北 京 迪 信 通 商 貿 股 份 有 限 公 司 Beijing Digital Telecom Co., Ltd. （ 於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司 ） （股 份 代 號：6188） 申請豁免嚴格遵守上市規則第3.28及8.17條 茲提述北京迪信通商貿股份有限公司（「本公司」）日期為2022年8月1日的公告，內 容有關香港聯合交易所有限公司（「聯交所」）向本公司授出的豁免，豁免本公司就 委任黃明強先生（「黄先生」）連同伍秀薇女士（「伍女士」）為本公司聯席公司秘書 嚴格遵守聯交所證券上市規則（「上市規則」）第3.28及8.17條的規定（「豁免」），自 2022年8月1日起為期三年。 本公司已向聯交所提出申請，以延長嚴格遵守上市規則第3.28及8.17條規定的豁免 （「延長豁免」）。黃先生與伍女士在聯交所對延長豁免申請進行審核期間，將繼續 擔任本公司的聯席公司秘書。本公司將於適當時候另行刊發公告。 承董事會命 北京迪信通商貿股份有限公司 董事長 許繼莉 中國，北京 2025年8月1日 於本公告日期，執行董事為許繼莉女士、許麗萍女士及劉東海先生；非執行董事為 謝輝先 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 FF301 第 1 頁 共 10 頁 v 1.1.1 致：香港交易及結算所有限公司 公司名稱: 北京迪信通商貿股份有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06188 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 548,760,400 | RMB | | | 1 RMB | | 548,760,400 | | 增加 / 減少 (-) | | | 0 | | | | RMB | | 0 | | 本月底結存 | | | 548,760,400 | RMB | | | 1 RMB | | ...

Core Viewpoint - The mobile phone retail market, especially in county-level cities, is experiencing a significant decline, with many stores struggling to survive as consumer preferences shift towards online shopping and larger retail spaces [5][10][37]. Group 1: Market Decline - The once-thriving mobile phone market in Chengdu has seen a drastic reduction in foot traffic and sales, with many stores now empty [1][4]. - A mobile store owner recalls that before 2017, business was flourishing, but now sales have plummeted to just a few units per week [2][3]. - Nationwide, many consumers returning home for the holidays notice a stark decline in the number of mobile phone stores, reminiscent of the rapid decline of internet cafes [4][5]. Group 2: Changing Retail Landscape - The traditional mobile phone retail model is collapsing, with major brands reducing their reliance on small mobile stores in favor of more attractive retail environments in shopping malls [10][12]. - Disixtong, a major mobile retail chain, saw its store count drop from over 3,000 in 2015 to around 600 by 2023, indicating a significant contraction in the sector [7][9]. - The profit margins for mobile phone sales have drastically decreased, with one retailer noting a drop from over 400 yuan to just over 100 yuan per device [9][10]. Group 3: Consumer Behavior Shift - Consumers, particularly younger demographics, are increasingly opting for online purchases, leaving county-level mobile stores at a disadvantage due to lack of price competitiveness [10][14]. - Middle-aged and elderly consumers, once a primary customer base for county mobile stores, are now less frequent visitors, often preferring online shopping to avoid being misled by sales tactics [19][20]. - The market for budget smartphones remains strong, with devices priced below 1,000 yuan accounting for a significant portion of sales, yet the low profit margins make it unappealing for local stores [26][27]. Group 4: Adaptation and Diversification - Many county mobile stores are diversifying their offerings, including mobile repairs and second-hand phone sales, as traditional sales decline [32][34]. - The second-hand mobile phone market is growing, projected to account for 20% of the total market by 2024, providing some relief to struggling retailers [34][36]. - However, the sustainability of this growth is uncertain, as competition from online platforms and other channels intensifies [35][36].

