Established in 1993, New World Department Store China Limited (stock code: 825) is the retail flagship of New World Development Co., Ltd. (stock code: 17) (“New World Development”) in mainland China, and has now developed into a retail group integrating department stores and shopping centers. In 2007, the Group was listed on the main board of the Hong Kong Stock Exchange Limited (the “Stock Exchange”). As of December 31, 2024, New World Development owned approximately 75% of the Group's shares. retail network The Group has adopted the development strategy of “one city, multiple stores” and a “radiant city” to expand its business network in mainland China in an orderly manner. On December 31, 2024, 15 of the department stores and shopping malls operated by the Group were named “New World”, while the other 7 branches in Shanghai were named after “Paris Spring”. The total floor area was approximately 0.92 million square meters, covering 12 major cities in mainland China, including Beijing, Shanghai, Chongqing, Wuhan, Nanjing, Tianjin, Changsha, Zhengzhou, Yantai, Shenyang, Lanzhou and Mianyang. Business operations The Group actively implements store classification management and adopts the “one store, one policy” business strategy to encourage branches to adopt different strategies in the face of the market and build core competitiveness through diversified business models and continuous improvement of product strength. The Group's income mainly comes from rental income, counter sales commission income, sales of proprietary products, and interest income from financial leases as lessors. In addition to the department store and shopping center business, the Group is simultaneously expanding its own businesses such as “New World Supermarket” and LOL (Love · Original · Life) diverse creative spaces to achieve differentiated management. Organizational structure The Group has an experienced and innovative management team that uses a flat structure to practice efficient management. According to the business type and development trend, it is divided into two major business segments, department stores and shopping centers, to manage corresponding types of store operations in an integrated manner, to share store resources, empower and support functional departments at the headquarters, and exert synergy effects. When formulating professional strategies such as investment promotion and marketing, the Group implements a two-tier management mechanism. The headquarters formulates macro-enterprise strategies for the Group's positioning and policies, allocates resources for strategic layout, and then hands them over to branches to adjust and implement the corresponding goals according to local market conditions to ensure the implementation of the Group's strategy. Talent development The Group regards employees as a valuable resource. By providing different incentive programs, training plans and development opportunities, the Group enhances team enthusiasm, innovation and sense of belonging, thereby encouraging and nurturing outstanding talents and jointly implementing the Group's vision and mission. As of December 31, 2024, the Group had a total of 1,734 employees.