Financial Performance - The company's operating revenue for the first half of 2021 was ¥185,428,070.73, representing a 73.34% increase compared to ¥106,975,450.93 in the same period last year[22]. - The net profit attributable to shareholders of the listed company was ¥2,626,850.67, a significant turnaround from a loss of ¥17,479,881.97 in the previous year, marking a 115.03% improvement[22]. - The net profit after deducting non-recurring gains and losses was ¥206,924.52, compared to a loss of ¥68,000,128.46 in the same period last year, reflecting a 100.30% increase[22]. - The basic earnings per share increased to ¥0.0070 from a loss of ¥0.0463, showing a 115.12% improvement[22]. - The company's operating revenue for the reporting period reached ¥185,428,070.73, representing a 73.34% increase compared to ¥106,975,450.93 in the same period last year, primarily due to the easing of pandemic impacts[45]. - The gross profit margin improved, with operating costs increasing by only 10.17% to ¥136,445,596.94, compared to the previous year's ¥123,854,938.56[46]. - Research and development expenses rose by 32.08% to ¥5,320,083.34, up from ¥4,028,053.01, reflecting increased investment in innovation as pandemic impacts lessened[46]. - The company reported a substantial increase in other business income, which surged by 234.99% to ¥108,607,078.99, compared to ¥32,420,941.48 last year[49]. - The company reported a net loss of CNY 90,969,862.48, compared to a loss of CNY 93,596,713.15 at the end of 2020, indicating an improvement in loss by approximately 2.79%[143]. - The company reported a total comprehensive income of ¥1,051,664.30 for the first half of 2021, a significant improvement from a loss of ¥18,823,767.66 in the same period of 2020[151]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,032,659,344.40, a decrease of 3.54% from ¥2,107,263,121.04 at the end of the previous year[22]. - The total liabilities decreased to CNY 502,797,316.18 from CNY 578,452,757.12, a reduction of approximately 13.06%[142]. - The company's total assets at the end of the reporting period amounted to 1,890,589,027.28 RMB, indicating growth from the previous year[172]. - Current assets totaled CNY 873,417,457.69, down from CNY 896,941,414.45 at the end of 2020, indicating a decrease of about 2.63%[141]. - Cash and cash equivalents decreased to CNY 243,580,613.31 from CNY 331,884,133.13, reflecting a decline of approximately 26.56%[140]. - Total inventory increased to RMB 445,652,588.90, representing 21.92% of total assets, up from 18.86% the previous year[67]. - The total equity attributable to shareholders increased slightly to CNY 1,550,417,217.13 from CNY 1,548,183,791.64, showing a marginal increase of about 0.08%[143]. Cash Flow - The net cash flow from operating activities was negative at -¥44,457,457.37, a decline of 4,224.05% compared to ¥1,078,006.11 in the same period last year[22]. - The company's cash flow from operating activities showed a significant decline, with a net outflow of ¥44,457,457.37 compared to a positive cash flow of ¥1,078,006.11 in the previous year, indicating increased cash expenditures[46]. - The total cash inflow from operating activities was CNY 167,348,023.69, compared to CNY 180,885,336.10 in the same period last year[158]. - The company incurred a cash outflow of CNY 211,805,481.06 from operating activities, which was higher than CNY 179,807,329.99 in the previous year[158]. - The total cash and cash equivalents at the end of the period were 176,289,692.87 CNY, down from 225,251,210.10 CNY at the end of the previous period[162]. Business Operations - The company operates in the fur fashion industry, focusing on the complete business process from raw material processing to fur apparel sales, establishing a comprehensive service platform for the industry[30]. - The company has built the China Suining International Fur Trading Center with a total construction area of 130,000 square meters, providing a trading platform for fur practitioners[30]. - The company has developed the Huasi Fur Town, which includes the Huasi International Fur City, featuring hundreds of factory-direct stores for mink clothing, leather goods, cashmere, and accessories[30]. - The company employs an order-driven production model, with a focus on research and development, tanning processing, dyeing treatment, and garment production[34]. - The company has a stable procurement channel for raw materials, ensuring a steady supply of fur through both domestic and international markets[33]. - The company operates in the fur industry, which includes a long supply chain from feed processing to fur apparel design and marketing, targeting the domestic and international mid-to-high-end markets[36]. - The company has a competitive advantage through its integrated business model, which includes fur trading, deep processing, design, production, and sales channels[37]. Market and Sales - Domestic sales reached ¥66,417,922.82, representing a 26.53% increase year-on-year, while export sales were ¥10,403,068.92, down 58.00% compared to the previous year[53]. - The total revenue from direct sales was ¥10,954,644.63, with a gross margin of 54.75%, reflecting a significant year-on-year increase of 162.08%[56]. - The company has 73 distributors, and the sales revenue from distributors accounted for over 30% of total sales[59]. - Online sales generated revenue of ¥353,899.97, with a gross margin of 42.69%, showing a year-on-year decrease of 17.02%[56]. - The company opened 1 new direct store and closed 2 stores due to unsatisfactory sales performance, resulting in a total of 12 direct stores[54]. Risks and Challenges - The company has outlined potential risks and countermeasures in its report, emphasizing the importance of investor awareness regarding investment risks[6]. - The company faces risks from the ongoing COVID-19 pandemic, macroeconomic uncertainties, exchange rate fluctuations, and raw material price volatility[79]. Environmental and Social Responsibility - The company has established two wastewater treatment systems and implemented rainwater and sewage diversion[87]. - The comprehensive wastewater treatment facility has a processing capacity of 1,600 m³/d, utilizing a multi-step treatment process[88]. - All monitored pollutant indicators met the discharge standards during quarterly inspections by environmental authorities[93]. - The company has a pollution prevention and emergency response plan in place for environmental incidents[91]. - The company adheres to a "safety first, environmental protection priority" principle in its operations[95]. - The company has not faced any administrative penalties related to environmental issues during the reporting period[92]. Shareholder Information - The total number of shares after the recent changes is 385,560,800, with 23.48% being limited shares and 76.52% being unrestricted shares[122]. - The company repurchased a total of 8,250,100 shares, accounting for 2.14% of the total share capital, with a total expenditure of approximately RMB 50 million[124]. - The largest shareholder, He Guoying, holds 31.31% of the shares, totaling 120,720,300 shares[126]. - The top 10 unrestricted ordinary shareholders include He Guoying and Shanghai Textile Investment Management Co., holding 30,180,093 and 6,581,354 shares respectively[128]. - The total number of shares held by the top 10 shareholders reflects a significant concentration of ownership, with the largest shareholder holding over 30%[126]. Governance and Compliance - The financial statements were approved by the board of directors on August 17, 2021, indicating a commitment to transparency and governance[184]. - The company has assessed its ability to continue as a going concern for the next 12 months and found no significant doubts regarding its operational viability[189]. - The company follows specific accounting policies and estimates based on its operational characteristics, particularly in inventory valuation, expected credit loss provisions for receivables, and depreciation of fixed assets[190]. - The company did not engage in any related party transactions during the reporting period[106].

