[58]. - Core net profit increased by RMB 22.5 million or 26% to RMB 109.8 million, primarily due to a revenue increase of RMB 21.7 million[59]. - Total revenue for 2019 was RMB 303.1 million, up from RMB 281.4 million in 2018[41]. Investment and Funding - The net proceeds from the company's listing in 2019 amounted to approximately RMB 217.2 million, with about 26.1% allocated for repaying bank loans and 73.9% for the development of new malls in Chengdu, Zhengzhou, and Fuzhou[64]. - As of December 31, 2019, the company had utilized approximately RMB 21.8 million of the net proceeds from the IPO, with an expected remaining balance of RMB 195.4 million[63]. - The company has expanded its shareholder base and funding sources through its successful listing on the Hong Kong Stock Exchange on November 8, 2019[26]. - The company plans to pay a final dividend of RMB 0.013 per share for 2019, subject to shareholder approval[28]. Corporate Governance - The company has a board of directors consisting of 11 members, including executive and non-executive directors, ensuring a diverse leadership structure[1]. - The company has adhered to the corporate governance code as per the listing rules, with a focus on accountability, transparency, and independence[120]. - The board currently consists of 11 members, including 4 executive directors, 3 non-executive directors, and 4 independent non-executive directors, ensuring a balanced composition[120]. - The company has established and implemented good corporate governance policies and measures, with the board responsible for executing these governance duties[120]. - The board is responsible for the company's leadership and internal controls, overseeing the business, strategic decisions, and performance[120]. - The company emphasizes the importance of independent directors, with a balanced mix of executive and non-executive members on the board[120]. - The board has ensured compliance with the listing rules by appointing at least three independent non-executive directors, constituting one-third of the board[124]. - All independent non-executive directors have confirmed their independence according to the listing rules, with no indications of relationships affecting their judgment[125]. - The company secretary has over 25 years of experience in accounting, auditing, and management consulting, ensuring compliance with necessary qualifications[128]. Strategic Plans and Future Outlook - The company aims to strengthen its market share and brand influence through a light-asset project development model, focusing on "brand output, management output, and cooperative operation" from 2019 onwards[87]. - Future plans include implementing a dual-driven business model of self-operated and commissioned malls, expanding quality mall networks and brand portfolios[88]. - The company intends to establish a comprehensive standard service system to become a benchmark for innovative O2O business in the hotel and home supplies industry[88]. - The company is expanding its operations into an online mall to complement its traditional physical mall business, having established a strategic partnership with JD.com[82]. - The company aims to solidify its position as the leading platform in the hotel supplies industry in China, targeting to become the most advanced and professional full-channel platform provider[87]. Challenges and Responses - The COVID-19 pandemic has negatively impacted consumer demand for hotel and home supplies, affecting the company's operational performance in the short term[89]. - The company waived and reduced rental and management fees for some merchants in February and March 2020 to support them during the pandemic, which may temporarily affect financial performance but improve social image[89]. - The company is committed to enhancing long-term competitiveness through digitalization and information strategies[88]. Shareholder and Director Information - Total remuneration for directors in 2019 amounted to approximately RMB 3.0 million, including various components such as salaries and bonuses[123]. - Directors are appointed for specific terms and may be re-elected, with all directors required to retire at least every three years[123]. - The company’s articles of association allow shareholders holding at least one-tenth of the paid-up capital to request a special general meeting[156]. - The company’s board of directors is committed to ensuring shareholder rights and interests during the annual general meeting[156]. Risk Management and Internal Controls - The company has a robust internal control system with clearly defined responsibilities and authority, ensuring effective risk management and safeguarding of assets[151]. - The board has reviewed the effectiveness of the internal control and risk management systems to ensure a well-functioning operational framework[154]. - The internal audit function is responsible for analyzing and independently assessing the adequacy and effectiveness of the company's risk management and internal control systems[152]. - The company has committed to continuously reviewing and improving its internal systems related to oversight, control, and risk management[152].