Core Viewpoint - Citi's research report indicates that after a better-than-expected performance announcement in May, the stock price of Gao Xin Retail has been strong. However, the company is expected to face challenges in the upcoming fiscal year 2026, particularly in the first quarter, with anticipated sales declines due to pricing pressures from e-commerce expansion [1] Group 1: Financial Performance - Management aims to prioritize sales and gross profit growth for fiscal year 2026 [1] - Sales for the first quarter of fiscal year 2026 (April to June 2023) are projected to decline in the mid to high single digits year-on-year, primarily due to a decrease in average selling prices [1] Group 2: Profit and Sales Forecasts - The net profit forecasts for fiscal years 2026 and 2027 have been reduced by 3% each, while sales forecasts have been lowered by 6% and 7% respectively [1] Group 3: Rating and Target Price Adjustments - The rating has been downgraded from "Buy" to "Neutral" as current expected price-to-earnings ratios reflect operational efficiency improvements and business recovery [1] - The target price has been adjusted from HKD 2.09 to HKD 2.35 [1]

比亚迪股份-R(81211)、中国海洋石油-R(80883)、美团-WR(83690)上一交易日沽空比率位于前三位，分 别为96.88%、80.42%、75.34%。美团-W(03690)、阿里巴巴-SW(09988)、快手-W(01024)的沽空金额位 居前三，分别为34.76 亿元、25.06 亿元、13.74 亿元。万科企业(02202)、中国海洋石油-R(80883)、比亚 迪股份-R(81211)的偏离值位居前三，分别为36.01%、35.40%、26.18%。 前十大沽空比率排行 | 股票名称 | 沽空金额 | 沽空比率↓ | 偏离值 | | --- | --- | --- | --- | | 比亚迪股份-R(81211) | 496.68 万元 | 96.88% | 26.18% | | 中国海洋石油-R(80883) | 57.37 万元 | 80.42% | 35.40% | | 美团-WR(83690) | 715.97 万元 | 75.34% | 15.02% | | 商汤-WR(80020) | 88.77 万元 | 66.55% | 13.10% | | 阿里巴巴-SWR(89988 ...

智通财经APP获悉，百度集团-SWR(89888)、京东健康-R(86618)、友邦保险-R(81299)上一交易日沽空比 率位于前三位，分别为99.23%、92.28%、90.91%。理想汽车-W(02015)、阿里巴巴-SW(09988)、腾讯控 股(00700)的沽空金额位居前三，分别为24.66 亿元、18.28 亿元、17.98 亿元。友邦保险-R(81299)、百度 集团-SWR(89888)、京东健康-R(86618)的偏离值位居前三，分别为38.31%、34.96%、34.77%。 前十大沽空比率排行 | 股票名称 | 沽空金额 | 沽空比率↓ | | 偏离值 | | --- | --- | --- | --- | --- | | 百度集团-SWR(89888) | 201.23 万元 | 99.23% | 34.96% | | | 京东健康-R(86618) | 2.82 万元 | 92.28% | 34.77% | | | 友邦保险-R(81299) | 68.00 万元 | 90.91% | 38.31% | | | 比亚迪股份-R(81211) | 487.15 万元 | 74.06% ...

