Financial Performance - The company's operating revenue for Q1 2014 was ¥1,841,419,865, a decrease of 17.2% compared to ¥2,224,050,910 in the same period last year[4] - Net profit attributable to shareholders was ¥106,543,343, down 15.3% from ¥125,782,818 year-over-year[4] - The net profit after deducting non-recurring gains and losses was ¥86,037,445, representing a significant decline of 32.46% compared to ¥127,389,832 in the previous year[4] - The net cash flow from operating activities was ¥588,936,254, a decrease of 18.68% from ¥724,261,045 in the same period last year[4] - The estimated net profit attributable to shareholders for the first half of 2014 is expected to range from 177.98 million to 222.48 million yuan, representing a year-on-year change of -30% to 0%[17] Assets and Liabilities - Total assets at the end of the reporting period were ¥6,846,988,616, an increase of 2.08% from ¥6,707,304,038 at the end of the previous year[6] - The net assets attributable to shareholders increased by 4.67% to ¥3,950,294,622 from ¥3,773,971,279 at the end of the previous year[6] - Cash and cash equivalents increased by 33% compared to the beginning of the year, indicating strong operating cash flow during the reporting period[12] - Short-term borrowings increased by 120% compared to the beginning of the year, attributed to new bank loans for the autumn and winter production peak[12] - The company repaid ¥800 million of short-term financing bonds during the reporting period, leading to a 100% decrease in other current liabilities[12] Expenses and Income - Financial expenses increased by 36% compared to the same period last year, mainly due to rising market funding costs and an increase in interest-bearing liabilities[13] - Asset impairment losses doubled compared to the same period last year, primarily due to inventory write-downs and impairment provisions for long-term deferred expenses[13] - Investment income decreased by 100% year-on-year, as the equity in Chang'an Fund Management Co., Ltd. is now classified as held for sale and no longer accounted for using the equity method[13] - Non-operating income increased by 437% compared to the same period last year, mainly due to an increase in government subsidies and tax refunds received[13] - Non-operating expenses decreased by 68% year-on-year, primarily due to lower store closure losses compared to the previous year[13] - Income tax expenses decreased by 32% compared to the same period last year, mainly due to a decline in total profit and a decrease in the effective tax rate of the consolidated entities[13] Strategic Initiatives - The company is actively promoting an internet transformation, which includes product and supply chain innovation and upgrading O2O experience stores[17] - The company anticipates facing significant market pressure in the first half of 2014, leading to a certain degree of decline in financial performance[17] Shareholder Information - The number of shareholders at the end of the reporting period was 13,680, with the largest shareholder holding 70.59% of the shares[8]

Financial Performance - The company's operating revenue for 2013 was CNY 7,889,618,084, a decrease of 17.03% compared to CNY 9,509,550,614 in 2012[25] - The net profit attributable to shareholders for 2013 was CNY 405,476,364, down 52.27% from CNY 849,582,393 in 2012[25] - The net cash flow from operating activities decreased by 65.55% to CNY 984,200,067 in 2013 from CNY 2,856,480,865 in 2012[25] - Basic earnings per share for 2013 were CNY 0.4, a decline of 52.94% from CNY 0.85 in 2012[25] - The total assets at the end of 2013 were CNY 6,707,304,038, a decrease of 4.27% from CNY 7,006,340,154 at the end of 2012[25] - The net assets attributable to shareholders decreased by 8.66% to CNY 3,773,971,279 at the end of 2013 from CNY 4,131,881,524 at the end of 2012[25] - The weighted average return on equity decreased to 11% in 2013 from 21% in 2012, a drop of 10 percentage points[25] - In 2013, the company achieved operating revenue of 788,961.81 million yuan, a decrease of 17% compared to the previous year[32] - The net profit attributable to shareholders was 40,547.64 million yuan, down 52% year-on-year[32] Cash Flow and Investments - The net cash flow from operating activities decreased by 65.55% to ¥984.2 million compared to the previous year, primarily due to a decline in sales revenue and cash received from sales[54] - The net cash flow from investment activities decreased by 54.57% to -¥175.5 million, mainly due to reduced expenditures on acquiring assets such as stores[55] - The net cash flow from financing activities decreased by 87.6% to -¥354.5 million, largely due to a significant reduction in interest-bearing debt repayments[55] - Total operating cash inflow decreased by 21.27% to ¥9.56 billion, while total operating cash outflow decreased by 7.65% to ¥8.58 billion[54] - The company's cash and cash equivalents increased by ¥454.2 million, contrasting with a decrease of ¥389.0 million in the previous year[54] Inventory and Sales - The company’s inventory at the end of 2013 was