Financial Performance - The company's operating revenue for the first half of 2019 was CNY 634,330,007.50, a decrease of 12.50% compared to CNY 724,952,428.77 in the same period last year[18]. - The net profit attributable to shareholders of the listed company was CNY 8,828,548.79, down 76.77% from CNY 38,001,699.11 in the previous year[18]. - The net cash flow from operating activities was CNY 6,494,925.60, a significant decline of 88.56% compared to CNY 56,774,890.58 in the same period last year[19]. - The basic earnings per share decreased to CNY 0.04, down 76.47% from CNY 0.17 in the previous year[20]. - The total assets at the end of the reporting period were CNY 1,225,106,342.35, a decrease of 7.03% from CNY 1,317,716,727.01 at the end of the previous year[19]. - The net assets attributable to shareholders of the listed company increased slightly by 0.87% to CNY 1,022,213,170.99 from CNY 1,013,376,149.36 at the end of the previous year[19]. - The company reported a significant reduction in government subsidies received during the reporting period compared to the previous year, impacting net profit[20]. - The weighted average return on net assets decreased to 0.87%, down 2.32 percentage points from 3.19% in the previous year[20]. - The company achieved operating revenue of 634.33 million RMB, a decrease of 12.50% compared to the same period last year[34]. - Net profit attributable to the parent company was 8.83 million RMB, down 76.77% year-on-year[34]. Sales and Market Performance - Domestic sales revenue was 551.92 million RMB, a decline of 17.62%, while foreign sales revenue increased by 49.92% to 82.41 million RMB[34]. - The number of domestic stores decreased by 56, all of which were direct-operated stores, leaving a total of 1,532 stores[34]. - The domestic footwear market saw a sales revenue of 600 billion USD in 2018, with a growth rate of 5.1%[27]. - Online retail sales in China accounted for 19.6% of total retail sales in the first half of 2019, up from 18.4% the previous year[26]. Research and Development - The company’s R&D expenses were 6.36 million RMB, down 35.45% from the previous year[36]. - The company is investing 50 million in research and development for new technologies aimed at enhancing user experience[52]. - Research and development expenses for the first half of 2019 were CNY 6,361,143.52, down 35.5% from CNY 9,854,461.34 in the first half of 2018[91]. Cash Flow and Liquidity - The company's cash and cash equivalents decreased by 89.22% to ¥40,033,732.48, compared to ¥371,301,677.76 in the previous period[37]. - Other current assets increased significantly by 1,566.84% to ¥368,989,420.21, attributed to an increase in purchased financial products[37]. - Accounts payable decreased by 39.95% to ¥113,166,314.96, down from ¥188,463,415.78 in the previous period[37]. - The company's net cash flow from operating activities decreased due to a reduction in revenue[37]. - The company reported a 45.44% decrease in payable taxes, amounting to ¥6,761,933.21, down from ¥12,394,641.91[40]. Risks and Challenges - The company is facing risks related to channel changes, particularly the competition from online sales and shopping centers affecting traditional department store sales[44]. - Inventory control risks are present due to low turnover rates and potential overstocking, which could lead to losses if not managed properly[44]. - The company experienced a decline in export sales, with revenues dropping from ¥269 million in 2016 to ¥120 million in 2018, although there was a slight recovery in 2019[45]. Strategic Initiatives - The company plans to enhance online store operations and expand into shopping center channels to mitigate channel risk[44]. - The company is considering strategic acquisitions to bolster its product offerings, with a budget of 200 million allocated for potential deals[52]. - Market expansion plans include entering three new international markets by Q4 2019, which is expected to increase market share by 10%[52]. Shareholder and Equity Information - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of listing, with a lock-up period ending on June 29, 2019[49]. - After the lock-up period, the company will limit the number of shares transferred annually to no more than 25% of the total indirect shares held during the tenure of the executives[49]. - The company will announce any share reduction plans at least three trading days in advance if the shareholding exceeds 5%[50]. - The company has confirmed that all commitments made by shareholders and related parties have been fulfilled during the reporting period[49]. - The total number of shares decreased from 219,906,650 to 219,896,600 due to the cancellation of 10,050 shares[67]. Compliance and Regulatory Matters - There are no significant legal disputes or regulatory issues reported during the period, ensuring a stable operational environment[54]. - The company has committed to maintaining compliance with all financial regulations, with no outstanding debts or penalties reported[54]. Accounting Policies and Financial Reporting - The company has adjusted its accounting policies in accordance with new financial instrument standards effective from January 1, 2019, but this will not have a significant impact on financial statements[61]. - The company prepared its financial statements in accordance with the accounting standards issued by the Ministry of Finance, ensuring a true and complete reflection of its financial status and operating results[125]. - The company evaluates its ability to continue as a going concern for the next 12 months and found no significant doubts regarding its ongoing viability[123]. Financial Instruments and Investments - The company classifies financial instruments into three categories: financial assets measured at amortized cost, financial assets measured at fair value with changes recognized in other comprehensive income, and financial assets measured at fair value with changes recognized in profit or loss[144][145]. - The company recognizes foreign currency transactions at the spot exchange rate on the transaction date, with any exchange differences recorded in the current profit or loss[141]. - The company assesses expected credit losses based on the risk of default for financial assets measured at amortized cost and fair value, confirming loss provisions accordingly[160]. Fixed Assets and Depreciation - Fixed assets are recognized when they are held for production, service provision, leasing, or management, with a useful life exceeding one accounting year[191]. - The depreciation method for fixed assets includes straight-line depreciation with varying rates, such as 4.5% for buildings and 10% for machinery[191]. - Borrowing costs can be capitalized if they are directly attributable to the acquisition or production of qualifying assets[198].

