Financial Performance - Operating revenue for the first nine months reached CNY 2,351,716,522.90, a growth of 12.13% year-on-year[7] - Net profit attributable to shareholders increased by 45.52% to CNY 270,012,062.99 compared to the same period last year[7] - Basic earnings per share increased by 45.47% to CNY 0.6731[11] - The company reported a net profit margin of approximately 34.5% for the first nine months of 2015, down from 39.8% in the same period last year[28] - The company achieved a net profit of ¥269.92 million for the first nine months of 2015, compared to ¥185.55 million in the same period of 2014, representing an increase of 45.43%[30] - Net profit for Q3 2015 was CNY 12,576,718.82, a decrease from CNY 34,872,864.56 in the same period last year[33] - Total comprehensive income for Q3 2015 was CNY 12,576,718.82, compared to CNY 34,872,864.56 in Q3 2014[33] Assets and Liabilities - Total assets increased by 9.36% to CNY 5,182,351,006.22 compared to the end of the previous year[7] - Non-current assets totaled ¥1.60 billion, significantly higher than ¥878.15 million at the start of the year, indicating a growth of 82.36%[24] - Current liabilities increased to ¥859.99 million from ¥849.21 million, a slight increase of 1.03%[24] - The total equity attributable to shareholders reached ¥3.97 billion, up from ¥3.89 billion, reflecting an increase of 2.54%[24] Cash Flow - The company reported a cash flow from operating activities of CNY 104,522,277.31, a significant recovery from a negative cash flow in the previous year[7] - Cash inflow from operating activities for the first nine months of 2015 was CNY 2,961,328,881.11, an increase from CNY 2,497,492,726.22 in the same period last year[36] - Cash outflow from investing activities for the first nine months of 2015 was CNY 1,160,572,319.38, up from CNY 648,464,565.50 in the same period last year[37] - Cash inflow from financing activities for the first nine months of 2015 was CNY 142,021,898.57, a recovery from a net outflow of -CNY 160,926,324.99 in the same period last year[37] Shareholder Information - The total number of shareholders reached 12,542 by the end of the reporting period[10] - The largest shareholder, Aokang Investment Holdings, holds 32.73% of the shares, with 84,150,000 shares pledged[10] - The company has committed to not reducing shareholdings by major shareholders and executives for six months from July 11, 2015, to January 10, 2016[17] Investments - Long-term equity investments reached ¥684,171,577.40, attributed to investments in Wenzhou Minshang Bank and Lanting Jishi[12] - Investment cash payments surged by 94.65% to ¥1,051,100,846.78, primarily due to investments in Wenzhou Minshang Bank and Lanting Jishi[13] - The company plans to continue expanding its investments in financial products to enhance returns on idle funds[15] Operational Metrics - Total revenue for the third quarter of 2015 was approximately ¥724.95 million, an increase of 12.14% compared to ¥646.35 million in the same period last year[28] - Operating profit for Q3 2015 reached ¥64.98 million, up 67.61% from ¥38.79 million in the same quarter last year[29] - Total operating costs for Q3 2015 were approximately ¥658.56 million, which is an increase of 6.73% from ¥616.89 million in Q3 2014[29] Inventory and Receivables - Accounts receivable decreased by 57.64% to ¥3,567,753.52 due to reduced use of bill settlements[12] - The company’s accounts receivable decreased to approximately ¥947.94 million from ¥1.11 billion at the beginning of the year, indicating improved receivables management[22] - The company’s inventory as of September 30, 2015, was approximately ¥899.56 million, showing an increase from ¥877.32 million at the beginning of the year[22]

