Financial Performance - The company's operating revenue for Q1 2022 was CNY 332,595,072, representing a decrease of 28.47% compared to the same period last year[6]. - The net profit attributable to shareholders of the listed company was a loss of CNY 26,761,992, a decline of 205.01% year-on-year[6]. - Basic and diluted earnings per share were both CNY -0.06, reflecting a decrease of 200.00% year-on-year[7]. - The company reported a net loss of RMB 54,325,917 for Q1 2022, compared to a net loss of RMB 27,563,925 in Q1 2021[19]. - The company's net profit for Q1 2022 was -26,675,015 RMB, compared to a net profit of 25,842,006 RMB in Q1 2021, indicating a significant decline[22]. - Operating profit for Q1 2022 was -34,474,597 RMB, a stark contrast to the operating profit of 35,694,229 RMB in the same period last year[22]. - The company reported a total comprehensive income of -27,054,761 RMB for Q1 2022, compared to 26,030,873 RMB in Q1 2021, highlighting a significant downturn[23]. Cash Flow and Assets - The net cash flow from operating activities was negative CNY 35,594,113, down 44.55% compared to the previous year[7]. - The net cash flow from operating activities for Q1 2022 was -35,594,113 RMB, compared to -24,624,880 RMB in Q1 2021, indicating worsening cash flow conditions[26]. - Investment activities resulted in a net cash outflow of -28,292,744 RMB in Q1 2022, compared to -5,416,858 RMB in Q1 2021, reflecting increased investment expenditures[27]. - Cash and cash equivalents as of March 31, 2022, were RMB 595,417,087, a decrease from RMB 734,089,940 at the end of 2021[17]. - The company’s total cash and cash equivalents at the end of Q1 2022 were 512,654,629 RMB, down from 391,407,898 RMB at the end of Q1 2021[27]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,384,264,130, a decrease of 6.99% from the end of the previous year[7]. - Total assets decreased to RMB 2,384,264,130 from RMB 2,563,446,679 at the end of 2021, reflecting a decline of 7%[18]. - Total liabilities decreased to RMB 882,073,035 from RMB 990,243,974 at the end of 2021, a reduction of 10.9%[19]. - The equity attributable to shareholders of the listed company was CNY 1,489,533,719, down 4.56% from the end of the previous year[7]. - The company’s equity attributable to shareholders decreased to RMB 1,489,533,719 from RMB 1,560,632,307 at the end of 2021, a decline of 4.5%[19]. Operational Metrics - The decline in performance was primarily attributed to decreased sales due to the impact of the pandemic[11]. - Total revenue from sales of goods and services in Q1 2022 was 336,725,414 RMB, down from 435,048,628 RMB in Q1 2021, representing a decrease of approximately 22.6%[25]. - Total operating costs for Q1 2022 were RMB 363,008,477, down from RMB 434,681,287 in Q1 2021, reflecting a reduction of 16.5%[21]. - Accounts receivable decreased to RMB 145,724,356 from RMB 193,251,931 at the end of 2021, indicating a reduction of 24.5%[17]. - Inventory as of March 31, 2022, was RMB 410,567,561, down from RMB 441,798,977 at the end of 2021, a decrease of 7.1%[17]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 20,252[14]. - The company held 10,028,340 shares in its repurchase account, accounting for 2.39% of the total share capital as of March 31, 2022[16]. Expenses - The company incurred financial expenses of 2,587,032 RMB in Q1 2022, a significant increase from 1,031,679 RMB in Q1 2021, primarily due to higher interest expenses[22]. - Research and development expenses increased to 13,270,777 RMB in Q1 2022 from 10,505,670 RMB in Q1 2021, reflecting a commitment to innovation despite financial challenges[22]. - Non-recurring gains and losses amounted to CNY 3,153,965 for the period[10]. - The weighted average return on net assets was -1.75%, a decrease of 3.23 percentage points compared to the previous year[7].