Financial Performance - The company's operating revenue for 2018 was CNY 1,347,678,813.40, a decrease of 9.97% compared to CNY 1,496,871,964.82 in 2017[21] - The net profit attributable to shareholders for 2018 was a loss of CNY 62,373,999.41, representing a decline of 443.25% from a profit of CNY 18,171,397.36 in 2017[21] - The net cash flow from operating activities was CNY 53,933,641.21, down 36.35% from CNY 84,729,548.57 in the previous year[21] - The total assets at the end of 2018 were CNY 1,317,716,727.01, a decrease of 8.35% from CNY 1,437,751,945.99 at the end of 2017[21] - The company's net assets attributable to shareholders decreased by 10.50% to CNY 1,013,376,149.36 at the end of 2018 from CNY 1,132,271,305.25 at the end of 2017[21] - Basic earnings per share for 2018 were CNY -0.287, a decline of 443.30% from CNY 0.084 in 2017[22] - The weighted average return on equity was -5.84% in 2018, a decrease of 7.42 percentage points from 1.58% in 2017[22] - The company reported non-recurring gains of ¥51.56 million in 2018, primarily from government subsidies and asset disposals[27] - The company achieved operating revenue of CNY 1,347,678,813.40, a decrease of 9.97% year-on-year[43] - The net profit attributable to shareholders was CNY -62,374,000, a decline of 443.25% compared to the previous year[43] - Domestic sales revenue reached CNY 1,226,507,269.84, down 8.55% year-on-year[48] - Export sales revenue was CNY 119,632,601.98, representing a decrease of 21.78% year-on-year[48] - The company reported a net profit of CNY -62.38 million for 2018, with no cash dividends distributed to shareholders[91] Operational Challenges - The company faced significant losses due to a reduction in domestic store numbers and a decline in export orders, leading to substantial layoffs in the export department[23] - The company closed a net of 109 stores during the reporting period, including 100 direct-operated stores[45] - The company experienced a significant drop in net profit after deducting non-recurring gains and losses, reporting a loss of ¥84.90 million in Q4 2018[25] - The company is facing risks related to accounts receivable due to potential payment difficulties from department stores amid increasing competition from online and shopping center channels[86] - The company plans to enhance online store operations and expand into shopping center channels to mitigate channel risk due to the decline of traditional department store advantages[84] Inventory and Assets - At the end of the reporting period, the company's inventory was CNY 5.31 billion, representing 40.29% of total assets, indicating a significant inventory control risk[85] - The company's export sales revenue decreased significantly from CNY 2.69 billion in 2016 to CNY 1.20 billion in 2018, reflecting a declining trend in international sales[86] - The company's total assets at the beginning of the reporting period were CNY 1,437.75 million, while at the end, total assets decreased to CNY 1,317.72 million, resulting in an asset-liability ratio increase from 20.44% to 22.60%[137] - The company's inventory amounted to 627.62 million RMB, accounting for 47.53% of total assets, highlighting its significance as a key asset[183] Strategic Initiatives - The company’s main business focuses on mid-to-high-end shoe brand operation, product design, production, and sales, supported by a self-owned omni-channel marketing network[30] - The company operates a multi-brand strategy, with self-owned brands including HARSON, KADINA, and ROBERTA, and has established a strong market presence[32] - The company is actively expanding online retail partnerships with platforms like Vipshop, JD, and Tmall[45] - The company aims to strengthen its e-commerce channels and partnerships with platforms like JD.com and Tmall to drive online sales growth[82] - The company has established a vertical integration business model to enhance supply chain responsiveness and improve gross margins[83] Governance and Compliance - The company appointed Da Hua Accounting Firm as the auditor for the 2018 financial report, with a remuneration of CNY 1,200,000[100] - The company has not reported any major litigation or arbitration matters that have not been disclosed in temporary announcements[102] - The company has not faced any risks of suspension or termination of its listing during the reporting period[101] - The company’s governance structure complies with the requirements of the China Securities Regulatory Commission, with no significant discrepancies noted[170] - The company emphasizes communication with investors, ensuring that minority shareholders' rights are respected and protected[170] Employee and Management Structure - The total number of employees in the parent company is 3,109, while the main subsidiaries employ 2,878, resulting in a total of 5,987 employees[163] - The company has established close ties with well-known colleges to recruit talented individuals, enhancing its talent pool[165] - The performance annual salary for senior management is determined based on annual operational performance and market conditions[164] - The compensation for directors, supervisors, and senior management is based on a model of "basic annual salary + performance annual salary"[160] Financial Management - The company plans to use up to 75 million RMB of idle raised funds and up to 400 million RMB of idle self-owned funds for purchasing financial products or structured deposits[116] - The company has invested 91 million RMB in bank financial products from idle raised funds, with a remaining balance of 12 million RMB[117] - The company has invested 358 million RMB in bank financial products from self-owned funds, with a remaining balance of 8.1 million RMB[117] - The company has not reported any overdue amounts from entrusted financial products[117] Legal Matters - The company is currently involved in a significant lawsuit regarding intellectual property, with a claim amounting to CNY 50,000,000[102] - Tibet Hason Trading Co., Ltd. has ongoing litigation cases involving unpaid goods totaling RMB 902,066.18, RMB 237,972.08, and RMB 525,261.44, with various defendants ordered to pay these amounts[104] - The company has reported difficulties in enforcing court judgments, indicating potential challenges in cash flow and receivables collection[106] Shareholder Information - The largest shareholder, Zhenxing International Co., Ltd., holds 148,359,935 shares, representing 67.46% of the total shares[140] - The total share capital increased from 217,360,000 shares to 219,906,650 shares due to the issuance of 2,546,650 restricted stock options[130] - The company has a total of 148,359,935 restricted shares held by Zhenxing International Co., Ltd., which will be locked for 36 months starting from June 29, 2019[142] - The actual controller of the company is Chen Yuzhen, who also holds 52.74% of HARRISON (BVI) and 67.46% of Zhenxing International[144]