Core Insights - The upcoming May Day consumption surge presents an opportunity for Dixin Communication to capture market share, leveraging the strong resources from its parent company Huafa Group [1] - Dixin Communication has seen a significant increase in mobile retail sales, positioning itself as a benchmark case for the implementation of national subsidy policies [1][3] Group 1: National Subsidy Policy Impact - The Ministry of Commerce reports that since the implementation of the new subsidy scheme for digital products, there have been 64.866 million applications for subsidies, indicating a sustained policy effect [3] - Dixin Communication has launched subsidy services across over 600 stores nationwide, integrating resources from national subsidies, manufacturers, operators, and financial institutions to create a "four-dimensional benefit" effect [3] - The company has ensured that the national subsidy policy is effectively executed, helping consumers meet their demand for upgrading their devices [3] Group 2: Demonstration Role and Service Innovation - Dixin Communication's exemplary role in the national subsidy policy has been recognized by government authorities, with the Ministry of Commerce conducting on-site evaluations at its stores [4] - The company has introduced an "on-site purchase" service model, sending professional teams to various locations to provide comprehensive services, enhancing consumer experience [4] - By mid-April, Dixin Communication had conducted over 100 "on-site purchase" events in multiple provinces, achieving significant sales in individual events [4] Group 3: Market Trends and Strategic Positioning - The Chinese 3C retail industry is undergoing rapid restructuring, driven by both policy incentives and technological advancements, with IDC predicting smartphone shipments to reach 289 million units by 2025 [7] - Dixin Communication is adopting a "full-domain integration" strategy to build competitive barriers, with a nationwide offline presence and an online reach through e-commerce and live streaming [7] - The company utilizes a digital central system to optimize inventory dynamically and collaborates with platforms like JD.com and Meituan to expand its market advantage [7][9]

Financial Performance - Total revenue for 2024 reached RMB 18,016,358 thousand, an increase of 5.06% compared to RMB 17,145,992 thousand in 2023[12] - Gross profit for 2024 was RMB 670,911 thousand, down 14.14% from RMB 781,351 thousand in 2023[12] - The company reported a net loss of RMB 1,406,214 thousand for 2024, worsening from a loss of RMB 666,025 thousand in 2023[12] - Operating cash flow for 2024 was a net outflow of RMB 132,368 thousand, compared to an inflow of RMB 57,523 thousand in 2023[12] - The company's gross profit for the year ended December 31, 2024, was RMB 670,911 thousand, a decrease of RMB 110,440 thousand or 14.13% from RMB 781,351 thousand in the previous year, with a gross margin decline from 4.56% to 3.72%[27] - Net loss for the year was RMB 1,406,214 thousand, an increase of RMB 740,189 thousand or 111.14% compared to the previous year[20] - Other income and gains for the year ended December 31, 2024, were RMB 132,805 thousand, a decrease of RMB 2,148 thousand or 1.59% from RMB 134,953 thousand in the previous year[28] Assets and Liabilities - Total assets increased to RMB 10,395,975 thousand in 2024, up from RMB 8,332,188 thousand in 2023, representing a growth of 24.83%[12] - Non-current assets decreased to RMB 334,451 thousand in 2024 from RMB 346,721 thousand in 2023, a decline of 3.68%[12] - Cash and cash equivalents at the end of 2024 were RMB 3,309,731 thousand, significantly up from RMB 717,266 thousand at the end of 2023, marking an increase of 360.51%[12] - Trade receivables and notes receivable decreased to RMB 1,510,741 thousand on December 31, 2024, down RMB 532,311 thousand or 26.05% from RMB 2,043,052 thousand on December 31, 2023[36] - Inventory increased by RMB 55,042 thousand or 16.60%, reaching RMB 386,526 thousand on December 31, 2024, mainly due to an increase in the number of stores[43] - Trade payables and notes payable rose to RMB 927,001 thousand on December 31, 2024, an increase of RMB 513,934 thousand or 124.42% from RMB 413,067 thousand on December 31, 2023, attributed to expanded business scale and increased procurement[44] - Current liabilities net position improved to RMB 65,938 thousand on December 31, 2024, compared to RMB 131,748 thousand on December 31, 2023, mainly due to increased cash and cash equivalents and reduced interest-bearing bank loans[46] Business Expansion and Strategy - The company expanded its photovoltaic supply chain business, successfully entering multiple provinces including Hubei and Jiangsu[8] - The exploration and transformation of the new energy business have shown initial results, indicating a strategic shift towards diversification[8] - The company is actively seeking new channels and opportunities to mitigate external pressures and achieve growth[15] - The company aims to enhance its governance structure to adapt to the evolving retail environment and strengthen its market competitiveness[8] - The company plans to leverage the national subsidy policy starting January 20, 2025, to enhance market competitiveness[18] - The company aims to expand its photovoltaic agency and supply chain business, contributing significantly to operational efficiency[16] - The company will implement a differentiated channel strategy in response to market changes and manufacturer strategies[19] Cost Management and Financial Health - The company reported a significant increase in financial asset impairment losses, impacting net loss figures[20] - Total sales and distribution expenses increased to RMB 411,209 thousand, up RMB 15,604 thousand or 3.94% from