[Section I Important Notice, Table of Contents, and Definitions](index=2&type=section&id=Section%20I%20Important%20Notice%2C%20Table%20of%20Contents%2C%20and%20Definitions) This section provides an important notice, the table of contents, and definitions relevant to the report [Important Notice](index=2&type=section&id=Important%20Notice) The company's board of directors, supervisory board, and senior management ensure the truthfulness, accuracy, and completeness of this annual report, with all directors attending the review meeting, and no profit distribution planned for 2018 - Company management guarantees the truthfulness, accuracy, and completeness of the report content and assumes corresponding legal responsibilities[3](index=3&type=chunk) - The company plans not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for 2018[3](index=3&type=chunk) [Section II Company Profile and Key Financial Indicators](index=5&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section outlines the company's basic information and presents its key financial performance metrics [Company Basic Information](index=5&type=section&id=Company%20Basic%20Information) Wuhan Zhongshang Group Co., Ltd. (stock code: 000785) is a Shenzhen Stock Exchange-listed company with no significant changes in its main business since listing Company Basic Information | Item | Content | | :--- | :--- | | Stock Abbreviation | Wuhan Zhongshang | | Stock Code | 000785 | | Listing Exchange | Shenzhen Stock Exchange | | Legal Representative | Hao Jian | [Key Accounting Data and Financial Indicators](index=6&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) In 2018, revenue slightly increased by 1.18% to 4.04 billion dollars, but net profit attributable to shareholders significantly decreased by 81.44% to 66.36 million dollars due to large asset disposal gains in the prior year, while non-recurring adjusted net profit grew by 135.16%, indicating improved core business profitability 2018 Annual Key Financial Data | Indicator | 2018 | 2017 | Year-over-Year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (dollars) | 4,043,730,920.64 | 3,996,625,654.56 | 1.18% | | Net Profit Attributable to Listed Company Shareholders (dollars) | 66,362,381.25 | 357,535,294.19 | -81.44% | | Net Profit Attributable to Listed Company Shareholders (Excluding Non-recurring Items) (dollars) | 22,795,668.25 | 9,693,504.39 | 135.16% | | Net Cash Flow from Operating Activities (dollars) | 239,058,897.42 | 288,016,513.34 | -17.00% | | Basic Earnings Per Share (dollars/share) | 0.26 | 1.42 | -81.69% | | Weighted Average Return on Net Assets | 5.86% | 37.49% | -31.63% | | Total Assets (dollars) | 2,725,958,558.97 | 2,831,507,312.57 | -3.73% | | Net Assets Attributable to Listed Company Shareholders (dollars) | 1,148,567,253.33 | 1,132,449,211.68 | 1.42% | - Non-current asset disposal gains in 2018 were **61.75 million dollars**, a significant decrease from **390 million dollars** in 2017, which was the primary reason for the substantial year-over-year decline in net profit attributable to shareholders[15](index=15&type=chunk) [Section III Business Overview](index=9&type=section&id=Section%20III%20Business%20Overview) This section provides an overview of the company's main business operations and its core competitive advantages [Company's Main Business and Core Competencies](index=9&type=section&id=Company%27s%20Main%20Business%20and%20Core%20Competencies) The company primarily operates retail businesses including modern department stores, shopping centers, and supermarkets, with its network centered in Wuhan and radiating across Hubei province, leveraging its regional market position, prime self-owned properties, management team, and omnichannel strategy - The company's main business formats are modern department stores, shopping centers, and supermarkets, operating **9 department stores**, **1 shopping center**, and **51 supermarkets**, primarily located in Wuhan and 10 major cities within Hubei province[19](index=19&type=chunk) - In 2018, department store format revenue accounted for **49.39%** of total revenue, while supermarket format accounted for **43.53%**[21](index=21&type=chunk) - The company's core competencies include a leading regional market position, cost advantages from self-owned properties in prime commercial districts, a professional management team, and an integrated online-offline omnichannel operating capability[24](index=24&type=chunk) [Section IV Management Discussion and Analysis](index=11&type=section&id=Section%20IV%20Management%20Discussion%20and%20Analysis) This section discusses the company's operational performance, industry-specific information, main business analysis, and future development outlook [Overview of Operations](index=11&type=section&id=Overview%20of%20Operations) In 2018, the company achieved **4.04 billion dollars** in revenue, a 1.18% increase, with net profit attributable to shareholders significantly declining due to reduced asset disposal gains, yet non-recurring adjusted net profit grew by 135.16%, indicating improved core business profitability, while various formats actively transformed, promoting smart retail and omnichannel integration - During the reporting period, the company's operating revenue was **4.04 billion dollars**, a **1.18%** year-over-year increase; net profit attributable to shareholders was **66.36 million dollars**, an **81.44%** year-over-year decrease, primarily due to a **330 million dollars** reduction