Financial Performance - Operating revenue fell by 11.88% to CNY 349,753,148.06 year-on-year[6] - Net profit attributable to shareholders decreased by 44.63% to CNY 20,055,459.97 compared to the same period last year[6] - Basic earnings per share dropped by 45.51% to CNY 0.091[6] - Total operating revenue for Q1 2019 was CNY 349,753,148.06, a decrease of 11.87% compared to CNY 396,883,869.53 in Q1 2018[22] - Net profit for Q1 2019 was CNY 19,297,019.04, a decline of 46.3% from CNY 35,916,079.78 in Q1 2018[23] - Earnings per share for Q1 2019 was CNY 0.091, compared to CNY 0.17 in Q1 2018[23] - Total operating costs for Q1 2019 were CNY 330,374,079.02, down 11.91% from CNY 375,074,075.33 in Q1 2018[22] Cash Flow - Net cash flow from operating activities was negative at CNY -26,030,558.24, a significant decline from CNY 66,091,625.26 in the previous year[6] - The company's cash flow from operating activities for Q1 2019 was negative at -45,067,565.11 RMB, compared to a positive cash flow of 57,128,266.07 RMB in Q1 2018, indicating a significant decline[30] - Total cash inflow from operating activities was 247,017,173.54 RMB, down 27.8% from 342,133,431.06 RMB in the same period last year[30] - Cash outflow from operating activities increased to 292,084,738.65 RMB, up 2.4% from 285,005,164.99 RMB in Q1 2018[31] - The company reported a net cash flow from investing activities of -222,827,438.20 RMB, worsening from -25,657,451.15 RMB in Q1 2018[31] - Cash outflow for investment activities surged to 223,121,219.68 RMB, compared to 28,460,491.91 RMB in the previous year, reflecting increased investment efforts[31] Assets and Liabilities - Total assets decreased by 5.73% to CNY 1,242,170,541.19 compared to the end of the previous year[6] - Total current assets decreased to 1,025,412,204.54 RMB from 1,093,561,304.55 RMB, reflecting a decline of approximately 6.23%[14] - Total liabilities decreased to 202,918,847.83 RMB from 297,777,619.07 RMB, a reduction of about 31.86%[17] - The company's total assets decreased to 1,242,170,541.19 RMB from 1,317,716,727.01 RMB, representing a decline of approximately 5.68%[16] - Total liabilities for Q1 2019 were CNY 225,291,670.45, down from CNY 295,148,875.87 in Q1 2018[21] Shareholder Information - The number of shareholders reached 18,354 at the end of the reporting period[10] - The largest shareholder, Zhenxing International, holds 67.46% of the shares[10] Expenses - Research and development expenses decreased by 41.52% to 2,937,594.27 RMB from 5,023,614.65 RMB year-on-year, primarily due to a reduction in R&D personnel[16] - Management expenses decreased by 37.45% to 14,401,523.31 RMB from 23,025,709.41 RMB, mainly due to significant layoffs in the previous period[16] - The company reported a significant increase in cash paid for purchasing goods and services, totaling 181,832,086.72 RMB, up from 152,048,933.12 RMB in Q1 2018[30] Other Income - Non-operating income totaled CNY 4,149,351.74, primarily from government subsidies and investment income[8] - Other income for Q1 2019 was CNY 3,701,543.82, significantly lower than CNY 21,761,499.02 in Q1 2018[22] - The company recorded other income of ¥3,422,290.22 in Q1 2019, which was not present in Q1 2018[25]

Financial Performance - The company's operating revenue for 2018 was CNY 1,347,678,813.40, a decrease of 9.97% compared to CNY 1,496,871,964.82 in 2017[21] - The net profit attributable to shareholders for 2018 was a loss of CNY 62,373,999.41, a decline of 443.25% from a profit of CNY 18,171,397.36 in 2017[21] - The basic earnings per share for 2018 was -0.287 CNY, compared to 0.084 CNY in 2017, reflecting a decrease of 443.30%[22] - The total assets at the end of 2018 were CNY 1,317,716,727.01, down 8.35% from CNY 1,437,751,945.99 at the end of 2017[21] - The company reported a net cash flow from operating activities of CNY 53,933,641.21, a decrease of 36.35% from CNY 84,729,548.57 in 2017[21] - The company’s net assets attributable to shareholders decreased by 10.50% to CNY 1,013,376,149.36 at the end of 2018 from CNY 1,132,271,305.25 at the end of 2017[21] - The company achieved operating revenue of CNY 1,347,678,813.40, a decrease of 9.97% year-on-year[43] - The net profit attributable to shareholders was CNY -62,374,000, a decline of 443.25% compared to the previous year[43] - Domestic sales revenue reached CNY 1,226,507,269.84, down 8.55% year-on-year[48] - Export sales revenue was CNY 119,632,601.98, representing a decrease of 21.78% year-on-year[48] Operational Challenges - The company faced significant losses due to a reduction in domestic store numbers and a decline in domestic sales performance[23] - The company closed a net of 109 stores during the reporting period, including 100 direct-operated stores[45] - The company reported a significant increase in long-term equity investments, rising by 465.70% due to investments in a new subsidiary[65] - The company reported a decline in export revenue, primarily due to clients shifting orders to Southeast Asia and Central America, indicating a risk of continued revenue decrease if the export environment worsens[82] Research and Development - Research and development expenses decreased by 29.78% to CNY 13,862,000.16[50] - The total R&D investment amounted to 13,862,000.16 CNY, representing 1.03% of the operating revenue[62] - The company has implemented a consumer-oriented product development strategy, actively participating in international shoe exhibitions to enhance R&D capabilities and meet domestic consumer demands for fashionable and comfortable footwear[80] Marketing and Sales Strategy - The company’s main business focuses