Financial Performance - The company's revenue for the year ended December 31, 2023, was RMB 17,145,992 thousand, an increase of 26.94% compared to RMB 13,507,537 thousand for the year ended December 31, 2022[12]. - The net loss attributable to the company's shareholders for the year ended December 31, 2023, was RMB 630,045 thousand, an increase of 128.63% from RMB 275,579 thousand for the year ended December 31, 2022[12]. - Basic loss per share for the year was RMB 0.84, compared to RMB 0.38 for the year ended December 31, 2022[12]. - The company reported a gross profit of RMB 781,351 thousand for the year ended December 31, 2023, compared to RMB 637,432 thousand in 2022[14]. - The company reported a pre-tax loss of RMB (661,080) thousand for the year ended December 31, 2023, compared to a loss of RMB (260,477) thousand in 2022[31]. - The company reported a net loss of RMB 666,025 thousand for the year ended December 31, 2023, which is an increase of 138.59% compared to a net loss of RMB 279,145 thousand for the year ended December 31, 2022[104]. - The company achieved a profit of RMB 43,287 thousand when excluding the impact of financial asset impairment losses for the year ended December 31, 2023[104]. Assets and Liabilities - The total assets less current liabilities as of December 31, 2023, were RMB 214,973 thousand, down from RMB 609,120 thousand in 2022[19]. - The company's current liabilities as of December 31, 2023, totaled RMB 8,117,215 thousand, compared to RMB 6,455,371 thousand in 2022[18]. - The total equity attributable to the owners of the parent company decreased to RMB 43,980 thousand from RMB 437,913 thousand in 2022[36]. - The company’s net current liabilities amounted to RMB (131,748) thousand as of December 31, 2023, compared to RMB 233,790 thousand in the previous year[36]. - The current ratio as of December 31, 2023, was 0.98, a decrease of 0.06 or 5.77% from 1.04 as of December 31, 2022, mainly due to an increase in current liabilities[120]. - The debt-to-asset ratio as of December 31, 2023, was 99.30%, an increase of 7.01 percentage points or 7.60% from 92.29% as of December 31, 2022, primarily due to an increase in current liabilities[121]. - The net debt-to-equity ratio surged to 7,386.03% as of December 31, 2023, compared to 565.97% in 2022, an increase of 1,205.02%[139]. Revenue Sources - Revenue from mobile communication devices and accessories sales reached RMB 16,356,788 thousand, up from RMB 12,923,373 thousand in the previous year, indicating a growth of about 26.8%[45]. - Retail sales contributed RMB 4,370,684 thousand, compared to RMB 3,529,268 thousand in 2022, reflecting an increase of approximately 23.9%[45]. - The company’s total revenue from domestic operations in China was RMB 17,010,227 thousand, up from RMB 13,102,348 thousand in 2022, marking an increase of approximately 29.0%[45]. - The company recorded other income and gains of RMB 134,953 thousand, an increase of RMB 89,695 thousand or 198.19% compared to RMB 45,258 thousand in the previous year[87]. Expenses and Costs - Financial asset impairment losses for the year were RMB 709,312 thousand, significantly higher than RMB 108,913 thousand in the previous year[14]. - The sales cost for the year ended December 31, 2023, was RMB 16,364,641 thousand, an increase of RMB 3,494,536 thousand or 27.15% from RMB 12,870,105 thousand in the previous year[84]. - The company’s administrative expenses totaled RMB 204,999 thousand, a slight increase of RMB 603 thousand or 0.30% compared to RMB 204,396 thousand in 2022[89]. - The company’s other expenses increased to RMB 79,327 thousand, up RMB 49,603 thousand or 166.88% from RMB 29,724 thousand in the previous year, primarily due to losses from the disposal of subsidiaries[90]. Cash Flow - The net cash generated from operating activities for the year ended December 31, 2023, was RMB 57,523 thousand, reflecting a turnaround from a pre-tax loss after adjustments for non-cash items[71]. - The net cash used in investing activities for the year ended December 31, 2023, was RMB 178,322 thousand, mainly due to the redemption of bank financial products and the disposal of investments in associates[72]. - The net cash generated from financing activities for the year ended December 31, 2023, was RMB 613,932 thousand, primarily due to new bank loans and related party loans, offset by repayments of bank and related party loans[74]. Inventory and Receivables - The company’s inventory as of December 31, 2023, was RMB 331,484 thousand, an increase from RMB 275,887 thousand in 2022[18]. - The company reported a total of RMB 413,067 thousand in receivables as of December 31, 2023, up from RMB 313,051 thousand in 2022, marking an increase of 32.0%[57]. - The company’s trade receivables and notes receivable, net of impairment, amounted to RMB 2,043,052 thousand as of December 31, 2023, a decrease of RMB 277,602 thousand or 11.96% from RMB 2,320,654 thousand as of December 31, 2022[75]. - The expected credit loss rate for accounts receivable was 29.12% as of December 31, 2023, compared to 14.78% as of December 31, 2022[97]. Corporate Governance and Future Plans - The company has adopted the Corporate Governance Code and has complied with most of its applicable provisions during the fiscal year ended December 31, 2023[158]. - The company will continue to review and enhance its corporate governance code to ensure compliance[173]. - The company plans to increase the annual deposit service limit with Zhuhai Huafa Group Financial Co., Ltd. from RMB 120 million to RMB 300 million to support overall fund management and potential business growth[127]. - In 2024, the company aims to enhance revenue and profit scale by focusing on core brand product and marketing operations, while also expanding into the second-hand mobile market and government enterprise business[130]. - The company plans to continue cost reduction and efficiency improvement initiatives, focusing on refined management and enhancing service quality[152]. - The company will enhance its retail strategy by optimizing the structure of comprehensive stores and brand specialty stores while maintaining a high proportion of profitable stores[167].