Financial Performance - The company achieved operating revenue of CNY 1,626,761,627.98, representing a growth of 12.12% compared to the same period last year[18]. - The net profit attributable to shareholders reached CNY 218,175,413.81, an increase of 37.95% year-on-year[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 199,356,192.66, up 44.39% from the previous year[18]. - The net cash flow from operating activities was CNY 480,663,152.97, a significant increase of 2,414.15% compared to the same period last year[18]. - The company's total assets at the end of the reporting period were CNY 4,932,914,000.63, reflecting a growth of 4.09% from the end of the previous year[18]. - Operating profit increased to ¥270,565,366.47, representing a growth of 40.3% from ¥193,006,781.37 year-over-year[99]. - Net profit for the current period was ¥217,670,403.59, a rise of 37.5% compared to ¥158,159,882.97 in the previous period[100]. - Basic and diluted earnings per share were both ¥0.5428, up from ¥0.3944 in the prior period, reflecting a 37.7% increase[100]. Revenue Sources - Direct sales revenue amounted to CNY 1,079,805,000, marking an 18.42% increase year-on-year[25]. - Revenue from direct stores was CNY 747,873,100, up 17.08% compared to the previous year[25]. - Group purchase and online sales revenue reached CNY 222,366,700, growing by 25.85% year-on-year[25]. - The operating income from the Aokang brand was 1,078,781.70 CNY, growing by 10.38% year-on-year; the Kanglong brand revenue was 222,295.60 CNY, up by 25.78%; and the Honghuoniao brand revenue was 56,468.00 CNY, increasing by 40.72%[26]. Expenses and Costs - Operating costs increased by 15.10% year-on-year, totaling 1,043,055,683.16 CNY, primarily due to increased sales[30]. - Management expenses rose by 21.61%, amounting to 119,207,518.22 CNY, attributed to higher employee compensation, depreciation, and promotional expenses[30]. - Sales expenses slightly decreased to ¥223,325,830.06 from ¥224,268,716.05, showing a marginal decline of 0.4%[99]. Investments and Acquisitions - The company made a strategic investment by acquiring 25.66% of LightInTheBox Holding Co., Ltd for a total consideration of 77,344,501.50 USD[39]. - The company invested a total of RMB 8,000,000 in a principal-protected floating income product with a return of 27.4% from Zhejiang Zheshang Bank[42]. - The company allocated RMB 18,000,000 in a principal-protected floating income product with a return of 426.08% from Agricultural Bank of China[42]. - The company has a guaranteed income investment of RMB 6,100,000 with a return of 157.23% from Bank of China[42]. Cash Flow and Liquidity - Cash flow from operating activities was ¥1,925,273,851.80, compared to ¥1,569,588,604.23 in the previous period, indicating a significant increase[104]. - Cash and cash equivalents at the end of the period totaled CNY 918,954,735.10, up from CNY 782,512,438.55 at the end of the previous period, marking an increase of approximately 17.43%[106]. - The company reported a net cash outflow from financing activities of CNY 200,656,301.43, compared to a larger outflow of CNY 222,719,704.08 in the prior period, indicating a reduction in financing costs[106]. Shareholder Information - The company distributed a cash dividend of 5 RMB per 10 shares, totaling 200,490,000 RMB, based on 400,980,000 shares[66]. - The total number of shareholders reached 14,275 by the end of the reporting period[84]. - The largest shareholder, Aokang Investment Holdings, held 131,231,000 shares, representing 32.73% of total shares[86]. Market and Strategic Initiatives - The company expanded its market presence through a national tour exhibition and launched new products, including the "Brock" series and the "Love and Bread" series[26]. - The company plans to enhance its marketing strategies and channel integration to adapt to the evolving consumer landscape[56]. - The company plans to expand its market presence in Asia, targeting a 15% growth in market share over the next fiscal year[136]. Inventory Management - The company is focusing on optimizing inventory levels to enhance operational efficiency and reduce carrying costs[198]. - The total inventory balance at the end of the period was ¥899,494,636.58, down from ¥931,433,397.48, representing a decrease of 3.4%[198]. - The provision for finished goods impairment decreased to ¥45,217,930.64 from ¥45,242,680.53, a slight reduction of 0.1%[200]. Compliance and Governance - The company adheres to the Chinese Accounting Standards, ensuring that its financial reports accurately reflect its financial position and performance[125]. - The financial statements are prepared based on the assumption of going concern, with no significant doubts regarding the company's ability to continue operations for the next 12 months[123]. - The company has not reported any significant litigation or bankruptcy restructuring matters during the reporting period[69].