RMB 395,605 thousand in the previous year[29] - Administrative expenses decreased to RMB 184,919 thousand, down RMB 20,080 thousand or 9.80% from RMB 204,999 thousand in the previous year, mainly due to reduced intermediary fees and system service costs[30] - The company's financial costs for the year ended December 31, 2024, were RMB 173,908 thousand, a decrease of RMB 5,919 thousand or 3.29% from RMB 179,827 thousand in the previous year[33] - Income tax expenses for the year ended December 31, 2024, were RMB 2,031 thousand, a decrease from RMB 4,945 thousand in the previous year, primarily due to the utilization of tax losses carried forward by certain profitable subsidiaries[34] Employee and Management Information - The company employed 2,733 employees as of December 31, 2024, compared to 2,689 employees in 2023, with total compensation and employee benefits expenses approximately RMB 305,531,000[50] - The remuneration policy for directors and senior management is based on the group's operating performance and market practices[111] - There were no significant changes in the information of directors, supervisors, and senior management during the reporting period[114] - The company has established a remuneration and assessment committee to formulate the remuneration policy for directors and senior management[111] Shareholder and Dividend Information - The board of directors has approved a dividend payout of 0.05 per share, reflecting a commitment to returning value to shareholders[69] - The board does not recommend the payment of any final dividend for the fiscal year ending December 31, 2024[92] - The company's dividend policy has been reviewed and deemed effective by the board of directors[95] - The board will review the dividend policy based on factors such as operating performance, cash flow, and financial condition[97] Joint Ventures and Partnerships - The company established a joint venture with Zhuhai Huashi Zhiyuan Investment Co., Ltd., named Zhuhai Dixin Communication Green Technology Co., Ltd., with a registered capital of RMB 3 billion, where the company holds 51% and Huashi Zhiyuan holds 49%[133] - The joint venture aims to explore business opportunities in new energy, information technology, and modern agriculture sectors in China[133] - The joint venture's establishment was approved by independent shareholders at an extraordinary general meeting held on December 13, 2024[138] - The company entered into a framework agreement for event planning services with Zhuhai Huafa on September 25, 2023, which includes various event management services[139] Framework Agreements and Transactions - The company has established a framework agreement for the purchase and sale of photovoltaic equipment and components with Beijing Shangfang, with a proposed sales receivable cap of RMB 3 billion for the period from May 22, 2024, to December 31, 2024[189] - The actual transaction amount under the second framework agreement is approximately RMB 740 million, which does not exceed the relevant cap for the specified period[189] - The company has established a framework agreement for customer expansion services with Zhuhai Huafa, with an annual cap of RMB 120 million for each year from 2024 to 2026[170] - The actual transaction amount for customer expansion services during the reporting period was approximately RMB 67 million, also within the annual cap[171] Market Presence and Future Outlook - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by the end of 2024[69] - Research and development investments increased by 25%, focusing on innovative technologies to enhance product offerings[69] - The company is exploring strategic acquisitions to bolster its market position, with a budget of 500 million allocated for potential deals[69] - The company plans to deepen its core retail business and enhance online and offline collaboration to improve operational efficiency and profitability in 2025[54]

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 18,016,358 thousand, an increase of 5.08% compared to RMB 17,145,992 thousand for the year ended December 31, 2023[3]. - The net loss attributable to the company's shareholders was RMB 1,374,142 thousand, representing an increase of 118.10% from RMB 630,045 thousand in the previous year[3]. - Basic loss per share was RMB 1.55, compared to RMB 0.84 for the year ended December 31, 2023[3]. - The group reported a net loss before tax of RMB 1,404,183 for the year ended December 31, 2024, compared to a loss of RMB 661,080 in 2023[17]. - The net loss for the year ended December 31, 2024, was RMB 1,406,214 thousand, an increase of RMB 740,189 thousand or 111.14% compared to a net loss of RMB 666,025 thousand for the year ended December 31, 2023[38]. - The company's gross profit for the year ended December 31, 2024, was RMB 670,911 thousand, a decrease of RMB 110,440 thousand or 14.13% from RMB 781,351 thousand for the year ended December 31, 2023[43]. - The overall gross margin decreased from 4.56% for the year ended December 31, 2023, to 3.72% for the year ended December 31, 2024, due to increased market competition[43]. Assets and Liabilities - The total assets less current liabilities amounted to RMB 268,513 thousand, an increase from RMB 214,973 thousand in the previous year[8]. - Current assets totaled RMB 10,061,524 thousand, up from RMB 7,985,467 thousand in 2023[7]. - The company's cash and cash equivalents increased significantly to RMB 3,309,731 thousand from RMB 717,266 thousand in the previous year[7]. - The company's inventory rose to RMB 386,526 thousand, compared to RMB 331,484 thousand in 2023[7]. - Non-current liabilities totaled RMB 177,255 thousand, slightly up from RMB 170,993 thousand in the previous year[8]. - The company's net assets increased to RMB 91,258 thousand from RMB 