Group 1 - Shenzhen Honggang Tianhong Mall will close on September 15, marking a trend of traditional department stores declining [1] - Tianhong's closure is part of a broader strategy as the company seeks new development opportunities, focusing on shopping centers and supermarkets [1] - Tianhong has faced performance pressures, with closures of multiple stores this year, including Huizhou Junshang and Zhuzhou Tianhong, resulting in significant one-time losses [1][2] Group 2 - Tianhong is actively pursuing a transformation in its retail business, upgrading its SP@CE3.0 supermarket brand and enhancing shopping center experiences [2] - The company reported a revenue of 6.009 billion yuan for the first half of 2025, a decrease of 1.79% year-on-year, with a slight decline in net profit [2] - The overall retail sector is experiencing pressure, with traditional "department store + supermarket" models losing appeal, leading to a mix of new openings and closures [2][3] Group 3 - Other retail companies like Yonghui Supermarket and Lianhua Supermarket are also facing declines, with Yonghui reporting a 20.73% drop in revenue and closing 227 stores [2][3] - Lianhua Supermarket opened 95 new stores while closing 121 underperforming ones, indicating a trend of dynamic adjustments in the industry [3] - The traditional supermarket sector is under increasing competition due to e-commerce, changing consumer habits, and the rise of community commerce, necessitating a search for new growth points [3]

Group 1: Supermarket Transformation and Performance - In 2024, the company implemented significant changes in its supermarket operations, launching nine lifestyle theme pavilions and a fulfillment center, with the first SP@CE3.0 opening on September 6, 2024, in Shenzhen Baoan [2] - The company standardized modifications in 5 stores and made partial adjustments in 17 stores, resulting in a doubling of sales within three days post-opening, with sustained year-on-year growth in customer traffic and sales [2] - The company is enhancing its vertical supply chain management to improve product offerings and meet customer demands more effectively [2] Group 2: Development of Private Brands - The company has developed several private brands, including "Tian Kou Wei" for fresh prepared foods, "Tian You" for packaged foods, and "Fei Er Fu" for daily necessities, with private brand sales exceeding 10% of total supermarket sales [2] Group 3: Shopping Center and Department Store Strategy - The company aims to transform its shopping centers into city-level benchmarks, focusing on innovation in first- and second-tier cities while leading in third- and fourth-tier cities [3] - The department stores are shifting towards community life centers, emphasizing quality-price retail and enhancing neighborhood social functions [3] Group 4: Digital Technology Development - Shenzhen Lingzhi Digital Technology Co., Ltd., established in 2019, provides digital commercial services and consulting, helping businesses enhance their digital capabilities [3] - In 2024, this subsidiary achieved a revenue of 133 million yuan, reflecting a year-on-year growth of 22.89% [3] Group 5: Expansion Plans - The company plans to open one shopping center each in Meizhou and Changsha this year [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]