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].

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]