I. Discussion and analysis of operating conditions

In the first half of 2020, all employees of Yimin Group, under the leadership of the board of directors and management of the company, worked hard to overcome various problems caused by the COVID-19 epidemic in accordance with the overall development idea of "careful calculation, cost reduction and efficiency increase, strict budget, moderate adjustment and long-term layout" determined at the beginning of the year.

A kind of adverse effects, fully implement the brand strategy, actively carry out investment and leasing work, focus on promoting major asset restructuring, and promote enterprise reform, transformation and redevelopment. All major work progressed smoothly throughout the year.

(a), lay a solid foundation to ensure that the main tasks in the first half of the year are completed as scheduled.

During the reporting period, faced with the adverse impact of the COVID-19 epidemic on the domestic economy, especially the consumer industry, the company calmly responded to the challenges, made appropriate adjustments through measures such as reducing inventory, reducing costs, increasing efficiency, expanding channels, adjusting structure, tapping potential, etc., and laid a solid foundation, and all major work progressed smoothly. In the first half of the year, the company realized operating income of 586 million yuan and net profit of 65.438+0,654.38+0.2893 million yuan.

(2) Adjust and transform, and actively promote the redevelopment of traditional brands.

During the reporting period, ancient and modern companies actively adapted to the market and actively expanded emerging channels. First, cooperate with the professional WeChat business team to conduct WeChat marketing through new retail channels such as ancient and modern-cutting customers; Second, according to the customer group characteristics of platforms such as Oriental CJ, actively develop new explosive products, and actively try new modes such as live broadcast among online celebrities; Third, keep up with market hotspots, optimize product structure and develop new products around scientific and technological fashion. In the first half of the year, the design and development of personalized mask products and antibacterial products with ancient and modern characteristics and hand-made customization were completed.

Tianbao Longfeng brand expands new online and offline sales channels by promoting the official WeChat account and the operation of Tmall online store, and plans to open a series of lectures and live online activities such as "Jewelry Classroom"; Strengthen cooperation with banks, actively carry out gold leasing business, effectively control raw material costs, and steadily promote destocking and revitalizing stocks.

Starlight Photography actively builds a "photographic culture industrial park", speeds up brand transformation and development, implements a photography training plan, launches online classrooms and mobile classrooms, and forms differentiated services for training products; Expand online platform services and try to develop micro-mall, live broadcast, second-hand trading, picture output and other business sectors; Actively explore new business models of second-hand cameras, explore new channels with the help of mature online platforms such as micro-mode, and further enhance the influence of Starlight brand.

During the reporting period, the Chinese restaurant of Gina Hotel was officially launched by the US group for take-out, and activities such as full store reduction and some precision marketing vouchers were launched; Hotel rooms participate in the "Ctrip Mall" pre-sale activities, and the hotel catering department opens a sales window along Huaihai Road; For medical staff in epidemic prevention, activities such as room discount were launched.

During the reporting period, all brands under the company seized the holiday market to enliven the promotion. In the first half of the year, the company took advantage of the market opportunities of holiday activities such as the "May 5 th Shopping Festival" to carry out online and offline joint promotion activities. The ancient and modern brands held the "Happy Huaihai Carnival, Life on the Cloud is Worthy of Love" live live activity in Huaihai Road flagship store, participated in Baidu's "Old Shop" activity, and carried out LIVE LIVE in the ancient and modern Shaanxi North Road store. Tianbao Longfeng participated in the "May 5th Shopping Carnival" organized by the urban area, and carried out various marketing activities such as "Farewell the Old and Welcome the New", "March Goddess Festival", "Walking in Youth in April" and "Jade and White Jade Festival in May". During May Day, Gina Hotel launched a promotional activity of "50% off homemade food", and the sales situation was good.

(3) Improve services and do a good job of "recruiting, ensuring and staying".

First, after the outbreak, the company did a good job in statistics, explanation and implementation of rent reduction in accordance with the unified arrangements of the two levels of government in urban areas, and supported the development of various small and medium-sized enterprise customers with practical actions, thus making progress despite difficulties. Second, we took the initiative, improved the service level, stabilized the office rental customers, and made great efforts to attract investment. We completed the investment of several shops and office buildings, effectively reducing the vacant area. Third, actively tap the rental potential of branch roads and branches, make overall planning and overall layout.

Four. We will steadily promote major asset restructuring and comprehensively promote innovative business projects.

During the reporting period, the company actively promoted the implementation of major asset restructuring related matters according to the unified planning of the Huangpu District Party Committee and the district government on the regional commercial layout, and all the work was being carried out steadily and orderly. The company promptly followed up the projects invested by Detong Yimin Consumer Industry Fund to promote the smooth and orderly exit of fund investment projects. In the first half of the year, the company made preparations for the trial operation of Gina nursing home, actively created a good image and service brand of nursing home, and accelerated the feasibility study on the expansion of other chain projects. Do a good job in the feasibility study of the renovation project of Pudong's ancient and modern factories, and strive to complete the upgrading as soon as possible and create a new image.