on mid-to-high-end shoe brand operation, product design, production, and sales, supported by a self-owned omni-channel marketing network[30] - The company operates a multi-brand strategy, with self-owned brands including HARSON, KADINA, and ROBERTA, and has established a strong marketing network with 1,588 physical stores across China[40] - The company is actively expanding online retail partnerships with platforms like Vipshop, JD.com, and Tmall[45] - The company aims to strengthen its e-commerce channels and partnerships with platforms like JD.com and Tmall to drive online growth[78] Financial Management - The company has adopted a proactive profit distribution policy, prioritizing cash dividends, but has proposed no profit distribution for the year 2018, reflecting a net loss of approximately 62.38 million RMB[85][86] - The company has approved the use of up to RMB 75 million of idle raised funds and up to RMB 400 million of idle self-owned funds to purchase financial products or structured deposits[108] - The company has structured deposits with various banks, with annualized returns ranging from 4.20% to 4.75%[113] - The company has confirmed that all financial products and structured deposits have been repaid on time[113] Governance and Compliance - The company emphasizes compliance with laws and regulations, ensuring the protection of shareholder and stakeholder rights[115] - The company has established a robust human resources management system to support employee development and rights[115] - The company has implemented a transparent information disclosure policy to enhance investor relations and trust[116] - The company has established a structured governance framework that adheres to relevant laws and regulations, ensuring transparency and accountability[162] Legal Matters - The company is currently involved in a significant lawsuit regarding intellectual property, with a claim amounting to RMB 50,000,000[97] - There are ongoing litigation cases related to contract disputes, with amounts involved including RMB 902,066.18 and RMB 237,972.08[98] - The company has faced challenges in enforcing court judgments, indicating difficulties in collecting owed amounts[98] - The company is actively pursuing legal actions to recover overdue receivables, indicating a focus on improving cash flow[99] Employee and Management Structure - The total number of employees in the parent company is 3,109, while the total number of employees in major subsidiaries is 2,878, resulting in a combined total of 5,987 employees[157] - The company has established a salary system for senior management consisting of a basic annual salary and a performance-based annual salary[158] - The company has a performance evaluation system for senior management that considers annual operational performance and market conditions[158] - The company has a diverse leadership team with extensive experience in the leather and footwear industry[146] Shareholder Information - The largest shareholder, Zhenxing International Co., Ltd., holds 148,359,935 shares, representing 67.46% of the total shares[134] - The company’s total share capital increased by approximately 1.17% due to the restricted stock incentive plan[124] - The total number of ordinary shares increased to 219,906,650 due to the issuance of 2,546,650 shares under the restricted stock incentive plan[131] - The company has implemented a stock incentive plan with restricted shares, with lock-up periods of 12, 24, and 36 months for different shareholders[137]

Financial Performance - Net profit attributable to shareholders decreased by 64.93% to CNY 7,339,232.73 for the first nine months of the year[7]. - Operating revenue for the first nine months decreased by 8.16% to CNY 986,481,535.81 compared to the same period last year[7]. - Basic and diluted earnings per share decreased by 64.58% to CNY 0.034[8]. - The company forecasts a cumulative net profit decrease of 45% to 65% compared to the previous year, primarily due to a decline in export orders and the closure of underperforming stores[16]. - Total operating revenue for Q3 2018 was CNY 261,529,107.04, a decrease of 12.55% compared to CNY 298,972,087.81 in Q3 2017[27]. - Year-to-date revenue for the first nine months of 2018 reached CNY 986,481,535.81, down 8.16% from CNY 1,074,169,418.26 in the same period last year[27]. - Net profit for Q3 2018 was a loss of ¥31.00 million, compared to a loss of ¥22.65 million in Q3 2017, representing a 37% increase in losses year-over-year[29]. - The total comprehensive income for Q3 2018 was a loss of ¥31.02 million, compared to a loss of ¥22.64 million in Q3 2017, indicating a worsening financial position[30]. - The total profit for Q3 2018 was a loss of ¥39.27 million, compared to a loss of ¥28.16 million in Q3 2017, marking a 39.5% increase in losses[29]. Assets and Liabilities - Total assets decreased by 3.11% to CNY 1,393,011,631.86 compared to the end of the previous year[7]. - Total assets as of September 30, 2018, amounted to CNY 1,393,011,631.86, a decrease from CNY 1,437,751,945.99 at the beginning of the year[22]. - Total liabilities were CNY 297,548,213.25, slightly up from CNY 293,930,156.07 at the start of the year[22]. - Current liabilities totaled CNY 297,548,213.25, compared to CNY 289,930,156.07 in the previous year[22]. - Non-current liabilities remained stable at CNY 4,000,000.00, unchanged from the previous period[22]. - The company's total equity decreased to CNY 1,095,463,418.61 from CNY 1,143,821,789.92 at the beginning of the year[22]. - Cash and cash equivalents decreased significantly to CNY 12,308,515.60 from CNY 61,898,935.10 at the beginning of the year[24]. - Accounts receivable decreased to CNY 52,531,266.56 from CNY 143,984,493.44 at the beginning of the year[24]. - Inventory increased slightly to CNY 595,509,466.28 from CNY 593,620,238.20 at the beginning of the year[25]. Cash Flow - Net cash flow from operating activities decreased by 6.06% to CNY 42,770,657.27 for the first nine months[7]. - Cash flow from operating activities for the first nine months of 2018 was ¥42.77 million, down from ¥45.53 million in the same period last year[36]. - Investment activities generated a net cash outflow of -¥44.95 million in the first nine months of 2018, an improvement from -¥115.14 million in the same period last year[36]. - Cash outflow from investment activities totaled $100.78 million, slightly down from $104.62 million year-over-year, resulting in a net cash flow from investment activities of -$58.57 million, compared to -$48.79 million last year[41]. - Cash flow from financing activities showed a net outflow of -$38.43 million, an improvement from -$57.53 million in the previous year[41]. - The ending cash and cash equivalents balance decreased to $11.58 million from $20.73 million year-over-year, indicating a decline in liquidity[41]. Investments and Income - Long-term equity investments increased significantly by 461.44% to ¥14,838,852.25 from ¥2,642,990.47, mainly due to increased external equity investments[12]. - Intangible assets surged by 709.60% to ¥56,572,284.21 from ¥6,987,690.67, attributed to the recognition of the Roberta series trademarks as intangible assets[12]. - Investment income for the first nine months of 2018 was ¥7,953,455.78, a decrease of 47.43% from ¥15,129,126.34, mainly due to losses from the remaining 30% equity stake in a subsidiary[13]. - Other income increased by 872.78% to ¥31,971,904.31 from ¥3,286,659.20, primarily due to an increase in government subsidies received[13]. - Other income for Q3 2018 was ¥142.37 million, significantly higher than ¥64.48 million in Q3 2017, showing a positive trend in other income sources[28]. - Investment income for Q3 2018 was ¥4.41 million, compared to ¥0.38 million in Q3 2017, indicating a substantial increase in investment returns[28]. Operational Efficiency - Total operating costs for Q3 2018 were approximately ¥305.97 million, a decrease of 6.7% compared to ¥328.01 million in Q3 2017[28]. - Research and development expenses for Q3 2018 were ¥3.24 million, down 36.4% from ¥5.09 million in Q3 2017[28]. - Sales expenses for the first nine months of 2018 totaled ¥252.68 million, a decrease of 7.6% from ¥273.54 million in the same period last year[32]. - R&D expenses in Q3 2018 were ¥1.80 million, down 26.0% from ¥2.43 million in Q3 2017[32]. Legal and Compliance - The report has not been audited, indicating potential risks in the financial data presented[7]. - The company is actively responding to a lawsuit seeking ¥50 million in damages related to trademark infringement, which may impact future profits[15]. - There is no mention of market expansion or mergers and acquisitions in the current report[6]. - The company has not disclosed any new product or technology developments in this report[6].

Financial Performance - The company's operating revenue for the first half of 2018 was ¥724,952,428.77, a decrease of 6.48% compared to ¥775,197,330.45 in the same period last year[19]. - The net profit attributable to shareholders for the first half of 2018 was ¥38,001,699.11, down 13.06% from ¥43,709,819.63 in the previous year[19]. - The net cash flow from operating activities decreased by 35.58% to ¥56,774,890.58, compared to ¥88,132,560.08 in the same period last year[19]. - The basic earnings per share for the first half of 2018 was ¥0.17, a decline of 15.00% from ¥0.20 in the same period last year[20]. - The company reported a significant decrease of 74.09% in net profit after deducting non-recurring gains and losses, amounting to ¥5,829,086.27 compared to ¥22,495,263.40 in the previous year[19]. - The company achieved operating revenue of 724.95 million RMB, a decrease of 6.48% compared to the same period last year[35]. - The net profit attributable to the parent company was 38.00 million RMB, down 13.06% year-on-year[35]. - Domestic sales revenue was 669.98 million RMB, a decline of 2.48%, while foreign sales revenue was 54.97 million RMB, down 37.65%[35]. - The company reported a significant decline in external sales revenue, primarily due to clients shifting orders to Southeast Asia and Central America[44]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,354,725,292.00, representing a decrease of 5.77% from ¥1,437,751,945.99 at the end of the previous year[19]. - The net assets attributable to shareholders decreased by 1.51% to ¥1,115,156,577.15 from ¥1,132,271,305.25 at the end of the previous year[19]. - Total assets at the end of the reporting period amounted to 1,354,000,000 RMB, with a decrease of 25.85% in cash and cash equivalents compared to the previous period[39]. - The company's accounts payable decreased by 31.15% to 134,807,547.57 RMB, attributed to reduced procurement[39]. - The total current assets decreased from CNY 1,208,308,379.76 to CNY 1,134,259,387.95, a reduction of approximately 6.1%[81]. - Cash and cash equivalents decreased from CNY 107,175,377.61 to CNY 79,474,986.63, a decline of about 26.0%[81]. - Accounts receivable decreased from CNY 133,500,720.15 to CNY 123,954,013.04, a decrease of approximately 7.5%[81]. - Inventory decreased from CNY 595,902,912.55 to CNY 521,411,122.33, a reduction of about 12.5%[81]. - Total liabilities decreased from CNY 293,930,156.07 to CNY 229,289,116.99, a reduction of about 22%[83]. Cash Flow - The net cash flow from operating activities for the current period is RMB 56,774,890.58, a decrease of 35.5% compared to RMB 88,132,560.08 in the previous period[93]. - Cash inflow from operating activities totaled RMB 849,986,027.85, down 4.0% from RMB 885,558,511.87 in the previous period[93]. - Cash outflow from operating activities was RMB 793,211,137.27, slightly decreased from RMB 797,425,951.79 in the previous period[93]. - The net cash flow from investment activities was negative at RMB -44,147,334.15, an improvement from RMB -127,990,170.80 in the previous period[94]. - Cash inflow from financing activities was RMB 18,081,215.09, compared to RMB 2,466,272.46 in the previous period[94]. - The net cash flow from financing activities was negative at RMB -38,432,384.91, an improvement from RMB -56,484,599.26 in the previous period[94]. Shareholder Information - The company has 21,178 common stock shareholders as of the end of the reporting period[68]. - The largest shareholder, Zhenxing International Co., holds 148,359,935 shares, representing 67.46% of total shares[70]. - The total number of shares held by the top ten shareholders is 158,360,805, which constitutes 71.67% of the total shares[70]. - The report highlights that the largest