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 9,149,602 thousand, a 47.5% increase from RMB 6,202,947 thousand in the same period of 2022[8]. - Gross profit for the same period was RMB 348,145 thousand, up from RMB 257,245 thousand, reflecting a significant improvement in profitability[8]. - The net loss attributable to equity holders of the parent company narrowed to RMB (26,436) thousand from RMB (167,847) thousand year-on-year, indicating a 84.3% reduction in losses[8]. - The company reported a net cash outflow from operating activities of RMB (277,188) thousand, an improvement from RMB (677,653) thousand in the previous year[10]. - The total comprehensive loss for the period was RMB 28,573,000, compared to a loss of RMB 35,048,000 in the same period last year, showing an improvement of approximately 18.4%[108]. Assets and Liabilities - Total assets as of June 30, 2023, increased to RMB 8,785,830 thousand from RMB 7,064,491 thousand at the end of 2022, representing a growth of 24.4%[10]. - Current liabilities rose to RMB 8,248,282 thousand from RMB 6,455,371 thousand, indicating a 27.8% increase[10]. - Non-current assets were valued at RMB 345,216 thousand, down from RMB 375,330 thousand, reflecting a decrease of 8.0%[10]. - The company’s equity attributable to owners of the parent decreased to RMB 399,992 thousand from RMB 428,565 thousand as of December 31, 2022[129]. - The debt-to-asset ratio increased to 91.00% as of June 30, 2023, up 6.02 percentage points from 84.98% on December 31, 2022, representing a growth of 7.08%[74]. Revenue Streams - Revenue from mobile communication equipment and accessories sales was RMB 8,779,801 thousand, an increase of RMB 2,810,209 thousand or 47.08% from RMB 5,969,592 thousand in the same period of 2022[14]. - Revenue from online and offline sales and marketing services increased by RMB 100,660 thousand or 103.33%, totaling RMB 198,072 thousand compared to RMB 97,412 thousand in the same period of 2022[16]. - The company recorded a decrease in service revenue from mobile operators, amounting to RMB 126,625 thousand, a decline of RMB 9,318 thousand or 6.85% from RMB 135,943 thousand in the same period of 2022[16]. - Total revenue for the six months ended June 30, 2023, reached RMB 9,149,602 thousand, a significant increase of 47.5% compared to RMB 6,202,947 thousand for the same period in 2022[166]. Operational Efficiency - The company continues to focus on expanding its retail operations and enhancing its service offerings to strengthen market competitiveness[2]. - The total sales and distribution expenses for the first half of 2023 were RMB 206,677 thousand, a decrease of RMB 40,759 thousand or 16.47% from RMB 247,436 thousand in the same period of 2022[21]. - The company aims to enhance its online business scale while optimizing its new retail structure in response to the changing e-commerce landscape[59]. - The company plans to enhance core brand partnerships and focus on increasing revenue from mobile peripheral products in response to significant changes in the Chinese mobile market in the second half of 2023[83]. Employee and Governance - The company had a total of 2,521 employees as of June 30, 2023, down from 3,035 employees as of June 30, 2022[32]. - The board of directors has established an audit committee, which currently includes two independent non-executive directors and one non-executive director[122]. - The company has adopted a standard code for securities trading behavior for its directors and supervisors, confirming compliance during the six-month period[120]. - The company continues to review and enhance its corporate governance practices to ensure compliance with the corporate governance code[119]. Cash Flow and Financing - Cash and cash equivalents at the end of the period decreased to RMB 214,418 thousand from RMB 101,275 thousand, showing a decline of 78.8%[10]. - The group reported a total tax credit of RMB 8,401 thousand for the six months ended June 30, 2023, compared to a tax expense of RMB 227 thousand for the same period in 2022[50]. - The group has established multiple loan agreements with banks to fund its business operations and expansion, with these loans primarily used for purchasing mobile communication equipment and accessories[51]. - Total bank and other borrowings amounted to RMB 4,289,059 thousand as of June 30, 2023, an increase of RMB 1,586,476 thousand or 58.70% from RMB 2,702,583 thousand on December 31, 2022[70]. Market Strategy - The group aims to stabilize its offline network and increase single-store output, leveraging government stimulus policies to capture new consumer demand in the home appliance sector in the second half of 2023[45]. - The company is focusing on expanding its automotive import and export business, particularly targeting Central Asia[61]. - The company plans to expand its household photovoltaic business in provinces such as Sichuan and Anhui in the second half of 2023[61]. - The group is actively pursuing strategic partnerships with companies like JD.com and UnionPay to enhance its market presence and capitalize on consumer voucher activities[45].

Revenue Performance - Revenue for the six months ended June 30, 2023, was RMB 9,149,602 thousand, an increase from RMB 6,202,947 thousand in the same period of 2022, representing a growth of approximately 47.5%[1] - Total customer contract revenue for the six months ended June 30, 2023, was RMB 9,149,602 thousand, a 47.5% increase from RMB 6,202,947 thousand in the same period of 2022[17] - Revenue from goods transferred at a point in time reached RMB 8,824,905 thousand, up from RMB 5,969,592 thousand, reflecting a growth of 47.5%[17] - Revenue from services transferred over time increased to RMB 324,697 thousand, compared to RMB 233,355 thousand, marking a growth of 39.1%[17] - Revenue from mobile communication devices and accessories sales reached RMB 8,779,801 thousand, up RMB 2,810,209 thousand or 47.08% from RMB 5,969,592 thousand in the same period of 2022[39] - Revenue from online and offline sales and marketing services totaled RMB 198,072 thousand, an increase of RMB 100,660 thousand or 103.33% from RMB 97,412 thousand in the same period of 2022[44] Profit and Loss - Gross profit for the same period was RMB 348,145 thousand, compared to RMB 257,245 thousand in 2022, indicating a gross margin improvement[1] - The company reported a loss before tax of RMB 41,312 thousand, significantly reduced from a loss of RMB 168,649 thousand in the prior year, reflecting a decrease in losses by approximately 75.5%[1] - The net loss for the period was RMB 32,911 thousand, down from RMB 168,876 thousand in the previous year, showing a substantial improvement in financial performance[1] - The company's loss attributable to equity holders of the parent for the six months ended June 30, 2023, was RMB (26,436) thousand, a significant improvement from RMB (167,847) thousand in the same period of 2022[21] - The basic loss per share for the first half of 2023 was RMB 0.04, a reduction of RMB 0.19 compared to RMB 0.23 in the same period of 2022[42] Assets and Liabilities - Current assets totaled RMB 8,440,614 thousand as of June 30, 2023, compared to RMB 6,689,161 thousand at the end of 2022, marking an increase of approximately 26.2%[3] - The total outstanding loans as of June 30, 2023, amounted to RMB 4,289,059 thousand, compared to RMB 2,702,583 thousand as of December 31, 2022[64] - Current liabilities totaled RMB 8,248,282 thousand as of June 30, 2023, compared to RMB 6,455,371 thousand as of December 31, 2022[71] - Non-current liabilities totaled RMB 134,683 thousand as of June 30, 2023, compared to RMB 171,207 thousand as of December 31, 2022[71] - The company's net current assets were RMB 192,332 thousand, down from RMB 233,790 thousand as of December 31, 2022[71] Trade Receivables and Payables - Trade receivables and notes receivable increased to RMB 2,548,016 thousand from RMB 2,320,654 thousand, reflecting a growth of about 9.8%[3] - Trade receivables as of June 30, 2023, amounted to RMB 2,849,077 thousand, an increase from RMB 2,723,024 thousand as of December 31, 2022[28] - The aging analysis of trade receivables showed that RMB 1,699,141 thousand was overdue by more than 180 days as of June 30, 2023, compared to RMB 1,573,231 