Financial Performance - For the fiscal year 2023, the company reported revenue of RMB 83,662 million, a decrease of 5.1% from RMB 88,134 million in the previous year[37] - The gross profit for the year was RMB 20,581 million, down 4.2% from RMB 21,473 million[37] - Operating profit surged to RMB 1,177 million, a significant increase of 6,438.9% compared to RMB 18 million in the prior year[37] - The net profit attributable to shareholders was RMB 109 million, recovering from a loss of RMB 739 million in the previous year[37] - For the fiscal year ending March 31, 2023, the revenue from merchandise sales was RMB 80.535 billion, a decrease of RMB 4.060 billion or 4.8% compared to RMB 84.595 billion for the previous fiscal year[45] - Same-store sales growth for the fiscal year was -4.0%, primarily impacted by a decline in foot traffic, although online channels achieved double-digit growth[45] - Rental income for the fiscal year was RMB 3.127 billion, down RMB 0.412 billion or 11.6% from RMB 3.539 billion in the previous year[45] - Gross profit for the fiscal year was RMB 20.581 billion, a decrease of RMB 0.892 billion or 4.2% from RMB 21,473 billion in the previous year, with a gross margin of 24.6%[46] - The net profit margin for the fiscal year ending March 31, 2023, was 0.1%, an increase of 1.0 percentage points from the net loss margin of 0.9% in the previous year, primarily due to an increase in operating profit margin[54] Cash Flow and Financial Position - The company achieved a net cash position of RMB 19,449 million, an increase of 4.2% from RMB 18,659 million[38] - The company's cash inflow from operating activities for the fiscal year ending March 31, 2023, was RMB 4.302 billion, an increase of RMB 0.725 billion or 20.3% compared to RMB 3.577 billion in the previous year[57] - The net cash position of the company as of March 31, 2023, was RMB 19.449 billion, up from RMB 18.659 billion a year earlier[57] - The net cash outflow from investment activities for the fiscal year ending March 31, 2023, was RMB 12.00 billion, a decrease of RMB 45.01 billion or 136.4% compared to a net cash inflow of RMB 33.01 billion in the previous year[58] - The net cash outflow from financing activities for the fiscal year ending March 31, 2023, was RMB 19.88 billion, a decrease of RMB 16.92 billion or 46.0% from RMB 36.80 billion in the previous year[59] Strategic Initiatives and Market Focus - The company plans to enhance its product offerings and expand its market presence through four strategic initiatives, focusing on product strength, offline experience centers, online fulfillment centers, and multi-format expansion[44] - The company is focusing on enhancing its fresh supply chain infrastructure to improve customer satisfaction and operational efficiency[43] - The company plans to focus on the middle-aged and young families in fiscal year 2024, enhancing the experience and service reliability in its B2C business to meet customer demands for home delivery[65] - The company aims to strengthen its digital membership capabilities, integrating its membership system with platforms like Ele.me and Taobao, enhancing its competitive edge in digital operations[65] Employee and Governance - As of March 31, 2023, the group had 107,785 employees, a decrease from 122,010 employees as of March 31, 2022[74] - Total employee benefits expenditure amounted to RMB 10,066 million, compared to RMB 10,383 million for the same period last year, reflecting a decrease of approximately 3.05%[74] - The board of directors consists of seven members, including one executive director, three non-executive directors, and three independent non-executive directors[161] - The company has implemented effective mechanisms to ensure the independence of the board, allowing all directors to access relevant information and seek independent professional advice[164] - The company has established its own Corporate Governance and Compliance Manual, which includes all principles and practices outlined in the Corporate Governance Code[157] Risks and Challenges - The company's performance is significantly influenced by the economic conditions in China, affecting sales, revenue, and profitability[154] - Concerns regarding product quality or safety could significantly impact the company's sales and operational performance[152] - The outbreak of any serious infectious disease in China could adversely affect the company's business performance and overall consumer spending[153] - The company faces substantial foreign exchange risks due to a large portion of its revenue and expenses being denominated in RMB, which is not freely convertible[155] Related Party Transactions - The annual cap for procurement