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]

Financial Performance - The company's operating revenue for 2016 was approximately CNY 1.68 billion, a decrease of 13.21% compared to CNY 1.94 billion in 2015[18]. - The net profit attributable to shareholders for 2016 was CNY 80.49 million, down 32.43% from CNY 119.12 million in 2015[18]. - The basic earnings per share for 2016 was CNY 0.423, a decline of 42.13% from CNY 0.731 in 2015[20]. - The cash flow from operating activities for 2016 was negative CNY 3.90 million, a significant decrease of 109.53% compared to positive CNY 40.95 million in 2015[18]. - The company reported non-recurring gains of RMB 27.67 million for 2016, down from RMB 32.56 million in 2015[24]. - The company achieved operating revenue of CNY 1,682,455,208.46 in 2016, a decrease of 13.21% compared to the previous year[37]. - Net profit for the year was CNY 7,702.71 million, down 34.49% year-on-year, with net profit attributable to shareholders decreasing by 32.43% to CNY 8,049.02 million[35]. - Domestic sales revenue reached CNY 1,413,137,722.05, a decline of 12.97%, while export sales revenue was CNY 269,317,486.41, down 14.45%[35]. - The gross profit margin for the wholesale and retail business was 50.55%, with a slight increase of 2.32 percentage points compared to the previous year[39]. - The company reported a significant decrease in cash flow from operating activities, with a net outflow of CNY 3,903,125.57, down 109.53% year-on-year[37]. Assets and Liabilities - The total assets at the end of 2016 were CNY 1.49 billion, an increase of 21.30% from CNY 1.23 billion at the end of 2015[19]. - The net assets attributable to shareholders increased by 82.65% to CNY 1.17 billion at the end of 2016 from CNY 640.90 million at the end of 2015[19]. - The company's total assets increased from 1,227.26 million RMB to 1,488.71 million RMB, while total liabilities decreased from 568.27 million RMB to 303.46 million RMB, resulting in a reduction of the debt-to-asset ratio from 46.30% to 20.38%[109]. - Total liabilities decreased to CNY 303,458,415.30 from CNY 568,265,852.20, a significant reduction of about 46.4%[153]. - The equity attributable to shareholders increased to CNY 1,170,623,997.25 from CNY 640,902,708.65, marking an increase of approximately 83.1%[154]. Dividends and Share Capital - The company plans to distribute a cash dividend of CNY 2.6 per 10 shares, totaling CNY 56.51 million, based on a total share capital of 21.736 million shares as of December 31, 2016[2]. - The company did not issue bonus shares or increase capital reserves in the 2016 fiscal year, opting instead to retain undistributed profits for the next fiscal year[70]. - The company issued 54.36 million shares of ordinary shares, increasing the total share capital from 163 million to 217.36 million shares[102]. - The company has a registered capital of CNY 217,360,000.00, with a total of 21,736,000 shares issued as of December 31, 2016[181]. Market and Competition - The footwear market in China is expected to grow, driven by rising disposable income and urbanization[26]. - The company faces increasing competition from Southeast Asian countries, which have lower labor costs and established manufacturing infrastructure[27]. - The company began to expand into the children's shoe market in 2016 to diversify its product offerings[34]. Operational Strategy - The company plans to invest more in product research and development, including advanced equipment and design software[65]. - The company intends to strengthen its marketing network across major cities in China and optimize existing store performance[65]. - The company has acknowledged potential risks in its operations, which are detailed in the report[5]. - The company plans to monitor store operations in real-time, reduce initial order quantities, and increase inventory promotion efforts to mitigate inventory control risks[68]. Corporate Governance - The company has established a governance structure that complies with modern corporate governance standards and ensures the independence of its operations[136]. - The financial statements were approved by the board of directors on April 26, 2017, ensuring compliance with regulatory requirements[183]. - The company has maintained strict compliance with information disclosure regulations, ensuring timely and accurate communication with shareholders[138]. Social Responsibility - The company emphasizes its commitment to social responsibility, actively investing in environmental protection, resource conservation, and social welfare initiatives[96]. Employee Management - The total number of employees in the parent company is 4,192, while the total number of employees in major subsidiaries is 3,813, resulting in a combined total of 8,005 employees[131]. - The company has established a competitive incentive mechanism for employee remuneration, which will continue to improve as the company grows[132]. - The company aims to strengthen skills training for existing personnel and improve overall employee quality[133].