Revenue and Profitability - Revenue for Q1 2021 reached ¥69,845,561.75, an increase of 41.20% compared to ¥49,466,213.40 in the same period last year[9] - Net profit attributable to shareholders was a loss of ¥4,119,214.94, an improvement of 44.20% from a loss of ¥7,381,713.75 year-over-year[9] - Operating revenue grew by 41.20% to 69,845,561.75 from 49,466,213.40, attributed to higher sales[16] - Net profit attributable to the parent company improved by 44.20%, reaching -4,119,214.94 compared to -7,381,713.75, driven by increased revenue and reduced financial expenses[16] - Net loss for Q1 2021 was CNY 4,982,335.15, compared to a net loss of CNY 8,094,951.92 in the same period last year, showing an improvement[41] - The total comprehensive loss for Q1 2021 was CNY 3,195,747.52, an improvement from CNY 7,832,895.38 in the same period last year[42] Cash Flow and Financial Activities - Net cash flow from operating activities improved to -¥5,160,632.43, a 57.67% increase from -¥12,190,698.05 in the previous year[9] - Cash flow from financing activities turned negative at -11,305,106.26 compared to a positive 15,311,170.41 in the previous period, due to prior borrowings from a major shareholder[16] - The net cash flow from financing activities was -11,305,106.26 yuan, compared to 15,311,170.41 yuan in the previous period[50] - Operating cash inflow totaled 89,341,293.19 yuan, an increase from 80,321,428.48 yuan year-over-year[49] - The company reported a decrease in cash flow from operating activities, with cash outflow totaling 53,011,347.94 yuan compared to 68,185,829.46 yuan previously[51] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,096,621,350.21, a decrease of 0.51% from ¥2,107,263,121.04 at the end of the previous year[9] - Total liabilities decreased to ¥571,006,733.81 from ¥578,452,757.12, a decline of about 1.3%[33] - The company's total liabilities amounted to CNY 621,756,085.12, with total equity at CNY 1,878,928,908.80[37] - The company's equity attributable to shareholders decreased to ¥1,546,006,812.33 from ¥1,548,183,791.64, a decrease of approximately 0.15%[34] - Current assets totaled ¥898,917,392.69, slightly increasing from ¥896,941,414.45, representing a growth of about 0.22%[31] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 38,577[12] - The largest shareholder, He Guoying, holds 31.31% of the shares, totaling 120,720,374 shares[12] - There were no significant changes in the shareholding structure among the top 10 shareholders during the reporting period[13] Expenses and Investments - Operating costs increased by 51.67% to 54,297,985.29 from 35,800,144.08, reflecting the rise in revenue[16] - Research and development expenses for Q1 2021 were CNY 1,076,896.89, compared to CNY 854,699.13 in the previous period, indicating increased investment in innovation[40] - Financial expenses decreased by 1475.55% to -1,901,535.02 from 138,238.08, resulting from increased interest income and reduced interest expenses[16] Other Income and Comprehensive Income - Other income rose by 179.16% to 1,981,088.80 from 709,651.80, mainly due to increased government subsidies[16] - Other comprehensive income after tax for Q1 2021 was CNY 1,786,587.63, compared to CNY 262,056.54 in the previous period[41] Inventory and Receivables - Accounts receivable increased by 1555.33% to 8,812,656.95 from 532,380 due to an increase in bank acceptance bills received[16] - Inventory increased to ¥401,279,057.20 from ¥397,355,973.18, showing a growth of approximately 1.5%[31] - Accounts receivable decreased to ¥49,164,077.12 from ¥52,699,458.12, a reduction of about 6.4%[31] Financial Reporting and Standards - The first quarter report was not audited[56] - The company did not require adjustments to the beginning balance sheet items under the new leasing standards implemented from January 1, 2021[55]

Financial Performance - The company's operating revenue for 2020 was ¥338,116,650.33, a decrease of 29.14% compared to ¥477,180,890.26 in 2019[19] - The net profit attributable to shareholders for 2020 was -¥346,050,651.71, representing a decline of 2,148.88% from a profit of ¥16,889,774.02 in 2019[19] - The total assets at the end of 2020 were ¥2,107,263,121.04, down 16.95% from ¥2,537,326,536.18 at the end of 2019[19] - The net assets attributable to shareholders decreased by 18.24% to ¥1,548,183,791.64 from ¥1,893,534,099.42 in 2019[19] - The basic earnings per share for 2020 was -¥0.9172, a significant drop from ¥0.0445 in 2019[19] - The company reported a significant increase in the net loss from non-recurring gains and losses, with a net profit of -¥389,218,274.57 compared to ¥9,438,931.67 in 2019[19] - The weighted average return on net assets was -20.11% in 2020, down from 0.89% in 2019[19] - The company reported a net loss of 346,050,651.7 yuan in 2020, leading to no cash dividend distribution[119] Cash Flow and Investments - The net cash flow from operating activities improved to ¥103,497,808.46, a 166.02% increase from -¥156,755,682.89 in 2019[19] - The net cash flow from financing activities decreased by 580.38% to -¥185,325,382.81, attributed to an increase in net bank loan repayments[78] - The company reported a net cash flow from investing activities of ¥74,671,799.43, a decrease of 35.99% compared to the previous year, mainly due to the recovery of inter-company loans in the prior year[78] - The company has established a wholly-owned subsidiary, Wase (Hangzhou) Network Media Co., Ltd., with a registered capital of RMB 5 million to support its business upgrade and industrial layout adjustment[131] Sales and Market Performance - Domestic sales amounted to ¥176,901,758.93, down 24.83% from the previous year, while export sales decreased by 34.90% to ¥60,770,054.00[54] - The company faced a decline in sales due to the impact of COVID-19, as the overseas consumer market had not fully recovered[35] - The OBM segment generated ¥163,666,685.86, accounting for 48.41% of total revenue, while ODM and OEM segments saw declines of 46.64% and 61.33% respectively[54] - The sales volume of fur clothing decreased by 35.79% to 49,038 units, while production volume fell by 34.29% to 47,504 units[58] Operational Strategy - The company operates under an integrated business model, covering the entire industry chain from raw material procurement to design, production, and marketing, enhancing its competitive advantage[39] - The production model is driven by orders, implementing a make-to-order strategy to optimize production efficiency[33] - The company plans to continue managing inventory levels of fur products and clothing in response to reduced demand in the global market[49] - The company has established a five-level