of goods and services from Alibaba Group for the fiscal years ending March 31, 2022, 2023, and 2024 is set at RMB 1.5 billion, RMB 1.8 billion, and RMB 2.1 billion respectively, with actual transaction amounts for the fiscal year ending March 31, 2023, being approximately RMB 298.3 million[131] - The actual transaction amount for sales of goods and services to Alibaba Group for the fiscal year ending March 31, 2023, was approximately RMB 3,339.8 million, representing a decrease of 47.3% compared to the previous year[134] - The Group's ongoing relationship with Alibaba affiliates is expected to enhance operational efficiency and market reach through collaborative efforts[135] Sustainability and ESG Initiatives - The Group has engaged external consultants to prepare ESG information as required by the Listing Rules, emphasizing the importance of sustainability for future development[145] - The ESG committee was established to manage ESG risks and has reported to the board three times during the reporting period, reviewing ESG strategies and identifying risks[175] - The company is committed to promoting the use of clean energy and sustainable operations, aiming for energy conservation and emission reduction[75]

Financial Performance - For the fiscal year ending March 31, 2023, total revenue decreased to RMB 83,662 million, down 5.1% from RMB 88,134 million in 2022[2] - Gross profit for the same period was RMB 20,581 million, a decline of 4.2% compared to RMB 21,473 million in the previous year[2] - Operating profit surged to RMB 1,177 million, a significant increase of 6,438.9% from RMB 18 million in 2022[2] - The net profit attributable to the company's owners was RMB 109 million, recovering from a loss of RMB 739 million in the prior year[2] - Basic and diluted earnings per share improved to RMB 0.01, compared to a loss of RMB 0.08 per share in 2022[9] - The company reported a total comprehensive income of RMB 78 million for the year, compared to a loss of RMB 826 million in the previous year[7] Assets and Liabilities - Total assets as of March 31, 2023, were RMB 64,118 million, a decrease of 2.5% from RMB 65,746 million in 2022[2] - Total liabilities decreased to RMB 39,921 million, down 1.9% from RMB 40,680 million in the previous year[2] - Net cash increased to RMB 19,449 million, reflecting a growth of 4.2% from RMB 18,659 million in 2022[2] Revenue Breakdown - Revenue from merchandise sales was RMB 80,535 million, down from RMB 84,595 million, indicating a decline of 4.0%[19] - Rental income from tenants decreased to RMB 3,127 million from RMB 3,539 million, reflecting a decline of 11.6%[19] - Other income for the year was RMB 1,475 million, slightly up from RMB 1,449 million in the previous year[20] Expenses and Cost Management - Employee benefits expenses totaled RMB 10,066 million, a decrease of 3.0% from RMB 10,383 million in the previous year[21] - Selling and marketing expenses were RMB 18.510 billion, down RMB 1.843 billion or 9.1% from RMB 20.353 billion the previous year, reflecting cost-cutting efforts[51] - Administrative expenses for the year ended March 31, 2023, were RMB 2.369 billion, a decrease of RMB 0.182 billion or 7.1% compared to RMB 2.551 billion for the year ended March 31, 2022[52] Taxation - The total income tax expense for the year ended March 31, 2023, was RMB 644 million, significantly higher than RMB 323 million in the previous year[26] - Approximately 34% of the company's subsidiaries in China benefited from a preferential corporate income tax rate of 20% for small and micro enterprises, compared to 31% in the previous year[28] Cash Flow - Cash inflow from operating activities for the year ended March 31, 2023, was RMB 4.302 billion, an increase of RMB 0.725 billion or 20.3% compared to RMB 3.577 billion for the year ended March 31, 2022[59] - Cash outflow from investing activities for the year ended March 31, 2023, was RMB 1.200 billion, a decrease of RMB 4.501 billion or 136.4% compared to cash inflow of RMB 3.301 billion for the year ended March 31, 2022[61] - Cash outflow from financing activities for the year ended March 31, 2023, was RMB 1.988 billion, a decrease of RMB 1.692 billion or 46.0% compared to RMB 3.680 billion for the year ended March 31, 2022[62] Market and Operational Strategy - The company plans to continue focusing on operational efficiency and exploring market expansion opportunities in the upcoming fiscal year[2] - The company plans to declare a final dividend of RMB 0.040 per share for the year ended March 31, 2023, compared to RMB 0.045 per share in the previous year[32] - The company aims to enhance digital membership capabilities and integrate with various platforms to