Core Insights - The community group buying model has significantly impacted the supermarket industry, leading to a decline in performance for many supermarkets in the first quarter [1][2] - Despite the challenges posed by community group buying, there is a recognition that it can complement physical supermarkets if managed correctly [1][6] - The rapid expansion of community group buying, fueled by capital investment, has led to a price war that undermines its original purpose of serving consumers and suppliers [3][6] Supermarket Performance - In the first quarter, 12 out of 13 supermarkets reported a year-on-year decline in revenue, with four experiencing double-digit declines [2] - Some supermarkets have noted a stabilization in sales performance compared to previous periods, despite the overall downturn [2] - The decline in foot traffic has been observed, although the average transaction value has increased, indicating a shift in consumer behavior [2][4] Community Group Buying Impact - Community group buying has introduced competitive advantages such as lower inventory and higher turnover rates, but the price differences between community group buying and supermarkets can be exaggerated due to capital influence [2][6] - The model has evolved into a low-price competition arena, which has led to conflicts with traditional supermarkets [3][6] - Regulatory interventions have started to bring some stability back to the community group buying sector [6] Consumer Behavior Changes - The pandemic has accelerated the shift towards online shopping, with consumers developing new purchasing habits [4][5] - Certain products, particularly those requiring sensory evaluation, continue to drive consumers to physical stores, highlighting the need for supermarkets to enhance their offerings [4][6] - Supermarkets are increasingly recognizing the importance of online sales and are adapting their strategies accordingly [4][6] Industry Adaptation - Supermarkets are adjusting their operations in response to the challenges posed by community group buying and e-commerce [5][6] - There is a focus on improving product offerings and service quality to better meet consumer needs [6][7] - The future of physical retail lies in differentiation rather than direct competition with e-commerce on standardized products [7]

Core Viewpoint - The controversy surrounding the marketing strategies of RT-Mart, which some perceive as targeting Sam's Club, has sparked discussions among consumers and prompted official responses from both companies [1] Group 1: RT-Mart's Marketing Strategy - RT-Mart has been accused of using promotional slogans that imply competition with Sam's Club, such as "similar membership store products" and "we are cheaper" [1] - Official customer service from RT-Mart clarified that these slogans are specific to individual stores and not part of a company-wide marketing strategy, denying any intention to target Sam's Club [1] - The company stated that it does not manage individual store promotions but will record consumer feedback for potential action regarding the slogans [1] Group 2: Sam's Club's Product Offering - Sam's Club has faced backlash from members for stocking various brands, including Good Friend, Panpan, Xu Fu Ji, and Liu Liu Mei, leading to trending discussions on social media [1] - In response to member concerns, Sam's Club confirmed that some products are currently out of stock, while Liu Liu Mei products remain available for sale [1] - The company indicated that member feedback will be considered in future product selection strategies [1]

Financial Highlights [Annual Performance Summary](index=4&type=section&id=%E5%B9%B4%E5%BA%A6%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) The company achieved a significant turnaround this fiscal year, with operating profit shifting from a loss to a gain and profit attributable to owners reaching a positive figure, despite a slight revenue decrease, driven by effective cost control - Annual Performance Summary (For the Year Ended March 31) | Metric | For the Year Ended March 31, 2025 (RMB million) | For the Year Ended March 31, 2024 (RMB million) | Percentage Change | | :--- | :--- | :--- | :--- | | Revenue | 71,552 | 72,567 | (1.4)% | | Gross Profit | 17,236 | 17,958 | (4.0)% | | Operating Profit / (Loss) | 1,425 | (1,009) | N/A | | Profit / (Loss) Attributable to Owners of the Company | 405 | (1,605) | N/A | | Basic Earnings / (Loss) Per Share | RMB 0.04 | RMB (0.17) | N/A | - Financial Position Summary (As of March 31) | Metric | 2025 (RMB million) | 2024 (RMB million) | Percentage Change | | :--- | :--- | :--- | :--- | | Total Assets | 55,973 | 60,715 | (7.8)% | | Total Liabilities | 35,545 | 38,921 | (8.7)% | | Net Assets | 20,428 | 21,794 | (6.3)% | | Net Cash | 12,529 | 16,504 | (24.1)% | - Financial charts show that despite slight declines in revenue and gross profit over the past two years, operating profit and net profit