classification standard for raw materials, ensuring quality and optimizing resource allocation[41] Research and Development - The company has a strong R&D capability, being recognized as a national high-tech enterprise with a dedicated fur technology research center[32] - The company implemented six R&D projects in 2020, focusing on various innovative techniques in fur garment production, and currently holds 86 patents[75] - The company’s R&D center is recognized as a provincial engineering technology research center, leading in fur research and design within the industry[44] - The company has developed advanced technologies in fur processing, including waste treatment and resource recycling, which are at the forefront of the industry[44] Environmental Responsibility - The company has established two wastewater treatment systems and implemented rainwater and sewage diversion, ensuring compliance with pollution discharge standards[153][155] - The company has a comprehensive environmental monitoring plan in place, combining automatic and manual monitoring of pollutant emissions[156] - Environmental monitoring results are compliant with discharge standards, with quarterly inspections by environmental authorities showing all pollutant indicators meet standards[157] - The company has implemented 100% harmless treatment of waste generated during production by qualified third parties[157] Corporate Governance - The company adheres to relevant laws and regulations to improve its corporate governance structure[198] - The company ensures equal treatment of all shareholders, particularly minority shareholders, during shareholder meetings[198] - The decision-making process for profit distribution requires approval from the board of directors and the supervisory board, ensuring transparency and accountability[115] - The company has established an internal audit system, with a dedicated department and appointed head to ensure effective internal control[200] Shareholder Information - The total number of shares is 385,560,800, with 23.48% being limited sale condition shares and 76.52% being unrestricted shares[162] - The largest shareholder, He Guo Ying, holds 31.31% of the shares, with no changes in shareholding during the reporting period[166] - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[124] - The company has not made any changes to the scope of consolidated financial statements compared to the previous year[131] Leadership and Management - The current chairman of the board, He Guoying, has been in position since November 8, 2018, and has extensive experience in management and leadership roles[182] - The company has a diverse board with independent directors who have significant experience in finance and management, including Ding Jianchen and Xie Bei[184] - The leadership team has a mix of academic qualifications and practical experience, contributing to the company's strategic direction and operational efficiency[187] - The company conducts quarterly performance evaluations for senior and middle management, linking results to year-end bonuses and promotions[199]

Important Notice [Important Notice](index=2&type=section&id=重要提示) The Board of Directors, Supervisory Board, and senior management guarantee the truthfulness and completeness of this quarterly report, with all directors attending the review - The company's Board of Directors, Supervisory Board, directors, supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, free from false records, misleading statements, or major omissions, and assume joint and several legal liabilities[4](index=4&type=chunk) - All directors attended the Board of Directors meeting to review this quarterly report[5](index=5&type=chunk) - Company head He Guoying, chief accountant Yuan Guifen, and head of accounting department Liu Suxia declare that the financial statements in the quarterly report are true, accurate, and complete[5](index=5&type=chunk) Company Profile [Key Accounting Data and Financial Indicators](index=3&type=section&id=一、主要会计数据和财务指标) In the first three quarters of 2020, the company experienced a severe performance decline, with revenue down 40.11% and net profit attributable to shareholders turning into a **93.44 million Yuan loss**, a decrease of 865.43%, though operating cash flow significantly improved by 121.77% Key Financial Indicators for the First Three Quarters of 2020 | Item | Year-to-Reporting Period End | Year-on-Year Change | | :--- | :--- | :--- | | Operating Revenue (Yuan) | 187,359,460.94 | -40.11% | | Net Profit Attributable to Shareholders (Yuan) | -93,443,602.71 | -865.43% | | Net Profit Attributable to Shareholders Excluding Non-recurring Gains/Losses (Yuan) | -145,822,329.85 | -1,941.64% | | Net Cash Flow from Operating Activities (Yuan) | 54,802,808.20 | 121.77% | | Basic Earnings Per Share (Yuan/share) | -0.2477 | -876.49% | | Weighted Average Return on Net Assets | -5.06% | -5.70% | Non-recurring Gains and Losses for the First Three Quarters of 2020 | Item | Year-to-Reporting Period End Amount (Yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 50,538,925.30 | | Government Grants | 1,741,842.40 | | Gains/Losses from Entrusted Investments or Asset Management | 1,512,422.13 | | Other Non-operating Income and Expenses | -1,451,261.72 | | **Total** | **52,378,727.14** | [Shareholder Information](index=4&type=section&id=二、报告期末股东总数及前十名股东持股情况表) As of the end of the reporting period, the company had **38,064** common shareholders, with controlling shareholder He Guoying holding 31.31% and his cousin He Shufeng also among the top ten, forming an associated relationship - As of the end of the reporting period, the company had **38,064** common shareholders[12](index=12&type=chunk) Top Ten Shareholders' Holdings (Partial) | Shareholder Name | Shareholding Percentage | Number of Shares Held | | :--- | :--- | :--- | | He Guoying | 31.31% | 120,720,374 | | Huasi Holdings Co., Ltd. Repurchase Special Securities Account | 2.14% | 8,250,100 | | Shanghai Textile Investment Management Co., Ltd. | 1.71% | 6,581,354 | | He Shufeng | 1.67% | 4,914,000 | - Among the top ten shareholders, controlling shareholder He Guoying and He Shufeng are cousins, constituting related parties[13](index=13&type=chunk) Significant Events [Changes and Reasons for Key Financial Data](index=6&type=section&id=一、报告期主要财务数据、财务指标发生变动的情况及原因) During the reporting period, multiple financial indicators fluctuated significantly, with operating revenue decreasing by 40.11% due to the pandemic, goodwill written down to zero, and asset disposal gains surging by 14399.05% from land compensation - Operating revenue decreased by **40.11%** year-on-year, primarily due to pandemic-induced cancellations of