strengthen its competitive edge[67] Store Operations - The company opened one hypermarket and five medium-sized supermarkets during the fiscal year, while closing seven stores[70] - As of March 31, 2023, the company operated 486 hypermarkets, 12 medium-sized supermarkets, and 84 small supermarkets across China[70] - The total number of physical stores reached 582, with a total building area of 13,805,741 square meters[71] Employee and Corporate Governance - The company had 107,785 employees as of March 31, 2023, down from 122,010 employees a year earlier, with total employee benefits expenditure amounting to RMB 10,066 million[74] - The company has maintained high standards of corporate governance, ensuring compliance with the Corporate Governance Code[76]

Financial Performance - Revenue for the first half of 2022 was RMB 40,611 million, a decrease of 2.2% compared to RMB 41,534 million in the same period of 2021[8] - Gross profit decreased by 7.5% to RMB 10,112 million from RMB 10,933 million year-on-year[8] - Operating profit fell by 10.7% to RMB 500 million, down from RMB 560 million in the previous year[8] - The company reported a net loss of RMB 87 million, a significant decline from a profit of RMB 112 million in the same period last year, representing a 177.7% change[8] - For the six months ended September 30, 2022, revenue from merchandise sales was RMB 39.084 billion, a decrease of RMB 0.677 billion or 1.7% compared to the same period in 2021[20] - Same-store sales growth for the same period was -0.2%, primarily impacted by the resurgence of COVID-19 and related control measures[20] - Rental income for the six months ended September 30, 2022, was RMB 1.527 billion, down RMB 0.246 billion or 13.9% from the previous year[20] - Gross profit for the six months ended September 30, 2022, was RMB 10.112 billion, a decrease of RMB 0.821 billion or 7.5% compared to the same period in 2021[21] - The gross profit margin for the same period was 24.9%, down 1.4 percentage points from 26.3% in the previous year[21] - The net loss for the six months ended September 30, 2022, was RMB 87 million, a decrease of RMB 199 million or 177.7% compared to a profit of RMB 112 million for the same period in 2021[29] - The company reported a total comprehensive loss of RMB 1,031 million for the period[60] - For the six months ended September 30, 2022, the company reported a loss attributable to owners of RMB 69 million, compared to a profit of RMB 117 million for the same period in 2021[94] Operational Developments - The company has constructed eight fresh food warehouses to enhance product quality and standardization during the first half of the fiscal year[12] - The offline experience center model has been successfully implemented in four stores in East China, achieving double-digit revenue growth post-renovation[10] - The company plans to accelerate the restructuring of hypermarkets and enhance the digitalization of membership services to optimize operational efficiency[19] - The company has identified and secured 20 locations for new hypermarkets, with 11 currently under construction[14] - The company has maintained a low single-digit percentage for vacant stores in its shopping streets, with food and service merchants now accounting for over one-third of the total[10] - The online business has seen double-digit growth, supported by differentiated product operations and marketing strategies[11] Cash Flow and Investments - The net cash generated from operating activities for the six months ended September 30, 2022, was RMB 3.127 billion, a decrease of RMB 31 million or 1.0% from RMB 3.158 billion for the same period in 2021[32] - The net cash from investing activities for the six months ended September 30, 2022, was RMB 944 million, a decrease of RMB 4.127 billion or 81.4% from RMB 5.071 billion for the same period in 2021, primarily due to reduced proceeds from financial assets measured at fair value[33] - For the six months ended September 30, 2022, net cash outflow from financing activities was RMB 1.187 billion, a decrease of RMB 1.215 billion or 50.6% compared to RMB 2.402 billion for the same period in 2021[34] Shareholder Information - As of September 30, 2022, Alibaba Group holds a total of 7,507,666,581 shares, representing 78.70% ownership in the company[49] - Taobao China directly owns 2,607,565,384 shares, accounting for 27.33% of the company's equity[50] - The major shareholder, Jixin, has a beneficial ownership of 4,419,731,966 shares, which is 46.33% of the total[49] - Taobao Holdings Limited has a beneficial ownership of 7,027,297,350 shares, representing 73.66% of the equity in the company[49] - New Retail Strategic Opportunities