Financial Performance - The net profit attributable to the parent company's shareholders for 2021 was -64,611,609 CNY, indicating a loss [4]. - The undistributed profits at the end of 2021 for the parent company were 34,161,779 CNY after accounting for a cash dividend distribution of 62,952,635 CNY [4]. - The company plans not to distribute cash dividends for the 2021 fiscal year due to negative net profits [5]. - The company's operating revenue for 2021 was CNY 1,925,410,170, representing a 2.52% increase compared to CNY 1,878,085,689 in 2020 [26]. - The net profit attributable to shareholders was a loss of CNY 64,611,609, an improvement of 86.01% from a loss of CNY 461,901,040 in 2020 [26]. - The basic earnings per share for 2021 was -CNY 0.15, showing an 86.36% increase from -CNY 1.10 in 2020 [27]. - The total assets at the end of 2021 were CNY 2,563,446,679, a decrease of 4.75% from CNY 2,691,246,326 at the end of 2020 [26]. - The company reported a net cash flow from operating activities of -CNY 48,243,197, a significant decline from CNY 242,091,317 in 2020, representing a 119.93% decrease [26]. - The weighted average return on equity for 2021 was -3.94%, an increase of 19.75 percentage points from -23.69% in 2020 [27]. - The company’s total equity attributable to shareholders decreased by 8.51% to CNY 1,560,632,307 at the end of 2021 from CNY 1,705,761,354 at the end of 2020 [26]. Share Repurchase and Dividends - The company repurchased shares amounting to 16,257,773 CNY, which accounted for 47.59% of the undistributed profits at the end of 2021 [5]. - The company has a legal reserve of 1,523,658 CNY, which is 10% of the net profit for the parent company [4]. Risks and Governance - The company has detailed potential risks in its annual report, which investors should review [10]. - The company has not reported any non-operating fund occupation by controlling shareholders or related parties [7]. - The company has not violated any decision-making procedures regarding external guarantees [8]. - The audit report issued by PwC was a standard unqualified opinion [9]. - The company has not disclosed any significant changes in its governance structure or shareholder situation [11]. - The company has established a comprehensive governance structure, ensuring clear division of responsibilities among the shareholders, board of directors, supervisory board, and management [189]. - The company has implemented a robust information disclosure system to ensure timely and accurate communication with shareholders, particularly protecting the rights of minority shareholders [193]. Market and Economic Environment - The overall economic environment in 2021 showed a high opening and low closing trend, with various industries facing different degrees of impact from the pandemic, leading to increased operational difficulties and intensified competition [34]. - The fashion footwear and apparel segment experienced a significant decline in offline store traffic due to the pandemic, negatively affecting sales performance [37]. - The overall consumer spending and retail sales showed a recovery trend, but the structural adjustments within the retail industry continued to create challenges for growth [36]. - The domestic retail sales of consumer goods reached 4.40823 trillion yuan in 2021, with a year-on-year growth of 12.5%, indicating a recovery in the market post-COVID-19 [50]. - The average annual disposable income in 2021 was 35,000 yuan, reflecting an actual growth of 8.1% compared to 2019, which supports the potential for market expansion [50]. Online and Offline Sales Performance - In 2021, the company's online channel revenue reached 544 million RMB, representing a year-on-year growth of 16.75%, accounting for 31.79% of the fashion footwear and apparel segment's revenue and 28.29% of the company's consolidated main business revenue [39]. - The online business grew by 16.75%, increasing its revenue share from 27.90% to 31.79% in the fashion footwear and apparel segment [101]. - Online sales accounted for 31.79% of total revenue, generating 543,501,539, while offline sales contributed 68.21% with 1,166,220,690 [157]. Marketing and Advertising Strategies - The company emphasized the importance of differentiated brand positioning and value, enhancing brand influence through collaborations with celebrities and IP crossovers [40]. - The mobile internet advertising sector faced challenges with limited advertising budgets from clients and rising traffic costs, leading to a continuous decline in gross profit margins for traditional internet advertising [38]. - The advertising industry is focusing on "customer acquisition" and "customer retention" as key marketing strategies due to limited marketing budgets and the need for effective marketing results [66]. - Marketing service providers are transitioning from "traffic acquisition" to "traffic operation," emphasizing efficiency and cost-effectiveness in response to rising traffic costs and the need for precise marketing [69]. Product Development and Innovation - The company has filed for 1 invention patent, 50 utility model patents, and 44 design patents, indicating a strong focus on innovation and R&D [112]. - The product development process leverages consumer insights and advanced design technologies to enhance comfort and design quality [96]. - The company aims to strengthen product core technology and innovation to provide healthier and more comfortable footwear, targeting the Z generation's demand for fashion and leisure [179]. Operational Efficiency and Supply Chain - The company has established a comprehensive digital operation platform to enhance efficiency across design, production, logistics, and marketing, aiming for improved product quality and supply chain responsiveness [41][42]. - The company maintains a self-production ratio of 55.80%, with a focus on flexible production methods to respond quickly to market demands [98]. - The logistics system can handle 50,000 to 70,000 orders per day, with a storage capacity of over 40,000 SKUs [99]. - The company is implementing a comprehensive digital and intelligent manufacturing system to improve supply chain efficiency and consumer engagement [116]. Store Operations and Market Expansion - The company opened 116 new stores and closed 222 stores, resulting in a total of 1,322 stores at the end of the reporting period [152]. - The company operates a full-channel sales model, with a total of 1,322 offline stores, including 880 direct-operated and 442 franchised stores [101]. - The company is actively expanding its multi-brand strategy, including partnerships with international fashion brands to meet diverse consumer needs [108]. Financial Management and Investments - The company executed new leasing standards, resulting in a significant increase in lease liabilities to 19,295,704 [148]. - The company plans to continue its investment strategies, as indicated by the proposal for securities investment [197]. - The company invested 99,990,000 RMB in a private equity fund, completing the subscription process by December 2021 [165]. Challenges and Future Outlook - The company faces risks from macroeconomic fluctuations that could impact consumer spending on footwear and marketing services [183]. - The company must adapt to fast-changing fashion trends in the mid-to-high-end women's shoe market to maintain brand recognition and sales performance [184]. - The company plans to enhance its strategic focus on digital transformation and consumer-centric approaches in the footwear industry [174].

