Hawkeye warning： the gross profit margin of good shop sales has increased, which deviates from the industry trend

project 20211231 20221231 20231231 Operating income (yuan) 9.324 billion 9.44 billion 8.046 billion Operating income growth rate 18.11% 1.24% -14.77%

project 20211231 20221231 20231231 Net profit returned to mother (yuan) 282 million 335 million 180 million Net profit growth rate of returning home -18.06% 19.16% -46.26%

project 20211231 20221231 20231231 Deduction of non-attributable profits (yuan) 206 million 209 million 65.1418 million Growth rate of non-returning profits -25.15% 1.46% -68.82%

project 20211231 20221231 20231231 Deduction of non-attributable profits (yuan) 206 million 209 million 65.1418 million Growth rate of non-returning profits -25.15% 1.46% -68.82% Deducting the industry average of non-homecoming profit growth rate. 15.49% -4.4% -39.31%

project 20211231 20221231 20231231 Net profit (yuan) 283 million 334 million 179 million Net profit growth rate -17.88% 18.29% -46.35%

project 20211231 20221231 20231231 Operating income (yuan) 9.324 billion 9.44 billion 8.046 billion Net cash flow from operating activities (yuan) 412 million 103 million 1.28 billion Operating income growth rate 18.11% 1.24% -14.77% Growth rate of net cash flow from operating activities 24.82% -75.05% 1144.38%

project 20211231 20221231 20231231 Gross profit margin of sales 26.77% 27.57% 27.75% Industry average of gross sales margin 30.47% 27.6% 26.68%

project 20211231 20221231 20231231 net profit margin on sales 3.03% 3.54% 2.23% Growth rate of net sales rate -30.47% 16.84% -37.05%

project 20211231 20221231 20231231 net profit margin on sales 3.03% 3.54% 2.23% Industry average of net sales rate 7.54% 7.98% 8.26%

project 20211231 20221231 20231231 Gross profit margin of sales 26.77% 27.57% 27.75% Industry average of gross sales margin 30.47% 27.6% 26.68% Inventory turnover rate (times) 7.8 6.68 7.46 Industry average of inventory turnover rate (times) 7.65 6.95 7.6

project 20211231 20221231 20231231 Gross profit margin of sales 26.77% 27.57% 27.75% Industry average of gross sales margin 30.47% 27.6% 26.68% Accounts receivable turnover rate (times) 18.28 13.54 14.42 Industry average of accounts receivable turnover rate (times) 73.56 92.45 46.6

project 20211231 20221231 20231231 Gross profit margin of sales 26.77% 27.57% 27.75% net profit margin on sales 3.03% 3.54% 2.23%

project 20211231 20221231 20231231 Gross profit margin of sales 26.77% 27.57% 27.75% Industry average of gross sales margin 30.47% 27.6% 26.68% net profit margin on sales 3.03% 3.54% 2.23% Industry average of net sales rate 7.54% 7.98% 8.26%

project 20211231 20221231 20231231 Rate of Return on Common Stockholders’ Equity 13.18% 14.86% 7.43% Growth rate of return on net assets -27.5% 12.75% -50%

project 20211231 20221231 20231231 Unconventional income (yuan) 5.857 million 7.5415 million 54.3073 million Net profit (yuan) 283 million 334 million 179 million Unconventional income/net profit 1.75% 2.25% 30.3%

project 20211231 20221231 20231231 Asset impairment loss (yuan) -1,007,200 yuan -28.0292 million -11.7563 million Net assets (yuan) 2.154 billion 2.398 billion 2.487 billion Asset impairment loss/net assets -0.05% -1.17% -0.47% Asset impairment loss/industry average of net assets -2.25% -7.63% -2.5%

project 20211231 20221231 20231231 Other receivables (yuan) 110 million 110 million 128 million Current assets (yuan) 4.044 billion 3.563 billion 3.511 billion Other receivables/current assets 2.73% 3.09% 3.65%

project 20231231 Cash payment ability (yuan) 1.733 billion Working capital demand (yuan) -847 million Working capital (yuan) 886 million

project 20211231 20221231 20231231 Accounts receivable turnover rate (times) 18.28 13.54 14.42 Industry average of accounts receivable turnover rate (times) 73.56 92.45 46.6

project 20211231 20221231 20231231 Total assets turnover rate (times) 1.94 1.8 1.52 Total assets turnover rate growth rate -1.52% -7% -15.51%

project 20221231 Long-term deferred expenses at the beginning of the period (yuan) 73.6237 million Long-term deferred expenses in this period (yuan) 199 million

project 20221231 Intangible assets at the beginning (yuan) 134 million Intangible assets in current period (RMB) 240 million

project 20211231 20221231 20231231 Sales expenses (yuan) 1.672 billion 1.756 billion 1.573 billion Operating income (yuan) 9.324 billion 9.44 billion 8.046 billion Sales expenses/operating income 17.94% 18.6% 19.55% Industry average of sales expenses/operating income 10.01% 11.1% 11.43%