Investments 1 Limited holds 480,369,231 shares, which is 5.04% of the total[49] - The total number of shares held by major shareholders reflects a significant concentration of ownership, impacting governance and strategic decisions[49] Compliance and Governance - The board believes that the company has complied with all provisions of the Corporate Governance Code for the six months ended September 30, 2022[37] - The company established an Environmental, Social, and Governance (ESG) management committee in August 2022 to oversee ESG strategies and risks[41] - The company’s board has adopted a code of conduct for securities trading that is at least as stringent as the standard code set out in the listing rules[39] - The report emphasizes compliance with the Securities and Futures Ordinance regarding the disclosure of interests in shares[50] Financial Position - Total assets as of September 30, 2022, amounted to RMB 66,882 million, an increase from RMB 65,746 million as of March 31, 2022[57] - Total liabilities increased to RMB 42,280 million from RMB 40,680 million, indicating a rise of 3.9%[57] - Net assets decreased to RMB 24,602 million from RMB 25,066 million, reflecting a decline of 1.8%[58] - Cash and cash equivalents as of September 30, 2022, were RMB 14,178 million, up from RMB 11,294 million, an increase of 25.5%[57] - Total equity amounted to RMB 27,854 million, reflecting an increase of 112% compared to the previous period[60] - Retained earnings reached RMB 12,687 million, also up by 117% from the last reporting period[60] Tax and Legal Matters - Income tax expenses for the six months ended September 30, 2022, were RMB 352 million, an increase of RMB 170 million or 93.4% from RMB 182 million for the same period in 2021[28] - Legal claims against the group amounted to RMB 670 million as of September 30, 2022, an increase from RMB 445 million as of March 31, 2022[120] - The group has made a provision of RMB 165 million for trade and other payables related to these legal claims, up from RMB 126 million as of March 31, 2022[120]

Financial Performance - Total revenue for the fiscal year ended March 31, 2022, was RMB 88,134 million, a decrease of 29.3% compared to RMB 124,612 million for the previous year[7]. - Gross profit for the same period was RMB 21,473 million, down 31.5% from RMB 31,365 million[7]. - The company reported an operating profit of RMB 18 million, a significant decline of 99.7% from RMB 5,757 million in the prior year[7]. - Net loss attributable to shareholders was RMB 739 million, compared to a profit of RMB 3,572 million in the previous year, representing a decrease of 120.7%[7]. - For the fiscal year ending March 31, 2022, the total revenue was RMB 88,134 million, a decrease of 5.4% from RMB 93,086 million in the previous year[16]. - Revenue from merchandise sales was RMB 84,595 million, down from RMB 89,458 million, reflecting a decline of RMB 48.63 million[17]. - Same-store sales growth was -6.7%, impacted by industry competition and pandemic challenges in the second half of the fiscal year[17]. - Gross profit for the fiscal year was RMB 21,473 million, a decrease of 11.0% from RMB 24,126 million, with a gross margin of 24.4% compared to 25.9% in the previous year[19]. - The company reported a net loss of RMB 826 million for the fiscal year, compared to a profit of RMB 2,294 million in the previous year[16]. - The company reported a net loss of RMB 826 million for the year ended March 31, 2022, compared to a profit of RMB 3,771 million in the previous year[190]. Assets and Liabilities - Total assets as of March 31, 2022, were RMB 65,746 million, a decrease of 5.0% from RMB 69,227 million the previous year[8]. - Total liabilities decreased by 1.7% to RMB 40,680 million from RMB 41,373 million[8]. - The company’s equity attributable to owners decreased to RMB 23,925 million from RMB 26,223 million, a decline of 9.0%[194]. - Current liabilities totaled RMB 34,093 million as of March 31, 2022, slightly down from RMB 34,116 million in the previous year[192]. - The company’s financial liabilities decreased to RMB 40,680 million from RMB 41,373 million, indicating a reduction of 1.7%[192]. - The company’s inventory as of March 31, 2022, was RMB 9,723 million, a decrease from RMB 9,990 million in the previous year[191]. Cash Flow - The net cash inflow from operating activities for the year ended March 31, 2022, was RMB 3,577 million, a decrease from RMB 12,024 million in the previous fifteen-month period[197]. - The total cash and cash equivalents at the end of the year was RMB 11,294 million, an increase from RMB 8,096 million at the beginning of the year[198]. - The net cash outflow from financing activities was RMB 