Financial Performance - The company's operating revenue for the first half of 2021 was CNY 989,422,470, representing a 15.01% increase compared to CNY 860,308,495 in the same period last year[23]. - The net profit attributable to shareholders for the same period was CNY 41,359,667, a 10.00% increase from CNY 37,599,883 year-on-year[23]. - The net cash flow from operating activities decreased significantly by 71.39%, amounting to CNY 36,098,264 compared to CNY 126,163,495 in the previous year[23]. - The total assets of the company increased by 3.21% to CNY 2,777,716,500 from CNY 2,691,246,326 at the end of the previous year[23]. - The basic earnings per share rose to CNY 0.10, an increase of 11.11% from CNY 0.09 in the same period last year[24]. - The company achieved a total revenue of 98.94 million yuan in the first half of 2021, representing a year-on-year increase of 15%[96]. - The net profit attributable to shareholders of the listed company was 41.36 million yuan, up 10% year-on-year[96]. - The operating cost increased by 23.56% to CNY 410.56 million, up from CNY 332.27 million, primarily due to a higher proportion of external sourcing and increased costs in the mobile internet media advertising business[104]. - Sales expenses rose by 19.15% to CNY 396.28 million, driven by a significant increase of 149.10% in online marketing expenditures[103][104]. Dividend Distribution - The company distributed a cash dividend of 1.5 RMB per 10 shares, totaling 62,952,634.65 RMB, based on a total share capital of 428,914,251 shares after deducting 9,230,020 shares held in the repurchase account[5]. - The company did not implement a profit distribution for the first half of 2021[6]. - No profit distribution or capital reserve increase plans are proposed for the half-year period[128]. Corporate Governance - The board of directors confirmed that all members attended the board meeting, ensuring the accuracy and completeness of the half-year report[3]. - The half-year report has not been audited, and the responsible persons declared the financial report's authenticity[4]. - The report outlines the company's commitment to ensuring the accuracy of the disclosed information, with no majority of directors unable to guarantee the report's integrity[9]. - The company has undergone a board and management restructuring, with new appointments to enhance governance and operational effectiveness[126][127]. Risk Management - The company faces potential risks that may impact its operational and strategic plans, as detailed in the report[9]. - The report includes a forward-looking statement risk declaration, indicating that future plans are subject to uncertainties[7]. - The company faces risks if it fails to adapt to fast-changing fashion trends in the mid-to-high-end women's shoe market, potentially leading to decreased brand recognition and sales performance[117]. - The company plans to optimize operations based on macroeconomic conditions to strengthen its core competitiveness against risks[116]. Market and Brand Strategy - The company operates a multi-brand fashion ecosystem, focusing on both fashion footwear and mobile internet marketing businesses[28]. - The company is committed to digital transformation across its entire supply chain to enhance core competitiveness[28]. - The company focuses on original design and high-quality products, targeting specific consumer segments with differentiated brand positioning[47]. - The company has established a high brand awareness and influence in the domestic mid-to-high-end women's shoe market over its 20 years of operation[58]. - The company aims to enhance its interaction with consumers through digital technologies to strengthen brand-user connections[65]. - The company is actively expanding its multi-brand strategy, launching various complementary brands to meet diverse consumer needs[82]. Digital Transformation and Marketing - The company employs a digital and intelligent operation model across its entire supply chain, improving resource integration and operational efficiency[46]. - The mobile internet marketing segment, operated by the subsidiary Xiaozi Technology, provides comprehensive marketing services including mobile application distribution and programmatic advertising[44]. - The company has established a DMP user profiling technology as the foundation for its marketing services, enhancing advertising efficiency[44]. - The mobile internet marketing industry is experiencing a shift from traditional advertising to digital marketing, with a focus on precision marketing and content-driven strategies[72]. - The company is focusing on enhancing its digital marketing capabilities through the development of proprietary platforms and data analysis tools[91]. Share Structure and Transactions - The company executed a share transfer agreement to acquire an additional 26.12% stake in UN BVI for a cash consideration of 3 million RMB[112]. - The company holds a 58.56% stake in United Nude International Limited, with a book value of 11,377,100 RMB[111]. - The company has established a structured plan for the release of shares in phases, based on performance verification and compliance with agreements[136]. - The company has committed to not transferring any shares during the lock-up period, ensuring stability in shareholding[141]. - The company has established a policy that limits the transfer of shares to 50% of the total shares held within 12 months after the departure of any key personnel[154]. Compliance and Legal Matters - The company renewed its auditing agreement with PwC for the fiscal year 2021, ensuring compliance with auditing standards[177]. - There were no major lawsuits or arbitration matters reported during the reporting period, indicating a stable legal standing[177]. - The company has complied with all necessary disclosure and decision-making procedures regarding related party transactions[180]. - The company guarantees that it and its controlled enterprises will not engage in related transactions with Tianchuang Fashion, except under unavoidable circumstances[172]. Future Outlook - The company provided an optimistic outlook for the next quarter, projecting a revenue growth of 20% based on current market trends and user acquisition strategies[169]. - New product launches are expected to contribute an additional 200 million in revenue over the next fiscal year[168]. - The company is considering strategic acquisitions to bolster its product offerings, with a budget of 100 million allocated for potential mergers and acquisitions[169]. - Future guidance indicates a focus on digital transformation, with an expected investment of 30 million in digital marketing strategies[168].