international orders, reduced domestic brand orders, and slow progress in shop construction projects affecting sales recognition[16](index=16&type=chunk) - Goodwill balance at period-end was **0**, a **100% decrease** from the beginning of the period, mainly due to the provision for goodwill impairment during the reporting period[16](index=16&type=chunk) - Gains from asset disposal surged by **14399.05%** year-on-year, primarily from compensation for government-repossessed land and buildings[17](index=17&type=chunk) - Net cash flow from operating activities increased by **121.77%** year-on-year, mainly due to a significant reduction in cash paid for goods and services under pandemic impact[17](index=17&type=chunk) [2020 Annual Operating Performance Forecast](index=8&type=section&id=六、对%202020%20年度经营业绩的预计) The company forecasts a significant net loss for 2020, ranging from **280 million to 400 million Yuan**, primarily due to reduced sales from the global pandemic and potential impairment losses on mink fur inventory 2020 Annual Performance Forecast | Item | Year-to-Next Reporting Period End (Yuan) | Prior Period (Yuan) | Change | | :--- | :--- | :--- | :--- | | Cumulative Net Profit | -400,000,000 to -280,000,000 | 16,889,800 | -2,468.29% to -1,757.81% | - The main reasons for the projected loss are: first, a significant decline in domestic and international sales revenue due to the global pandemic, especially large-scale cancellations of European orders; second, the discovery of COVID-19 in mink farms in countries like the Netherlands and Denmark, creating significant uncertainty for the fur industry and potential for large impairment losses on the company's imported mink fur inventory[22](index=22&type=chunk) [Other Significant Matters](index=7&type=section&id=其他重要事项) During the reporting period, the company had no significant event progress, no overdue unfulfilled commitments, no securities or derivatives investments, no entrusted wealth management, and no controlling shareholder fund occupation - The company had no overdue unfulfilled commitments during the reporting period[18](index=18&type=chunk) - The company had no securities investments, derivative investments, or entrusted wealth management during the reporting period[20](index=20&type=chunk)[21](index=21&type=chunk)[23](index=23&type=chunk) - The company had no irregular external guarantees or non-operating fund occupation by controlling shareholders during the reporting period[24](index=24&type=chunk)[25](index=25&type=chunk) - No investor relations activities such as research visits, communications, or interviews occurred during the reporting period[27](index=27&type=chunk) Financial Statements [Financial Statements](index=10&type=section&id=一、财务报表) This section presents the company's unaudited consolidated and parent company financial statements for the third quarter of 2020, including balance sheets, income statements, and cash flow statements [Consolidated Balance Sheet](index=10&type=section&id=1、合并资产负债表) As of September 30, 2020, the company's total assets were **2.36 billion Yuan**, total liabilities **565.54 million Yuan**, and net assets attributable to shareholders **1.80 billion Yuan**, showing decreases from the year's beginning Key Items from Consolidated Balance Sheet (Unit: Yuan) | Item | September 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Total Assets | 2,359,083,619.05 | 2,537,326,536.18 | | Total Liabilities | 565,537,536.35 | 648,460,433.47 | | Total Equity Attributable to Parent Company Owners | 1,800,890,040.94 | 1,893,534,099.42 | [Consolidated Income Statement](index=15&type=section&id=3、合并本报告期利润表) In Q3 2020, revenue was **80.38 million Yuan**, but net profit attributable to parent company owners was a **75.96 million Yuan loss**, a significant decline; year-to-date revenue was **187.36 million Yuan**, with a **93.44 million Yuan** cumulative loss Consolidated Income Statement - Third Quarter (Unit: Yuan) | Item | Current Period (Q3 2020) | Prior Period (Q3 2019) | | :--- | :--- | :--- | | Total Operating Revenue | 80,384,010.01 | 76,420,274.70 | | Operating Profit | -75,362,980.34 | 464,298.99 | | Net Profit Attributable to Parent Company Owners | -75,963,720.74 | 147,592.77 | Consolidated Income Statement - Year-to-Date (Unit: Yuan) | Item | Current Period (Jan-Sep 2020) | Prior Period (Jan-Sep 2019) | | :--- | :--- | :--- | | Total Operating Revenue | 187,359,460.94 | 312,855,694.33 | | Operating Profit | -96,123,987.96 | 15,245,428.76 | | Net Profit Attributable to Parent Company Owners | -93,443,602.71 | 12,207,909.85 | [Consolidated Cash Flow Statement](index=24&type=section&id=7、合并年初到报告期末现金流量表) In the first three quarters of 2020, net cash flow from operating activities significantly improved to **54.80 million Yuan**, while investing activities generated **74.90 million Yuan** from asset disposal, and financing activities had a net outflow of **172.72 million Yuan** Consolidated Cash Flow Statement Summary (Unit: Yuan) | Item | Current Period (Jan-Sep 2020) | Prior Period (Jan-Sep 2019) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 54,802,808.20 | -251,746,066.71 | | Net Cash Flow from Investing Activities | 74,898,120.22 | -17,945,083.78 | | Net Cash Flow from Financing Activities | -172,718,898.53 | 78,400,217.11 | | Net Increase in Cash and Cash Equivalents | -43,270,083.84 | -192,137,604.64 | [Notes on Financial Statement Adjustments](index=28&type=section&id=二、财务报表调整情况说明) The company adopted new revenue standards from January 1, 2020, reclassifying 'Prepayments from Customers' to 'Contract Liabilities' in the opening balance sheet, with no impact on net assets - The company first adopted the new revenue recognition standard from January 1, 2020, and adjusted relevant items in the opening financial statements[62](index=62&type=chunk) - The main adjustment reclassified **39,782,202.36 Yuan** of 'Prepayments from Customers' from the consolidated balance sheet as of December 31, 2019, to 'Contract Liabilities' in the January 1, 2020 statement[65](index=65&type=chunk) - This accounting policy change only involved reclassification of statement items, with no impact on the company's total assets, total liabilities, or total owner's equity as of January 1, 2020[66](index=66&type=chunk) [Audit Report](index=34&type=section&id=三、审计报告) The company's 2020 third-quarter report is unaudited - The company's third-quarter report is unaudited[70](index=70&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2020 was approximately ¥106.98 million, a decrease of 54.75% compared to ¥236.44 million in the same period last year[17]. - The net profit attributable to shareholders of the listed company was a loss of