3,680 million, compared to RMB 3,346 million in the previous period[198]. - The company reported a net cash inflow from investment activities of RMB 3,301 million, a significant improvement from a net cash outflow of RMB 13,833 million in the previous period[197]. - The company paid dividends to shareholders amounting to RMB 1,031 million, down from RMB 1,310 million in the previous period[198]. Strategic Initiatives - The chairman highlighted the company's efforts in transforming traditional hypermarkets into diversified shopping experiences, aiming to enhance customer engagement[14]. - The company plans to upgrade its restructuring initiatives and continue expanding its multi-channel strategies in the upcoming fiscal year[14]. - The management expressed confidence in returning to a growth trajectory by leveraging its extensive supply chain and customer service experience[14]. - The company plans to enhance its fresh supply chain capabilities and maintain a multi-format, omnichannel development strategy[15]. - The company aims to enhance its fresh supply chain capabilities to strengthen its competitive edge in the market[41]. - The company plans to maintain a multi-format, omnichannel development strategy to meet customer needs and improve service efficiency[41]. Market Presence - The company opened 5 new hypermarkets, 3 medium-sized supermarkets, and 73 small supermarkets during the fiscal year, contributing additional sales[17]. - As of March 31, 2022, the company operated 490 hypermarkets, nine medium-sized supermarkets, and 103 small supermarkets in China[38]. - The East China region generated the highest revenue of approximately 5.51 billion, accounting for 40% of total revenue[39]. - The company reported a revenue of 2.44 billion from the South China region, contributing 18% to the total revenue[39]. - The North China region contributed 1.34 billion, representing 10% of total revenue[39]. - The company is focused on providing better shopping experiences for both offline and online customers, targeting families and seniors[41]. Governance and Compliance - The company has adopted high standards of corporate governance to protect shareholder interests and enhance corporate value[124]. - The board consists of seven members, including one executive director, three non-executive directors, and three independent non-executive directors[144]. - The company has held four regular audit committee meetings each fiscal year, exceeding the requirements of the Corporate Governance Code[140]. - The roles of the Chairman and CEO are clearly defined and separated, with Lin Xiaohai serving as CEO since May 10, 2021[145]. - The company has adopted a whistleblowing policy as of March 3, 2022, ensuring compliance with the Corporate Governance Code[140]. - The independent non-executive directors ensure high standards of governance reporting and provide independent judgment on corporate actions and operations[149]. Related Party Transactions - The company has established a procurement framework agreement with Taobao China to purchase various goods and services, including home decor, personal care products, and electronics[82]. - The annual cap for procurement of goods and services from Alibaba Group is set at RMB 1.5 billion for 2022, RMB 1.8 billion for 2023, and RMB 2.1 billion for 2024, with actual transaction amount for 2022 being approximately RMB 324.4 million[84]. - The actual transaction amount under the annual cap for sales to Alibaba Group for the fiscal year ending March 31, 2022, was approximately RMB 633.95 million, indicating a significant gap from the set cap[93]. - The cooperation agreements with Alibaba and its affiliates classify as continuing connected transactions under the listing rules, ensuring transparency and compliance[102]. - The independent auditor confirmed that the financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, providing a true and fair view of the group's financial status[176]. Risks and Challenges - The company faces risks related to consumer demand and preferences, which can change rapidly and impact sales performance[133]. - Economic conditions in China directly influence consumer spending patterns, impacting the company's revenue and profitability[136]. - The company is exposed to risks from currency fluctuations and government controls on currency exchange, which may affect its ability to pay dividends[137]. - The company’s operational performance is sensitive to external economic factors, including inflation and trade relations with major economies[136]. - The company must maintain a diverse product range to meet customer preferences, which requires timely adjustments to changing consumer demands[133].