achieved a **V-shaped reversal** this fiscal year, indicating a significant recovery in the company's profitability after last year's low point[12](index=12&type=chunk)[14](index=14&type=chunk)[15](index=15&type=chunk) Chairman's Statement [Chairman's Statement](index=6&type=section&id=%E4%B8%BB%E5%B8%AD%E8%87%B4%E8%A9%9E) The Chairman positions 2025 as a pivotal year for strategic transformation, emphasizing a return to retail fundamentals with a mission to be the preferred fresh food basket, focusing on product, price, experience, and service to reconstruct retail value - The strategic core focuses on the "vegetable basket project," prioritizing high-frequency, essential categories like fresh produce and cooked food, while ensuring the **lowest regional prices** and **zero tolerance for safety issues**[18](index=18&type=chunk) - The company will enhance customer memory points by redesigning store layouts and creating "peak-end experiences," and promote digital transformation across the marketing and procurement value chain to optimize inventory turnover and out-of-stock rates[18](index=18&type=chunk) - Facing the impact of new retail formats, the company adheres to a long-term development path, differentiating its formats: hypermarkets strengthen one-stop shopping, community supermarkets deepen community essential needs, and membership stores focus on "selection + experience"[19](index=19&type=chunk) CEO's Statement [CEO's Statement](index=7&type=section&id=%E9%A6%96%E5%B8%AD%E5%9F%B7%E8%A1%8C%E5%AE%98%E8%87%B4%E8%A9%9E) The CEO emphasizes returning to business fundamentals and long-term value, focusing on differentiated formats, upholding quality, price competitiveness, and service, while optimizing talent development to create value for all stakeholders - The company has clearly differentiated its three major formats: - **Hypermarkets**: Transforming into community living centers integrating shopping, experience, and services - **Mid-sized Supermarkets**: Focusing on efficiency improvements with a streamlined and efficient model for fast-paced needs - **Membership Stores**: Dedicated to enhancing customers' quality of life and shopping experience[24](index=24&type=chunk) - The company views employees as its most valuable asset, and will enable employees to realize personal value, achieve a sense of accomplishment and belonging by optimizing talent development mechanisms, providing scientific incentives, and clear career paths[22](index=22&type=chunk) Management Discussion and Analysis [Financial Review](index=8&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This fiscal year, the company achieved a significant profitability turnaround, with operating profit shifting from loss to gain, primarily due to substantial reductions in selling and marketing and administrative expenses, offsetting revenue and gross profit declines - Revenue Composition and Change | Revenue Category | FY2025 (RMB billion) | FY2024 (RMB billion) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Sales of Goods | 68.482 | 69.431 | -1.4% | | Membership Fees | 0.036 | 0.016 | +125.0% | | Rental Income | 3.034 | 3.120 | -2.8% | - Same-store sales growth (excluding supply chain business) was **0.6%**, primarily driven by a steady increase in average transaction value due to enhanced price competitiveness[26](index=26&type=chunk) - Online sales revenue achieved **mid-single-digit growth**[26](index=26&type=chunk) - Profitability Indicators | Metric | FY2025 | FY2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit | RMB 17.236 billion | RMB 17.958 billion | -4.0% | | Gross Profit Margin | 24.1% | 24.7% | -0.6pp | | Operating Profit / (Loss) | RMB 1.425 billion | RMB (1.009) billion | Turnaround to Profit | | Operating Profit Margin | 2.0% | -1.4% | +3.4pp | | Profit / (Loss) for the Year | RMB 0.386 billion | RMB (1.668) billion | Turnaround to Profit | | Net Profit Margin | 0.5% | -2.3% | +2.8pp | - Significant achievements in cost control: - **Sales and Marketing Expenses**: Decreased by **16.2%** to **RMB 15.232 billion**, mainly due to reduced personnel expenses and impairment losses[30](index=30&type=chunk) - **Administrative Expenses**: Decreased by **24.1%** to **RMB 1.709 billion**, mainly due to reduced goodwill impairment and headquarters organizational optimization[33](index=33&type=chunk) [Liquidity, Financial Resources and Gearing Ratio](index=12&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E6%AC%8A%E7%9B%8A%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) The Group's net cash position decreased, while net cash inflow from operating activities significantly increased due to an accounting reclassification of restricted deposits, with improved inventory and trade payables turnover days indicating enhanced operational efficiency - Key Liquidity and Efficiency Indicators | Metric | March 31, 2025 | March 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Net Cash Inflow from