approximately ¥17.48 million, representing a decline of 244.94% compared to a profit of ¥12.06 million in the previous year[17]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of approximately ¥68.00 million, a decrease of 840.19% compared to a profit of ¥9.19 million in the same period last year[17]. - The total profit for the period was -¥21,735,523.37, representing a decline of 254.99% year-on-year[35]. - The net profit attributable to shareholders was -¥17,479,881.97, down 244.94% from the same period last year[35]. - The company reported a net profit forecast for the period from January to September 2020 to be between -RMB 9,500,000 and -RMB 8,500,000, indicating a significant decline of 1,173.49% year-on-year[56]. - The net loss for the first half of 2020 was ¥19,751,493.74, compared to a net profit of ¥9,781,302.32 in the first half of 2019, indicating a significant decline in profitability[121]. - The total comprehensive loss for the first half of 2020 was ¥18,823,767.66, compared to a comprehensive income of ¥9,864,491.34 in the same period of 2019[122]. - The company’s management indicated a focus on cost reduction and efficiency improvements in response to the significant decline in revenue[121]. Cash Flow and Liquidity - The net cash flow from operating activities was approximately ¥1.08 million, a significant improvement from a negative cash flow of ¥176.19 million in the previous year, marking a 100.61% increase[17]. - The company's cash and cash equivalents at the end of the reporting period were RMB 286,731,750.59, down from RMB 328,140,629.89 at the same time last year[44]. - The ending balance of cash and cash equivalents as of June 30, 2020, was ¥286,731,750.59, down from ¥159,382,246.94 at the end of the first half of 2019[130]. - Total cash inflow from operating activities decreased to ¥180,885,336.10 in 2020 from ¥193,691,950.25 in 2019, reflecting a decline of approximately 6.6%[129]. - Cash outflow from operating activities also decreased to ¥179,807,329.99 in 2020 from ¥369,885,910.07 in 2019, indicating a reduction of about 51.5%[129]. - The net cash flow from investing activities was -¥3,187,296.52 in the first half of 2020, an improvement from -¥9,465,566.97 in the same period of 2019[130]. - Cash paid for purchasing goods and services decreased to ¥124,628,219.53 in 2020 from ¥275,168,767.61 in 2019, a reduction of approximately 54.7%[129]. Assets and Liabilities - The total assets at the end of the reporting period were approximately ¥2.52 billion, a decrease of 0.57% from ¥2.54 billion at the end of the previous year[17]. - The net assets attributable to shareholders of the listed company were approximately ¥1.88 billion, down 0.86% from ¥1.89 billion at the end of the previous year[17]. - Total liabilities increased from CNY 648,460,433.47 to CNY 652,736,233.24, an increase of about 0.42%[113]. - Current liabilities decreased from CNY 484,952,344.68 to CNY 477,132,624.35, a decline of approximately 1.69%[113]. - Non-current liabilities increased from CNY 163,508,088.79 to CNY 175,603,608.89, an increase of about 7.77%[113]. - The company has significant liabilities, with short-term borrowings reduced to RMB 10,035,526.70 from RMB 101,706,734.33, primarily due to repayment of bank loans[44]. Investment and Development - Research and development investment decreased by 37.43% to ¥4,028,053.01 due to the impact of the pandemic[38]. - The company plans to increase technological investment over the next three to five years to enhance its competitive edge and market share[26]. - The company is focused on the development of the fur fashion industry, emphasizing innovation and service platform construction[25]. - The company is constructing a 130,000 square meter international fur trading center to facilitate raw material transactions in the fur industry[28]. - The company has established a breeding platform for high-quality mink in Denmark, integrating 1,700 farms to improve domestic breeding quality[28]. - The company plans to focus on high value-added products and invest in R&D to improve production processes and product quality[57]. Market and Sales - Domestic sales amounted to RMB 49,786,210.34, representing a 36.14% decline year-on-year, while export sales were RMB 24,768,299.11, down 51.31%[42]. - The OBM segment contributed ¥54,195,496.52, accounting for 50.65% of total revenue, despite a 33.02% decline year-on-year[40]. - The company's operating revenue decreased by 54.75% compared to the same period last year, primarily due to the impact of the pandemic, resulting in significant cancellations of foreign orders and a reduction in domestic brand orders[42]. - The gross profit margin for OBM products dropped by 72.45% year-on-year, while ODM products saw a decrease of 13.38%[42]. - The company’s e-commerce base aims to create a live-streaming platform for seasonal apparel, enhancing sales channels for suppliers[30]. Shareholder and Equity Information - The total number of shares is 385,560,818, with 23.48% being limited shares and 76.52% being unrestricted shares[92]. - The total number of common shareholders at the end of the reporting period is 42,831[94]. - The largest shareholder, He Guo Ying, holds 31.31% of the shares, totaling 30,180,093 common shares[95]. - The total equity attributable to the parent company at the end of the first half of 2020 was 1,888.14 million yuan, a decrease of 18.82% compared to the previous period[135]. - The total reserves decreased by 3,510,000, reflecting challenges in maintaining financial stability[138]. Risk Management and Compliance - The company has outlined potential risks and corresponding measures in its report, which investors should be aware of[4]. - The company confirmed its ability to continue as a going concern for the next 12 months without significant doubts[160]. - The financial statements comply with the accounting standards and accurately reflect the company's financial position and operating results[161]. - The company has not engaged in any major related party transactions during the reporting period[71]. - There were no significant litigation or arbitration matters during the reporting period[68]. Environmental and Social Responsibility - The company is classified as a key pollutant discharge unit and has implemented various pollution control measures, including a comprehensive wastewater treatment facility with a capacity of 1600 m³/d[84]. - The company has obtained an emissions permit and all pollutants were discharged within the standards during the reporting period[85]. - There were no significant environmental incidents reported, and the company has established an emergency response plan for environmental events[86].