Dividend Distribution - The company plans to distribute a cash dividend of RMB 1.5 per 10 shares, totaling RMB 62,951,551.05, which accounts for -13.63% of the net profit attributable to shareholders for 2020[7]. - The total cash dividends distributed for the year amount to RMB 146,884,640.45, representing -31.80% of the net profit attributable to shareholders for 2020[8]. - The company has established a cash dividend policy to ensure stable returns for shareholders, prioritizing cash dividends when conditions are met[185]. - The company aims to distribute at least 15% of the annual distributable profit in cash dividends, with a cumulative distribution of no less than 45% of the average annual distributable profit over the last three years[188]. - The company will consider various factors, including industry characteristics and funding needs, to propose differentiated cash dividend policies[189]. - The board of directors must ensure that the profit distribution plan is transparent and involves communication with minority shareholders[191]. - The company implemented a cash dividend policy in accordance with relevant laws and regulations, allowing for profit distribution even if the current year's profit is negative, provided cumulative undistributed profits are positive[192]. - The company repurchased shares amounting to RMB 100.03 million, which is considered equivalent to cash dividends for the purpose of calculating the annual cash dividend ratio[200]. - The cash dividend for 2019 represented 48.23% of the net profit attributable to ordinary shareholders, which was RMB 207.41 million[200]. Financial Performance - The company's total revenue for 2020 was CNY 1,878,085,689, representing a decrease of 10.11% compared to CNY 2,089,205,001 in 2019[24]. - The net profit attributable to shareholders for 2020 was a loss of CNY 461,901,040, a decline of 322.70% from a profit of CNY 207,405,264 in 2019[25]. - The operating cash flow for 2020 was CNY 242,091,317, down 27.95% from CNY 336,011,517 in 2019[25]. - The total assets at the end of 2020 were CNY 2,691,246,326, an increase of 1.14% from CNY 2,660,974,365 at the end of 2019[25]. - The basic earnings per share for 2020 was -CNY 1.10, a decrease of 324.49% from CNY 0.49 in 2019[26]. - The weighted average return on equity for 2020 was -23.69%, a decrease of 33.50 percentage points from 9.81% in 2019[26]. - The company reported a total shareholder's equity of CNY 1,705,761,354 at the end of 2020, down 20.75% from CNY 2,152,476,623 at the end of 2019[25]. - The revenue for the fourth quarter of 2020 was CNY 588,222,857, with a significant loss in net profit attributable to shareholders of -CNY 527,325,613[29]. - The company reported a total of 58,254,834 in financial assets at the beginning of the period, with a net increase of 1,896,064,979 and a net decrease of 1,443,838,874, resulting in a year-end balance of 520,863,280[168]. Market Strategy and Operations - The company plans to focus on new product development and market expansion strategies in the upcoming year[24]. - The company has undergone a significant asset restructuring, acquiring 100% equity of a subsidiary to enhance its market position[24]. - The company aims to enhance its digital fashion ecosystem, focusing on multi-brand and digital operations[36]. - The company has invested in international designer brands, including United Nude, to expand its product offerings[38]. - The company has established a research center for women's foot comfort in collaboration with the China Leather and Footwear Research Institute[39]. - The company is committed to providing a diverse range of fashionable products to meet the needs of different consumer segments[36]. - The company has a focus on health and comfort in its product offerings, particularly through the KISSCAT brand[39]. - The company is exploring the optimization and upgrading of traditional production lines to smart production lines, improving efficiency and product quality while reducing labor costs[80]. - The company is transitioning from traditional production lines to flexible and intelligent production lines, enhancing efficiency through digital transformation in the supply chain[81]. - The company is implementing a digital research and development system to improve supply chain responsiveness and product development efficiency, focusing on creating popular products[176]. Risks and Challenges - The company has described potential risks in its annual report, urging investors to pay attention to these risks[10]. - The company anticipates risks related to macroeconomic fluctuations that could impact consumer spending on footwear and marketing services[179]. - The company recognizes the risk of product development not aligning with market demands, particularly in the fast-changing women's footwear sector[180]. - The company faces significant brand operation risks due to intense competition in the domestic women's shoe market, requiring continuous enhancement of brand influence and reputation[181]. - The overall retail environment remains challenging, with the apparel sector's retail sales declining by 6.6% year-on-year, indicating ongoing pressure on consumer spending[76]. Digital Transformation and Marketing - The company has established a social media commercial content trading management platform to connect advertisers with MCN companies and influencers, enhancing its commercial value[68]. - The company is focusing on enhancing its marketing automation capabilities to maximize the effectiveness of its advertising strategies[93]. - The company has launched multiple complementary brands targeting different consumer preferences, including KISSCAT, ZSAZSAZSU, and KASMASE, to enhance its multi-brand strategy[98]. - The company shifted towards a direct-to-consumer (D2C) model, aiming to eliminate intermediaries and enhance consumer engagement through live streaming and social media marketing[117]. - The company has established long-term stable business partnerships with major mobile internet advertising platforms, enhancing its media resource capabilities[72]. Research and Development - The company has established a 3D design resource library and implemented digital development tools, enabling product development timelines of 8 hours for derivative products, 7 days for improved products, and 30-45 days for new products[101]. - The company has obtained 13 utility model and design patents in its efforts to develop new products, materials, and equipment[102]. - The total R&D expenditure for the period was ¥50,365,420, accounting for 2.68% of the operating revenue[143]. - The number of R&D personnel was 270, representing 5.29% of the total workforce[144]. - R&D expenses increased by 15.90% to CNY 50.37 million, reflecting a commitment to innovation despite overall revenue decline[127].