in asset disposal gains compared to the previous year[25](index=25&type=chunk) - The supermarket format focused on direct procurement and self-operation, with direct procurement sales accounting for **17%** and a gross margin of **13.8%**; it also collaborated with Ant Alliance to develop its private label "Zhongshang Youxuan," achieving a gross margin of **39%**[26](index=26&type=chunk) - The Xiaopinmao Shopping Center, positioned as a "consumption hub for urban young new families," achieved operating revenue of **240 million dollars** and total profit of **105 million dollars**[26](index=26&type=chunk) - The company actively developed smart retail, promoted the "counter checkout" system, and expanded online channels through platforms like "JD Daojia," with self-checkout orders accounting for **15.85%** of total orders in standard supermarkets[27](index=27&type=chunk) [Retail Industry Operating Information](index=12&type=section&id=Retail%20Industry%20Operating%20Information) During the reporting period, the company opened **11 new campus supermarkets** with no store closures, with department store and shopping center formats profitable while supermarkets incurred losses, accumulating **1.436 million members** accounting for **40.15%** of sales, achieving **6.899 million dollars** in online transactions via third-party platforms, and with the top five suppliers accounting for **8.38%** of total purchases 2018 Operating Performance by Business Format | Format | Number of Stores | Operating Revenue (CNY in 10,000s) | Net Profit (CNY in 10,000s) | Net Profit YoY Change | Efficiency (CNY/㎡/year) | | :--- | :--- | :--- | :--- | :--- | :--- | | Department Store | 9 | 199,715.54 | 4,103.40 | 18.86% | 9,121.39 | | Supermarket | 51 | 176,042.12 | -2,365.62 | -124.18% | 10,021.83 | | Shopping Center | 1 | 24,009.24 | 7,881.96 | 17.39% | 2,182.67 | - As of the end of 2018, the company's total membership reached **1,435,648**, with member sales accounting for **40.15%**; online transaction volume through third-party platforms like "JD Daojia" was **6.899 million dollars**[32](index=32&type=chunk) - The company's top five suppliers accounted for **276 million dollars** in purchases, representing **8.38%** of the total annual procurement[32](index=32&type=chunk) [Main Business Analysis](index=14&type=section&id=Main%20Business%20Analysis) The company's main business is divided into commercial and leasing segments, both achieving year-over-year growth in revenue and gross margin, with the commercial segment at **18.74%** and leasing at **65.63%**, while finance expenses significantly decreased by **77.16%** due to reduced net interest expenses, and net cash flow from investing activities declined by **61.47%** due to lower asset disposal gains Operating Performance by Industry Segment | Industry Segment | Operating Revenue (dollars) | Operating Cost (dollars) | Gross Margin | Operating Revenue YoY Change | Operating Cost YoY Change | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Commercial | 3,757,576,681.05 | 3,053,292,566.31 | 18.74% | 0.92% | 0.07% | 0.69% | | Leasing | 280,578,351.27 | 96,445,288.72 | 65.63% | 5.48% | -6.84% | 4.55% | Period Expense Changes | Expense Item | 2018 (dollars) | 2017 (dollars) | Year-over-Year Change | Significant Change Explanation | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 44,919,649.92 | 43,630,540.62 | 2.95% | / | | Administrative Expenses | 671,498,579.79 | 628,091,247.90 | 6.91% | / | | Finance Expenses | 6,835,928.75 | 29,928,360.86 | -77.16% | Primarily due to reduced net interest expenses | - Cash inflow from investing activities decreased by **83.63%** year-over-year, and outflow decreased by **89.88%**, primarily due to reduced investments in and redemptions of bank wealth management products, as well as lower asset disposal gains[45](index=45&type=chunk) [Outlook on Company's Future Development](index=22&type=section&id=Outlook%20on%20Company%27s%20Future%20Development) The company will adhere to three strategic directions—department store shopping center transformation, direct procurement and self-operation, and omnichannel management—to transform into an "Internet+" technology-driven smart commercial group, aiming for approximately **4 billion dollars** in revenue in 2019, while acknowledging operational and management risks during this transformation - Company development strategy: Adhere to three main directions—department store shopping center transformation, direct procurement and self-operation, and omnichannel management—to evolve into a new "Internet+" omnichannel, technology-driven, diversified commercial group[60](index=60&type=chunk) - 2019 operating target: Strive to achieve operating revenue of approximately **4 billion dollars**[61](index=61&type=chunk) - Key points of the 2019 operating plan include: repositioning the department store format, developing new supermarket models like "Youpin Hui" and community mini-supermarkets, creating IP-driven marketing for Xiaopinmao, and optimizing smart information systems with a focus on "mini-programs"[61](index=61&type=chunk)[62](index=62&type=chunk) - The main risks faced by the company are intensified industry competition, and the difficulties and risks associated with strategic transformation and operational innovation in terms of resource integration and operational management[64](index=64&type=chunk) [Section V Significant Matters](index=26&type=section&id=Section%20V%20Significant%20Matters) This