Financial Performance - Revenue for Q1 2020 was ¥49,466,213.40, a decrease of 51.33% compared to ¥101,639,285.86 in the same period last year[8] - Net profit attributable to shareholders was -¥7,381,713.75, representing a decline of 379.23% from ¥2,643,574.50 year-on-year[8] - Basic and diluted earnings per share were both -¥0.0191, down 376.81% from ¥0.0069 in the same period last year[8] - Operating revenue declined by 51.33% to ¥49,466,213.40, primarily due to the impact of the COVID-19 pandemic[15] - The company's net profit for Q1 2020 was not explicitly stated, but the decrease in revenue and costs indicates a challenging financial environment[39] - The net profit for Q1 2020 was a loss of CNY 8,094,951.92, contrasting with a profit of CNY 2,035,671.56 in the same period last year[40] - The total comprehensive income for Q1 2020 was a loss of CNY 7,832,895.38, compared to a gain of CNY 790,421.67 in the previous year[41] - The company's total profit for Q1 2020 was a loss of CNY 8,114,761.07, compared to a profit of CNY 4,245,086.12 in the previous year[40] Cash Flow - The net cash flow from operating activities improved to -¥12,190,698.05, a 75.26% increase compared to -¥49,279,893.72 in the previous year[8] - In Q1 2020, the net cash flow from operating activities was -12,190,698.05 CNY, compared to -49,279,893.72 CNY in the same period last year, indicating an improvement[48] - The cash inflow from operating activities was CNY 80,321,428.48, down from CNY 104,926,873.39 in the previous period[47] - The total cash outflow from operating activities was 92,512,126.53 CNY, compared to 154,206,767.11 CNY in the previous year, reflecting a decrease in cash outflow[48] - The company reported a net increase in cash and cash equivalents of -990,008.35 CNY for the quarter, compared to -34,129,861.35 CNY in Q1 2019[49] Assets and Liabilities - Total assets at the end of the reporting period were ¥2,557,097,638.27, an increase of 0.78% from ¥2,537,326,536.18 at the end of the previous year[8] - Current assets totaled CNY 1,225,791,086.69 as of March 31, 2020, compared to CNY 1,248,343,725.44 at the end of 2019[35] - Total liabilities amounted to CNY 676,064,430.94, an increase from CNY 648,460,433.47 in the previous period[33] - Long-term borrowings increased to CNY 216,000,000.00 from CNY 148,000,000.00, indicating a rise in financial leverage[33] - The company's total equity was CNY 1,881,033,207.33, slightly down from CNY 1,888,866,102.71[33] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 44,176[11] - The largest shareholder, He Guoying, holds 31.31% of the shares, with 90,540,281 shares pledged[11] - The company did not engage in any repurchase transactions among the top 10 shareholders during the reporting period[12] Operating Expenses - The company reported a significant increase in operating expenses, with sales expenses down by 33.81% to ¥8,440,399.95 due to reduced store and promotional costs[15] - The company incurred operating costs of CNY 20,441,687.06 in Q1 2020, down from CNY 52,962,443.32 in the previous period[43] - Research and development expenses decreased by 66.11% to ¥854,699.13, attributed to a temporary halt in production during the reporting period[15] - The company experienced a decrease in research and development expenses, which were CNY 854,699.13 in Q1 2020 compared to CNY 2,521,801.61 in the previous year[43] Government Subsidies - The company received government subsidies amounting to ¥709,651.80 during the reporting period[9] - Other income increased by 82.59% to ¥709,651.80, mainly due to an increase in government subsidies received[15]

Financial Performance - The company's operating revenue for 2019 was ¥477,180,890.26, a decrease of 4.83% compared to ¥501,372,545.93 in 2018[18]. - The net profit attributable to shareholders for 2019 was ¥16,889,774.02, showing a slight increase of 0.15% from ¥16,865,311.45 in 2018[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥9,438,931.67, a significant increase of 20,608.20% compared to ¥45,580.65 in 2018[18]. - The total profit for the year was ¥18,462,554.28, representing an increase of 20.46% year-over-year[37]. - The total assets at the end of 2019 were ¥2,537,326,536.18, a decrease of 0.99% from ¥2,562,789,231.73 at the end of 2018[18]. - The net assets attributable to shareholders decreased by 1.88%, amounting to ¥1,893,534,099.42 at the end of 2019, down from ¥1,929,900,432.57 in 2018[18]. - Basic earnings per share for 2019 were ¥0.0445, an increase of 1.83% from ¥0.0437 in 2018[18]. - The weighted average return on net assets was 0.89% in 2019, slightly up from 0.88% in 2018[18]. - The net cash flow from operating activities improved by 21.78%, reaching -¥156,755,682.89 in 2019, compared to -¥200,413,922.92 in 2018[18]. - The company received government subsidies amounting to ¥6,292,607.20 in 2019, up from ¥4,627,779.47 in 2018[23]. Revenue Breakdown - OBM revenue decreased by 8.84% to ¥187,423,180.87, while ODM revenue fell by 18.04% to ¥131,869,324.47[42]. - OEM revenue saw a significant decline of 53.93%, dropping to ¥9,397,560.05 from ¥20,396,902.85[40]. - Other business income increased by 29.72% to ¥148,490,824.87, compared to ¥114,473,287.96 in 2018[40]. - Domestic sales accounted for ¥235,348,223.19, a decrease of 13.48% from ¥272,011,154.13 in the previous year[40]. - Export sales decreased by 18.75% to ¥93,341,842.20, down from ¥114,888,103.84[40]. - The revenue from fashion products increased by 35.14% to ¥23,816,226.93, while the revenue from fur clothing decreased by 18.12% to ¥199,379,997.32[40]. Research and Development - The company implemented six R&D projects in 2019, focusing on innovative techniques in fur processing and dyeing, enhancing its technological capabilities[29]. - The company holds a total of 24 patents, reflecting its commitment to innovation and market competitiveness[29]. - Research and development expenses amounted to ¥13,919,734.14, which is 2.92% of the operating revenue, showing a 1.57% increase compared to the previous year[54]. - The number of R&D personnel decreased by 11.85% to 119, while the proportion of R&D personnel increased to 11.60%[54]. Strategic Initiatives - The establishment of the Huasi Fur Town aims to create a high-end service platform, enhancing the overall value chain in the fur industry[28]. - The company has built an international