2021 年第一季度报告 公司代码：603608 公司简称：天创时尚 天创时尚股份有限公司 2021 年第一季度报告 单位：元 币种：人民币 非经常性损益项目和金额 √适用 □不适用 1 / 29 | 一、 | 重要提示 3 | | --- | --- | | 二、 | 公司基本情况 3 | | 三、 | 重要事项 6 | | 四、 | 附录 12 | 2021 年第一季度报告 一、 重要提示 二、 公司基本情况 2.1 主要财务数据 | | 本报告期末 | 上年度末 | 本报告期末比上年 | | | --- | --- | --- | --- | --- | | | | | 度末增减(%) | | | 总资产 | 2,647,884,354 | 2,691,246,326 | -1.61 | | | 归属于上市公司股东的净资产 | 1,731,556,700 | 1,705,761,354 | 1.51 | | | 期末总股本 | 428,907,027 | 428,895,467 | 0.00 | | | | 年初至报告期末 | 上年初至上年报告 | 比上年同期增减 | | | | | 期末 | (%) ...

Financial Performance - Operating revenue decreased by 12.56% to CNY 1,321,259,829 for the period from January to September[7] - Net profit attributable to shareholders decreased by 61.92% to CNY 65,424,573 compared to the same period last year[7] - Basic earnings per share decreased by 63.41% to CNY 0.15[7] - The weighted average return on equity decreased by 4.90 percentage points to 2.96%[7] - Total profit decreased by 55.32% to CNY 88,596,306, mainly due to reduced operating income from the impact of COVID-19[18] - Net profit fell by 61.18% to CNY 67,336,114, attributed to decreased operating income during the reporting period[19] - The company reported a net profit margin of approximately 6.5% for Q3 2020, compared to 9.2% in Q3 2019[31] - The company reported a total profit of ¥37,832,129 for Q3 2020, down from ¥56,119,227 in Q3 2019, a decline of 32.6%[32] - The company reported a total comprehensive income for the third quarter was CNY -7,106,162, compared to CNY 64,848,515 in the same quarter of 2019[36] Cash Flow - Cash flow from operating activities decreased by 17.06% to CNY 167,851,588 for the year-to-date[7] - Cash flow from investment activities showed a net outflow of CNY 740,256,036, a 316.76% increase due to more investments in financial products and securities[20] - Cash flow from financing activities was CNY 480,563,142, primarily from the issuance of convertible bonds[20] - The company raised CNY 593,140,000 from investment activities in 2020, compared to no cash inflow from this source in 2019[39] - The company’s cash flow from operating activities was impacted by a decrease in cash received from sales of goods and services, which fell to CNY 1,273,358,418 from CNY 1,676,674,575 in the previous year, a decline of 24.1%[37] Assets and Liabilities - Total assets increased by 18.85% to CNY 3,162,626,186 compared to the end of the previous year[7] - Total liabilities increased to CNY 874,264,838 in Q3 2020, compared to CNY 415,148,646 in Q3 2019[30] - The total amount of short-term borrowings was CNY 70,000,000, maintaining a manageable debt level[46] - Total current assets increased to CNY 1,282,697,537, reflecting a rise of CNY 5,417,453 compared to the previous period[45] - Total liabilities amounted to $415,148,646, a decrease from $416,590,786, reflecting a reduction of $1,442,140[50] Shareholder Information - The total number of shareholders reached 27,797 by the end of the reporting period[9] - The largest shareholder, Pingtan Hetian Equity Investment Partnership, holds 20.66% of shares[9] - Shareholders' equity totaled CNY 2,172,405,026, with retained earnings at CNY 646,731,431, indicating strong profitability retention[47] Revenue and Growth - The company's footwear and apparel segment achieved revenue of 425 million RMB in Q3 2020, representing a year-on-year growth of 16.75%[14] - E-commerce revenue increased by 53.39% year-on-year, with its revenue share rising from 20% in 2019 to 28.5% in 2020, and gross margin improved to 64.22%[13] - The company launched a new C2M model "2C" women's shoe brand, enhancing digital capabilities from demand to production[13] - The company plans to continue expanding its market presence and invest in new product development in the upcoming quarters[31] Expenses - Financial expenses increased by 116.99% to CNY 3,562,939 due to higher bank loan interest and convertible bond interest expenses[18] - The company experienced a significant increase in sales expenses, which rose to ¥93,086,757 in Q3 2020 from ¥60,128,901 in Q3 2019, an increase of 54.7%[35] - Research and development expenses for Q3 2020 amounted to CNY 14,119,729, representing a 46.5% increase from CNY 9,622,047 in Q3 2019[31] - R&D expenses increased to ¥10,628,948 in Q3 2020, up from ¥4,229,632 in Q3 2019, marking a rise of 151.5%[35] Investment Activities - The company reported a total cash inflow from investment activities of CNY 1,032,427,368, compared to CNY 920,241,973 in the previous year, representing an increase of 12.2%[38] - The company reported a net loss of ¥7,106,162 for Q3 2020, compared to a loss of ¥1,606,848 in Q3 2019, indicating a worsening financial position[35] - The company has not disclosed any new product developments or market expansion strategies in this report[7] Strategic Initiatives - The company emphasized a strategy of "lean inventory, structural adjustment, and innovative future" to drive digital transformation[13] - The company implemented new revenue recognition standards starting January 1, 2020, impacting financial reporting[48] - The company has implemented new revenue recognition standards starting January 1, 2020, impacting financial reporting[50]

Financial Performance - The company's operating revenue for the first half of the year was CNY 860,308,495, a decrease of 17.78% compared to CNY 1,046,290,070 in the same period last year [22]. - The net profit attributable to shareholders was CNY 37,599,883, down 68.96% from CNY 121,125,875 year-on-year [22]. - The basic earnings per share decreased by 67.86% to CNY 0.09 from CNY 0.28 in the previous year [24]. - The weighted average return on equity fell by 3.80 percentage points to 1.73% compared to 5.53% in the same period last year [24]. - The net cash flow from operating activities was CNY 126,163,495, a decline of 12.11% from CNY 143,540,209 in the previous year [23]. - The company reported a total asset value of CNY 2,658,823,847, a slight decrease of 0.08% from CNY 2,660,974,365 at the end of the previous year [23]. - The total revenue for the main business was CNY 858,942,596, representing a year-on-year decrease of 17.76% [134]. - The leather products and footwear sector generated revenue of CNY 750,171,316, with a gross margin of 66.57%, down 13.59% year-on-year [132]. - The software information technology services sector saw revenue of CNY 108,771,280, with a gross margin of 25.94%, down 38.34% year-on-year [132]. - The company achieved