thousand at the end of 2022[29] - Trade payables as of June 30, 2023, were RMB 284,246 thousand, down from RMB 313,051 thousand as of December 31, 2022[30] Operational Efficiency and Market Strategy - The company continues to focus on expanding its market presence and enhancing its product offerings in the mobile communications sector[4] - The company plans to expand its household photovoltaic business in provinces such as Sichuan and Anhui in the second half of 2023, following the establishment of its business model in Shanxi[91] - The company aims to enhance its operational efficiency by implementing a new private domain operation system nationwide, focusing on improving online and offline marketing effectiveness[92] - The company plans to leverage government stimulus policies to stabilize its offline network and enhance single-store productivity in the second half of 2023[132] - The company aims to optimize its new retail structure while expanding its online business scale, responding to significant changes in the e-commerce landscape for 3C products in China[133] Corporate Governance and Compliance - The company has maintained compliance with the standards for securities trading as per the listing rules, with all directors and supervisors confirming adherence during the reporting period[100] - The company is committed to reviewing and enhancing its corporate governance practices to ensure compliance with governance codes[99] - The company has not made any significant investments or acquisitions during the six months ended June 30, 2023[113] Employee and Compensation - Employee compensation and benefits for the six months ended June 30, 2023, were approximately RMB 152,965 thousand, down from RMB 164,211 thousand for the same period in 2022, reflecting a reduction in workforce from 3,035 to 2,521 employees[95] Financial Ratios - The net debt-to-equity ratio as of June 30, 2023, was 1,011.42%, an increase of 445.45 percentage points from 565.97% on December 31, 2022, reflecting a rise of 78.71% due to increased bank loans[84] - The current ratio as of June 30, 2023, was 1.02, a slight decrease from 1.04 as of December 31, 2022, showing a change of 0.02 or 1.92%[83] - The company's asset-liability ratio as of June 30, 2023, was 91.00%, an increase of 6.02 percentage points or 7.08% from 84.98% as of December 31, 2022, primarily due to increased bank loans[119]

Financial Performance - Total revenue for 2022 was RMB 13,507.5 million, a significant increase from RMB 10,243.9 million in 2021, representing a year-over-year growth of approximately 32.1%[10] - The company reported a net loss of RMB 279.1 million for the year, compared to a net loss of RMB 3,597.0 million in 2021, indicating a substantial improvement in financial performance[10] - The company's gross profit for the year was RMB 637,432 thousand, an increase of RMB 61,644 thousand or 10.71% from RMB 575,788 thousand in the previous year, with a gross margin of 4.72%[50] - The net loss for 2022 was RMB 279,145 thousand, a decrease of RMB 3,317,840 thousand compared to a net loss of RMB 3,596,985 thousand in the previous year[42] - The company's total revenue for the year ended December 31, 2022, was RMB 13,507,537 thousand, an increase of RMB 3,263,607 thousand or 31.86% compared to RMB 10,243,930 thousand in the previous year[42] Assets and Liabilities - The total assets as of December 31, 2022, were RMB 7,064.5 million, with total liabilities of RMB 6,455.4 million, resulting in a net asset value of RMB 437.9 million[10] - The company's asset-liability ratio increased to 84.98% as of December 31, 2022, up 10.77 percentage points from 74.22% as of December 31, 2021, representing a 14.51% increase[69] - As of December 31, 2022, the accounts receivable (net of impairment) amounted to RMB 2,723,024 thousand, an increase of RMB 414,205 thousand or 13.20% compared to RMB 3,137,229 thousand as of December 31, 2021[62] - The accounts payable and notes payable as of December 31, 2022, were RMB 2,687,737 thousand, up from RMB 2,139,954 thousand as of December 31, 2021[68] Cash Flow and Financing - The company achieved a cash flow from operating activities of RMB (599.5) million, while cash flow from financing activities was RMB 721.4 million, indicating a positive financing environment despite operational challenges[10] - Cash flow from financing activities for the year was RMB 721,443 thousand, primarily due to new bank loans and related party loans[60] - The net cash flow used in operating activities for the year ended December 31, 2022, was RMB 599,489 thousand, primarily due to cash outflows from net losses during the year[75] Sales and Market Strategy - The group's mobile phone sales reached 4,016 thousand units for the year ended December 31, 2022, an increase of 491 thousand units or 13.93% compared to 3,525 thousand units for the year ended December 31, 2021[15] - The company plans to leverage its experience in e-commerce to enhance its logistics capabilities and improve service quality, aiming for higher market share in the 3C product category[11] - The company is focusing on expanding its presence in video e-commerce and short video platforms to capture a larger share of the 3C market, which is expected to drive future growth[11] - The company plans to expand its product categories, services, business models, and partnerships in 2023 to enhance operational quality and results[27] Operational Efficiency - The company optimized its store network layout, resulting in a decrease in the number of stores but a significant improvement in overall store profitability[43] - Other expenses decreased significantly to RMB 10,745 thousand, down RMB 602,114 thousand or 98.25% from RMB 612,859 thousand in the previous year, due to improved management processes[56] - The total financial costs for the year were RMB 177,790 thousand, a decrease of RMB 56,380 thousand or 24.08% from RMB 234,170 thousand in the previous year[57] Future Outlook and Plans - In 2023, the company anticipates a recovery in demand as domestic pandemic controls ease, aiming to achieve all business objectives by focusing on core mobile phone operations and exploring surrounding business opportunities[118] - The company plans to strengthen partnerships with major brands such as Apple, Huawei, and Xiaomi, and enhance supply chain channels to secure optimal policies from manufacturers[118] - The company aims to develop higher-margin service opportunities in accessories, insurance, and recycling, creating a three-dimensional business model encompassing online, offline, and overseas expansion[118] Governance and Compliance - The company's supervisory board consists of three members, including one employee representative, with a term of three years[140] - The supervisory board is responsible for reviewing and verifying the financial reports and business reports prepared by the board of directors[140] - The company is currently assessing the impact of the amendments to International Accounting Standards, with an expectation that these revisions will not have a significant effect on the financial statements[130] Customer and Market Engagement - The company has accumulated extensive customer data, including demographics and purchasing preferences, which enhances its ability to recommend customers to partners effectively[143] - The company aims to leverage its existing resources and customer base to create new revenue streams through collaboration with Zhuhai Huafa Group[142] - The company has successfully utilized its customer base to generate referral service fees from telecommunications partners, indicating a strong market position[143]