approximately 1.58 billion yuan, a decrease of about 430 million yuan from the beginning of the year[33] - The sales volume decreased by 22.76% to 83,835,479 units, while production volume decreased by 14.71% to 76,590,346 units[38] - The gross profit margin for the direct sales business improved by 4 percentage points to 51%, while the franchise gross profit margin decreased by 4 percentage points to 38%[36] - The company’s main business income from direct sales was 384,588.86 million yuan, down 16.65% year-on-year, while franchise income was 398,200.12 million yuan, down 17.78%[36] Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 2.80 per 10 shares based on the total share capital as of March 31, 2014[6] - In 2013, the cash dividend represented 69.81% of the net profit attributable to shareholders, which was 405,476,364 yuan[96] - The company has maintained a stable cash dividend policy, with a payout ratio of approximately 70% of annual earnings[90] - The company distributed CNY 844.2 million in cash dividends for the 2011 fiscal year, and CNY 753.75 million for the 2012 fiscal year[93] - The company's retained earnings at the end of the reporting period were 2,222,570,889 yuan, after paying out 753,750,000 yuan in dividends during the year[98] Market Strategy and Operations - The company is exploring e-commerce sales but is still in the early stages of development[14] - The company launched new concept experience stores in cities like Chengdu and Xiamen, enhancing consumer shopping experience and brand value[33] - The company targets the young consumer segment with a clear market positioning for its brands, adapting to seasonal demand fluctuations through strategic inventory management[75] - The company has established a comprehensive support system for franchisees, enhancing store operations and aligning with international brand standards[68] - The company is focusing on enhancing its store experience and operational efficiency to support franchise market management[83] Corporate Governance and Compliance - The company has established a robust investor relations framework, ensuring timely and accurate information disclosure to protect investor rights[100] - The company emphasizes quality management and has obtained ISO9001 certification to ensure product quality[107] - The company has implemented a customer management system to enhance communication and address consumer needs effectively[108] - The company has made modifications to its articles of association during the reporting period to enhance corporate governance[177] - The company maintains a strong independence in operations, with no interference from controlling shareholders in decision-making[177] Social Responsibility and Community Engagement - The company actively engages in environmental responsibility, promoting energy-saving practices and reducing waste[110] - The company has a dedicated fund to support employees in need, reflecting its commitment to employee welfare[106] - The company donated 2 million RMB to the Sichuan Ya'an earthquake disaster area through the China Population Welfare Foundation in June 2013[112] - In October 2013, the company donated 1.23 million RMB to the Shanghai Huifu Public Welfare Foundation for the "River Children" project[113] - The company participated in a charity donation initiated by the government of Kangqiao Town, Pudong New District, Shanghai, contributing 500,000 RMB in December 2013[114] Management and Employee Relations - The company has a structured remuneration system that aligns with risk, responsibility, and benefits[164] - The total remuneration for directors, supervisors, and senior management during the reporting period amounted to CNY 1,293.39 million[167] - The highest individual remuneration was received by the director and president, Zhou Chengjian, totaling CNY 70.87 million[167] - The company has implemented a labor contract system in compliance with national labor laws, ensuring social security and medical insurance for employees[173] - As of December 31, 2013, the company had a total of 1,371 employees, with 40.34% holding a bachelor's degree[173] Related Party Transactions - The total amount of related party transactions for the period is 39,985,000 RMB, with significant transactions including purchases of clothing and rental agreements[129] - All related party transactions were conducted at market prices, with no significant discrepancies noted[129] - The company has no non-operating related party debts, indicating a focus on operational transactions[130] - The company maintains a commitment to avoid competition with its controlling shareholders, ensuring alignment of interests[135] Risk Management - The company faces significant risks from macroeconomic fluctuations and intense competition in the leisure apparel industry[13][14] - The company did not identify any risks during the supervisory activities of the supervisory board in the reporting period[193] - The company has implemented an insider information management system, with no reported insider trading incidents during the reporting period[181]