43,980 thousand in 2023[8]. - As of December 31, 2024, the group's current liabilities net amount is RMB 65,938,000, a decrease from RMB 131,748,000 in 2023[11]. - Trade receivables decreased to RMB 2,732,370 thousand in 2024 from RMB 2,824,061 thousand in 2023, while the net value of trade receivables was RMB 1,510,741 thousand[22]. - The total amount of trade receivables as of December 31, 2024, was RMB 2,732,370 thousand, a decrease of RMB 91,691 thousand or 3.25% from RMB 2,824,061 thousand as of December 31, 2023[54]. - The total value of trade payables as of December 31, 2024, was RMB 927,001 thousand, compared to RMB 413,067 thousand as of December 31, 2023[36]. - Trade payables and notes payable as of December 31, 2024, amounted to RMB 927,001 thousand, an increase of RMB 513,934 thousand or 124.42% from RMB 413,067 thousand on December 31, 2023, driven by expanded business scale and increased procurement[61]. - Other payables and accrued expenses decreased to RMB 470,484 thousand as of December 31, 2024, down by RMB 180,745 thousand or 27.75% from RMB 651,229 thousand on December 31, 2023, mainly due to a reduction in other payables with certain customers and suppliers[62]. Impairment and Credit Losses - The impairment loss for trade receivables increased to RMB 1,225,249 thousand in 2024 from RMB 822,480 thousand in 2023[25]. - The expected credit loss rate for unsecured trade receivables was 50.1% as of December 31, 2024, with total expected credit losses amounting to RMB 1,036,453 thousand[29]. - Other receivables decreased to RMB 1,267,245 thousand in 2024 from RMB 1,663,882 thousand in 2023, with an impairment provision of RMB 835,888 thousand at year-end[30]. - The company recognized impairment losses of approximately RMB 668,000 thousand for other receivables from third-party franchisees, suppliers, and customers[31]. - The company reported a significant increase in impairment losses for secured other receivables, with provisions rising to RMB 265,000 thousand in 2024 from RMB 186,000 thousand in 2023[27]. - The impairment loss provision for secured receivables was RMB 454 million for the year, compared to RMB 278 million in the previous year, reflecting a significant increase in potential credit losses[58]. Dividends and Governance - The company did not recommend the payment of a final dividend for the year ended December 31, 2024[4]. - No final dividend is recommended for the fiscal year ending December 31, 2024[81]. - Dixin has adopted the corporate governance code as per the Hong Kong Stock Exchange and has complied with most of its best practice recommendations during the fiscal year[82]. - The company is committed to continuously improving its corporate governance practices to ensure compliance with the governance code[82]. - The audit committee reviewed the accounting principles and practices adopted by the group and approved the annual performance announcement for the fiscal year ending December 31, 2024[85]. - The audited annual performance announcement and the 2024 annual report will be published on the respective websites of the Hong Kong Stock Exchange and the company[86]. - The board of directors is led by Chairwoman Xu Jili, who also serves as the CEO, a dual role deemed beneficial for operational efficiency[82]. Future Plans and Strategies - For 2025, the company aims to deepen its core 3C business and enhance operational efficiency through channel collaboration and online-offline integration, focusing on expanding its market presence and improving profitability[77]. - Dixin's strategy focuses on mobile phones while expanding into IoT categories such as PCs and smart home appliances, aiming to enhance user engagement and explore new growth points[78]. - By 2025, Dixin plans to scale its residential photovoltaic business and enter the commercial photovoltaic market, leveraging partnerships to optimize project operations and increase profitability[79]. - The company aims to reduce costs and improve efficiency through inventory management and financial integration, enhancing resource allocation and operational effectiveness by 2025[80].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 9,535,821 thousand, an increase of 4.2% compared to RMB 9,149,602 thousand for the same period in 2023[7] - Gross profit decreased to RMB 334,270 thousand, down 4.9% from RMB 348,145 thousand year-on-year[7] - The net loss for the period was RMB (29,077) thousand, an improvement from a loss of RMB (32,911) thousand in the previous year[7] - Revenue for the first half of 2024 was RMB 9,535,821 thousand, up RMB 386,219 thousand or 4.22% from RMB 9,149,602 thousand in the same period of 2023[12] - The net loss attributable to the company's shareholders for the six months ended June 30, 2024, was RMB 29,267 thousand, an increase of RMB 2,831 thousand or 10.71% compared to RMB 26,436 thousand in the same period of 2023[11] - Revenue from mobile communication devices and accessories sales was RMB 9,168,948 thousand, an increase of RMB 389,147 thousand or 4.43% compared to RMB 8,779,801 thousand in the same period of 2023[13] - Revenue from services provided to mobile operators decreased to RMB 111,578 thousand, down RMB 15,047 thousand or 11.88% from RMB 126,625 thousand in the same period of 2023[13] - Other income and gains increased to RMB 29,125 thousand, up RMB 5,356 thousand or 22.53% from RMB 23,769 thousand in the same period of 2023[16] - The company's total sales and distribution expenses for the six months ended June 30, 2024, were RMB 194,333 thousand, a decrease of RMB 12,344 thousand or 5.97% compared to RMB 206,677 thousand in the same period of 2023[17] Assets and Liabilities - Total assets increased to RMB 9,300,426 thousand as of June 30, 2024, compared to RMB 8,332,188 thousand at the end of 