section details the company's profit distribution plans, ongoing commitments, major litigation, related party transactions, and other significant events [Profit Distribution and Commitments](index=26&type=section&id=Profit%20Distribution%20and%20Commitments) The company proposes no profit distribution for 2018 to ensure sustainable development, and the controlling shareholder Wuhan Shanglian (Group) Co., Ltd.'s commitment to resolve horizontal competition issues remains ongoing - The Board of Directors has decided not to distribute cash dividends, bonus shares, or convert capital reserves into share capital for 2018, to meet the company's operational needs and ensure sustainable development[69](index=69&type=chunk)[71](index=71&type=chunk) - Controlling shareholder Wuhan Shanglian (Group) Co., Ltd. committed in July 2014 to gradually resolve horizontal competition issues with Wushang Group and Zhongbai Group within five years, and this commitment is still being fulfilled[73](index=73&type=chunk) [Major Litigation and Related Party Transactions](index=29&type=section&id=Major%20Litigation%20and%20Related%20Party%20Transactions) During the reporting period, the company was involved in multiple lawsuits concerning housing lease contracts, and also disclosed a significant related party transaction related to the "three supplies and one property" separation and transfer, aiming to divest social functions and reduce operational burdens - The company is involved in multiple major lawsuits, primarily concerning housing lease contract disputes, with some cases concluded or settled, and others still ongoing[84](index=84&type=chunk)[85](index=85&type=chunk) - In November 2018, the company approved a resolution regarding the separation and transfer of "three supplies and one property" (water, electricity, heating, and property management) for enterprises, which constitutes a related party transaction aimed at divesting social functions of state-owned enterprises and reducing their burdens[91](index=91&type=chunk) [Other Significant Matters](index=37&type=section&id=Other%20Significant%20Matters) Post-reporting period, in January 2019, the company disclosed a major asset restructuring plan to acquire 100% equity of Easyhome New Retail via share issuance, which is expected to constitute a backdoor listing, changing the controlling shareholder to Easyhome Holdings and the ultimate controller to Wang Linpeng - In January 2019, the company announced plans for a major asset restructuring, intending to acquire **100%** equity of Beijing Easyhome Furnishing New Retail Chain Group Co., Ltd. through share issuance[108](index=108&type=chunk) - The preliminary valuation of this transaction is no less than **36.3 billion dollars**, constituting a backdoor listing; upon completion, the listed company's controlling shareholder will change to Easyhome Holdings, and the ultimate controller will become Wang Linpeng[108](index=108&type=chunk) [Section VI Share Changes and Shareholder Information](index=39&type=section&id=Section%20VI%20Share%20Changes%20and%20Shareholder%20Information) This section details changes in the company's share capital and provides an overview of its shareholder structure [Share Changes and Shareholder Structure](index=39&type=section&id=Share%20Changes%20and%20Shareholder%20Structure) During the reporting period, the company's total share capital of **251 million shares** remained unchanged, with **19,114 shareholders** as of year-end 2018, and Wuhan Shanglian (Group) Co., Ltd. as the controlling shareholder with **41.25%** stake, while the actual controller is Wuhan State-owned Assets Management Co., Ltd - The company's total share capital remained unchanged during the reporting period, with a total of **251,221,698 shares**[112](index=112&type=chunk) Top Three Shareholders' Holdings (as of end of 2018) | Shareholder Name | Shareholder Nature | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Wuhan Shanglian (Group) Co., Ltd. | State-owned Legal Person | 41.25% | 103,627,794 | | Hubei Provincial High-tech Industry Investment Group Co., Ltd. | State-owned Legal Person | 1.75% | 4,406,387 | | Greenland Financial Investment Holdings Group Co., Ltd. | Domestic Non-state-owned Legal Person | 0.75% | 1,886,274 | - The company's controlling shareholder is Wuhan Shanglian (Group) Co., Ltd., and the actual controller is Wuhan State-owned Assets Management Co., Ltd., which is a local state-owned enterprise[121](index=121&type=chunk)[122](index=122&type=chunk) [Section IX Corporate Governance](index=50&type=section&id=Section%20IX%20Corporate%20Governance) This section describes the company's corporate governance framework and its adherence to regulatory requirements [Overview of Corporate Governance](index=50&type=section&id=Overview%20of%20Corporate%20Governance) The company operates strictly in accordance with relevant laws and regulations, maintaining a sound governance structure and independence from its controlling shareholder in business, personnel, assets, organization, and finance, while acknowledging and committing to resolve horizontal competition issues with Wushang Group and Zhongbai Group, and its internal control self-assessment indicates an effective internal control system - The company's corporate governance practices comply with the requirements of relevant CSRC documents, maintaining complete independence from its controlling shareholder in business, personnel, assets, organization, and