a total revenue of 860,308,495 RMB, a decrease of 17.78% compared to the previous year [126]. Risk Management - The report includes a risk statement indicating that future plans may be affected by uncertainties and risks, which should be noted by investors [7]. - The company emphasizes the importance of investor awareness regarding potential risks outlined in the report [8]. - The report indicates that the company is actively monitoring and managing various operational risks [8]. - The company faces risks from macroeconomic fluctuations that could impact consumer spending on fashion footwear and mobile internet marketing services [149]. - The company is at risk of failing to adapt to changing market demands and trends in the fast-paced women's footwear sector, which could affect brand recognition and sales performance [150]. - The competitive landscape in the domestic women's footwear market is intense, requiring the company to continuously enhance brand influence and operational capabilities [151]. - The company acknowledges the risk of ineffective expansion into new marketing channels, particularly online, which could adversely affect overall business performance [153]. Corporate Governance - The board of directors confirmed that the semi-annual report is accurate and complete, with no significant omissions or misleading statements [4]. - The company has not engaged in any non-operational fund occupation by controlling shareholders or related parties [8]. - The company has confirmed that all board members attended the board meeting for the report's approval [4]. - The company has committed to ensuring that all information provided during transactions is accurate and complete, avoiding any misleading statements [160]. - The company guarantees that all provided transaction-related documents are accurate and complete, with no significant omissions or misleading information [162]. - The company has established a framework for monitoring compliance with these commitments to protect shareholder interests [184]. - The company has a clear strategy to mitigate risks associated with related party transactions, enhancing transparency and accountability [184]. - The company has established measures to ensure that any related party transactions are conducted in accordance with legal requirements and corporate governance [184]. Shareholder Actions - The company plans to distribute cash dividends of RMB 2.0 per 10 shares, totaling approximately RMB 83.93 million, based on the adjusted total share count after accounting for repurchased shares [6]. - The company has established a performance commitment and compensation agreement that outlines the conditions for unlocking shares [164]. - The company is committed to strict adherence to the performance obligations as outlined in the compensation agreement [164]. - The company has a lock-up period of 36 months for its shares post-IPO, with specific conditions for extension based on stock performance [174]. - The company will ensure that any share reductions after the lock-up period will not be below the IPO price [174]. - The company has committed to maintaining joint control over the issuer even after a reduction in indirect shareholding ratio [179]. - The company has a structured plan for share reduction that adheres to regulatory requirements and internal policies [180]. - The company will notify the performance commitment subject within 5 trading days after the annual report disclosure regarding any compensation amounts due [166]. Digital Transformation and Marketing - The company is focused on building a user-centered digital fashion ecosystem, emphasizing the integration of product and retail capabilities [28]. - The company has developed a proprietary DMP platform to enhance advertising precision and reduce promotion costs [63]. - The company is committed to digital transformation, utilizing user data to drive business capabilities and enhance consumer services [78]. - The company is leveraging its digital marketing capabilities to enhance advertising precision and effectiveness, maintaining long-term partnerships with major clients like Baidu and Tencent [105]. - The company has launched a social media commercial content trading management platform to connect advertisers with suitable MCNs and influencers [66]. - The company has established a digital research and development system in collaboration with leading PLM software companies, completing the development of a product lifecycle management system [99]. Product Development and Innovation - The company has established a research center for women's foot comfort in collaboration with the China Leather and Footwear Research Institute, enhancing its product development capabilities [32]. - The company has obtained 13 utility model and design patents, enhancing its capabilities in new product and material development [99]. - The company has measured over 12,000 foot shape data points, achieving a shoe-to-foot matching rate of over 95%, significantly improving consumer comfort [99]. - The company is focusing on optimizing offline stores by replacing inefficient ones and enhancing the quality of high-performing stores to improve operational efficiency [115]. Market Strategy - The company aims to expand its market presence through a multi-brand strategy that caters to different consumer segments and lifestyle needs [30]. - The company is actively expanding its product offerings and market presence through strategic investments and partnerships in the fashion industry [96]. - The company is focusing on a multi-brand strategy, launching various brands to meet diverse consumer needs, including KISSCAT and ZSAZSAZSU [96]. - The company has established a comprehensive multi-brand retail service model, integrating the entire industry chain [69]. Operational Efficiency - The company maintains a self-production ratio of 73.96%, ensuring quality control and efficient production processes [57]. - The company has established six regional warehouses with a storage capacity of over 30,000 SKUs and an order processing capability of 25,000-30,000 orders per day, achieving a delivery time of 1-2 days [58]. - The company has launched a new generation of automated intelligent production lines, enhancing efficiency through automation, digitalization, and intelligence [100]. - The company has implemented a stock incentive plan, which was approved by the board and supervisory committee [191].