Financial Performance - Total revenue for the fiscal year ending March 31, 2021, was RMB 124.334 billion, representing a 30.4% increase from RMB 95.357 billion in the previous year[4] - Gross profit increased to RMB 31.087 billion, up 20.8% from RMB 25.731 billion year-over-year[4] - Operating profit rose to RMB 5.757 billion, reflecting a 17.7% increase compared to RMB 4.890 billion in the prior year[4] - Net profit attributable to equity shareholders was RMB 3.572 billion, a 26.0% increase from RMB 2.834 billion[4] - Basic and diluted earnings per share increased to RMB 0.37 from RMB 0.30[4] - Total revenue for the fifteen months ending March 31, 2021, was RMB 124.334 billion, a decrease of 1.2% from RMB 126.883 billion for the same period in 2020[14] - Revenue from merchandise sales was RMB 119.839 billion, down RMB 21 billion or 1.7% compared to RMB 121.939 billion in the previous year[15] - Same-store sales growth was -1.8%, reflecting challenges in offline sales due to the pandemic and increased competition[15] - Rental income decreased by RMB 4.49 billion or 9.1%, totaling RMB 4.495 billion compared to RMB 4.944 billion in the previous year[14] - Gross profit for the fifteen months ended March 31, 2021, was RMB 31.087 billion, a decrease of RMB 1.883 billion or 5.7% compared to RMB 32.970 billion for the same period in 2020[16] - Net profit for the fifteen months ended March 31, 2021, was RMB 3.771 billion, a decrease of RMB 0.751 billion or 16.6% from RMB 4.522 billion in the previous year[23] Assets and Liabilities - Total assets decreased by 2.8% to RMB 69.227 billion from RMB 71.186 billion[4] - Total liabilities decreased by 9.7% to RMB 41.373 billion from RMB 45.828 billion[4] - The equity-to-debt ratio improved to 0.72 from 0.52[4] - Non-current assets totaled RMB 34,685 million, a decrease from RMB 36,464 million as of December 31, 2019[182] - Current assets decreased slightly to RMB 34,542 million from RMB 34,722 million[182] - Total liabilities decreased to RMB 34,116 million from RMB 38,012 million, improving the net current asset position to RMB 426 million[182] - Total equity increased to RMB 27,854 million from RMB 25,358 million, with equity attributable to shareholders rising to RMB 26,223 million[183] Cash Flow and Investments - Net cash increased by 51.6% to RMB 20.116 billion from RMB 13.267 billion[4] - Operating cash flow for the period was RMB 12,024 million, significantly up from RMB 4,605 million in the previous year[187] - The company invested RMB 2,503 million in property and equipment during the period, compared to RMB 2,274 million in the previous year[188] - The net cash used in investing activities was RMB 13,833 million, a significant increase from RMB 1,808 million in the previous year[188] - The company declared and paid dividends amounting to RMB 1,310 million during the period, compared to RMB 1,153 million in the previous year[188] Strategic Initiatives - The company is focusing on digital transformation and restructuring hypermarkets to enhance operational efficiency[3] - The company aims to return to high single-digit growth in the current fiscal year and enter double-digit growth in the next fiscal year[11] - Alibaba Group's investment is expected to enhance the supply chain efficiency of approximately 500 offline stores, improving product supply capabilities[11] - The new CEO has established a management team focused on a multi-format, omnichannel development strategy[11] - The company plans to accelerate the expansion of medium-sized supermarkets and test the "small hypermarket" model to increase coverage density[11] - The company aims to enhance its core category penetration and improve product operation capabilities through store renovations[29] - The company plans to leverage its supply chain advantages and expand its community group buying business as a key growth driver[34] Governance and Compliance - The company has a strong focus on financial management and strategic development[47] - The board of directors consists of independent non-executive directors with extensive industry experience[45][46] - The