Financial Performance - The company's revenue for the year ended December 31, 2022, was RMB 13,507,537 thousand, an increase of 31.86% compared to RMB 10,243,930 thousand for the year ended December 31, 2021[10]. - The net loss attributable to the company's shareholders was RMB 275,579 thousand, a decrease of 92.28% from RMB 3,567,438 thousand for the year ended December 31, 2021[10]. - Basic loss per share for the year was RMB 0.38, compared to RMB 4.87 for the year ended December 31, 2021[10]. - Gross profit for the year was RMB 637,432 thousand, compared to RMB 575,788 thousand in the previous year[11]. - The company reported a comprehensive loss for the year of RMB (280,083) thousand, compared to RMB (3,619,163) thousand in the previous year, indicating an improvement[34]. - The company's revenue from the sale of mobile communication devices and accessories reached RMB 12,923,373 thousand, an increase of 31.5% from RMB 9,787,866 thousand in the previous year[64]. - The company's operating revenue for the year ended December 31, 2022, was RMB 13,507,537 thousand, an increase of RMB 3,263,607 thousand or 31.86% compared to RMB 10,243,930 thousand for the year ended December 31, 2021[157]. - The company's net loss for the year ended December 31, 2022, was RMB 279,145 thousand, a significant reduction of RMB 3,317,840 thousand or 92.24% compared to a net loss of RMB 3,596,985 thousand for the year ended December 31, 2021[157]. Assets and Liabilities - Total current assets amounted to RMB 6,689,161 thousand, slightly down from RMB 6,710,407 thousand in 2021[17]. - Total non-current assets decreased to RMB 375,330 thousand from RMB 664,327 thousand in 2021[17]. - Total liabilities increased slightly to RMB 6,455,371 thousand from RMB 6,416,704 thousand in 2021[18]. - The total assets less current liabilities as of December 31, 2022, were RMB 609,120 thousand, down from RMB 958,030 thousand in 2021[38]. - The company's total liabilities included trade payables of RMB 313,051 thousand and interest-bearing bank borrowings of RMB 2,687,737 thousand as of December 31, 2022[36]. - The company's total liabilities decreased to RMB 313,051 thousand from RMB 719,194 thousand in the previous year[59]. - The company's net current assets as of December 31, 2022, were RMB 233,790 thousand, down RMB 59,913 thousand or 20.40% from RMB 293,703 thousand as of December 31, 2021, mainly due to decreases in trade receivables, prepayments, and deposits, along with an increase in short-term borrowings[146]. Revenue Sources - Revenue from the domestic market in China reached RMB 13,102,348 thousand, up from RMB 9,842,207 thousand in 2021, indicating a growth of about 33.3%[29]. - Revenue recognized from goods transferred at a point in time was RMB 12,923,372 thousand, compared to RMB 9,787,866 thousand in 2021, reflecting a growth of approximately 32.8%[29]. - Revenue from online and offline sales and marketing services and other services totaled RMB 326,743 thousand, up RMB 121,558 thousand or 59.24% from RMB 205,185 thousand in the previous year[105]. Expenses and Costs - The group's cost of sales for the year ended December 31, 2022, was RMB 12,870,105 thousand, an increase of RMB 3,201,963 thousand or 33.12% compared to RMB 9,668,142 thousand for the year ended December 31, 2021[106]. - Total selling and distribution expenses for the year ended December 31, 2022, were RMB 418,065 thousand, a decrease of RMB 90,770 thousand or 17.84% compared to RMB 508,835 thousand for the year ended December 31, 2021[108]. - Administrative expenses for the year ended December 31, 2022, totaled RMB 204,396 thousand, a significant decrease of RMB 680,714 thousand or 76.91% from RMB 885,110 thousand in the previous year[111]. - Other expenses for the year ended December 31, 2022, were RMB 10,745 thousand, a decrease of RMB 602,114 thousand or 98.25% compared to RMB 612,859 thousand for the year ended December 31, 2021[112]. Taxation - The company’s income tax expense for the year was calculated based on a statutory tax rate of 25%, with certain subsidiaries benefiting from reduced rates of 15% and 12.5%[48]. - The total tax expense for the year was RMB 18,668 thousand, compared to a tax credit of RMB 308,364 thousand in the previous year[66]. - The group's income tax expense for the year ended December 31, 2022, was RMB 18,668 thousand, compared to an income tax credit of RMB 308,364 thousand for the year ended December 31, 2021[116]. Cash Flow - Cash flow from operating activities for the year ended December 31, 2022, was RMB 599,489, primarily impacted by net losses[136]. - The net cash flow from financing activities for the year ended December 31, 2022, was RMB 721,443 thousand, primarily due to new bank loans and related party loans[93]. - The net cash generated from investment activities for the year ended December 31, 2022, was RMB 10,325 thousand, primarily due to the redemption of bank financial products and the purchase of properties, plants, and equipment[118]. Employee and Compensation - Total employee compensation for the year ended December 31, 2022, was RMB 207,419 thousand, a decrease of RMB 18,434 thousand or 8.16% compared to RMB 225,853 thousand for the year ended December 31, 2021[85]. - As of December 31, 2022, the group employed 2,970 staff, a decrease from 3,599 in 2021, with total salary and employee welfare expenses amounting to approximately RMB 307,232 thousand[174]. Future Plans and Strategies - The company plans to enhance its online business scale by deepening cooperation with major e-commerce platforms and integrating online and offline resources in 2023[161]. - The company has set a target to improve its business income contribution through a diversified new retail operation model involving multiple platforms and brands in 2023[161]. - The company will establish a refined management system for stores, focusing on upgrading old stores and enhancing operational efficiency through collaboration with commercial real estate resources[163]. - In 2023, the company aims to strengthen partnerships with major brands like Apple, Huawei, and Xiaomi, while exploring high-margin service opportunities such as accessories and insurance[178]. - The company plans to expand its new energy vehicle business by establishing physical retail stores in key cities such as Beijing, Guangzhou, and Zhuhai, integrating mobile phone sales channels to create a combined sales network[179]. - The company aims to explore new business models in the automotive sector, including car leasing and new energy vehicle exports, to continuously identify new business opportunities[179]. - In the household photovoltaic business, the company will collaborate with leading photovoltaic companies to trial agency operations in selected regions, leveraging its channel advantages for rapid business deployment[179].

