Financial Performance - The company's operating revenue for 2013 was approximately CNY 2.41 billion, a decrease of 15.74% compared to CNY 2.86 billion in 2012[21]. - Net profit attributable to shareholders for 2013 was approximately CNY 423.49 million, down 19.79% from CNY 527.97 million in 2012[23]. - Basic earnings per share for 2013 were CNY 0.8066, representing a decline of 19.80% from CNY 1.0057 in 2012[21]. - The weighted average return on equity decreased to 33.34% in 2013 from 50.26% in 2012, a reduction of 16.92 percentage points[21]. - The net cash flow from operating activities for 2013 was CNY 202.06 million, a significant drop of 56.84% from CNY 468.20 million in 2012[23]. - Total revenue from the sports footwear and apparel segment was CNY 2,405,456,477.30, a decrease of 15.75% compared to the previous year[41]. - Revenue from clothing was CNY 1,319,075,795.59, down 20.63% year-on-year, while the gross margin increased by 1.63 percentage points to 41.46%[41]. - The company reported a net profit margin decline due to reduced revenue and increased costs, impacting overall profitability[149]. Assets and Liabilities - Total assets at the end of 2013 were approximately CNY 2.75 billion, an increase of 8.40% from CNY 2.54 billion at the end of 2012[23]. - The net assets attributable to shareholders increased by 2.31% to approximately CNY 1.32 billion at the end of 2013, compared to CNY 1.29 billion at the end of 2012[23]. - Accounts receivable increased by 58.80% year-on-year, reflecting the company's strategy to extend credit terms in response to economic downturns[44]. - Inventory decreased by 32.79% year-on-year, attributed to improved supply chain management and reduced safety stock levels[45]. - Current liabilities rose to CNY 1,436,866,329.65, compared to CNY 1,253,179,835.12, indicating an increase of about 14.6%[142]. - The company's total assets at the end of the year were CNY 1,288,143,079.75, unchanged from the previous year[164]. Dividends and Profit Distribution - The company plans to distribute a cash dividend of CNY 4.5 per 10 shares, totaling CNY 27.63 million[5]. - The cash dividend for 2013 was CNY 276.3 million, representing 65.24% of the net profit attributable to shareholders[73]. - The company has established a cash dividend policy, stating that cash dividends should not be less than 20% of the distributable profits for the year[68]. - The company plans to distribute cash dividends of no less than 30% of the distributable profits for the years 2014-2016[85]. - If there are significant capital expenditures, the cash dividend proportion should be at least 40%, and if there are no significant expenditures, it should be at least 80%[85]. Market Strategy and Operations - The company opened 567 new retail terminals while closing 407, resulting in a total of 5,560 retail terminals by the end of 2013[27]. - The company’s marketing strategy focused on enhancing brand awareness and loyalty among younger consumers through integrated marketing campaigns[28]. - The company plans to enhance brand influence and awareness by acquiring and leasing strategic stores in first and second-tier cities[76]. - The company aims to invest approximately RMB 150 million in capital expenditures for its projects in 2014, including RMB 80 million for purchasing properties and RMB 37 million for land acquisition[61]. - The company will focus on enhancing retail efficiency and optimizing inventory management at retail terminals to improve profitability and risk resistance for distributors[58]. Research and Development - R&D expenditure for the year was 28.78 million RMB, accounting for 1.20% of total revenue, with a slight increase of 0.68% year-on-year[35]. - The R&D team consists of 256 personnel, emphasizing the company's commitment to independent design and innovation in product development[48]. - The company plans to strengthen product planning and research and development to enhance product marketability, with a focus on consumer demand[60]. - Guirenniao's R&D expenditure increased by 12% in 2013, underscoring its commitment to innovation and product quality[107]. Financial Management and Compliance - The company has established a three-party supervision agreement for the management of raised funds with several banks[50]. - The company has engaged various professional firms for auditing and legal services to ensure compliance and transparency[83]. - The financial report for the year ended December 31, 2013, was audited by Tianjian Accounting Firm, which issued a standard unqualified opinion[136]. - The company maintains a transparent information disclosure process, preventing selective disclosure and insider trading[121]. Shareholder Structure and Governance - The largest shareholder, Guirenniao Group (Hong Kong) Limited, holds 484,365,000 shares, accounting for 92.26% of the total shares[95]. - The actual controllers of the company are members of the Lin family, indicating a familial relationship among major shareholders[97]. - The board of directors consists of 6 independent directors, accounting for over 50% of the board members, contributing to sound decision-making[121]. - The company has a governance structure that ensures clear responsibilities and effective checks and balances, complying with relevant laws and regulations[120]. Future Outlook - The company plans to achieve a sales revenue of RMB 2.22 billion in 2014, which represents a decrease of 7.61% compared to 2013[57]. - The company expects revenue and profit to normalize in 2014 as the industry recovers[75]. - The company has no specific acquisition plans currently but is open to future opportunities for mergers and acquisitions[85]. - The company aims to become an internationally renowned brand management company through horizontal integration via investments and acquisitions[85].