Operating Activities | RMB 3.549 billion | RMB 0.926 billion | +283.3% | | Net Cash | RMB 12.529 billion | RMB 16.504 billion | -24.1% | | Gearing Ratio | 0.61 | 0.76 | Decrease | | Inventory Turnover Days | 50 days | 53 days | Improvement | | Trade Payables Turnover Days | 67 days | 72 days | Improvement | - The significant increase in net cash inflow from operating activities is misleading, primarily stemming from a **RMB 3.144 billion** change in restricted deposits[40](index=40&type=chunk) - To earn higher interest, the company reclassified some short-term restricted deposits to long-term, which appears as cash inflow from operating activities and cash outflow from investing activities on the books[40](index=40&type=chunk) [Investing and Financing Activities](index=13&type=section&id=%E6%8A%95%E8%B3%87%E8%88%87%E8%9E%8D%E8%B3%87%E6%B4%BB%E5%8B%95) This fiscal year, net cash outflow from investing activities sharply increased, primarily for restricted fixed deposits, while net cash outflow from financing activities also significantly rose due to higher bank loan repayments and increased dividend payments - Net cash outflow from investing activities was **RMB 4.913 billion**, a significant year-on-year increase, primarily reflecting: - Net investment of **RMB 3.459 billion** in restricted fixed deposits with maturities exceeding three months - Capital expenditure of **RMB 0.985 billion** for new store development and existing store renovation[42](index=42&type=chunk) - Net cash outflow from financing activities was **RMB 3.750 billion**, a **176.1%** year-on-year increase, mainly due to: - Repayment of bank borrowings exceeding proceeds from new borrowings - Increased dividends paid[43](index=43&type=chunk) [Business Review and Outlook](index=14&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E8%88%87%E5%B1%95%E6%9C%9B) Amidst moderate economic growth and low consumer prices, the company executed a "low price, good quality" strategy, focusing on fresh produce standardization, optimizing supply chain efficiency through digitalization, and adjusting its store network by opening new M Member Stores while closing hypermarkets, aiming for a "daily low price + community living center" model - The core business strategy is "low price, good quality," reshaping price perception, vigorously developing the "standardization" of fresh produce categories, and accelerating the development of its private label "Super Save" series, emphasizing value for money[49](index=49&type=chunk) - Store Network Status (As of March 31, 2025) | Store Type | Number | Total GFA (million sq.m.) | | :--- | :--- | :--- | | Hypermarkets | 465 | 1,300.8 | | Mid-sized Supermarkets | 33 | 23.4 | | M Member Stores | 7 | 25.2 | | **Total** | **505** | **1,349.4** | - This fiscal year, new store openings included **1 hypermarket**, **4 mid-sized supermarkets**, and **4 M Member Stores**; concurrently, **8 hypermarkets** and **1 mid-sized supermarket** were closed, indicating the company is actively adjusting its format mix and increasing investment in the membership store model[52](index=52&type=chunk) - The future outlook is to build a "daily low price + community living center" model, combining enhanced product strength and optimized store layouts to improve customer experience and achieve a balance of cost, efficiency, and service[56](index=56&type=chunk) Directors' Report [Dividends](index=22&type=section&id=%E8%82%A1%E6%81%AF) The Board recommends a final dividend of HKD 0.17 per share, bringing the total annual distribution to HKD 0.34 per share, significantly higher than the previous year, with shareholders having currency options - Annual Dividend Distribution | Dividend Type | Amount Per Share (HKD) | Total Amount (approx. HKD million) | | :--- | :--- | :--- | | Interim Dividend (Paid) | 0.17 | 1,622 | | Proposed Final Dividend | 0.17 | 1,622 | | **Total Annual Dividend** | **0.34** | **3,244** | [Share Schemes](index=32&type=section&id=%E8%82%A1%E4%BB%BD%E8%A8%88%E5%8A%83) The Group utilizes share option and employee trust benefit schemes for talent retention, with no new options granted this fiscal year but some vesting, and plans to repurchase subsidiary equity held by employee trusts to achieve 100% control - As of March 31, 2025, **35,000,000 share options** remained unexercised under the share option scheme, of which **6,250,000** had vested and were exercisable[136](index=136&type=chunk) - No new options were granted during the reporting period, but **10,000,000 options** lapsed[136](index=136&type=chunk) - The employee trust benefit schemes (RT-Mart Scheme and Auchan Scheme) allow employees to hold equity in operating subsidiaries (Sun Art Retail Group Limited and Auchan Investment)[138](index=138&type=chunk)[140](index=140&type=chunk) - As of March 31, 2025, the trusts held approximately **2.015%** and **1.3834%** equity in Sun Art Retail Group Limited and Auchan