Financial Performance - Total revenue for the six months ended June 30, 2022, was RMB 6,202,947 thousand, an increase from RMB 5,728,172 thousand in the same period of 2021, representing a growth of approximately 8.26%[11] - Gross profit for the same period was RMB 257,245 thousand, down from RMB 347,515 thousand in 2021, indicating a decline of about 26.0%[11] - The company reported a net loss of RMB (168,876) thousand for the period, significantly improved from a loss of RMB (3,437,386) thousand in the previous year[11] - Basic and diluted loss per share attributable to ordinary equity holders of the parent was RMB (0.23), compared to RMB (4.72) in the prior year, showing a substantial reduction in losses[11] - The total comprehensive loss for the period amounted to RMB (171,386) thousand, a significant decrease from RMB (3,441,065) thousand in the same period last year[11] Operational Highlights - The company operates over 700 direct and franchise stores across 21 provinces and 4 municipalities in China, enhancing its market presence[5] - The company is focusing on multi-channel operations and diversified service models to adapt to the evolving retail environment[5] - The company aims to strengthen its market competitiveness and brand influence through new retail business and overseas operations[5] - The company has over 100 subsidiaries, indicating a robust operational structure to support its business activities[5] - The company continues to prioritize service and innovation as its core competitive advantages, aiming to provide high-quality products and a seamless shopping experience[5] Sales and Revenue Breakdown - The company's mobile phone sales reached 2,002 thousand units in the first half of 2022, an increase of 106 thousand units or 5.59% compared to 1,896 thousand units in the same period of 2021[15] - Revenue from mobile communication equipment and accessories sales was RMB 5,969,592 thousand, an increase of RMB 451,896 thousand or 8.19% from RMB 5,517,696 thousand in the same period of 2021[17] - Revenue from mobile operators' services was RMB 135,943 thousand, an increase of RMB 27,340 thousand or 25.17% from RMB 108,603 thousand in the same period of 2021[18] - Retail sales of mobile communication devices and accessories amounted to RMB 1,744,193 thousand, compared to RMB 1,533,415 thousand in 2021, reflecting an increase of approximately 13.75%[114] - Wholesale sales of mobile communication devices and accessories were RMB 3,918,610 thousand, rising from RMB 3,586,349 thousand, which is an increase of around 9.25%[114] Cost and Expenses - Sales costs for the first half of 2022 were RMB 5,945,702 thousand, an increase of RMB 565,045 thousand or 10.50% from RMB 5,380,657 thousand in the same period of 2021[20] - Total sales and distribution expenses for the first half of 2022 were RMB 247,436 thousand, a decrease of RMB 3,592 thousand or 1.43% from RMB 251,028 thousand in the same period of 2021[23] - Administrative expenses for the six months ended June 30, 2022, totaled RMB 96,356 thousand, a decrease of RMB 750,188 thousand or 88.62% compared to RMB 846,544 thousand in the same period of 2021[25] - Financial costs for the six months ended June 30, 2022, amounted to RMB 98,962 thousand, down RMB 40,663 thousand or 29.12% from RMB 139,625 thousand in the same period of 2021[26] - Other income and gains decreased to RMB 39,076 thousand, down RMB 84,490 thousand or 68.38% from RMB 123,566 thousand in the same period of 2021[22] Cash Flow and Liquidity - The total cash and cash equivalents at the end of the period were RMB 101,275 thousand, down from RMB 128,469 thousand at the end of the same period in 2021[13] - Cash and cash equivalents as of June 30, 2022, were RMB 101,275 thousand, an increase of RMB 10,050 thousand or 11.02% from RMB 91,225 thousand as of December 31, 2021[33] - The net cash flow from operating activities for the six months ended June 30, 2022, was RMB (677,653) thousand, compared to a positive cash flow of RMB 222,218 thousand in the same period of 2021[96] - The company reported a net increase in cash and cash equivalents of RMB 10,480 thousand for the six months ended June 30, 2022, compared to an increase of RMB 57,910 thousand in the same period of 2021[96] Debt and Liabilities - Total bank and other borrowings as of June 30, 2022, were RMB 1,949,686 thousand, a decrease of RMB 208,238 thousand or 9.65% from RMB 2,157,924 thousand as of December 31, 2021[31] - The debt-to-asset ratio as of June 30, 2022, was 77.18%, an increase of 2.96 percentage points or 3.99% from 74.22% as of December 31, 2021[36] - The company’s non-current bank loans amounted to RMB 1,934,611,000, down from RMB 2,139,954,000, indicating a decrease of 9.6%[133] - The company’s total liabilities included loans from related parties amounting to RMB 480,134,000 as of June 30, 2022[151] Shareholder Information - As of June 30, 2022, Liu Donghai held 168,362,098 shares, representing 49.86% of the class of shares and 22.99% of the total issued share capital[54] - Dixin Technology Group holds 168,362,098 domestic shares, representing 49.86% of the relevant share class and 22.99% of the total share capital[55] - The board does not recommend any interim dividend for the six months ended June 30, 2022[53] Impact of COVID-19 - The COVID-19 pandemic continues to have a significant negative impact on the group's business and the entire retail industry[162] - Several retail stores operated intermittently or were fully closed during the reporting period due to the pandemic[162] - The trend of retail store closures is expected to continue in the short term as the pandemic persists[162] - Management faces challenges in estimating the future operations of retail stores based on available data amid ongoing pandemic uncertainties[162]

Financial Impairments and Write-offs - For the fiscal year 2021, the group recorded non-trade related financial asset impairment losses and write-offs of approximately RMB 315.3 million, with deposits impairment and write-offs of about RMB 114.1 million and other receivables impairment and write-offs of approximately RMB 201.2 million[5]. - As of December 31, 2021, the group had other receivables totaling RMB 1,771.9 million, with an impairment and write-off of RMB 201.2 million due to the overall downturn in the retail industry affecting the recoverability of these receivables[7]. - The group wrote off inventory amounting to approximately RMB 1,934.0 million and recognized an impairment of about RMB 22.4 million during the fiscal year 2021[8]. - In FY2021, inventory impairment amounted to approximately RMB 22.4 million, primarily due to slow-moving and obsolete inventory[17]. Inventory Management - The inventory write-off was primarily due to store closures during the COVID-19 pandemic, which led to inventory losses and safety risks[9]. - The company faced significant inventory pressure due to COVID-19, leading to increased measures to sell goods to nearby small third-party retailers and franchise stores[13]. - The company implemented a comprehensive physical inventory count and instructed all store managers to return consignment inventory to the company's stores[20]. - The frequency of regular and irregular inventory checks at stores has been increased[26]. Internal Controls and Management - The group has implemented control procedures for goods delivered to downstream customers, ensuring that revenue is recognized upon delivery and that trade receivables are managed under credit control policies[11]. - The management has improved internal control policies, focusing on accounts receivable monitoring and collection, inventory control for self-operated and franchise stores, and management of consignment goods[21]. - The headquarters' operations and supply chain departments review purchasing, sales, inventory levels, and turnover rates of subsidiaries weekly, investigating any anomalies immediately[25]. - The management has taken actions to enhance the company's asset protection and improve internal controls[18]. Challenges and Responses - The company recognized that the closure of many small retailers and franchise stores near its closed locations posed additional challenges during the pandemic[15]. - The management acknowledged that inventory losses were due to safety issues and pandemic-related factors beyond reasonable control[15]. - The company faced challenges in timely action due to lockdowns and travel restrictions during the pandemic[15]. - As of December 31, 2021, the controlling shareholder provided a total of approximately RMB 1.2 billion in pledges and guarantees to ensure the recovery of RMB 2.3 billion in accounts receivable[20]. Consignment Model Changes - The company has ceased the consignment model since the second half of 2021, which does not affect the annual performance announcement and other information in the 2021 annual report[27]. - The group’s policy requires regional managers to be responsible for consignment goods distributed in their areas, with store managers accountable for physical inventory and consignment goods in their stores[12]. - The company plans to halt purchases of low-turnover inventory types and will carefully execute replenishment orders during peak seasons or holidays[23].