finance[139](index=139&type=chunk)[141](index=141&type=chunk) - The company faces horizontal competition issues as its controlling shareholder, Wuhan Shanglian, also controls Wushang Group and Zhongbai Group; the controlling shareholder has committed to resolving this issue, and progress is ongoing[142](index=142&type=chunk) - The company's Board of Directors has three special committees: Strategy, Audit, and Nomination & Remuneration, all of which performed their duties normally during the reporting period[147](index=147&type=chunk) - According to the internal control evaluation report, the company maintained effective internal controls over financial reporting in all material aspects in accordance with the "Basic Norms for Enterprise Internal Control," with no material weaknesses identified in financial or non-financial reporting[151](index=151&type=chunk) [Section XI Financial Report](index=56&type=section&id=Section%20XI%20Financial%20Report) This section presents the company's audited financial statements and the auditor's report [Audit Report](index=56&type=section&id=Audit%20Report) Zhongshen Zhonghuan Certified Public Accountants issued a standard unqualified audit opinion on the company's 2018 financial report, with key audit matters being "recognition of commercial retail revenue" and "determination of significant asset disposals" - The auditing firm, Zhongshen Zhonghuan Certified Public Accountants (Special General Partnership), issued a standard unqualified audit opinion[153](index=153&type=chunk) - Key audit matters include: - **Recognition of Commercial Retail Revenue**: Due to the high volume, small transaction value, and predominantly cash nature of retail business, the accuracy of revenue recognition is crucial[154](index=154&type=chunk) - **Determination of Significant Asset Disposals**: This year, **62.7474 million dollars** in asset disposal gains were recognized, significantly impacting total profit, making the accuracy of their recognition timing and measurement a key audit focus[156](index=156&type=chunk) [Key Financial Statements](index=59&type=section&id=Key%20Financial%20Statements) As of year-end 2018, the company's total assets were **2.73 billion dollars**, total liabilities **1.41 billion dollars**, and asset-liability ratio **51.77%**, with full-year total operating revenue of **4.04 billion dollars**, total profit of **167 million dollars**, net profit of **110 million dollars**, and net cash flow from operating activities of **239 million dollars** Consolidated Balance Sheet Key Items (as of end of 2018) | Item | Amount (dollars) | | :--- | :--- | | Cash and Cash Equivalents | 851,927,272.64 | | Inventories | 255,520,796.94 | | Fixed Assets | 611,775,130.36 | | Investment Properties | 485,675,340.93 | | **Total Assets** | **2,725,958,558.97** | | Short-term Borrowings | 70,000,000.00 | | Notes Payable and Accounts Payable | 413,329,996.84 | | Long-term Borrowings | 132,150,000.00 | | **Total Liabilities** | **1,411,330,374.99** | | Equity Attributable to Parent Company Owners | 1,148,567,253.33 | | **Total Owners' Equity** | **1,314,628,183.98** | Consolidated Income Statement Key Items (2018) | Item | Amount (dollars) | | :--- | :--- | | Total Operating Revenue | 4,043,730,920.64 | | Total Operating Costs | 3,932,688,815.46 | | Asset Disposal Gains | 62,747,423.70 | | **Operating Profit** | **181,591,258.81** | | **Total Profit** | **166,980,969.29** | | **Net Profit** | **110,126,720.84** | | Net Profit Attributable to Parent Company Owners | 66,362,381.25 |

武汉中商集团股份有限公司 2018 年第三季度报告全文 武汉中商集团股份有限公司 WUHAN ZHONGSHANG COMMERCIAL GROUP CO.,LTD 2018 年 第三季度报告全文 2018 年 10 月 1 ———————— 武汉中商集团股份有限公司 2018 年第三季度报告全文 第一节 重要提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整，不存在虚 假记载、误导性陈述或者重大遗漏，并承担个别和连带的法律责任。 所有董事均已出席了审议本次季报的董事会会议。 公司负责人郝健、主管会计工作负责人刘自力及会计机构负责人(会计主管人员)高运兰声明：保证季 度报告中财务报表的真实、准确、完整。 2 武汉中商集团股份有限公司 2018 年第三季度报告全文 第二节 公司基本情况 一、主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期末 | 上年度末 | | 本报告期末比上年度末增减 | | --- | --- | --- | --- | --- | | 总资产（元） | 2,624,776,774.71 | 2,831,5 ...

Financial Performance - The company's operating revenue for the first half of 2018 was CNY 2,057,475,597.58, representing a 1.96% increase compared to CNY 2,018,016,434.16 in the same period last year[16]. - The net profit attributable to shareholders was CNY 102,199,193.20, a significant increase of 129.76% from CNY 44,480,239.34 in the previous year[16]. - The net profit after deducting non-recurring gains and losses was CNY 56,501,338.60, up 29.43% from CNY 43,655,382.89 year-on-year[16]. - The basic earnings per share rose to CNY 0.41, an increase of 127.78% compared to CNY 0.18 in the same period last year[16]. - In the first half of 2018, the company achieved operating income of CNY 2.057 billion, a year-on-year increase of 1.96%, and a total profit of CNY 165.80 million, up 100.71%[32]. - The net profit attributable to shareholders reached CNY 102.20 million, representing a year-on-year growth of 129.76%, primarily due to compensation income of CNY 55.76 million from property acquisition[32]. - The gross profit margin increased by 1.22 percentage points, while financial expenses decreased, contributing to improved profitability[32]. - The company reported a net profit of CNY 31.05 million for Wuhan Zhongshang Department Store Chain Co., Ltd., a 23.72% increase year-on-year due to improved gross margin and reduced asset usage costs[57]. - The company reported a net profit of ¥235,454,554.91 