Investment, respectively[138](index=138&type=chunk)[140](index=140&type=chunk) - On May 20, 2025, the Group entered into equity transfer agreements with the trustee, proposing to acquire the **2.015%** and **1.3834%** shares held by the trusts in Sun Art Retail (China) and Auchan (China) Investment, respectively, for a total consideration not exceeding **RMB 599 million** and **RMB 34 million**[165](index=165&type=chunk)[166](index=166&type=chunk) - Upon completion, the Group will achieve **100% control** over these two core operating subsidiaries[165](index=165&type=chunk)[166](index=166&type=chunk) [Continuing Connected Transactions](index=46&type=section&id=%E6%8C%81%E7%BA%8C%E9%97%9C%E9%80%A3%E4%BA%A4%E6%98%93) The Group maintains multiple continuing connected transaction agreements with Alibaba Group affiliates for services like delivery, platform, and merchandise, with all transactions within annual caps and reviewed for fairness and shareholder interest - Major Continuing Connected Transactions with Alibaba Affiliates (For the Year Ended March 31, 2025) | Transaction Type | Annual Cap (RMB million) | Actual Transaction Amount (RMB million) | | :--- | :--- | :--- | | **Procurement** | | | | Procurement of Delivery Services | 2,400 | 1,269.7 | | Procurement of Platform Services | 525 | 246.5 | | Procurement of Merchandise | 320 | 73.9 | | Procurement of Payment Services | 100 | 48.3 | | **Provision** | | | | Provision of Joint Business Promotion Services | 595 | 292.9 | | Provision of Merchandise | 320 | 72.2 | | Provision of Delivery Services | 60 | 54.7 | - Independent non-executive directors have reviewed these continuing connected transactions and confirmed that they were conducted in the ordinary course of the Group's business, on normal commercial terms, fair and reasonable, and in the overall interests of the shareholders[210](index=210&type=chunk)[211](index=211&type=chunk) - The auditor also issued an unqualified opinion letter[210](index=210&type=chunk)[211](index=211&type=chunk) Risk Factors [Risks Related to the Group's Business](index=62&type=section&id=%E8%88%87%E6%9C%AC%E9%9B%86%E5%9C%98%E6%A5%AD%E5%8B%99%E6%9C%89%E9%97%9C%E7%9A%84%E9%A2%A8%E9%9A%AA) The company faces key business risks including challenges in expansion strategy execution, new store profitability, accurately meeting evolving consumer demands, and potential adverse impacts from product quality or health issues - Expansion capability is constrained by multiple factors, including the ability to find suitable locations, secure sufficient funding, attract and retain management talent, and effectively manage the costs of an expanded network[226](index=226&type=chunk)[227](index=227&type=chunk) - The profitability of new hypermarkets is uncertain, influenced by market positioning, supplier negotiations, marketing effectiveness, and competitive environment, and may not reach profitability within the expected timeframe[231](index=231&type=chunk)[232](index=232&type=chunk) - Business success depends on the ability to predict and timely respond to rapidly changing customer needs and preferences[233](index=233&type=chunk) - Failure to accurately select products that meet consumer demands could significantly and adversely affect the business[233](index=233&type=chunk) [Risks Related to the Industry in China](index=65&type=section&id=%E8%88%87%E4%B8%AD%E5%9C%8B%E8%A1%8C%E6%A5%AD%E6%9C%89%E9%97%9C%E7%9A%84%E9%A2%A8%E9%9A%AA) The company faces industry and macroeconomic risks in China, including the impact of infectious diseases on consumption, macroeconomic conditions affecting consumer spending, and RMB exchange rate fluctuations and foreign exchange controls impacting dividend payments - Any outbreak of severe infectious diseases in China (such as COVID-19) could lead to a contraction in consumption and may require temporary suspension of store operations due to employee or customer infections, significantly and adversely affecting performance[235](index=235&type=chunk) - The company's performance is closely linked to China's economic conditions[237](index=237&type=chunk) - An economic slowdown or recession could lead to reduced consumer spending, thereby significantly and adversely affecting the company's business, financial condition, and prospects[237](index=237&type=chunk) - Most of the company's revenue and expenses are denominated in RMB, which is not freely convertible[238](index=238&type=chunk) - Exchange rate fluctuations and foreign exchange controls could significantly and adversely affect the company's ability to pay foreign currency dividends to shareholders[238](index=238&type=chunk) Corporate Governance Report [Corporate Governance Report](index=66&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%A0%B1%E5%91%8A) The company maintains high corporate governance standards, complying with all code provisions, detailing its governance structure, board and committee functions, board diversity policy, and practices in