Company Operations and Structure - The company operates over 800 direct and franchise stores across 22 provinces and 4 municipalities in China[7]. - As of December 31, 2021, the company had more than 100 subsidiaries under its umbrella[7]. - The group employed 3,599 employees as of December 31, 2021, down from 4,669 in 2020, with total compensation and employee benefits amounting to approximately RMB 351,560 thousand[72]. Financial Performance - Total revenue for the year was RMB 10,243,930 thousand, a decrease of RMB 3,306,220 thousand or 24.40% compared to RMB 13,550,150 thousand in the previous year[15]. - The company reported a net loss of RMB 3,596,985 thousand for 2021, compared to a net profit of RMB 114,512 thousand in the previous year[15]. - Mobile phone sales reached 3,525 thousand units, a decrease of 4,430 thousand units or 55.69% from 7,955 thousand units in the previous year[15]. - Revenue from mobile communication devices and accessories was RMB 9,787,866 thousand, a decrease of RMB 3,458,458 thousand or 26.11% from RMB 13,246,324 thousand in the previous year[25]. - Service revenue from mobile operators increased to RMB 250,879 thousand, an increase of RMB 112,248 thousand or 80.97% compared to RMB 138,631 thousand in the previous year[27]. - Other service revenue was RMB 205,185 thousand, up RMB 39,990 thousand or 24.21% from RMB 165,195 thousand in the previous year[27]. - Gross profit for the year was RMB 575,788 thousand, a decrease of RMB 600,903 thousand or 51.07% from RMB 1,176,691 thousand in the previous year, with a gross margin decline from 8.68% to 5.62%[29]. - Administrative expenses increased to RMB 885,110 thousand, an increase of RMB 615,527 thousand or 228.33% from RMB 269,583 thousand in the previous year[34]. - Financial asset impairment losses were RMB 943,037 thousand, an increase of RMB 921,086 thousand from RMB 21,951 thousand in the previous year, primarily due to the impact of COVID-19[35]. - The income tax credit for the year ended December 31, 2021, was RMB 308,364 thousand, a dramatic increase of 3,704.61% from RMB 8,105 thousand in 2020, primarily due to tax credits arising from losses[40]. Strategic Focus and Future Plans - The company has been focusing on multi-channel operations and diversified service models to adapt to the retail industry's evolving environment[7]. - The company aims to enhance market competitiveness and brand influence through new retail business and overseas expansion[7]. - The company is committed to offering a comprehensive range of services, including mobile hardware and accessories sales, value-added software services, and after-sales support[7]. - The company aims to provide comprehensive and convenient pre-storage services for partners and customers through its competitive omnichannel marketing capabilities[19]. - In 2022, the company aims to leverage opportunities in the smart home and IoT product markets, focusing on enhancing its own store operations and expanding into more operator stores[19]. - The company plans to strengthen strategic cooperation with potential brands and leading technology brands to capture market growth opportunities[19]. - The company will enhance its supply chain management while adjusting its street store layout and increasing the proportion of mall stores[19]. - The company anticipates that 2022 will be a year of explosive growth for 5G-related products, leveraging its established foundation in the 5G sector to drive sales revenue[77]. - The company plans to enhance its operational capabilities in smart home and IoT products, focusing on upgrading its retail stores and expanding partnerships with telecom operators[77]. - The company aims to strengthen its presence in shopping malls and optimize the quality of street-side stores as part of its layout strategy[77]. Governance and Management - The company appointed several non-executive directors, including Mr. Xie Hui and Mr. Jia Zhao Jie, who have extensive experience in strategic management and trade operations[85][86][87]. - The supervisory board consists of three members, including a worker representative, with a term of three years, allowing for re-election[94]. - Ms. Yang Hui serves as the chairperson of the supervisory board and has a background in financial management, previously holding a position as the financial vice president at Zhuhai Huafa[98]. - The company emphasizes the importance of financial oversight, including the review and verification of financial reports and the supervision of management actions[94]. - The independent non-executive directors, such as Mr. Lu Ting Jie and Mr. Lu Ping Bo, contribute to the governance and strategic direction of the company[90]. - The company has a structured approach to appointing directors and supervisors, ensuring a mix of experience and expertise in its leadership[92]. - The financial management system and policies are being enhanced under the guidance of experienced professionals within the company[98]. - The company has a focus on compliance and risk management, with dedicated roles for legal and risk control within its trade operations[87]. - The board of directors is responsible for making key decisions and overseeing the company's strategic initiatives[90]. - The company aims to maintain transparency and accountability in its financial activities through regular audits and reviews by the supervisory board[94]. Risks and Challenges - The company faces risks related to lease properties, including the inability to renew leases or renew at higher rents, which could impact overall operating performance[110]. - Inventory backlog risk exists due to the short product life cycles, necessitating effective inventory management to mitigate operational risks[112]. - The company has implemented a group fund pool management model to manage cash flow pressures from inventory and receivables[113]. - The COVID-19 pandemic significantly impacted the group's business, leading to major impairments in inventory, accounts receivable, and other receivables due to widespread store closures[74]. - The company faced foreign currency risk primarily from bank deposits and other receivables denominated in USD, EUR, and HKD, without hedging against such risks[68]. Shareholder Information - The total issued share capital of the company was 732,460,400 shares as of December 31, 2021[128]. - As of December 31, 2021, Liu Donghai holds 168,362,098 domestic shares, representing 49.86% of the relevant share class and 22.99% of the total share capital[148]. - Liu Donghai, Liu Hua, Liu Wencui, Liu Yongmei, and Liu Wenli collectively hold 169,337,902 domestic shares, accounting for 50.14% of the relevant share class and 23.12% of the total share capital[148]. - Zhuhai Huafa Group Co., Ltd. owns 337,700,000 domestic shares, which is 100% of the relevant share class and 46.10% of the total share capital[155]. - Dawn Galaxy International Limited holds 42,000,000 H shares, representing 10.64% of the relevant share class and 5.73% of the total share capital[155]. - The company has not entered into any management contracts for significant portions of its business during the year ended December 31, 2021[142]. - The remuneration policy for directors and senior management is based on the company's operating performance and individual performance[143]. - The board of directors is authorized to distribute and pay dividends based on the financial status and relevant regulations[120]. Compliance and Corporate Governance - The company has maintained compliance with the corporate governance code, with the roles of Chairman and CEO being separated after June 30, 2021[182]. - The audit committee reviewed the company's annual performance and financial statements for the year ending December 31, 2021, prepared in accordance with international financial reporting standards[179]. - The company has not changed its auditor in the last three years, with Ernst & Young being appointed as the auditor for the financial year ending December 31, 2021[186]. - The supervisory board actively monitored the company's overall management activities and financial risks, ensuring compliance with the company's articles of association[191]. - The supervisory board emphasized the importance of internal control and risk management, providing suggestions for improvement based on reports received[193]. - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[199].