for the fiscal year 2017, with a profit distribution plan approved to distribute ¥2.00 per 10 shares to shareholders[87]. - Net profit for the first half of 2018 reached CNY 124,243,807.29, up from CNY 62,809,213.80 in the same period last year, indicating a significant growth[119]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 2,621,393,630.13, a decrease of 7.42% from CNY 2,831,507,312.57 at the end of the previous year[16]. - The total assets of the company at the end of the reporting period were CNY 1,549,557,533.51, down from CNY 1,674,797,951.88 at the beginning of the year[114]. - The total liabilities decreased to CNY 449,139,078.71 from CNY 594,293,187.00 at the beginning of the year, showing a reduction in financial obligations[115]. - The company's total assets included CNY 703.88 million in cash and cash equivalents, representing 26.85% of total assets[48]. - The company's current assets totaled RMB 1,136,355,648.80, down from RMB 1,318,850,458.23, indicating a decrease of about 13.8%[109]. - The total liabilities decreased to RMB 1,290,248,359.70 from RMB 1,543,246,343.98, a reduction of approximately 16.4%[110]. - The company's equity remained stable with total equity at RMB 1,331,145,270.43, reflecting no significant changes during the reporting period[110]. Cash Flow - The company reported a net cash flow from operating activities of CNY -10,055,312.68, a decline of 123.86% compared to CNY 42,141,559.36 in the same period last year[16]. - The company's cash flow from operating activities showed a net outflow of CNY 10.06 million, a significant decline compared to a net inflow of CNY 42.14 million in the same period last year[41]. - The company reported a net cash flow from operating activities of -79,556,906.40, a significant decrease compared to 16,191,195.99 in the previous period[130]. - Cash flow from financing activities showed a net outflow of -131,677,472.95, compared to -111,781,657.28 in the previous period[131]. - The company received cash from the recovery of investments totaling 204,041,874.53, a decrease from 749,732,294.39 in the previous period[130]. Retail and Market Trends - The online retail sales in China reached CNY 4.1 trillion in the first half of 2018, growing by 30.1% year-on-year, indicating a strong shift towards e-commerce[25]. - The retail industry in China faced challenges with a slowdown in growth, as the total retail sales of consumer goods reached CNY 18 trillion, growing by 9.4% year-on-year, which is a decrease from previous growth rates[25]. - The company's main business revenue accounted for 94.05% of total operating income, with department stores contributing 48.68% and supermarkets 44.66%[26]. - The company operates 9 modern department stores, 1 shopping center, and 40 various supermarkets across 10 major cities, primarily in Hubei province[25]. - Membership sales contributed 36.84% to total sales, highlighting the effectiveness of the company's membership marketing strategy[34]. Investment and Financing - The company obtained a short-term loan of CNY 72 million, secured by investment properties with a net value of CNY 75.36 million[50]. - The company reported an investment income of CNY 2,210,190.90, compared to CNY 1,664,547.75 in the previous year, indicating improved investment performance[117]. - The company reported a significant decrease in financial expenses by 74.19%, primarily due to increased interest income and reduced interest expenses[41]. - The company has no significant equity investments during the reporting period[51]. - The company has no securities or derivative investments during the reporting period[53][54]. Risk Management and Legal Issues - The company faces risks related to the retail industry's dependence on economic growth, which may affect consumer spending and confidence[60]. - The company is enhancing its risk management capabilities through transformation, innovation in business models, and cost control measures[61]. - The company reported a significant lawsuit involving a claim of approximately 20.78 million yuan related to a lease dispute[69]. - The company reported a loss of 29.9 million yuan related to a rental contract dispute, with additional costs of 5.32 million yuan for property management fees[70]. Corporate Governance and Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 20,295[93]. - The largest shareholder, Wuhan Shunlian (Group) Co., Ltd., holds 41.25% of the shares, totaling 103,627,794 shares[93]. - The company plans to not distribute cash dividends or issue bonus shares for the half-year period[65]. - The company has not engaged in any targeted poverty alleviation initiatives during the reporting period and has no plans for future initiatives[86]. - The company did not conduct any capital reserve transfers to increase share capital during the reporting period[87]. Accounting Policies and Financial Reporting - The financial report was approved by the board on August 28, 2018[145]. - The financial statements are prepared based on the going concern principle, reflecting the company's financial position, operating results, and cash flows accurately[148]. - The group uses Renminbi as its functional currency for accounting purposes[151]. - The group applies the equity method for accounting treatment in business combinations under common control, measuring assets and liabilities at the book value of the acquired entity[152]. - The group recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired[155].