company has adopted a code of conduct for securities trading by directors and relevant employees, which complies with the standards set out in the Listing Rules[138] - The company has ensured that all independent non-executive directors are independent according to the guidelines set forth in the Listing Rules[143] - The company has established a policy for disclosing confidential information and responding to inquiries[156] - The company is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[121] Risks and Challenges - The company faced significant risks and uncertainties, detailed in the annual report, particularly in the risk factors section on pages 60 to 64[64] - The company acknowledges that new hypermarkets may not achieve expected profitability levels within the planned timeframe, impacting overall financial performance[130] - The company faces risks related to the selection of suitable locations for new hypermarkets, which is critical for its expansion strategy[129] - Any outbreak of serious infectious diseases in China may adversely affect the company's business performance and overall economic environment[133] - Fluctuations in exchange rates and government controls on currency exchange may negatively impact the company's ability to pay dividends[135] Shareholder Information - The proposed final dividend for the fifteen months ending March 31, 2021, is HKD 0.13 per ordinary share, totaling approximately HKD 12.40 billion (RMB 10.32 billion), subject to shareholder approval[51] - The company has reserves available for distribution to shareholders amounting to RMB 11.48 billion as of March 31, 2021[52] - Following recent transactions, public shareholders hold 1,960,053,917 shares, representing approximately 20.55% of the total issued share capital, exceeding the minimum public float requirement of 19.38%[56] - The company will suspend share transfer registration from August 9 to August 12, 2021, to determine voting rights for the upcoming annual general meeting[57] - The company can convene a shareholders' meeting upon request from shareholders holding at least 5% of the voting rights[160] Operational Performance - The company completed the renovation of 38 hypermarkets as of March 31, 2021, with plans to renovate 40 to 50 stores annually going forward[28] - The "One Hour Delivery" service achieved an average daily order volume of nearly 1,100 orders in Q1 2021, a year-on-year increase of over 40%[33] - The group has 123,449 employees as of March 31, 2021, and has implemented a "flexible organization" project to improve efficiency and reduce personnel costs[38] - The company has identified and secured 27 locations for new hypermarkets, with 22 currently under construction[35] Agreements and Collaborations - The company has established a framework agreement to categorize and manage ongoing related transactions with Alibaba Group[85] - The business cooperation agreement with Alibaba Group includes data sharing, system integration, and delivery services, with a fixed term of three years starting from December 7, 2017[98] - The cooperation agreement with Ele.me has been extended until March 31, 2022, allowing the integration of Ele.me's platform for online orders and delivery services in Auchan and RT-Mart stores[102] - The marketing service agreement with Lazada Network Shanghai allows for promotional activities on the Ele.me platform, with service fees charged for each promotional SMS sent to potential customers[107][108] Audit and Financial Reporting - The independent auditor's report is included in the financial statements, confirming the auditor's responsibilities[154] - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards, providing a true and fair view of the group's financial status[166] - Key audit matters included the complexity and scale of supplier arrangements, which required significant judgment in determining the recognition of sales cost deductions[169] - The company has engaged external auditors to review the continuing connected transactions, and no issues were found regarding compliance with pricing policies and agreements[119]