According to the National Bureau of Statistics of China ("NBS”), real GDP in China grew 5.0% in the first half of 2024, marginally lower than the 5.5% growth rate in the first half of 2023 and 5.2% in 2023. Despite the steady GDP growth, domestic demand in China is less than robust as NBS reported retail sales of consumer goods growth of 3.7% in the first half of 2024. Retail sales growth becomes more moderate after a strong post-COVID-19 recovery due to weaker domestic and overseas economic growth. Against this backdrop, the retail environment becomes increasingly more challenging.

The Group took several measures over the past few years to improve the operating performance of our Fujian operations. We closed three stores in FY2023, two in FY2024, and one in August 2024. Closing these underperforming stores freed up resources for other stores. While we closed some stores, we remain open to new opportunities by opening a 4,000 sqm supermarket in Haicang District, Xiamen City, in March 2024. This store is located in the downtown area of Haicang and serves the shopping needs of its residents. As of September 2024, the Group has sixteen stores (thirteen self-owned and three managed) with a total gross floor area of about 200,000 sqm. Outside Fujian Province, the Group has two stores, with a 24.2% stake in a 200,000 sqm store, and a 50% stake in a 400,000 sqm store.

As for the performance of our Zhongmin Baihui stores in Fujian Province in FY2024, the Group recorded revenue of RMB 983.7 million, an increase of 1.7% from the previous financial year. Gross profit grew 7.3% in FY2024 to RMB 231.8 million. Profit before the share of results of associates and joint ventures was a loss of RMB 0.454 million in FY2024 versus a profit of RMB 1.880 million in the previous financial year. The performance of the Zhongmin Baihui stores in FY2024 reflects the ongoing realignment of our store network in Fujian Province.

The Group has two large outlet malls, the 200,000 sqm Changsha Sasseur (ZMBH) Outlets (“CSO") in Changsha City, Hunan Province, and the 400,000 sqm Wuxi Yueshang Outlets (“YSO”) in Wuxi City, Jiangsu Province. Contributions from these two outlet malls in our financial statements are presented as share of results of associated companies and joint ventures. The Group has an effective 24.2% interest in the operating and managing entity of CSO, Changsha Zhongmin Baihui Outlets Commercial Management Co., Ltd., and a 50% stake in Wuxi Shi Yueshang Outlets Co., the operator and manager of YSO. Opened in December 2018, CSO continues to deliver strong earnings, contributing a record profit of RMB 28.9m to the Group in FY2024, an increase of 33% as compared to the previous financial year. YSO, however, is in the gestation period, having opened for only two years since the opening on 9 September 2022. YSO contributed RMB 6.5 million of profit in FY2024 but this contribution was offset against accumulated unrecognised losses from previous years, which has been reduced to RMB 4.5 million as of 30 June 2024.  

The outlet mall sector, which the Group has ventured into since 2018, appears more resilient in this economic climate. Outlet malls offer various non-shopping activities to complement customers' purchasing activities. The Group’s outlet malls feature indoor basketball courts, diving and swimming pools, billiard/pool tables, health spas, children's amusement parks, go-kart rides, etc. Additionally, a good selection of medium to high-end culinary choices is available. Many nonretail activities are possible due to the open spaces in the malls. For instance, in November 2023, the International Basketball Federation (FIBA) 3x3 World Tour held a basketball tournament in the open areas of our Wuxi outlet mall. Occasionally, the Group invites entertainers to perform. A notable example of such performances would be a concert featuring Tang-Yi, a celebrity singer with millions of fans in China, singing at our Changsha outlet mall. We believe outlet mall visits should be fun, experiential, and family-oriented.  

An integrated commercial and residential complex owned by the Group's 30%-owned associated company, Citi-Base Commerce Logistics (Xiamen) Co., Ltd. (“Citi-Base”) commenced operations in late 2023. Citi-Base’s 668 apartment units have achieved near full occupancy after an effective marketing campaign. Occupancy in the 30,900 sqm retail complex is progressing well. The operating performance of Citi-Base is expected to improve due to higher rent revenue from leasing retail units and serviced apartments.  

The Group remains prudent with our cash flow management. In FY2024, the Group achieved positive net cash flow from operations of RMB 38.0 million, albeit down from RMB 89.2 million in the previous financial year. Over the same corresponding periods, our net current assets improved significantly from negative RMB 10.0 million in the previous financial year to negative RMB 2.6 million in FY2024.  

The Group achieved net profits of RMB 23.8 million in FY2024, an increase of 12.0% from the last financial year. Earnings per share for FY2024 is RMB 12.42 cents from RMB 11.08 cents in the previous financial year. Given our improved performance in fiscal 2024, we are pleased to declare a dividend payout of one Singapore cent per share to increase the confidence of our shareholders.  

Good corporate governance remains an integral part of our corporate culture. As part of the board rejuvenation plan, we are pleased to welcome two new independent directors to the Board, Mr. Zou Qige, a corporate lawyer practicing in China, and Mr. Yee Chia Hsing, who brings extensive experience in banking, senior corporate management, and community service.  

As we enter the new fiscal year, we are committed to enhancing our operating performance with the support of our stakeholders.

10 October 2024  

主席和总裁致词

我们很高兴代表董事会提交中闽百汇零售集团有限公司 2023年7月1日至2024年6月30日财政年度（“2024财年”）的年度报告。

根据中国国家统计局的数据，在2024年上半年，中国实际国内生产总值增长了5.0%，同比2023上半年的5.5%和2023年的5.2% 小幅下降。尽管国内生产总值稳步增长，但中国的国内斋求仍然具有挑战性。国象统计局还报告 2024年上半年中国消费品零售额增长3.7%，相比前年也有所放缓。在新冠肺炎疫情后强劲复苏后，由于目前国内外因素的经济放缓，参售销售增长变得更加温和。在此背景下，零售环境变得越来越具有挑战性。

集团自2018年以来涉足的奥菜行业在目前经济环境下似乎更具弹性。奥莱通常为中高等收入群体提供更高的性价比。此外，规模较大的商场还 提供各种非购物活动，以补充顾客的各种各样的消费活动.集团的奧菜设有室内篮球场、豌水和游泳池、台球、健康水疗中心、儿童游乐园、 卡丁车等、此外，还提供各种中高端美食选择，由于商场有巨大开放空间，许多非空售活动可举办。例如，2023年11月，国际篮球联合会（F1BA） 3x3世界巡回赛在我们无锡奥莱举办了一场篮球锦标赛，偶尔，集团也会邀请艺人表演，一个值得注意的例子是，在中国拥有数百万粉丝的著名歌手 唐怡在我们的长沙奥菜表演，我们认为，逛奥莱应该是有趣、体验式、以家庭为导向的消费。

本集团拥有 30%股权的港汇物流（厦门）有限公司（“Citi-Base”）的商住综合体在2023年末全面开发入住，经过有效的营销活动，Citi-Base 的668 套公寓几乎全部入住。30900平方米的拿售综合体的入住率进展顺利。由于租金从出租公寓与店面收入增加，Citi-Base 的经营业绩预计将有所改善。