Financial Performance - Operating revenue for the period was CNY 370,258,046, representing a decline of 24.59% year-on-year[6]. - Net profit attributable to shareholders was a loss of CNY 5,663,283, a decrease of 114.77% compared to a profit of CNY 38,352,066 in the same period last year[6]. - Basic earnings per share were -CNY 0.01, a decrease of 111.11% from CNY 0.09 in the same period last year[6]. - The company reported a net loss of CNY 5,225,012 for the first quarter, a decrease of 113.50% compared to a net profit of CNY 38,708,854 in the same period last year[16]. - The company reported a significant reduction in cash outflow for purchasing goods and services, which was 88,555,995 RMB compared to 167,468,356 RMB in Q1 2019[52]. - The total profit for Q1 2020 was -7,320,525 RMB, compared to a profit of 43,615,361 RMB in Q1 2019, highlighting a challenging financial environment[45]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,612,472,999, a decrease of 1.82% compared to the end of the previous year[6]. - Total liabilities as of March 31, 2020, were CNY 444,353,857, down from CNY 488,569,339 as of December 31, 2019[38]. - Total equity attributable to shareholders was CNY 2,147,752,468, slightly down from CNY 2,152,476,623 as of December 31, 2019[38]. - Current liabilities rose from CNY 438,264,640 to CNY 443,682,093, an increase of CNY 5,417,453[56]. - Total liabilities increased from CNY 488,569,339 to CNY 493,986,792, reflecting an increase of CNY 5,417,453[56]. Cash Flow - The net cash flow from operating activities increased by 18.10% to CNY 32,650,877 compared to CNY 27,647,349 in the previous year[6]. - The cash inflow from operating activities was 432,177,592 RMB in Q1 2020, down from 592,798,622 RMB in Q1 2019, reflecting reduced sales activity[49]. - The net cash flow from investing activities was -192,575,666 RMB, worsening from -57,423,891 RMB in Q1 2019[50]. - Cash inflow from financing activities was 36,000,000 RMB, a decrease of 53.8% compared to 78,000,000 RMB in Q1 2019[52]. Shareholder Information - The total number of shareholders at the end of the reporting period was 30,818[8]. - The largest shareholder, Gao Chuang Co., Ltd., held 21.23% of the shares, totaling 91,288,856 shares[8]. Impact of COVID-19 - The company faced significant impacts from the COVID-19 pandemic, affecting both offline retail and mobile internet advertising sectors[10]. - Total revenue for the first quarter was CNY 370,258,046, a decrease of 24.59% compared to CNY 490,991,983 in the same period last year, primarily due to the impact of COVID-19[16]. E-commerce Performance - E-commerce revenue increased by 77.25% year-on-year, accounting for 30.53% of total revenue, up from 20% in 2019[11]. - E-commerce revenue increased by 77.25% year-over-year, reaching RMB 95.18 million in Q1 2020, compared to RMB 53.70 million in Q1 2019[28]. Research and Development - Research and development expenses for Q1 2020 were CNY 10,161,780, up from CNY 8,849,653 in Q1 2019, reflecting a growth of 14.8%[43]. - Research and development expenses rose to 6,045,199 RMB in Q1 2020, up from 4,952,732 RMB in Q1 2019, indicating a focus on innovation[46]. Financial Ratios - The weighted average return on equity was -0.26%, down 2.04 percentage points from 1.78% in the previous year[6]. - Gross profit margin for the fashion footwear segment improved by 8.44 percentage points to 64.08%, despite a 21.94% decline in revenue[25]. - Gross profit margin for Q1 2020 was approximately 1.0%, compared to 10.5% in Q1 2019[43].