Financial Performance - Operating revenue rose by 13.46% to CNY 841,824,870.94 year-on-year[7] - Net profit attributable to shareholders increased by 8.59% to CNY 108,944,034.88 compared to the same period last year[7] - Basic earnings per share increased by 8.23% to CNY 0.2708[7] - Total revenue for Q1 2015 was CNY 841,824,870.94, an increase of 13.4% compared to CNY 741,958,658.46 in the same period last year[30] - Net profit for the first quarter of 2015 reached CNY 23,604,918.32, representing a growth of 57.5% from CNY 15,045,291.87 in the previous year[34] - Total profit for the first quarter was CNY 27,770,492.14, an increase of 56.8% compared to CNY 17,700,343.37 in the previous year[34] - Investment income for the first quarter was CNY 8,115,512.30, which is a 97.5% increase from CNY 4,113,002.45 in the same period last year[34] Cash Flow - Cash flow from operating activities surged by 580.92% to CNY 295,902,932.51 compared to the previous year[7] - Cash received from operating activities increased by 49.70% to ¥116,591,002.05 in Q1 2015, compared to ¥77,883,674.29 in Q1 2014, attributed to an increase in recovered deposits and guarantees[13] - The net cash flow from operating activities for Q1 2015 was ¥295,902,932.51, a significant increase compared to ¥43,456,268.52 in the same period last year, reflecting a strong operational performance[38] - The total cash inflow from operating activities was ¥418,054,136.12, compared to ¥182,769,468.26 in the previous year, demonstrating a strong increase in operational cash generation[40] Assets and Liabilities - Total assets increased by 1.96% to CNY 4,831,878,696.35 compared to the end of the previous year[7] - Non-current assets totaled CNY 1,084,671,792.54, compared to CNY 878,150,997.86 at the beginning of the year, representing a growth of 23.5%[24] - Current liabilities decreased to CNY 828,518,704.12 from CNY 849,209,603.83, a reduction of 2.5%[24] - Owner's equity increased to CNY 4,003,359,992.23 from CNY 3,889,763,153.99, reflecting a growth of 2.4%[24] - The company's inventory stood at ¥818,179,890.36, down from ¥877,324,432.45, representing a reduction of approximately 6.7%[22] - The accounts receivable decreased to ¥1,065,356,954.96 from ¥1,105,114,935.23, showing a decline of about 3.6%[22] Investments - Long-term equity investments increased by 100% to CNY 198,000,000.00 due to investments in Wenzhou Minsheng Bank[12] - Long-term investments increased significantly to CNY 559,176,666.67 from CNY 361,176,666.67, a growth of 55.0%[27] Shareholder Information - The total number of shareholders reached 10,693, with the largest shareholder holding 50.93% of shares[10] - The company has committed to not transferring or entrusting the management of its publicly issued shares for a period of 36 months from the date of listing[16] - Shareholders are restricted from transferring more than 25% of their total shareholdings annually during their tenure as directors or senior management, and for six months post-termination[16] Expenses - Total operating costs for Q1 2015 were CNY 713,079,550.38, up from CNY 624,583,757.93, reflecting a year-over-year increase of 14.2%[30] - Sales expenses for the first quarter were CNY 5,087,543.35, an increase from CNY 2,928,777.10 in the same period last year[34] - Management expenses decreased slightly to CNY 22,561,183.98 from CNY 23,096,570.65 year-on-year[34] - Financial expenses improved significantly, showing a net income of CNY -1,550,987.09 compared to CNY -4,014,573.60 in the previous year[34] Compliance and Governance - The company has undertaken measures to ensure compliance with regulations regarding related party transactions, emphasizing fairness and transparency[18] - The company is focused on minimizing and regulating related party transactions to protect the interests of shareholders[18]

Financial Performance - The company's operating revenue for 2014 was CNY 2,965,300,754.71, representing a 6.05% increase compared to CNY 2,796,208,977.45 in 2013[24] - The net profit attributable to shareholders for 2014 was CNY 258,256,285.18, a decrease of 5.83% from CNY 274,234,726.91 in the previous year[24] - The net profit after deducting non-recurring gains and losses was CNY 216,103,193.62, down 12.95% from CNY 248,264,757.16 in 2013[24] - The cash flow from operating activities for 2014 was CNY 145,585,310.96, a significant increase of 165.72% compared to CNY 54,789,397.70 in 2013[24] - The total assets at the end of 2014 were CNY 4,738,972,757.82, a decrease of 0.83% from CNY 4,778,691,541.37 at the end of 2013[24] - The net assets attributable to shareholders increased by 4.57% to CNY 3,889,763,153.99 at the end of 2014, compared to CNY 3,719,722,468.81 in 2013[24] - The basic earnings per share for 2014 were CNY 0.6441, down 5.82% from CNY 0.6839 in 2013[25] - The diluted earnings per share for 2014 were also CNY 0.6441, reflecting the same decrease of 