Company Operations and Structure - As of December 31, 2020, the company operated over 1,100 directly operated and franchised stores across 22 provinces and 4 municipalities in China[6]. - The company has over 100 subsidiaries, focusing on mobile communication terminal sales and services, including hardware, software, and after-sales services[6]. - The company has a significant ownership structure, with various subsidiaries holding different percentages of equity, enhancing operational flexibility[11][12][13]. - The company has established a comprehensive retail network, which is crucial for its market expansion strategy[24]. - The company has a diverse board of directors, including both executive and independent non-executive members, enhancing governance[30]. - The company has implemented restrictions on the transfer of shares by directors and senior management for one year post-listing, ensuring stability in ownership[28]. - The company has a significant number of former management team members as shareholders in various subsidiaries, indicating a strong connection between management and ownership[27]. Financial Performance - The total revenue for the year ended December 31, 2020, was RMB 13,550,150.07 thousand, a decrease of RMB 1,800,802.83 thousand or 11.73% compared to RMB 15,350,952.90 thousand in the previous year[39]. - The net profit for 2020 was RMB 114,511.75 thousand, down RMB 145,940.25 thousand or 56.03% from RMB 260,452.00 thousand in 2019[39]. - Mobile phone sales reached 7,954.91 thousand units, a decrease of 1,778.83 thousand units or 18.27% from 9,733.74 thousand units in the previous year[39]. - The gross profit margin decreased by 33.48%, with gross profit for 2020 at RMB 1,176,691.29 thousand compared to RMB 1,768,877.05 thousand in 2019[48]. - The total sales cost for the year ended December 31, 2020, was RMB 12,373,458.78 thousand, down RMB 1,208,617.07 thousand or 8.90% from RMB 13,582,075.85 thousand in 2019[57]. - The company reported a significant reduction in service revenue from mobile operators, which decreased by 55.63% to RMB 138,630.53 thousand in 2020[52]. - The company experienced a foreign exchange loss of RMB 956.56 thousand in 2020, compared to no such loss in 2019[77]. Market Strategy and Expansion - The company aims to enhance market competitiveness and brand influence through multi-channel operations and diversified service models[6]. - The company has expanded its operations internationally, with interests in markets such as Thailand, India, Spain, and Nigeria[7]. - The company plans to expand its operations in Western Europe and Eastern Europe, leveraging partnerships with major mobile brands like Honor and OPPO[42]. - The company aims to enhance its omni-channel marketing and fulfillment capabilities to capture new market opportunities in smart home and IoT products[42]. - The company is focused on collaboration with e-commerce giants and local supermarkets to strengthen its logistics and order fulfillment services[42]. - The company is implementing a light-asset model for rapid store expansion through partnerships with major telecom operators[42]. Management and Governance - The company has a strong focus on sales management and new retail operations, led by the deputy general manager of the operations center[182]. - The management team has extensive experience in the telecommunications sector, with key members having held senior positions in major companies[183][184]. - The board of directors includes experienced professionals with backgrounds in telecommunications and finance, enhancing corporate governance[172][173][174]. - The supervisory board consists of three members, ensuring oversight of financial activities and compliance with regulations[178]. - The company is committed to enhancing its financial reporting and governance practices through the expertise of its supervisory board[184]. Assets and Liabilities - The total assets as of December 31, 2020, were RMB 9,345,016 thousand, with current liabilities of RMB 4,689,071 thousand[34]. - The company's total current assets as of December 31, 2020, were RMB 8,511,574.49 million, a decrease of RMB 1,261,784.36 million or 12.91% from RMB 9,773,358.85 million on December 31, 2019[117]. - The company's total liabilities to total assets ratio decreased to 37.51% as of December 31, 2020, down from 39.49% in 2019, indicating a reduction of 1.98%[134]. - The company's current ratio improved to 1.82 as of December 31, 2020, compared to 1.52 in 2019, indicating a 19.74% increase[134]. - The company's interest-bearing bank loans and other loans amounted to RMB 2,719,334.14 million as of December 31, 2020, a decrease of RMB 1,249,438.86 million or 31.48% from RMB 3,968,773.00 million on December 31, 2019[117]. Employee and Operational Costs - The company employed a total of 4,669 employees, with a total salary and employee benefits expenditure of approximately RMB 393,369.30 thousand for the year ended December 31, 2020[153]. - Employee compensation expenses totaled RMB 271,395.29 thousand for the year ended December 31, 2020, down RMB 124,155.70 thousand or 31.39% from RMB 395,550.99 thousand in 2019, primarily due to a reduction in workforce[68]. - Rent and property management expenses were RMB 209,670.86 thousand for the year ended December 31, 2020, a decrease of RMB 73,589.12 thousand or 25.98% compared to RMB 283,259.98 thousand in 2019, attributed to a reduction in store numbers and successful negotiations for rent reductions[68]. Future Outlook - In 2021, the company aims to enhance performance by collaborating with over 8,000 self-operated stores and providing comprehensive new retail solutions to telecom operators[159]. - The company plans to leverage the growth of smart home and IoT products, positioning its self-operated stores as pioneers in the 5G non-mobile smart terminal hardware business[159]. - The company intends to strengthen partnerships with potential brands in response to changes in the competitive landscape, aiming for maximum revenue through various channels[160]. - The company will enhance its omnichannel fulfillment capabilities by establishing a standardized fulfillment system and collaborating with major e-commerce platforms[162].