shareholder, Zhenxing International, is fully owned by Harrison (BVI), which holds 52.74% of the shares[70]. - The report does not indicate any major changes in shareholding percentages among the top shareholders during the reporting period[70]. Corporate Governance - The company appointed Da Hua Accounting Firm as the auditor for the 2018 financial report and internal control report[52]. - There were no significant lawsuits or arbitration matters during the reporting period[53]. - The company has not faced any penalties or corrective actions from regulatory bodies during the reporting period[53]. - The company has established a plan for potential share repurchases if market conditions warrant, ensuring compliance with relevant regulations[49]. - The company has committed to not transferring or entrusting the management of its shares for 36 months from the date of listing, with a lock-up period ending on June 29, 2019[48]. Strategic Initiatives - The company is actively expanding its retail channels to include shopping centers and online platforms to mitigate competition from various sales channels[43]. - The company has plans for market expansion and new product development, although specific details were not disclosed in the earnings call[90]. - The company is focused on maintaining shareholder value through strategic commitments and compliance with market regulations[49]. - The company has established a multi-brand operation model, with its own brands including HARSON, KADINA, and COVER, among others[31]. Risk Management - The company has identified risks related to inventory control, with low turnover rates impacting operations, and plans to implement stricter inventory management measures[43]. - The company plans to enhance credit evaluations and contract management to mitigate risks associated with accounts receivable[43]. Accounting Policies - The financial statements are prepared in accordance with the accounting standards issued by the Ministry of Finance, ensuring a true and complete reflection of the company's financial status[119]. - The company follows specific accounting policies for mergers and acquisitions, treating transactions as a single package when they are interdependent[125]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired[125]. - The company consolidates financial statements based on control, ensuring all subsidiaries are included[128]. Inventory Management - The company uses a weighted average method for inventory valuation and assesses net realizable value to determine inventory impairment provisions[162][163]. - The company conducts a comprehensive inventory check at the end of the period to adjust inventory impairment provisions accordingly[163]. - The company has a perpetual inventory system in place for tracking inventory[164].

Financial Performance - The company's operating revenue for 2017 was approximately CNY 1.50 billion, a decrease of 11.03% compared to CNY 1.68 billion in 2016[20]. - The net profit attributable to shareholders for 2017 was CNY 18.17 million, down 77.42% from CNY 80.49 million in 2016[20]. - The total assets at the end of 2017 were approximately CNY 1.44 billion, reflecting a decrease of 3.42% from CNY 1.49 billion at the end of 2016[21]. - The net assets attributable to shareholders decreased by 3.28% to approximately CNY 1.13 billion at the end of 2017, compared to CNY 1.17 billion at the end of 2016[21]. - Basic earnings per share decreased by 80.24% to CNY 0.084 compared to CNY 0.423 in the previous year[22]. - The company reported a net loss of CNY 22.78 million in Q3, with a significant drop in net profit attributable to shareholders in Q2 and Q3[26]. - The total revenue for the year was CNY 1.49 billion, with quarterly revenues of CNY 412.55 million, CNY 362.65 million, CNY 298.97 million, and CNY 422.70 million respectively[26]. - The company's net profit attributable to shareholders was CNY 18,171,400, a decrease of 77.42% compared to the previous year[45]. - The company's total revenue for the reporting period was CNY 1,494,158,731.93, a decrease of 11.19% compared to the previous year[50]. Cash Flow and Dividends - The cash flow from operating activities for 2017 was CNY 84.73 million, a significant improvement from a cash outflow of CNY 3.90 million in 2016[21]. - The company plans to distribute a cash dividend of CNY 2.6 per 10 shares, totaling CNY 57.18 million for the year[5]. - The net cash flow from operating activities was ¥84,729,548.57, a significant improvement compared to a net cash outflow of ¥3,903,125.57 in the same period last year[60]. - The net cash flow from investing activities was -¥133,310,284.53, an improvement from -¥201,857,294.48 year-on-year, primarily due to the purchase of bank wealth management products[60]. - The net cash flow from financing activities decreased by 118.58% to -¥56,622,026.83, compared to a positive cash flow of ¥304,725,672.01 in the previous year, mainly due to dividend distribution[60]. Sales and Market Trends - The retail market for clothing and footwear grew by 10.2% in 2017, with online retail sales increasing by 28.0%[34]. - The average export price for footwear decreased by 1.86% to USD 4.74, continuing a downward trend for two consecutive years[34]. - Domestic sales revenue reached CNY 1,341,212,500, a decline of 5.09% year-on-year, while export revenue was CNY 152,946,200, down 43.21%[45]. - The footwear industry in China faced challenges with rising production costs and shrinking market share in Europe and the US[34]. - The company operates a multi-brand strategy, with brands like HARSON and KADINA, and has established a strong marketing network with 1,697 physical stores[40]. Operational Challenges and Risks - The company has disclosed potential risks in its operations, which are detailed in the report[7]. - The company faced a significant drop in export orders due to clients shifting to lower-cost regions, impacting the overall business performance[36]. - The company is focusing on enhancing product quality and comfort while controlling costs to meet market demand effectively[87]. - The company faces risks related to inventory control, with a focus on improving inventory turnover and reducing excess stock through promotions and strict assessments[88]. - The company reported a significant