5.82% compared to the previous year[25] - The weighted average return on net assets for 2014 was 6.79%, a decrease of 0.70 percentage points from 7.49% in 2013[25] Revenue and Costs - Operating costs increased by 14.04% to CNY 1,912,823,763.05, compared to CNY 1,677,391,504.62 in the previous year[34] - The company achieved operating revenue of CNY 2,965,300,754.71, representing a year-on-year growth of 6.05%[30] - The company reported a total of CNY 42,153,091.56 in non-recurring gains and losses for 2014, up from CNY 25,969,969.75 in 2013[27] - The gross profit margin for the main business decreased by 4.57% compared to the previous year, attributed to increased promotional efforts[48] Cash Flow and Investments - The net cash flow from operating activities was CNY 145,585,310.96, a significant increase of 165.72% from CNY 54,789,397.70 in 2013[34] - The net cash flow from investment activities was -CNY 246,242,053.61, indicating a cash outflow primarily for purchasing financial products[46] - The company utilized part of its idle raised funds and self-owned funds to purchase bank financial products, ensuring that it does not affect the normal operation and construction of its fundraising projects[60] - The total amount of financial products purchased by the company reached 254,200,000 RMB, generating a total return of 2,390,620 RMB, with 202,100,000 RMB principal and 1,882,170 RMB in returns recovered[58] Strategic Initiatives - The company has initiated a strategic transformation towards becoming a retail service operator based on internet thinking, enhancing its competitive edge[53] - The company plans to enhance its R&D capabilities by integrating customer thinking into product development and establishing a resource-sharing platform for innovation[78] - The company is focusing on expanding its market presence through the establishment of new retail formats and enhancing brand positioning to improve competitive advantages[76] - The company plans to implement a feasible funding utilization plan to improve capital efficiency in 2015, ensuring sufficient funding for daily operations and project needs[79] Shareholder and Equity Information - The company plans to distribute a cash dividend of CNY 5 per 10 shares, totaling CNY 200,490,000.00 to shareholders[2] - The company has approved a cash dividend of 2.2 RMB per 10 shares, totaling 88,215,600 RMB, which represents 32.17% of the net profit attributable to shareholders for 2013[83] - The total number of shareholders increased to 11,888 by the end of the reporting period, up from 11,278 prior to the annual report disclosure[110] - The company's total share capital remained at 400,980,000 shares, with no changes during the reporting period[105] Market and Economic Outlook - The company anticipates a 7.4% GDP growth in China for 2014, the lowest since 1990, indicating a challenging economic environment[73] - The retail sector is experiencing a nominal growth of 12.0% and a real growth of 10.9% in social consumer goods retail sales, but the growth rate is slowing down[73] - The company recognizes the potential for growth in the footwear market due to increasing disposable income and urbanization, despite facing intense competition[73] Governance and Compliance - The company has not engaged in any related party transactions that would compromise its financial integrity[144] - The company strictly adhered to insider information management regulations, with no instances of insider trading detected prior to significant information disclosures[147] - The board of directors attended 4 meetings, with all resolutions passed unanimously, indicating strong governance practices[150] - The company retained Tianjian Accounting Firm for the 2014 annual audit, with an audit fee of RMB 180,000[95] Employee and Management Information - The company employed a total of 7,269 staff, with 2,212 in the parent company and 5,057 in major subsidiaries[137] - The total remuneration for the reporting period was 2,948,100 yuan, with an average of 24,281 yuan per individual[125] - The company has established a broad salary system based on market levels and performance to attract and retain talent[138] - The company has implemented various training programs to enhance employee skills and build a learning organization[139]