Financial Performance - Total revenue for the first half of 2020 was RMB 6,125,193 thousand, a decrease of 15.7% compared to RMB 7,265,420 thousand in the same period of 2019[10]. - Gross profit for the first half of 2020 was RMB 645,785 thousand, down 23.4% from RMB 843,579 thousand in the first half of 2019[10]. - Net profit attributable to the parent company for the first half of 2020 was RMB 63,466 thousand, a decline of 54.0% compared to RMB 137,814 thousand in the same period of 2019[10]. - Basic and diluted earnings per share for the first half of 2020 were RMB 0.09, down from RMB 0.21 in the first half of 2019[10]. - The company reported a total comprehensive income of RMB 50,376 thousand for the first half of 2020, compared to RMB 123,707 thousand in the same period of 2019[10]. - The company's total assets as of June 30, 2020, were RMB 9,158,644 thousand, compared to RMB 10,941,257 thousand as of December 31, 2019, indicating a decrease of 16.3%[128]. - The company's total liabilities decreased from RMB 6,440,324 thousand as of December 31, 2019, to RMB 5,493,823 thousand as of June 30, 2020[12]. - The company's equity attributable to owners of the parent increased to RMB 4,417,907 thousand from RMB 4,176,505 thousand, reflecting a growth of 5.8%[129]. - The company's retained earnings as of June 30, 2020, were RMB 2,587,025 thousand, an increase from RMB 2,523,559 thousand as of December 31, 2019, representing a growth of approximately 2.5%[131]. Sales and Revenue Breakdown - The group sold 3,774.98 thousand mobile phones in the first half of 2020, a decrease of 755.14 thousand units or 16.67% compared to 4,530.12 thousand units in the same period of 2019[14]. - Operating income from mobile communication devices and accessories sales was RMB 6,007,488.69 thousand, a decrease of RMB 1,028,617.67 thousand or 14.62% from RMB 7,036,106.36 thousand in the same period of 2019[21]. - Retail sales of mobile communication devices and accessories accounted for RMB 2,629,015.82 thousand, down RMB 994,848.51 thousand or 27.45% from RMB 3,623,864.33 thousand in the same period of 2019[21]. - Mobile phone sales revenue for the first half of 2020 was RMB 5,781,455.02 million, a decrease of RMB 981,634.51 million (14.51%) from RMB 6,763,089.53 million in the same period of 2019[31]. - Revenue from services provided to mobile operators was RMB 8,531.03 million, down RMB 10,703.03 million (55.65%) from RMB 19,234.06 million in the first half of 2019[26]. Cost and Expenses - Operating costs for the first half of 2020 were RMB 5,479,407.74 million, down RMB 942,433.72 million (14.68%) from RMB 6,421,841.46 million in the same period of 2019[25]. - Total sales and distribution expenses for the six months ended June 30, 2020, amounted to RMB 321,047.80 thousand, a decrease of RMB 80,824.79 thousand or 20.11% compared to RMB 401,872.59 thousand in the same period of 2019[35]. - Employee compensation for the six months ended June 30, 2020, was RMB 138,805.45 thousand, down RMB 43,101.08 thousand or 23.69% from RMB 181,906.53 thousand in the same period of 2019, primarily due to staff reductions[38]. - Total administrative expenses for the six months ended June 30, 2020, were RMB 120,264.44 thousand, a decrease of RMB 23,669.40 thousand or 16.44% from RMB 143,933.84 thousand in the same period of 2019, primarily due to a significant reduction in service fees and employee compensation[39]. - Financial costs amounted to RMB 94,972.62 thousand for the six months ended June 30, 2020, a decrease of RMB 25,274.88 thousand or 21.02% from RMB 120,247.50 thousand in the same period of 2019, attributed to a reduction in total borrowings[42]. Cash Flow and Liquidity - The group's net cash flow from operating activities was RMB 274,532 thousand, compared to a negative cash flow of RMB (162,171) thousand in the same period of 2019[12]. - Cash and cash equivalents held by the group as of June 30, 2020, were RMB 194,109.35 thousand, a decrease of 70.87% from RMB 666,245.04 thousand as of December 31, 2019[51]. - The company’s cash flow from operating activities was positively impacted by a decrease in accounts receivable, which improved by RMB 184,670 thousand compared to the previous year[139]. - The net cash flow from investing activities was a net outflow of RMB 113,003,000, compared to an inflow of RMB 53,774,000 in the same period last year[140]. - The net cash flow used in financing activities was RMB 634,057,000, compared to RMB 81,744,000 in the same period last year[140]. Shareholder Information - As of June 30, 2020, Liu Donghai holds 312,700,000 shares (good position), representing 42.69% of the total share capital[96]. - Liu Wencui owns 320,200,000 shares (good position), accounting for 43.72% of the total share capital[96]. - Digital China directly holds 158,350,000 H shares, representing 40.11% of the total share capital[102]. - The total number of shares held by major shareholders indicates significant control over the company, with several individuals holding over 30% of the shares[100]. - The company issued 65,793,400 new shares at a subscription price of HKD 3.25 per share, raising a total of HKD 213,828,550[182]. Corporate Governance - The company has adopted the Corporate Governance Code and has complied with most of its recommended best practices during the six months ending June 30, 2020[109]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim results for the six months ending June 30, 2020[113]. - The company will continue to review and enhance its corporate governance practices to ensure compliance with the Corporate Governance Code[109]. Future Outlook and Strategy - The company aims to adapt to the new retail environment and expand its overseas business[4]. - The company is actively exploring new online channels, leveraging the potential of home delivery, community, and live streaming retail models, with plans to upgrade its omnichannel operations throughout 2020[87]. - The company expects higher sales and operating profit in the second half of the year due to seasonal demand for mobile communication devices and accessories[153].