risk management, internal control, and shareholder communication - The Board of Directors comprises **seven directors**, including one executive director, three non-executive directors, and three independent non-executive directors, meeting the Listing Rules' requirements for the number and professional qualifications of independent non-executive directors[249](index=249&type=chunk)[256](index=256&type=chunk) - The company has adopted a Board Diversity Policy, and as of the reporting date, there are **three female members** on the Board, with at least one female member on each of the three Board committees, achieving gender diversity targets[273](index=273&type=chunk)[276](index=276&type=chunk) - The Board has established an Audit Committee, a Remuneration Committee, and a Nomination Committee, each with clear written terms of reference and chaired by an independent non-executive director[264](index=264&type=chunk) - The company has established a **three-tier ESG governance structure**, with the Board bearing ultimate responsibility, supported by an ESG Committee and an ESG Working Group, to effectively manage ESG risks[283](index=283&type=chunk) Independent Auditor's Report [Audit Opinion](index=84&type=section&id=%E5%AF%A9%E8%A8%88%E6%84%8F%E8%A6%8B) The auditor, PricewaterhouseCoopers, issued an unqualified opinion on the consolidated financial statements for the year ended March 31, 2025, confirming they fairly reflect the Group's financial position, performance, and cash flows in accordance with Hong Kong Financial Reporting Standards - The auditor issued a standard **unqualified audit opinion**, indicating that the financial statements fairly present the company's financial position in all material respects[314](index=314&type=chunk) [Key Audit Matters](index=85&type=section&id=%E9%97%9C%E9%8D%B5%E5%AF%A9%E8%A8%88%E4%BA%8B%E9%A0%85) The auditor identified three key audit matters involving significant management judgment and estimates: recognition of purchase rebates and discounts, valuation of non-returnable inventories, and impairment assessment of store assets, for which detailed audit procedures were performed - Key audit matters primarily focus on areas requiring significant management estimates and judgments: - **Recognition of purchase rebates and discounts**: Due to their large volume, complex arrangements, and volume-based rebates involving estimates of future purchases - **Valuation of non-returnable inventories**: Assessing the net realizable value of inventories involves significant estimates of future sales, selling prices, and costs - **Asset impairment assessment**: Determining the recoverable amount of store assets (property, plant, and equipment) involves significant judgments regarding future cash flows and discount rates[322](index=322&type=chunk) Consolidated Financial Statements [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=94&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement presents the Group's financial performance, including profit or loss and other comprehensive income, for the reporting period [Consolidated Statement of Financial Position](index=95&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This statement details the Group's assets, liabilities, and equity as of the reporting date, providing a snapshot of its financial position [Consolidated Statement of Changes in Equity](index=97&type=section&id=%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) This statement illustrates the changes in the Group's equity during the reporting period, reflecting transactions with owners and other comprehensive income [Consolidated Statement of Cash Flows](index=99&type=section&id=%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) This statement provides information on the Group's cash inflows and outflows from operating, investing, and financing activities during the reporting period Five-Year Summary [Five-Year Financial Summary](index=209&type=section&id=%E4%BA%94%E5%B9%B4%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) Five-year financial data indicates a downward trend in Group revenue since its FY2021 peak, though FY2025 saw the first positive growth in operating and net profit since FY2023, reversing prior losses, while total assets and equity continued to contract - Five-Year Financial Data Summary (RMB million) | Fiscal Year | 2025 | 2024 | 2023 | 2022 | 2021 (15 months) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 71,552 | 72,567 | 83,662 | 88,134 | 124,612 | | Operating Profit / (Loss) | 1,425 | (1,009) | 1,177 | 18 | 5,757 | | Profit / (Loss) for the Year | 386 | (1,668) | 78 | (826) | 3,771 | | Total Assets | 55,973 | 60,715 | 64,118 | 65,746 | 69,227 | | Total Liabilities | 35,545 | 38,921 | 39,921 | 40,680 | 41,373 |

