the contents of the comments made by the board of directors of Yimin Group (611824) in the first half of 2121 are as follows:

I. Discussion and analysis of the operation situation

In the first half of 2121, all employees of Yimin Group, under the leadership of the board of directors and management of the company, made efforts to overcome 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" set at the beginning of the year. We fully implemented the brand strategy, actively carried out investment promotion and lease, made great efforts to promote major asset restructuring, and promoted the reform, transformation and redevelopment of enterprises. All major work progressed smoothly throughout the year.

(1) lay a solid foundation to ensure that all major tasks in the first half of the year were carried out as scheduled

During the reporting period, in the face of the adverse impact of the COVID-19 epidemic on the domestic economy, especially the consumer industry, the company calmly responded to the challenges, and made appropriate adjustments to lay a solid foundation by reducing inventory, reducing costs, increasing efficiency, expanding channels, adjusting structure and tapping potential, and all major tasks progressed smoothly. In the first half of the year, the company achieved an operating income of 586 million yuan and a net profit of 1.2893 million yuan.

(II) Adjustment and transformation to actively promote the redevelopment of traditional brands

During the reporting period, ancient and modern companies actively adapted to the market and actively expanded new channels. First, cooperate with the professional Wechat business team to carry out WeChat marketing through new retail channels such as ancient and modern-Qieke; Second, actively develop new explosive products according to the customer group characteristics of platforms such as Oriental CJ, and actively try new modes such as live delivery in online celebrity; 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, we completed the design and development of personalized mask products and antibacterial products with ancient and modern characteristics and manual customization.

Tianbao Longfeng brand expands new online and offline sales channels by promoting the operation of WeChat WeChat official account and Tmall online stores, planning and opening 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, steadily promote destocking and revitalize stocks.

Starlight Photography actively builds a "photography culture industrial park", accelerates brand transformation and development, implements photography training programs, launches online classes and mobile classes, and forms differentiated services for training products; Expand online platform services and try to develop micro-mall, live broadcast, second-hand trading, image 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 micropatter, and further enhance the influence of Starlight brand.

During the reporting period, the Chinese restaurant of Jinchen Hotel was officially launched by the US delegation for take-out, and activities such as full store reduction and some precision marketing coupons were launched. Hotel rooms participated in the "Ctrip Mall" pre-sale activities, and the hotel catering department opened a sales window along Huaihai Road; For the medical staff in epidemic prevention, activities such as room discount have been 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 the "May 5 th Shopping Festival" and other holiday activities 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 the "Time-honored Shop" activity of Baidu, 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 to the Old and Welcome to the New", "Goddess Festival in March", "Walking in the Youth Season in April" and "Jade and White Jade Festival" in May. During May Day, Jinchen Hotel launched the promotion of "51% off for five pieces of homemade food", and the sales situation was good.

(3) Improve the service and do a good job of "inviting business, securing business and staying in business"

First, after the outbreak, according to the unified deployment of the two levels of government in the urban area, the company did a good job in statistics, explanation and implementation of rent reduction matters, and supported the development of small and medium-sized enterprise customers with practical actions. Second, we took the initiative and enthusiasm, improved the service level, stabilized the rental customers of office buildings, vigorously attracted investment, and completed the investment promotion of several shops and office buildings, effectively reducing the vacant area. Third, actively tap the rental potential of the side and branch roads, make overall planning and overall layout.

(IV) Steadily push forward major asset restructuring matters and comprehensively promote innovative business projects

During the reporting period, according to the unified planning of the Huangpu District Party Committee and the district government on the regional commercial layout, the company actively promoted the implementation of major asset restructuring matters, and all 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 prepared for the trial operation of Jinchen 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. Earnestly 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 and transformation as soon as possible to create a new image.

(V) Improve internal control and continuously improve corporate governance

During the reporting period, the company actively promoted 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 supervisors of the subsidiary was 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" management and control system with comprehensive budget, fund management and control, internal control construction and risk early warning; Strengthen financial supervision, constantly 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 the corporate social responsibility: during the March 8th Festival, the company donated more than 81,111 pieces of self-produced ancient and modern brand warm-keeping articles to angels in white, who was fighting in the "front line of anti-epidemic in Wuhan", and practiced the social responsibility of the "time-honored brand" with practical actions.

2. Possible risks

1. Risks of consumption impact 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 COVID-19 epidemic in early 2121, according to the needs of epidemic prevention and control, residents have taken the initiative to reduce shopping and canceled dinner parties, and the sales of non-essential goods and catering industry have been significantly affected. 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 consumer market was significantly affected during the Spring Festival holiday and February. 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 and retail industry. The retail trade of department stores is one of the most competitive markets in China. All kinds of commercial department stores, including state-owned, private and foreign, compete fiercely in the market, which has an impact on the traditional department store management. In recent years, the e-commerce channel 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 sales ratio of 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 fail to 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 innovation business, fully promoted major asset restructuring matters, and cultivated new economic growth points for the long-term development of enterprises 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, policy orientation, etc., and the investment and cultivation period is long, which can not contribute to the company's performance in a short period of time. Major asset restructuring can only be carried out after approval and filing by the management agencies of all parties, and there is a risk that the transformation and development of enterprises will not meet expectations.

4. Risk of overdue pawn loan. Affected by various objective and uncontrollable factors, some borrowers are at risk of overdue and default. Oriental Pawn, a subsidiary of the company, has made perfect pledge procedures for each business according to the requirements of risk control. However, it takes a long time to litigate, execute and realize mortgage assets such as real estate, and it also takes a long time to sell the absolute goods, resulting in the precipitation of funds and affecting its turnover efficiency.

iii. 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 certain progress in enterprise management, strategy implementation, brand building and capital operation, and gradually improved its core competitiveness.

Excellent brand value: The company owns well-known brand trademarks in Shanghai, 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 all over the country; "Tianbao Longfeng" is a well-known time-honored brand in the gold and jewelry industry in Shanghai; "Oriental Pawn" has created a characteristic micro-financial service platform integrating online and offline; "Starlight Photography" has become a highland of photography culture industry gathering in Shanghai, 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 168,111 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 partners: in recent years, the company has actively carried out foreign cooperation, and has established long-term and stable strategic cooperative relations with many well-known institutions and enterprises in the industry, such as Detong Capital. Various professional partners are valuable resources for enterprise innovation and transformation.

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