Financial Performance - Operating revenue decreased by 12.62% to CNY 1,226,303,369.14 for the year-to-date period compared to the same period last year[6] - Net profit attributable to shareholders decreased by 27.03% to CNY 55,599,384.97 for the year-to-date period compared to the same period last year[6] - Basic and diluted earnings per share decreased by 32.55% to CNY 0.315[7] - The company reported a decrease in the weighted average return on net assets by 6.10 percentage points to 7.12%[7] - The company reported a net cash flow from operating activities of -RMB 74,972,315.56, a significant decline of 1,492.45% compared to -RMB 4,707,973.47 in the same period of 2015[15] - The company reported an operating loss of CNY 23,022,720.14 for Q3 2016, an improvement from a loss of CNY 30,152,711.51 in Q3 2015[35] - The company reported a net profit for Q3 2016 was a loss of approximately ¥30.57 million, compared to a loss of ¥21.99 million in Q3 2015, indicating a worsening performance[40] Assets and Liabilities - Total assets increased by 17.17% to CNY 1,437,942,783.84 compared to the end of the previous year[6] - Current liabilities decreased significantly from ¥562,265,852.20 to ¥272,540,746.86, a reduction of approximately 51.5%[27] - The company reported a total non-current asset value of ¥234,105,301.09, up from ¥209,183,354.85, which is an increase of about 11.9%[27] - Total assets as of September 30, 2016, amounted to CNY 1,520,394,200.11, an increase from CNY 1,260,189,411.90 at the beginning of the year[32] - Total liabilities decreased to CNY 393,755,239.09 from CNY 641,927,008.40, a reduction of about 38.6%[32] - The company's equity increased to CNY 1,126,638,961.02 from CNY 618,262,403.50, representing a growth of approximately 82.5%[32] Cash Flow - Net cash flow from operating activities showed a significant decline of 1,492.45% to -CNY 74,972,315.56 for the year-to-date period compared to the same period last year[6] - Cash inflow from operating activities for the period was CNY 1,501,063,804.01, a decrease of 11.9% compared to CNY 1,703,664,685.73 in the previous year[43] - Cash inflow from financing activities totaled CNY 867,097,404.70, significantly up from CNY 475,074,765.43 in the previous year, marking an increase of 82.3%[45] - The total cash and cash equivalents at the end of the period reached CNY 298,564,956.76, compared to CNY 57,625,832.49 at the end of the previous year[45] - Cash inflow from sales of goods and services was CNY 1,470,245,389.54, down from CNY 1,660,372,473.46 in the previous year[43] Shareholder Information - The total number of shareholders reached 33,732 by the end of the reporting period[11] - The largest shareholder, Zhenxing International Co., Ltd., holds 68.26% of the shares, totaling 148,359,935 shares[11] - The company has committed to not transferring or managing its shares for 36 months from the date of its stock listing, with a lock-up period extending to June 29, 2019[19] - Shareholders holding more than 5% of shares must announce any reduction in holdings 3 trading days in advance[20] - The company will not repurchase shares held by major shareholders during the lock-up period, ensuring stability in shareholding[19] Government Subsidies and Other Income - The company received government subsidies amounting to CNY 20,990,461.28 for the year-to-date period, which is closely related to its normal business operations[8] - The company reported a 36.63% decrease in non-operating income to RMB 21,192,691.45 from RMB 33,442,030.90, primarily due to reduced government subsidies[15] Inventory and Receivables - Accounts receivable decreased by 33.08% to RMB 101,349,748.66 from RMB 151,445,337.34, attributed to seasonal sales fluctuations and reduced revenue[14] - Inventory increased to ¥740,854,435.70 from ¥700,287,123.15, reflecting a rise of approximately 5.8%[26] - Inventory levels rose to CNY 764,555,923.07 from CNY 684,766,213.65, indicating an increase of about 11.7%[31] Financing Activities - The company received net cash flow from financing activities of RMB 315,612,131.04, a substantial increase of 818.81% compared to -RMB 43,907,713.29 in the previous year[15] - Short-term borrowings decreased by 95.73% to RMB 7,790,682.85 from RMB 182,624,589.16, as the company repaid bank loans[14] Compliance and Commitments - The company has committed to reducing and standardizing related party transactions to ensure fair pricing and compliance with normal business practices[22] - The company is focused on maintaining compliance with tax obligations and has made commitments to cover any potential liabilities arising from tax-related issues[22] - The company has established a non-competition commitment for major shareholders to avoid engaging in similar business activities[21]