Financial Performance - Net profit attributable to shareholders decreased by 27.98% to CNY 185,547,542.94 for the first nine months of the year[8] - Basic earnings per share decreased by 27.98% to CNY 0.4627[9] - The net profit excluding non-recurring gains and losses decreased by 37.65% to CNY 156,068,017.21 for the first nine months of the year[8] - The company reported a significant reduction in short-term borrowings, which were previously CNY 13,315,641.12[22] - The net profit for the first nine months of 2014 reached CNY 2,097,314,824.24, slightly up from CNY 2,085,764,788.14 in the previous year[29] - The total profit for the first nine months of 2014 was CNY 99,263,780.42, compared to CNY 74,179,025.86 for the same period last year, indicating a growth of approximately 33.8%[33] - The net profit for Q3 2014 was CNY 34,872,864.56, compared to CNY 63,052,171.98 for the same period last year, representing a decline of approximately 44.8%[33] Revenue and Costs - Operating revenue increased by 0.55% to CNY 2,097,314,824.24 for the first nine months of the year[8] - Total operating revenue for Q3 2014 was CNY 646,349,029.81, an increase of 8.8% compared to CNY 593,820,209.52 in Q3 2013[29] - Total operating costs for Q3 2014 were CNY 616,890,320.92, up 15.1% from CNY 536,218,819.87 in the same period last year[29] - The total operating costs for Q3 2014 were CNY 171,888,076.71, slightly lower than CNY 177,053,969.02 in the same period last year[33] - The company reported a decrease in management expenses to CNY 67,478,857.51 for the first nine months of 2014, down from CNY 86,356,315.41 in the previous year[33] Assets and Liabilities - Total assets decreased by 4.44% to CNY 4,566,358,782.43 compared to the end of the previous year[8] - Cash and cash equivalents decreased by 33.77% to ¥856,240,847.98 from ¥1,292,808,392.90 due to funds used for purchasing financial products[12] - The total current liabilities decreased to CNY 1,250,000,000.00 from CNY 1,500,000,000.00, a reduction of 16.7%[22] - The company's total assets as of September 30, 2014, were CNY 3,140,241,019.32, a decrease from CNY 3,171,747,611.68 at the beginning of the year[25] - Current liabilities totaled CNY 198,731,022.68, down from CNY 224,537,832.46 at the start of the year, indicating improved liquidity management[26] Cash Flow - Cash flow from operating activities improved to a net inflow of CNY -103,873,787.54, compared to CNY -259,869,626.25 in the same period last year[8] - Cash inflow from operating activities totaled 1,010,864,317.72 CNY, up from 892,895,379.26 CNY year-over-year[39] - Cash outflow from operating activities was CNY 2,601,366,513.76 for the first nine months of 2014, compared to CNY 3,036,311,271.20 in the same period last year[36] - Net cash flow from investing activities was -237,596,854.06 CNY, an improvement from -510,974,769.07 CNY year-over-year[37] - Cash flow from investment activities showed a net outflow of -258,154,836.28 CNY, an improvement from -320,221,756.81 CNY year-over-year[39] Shareholder Information - The total number of shareholders reached 17,143 by the end of the reporting period[10] - The largest shareholder, Aokang Investment Co., Ltd., holds 50.93% of the shares and has pledged 78,000,000 shares[10] - The total equity attributable to shareholders increased to CNY 2,941,509,996.64 from CNY 2,947,209,779.22, indicating stability in shareholder value[26] Government Support and Investments - The company received government subsidies amounting to CNY 12,187,920.59 during the reporting period[9] - Investment income rose by 136.06% to ¥19,799,465.09 from ¥8,387,604.49, mainly due to increased returns from purchased financial products[14] - Operating income from non-operating activities increased by 108.59% to ¥21,625,026.30 from ¥10,367,168.90, primarily due to increased government subsidies[14] - The company reported an asset impairment loss of ¥62,763,579.70, primarily for bad debt provisions and inventory write-downs[14]

Financial Performance - The company reported a revenue of CNY 1,450,965,794.43 for the first half of 2014, a decrease of 2.75% compared to the same period last year[18]. - Net profit attributable to shareholders was CNY 158,159,882.97, down 25.67% year-on-year[18]. - The basic earnings per share decreased by 25.67% to CNY 0.3944 compared to CNY 0.5306 in the previous year[17]. - The weighted average return on net assets was 4.21%, a decrease of 1.65 percentage points from the previous year[17]. - The company's operating revenue for the current period is ¥1,450,965,794.43, a decrease of 2.75% compared to ¥1,491,944,578.62 in the same period last year[22]. - Operating costs increased by 3.34% to ¥906,248,123.45 from ¥876,938,869.53 year-on-year[22]. - The gross profit margin for the main business decreased by 3.75% due to increased promotional efforts at the retail level[26]. - The total revenue from the wholesale and retail sector was ¥143,860.34, down 2.77% year-on-year, primarily due to industry downturns and competition from PU women's shoes[25]. - The company achieved a net profit of ¥158,159,882.97 for the first half of 2014, contributing positively to the equity of the parent company[85]. - The company reported a total comprehensive income of CNY 158,159,882.97, down from CNY 212,776,792.86, reflecting a decline of 25.7%[73]. Cash Flow and Liquidity - The company experienced a net cash flow from operating activities of CNY 19,118,320.26, a significant recovery from a negative cash flow of CNY -280,492,712.83 in the previous year[18]. - The net