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].

Financial Performance - Operating revenue declined by 11.37% to CNY 412,551,069.75 year-on-year[5] - Net profit attributable to shareholders increased by 13.41% to CNY 37,891,315.20 compared to the same period last year[5] - Total operating revenue for Q1 2017 was CNY 412,551,069.75, a decrease of 11.36% from CNY 465,456,495.25 in the same period last year[24] - Net profit for Q1 2017 reached CNY 37,471,018.17, an increase of 14.67% compared to CNY 32,750,136.47 in Q1 2016[25] - The total operating profit for Q1 2017 was -6,472,635.22 RMB, compared to 21,794,082.54 RMB in the same period last year, indicating a significant decline[28] - The net profit for Q1 2017 was -4,841,959.29 RMB, a decrease from 16,338,859.65 RMB year-over-year[28] - The company reported a significant decrease in sales revenue from 603,386,677.32 RMB to 481,526,527.84 RMB, a decline of about 20.2%[30] Cash Flow - The net cash flow from operating activities was CNY 38,527,439.41, a significant recovery from a negative CNY 54,003,666.17 in the previous year[5] - The net cash flow from operating activities for Q1 2017 was RMB 38,527,439.41, a significant improvement compared to a negative RMB 54,003,666.17 in Q1 2016[13] - Cash inflow from operating activities was 502,731,529.08 RMB, down from 609,985,396.84 RMB in the previous year, reflecting a decrease of approximately 17.6%[31] - The net cash flow from investing activities was -144,960,913.09 RMB, compared to -21,206,209.64 RMB in the same period last year, showing a substantial increase in cash used for investments[31] - The net cash flow from financing activities decreased by 101.14% to -RMB 1,223,933.24 in Q1 2017, compared to RMB 106,964,421.33 in Q1 2016, mainly due to a reduction in borrowings[13] Assets and Liabilities - Total assets decreased by 3.64% to CNY 1,434,520,420.31 compared to the end of the previous year[5] - Cash and cash equivalents decreased by 49.84% to CNY 108,421,778.00 due to an increase in financial products[11] - Accounts receivable decreased by 34.22% to CNY 90,938,893.70, attributed to seasonal sales decline[11] - Total assets as of March 31, 2017, were RMB 1,434,520,420.31, down from RMB 1,488,710,512.30 at the beginning of the year[19] - Total liabilities decreased to RMB 211,066,235.78 in Q1 2017 from RMB 303,458,415.30 at the beginning of the year[19] - Total liabilities for Q1 2017 amounted to CNY 370,892,483.88, down from CNY 395,670,273.07 in the same period last year[23] Shareholder Information - The number of shareholders reached 25,949, with the largest shareholder holding 68.26% of the shares[9] - Shareholders' equity totaled CNY 1,119,544,253.65 in Q1 2017, slightly decreasing from CNY 1,124,386,212.94 year-over-year[23] Operational Efficiency - The company plans to continue focusing on improving operational efficiency and exploring new market opportunities[11] - The company reduced its prepayments by 29.61% to CNY 23,622,677.20, also due to seasonal factors[11] - The company’s sales expenses for Q1 2017 were CNY 151,715,582.84, a decrease from CNY 159,283,569.09 in Q1 2016[25] - The company’s management expenses increased to CNY 24,814,826.96 in Q1 2017 from CNY 20,451,846.56 in the previous year[25] Investment Activities - Investment income for Q1 2017 was RMB 13,597,593.45, resulting from the disposal of 70% equity in a subsidiary[13] - Other income increased by 76.80% to RMB 3,228,468.18 in Q1 2017, mainly due to an increase in government subsidies received[13]