Financial Performance - The company's operating revenue for Q1 2018 was ¥1,120,910,509.59, representing a 4.32% increase compared to ¥1,074,527,151.54 in the same period last year[8] - Net profit attributable to shareholders was ¥68,849,395.41, a significant increase of 237.59% from ¥20,394,660.11 in the previous year[8] - The net profit after deducting non-recurring gains and losses was ¥23,461,586.95, up 23.68% from ¥18,969,309.98 year-on-year[8] - The basic earnings per share increased to ¥0.27, reflecting a growth of 237.50% compared to ¥0.08 in the same period last year[8] - The weighted average return on equity rose to 5.90%, an increase of 3.30 percentage points from 2.60% in the previous year[8] - Operating profit rose by 173.25% to ¥107,414,692.93, mainly due to the recognition of asset disposal gains from Zhongshan Avenue[16] - Net profit increased by 170.41% to ¥79,894,410.24, attributed to the asset disposal gains[16] - The company’s total profit rose by 169.10% to ¥107,501,326.44, mainly due to the asset disposal gains[16] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,694,670,214.31, down 4.83% from ¥2,831,507,312.57 at the end of the previous year[8] - Net assets attributable to shareholders increased to ¥1,201,298,607.09, a growth of 6.08% from ¥1,132,449,211.68 at the end of the previous year[8] - Accounts receivable increased by 83.05% to ¥84,902,422.64 due to an increase in group purchase payments[16] - Prepayments decreased by 48.33% to ¥26,192,209.77 primarily due to a reduction in advance payments to suppliers[16] Cash Flow - The net cash flow from operating activities was negative at -¥75,539,207.85, worsening by 159.18% compared to -¥29,145,890.40 in the same period last year[8] - Cash flow from operating activities showed a net outflow of ¥75,539,207.85, worsening by 159.18% compared to the previous year due to increased salary payments and taxes[16] - Investment cash inflows decreased by 59.56% to ¥209,235,005.50, primarily due to reduced cash recovery from bank financial investments[16] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 21,259, with the largest shareholder holding 41.25% of the shares[12] - The total distributable profit available for shareholders was ¥512,319,020.63, after accounting for a 10% statutory surplus reserve of ¥23,545,455.49 and retained earnings of ¥300,409,921.21[22] - The total number of shares for dividend distribution is 251,221,698, based on the company's current share capital[22] - The remaining distributable profit of ¥462,074,681.03 will be carried forward to the next fiscal year[22] Non-Recurring Gains and Legal Matters - The company reported non-recurring gains of ¥45,387,808.46 after tax, which included gains from the disposal of non-current assets and government subsidies[9] - The company is currently involved in a civil lawsuit with a claim amount of ¥10,380,000, with a court mediation resulting in a payment agreement of ¥9,985,600 from Tianyuan Company, which has not yet been received[21] Corporate Governance and Compliance - The company has no securities or derivative investments during the reporting period[25][26] - There are no violations regarding external guarantees or non-operating fund occupation by controlling shareholders during the reporting period[28][29] - The company is in the process of fulfilling a commitment to resolve industry competition issues within five years, initiated on July 21, 2014[23] - The company has not provided any warnings regarding significant changes in net profit for the first half of 2018[24] - The company held multiple investor communications throughout January to March 2018, indicating ongoing engagement with stakeholders[27] Employee Compensation - The company’s cash paid to employees increased by 30.64% to ¥138,178,578.70, reflecting higher salary payments[16]

Financial Performance - The company's operating revenue for 2017 was CNY 3,996,625,654.56, a decrease of 0.35% compared to CNY 4,010,812,749.41 in 2016[18]. - The net profit attributable to shareholders of the listed company reached CNY 357,535,294.19, a significant increase of 17,416.64% from CNY 2,041,117.69 in the previous year[18]. - The net profit after deducting non-recurring gains and losses was CNY 9,693,504.39, up 153.43% from CNY 3,824,882.37 in 2016[18]. - The net cash flow from operating activities was CNY 288,016,513.34, representing a 25.69% increase from CNY 229,146,959.67 in 2016[19]. - Basic earnings per share were CNY 1.42, a dramatic rise of 14,100.00% compared to CNY 0.01 in 2016[19]. - The weighted average return on net assets was 37.49%, an increase of 37.23 percentage points from 0.26% in the previous year[19]. - Total assets at the end of 2017 were CNY 2,831,507,312.57, a decrease of 1.25% from CNY 2,867,347,158.38 at the end of 2016[19]. - The net assets attributable to shareholders of the listed company increased by 46.14% to CNY 1,132,449,211.68 from CNY 774,913,917.49 in 2016[19]. Revenue Trends - In Q1 2023, the company reported revenue of ¥1,074,527,151.54, while Q2 and Q3 saw declines to ¥943,489,282.62 and ¥862,216,910.34 respectively, before rebounding to ¥1,116,392,310.06 in Q4[23]. - The company's main business revenue accounted for 94.59% of total revenue, with department store sales contributing 49.73% and supermarket sales 43.43%[31]. - In 2017, the company achieved total revenue of ¥3,997,000,000, a slight decrease of 0.35% year-on-year, while net profit attributable to shareholders increased significantly by 35,549.42 million to ¥357,535,300[37]. Market Position and Strategy - The company operates 9 department stores, 1 shopping center, and 40 supermarkets across major cities in Hubei province, indicating a strong regional presence[28]. - The company is focusing on multi-channel operations, integrating e-commerce with physical stores, leading to an increase in user engagement on its APP platform[34]. - The company has a stable market position in Hubei, benefiting from local economic policies aimed at enhancing consumption and supporting