fur trading platform to modernize and streamline the traditional fur trading process[28]. - The company has formed strategic partnerships with leading domestic and international brands to enhance its competitive edge in design and production[36]. - The company is focused on increasing its investment in technology and intellectual property to maintain industry leadership over the next three to five years[37]. - The company plans to enhance its domestic sales efforts and establish a marketing system to promote its two brands, "Wasi" and "Yijiaqi"[69]. - The company aims to expand its international market presence, focusing on Europe, Russia, the United States, Japan, and South Korea, which are key markets for its products[69]. - The company is developing an online sales channel to leverage e-commerce platforms for resource expansion[70]. - The company is constructing the "Wasi Fur Town," covering an area of 5,000 acres, to promote industry cluster development and enhance market competitiveness[72]. - The company will invest in product design and collaborate with influential designers to ensure its products align with fashion trends[73]. - The company plans to enhance its production processes by implementing green and sustainable practices, including zero wastewater discharge[74]. Corporate Governance - The company has established a comprehensive quality management system to ensure product quality through a three-tier quality control system[74]. - The company emphasizes a comprehensive internal control system based on its articles of association to protect the rights of all shareholders and creditors[121]. - The company has maintained its accounting firm, Daxin Certified Public Accountants, for 11 consecutive years[100]. - The company has established a robust internal audit system to ensure effective internal control over daily operations[178]. - The company has a dedicated investor relations management system to facilitate communication with investors[178]. - The company has not reported any changes in the management team during the current reporting period[158]. - The board includes members with significant experience in international markets and trade, enhancing the company's strategic direction[155]. Shareholder Information - The total number of shareholders at the end of the reporting period was 48,138, an increase from 45,136 at the end of the previous month[139]. - The largest shareholder, He Guoying, holds 31.31% of the shares, amounting to 30,180,093 shares[140]. - The second largest shareholder, Shanghai Textile Investment Management Co., holds 1.71% with 6,581,354 shares[140]. - The company did not experience any changes in its controlling shareholder during the reporting period[142]. - The company has maintained a stable shareholder structure with no new strategic investors entering the top ten shareholders[141]. Environmental Compliance - The company is classified as a key pollutant discharge unit and has implemented measures to ensure compliance with pollution discharge standards[127]. - The company has established a comprehensive wastewater treatment facility with a processing capacity of 1,600 m³/d, utilizing advanced treatment technologies[128]. - The company has obtained a pollution discharge permit and has consistently met discharge standards during the reporting period[129]. Employee Management - The total number of employees in the company is 1,229, with 1,026 in the parent company and 203 in major subsidiaries[168]. - The total remuneration for directors, supervisors, and senior management during the reporting period amounts to 161.06 million yuan[167]. - The company conducts annual training plans to enhance the skills and management levels of employees[171].

Financial Performance - Net profit attributable to shareholders was CNY 147,592.77, down 47.53% year-on-year[9] - Operating revenue for the reporting period was CNY 76,420,274.70, a decline of 41.43% compared to the same period last year[9] - Basic earnings per share were CNY 0.0004, down 42.86% year-on-year[9] - The weighted average return on net assets was 0.01%, a decrease of 0.01% compared to the previous year[9] - The company's net profit for Q3 2019 was not explicitly stated, but the decrease in revenue and costs indicates a challenging financial environment[39] - The net profit for the third quarter was CNY 5,176,464.91, down 40.5% from CNY 8,629,059.54 year-over-year[45] - The company's total comprehensive income for the third quarter was CNY -1,694,417.64, compared to CNY 344,605.02 in the previous year[41] - The operating profit for the third quarter was CNY 6,239,971.24, a decline of 36.5% from CNY 9,819,480.97 in the same quarter last year[43] Cash Flow - The net cash flow from operating activities was CNY -75,552,106.89, a significant decrease of 5,712.42%[9] - Cash and cash equivalents decreased by 58.26% to ¥138,532,645.05 due to raw material purchases, asset construction expenditures, and stock buybacks[17] - The net cash flow from investing activities improved by 68.97% to -¥17,945,083.78, reflecting a decrease in cash outflows for financial products compared to the previous year[17] - Net cash flow from financing activities increased by 251.32% to ¥78,400,217.11, primarily due to an increase in borrowings[17] - The net cash flow from operating activities was -251,746,066.71 CNY, compared to -249,148,802.37 CNY in the previous period, indicating a slight deterioration[56] - Total cash inflow from operating activities was 294,461,879.81 CNY, while cash outflow was 546,207,946.52 CNY, resulting in a net cash flow deficit[56] - Cash flow from investment activities showed a net outflow of -17,945,083.78 CNY, an improvement from -57,822,735.69 CNY in the previous period[57] - Cash inflow from financing activities was 258,626,443.50 CNY, with a net cash flow of 78,400,217.11 CNY, compared to a net outflow of -51,810,392.71 CNY previously[57] Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,526,252,364.51, a decrease of 1.43% compared to the end of the previous year[9] - Cash and cash equivalents decreased to CNY 85,688,530.27 from CNY 307,218,130.10, representing a decline of 72.0%[34] - Total assets as of September 30, 2019, were CNY 2,599,731,042.48, slightly up from CNY 2,595,306,311.60 at the end of 2018[37] - Total liabilities increased to CNY 640,867,802.95 from CNY 632,259,419.38, reflecting