Financial Performance - The net profit attributable to ordinary shareholders for 2019 was RMB 207,405,264, with a cash dividend amounting to 48.23% of this net profit[5]. - The company's operating revenue for 2019 was CNY 2,089,205,001, representing a 1.80% increase compared to CNY 2,052,342,115 in 2018[21]. - The net profit attributable to shareholders for 2019 was CNY 207,405,264, a decrease of 14.37% from CNY 242,200,380 in 2018[21]. - The basic earnings per share for 2019 was CNY 0.49, down 12.50% from CNY 0.56 in 2018[23]. - The total assets at the end of 2019 were CNY 2,660,974,365, a decrease of 1.91% from CNY 2,712,671,317 at the end of 2018[22]. - The company's net assets attributable to shareholders at the end of 2019 were CNY 2,152,476,623, a slight decrease of 0.09% from CNY 2,154,445,540 at the end of 2018[22]. - The company reported a decrease of 5.82% in net profit after deducting non-recurring gains and losses, totaling CNY 193,293,483 in 2019 compared to CNY 205,230,859 in 2018[22]. - The weighted average return on equity for 2019 was 9.81%, down from 11.70% in 2018, a decrease of 1.89 percentage points[23]. - The gross profit margin for the main business is 54.30%, a decrease of 1.91 percentage points year-on-year[124]. - The gross profit margin for the overall business was 58.11%, down by 0.53% from the previous year[150]. Shareholder Returns - The company does not plan to distribute profits or increase capital from reserves for the 2019 fiscal year[5]. - The company has established a cash dividend policy to ensure stable returns to shareholders, with a minimum cash distribution of 15% of the distributable profits each year[192]. - The company plans to distribute dividends in a combination of cash and stock, prioritizing cash dividends when conditions are met[192]. - The company aims to maintain a cash dividend ratio of at least 80% for mature stages without major capital expenditures[193]. - The company has a three-year shareholder return plan (2019-2021) to enhance transparency and protect minority shareholders' rights[192]. Risk Management - The company has described potential risks in its annual report, urging investors to pay attention[7]. - The report includes forward-looking statements that are subject to risks and uncertainties[6]. - The company faces risks from macroeconomic fluctuations that could impact consumer spending on fashion footwear and mobile internet marketing[181]. - If the acquired company fails to meet performance expectations, there is a risk of goodwill impairment that could significantly reduce the company's profits[188]. - The company emphasizes the importance of risk management and improving core competitiveness to navigate market challenges[172]. Business Operations - The company operates both directly managed stores and franchised stores[11]. - The company operates in two main business segments: fashion footwear and apparel, and mobile internet marketing, focusing on a consumer-centric digital fashion ecosystem[32]. - The company has established a digitalized and integrated supply chain model, enhancing efficiency and user experience through a focus on product and retail ends[53]. - The company aims to expand its market presence by diversifying its product offerings and enhancing brand recognition through innovative marketing strategies[32]. - The company has strengthened its supply chain optimization efforts, focusing on cost reduction and quality improvement through smart manufacturing[112]. Marketing and Sales - The online business grew by 36.5% year-on-year, increasing its share of the main business revenue in the fashion footwear and apparel sector from 14.61% to 20.37%[59]. - The company has established a comprehensive marketing strategy, leveraging partnerships with major apps like Taobao and Baidu to enhance user acquisition and engagement[60][61]. - The company aims to enhance its digital marketing capabilities through the establishment of a social media content trading management platform, facilitating connections between advertisers and influencers[64]. - The company will focus on expanding new marketing channels, particularly online, to improve sales performance and adapt to evolving consumer behaviors[185]. Research and Development - The company emphasizes original design and digital innovation in its R&D, focusing on user comfort and fashion trends[54]. - Research and development expenses increased by 22.13% to $43.45 million compared to the previous year[121]. - The company launched 13 new utility and design patents, focusing on new products, materials, and equipment development[94]. - The introduction of a 3D design resource library system significantly increased the digital information available for new product development, doubling the effective digital data compared to the previous year[114]. - The company aims to enhance its market position by focusing on differentiated branding and product offerings to meet diverse consumer needs[171]. Acquisitions and Investments - The company completed a major asset restructuring by acquiring 100% of Xiaozhi Technology for a total transaction price of RMB 877,500,000, which included issuing 35,734,167 shares at RMB 14.37 per share and cash payment of RMB 364,000,000[162]. - Xiaozhi Technology achieved a net profit attributable to the parent company of RMB 113,731,132, with a net profit realization rate of 102% against its commitment[163]. - The company invested RMB 757,618,514 in Xiaozhi Technology, maintaining a 100% equity stake, funded by its own resources[164]. - The company confirmed goodwill of RMB 613 million from the acquisition of a subsidiary, which requires annual impairment testing[187]. Operational Efficiency - The company improved inventory turnover days from 187 days in 2018 to 181 days in 2019, indicating better inventory management[161]. - The accounts receivable turnover days improved from 63 days in 2018 to 56 days in 2019, reflecting enhanced cash flow management[161]. - The self-produced capacity utilization rate exceeded 90%, with a self-production ratio of approximately 62%[112]. - The company has developed a PLM system for product lifecycle management, digitizing over 10,000 product elements to support rapid product development[95]. - The company will optimize its organizational structure and operational management system to improve efficiency and reduce management costs[177].