Financial Performance - The company's operating revenue for the first half of 2016 was ¥865,869,267.89, a decrease of 17.08% compared to ¥1,044,249,654.15 in the same period last year[18]. - The net profit attributable to shareholders for the first half of 2016 was ¥53,683,220.04, down 37.44% from ¥85,808,949.19 in the previous year[18]. - The net cash flow from operating activities was -¥4,060,439.80, compared to ¥2,157,569.52 in the same period last year, indicating a significant decline[18]. - Basic earnings per share for the first half of 2016 were ¥0.32, a decrease of 38.70% from ¥0.52 in the same period last year[19]. - The weighted average return on equity decreased by 6.83 percentage points to 8.04% from 14.87% in the previous year[19]. - The company achieved operating revenue of CNY 865.87 million in the first half of 2016, a year-on-year decline of 17.08%[25]. - Net profit attributable to the parent company was CNY 53.68 million, down 37.44% year-on-year, while net profit excluding non-recurring gains and losses was CNY 49.83 million, a decrease of 24.35%[25]. - The company reported a total profit of CNY 58,124,822.20, down 47.3% from CNY 110,343,247.70 in the same period last year[84]. - Operating profit for the first half of 2016 was CNY 53,435,969.36, representing a decline of 36.2% from CNY 83,801,996.94 in the previous year[84]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,677,696,328.23, an increase of 36.70% from ¥1,227,259,809.87 at the end of the previous year[18]. - The total amount of raised funds in 2016 was CNY 44,921.57 million, which has not yet been utilized as of the report date[41]. - The company has provided guarantees totaling CNY 24,015 million, which accounts for 20.72% of the company's net assets[49]. - The company has a subsidiary, Shenzhen Zhenxing Footwear, with total assets of CNY 13,213.86 million and a net profit of CNY 151.95 million[42]. - The company has incurred a net loss of CNY 181.94 million from its subsidiary Fuzhou Zhenzhan Footwear[42]. - Total assets increased to CNY 1,677,696,328.23, up from CNY 1,227,259,809.87, representing a growth of approximately 36.6% year-over-year[78]. - Total liabilities decreased to CNY 518,588,573.50 from CNY 568,265,852.20, a reduction of approximately 8.7%[79]. - The company’s total assets at the end of the reporting period were CNY 1,159,107,754.73, reflecting a robust asset base[99]. Cash Flow - The net cash flow from operating activities was -4,060,439.80 RMB, a decrease compared to 2,157,569.52 RMB in the previous period[92]. - Total cash inflow from financing activities was 775,308,987.21 RMB, significantly higher than 342,611,592.86 RMB in the prior period[93]. - The net cash flow from financing activities increased to 527,437,445.28 RMB from 20,275,472.42 RMB year-over-year[93]. - The cash flow from operating activities showed a negative net amount of -15,539,001.36 RMB, contrasting with a positive 12,325,223.56 RMB in the prior period[94]. - The total cash inflow from operating activities was 1,024,668,014.49 RMB, down from 1,220,562,499.24 RMB in the previous period[92]. Shareholder Information - The company issued 5.436 million new shares in June 2016, increasing total shares from 16.3 million to 21.736 million[63]. - As of the end of the reporting period, the total number of shareholders was 51,190[64]. - The largest shareholder, Zhenxing International Co., Ltd., held 148,359,935 shares, representing 68.26% of total shares[66]. - The company’s public offering resulted in a total share capital of 217,360,000 after the issuance[63]. - The total number of shares with limited sale conditions was 54,350,882, which is 25.01% of total shares[62]. - The company has a total of 148,359,935 shares held by Zhenxing International, which will be unlocked for trading in June 2019[69]. - The company’s strategic investor, Harrison (BVI), holds 52.74% of the shares, indicating a significant control over the company[68]. Governance and Compliance - The company has established a complete governance structure, ensuring compliance with relevant laws and regulations, and improving management efficiency[58]. - The company has not reported any major litigation or arbitration issues during the reporting period[45]. - The company has not engaged in any asset transactions or mergers during the reporting period[46]. - The company has committed to reducing and regulating related party transactions, ensuring that transaction prices are fair and in line with normal commercial practices[55]. - The company has no significant changes in accounting policies or estimates during the reporting period[59]. Accounting Policies - The company adheres to the enterprise accounting standards, ensuring that financial statements accurately reflect its financial position, operating results, changes in shareholders' equity, and cash flows[113]. - The company's accounting currency is Renminbi (RMB)[116]. - The company includes all subsidiaries under its control in the consolidated financial statements, ensuring consistency in accounting policies and periods[123]. - The company recognizes goodwill when the merger cost exceeds the fair value of identifiable net assets acquired[121]. - The company assesses impairment indicators for construction projects at each reporting period and estimates recoverable amounts based on fair value less disposal costs or the present value of expected future cash flows[181]. Research and Development - The company invested CNY 13.09 million in research and development, a decrease of 9.70% from the previous year[27]. - The company has five proprietary brands and is in the process of acquiring trademark rights for additional brands, indicating ongoing market expansion efforts[106]. Market Presence - The company operates primarily through direct sales and e-commerce platforms, enhancing its market reach and customer engagement[106]. - The company has been recognized multiple times for quality and service excellence, which strengthens its brand reputation in the market[107]. - The company’s stock was listed on the Shanghai Stock Exchange on June 29, 2016, marking a significant milestone in its growth strategy[107].