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 ...

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].