(V) Improve internal control and continuously improve corporate governance.

During the reporting period, the company actively promoted the internal construction of enterprises, and the corporate governance level was continuously improved. First, according to the guidance of the state-owned assets of the district, the construction system of the board of directors and the board of supervisors of subsidiaries has been established and improved; The second is to optimize the internal management system of enterprises, focus on promoting financial informatization, and build a "five-in-one" control system of comprehensive budget, fund control, internal control construction and risk early warning; Strengthen financial supervision, continuously improve financial analysis and forecasting ability, strictly control various costs, speed up the pace of destocking, and optimize the inventory structure; Third, cooperate with relevant departments at all levels to do a good job in epidemic prevention and control and safety production; Fourth, actively fulfill corporate social responsibility: During the March 8th Festival, the company donated more than 80,000 pieces of self-produced ancient and modern brand thermal products to angels in white, who fought in the "front line of Wuhan epidemic prevention", and practiced the social responsibility of "time-honored brand" with practical actions.

Second, possible risks

1, the risk of consumption shock caused by changes in consumption environment and epidemic prevention and control. Domestic retail industry and commercial property management are highly dependent on economic development.

Since the outbreak of the epidemic in COVID-19 in early 2020, according to the needs of epidemic prevention and control, residents have taken the initiative to reduce shopping and cancel dinners, which has had a significant impact on the sales of non-essential goods and the catering industry. The Ministry of Culture and Tourism issued an urgent notice on the business activities of tourism enterprises, and related industries such as tourism accommodation were also greatly affected. Residents' consumption was restrained, and the Spring Festival holiday and February consumer market were obviously affected. The industries where the company's main business is located, such as department store retail and commercial property leasing, are closely related to the consumption environment, and many factors such as economic downturn, reduced consumption and insufficient consumer confidence will have an important impact on the company's business.

2. Market competition risk of consumer goods and retail industry. Department store retailing is one of the most competitive markets in China. All kinds of commercial department stores, including state-owned, private and foreign capital, have fierce competition in the market, which has had an impact on the traditional department store management. In recent years, e-commerce channels and online shopping business have become an important part of social retail consumption, and have had a great impact on consumers' consumption habits. The company's sales channels are biased towards the traditional offline sales model, and the proportion of sales in emerging channels such as e-commerce and TV shopping is small; In addition, due to the impact of e-commerce channels, the decline in sales of physical stores will directly affect the investment promotion and rent level of the company's properties.

3. The risk that the transformation and development will not meet expectations. In recent years, due to the increasingly fierce competition in the traditional department store retail industry, the company actively promoted business transformation and upgrading, adjusted the original stock business structure, actively explored equity investment cooperation and innovative business, and made every effort to promote major asset restructuring matters, so as to cultivate new economic growth points for the long-term development of the company in the future. However, the transformation of old business and the cultivation of innovative business are influenced by many uncontrollable factors such as market changes, risk control and policy orientation. And the investment cultivation cycle is long, and it cannot contribute to the company's performance in the short term. Major asset restructuring can only be carried out after the approval of the management agencies of all parties, and there is a risk that the transformation and development of enterprises will not meet expectations.

4. Pawn loans overdue risk. Affected by various objective and uncontrollable factors, some borrowers are at risk of overdue and default. According to the requirements of risk control, Dongfang Pawn, a subsidiary of the company, has formulated perfect pledge procedures for various businesses. However, the litigation, execution and liquidation of mortgage assets such as real estate take a long time, and the sale of absolute goods also takes a long time, which leads to the precipitation of funds and affects its turnover efficiency.

Three. Analysis of core competitiveness during the reporting period

During the reporting period, the company actively promoted structural adjustment, conscientiously implemented brand strategy, comprehensively promoted capital operation, made some progress in enterprise management, strategy implementation, brand building and capital operation, and gradually improved its core competitiveness.

Excellent brand value: The company owns Shanghai famous brand trademarks such as "Ancient and Modern Underwear", "Tianbao Longfeng", "Oriental Pawn" and "Starlight Photography", and "Ancient and Modern Underwear" has a relatively complete online and offline sales network throughout the country; "Tianbao Longfeng" is a well-known time-honored brand in Shanghai gold and jewelry industry; "Oriental Pawn" has created a characteristic micro-financial service platform integrating online and offline; "Starlight Photography" has become the highland of Shanghai photography culture industry gathering, and the above brand value and channel value are valuable intangible assets of the company.

High-quality property assets: At present, the company's own property is about 6.5438+0.68 million square meters, which provides a good foundation for the company's brand management and property management, and also provides a long-term and stable guarantee for enterprise development.

Professional strategic partner: In recent years, the company has actively carried out foreign cooperation and established long-term and stable strategic cooperative relations with many well-known institutions and enterprises in the industry, such as Detong Capital. All kinds of professional partners are valuable resources for enterprise innovation and transformation.

Dedicated and stable management team: The company has a group of experienced management teams in chain department stores, property leasing management and pawn management, which provides a solid guarantee for the long-term and steady development of the enterprise.