decline in export revenue due to clients shifting orders to Southeast Asia and Central America, indicating potential ongoing challenges in the export market[89]. Brand and Product Development - The company operates multiple brands, including HARSON and KADINA, and is in the process of acquiring the ROBERTA brand[31]. - The company aims to enhance its brand strength by expanding operations of brands like PIKOLINOS and exploring shopping center business[44]. - The company is implementing a multi-brand strategy, focusing on brand development for Harsen, Cardina, and Nobida to meet diverse consumer demands[85]. - The company is exploring the expansion of shopping center channels and improving collaboration between offline stores and online platforms[87]. Employee and Management Structure - The total number of employees in the parent company is 3,505, while the total number of employees in major subsidiaries is 3,263, resulting in a combined total of 6,768 employees[156]. - The company has established a comprehensive talent cultivation and incentive system based on national laws and industry characteristics[157]. - The company has a training plan that includes skills training and collaboration with well-known colleges to recruit talented individuals[158]. - The total pre-tax compensation for the board members and senior management during the reporting period amounted to 6.1125 million CNY[146]. - The company is led by a team with extensive experience in the leather and footwear industry, with key members holding various leadership roles in related organizations[148]. Compliance and Governance - The company has maintained compliance with environmental regulations and has not faced any penalties for environmental violations during the reporting period[123]. - The company strictly adhered to information disclosure obligations, ensuring all shareholders had equal access to information[163]. - The independent directors actively participated in decision-making and provided objective and independent opinions on relevant proposals[162]. - The company’s financial statements were audited and deemed to fairly reflect its financial position and operating results for the year ended December 31, 2017[172]. - The company has confirmed that it will adhere to regulatory requirements regarding share transfers by directors and senior management[93].

Financial Performance - Net profit attributable to shareholders decreased by 4.40% to CNY 36,223,168.77 year-on-year[5] - Operating income declined by 3.80% to CNY 396,883,869.53 compared to the same period last year[5] - The company reported a 29.55% decrease in net profit after deducting non-recurring gains and losses, amounting to CNY 13,926,921.63[5] - Total operating revenue for Q1 2018 was CNY 396,883,869.53, a decrease of 3.99% from CNY 412,551,069.75 in the same period last year[22] - Net profit for Q1 2018 was CNY 35,916,079.78, a decrease of 4.15% compared to CNY 37,471,018.17 in Q1 2017[23] - Earnings per share for Q1 2018 were CNY 0.167, down from CNY 0.174 in the previous year[24] Assets and Liabilities - Total assets increased by 0.69% to CNY 1,447,602,921.08 compared to the end of the previous year[5] - The company's total current assets reached CNY 1,223,690,848.03, slightly up from CNY 1,208,308,379.76 at the start of the year, indicating a growth of approximately 1.3%[14] - Total liabilities decreased to CNY 267,461,425.50 from CNY 293,930,156.07, a decline of approximately 9.0%[16] - The company's equity attributable to shareholders increased to CNY 1,168,851,753.62 from CNY 1,132,271,305.25, marking an increase of about 3.2%[16] - Total liabilities as of the end of Q1 2018 were CNY 325,054,798.77, a slight decrease from CNY 327,245,114.36 at the end of the previous period[20] Cash Flow - Net cash flow from operating activities increased by 71.54% to CNY 66,091,625.26 year-on-year[5] - Cash flow from operating activities was CNY 451,824,774.91, down from CNY 481,526,527.84 in the same period last year[29] - Operating cash inflow for the first quarter was CNY 477,465,083.04, a decrease from CNY 502,731,529.08 in the previous period, reflecting a decline of approximately 5%[30] - Net cash outflow from investment activities was CNY -50,437,004.92, compared to CNY -144,960,913.09 in the previous period, indicating an improvement in investment cash flow[30] - Net cash flow from financing activities was CNY 18,081,215.09, contrasting with a net outflow of CNY -1,223,933.24 in the previous period, showing a significant turnaround[31] Shareholder Information - The number of shareholders reached 22,279 at the end of the reporting period[8] - The largest shareholder, Zhenxing International, holds 68.26% of the shares[8] Government Subsidies - The company received government subsidies amounting to CNY 21,761,499.02, a 598.28% increase compared to the previous year[10] Current Assets and Inventory - Cash and cash equivalents increased to CNY 140,722,108.54 from CNY 107,175,377.61, representing a growth of about 31.2%[14] - Accounts receivable decreased to CNY 119,683,500.71 from CNY 133,500,720.15, reflecting a decline of approximately 10.4%[14] - Inventory levels decreased to CNY 555,657,754.23 from CNY 595,902,912.55, showing a reduction of about 6.7%[14] Other Financial Metrics - The weighted average return on equity decreased by 0.04 percentage points to 3.15%[5] - The company reported an investment income of CNY 707,382.57, significantly lower than CNY 13,597,593.45 in the previous year[23] - The company incurred a financial expense of CNY 215,872.57, compared to a financial income of CNY 105,831.64 in the same period last year[23] - Other comprehensive income after tax for Q1 2018 was CNY 9,814.67, compared to a loss of CNY 5,694.86 in the previous year[24]

2017 年第三季度报告 公司代码：603958 公司简称：哈森股份 哈森商贸（中国）股份有限公司 2017 年第三季度报告 1 / 21 | 目录 | | --- | | 一、 | 重要提示 | 3 | | --- | --- | --- | | 二、 | 公司基本情况 | 3 | | 三、 | 重要事项 | 6 | | 四、 | 附录 | 9 | 一、 重要提示 | 未出席董事姓名 | 未出席董事职务 | 未出席原因的说明 | 被委托人姓名 | | --- | --- | --- | --- | | 陈玉兴 | 董事 | 工作原因 | 陈芳德 | 二、 公司基本情况 1.5 主要财务数据 3 / 21 单位：元 币种：人民币 本报告期末 上年度末 本报告期末比上年 度末增减(%) 总资产 1,405,504,482.10 1,488,710,512.30 -5.59 归属于上市公司股 东的净资产 1,135,032,378.47 1,170,623,997.25 -3.04 年初至报告期末 （1-9 月） 上年初至上年报告期末 （1-9 月） 比上年同期增减 (%) 经营活动产生的现 金流量净额 81,9 ...