2023[8] - Current liabilities rose to RMB 9,087,703 thousand, up from RMB 8,117,215 thousand at the end of 2023[8] - The current ratio as of June 30, 2024, was 0.99, an increase of 1.02% from 0.98 as of December 31, 2023[24] - The net debt to equity ratio increased significantly to 43,547.30% as of June 30, 2024, from 7,386.03% as of December 31, 2023, reflecting a change of 489.59%[24] - The debt-to-equity ratio increased to 99.86% as of June 30, 2024, up 0.57% from 99.30% on December 31, 2023, primarily due to increased bank loans[25] - The total equity attributable to equity holders of the parent company decreased to RMB 36,653 thousand from RMB 70,612 thousand, a decline of 48.0%[58] - Non-current liabilities increased to RMB 202,510 thousand as of June 30, 2024, compared to RMB 170,993 thousand at the end of 2023, reflecting a rise of 18.4%[58] Cash Flow and Financing - Cash flow from operating activities showed a net outflow of RMB (89,395) thousand, an improvement from RMB (277,188) thousand in the same period last year[8] - The company’s financing activities resulted in a net cash outflow of RMB (422,428) thousand for the six months ended June 30, 2024, compared to a net inflow of RMB 911,827 thousand in the same period of 2023[64] - The company’s cash and cash equivalents decreased by RMB (483,083) thousand, ending at RMB 234,183 thousand as of June 30, 2024, compared to RMB 214,418 thousand at the end of the same period in 2023[64] - The company reported a financial cost of RMB 76,479 thousand for the six months ended June 30, 2024, an increase from RMB 68,774 thousand in the same period of 2023[63] - The company’s investment activities generated a net cash inflow of RMB 28,740 thousand for the six months ended June 30, 2024, a significant recovery from a net outflow of RMB (644,682) thousand in the same period of 2023[64] Shareholder Information - The board does not recommend any interim dividend for the six months ended June 30, 2024[37] - As of June 30, 2024, Liu Donghai holds 168,362,098 domestic shares, representing 49.86% of the domestic share capital and 18.99% of the total share capital[38] - Major shareholders include Liu Yongmei, Liu Hua, Liu Wenli, Liu Wencui, and Liu Songshan, each holding 168,362,098 shares (49.86%) in the company[41] - The total number of issued shares as of June 30, 2024, is 886,460,400, including 337,700,000 domestic shares and 548,760,400 H-shares[39] - Huafa Technology Industry Group holds 169,337,902 shares (50.14%) in the company, representing a significant stake[42] Operational Strategy - The company is actively pursuing a "new retail" strategy and expanding its product offerings, including the development of renewable energy business in various provinces[4] - The company aims to strengthen its market competitiveness and brand influence through diversified sales channels and services[4] - The company plans to expand its offline retail presence while enhancing online growth, focusing on quality store openings in first to third-tier cities[34] - The company aims to deepen its participation in the photovoltaic industry chain and adjust its new business strategies, including a potential reduction in automotive retail and export operations[35] Employee Information - The total number of employees as of June 30, 2024, is 2,478, a decrease from 2,521 on June 30, 2023[33] - The salary and employee benefits expenses for the six months ending June 30, 2024, were approximately RMB 150,521,000, compared to RMB 152,965,000 for the same period in 2023[33] Compliance and Governance - The company has adopted the Corporate Governance Code and has complied with most of its recommended best practices during the reporting period[49] - The Audit Committee, consisting of two independent non-executive directors and one non-executive director, reviewed the unaudited interim results for the six months ending June 30, 2024[52] - There have been no arrangements allowing directors or supervisors to benefit from purchasing shares or debt securities of the company during the six months ending June 30, 2024[48]

Impairment Losses - The company recognized impairment losses on other receivables amounting to approximately RMB 263,481,000 for the year ended December 31, 2023, which includes RMB 253,564,000 for receivables from third-party franchisees, suppliers, and customers [2]. - The impairment loss provision for secured other receivables was RMB 186,127,000 as of December 31, 2023, based on the expected credit loss model under IFRS 9 [4]. - The impairment loss provision for unsecured other receivables was RMB 339,448,000 as of December 31, 2023, reflecting a significant increase from RMB 272,011,000 as of December 31, 2022 [5][7]. - The total expected credit loss for third-party other receivables increased from RMB 272,011,000 to RMB 525,575,000 from December 31, 2022, to December 31, 2023 [7]. - The total book value of deposits as of December 31, 2023, was RMB 84,114,000, with an impairment loss provision of RMB 9,917,000 recognized [7]. Credit Loss Assessment - The company applied a simplified approach for impairment assessment of other receivables, using the lifetime expected loss model [2]. - The expected credit loss rate for receivables over two years old was adjusted to 27.98% due to guarantees provided by the former controlling shareholder [5]. - The expected credit loss rates for different aging categories were 11.33% for within one year, 45.96% for one to two years, and 27.98% for over two years [6]. - The company continues to evaluate the recoverability of its receivables and deposits, adjusting provisions as necessary based on current and future economic conditions [5]. Receivables Overview - The company’s total receivables from third parties amounted to RMB 1,663,882,000 as of December 31, 2023 [6].