cash flow from operating activities improved to ¥19,118,320.26 from a negative ¥280,492,712.83 in the previous year[23]. - Total cash inflow from operating activities was ¥1,725,173,440.62, while cash outflow was ¥1,706,055,120.36, resulting in a net cash inflow[79]. - The total cash and cash equivalents at the end of the period were ¥782,512,438.55, down from ¥1,980,816,775.33 at the beginning of the year[80]. - The total current assets as of June 30, 2014, amounted to CNY 3,807,851,370.47, a decrease from CNY 3,922,753,678.57 at the beginning of the year[65]. - Cash and cash equivalents decreased to CNY 1,135,725,021.59 from CNY 1,292,808,392.90 at the beginning of the year[65]. Assets and Liabilities - Total assets increased by 4.53% to CNY 4,720,895,961.47 compared to the end of the previous year[18]. - The total assets of the company decreased to CNY 4,720,895,961.47 from CNY 4,778,691,541.37 at the beginning of the year[67]. - The total current liabilities decreased to CNY 931,388,715.72 from CNY 1,058,969,072.56 at the beginning of the year[67]. - The total owner's equity increased to CNY 3,789,507,245.75 from CNY 3,719,722,468.81 at the beginning of the year[67]. - The company's retained earnings decreased to CNY 483,268,070.08 from CNY 522,839,302.29, indicating a reduction of 7.6%[71]. - The company's total liabilities decreased from CNY 142,083,145.93 at the beginning of the period to CNY 133,535,378.52 at the end of the period, a reduction of approximately 6.5%[185]. Shareholder Information - The total number of shares is 400,980,000, with 70.83% being limited sale shares and 29.17% being freely tradable shares[52]. - The largest shareholder, Aokang Investment Co., Ltd., holds 50.93% of the shares, totaling 204,231,000[55]. - The total number of shareholders at the end of the reporting period is 15,404[55]. - The company has a share transfer restriction for major shareholders, limiting annual transfers to 25% of their total shares during their tenure[42]. - The company has a diverse shareholder base, including both domestic and foreign investors[55]. Corporate Governance and Compliance - The company has no major litigation or arbitration matters during the reporting period[37]. - The company has committed to not engaging in any illegal or non-compliant activities regarding bill management laws, with the actual controller assuming full responsibility for any violations[44]. - The governance of the company complies with relevant laws and regulations, ensuring a well-structured and regulated operation[47]. - There were no penalties or corrective actions against the company or its executives during the reporting period by the China Securities Regulatory Commission[46]. - The company has established a long-term commitment to minimize and regulate related party transactions, ensuring fairness and compliance with legal regulations[43]. Strategic Initiatives - The company is focusing on integrating channel resources and has opened international/brand pavilions while restructuring ineffective outlets[20]. - The company has implemented product lifecycle management and launched several star products to optimize resource allocation[20]. - Brand promotion efforts include signing a celebrity endorsement deal with Kim Soo-hyun to enhance brand visibility among younger consumers[20]. - The company is optimizing internal management processes and enhancing employee quality through innovative incentive and assessment methods[20]. - The company plans to issue 3 million shares in a private placement, with the controlling shareholder and asset management plan participating in the subscription[39]. Research and Development - The company has filed several new utility model patents, including self-heating insoles and massage breathable shoes, indicating ongoing innovation[49]. - New product development and technological advancements are ongoing, aimed at expanding market reach and improving competitive positioning[1]. - The company is exploring market expansion opportunities, focusing on strategic acquisitions to enhance growth potential[1]. Taxation and Financial Reporting - The corporate income tax rate for the company and its wholly-owned subsidiary, Chongqing Honghuoniao Footwear Co., Ltd., is 15%, while other subsidiaries face a 25% tax rate[139]. - The company qualifies for a 15% corporate income tax rate under the Western Development tax incentive policy, effective from January 1, 2011, to December 31, 2020[141]. - The company has passed the high-tech enterprise re-examination, granting a 15% corporate income tax rate from January 1, 2013, to December 31, 2015[141]. - The company adheres to the enterprise accounting standards, ensuring the financial statements reflect a true and complete picture of its financial status[96]. - The financial statements are prepared based on the assumption of going concern, indicating the company's ability to continue operations[95].