Financial Performance - The company's operating revenue for the first half of 2017 was ¥775,197,330.45, a decrease of 10.47% compared to ¥865,869,267.89 in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2017 was ¥43,709,819.63, down 18.58% from ¥53,683,220.04 in the previous year[18]. - The net profit after deducting non-recurring gains and losses was ¥22,495,263.40, a significant decline of 54.86% compared to ¥49,829,828.41 in the same period last year[18]. - Basic earnings per share for the first half of 2017 were ¥0.20, a decrease of 37.50% compared to ¥0.32 in the same period last year[19]. - The weighted average return on net assets was 3.67%, a decrease of 4.37 percentage points from 8.04% in the previous year[19]. - The company achieved operating revenue of 775.20 million RMB, a decrease of 10.47% compared to the same period last year[30]. - Net profit attributable to the parent company was 43.71 million RMB, down 18.58% year-on-year[30]. - Domestic sales revenue accounted for 88.63% of total revenue, with domestic sales reaching 687.03 million RMB, a decrease of 3.31%[30]. - Export sales revenue was 88.17 million RMB, a significant decline of 43.24% compared to the previous year[30]. Cash Flow and Assets - The net cash flow from operating activities was ¥108,142,016.97, a substantial improvement from a negative cash flow of ¥4,060,439.80 in the previous year[18]. - Total assets at the end of the reporting period were ¥1,392,114,368.79, a decrease of 6.49% from ¥1,488,710,512.30 at the end of the previous year[18]. - The total assets at the end of the reporting period amounted to ¥1,387,000,000, with cash and cash equivalents decreasing by 46.87% to ¥114,827,685.71, representing 8.25% of total assets[34]. - Other current assets increased by 74.94% to ¥287,474,068.57, accounting for 20.65% of total assets, primarily due to an increase in financial products[34]. - Accounts payable decreased by 33.12% to ¥134,322,495.35, which is 9.65% of total assets, reflecting a reduction in procurement[34]. - Total current assets decreased from RMB 1,257,790,855.58 to RMB 1,157,850,235.59, a decline of approximately 7.93%[80]. - Cash and cash equivalents dropped from RMB 216,145,605.52 to RMB 114,827,685.71, a decrease of about 46.94%[80]. - Accounts receivable decreased from RMB 138,246,634.34 to RMB 111,773,191.62, representing a reduction of approximately 19.14%[80]. - Inventory decreased from RMB 675,478,037.14 to RMB 580,510,954.14, a decline of about 14.05%[80]. - Total liabilities decreased from RMB 299,458,415.30 to RMB 217,099,339.92, a reduction of approximately 27.53%[81]. Investments and Acquisitions - The company completed a significant equity investment by acquiring a 30% stake in Shanghai Tuku, with a registered capital of ¥66 million[37]. - The company has five proprietary brands and is in the process of acquiring the ROBERTA brand[26]. - The company is in the process of transferring 11 trademarks in mainland China, with a total transfer price of RMB 50 million[58]. - The company has completed the transfer of 11 trademarks in mainland China and 2 trademarks in Macau, while 3 international trademarks are still being processed[59]. Risks and Management Strategies - The company faces risks including rising indirect costs due to a reduction in direct store numbers and increasing inventory levels leading to lower turnover rates[39]. - The company plans to monitor store operations in real-time and reduce initial order quantities to manage inventory control risks[39]. - The company’s cash flow management strategies are under review to address the significant decrease in cash reserves and improve liquidity moving forward[96]. Shareholder Information - The company has committed to not transferring or managing its shares for 36 months post-IPO, ensuring stability in shareholding[43]. - The company has committed to not transferring or entrusting the management of its indirectly held shares for 36 months from the date of stock listing, with a minimum selling price not lower than the issuance price after the lock-up period[45]. - The largest shareholder, Zhenxing International Co., Ltd., holds 148,359,935 shares, accounting for 68.26% of total shares[71]. - The company has a total of 54,357,846 unrestricted shares, which is 25.01% of the total shares[64]. Accounting Policies and Compliance - The company’s financial statements are prepared based on the going concern principle, with no significant doubts about its ability to continue operations[116]. - The company’s accounting policies comply with the requirements of enterprise accounting standards, ensuring accurate financial reporting[118]. - The company applies the accounting treatment for business combinations under common control based on the book value of assets and liabilities at the acquisition date[122]. - The company recognizes the share of minority shareholders in the equity, net profit, and comprehensive income separately in the consolidated financial statements[128]. Market and Industry Outlook - The overall shoe market in China is expected to grow, driven by rising disposable income and urbanization, despite increasing competition from Southeast Asian manufacturers[26]. - The company has established a nationwide marketing network, enhancing its brand presence and sales capabilities[27]. - The company operates in the leather products manufacturing industry, focusing on the research, design, wholesale, and retail of shoes, bags, and related products[111].