retail growth[30]. - The company is actively exploring community micro-supermarkets and has opened 9 campus supermarkets to cater to student preferences[38]. - The company is collaborating with international trade companies to import goods from Europe and Central Asia, optimizing the product structure of existing supermarkets[39]. Operational Adjustments - The company closed 4 underperforming stores due to strategic adjustments, resulting in a total leased area of 32,402.98 square meters being removed from operations[42]. - The company opened 9 new stores during the reporting period, including 4 supermarkets and 5 department stores, with a total leased area of 2,441.59 square meters[41]. - The company achieved a profit growth of 7.83% year-on-year, maintaining stable main business operations with a brand adjustment rate of 29%[38]. Cash Flow and Investments - Cash flow from operating activities increased by 25.69% to CNY 288 million, primarily due to reduced cash payments for goods and services[61]. - Cash flow from investing activities surged by 305.38% to CNY 348 million, mainly due to increased cash from maturing financial products[61]. - The net increase in cash and cash equivalents was CNY 282 million, a significant rise of 2,263.23% year-over-year[61]. Shareholder Information - The company plans to distribute a cash dividend of CNY 2.00 per 10 shares (including tax) based on a total of 251,221,698 shares[6]. - The distributable profit for 2017 was RMB 512,319,020.63, with RMB 462,074,681.03 carried forward to the next year[96]. - The cash dividend payout ratio for 2017 was 14.05% of the net profit attributable to shareholders[95]. Risk Management - The company faces risks from economic slowdowns affecting consumer spending and increased competition from both domestic and international retail brands[86][87]. - The company is committed to enhancing its risk management capabilities through cost control and refined budget management practices[88]. Corporate Governance - The company has a structured approach to board composition, ensuring a mix of experience and independence among its directors[152]. - The company is committed to transparency and accountability in its operations, as evidenced by the detailed reporting of management changes and qualifications[153]. - Independent directors attended 8 board meetings during the reporting period, with a participation rate of 100%[172]. Employee Information - The total number of employees in the company is 5,208, with 4,680 in major subsidiaries and 528 in the parent company[160]. - The company implements a salary policy that ensures a minimum growth of 10% in total labor costs while promoting differentiated incentive plans[161]. - The company has established a training management system to enhance leadership and business management training[162].

Financial Performance - Net profit attributable to shareholders was CNY -9,817,975.20, a decline of 35.82% year-on-year[9] - Basic earnings per share were CNY -0.04, a decrease of 33.33% compared to the same period last year[9] - Net profit attributable to shareholders increased by 86.91% to CNY 34,662,264.14, driven by higher total profit[17] - Net profit for the period was reported at -¥489,647.90, an improvement from -¥6,528,346.79 in the previous period[44] - Net profit for the quarter reached CNY 10,960,390.21, a significant improvement from a net loss of CNY 3,840,670.02 in the previous year[48] - The net profit attributable to the parent company was CNY 34,662,264.14, up from CNY 18,544,751.98 in the previous year[52] - The total profit for the current period is 775,928.52, compared to a loss of 1,629,419.74 in the previous period[55] - The total comprehensive income for the quarter was CNY 10,960,390.21, compared to a loss of CNY 3,840,670.02 in the same period last year[48] - The total comprehensive income for the current period is 775,928.52, compared to a loss of 1,629,419.74 in the previous period[55] Revenue and Costs - Operating revenue for the reporting period was CNY 862,216,910.34, an increase of 3.63% compared to the same period last year[9] - Total operating revenue for the period reached ¥862,216,910.34, an increase of 3.3% compared to ¥832,021,773.60 in the previous period[43] - Total operating costs amounted to ¥860,350,160.68, up from ¥832,062,786.38, reflecting a rise of 3.4%[44] - Total operating revenue for the third quarter was CNY 81,367,777.82, a decrease of 1.65% from CNY 82,732,541.96 in the previous period[47] - Operating costs decreased to CNY 67,371,615.72 from CNY 68,429,656.48, reflecting a cost reduction strategy[47] Cash Flow - The net cash flow from operating activities for the year-to-date was CNY 93,507,830.73, an increase of 44.54%[9] - Cash flow from operating activities increased by 44.54% to CNY 93,507,830.73, mainly due to reduced cash payments for goods[17] - The net cash flow from operating activities is 93,507,830.73, an increase from 64,695,026.88 in the previous period[58] - Cash inflow from investment activities is 1,236,218,311.36, significantly higher than 425,096,010.88 in the previous period[58] - The net cash flow from investment activities is 171,394,782.64, recovering from a loss of 61,049,154.72 in the previous period[58] - The net cash flow from financing activities is -254,586,567.41, worsening from -47,719,569.11 in the previous period[59] Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,751,221,490.93, a decrease of 4.05% compared to the end of the previous year[9] - The total liabilities decreased to ¥997,718,161.33 from ¥1,017,134,778.76, a reduction of approximately 1.5%[41] - The total equity attributable to shareholders rose to ¥809,576,181.63 from ¥774,913,917.49, marking a 4.5% increase[38] - The company's total assets amounted to 2,751,221,490.93 yuan, a decrease from 2,867,347,158.38 yuan at the beginning of the period[36] - Short-term borrowings decreased by 30.43% to CNY 240 million, reflecting a reduction in bank loans[17] - Short-term borrowings decreased to ¥180,000,000.00 from ¥250,000,000.00, a decline of 28.0%[40] Shareholder Information - The total number of shareholders at the end of the reporting period was 18,770[13] - The largest shareholder, Wuhan Shunlian (Group) Co., Ltd., held 41.25% of the shares[13] Investments and Joint Ventures - The company established a joint venture, Shiyan Zhongshang Huiyuan Commercial Management Co., Ltd., with an investment of CNY 10 million each[20] - The company is actively pursuing market expansion through new joint ventures and asset acquisitions[20] - Investment income rose by 200.83% to CNY 7,376,603.65, primarily due to increased returns from bank wealth management products[17] - The company reported a significant increase in investment income to ¥5,712,055.90 from ¥2,380,355.26, reflecting a growth of 139.5%[44] Legal Matters - The company is involved in a civil lawsuit against Wuhan Tianyuan Commercial Investment Co., Ltd. and Wuhan Huayun Real Estate Development Co., Ltd. regarding a housing lease contract dispute, with a claim amount of 10.38 million yuan[24] - The court mediation resulted in Tianyuan Company agreeing to pay 9,985,644 yuan, with Huayun Real Estate Company bearing joint liability, but the payment has not yet been received[24] Operational Changes - No significant new strategies or product developments were mentioned in the report[16] - The company plans to adjust and improve development plans for acquired assets based on market changes[18] - There are no non-operating fund occupations by controlling shareholders or related parties during the reporting period[30] - The company has not engaged in any securities or derivative investments during the reporting period[26][27]

Financial Performance - The company's operating revenue for the reporting period was CNY 2,018,016,434.16, a decrease of 2.13% compared to the same period last year[18]. - Net profit attributable to shareholders was CNY 44,480,239.34, representing a year-on-year increase of 31.43%[18]. - Basic earnings per share rose to CNY 0.18, up 38.46% from CNY 0.13 in the same period last year[18]. - The total profit reached CNY 82.61 million, an increase of 26.97% compared to the previous year[32]. - The company achieved operating revenue of 877.48 million yuan and a net profit of 1.71 million yuan during the reporting period, marking a turnaround from loss to profit due to reduced total expenses and fewer store closures[57]. - The company anticipates that the cumulative net profit from the beginning of the year to the next reporting period may experience significant fluctuations compared to the same period last year[58]. Cash Flow and Liquidity - The net cash flow from operating activities was CNY 42,141,559.36, a significant increase of 2,541.08% compared to the previous year[18]. - Cash inflow from operating activities totaled 2,364,762,773.42 yuan, while cash outflow was 2,322,621,214.06 yuan, resulting in a net cash flow of 42,141,559.36 yuan[114]. - The total cash and cash equivalents at the end of the period were 426,068,597.57 yuan, slightly down from 421,337,024.89 yuan in the previous period[115]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,600,797,276.59, a decrease of 9.30% from the end of the previous year[18]. - Total liabilities were CNY 1,627,989,298.45, down from CNY 1,954,948,394.04, showing a reduction of about 16.7%[99]. - The company's short-term borrowings decreased to CNY 310,000,000.00 from CNY 345,000,000.00, a reduction of about 10.1%[99]. - Accounts payable decreased significantly from CNY 376,348,408.88 to CNY 263,647,542.88, representing a decline of approximately 30%[99]. Business Operations - The company operates a retail business with a network of 9 modern department stores, 1 shopping mall, and 34 supermarkets across 13 major cities[26]. - The revenue structure shows that department store sales accounted for 48.72%, supermarket sales for 44.58%, and other formats for 6.70%[26]. - The company has not experienced significant changes in its main business operations or business model during the reporting period[27]. - The company plans to continue expanding its retail operations and improve profitability through cost management and margin enhancement strategies[55]. Subsidiaries and Joint Ventures - Wuhan Zhongshang Group's subsidiary, Wuhan Zhongshang Department Store, achieved revenue of 721.06 million yuan and net profit of 25.10 million yuan, with a year-on-year net profit growth of 26.64% due to improved gross margins and reduced expenses[55]. - The company established a joint venture with an investment of ¥10,000,000.00, holding a 50% stake in the new entity[47]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period is 19,378[84]. - The largest shareholder, Wuhan Shunlian (Group) Co., Ltd., holds 41.25% of the shares, totaling 103,627,794 shares[84]. - The total number of shares is 251,221,698, with 99.95% being unrestricted shares[82]. Financial Reporting and Compliance - The semi-annual financial report has not been audited, indicating a need for further financial scrutiny[64]. - The financial report was approved by the board on August 24, 2017[133]. - The company follows the accounting standards and principles as per the relevant regulations[137]. Risks and Challenges - The company faces risks from macroeconomic trends affecting consumer demand, requiring adaptation to a rapidly changing retail environment and competition from e-commerce[58]. - The company is currently addressing industry competition issues as part of a commitment made by its controlling shareholder, aiming to resolve conflicts among related listed companies within five years[63]. Cost Management - The sales expenses decreased by 16.43% due to reduced advertising and promotional costs[37]. - The management expenses decreased by 12.06% as certain taxes were reclassified, alongside reductions in various operational costs[37]. - The company plans to enhance operational quality and competitiveness by tightening cost control, improving performance evaluation systems, and increasing store efficiency[59].