a rise of 1.0%[32] - The company's equity attributable to shareholders decreased to CNY 1,888,567,269.13 from CNY 1,929,900,432.57, a decline of 2.1%[32] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 43,345[13] - The largest shareholder, He Guoying, holds 31.31% of the shares, with 90,540,281 shares pledged[13] - The company did not engage in any repurchase transactions during the reporting period[14] - The company repurchased a total of 8,250,100 shares, accounting for 2.1398% of the total share capital, with a total payment of ¥50,003,856.10[19] - The company plans to use self-owned funds between ¥50 million and ¥100 million for share repurchase, with a maximum price of ¥10 per share[18] Research and Development - Research and development expenses for Q3 2019 were CNY 4,121,613.36, up from CNY 3,652,807.02, indicating an increase of 12.8%[39] - Research and development expenses increased to CNY 4,121,613.36, up 12.8% from CNY 3,652,807.02 year-over-year[43] - Research and development expenses for Q3 2019 were ¥10.56 million, slightly down from ¥10.59 million in Q3 2018[52] Financial Costs - Financial expenses improved by 37.23% to -¥2,385,079.49, mainly due to increased exchange losses from currency fluctuations[17] - The company reported a financial cost of CNY -4,395,428.89, which is an improvement compared to CNY -6,141,342.32 in the previous year[39] - The financial expenses for Q3 2019 were reported as -¥9.84 million, an improvement from -¥10.99 million in Q3 2018[52] Inventory and Receivables - Accounts receivable decreased by 62.82% to ¥821,600.00 as a result of recovering some receivables during the reporting period[17] - Inventory increased to CNY 647,959,873.11, up from CNY 513,324,705.40, indicating a rise of 26.2%[34]

Financial Performance - The company's operating revenue for the first half of 2019 was RMB 236,435,419.63, representing a 9.02% increase compared to RMB 216,880,358.23 in the same period last year[19]. - The net profit attributable to shareholders of the listed company was RMB 12,060,317.08, a 2.25% increase from RMB 11,795,267.77 year-on-year[19]. - The total profit amounted to ¥14,024,089.36, reflecting a growth of 16.00% year-on-year[36]. - The basic earnings per share for the reporting period was RMB 0.0315, reflecting a 2.94% increase from RMB 0.0306 in the same period last year[19]. - The company reported a net profit of approximately 21.86 million yuan for the current period, reflecting a significant increase in comprehensive income[144]. Cash Flow and Liquidity - The net cash flow from operating activities improved by 28.91%, reaching RMB -176,193,959.82, compared to RMB -247,848,962.73 in the previous year[19]. - The total cash inflow from operating activities was CNY 193,691,950.25, down from CNY 317,448,014.55 in the previous year[128]. - The cash flow from investment activities resulted in a net outflow of -¥9,465,566.97, an improvement from -¥54,341,130.91 in the first half of 2018, indicating a positive change of about 83%[130]. - The total cash and cash equivalents at the end of the period were ¥159,382,246.94, down from ¥266,704,177.27 at the end of the first half of 2018, a decline of approximately 40%[131]. Assets and Liabilities - The total assets at the end of the reporting period were RMB 2,460,516,585.99, a decrease of 3.99% from RMB 2,562,789,231.73 at the end of the previous year[19]. - The company's current assets totaled RMB 1,200,481,861.52, down from RMB 1,289,573,804.03 at the end of 2018, indicating a decline of approximately 6.8%[112]. - Total liabilities as of June 30, 2019, were CNY 463,138,828.07, down from CNY 481,017,828.86 at the end of 2018, indicating a reduction of 3.5%[118]. - Long-term borrowings increased significantly by 3.70% to RMB 184,000,000.0, due to new long-term financing[45]. Research and Development - The company invested ¥6,437,721.25 in R&D, a decrease of 7.24% compared to the previous year[38]. - The company aims to enhance R&D investment and focus on high-value products to mitigate risks from increased market competition and rising labor costs[56][57]. Market and Business Strategy - The company plans to focus on the development of the fur fashion industry and enhance its service platform to support the deep processing of animal fur and the design and manufacturing of fur clothing and accessories[27]. - The company established the Huasi Fur Town, which includes various facilities such as a one-stop winter clothing shopping center and an e-commerce incubation park[36]. - The company plans to focus on expanding its market presence and developing new products in the upcoming quarters[140]. Shareholder and Equity Information - The company repurchased a total of 8,250,100 shares, accounting for 2.1398% of the total share capital, with a total payment of RMB 50,003,856.10[93]. - The largest shareholder, He Guoying, holds 31.31% of the shares, amounting to 120,720,374 shares, with 30,180,093 shares pledged[95]. - The total number of shares after the recent changes is 385,560,800, with 23.48% being restricted shares and 76.52% being unrestricted shares[92]. Compliance and Environmental Responsibility - The company has maintained compliance with environmental regulations, with all pollutants meeting discharge standards[82]. - The comprehensive wastewater treatment facility has a processing capacity of 1600m³/d and operates normally[82]. - The company has established pollution prevention facilities that are operating normally[82]. Financial Reporting and Governance - The financial report for the first half of 2019 was not audited[109]. - The financial statements were approved by the board of directors on August 21, 2019[156]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring the financial statements reflect a true and complete picture of its financial status and operations[159].

证券代码：002494 证券简称：华斯股份 公告编号：2019-025 华斯控股股份有限公司 关于参加河北辖区上市公司 2019 年度投资者网上集体接待日暨全国投资者 保护宣传日活动的公告 本公司及董事会全体成员保证信息披露内容的真实、准确和完整，没有 虚假记载、误导性陈述或重大遗漏。 华斯控股股份有限公司（以下简称"公司"）已于 2019 年 2 月 26 日公布了 2018 年年度报告。为加强上市公司投资者关系管理，提高上市公司信息披露透 明度，更好地保 护投资者合法权益，华斯控股股份有限公司（以下简称"公司"） 将于 2019 年 5 月 15 日（星期三）下午 15:00-17:00 参加由中国证监会河北监管 局举办的"河北辖区上市公司 2019 年度投资者网上集体接待日暨全国投资者保 护宣传日"活动。 本次活动将通过深圳市全景网络有限公司提供的网上平台采取网络远程的 方式举行，投资者可以登录"全景•路演天下"（http://rs.p5w.net） 进入专区 页面参与互动交流。 届时，公司董事会秘书郗惠宁女士、财务总监苑桂芬女士将通过网络在线交 流形式与投资者就 2018 年年报、公司治理、发展战略、 ...