Financial Performance - The company's revenue for the six months ended June 30, 2024, was RMB 9,535,821 thousand, an increase of 4.22% compared to RMB 9,149,602 thousand for the same period last year[2] - The net loss attributable to the company's shareholders for the period was RMB 29,267 thousand, representing an increase of 10.71% from RMB 26,436 thousand in the previous year[2] - Basic loss per share was RMB 0.03, a decrease of RMB 0.01 from RMB 0.04 in the same period last year[3] - Gross profit for the six months was RMB 334,270 thousand, down from RMB 348,145 thousand in the previous year[3] - The company reported a total comprehensive loss of RMB 33,767 thousand for the period, compared to RMB 35,048 thousand in the previous year[4] - Revenue for the six months ended June 30, 2024, reached RMB 9,535,821 thousand, an increase from RMB 9,149,602 thousand for the same period in 2023, representing a growth of approximately 4.2%[13] - Sales of mobile communication devices and accessories amounted to RMB 9,168,948 thousand, up from RMB 8,779,801 thousand, indicating a growth of about 4.4%[13] - Retail sales of mobile communication devices and accessories increased to RMB 2,422,652 thousand from RMB 1,788,547 thousand, reflecting a significant growth of approximately 35.4%[13] - The cost of goods sold and services provided for the six months ended June 30, 2024, was RMB 9,201,551 thousand, compared to RMB 8,801,457 thousand for the same period in 2023[16] - Other income for the six months ended June 30, 2024, totaled RMB 29,125 thousand, compared to RMB 23,769 thousand in the same period of 2023, marking an increase of about 22.4%[15] Assets and Liabilities - Total current assets increased to RMB 8,968,037 thousand from RMB 7,985,467 thousand as of December 31, 2023[5] - Total current liabilities rose to RMB 9,087,703 thousand from RMB 8,117,215 thousand as of December 31, 2023[6] - The company's cash and cash equivalents decreased to RMB 234,183 thousand from RMB 717,266 thousand as of December 31, 2023[5] - Trade receivables amounted to RMB 2,956,164 thousand as of June 30, 2024, compared to RMB 2,824,061 thousand as of December 31, 2023, reflecting an increase of RMB 132,103 thousand[18] - The aging analysis of trade receivables shows that RMB 1,401,218 thousand was overdue by more than 180 days as of June 30, 2024, compared to RMB 1,169,310 thousand as of December 31, 2023[20] - Trade payables increased to RMB 613,267 thousand as of June 30, 2024, from RMB 413,067 thousand as of December 31, 2023[20] Corporate Governance and Compliance - The company has adopted new and revised International Financial Reporting Standards effective January 1, 2023, which are expected to impact the annual consolidated financial statements[10] - The company has applied the revised International Accounting Standards regarding deferred tax assets and liabilities related to single transactions, which did not have a significant impact on its financial statements[11] - The company has not been affected by the OECD's Pillar Two rules, as it does not fall within the scope of these regulations[11] - The company has no major customers contributing over 10% of total revenue during the reporting period, indicating a diversified customer base[12] - The company has adhered to the corporate governance code and standards for securities trading during the reporting period[49] - The audit committee has been established, consisting of two independent non-executive directors and one non-executive director[51] - The executive directors include three members, while the non-executive and independent non-executive directors are also listed[53] Operational Highlights - The company aims to continue its moderate expansion strategy in offline retail, focusing on high-quality locations in first to third-tier cities while improving the success and survival rates of new stores[45] - The company plans to enhance its participation in the photovoltaic industry chain, moving from channel agency to supply chain trade and power station ownership, aiming to create a second growth curve[46] - The company has successfully doubled its recycling business in the first half of the year and aims to achieve further growth with the launch of a new competitive recycling platform[46] - The company is committed to cost reduction and efficiency improvement, aiming for stable progress while enhancing gross profit and business revenue[46] Employee and Financial Information - As of June 30, 2024, the group had a total of 2,478 employees, a decrease from 2,521 employees as of June 30, 2023[44] - The salary and employee benefits expenses for the six months ended June 30, 2024, were approximately RMB 150,521 thousand, compared to RMB 152,965 thousand for the same period in 2023, reflecting a decrease of about 1%[44] - The total amount raised from the subscription of H shares was approximately HKD 261.80 million, with a net amount of approximately HKD 260.75 million after expenses, intended for general operating funds[47] - The company did not recommend the payment of an interim dividend for the reporting period[20] - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2024[50] Financial Ratios and Performance Metrics - The current ratio as of June 30, 2024, was 0.99, an increase of 1.02% from 0.98 as of December 31, 2023[36] - Total sales and distribution expenses for the six months ended June 30, 2024, was RMB 194,333 thousand, a decrease of RMB 12,344 thousand or 5.97% compared to RMB 206,677 thousand for the same period in 2023[28] - Total administrative expenses for the six months ended June 30, 2024, was RMB 96,217 thousand, a decrease of RMB 2,643 thousand or 2.67% compared to RMB 98,860 thousand for the same period in 2023[29] - Total financial costs for the six months ended June 30, 2024, was RMB 76,479 thousand, an increase of RMB 7,705 thousand or 11.20% compared to RMB 68,774 thousand for the same period in 2023[30]