Financial Performance - Net profit attributable to shareholders decreased by 20.31% to CNY 100,322,925.17 year-on-year[11] - Operating revenue declined by 11.21% to CNY 741,958,658.46 compared to the same period last year[11] - Basic and diluted earnings per share decreased by 19.35% to CNY 0.25[11] - Total operating revenue for the first quarter of 2014 was CNY 741,958,658.46, a decrease of 11.2% compared to CNY 835,677,558.02 in the same period last year[31] - Net profit for the first quarter of 2014 was CNY 100,322,925.17, down 20.4% from CNY 125,889,252.71 year-over-year[31] - Basic and diluted earnings per share for the first quarter of 2014 were both CNY 0.25, compared to CNY 0.31 in the previous year[32] Assets and Liabilities - Total assets decreased by 1.09% to CNY 4,726,722,793.12 compared to the end of the previous year[10] - The total current assets decreased to approximately CNY 3.81 billion from CNY 3.92 billion, indicating a decline of about 2.8%[26] - The company's inventory stood at approximately CNY 816.33 million, down from CNY 834.25 million, representing a decrease of about 2.1%[26] - The total liabilities decreased to approximately CNY 907.78 million from CNY 1.06 billion, showing a reduction of about 14.3%[27] - The company's total assets were approximately CNY 4.73 billion, slightly down from CNY 4.78 billion, indicating a decrease of about 1.1%[27] - Total liabilities and shareholders' equity as of March 31, 2014, were CNY 3,145,754,177.53, down from CNY 3,171,747,611.68 at the start of the year[30] Cash Flow - Net cash flow from operating activities improved significantly to CNY 43,456,268.52, compared to a negative CNY 212,007,251.12 in the same period last year[11] - Cash received from operating activities increased by 50.19% to ¥77,883,674.29 from ¥51,858,130.77 mainly due to the recovery of deposits and guarantees[19] - Cash paid for goods and services decreased by 30.75% to ¥536,754,019.45 from ¥775,108,839.97 due to reduced payments to suppliers[19] - Operating cash inflow for the current period was CNY 888,544,396.96, a slight decrease from CNY 899,451,588.43 in the previous period[35] - Total cash outflow from operating activities was CNY 845,088,128.44, significantly lower than CNY 1,111,458,839.55 in the previous period[35] - The net increase in cash and cash equivalents for the current period was CNY 82,741,501.57, contrasting with a decrease of CNY 348,649,470.36 in the previous period[36] Investments and Income - Investment income surged by 320.90% to ¥6,421,244.95 from ¥1,525,600.37 due to increased returns from purchased financial products[18] - The company received government subsidies amounting to CNY 7,004,107.00 during the reporting period[12] - The company received government subsidies, leading to an increase in non-operating income by 194.32% to ¥8,031,104.38 from ¥2,728,700.10[18] Shareholder Information - The total number of shareholders reached 15,954[13] - The largest shareholder, Aokang Investment Co., Ltd., holds 50.93% of shares, with 78,000,000 shares pledged[13] Compliance and Commitments - The company has committed to minimizing and regulating related party transactions to avoid conflicts of interest[21] - The company has undertaken measures to ensure compliance with legal regulations regarding financial transactions and has committed to compensating any losses incurred due to violations[26] - The company has committed to maintaining fair and reasonable terms in related party transactions to protect the interests of shareholders[26] - The company reported a commitment to not engage in high-risk investments for twelve months after the permanent supplement of working capital[23]

Financial Performance - The company's total revenue for 2013 was CNY 2,796,208,977.45, a decrease of 19.07% compared to CNY 3,455,109,496.83 in 2012[27]. - The net profit attributable to shareholders for 2013 was CNY 274,234,726.91, down 46.57% from CNY 513,303,668.48 in 2012[27]. - Basic earnings per share for 2013 were CNY 0.6839, reflecting a decline of 50.17% from CNY 1.3725 in 2012[25]. - The weighted average return on equity decreased to 7.49% in 2013 from 18.51% in 2012, a reduction of 11.02 percentage points[25]. - The company reported a net profit of CNY 248,264,757.16 after deducting non-recurring gains and losses, a decrease of 50.41% from CNY 500,630,869.58 in 2012[27]. - In 2013, the company achieved operating revenue of CNY 2,796,208,977.45, a decrease of 19.07% year-on-year, and a net profit attributable to shareholders of CNY 274,234,700, a decline of 46.57%[31]. - The total assets of the company decreased by 6.21% to CNY 4,778,691,541.37 at the end of 2013, down from CNY 5,095,303,684.25 at the end of 2012[27]. - The company's total cost of sales decreased by 22.74% year-on-year, amounting to CNY 1,677,391,504.62[36]. - The company's net cash