Investment Rating - The report maintains an optimistic outlook for the Hong Kong stock market, particularly for new IPOs and sectors like new consumption and innovative pharmaceuticals [8]. Core Insights - The report highlights that the recent subsidies from food delivery e-commerce platforms directly benefit coffee, tea, and advertising channels [8]. - The education sector remains robust, with leading institutions expanding market share and developing AI products for international education [3][19]. - The luxury goods sector is experiencing slight pressure from macroeconomic factors, but brands with strong innovation capabilities are still seeing growth [20]. - The coffee and tea industry is in a growth cycle, with coffee demand remaining strong, while tea faces short-term challenges due to increased competition [27]. - E-commerce is under pressure with slowing growth rates, but instant retail is emerging as a new battleground [31]. - The travel and OTA sectors are seeing limited impact from recent subsidies, with a focus on undervalued leading players [8]. - Music streaming platforms are identified as quality internet assets driven by domestic demand, with ongoing developments in subscription services [36]. - The virtual asset market is on an upward trend, supported by traditional financial institutions entering the space [40]. - The real estate market is under pressure, particularly in major cities, with a focus on opportunities in companies like Beike [8]. - The automotive service market is experiencing a decline, with a continued focus on ecosystem changes [8]. Summary by Sections 1. Education - The K12 education sector remains highly prosperous, with leading institutions reporting good summer enrollment progress and a focus on AI product development [3][19]. - The education index saw a decline of 1.78% during the reporting period, outperforming the Hang Seng Technology Index but underperforming other major indices [10]. 2. Luxury Goods - The luxury goods sector is slightly pressured by macroeconomic factors, with notable growth in brands with strong innovation [20]. - Key luxury stocks showed positive performance, with Samsonite and Prada increasing by 5.61% and 6.09% respectively [20]. 3. Coffee and Tea - The coffee sector remains in a growth cycle, with strong demand and a high frequency of consumption [27]. - The tea sector faces short-term challenges due to increased competition and supply growth [27]. 4. E-commerce - The e-commerce sector is experiencing a slowdown, with significant competition impacting profitability [31]. - Instant retail is becoming a new focus, with major platforms launching aggressive subsidy plans [31]. 5. Travel and OTA - The travel sector is seeing limited impact from subsidies, with a focus on undervalued leading players [8]. 6. Music Streaming - Music streaming platforms are identified as high-quality assets driven by domestic demand, with ongoing developments in subscription services [36]. 7. Virtual Assets - The virtual asset market is on an upward trend, with traditional financial institutions increasingly entering the space [40]. 8. Real Estate - The real estate market is under pressure, particularly in major cities, with a focus on opportunities in companies like Beike [8]. 9. Automotive Services - The automotive service market is experiencing a decline, with a continued focus on ecosystem changes [8].

Core Insights - The 2024 China Chain TOP100 report indicates a sales scale of 2.13 trillion yuan and a total of 257,200 stores, representing a year-on-year growth of 4.9% and 13.5% respectively [1][4][12] Group 1: Sales Performance - Walmart (China) leads the sales ranking with 158.84 billion yuan, showing a year-on-year growth of 19.6% [2][8] - Hunan Mingming Hen Mang, a new entrant in the top ten, achieved a remarkable sales growth of 132.7% and a store count increase of 105.6% [8][10] - The top ten companies in sales include traditional giants like Suning and Gome, indicating the resilience of established brands [8][10] Group 2: Store Count - Meiyijia holds the highest number of stores at 37,943, leveraging the convenience store model for rapid expansion [9][10] - The increase in store count is primarily driven by convenience and specialty stores, reflecting a shift towards meeting immediate consumer needs [9][12] Group 3: Growth Dynamics - Companies like Hema and Mingming Hen Mang reported double-digit growth in both sales and store numbers, highlighting their effective market strategies [10][12] - Costco, despite having only seven stores, achieved a sales growth of 58.2%, showcasing the potential of high-end warehouse retail [10][12] Group 4: Industry Trends - The report indicates a structural adjustment within the industry, with a notable increase in the number of companies achieving over 30 billion yuan in sales, from 21 to 24 [14] - The industry is experiencing a shift towards specialization, with professional stores and convenience stores leading growth, while traditional retail faces pressure to adapt [12][15]