Financial Performance - The company achieved a net cash flow from operating activities of RMB 1,953,808 thousand, a decrease of RMB 9,783 thousand or 0.50% compared to RMB 1,963,591 thousand in the previous year[9]. - For the fiscal year ending December 31, 2023, the company's cost of sales was RMB 16,364,641 thousand, an increase of RMB 3,494,536 thousand or 27.15% compared to RMB 12,870,105 thousand for the fiscal year ending December 31, 2022[54]. - The company's gross profit for the fiscal year ending December 31, 2023, was RMB 781,351 thousand, up RMB 143,919 thousand or 22.58% from RMB 637,432 thousand for the fiscal year ending December 31, 2022, with a gross margin of 4.56% compared to 4.72% in the previous year[55]. - Other income and gains for the fiscal year ending December 31, 2023, amounted to RMB 134,953 thousand, an increase of RMB 89,695 thousand or 198.19% from RMB 45,258 thousand for the fiscal year ending December 31, 2022[56]. - Selling and distribution expenses totaled RMB 395,605 thousand for the fiscal year ending December 31, 2023, a decrease of RMB 22,460 thousand or 5.37% from RMB 418,065 thousand for the fiscal year ending December 31, 2022[57]. - Administrative expenses for the fiscal year ending December 31, 2023, were RMB 204,999 thousand, an increase of RMB 603 thousand or 0.30% from RMB 204,396 thousand for the fiscal year ending December 31, 2022[59]. - Financial asset impairment losses for the fiscal year ending December 31, 2023, were approximately RMB 709,312 thousand, an increase of RMB 600,399 thousand or 551.26% from RMB 108,913 thousand for the fiscal year ending December 31, 2022[60]. - Other expenses increased to RMB 79,327 thousand for the fiscal year ending December 31, 2023, from RMB 29,724 thousand for the fiscal year ending December 31, 2022, representing an increase of RMB 49,603 thousand or 166.88%[62]. - Financial costs for the fiscal year ending December 31, 2023, totaled RMB 179,827 thousand, an increase of RMB 2,037 thousand or 1.15% from RMB 177,790 thousand for the fiscal year ending December 31, 2022[63]. - The group recorded RMB 68,378 thousand in revenue from automobile sales for the year ended December 31, 2023, compared to no revenue in the previous year[85]. - The group's revenue for the year ended December 31, 2023, was RMB 17,145,992 thousand, an increase of RMB 3,638,455 thousand or 26.94% from RMB 13,507,537 thousand in the previous year[81]. - The net loss for the year ended December 31, 2023, was RMB 666,025 thousand, an increase of RMB 386,880 thousand or 138.59% compared to a net loss of RMB 279,145 thousand in the previous year, primarily due to increased impairment losses on financial assets[81]. Assets and Liabilities - As of December 31, 2023, the company's inventory increased to RMB 331,484 thousand, reflecting a growth of RMB 55,597 thousand or 20.15% from RMB 275,887 thousand in 2022, primarily due to increased stock for new energy vehicle businesses[13]. - The company's net current liabilities amounted to RMB 131,748 thousand as of December 31, 2023, compared to net current assets of RMB 233,790 thousand on December 31, 2022, driven by a decrease in trade receivables and an increase in short-term borrowings[16]. - The company reported a decrease in other receivables to RMB 1,663,882 thousand, down RMB 63,477 thousand or 3.67% from RMB 1,727,359 thousand in the previous year[10]. - As of December 31, 2023, trade receivables and notes receivable, net of impairment, amounted to RMB 2,043,052 thousand, a decrease of RMB 277,602 thousand or 11.96% from RMB 2,320,654 thousand as of December 31, 2022[74]. - The gross amount of trade receivables before impairment increased to RMB 2,824,061 thousand, an increase of RMB 101,037 thousand or 3.71% from RMB 2,723,024 thousand in the previous year[74]. - The amount of notes receivable before impairment increased significantly to RMB 41,471 thousand, an increase of RMB 41,408 thousand or 65,726.98% from RMB 63 thousand in the previous year, mainly due to business expansion[75]. - The company reported a significant increase in secured loans, with RMB 1,670,000 due within one year, compared to RMB 1,102,805 in the previous year[40]. - The company has no other restricted assets apart from RMB 1,797,640,000 in pledged deposits and RMB 443,377,000 in financial assets measured at fair value[44]. Strategic Initiatives - The company has established a framework agreement to supply photovoltaic equipment to Beijing Shangfang, with a sales receivable cap of RMB 700 million from February 6, 2024, to May 31, 2024[21]. - A second framework agreement for photovoltaic equipment supply to Beijing Shangfang has been set with a sales receivable cap of RMB 3,000 million, effective from the date of independent shareholder approval until December 31, 2024[22]. - The company has strengthened its