Group 1: Company Strategy and Development - The company is committed to transforming and upgrading traditional retail, focusing on digital product empowerment and creating a dual-driven high-quality development model through industrial digitalization and digital industrialization [2] - In 2024, the company plans to innovate and upgrade its supermarket operations, launching nine lifestyle theme pavilions and a full-warehouse fulfillment center, with the first SP@CE3.0 located in Shenzhen [2] - The company has standardized modifications in 6 stores and made partial adjustments in 18 stores to enhance operational efficiency [2] Group 2: Financial Performance and Market Management - The company emphasizes the importance of investor returns and has established a "Market Value Management System" to enhance its value and communication with investors [3][4] - The company aims to strengthen its core business to improve operational performance and achieve better recognition in the capital market [5] - The average market capitalization of the company is considered reasonable at 2.5 to 3 billion [5] Group 3: Compliance and Risk Management - The company has not received any notification regarding the reduction of shares by its major shareholder, and it maintains a robust internal control and risk management system [4][5] - There are no indications of fund transfers or major shareholder fund occupation, ensuring compliance and protection of shareholder rights [5] Group 4: Data Management and Accounting - The company is monitoring policies related to the accounting treatment of enterprise data resources and is considering recognizing data resources as assets in line with its business model and digital development [3]

Group 1: Financial Performance - In the first half of 2025, the company achieved sales of 18.7 billion yuan, a year-on-year increase of 2.55% [2] - Operating revenue was 6.009 billion yuan, a year-on-year decrease of 1.79% [2] - Net profit attributable to shareholders was 154 million yuan, a year-on-year decrease of 0.05% [2] Group 2: Business Segment Performance - Supermarket revenue decreased by 1.95% year-on-year, but comparable store gross margin increased by 0.66 percentage points to 23.33% [2] - Shopping centers maintained growth with revenue increasing by 2.65% year-on-year [2] - Department stores faced challenges with a revenue decline of 9.3% year-on-year [2] Group 3: Digital Transformation and AI Integration - The company accelerated the upgrade and iteration of AI+ retail technology, enhancing the digital transformation strategy [2] - The GMV of the flexible labor platform (Xiao Huo Er) increased by 120% year-on-year [2] Group 4: Store Optimization and Upgrades - Five stores underwent standardization modifications, resulting in sales doubling within three days post-opening [3] - Seventeen stores received partial modifications, maintaining year-on-year growth in customer traffic and sales [3] - Over 20 shopping centers were upgraded in the first half of the year [4] Group 5: Cost Management and Asset Disposal - The company has been focusing on cost reduction and efficiency improvement, leading to increased asset disposal income [5] - Changes in lease agreements have resulted in the recognition of certain asset disposal gains [5] Group 6: Future Plans - The company is monitoring industry trends regarding membership stores but currently has no specific plans [6]

Group 1: Company Performance Overview - In Q1 2025, overall customer traffic increased by 13.8%, while revenue decreased by 2.18% year-on-year [1] - Shopping centers showed a revenue growth of 2.8% year-on-year, while department store revenue declined by nearly 9% [1] - Supermarket revenue decreased by 2.2%, but the decline was less significant, with a comparable store gross margin increasing by 0.7 percentage points [1] - Total expenses decreased by 2% year-on-year in Q1 2025, following a 5% reduction in total expenses for 2024 [1] Group 2: SP@CE3.0 Brand Upgrade - The SP@CE3.0 brand was launched on September 6, 2024, in Shenzhen, featuring nine lifestyle theme pavilions and a full warehouse fulfillment center [2] - The proportion of fresh and cooked food increased to 45%, while packaged food and daily necessities saw a decline [2] - Daily average customer transaction volume increased by 42% from September to December 2024, and by approximately 38% in Q1 2025 [2] - Plans for 2025 include standardizing and modifying 5 stores and partially adjusting 18 stores to enhance the SP@CE3.0 brand [2] Group 3: Transformation Directions for Shopping Centers and Department Stores - Shopping centers aim to create influential benchmark stores through product innovation, space design, and scenario operations [3] - The focus for department stores will be on urban center stores catering to upgraded consumption needs and community stores emphasizing quality-price retail [3] - Plans include opening 2 new shopping centers in Changsha and Meizhou in 2025 [4] Group 4: Development of Lingzhi Digital Technology - Lingzhi Digital Technology developed the "Bailing Bird" AI model in 2024, with continued investment in AI and algorithm research [5] - The AI model enhances customer experience and operational efficiency, contributing to a 30.5% year-on-year revenue growth in Q1 2025 [5] - The revenue increase is primarily driven by the growth of the "Xiao Huer" flexible labor platform, which integrates gig work, recruitment management, and intelligent scheduling [5] Group 5: Cash Flow and Financial Management - The decline in net cash flow from operating activities in Q1 2025 was attributed to reduced cash receipts from sales and timing issues with supplier payments [7]