flow from operating activities for 2013 was CNY 54,789,397.70, a significant increase of 1,493.88% from CNY 3,437,485.68 in 2012[27]. Investment and R&D - The company has increased its investment in e-commerce, establishing a differentiated multi-brand operation system, which has contributed to stable annual revenue growth[32]. - The company has implemented a modernized R&D system to enhance product development, recognizing the need to adapt to market competition and improve product value[33]. - The company’s total R&D expenditure was CNY 32,004,960.01, reflecting a slight increase of 1.46% from the previous year[36]. - R&D expenses totaled ¥32,004,960.01, accounting for 0.86% of net assets and 1.14% of operating revenue[44]. - The company has established a comprehensive product R&D and technology innovation system, resulting in the development of various functional products such as GPS positioning shoes and health shoes[52]. Market Strategy and Operations - The company aims to enhance its brand positioning and product innovation to maintain competitive advantages in the market[49]. - The company has established a diversified marketing network across the country, supporting brand and performance growth[50]. - The company has shifted its strategy from being a "brand operator" to a "retail service operator" to enhance efficiency and adapt to industry trends[52]. - The company plans to enhance supply chain efficiency and reduce order cycles as part of its operational strategy[80]. - The company aims to optimize its product resource integration to support the upgrade of its business model[81]. - The company plans to focus on new product development and market expansion strategies to enhance future growth[162]. Financial Management and Governance - The company has established a strategic management system to optimize governance and enhance decision-making resources[83]. - The company has received multiple accolades, including being recognized as a high-tech R&D center and a patent demonstration enterprise in Zhejiang Province[52]. - The company has implemented an ISO14001 environmental management system to promote environmental responsibility and compliance with relevant laws[89]. - The company has established a robust information disclosure system, ensuring timely and accurate communication with shareholders[137]. - The internal control system was evaluated and found effective, ensuring the legality and compliance of operational activities[145]. Shareholder and Capital Structure - The total number of shareholders at the end of the reporting period was 15,644, a decrease from 15,842 five trading days prior[107]. - The largest shareholder, Aokang Investment Co., Ltd., holds 50.93% of the shares, totaling 204,231,000 shares, with 78,000,000 shares pledged[108]. - The company raised a total of RMB 2,065,500,000 by issuing 81 million shares at a price of RMB 25.50 per share, with a net amount of RMB 2,006,699,497 after deducting issuance costs[104]. - The total remuneration for the chairman, Wang Zhentao, was 420,400 RMB during the reporting period[115]. - The company has a total of 158 regional sales offices leasing approximately 19,689.71 square meters of property for opening direct stores[93]. Risk Management - The company has identified risks including rising operating costs and potential price competition due to an oversupply in the market[84]. - The company committed to not engaging in any illegal or non-compliant bill management practices, with the actual controller Wang Zhentao assuming full responsibility for any losses incurred due to violations[94]. - The company has established criteria for recognizing significant receivables, with a threshold of 1 million yuan for individual impairment testing[199]. Employee and Management - The total number of employees in the parent company is 2,219, while the total number of employees in major subsidiaries is 5,567, resulting in a combined total of 7,786 employees[129]. - The company has established a balanced compensation policy that includes both economic and non-economic incentives, focusing on attracting and retaining key talent[130]. - The company held 2 shareholder meetings during the reporting period, ensuring compliance with legal requirements and maintaining open communication with shareholders[133]. - The board of directors consists of four independent directors, exceeding one-third of the total board members, ensuring compliance with governance standards[134]. Audit and Compliance - The company received a standard unqualified audit opinion from Tianjian Accounting Firm for its 2013 financial statements[150]. - The company did not experience any significant errors in annual report disclosures during the reporting period[148]. - The independent directors did not raise any objections to the board's proposals during the reporting period[143].