supply chain collaboration with core 3C brands to maximize market growth benefits while maintaining comprehensive cooperation with other brands[5]. - The company has made significant progress in new business areas, including the expansion of household photovoltaic business in multiple provinces and the scaling of automobile export revenue in Xinjiang[4]. - The company plans to enhance both online and offline retail strategies, focusing on expanding into high-quality operator stores and optimizing the existing store structure, aiming for a higher proportion of profitable stores[28]. - In 2024, the company will focus on the mobile phone aftermarket and government enterprise business, aiming for significant revenue and profit growth through flagship model collaborations and second-hand mobile phone services[29]. - The company aims to leverage its national service and funding advantages to expand its government enterprise business, focusing on DICT, security terminals, and innovative projects[29]. - The company plans to fully leverage its channel advantages to expand sales services for more customers in the future[85]. Governance and Compliance - The company has conducted five board meetings and four shareholder meetings during the reporting period, ensuring active governance and decision-making processes[6]. - The board of directors has reviewed the company's dividend policy and considers it effective[107]. - The board of directors does not recommend the payment of a final dividend for the fiscal year ending December 31, 2023[125]. - The company plans to review its dividend policy based on factors such as operating performance, cash flow, financial condition, and capital requirements[129]. - The company has established a remuneration and assessment committee to formulate remuneration policies based on the group's operating performance and market practices[159]. - The board of directors confirmed the independence of all independent non-executive directors for the year ended December 31, 2023[156]. - There were no significant transactions or arrangements involving directors or supervisors with the group during the reporting period[158]. - The company has no arrangements that would allow directors or supervisors to benefit from purchasing shares or debt securities of the company or any other corporate entity[166]. - The company has received annual confirmation letters regarding compliance with non-competition commitments from the relevant parties[198]. Shareholding Structure - As of December 31, 2023, the total number of issued shares is 886,460,400, including 337,700,000 domestic shares and 548,760,400 H shares[189]. - Liu family collectively holds 168,362,098 domestic shares, representing 18.99% of the total share capital[189]. - The shareholding of the Liu family in Huafa Technology Industry Group amounts to 169,337,902 domestic shares, accounting for 19.10% of the total share capital[189]. - CITIC International Assets Management Limited holds 77,000,000 H shares, representing 14.03% of the relevant class of share capital[190]. - Huafa Technology Industry Group holds 337,700,000 domestic shares, which is 100% of the relevant class of share capital[186]. - Unicorn Link Group Limited owns 77,000,000 H shares, accounting for 14.03% of the relevant class of share capital[188]. - Dawn Galaxy International Limited holds 42,000,000 H shares, representing 7.65% of the relevant class of share capital[188]. - The total percentage of shares held by major shareholders in the company is significant, with some individuals holding over 50% of specific classes of shares[186]. - The company has established a concert party agreement with Huafa Technology Industry Group, impacting the shareholding structure[189]. Cash Flow and Financing - The net cash generated from operating activities for the year ended December 31, 2023, was RMB 57,523 thousand, mainly due to a turnaround from a loss to profit before non-cash items[170]. - The net cash used in investing activities for the year ended December 31, 2023, was RMB 178,322 thousand, primarily due to the redemption of bank financial products and the disposal of investments in associates[171]. - The net cash generated from financing activities for the year ended December 31, 2023, was RMB 613,932 thousand, mainly due to new bank loans and loans from related parties[173]. - The company operates in a capital-intensive industry, primarily funding its operational capital, capital expenditures, and other funding needs through operating income and bank borrowings[169]. Risks and Challenges - The company faces risks related to lease properties, including the potential inability to renew leases or facing higher rental costs, which could impact overall business performance[120]. - The company is focusing on maintaining long-term relationships with property owners to mitigate rental risks[102]. - The company has a strategy to find suitable replacement properties in key business districts to avoid disruptions in operations due to lease issues[102]. Related Party Transactions - The company has established a financial services framework agreement with Huafa Financial Company, which is part of its broader strategy for operational efficiency[199]. - The company is committed to fair and reasonable terms in its ongoing related party transactions, ensuring overall benefits for the company and its shareholders[199].