Financial Performance - Operating revenue decreased by 15.23% to CNY 552,969,623.11 compared to the same period last year[9] - Net profit attributable to shareholders decreased by 12.00% to CNY 76,129,987.66 compared to the same period last year[9] - The weighted average return on net assets decreased by 2.58 percentage points to 3.92%[9] - Basic earnings per share decreased by 24.76% to CNY 0.1240[9] - Total revenue for the first quarter was CNY 552,969,623.11, a decrease of 15.2% compared to CNY 652,324,361.83 in the previous period[27] - Net profit for the first quarter was CNY 76,129,987.66, down 12.0% from CNY 86,506,698.16 year-over-year[27] - Basic earnings per share decreased to CNY 0.1240 from CNY 0.1648, reflecting a decline of 24.4%[28] Asset and Liability Changes - Total assets increased by 38.66% to CNY 3,819,765,289.76 compared to the end of the previous year[9] - The total assets increased to ¥3,819,765,289.76 from ¥2,754,749,323.87, marking a significant growth in the company's asset base[20] - Total liabilities amounted to ¥1,543,853,707.88, compared to ¥1,436,866,329.65 in the previous period[20] - Total liabilities decreased slightly to CNY 1,423,183,587.25 from CNY 1,435,898,361.03, a reduction of 0.9%[24] Cash Flow and Liquidity - Cash flow from operating activities improved by 25.93%, with a net outflow of CNY 122,200,887.07 compared to CNY 164,975,844.52 in the same period last year[9] - Cash inflow from financing activities totaled 1,334,300,000.00 RMB, significantly up from 428,300,000.00 RMB in the previous period, reflecting strong capital raising efforts[33] - Cash outflow for investing activities was 131,942,929.60 RMB, compared to 33,109,020.26 RMB in the previous period, indicating increased investment expenditures[33] - The ending cash and cash equivalents balance increased to 1,049,500,080.60 RMB from 161,160,156.55 RMB in the previous period, showing a strong liquidity position[37] - The net increase in cash and cash equivalents was 545,459,207.59 RMB, a recovery from a decrease of -199,864,200.83 RMB in the previous period, indicating improved cash management[37] Shareholder Information - The largest shareholder, Guirenniao Group (Hong Kong) Co., Ltd., holds 78.89% of the shares[10] - The total number of shareholders at the end of the reporting period was not disclosed[10] Operational Changes - The company reported a government subsidy of CNY 10,072,068.00 related to normal business operations[9] - Management expenses rose by 32.51% to ¥37,633,415.90, mainly due to increased IPO issuance costs[12] - Operating income surged by 2713.27% to ¥10,131,909.03, primarily from increased government subsidies received during the period[12] - The company plans to focus on market expansion and new product development to drive future growth[27] Inventory and Prepayments - Prepayments rose by 297.94% to ¥258,651,742.85, attributed to increased advance payments for summer and autumn product orders[12] - The company reported a significant increase in prepayments to CNY 231,542,789.50 from CNY 57,156,248.01, a rise of 304.0%[23] - Inventory decreased by 35.82% to ¥68,624,855.87, as production for spring and summer products concluded and raw material stockpiling reduced[12]