Core Insights - The market share of RT-Mart in Beijing is gradually shrinking, with the recent closure of its Xihongmen store, leaving only one store remaining in the city [1][4] - RT-Mart's parent company, Gao Xin Retail, reported a revenue of 71.552 billion yuan and a net profit of 386 million yuan for the fiscal year 2025, indicating a turnaround from previous losses [1][8] - The company is undergoing significant operational restructuring, including the closure of several stores and a reduction in operational zones from five to four [6][7] Store Closures - The Xihongmen store has officially ceased operations, with its space being replaced by a 7FRESH supermarket, and the remaining RT-Mart store in Beijing is located in Fengtai District [4] - Consumers expressed mixed reactions to the closure, with some noting the outdated environment and average product value [4] - RT-Mart has proactively closed several stores across various regions, including Wuhan and Jiangsu, to adapt to market challenges [4][5] Financial Performance - Gao Xin Retail has closed eight large stores and one medium-sized supermarket, with one large store being converted into a membership store [5] - The company has faced significant losses over the past three fiscal years, totaling 3.45 billion yuan, prompting a need for cost-cutting measures [6][8] - The reported profit turnaround was largely achieved through a reduction in sales and marketing expenses by 2.95 billion yuan, alongside a decrease in personnel costs [8] Management Changes - Following a significant share sale to Dehong Capital, Gao Xin Retail has undergone management changes, including the resignation of its founder from the board [6][7] - The new management is focused on restructuring operational zones and improving efficiency to better adapt to market demands [7] Strategic Shift - RT-Mart is shifting its focus towards the more popular medium-sized supermarket format, RT-Mart Super, which has shown promising sales growth of 5.9% [8][9] - The medium-sized supermarkets are designed to be more flexible and better suited to current consumer preferences, with a smaller footprint and a curated selection of products [9] - The transition to this new format may involve challenges in supply chain management and operational adjustments [9]

Investment Rating - The report maintains a positive outlook on the Hong Kong stock market, indicating a strong risk appetite and suggesting investment opportunities in various sectors, particularly in virtual assets and Web 3.0 [3][10]. Core Insights - The Hong Kong stock market is experiencing a significant increase in risk appetite, with improved asset quality and trading volume, highlighting the value of asset trading platforms [3][10]. - There is a notable uptrend in multiple sectors such as AI, new consumption, and innovative pharmaceuticals, with a particular focus on small and mid-cap stocks in media and consumer sectors [3][10]. - The report emphasizes the ongoing development of virtual assets and the Web 3.0 market, driven by stablecoin policies and recent IPOs, suggesting that more regulatory frameworks will emerge [3][10]. - The trend of Chinese companies returning to Hong Kong for IPOs is gaining momentum, with increased trading of companies like NetEase and Ctrip in the Hong Kong market [3][10]. - The valuation of overseas Chinese assets remains influenced by US-China trade relations and the broader economic environment, necessitating close monitoring of trade policies and domestic economic changes [3][10]. Summary by Sections Education - The K12 education sector maintains high growth, with leading institutions reporting over 20% revenue growth during the winter training period, and an increase in non-academic course retention rates [5][11]. Luxury Goods - The luxury goods market shows slight pressure due to macroeconomic factors, but brands that align with demand trends are performing well, with cautious price increases observed [5][20]. Coffee and Tea Drinks & OTA - Coffee and tea remain key categories for delivery platforms, with strong performance from major brands like Luckin Coffee, which continues to expand its store presence [5][25]. E-commerce - The e-commerce sector faces slight pressure, but major platforms like Alibaba and JD.com are expected to benefit from ongoing promotional activities [5][26]. Streaming Platforms - Music streaming platforms are viewed as high-quality internet assets, with sustained profitability driven by scale effects [5][34]. Virtual Assets & Internet Brokers - The stablecoin leader Circle's IPO saw a 168% increase on its first day, marking a significant event in the virtual asset space [5][38]. Real Estate Transactions - Recent data shows a slight decline in second-hand housing transactions in major cities, suggesting a need for caution in the real estate market [5][50]. Automotive Services - The automotive aftermarket is under pressure, with traditional fuel vehicle service visits declining, while new energy vehicle service visits are increasing [5][45].