Financial Performance - The company's operating revenue for the first half of 2021 was ¥193,934,024.83, a decrease of 35.90% compared to ¥302,541,949.62 in the same period last year[20]. - The net profit attributable to shareholders was a loss of ¥20,424,060.50, representing a decline of 157.67% from a profit of ¥35,413,795.24 in the previous year[20]. - The basic earnings per share were -¥0.0287, down 157.75% from ¥0.0497 in the previous year[20]. - The company's total revenue for the reporting period was ¥193,934,024.83, a decrease of 35.90% compared to ¥302,541,949.62 in the same period last year[44]. - The net profit after deducting non-recurring gains and losses was -¥21,727,114.59, an improvement of 55.77% compared to -¥49,126,776.52 in the previous year[20]. - The company reported a net loss of ¥1,365,174,200.72 in retained earnings as of June 30, 2021, compared to a loss of ¥1,304,241,669.75 at the end of 2020[188]. - The company reported a total profit loss of ¥19.50 million for the first half of 2021, compared to a profit of ¥49.45 million in the first half of 2020[199]. Cash Flow and Assets - The net cash flow from operating activities improved to ¥91,063,903.03, a significant increase of 166.58% compared to a negative cash flow of ¥136,770,066.59 in the same period last year[20]. - Total assets at the end of the reporting period were ¥1,226,186,461.41, an increase of 2.23% from ¥1,199,407,622.00 at the end of the previous year[20]. - Cash and cash equivalents at the end of the reporting period were 337,895,313.05, down 21.57% from the previous year[70]. - The company's current assets decreased to RMB 761,393,591.96 from RMB 1,009,032,673.24 at the end of 2020, representing a decline of approximately 24.6%[186]. - Inventory increased to RMB 163,262,123.26, representing 13.31% of total assets, up 2.69% from the previous year[70]. Operational Challenges - The company is currently assessing the potential for resuming operations of its subsidiary, Wuhan Yueran Network Technology Co., which has faced significant operational challenges[31]. - The company has initiated a special audit of its subsidiary due to management issues, which has led to operational disruptions since April 2021[31]. - The company has a high inventory turnover issue due to its business model, which could lead to inventory accumulation and impairment if market conditions change[90]. - The company is focusing on internal business integration to reduce losses and improve operational efficiency across its subsidiaries[84]. Market and Sales Strategy - The company emphasizes a dual-channel sales strategy, combining direct sales and franchise models to enhance market reach and product quality assurance[32]. - The company's self-owned brand CANUDILO focuses on high-end men's fashion, integrating Chinese cultural elements into its designs, targeting high-net-worth individuals aged 35-50[27][28]. - Online sales for the self-owned brand CANUDILO saw a 27% year-on-year increase in GMV, with Tmall flagship store GMV growing by 68%[39]. - The company plans to strengthen its e-commerce channels and public relations management to boost online presence in the second half of the year[64]. Legal and Regulatory Issues - The company is currently involved in multiple legal proceedings, including a case against Shenzhen Qianhai Happiness Wisdom Fund Management Co., which has been transferred to a court with jurisdiction[120]. - The company is facing intensified competition in the retail sector, particularly in online sales channels, which may impact profitability[89]. - The company has incurred litigation costs amounting to RMB 470,753 (approximately $73,000) related to the ongoing legal matters[119]. - The company is actively managing its legal risks and has disclosed the progress of its significant lawsuits in public announcements[119]. Subsidiary Performance - The overall performance of the company’s subsidiaries indicates a recovery trend as COVID-19 impacts lessen, particularly in retail operations[84]. - Guangzhou Lion Dan Trading Co., Ltd. achieved revenue of CNY 46,825,822.83, a 10.9% increase from CNY 42,215,316.47 in the same period last year, with a net profit of CNY 7,087,751.01, up from a loss of CNY 14,747,296.39[83]. - Wuhan Yueran Xindong Network Technology Co., Ltd. and its subsidiaries generated revenue of CNY 6,406,642.81, a decline of 1474.8% from CNY 100,888,773.32, with a net loss of CNY 6,841,258.43, an improvement from a loss of CNY 7,876,126.7[86]. Shareholder and Governance - The company has undergone a board and supervisory committee reshuffle, with new appointments made for key positions including the chairman and vice presidents[160]. - The controlling shareholder, Ruifeng Group, has passively reduced its shareholding by a total of 10,313,087 shares, accounting for approximately 1.4474% of the company's total share capital by June 30, 2021[127]. - The company has not engaged in any mergers or acquisitions during the reporting period[109]. - The company has not reported any bankruptcy restructuring matters during the reporting period[118].

Regulatory and Compliance Issues - The company's stock was placed under risk warning due to the controlling shareholder providing guarantees in violation of regulations, changing the stock name to "ST Modern" with a trading limit of 5%[8] - As of March 31, 2020, the company received a notice of investigation from the China Securities Regulatory Commission, with no conclusive opinions received by the announcement date[9] - The company guarantees the independence of its financial personnel, ensuring they do not hold positions or receive compensation from related enterprises[139] - The company has pledged to minimize related party transactions and ensure that unavoidable transactions are conducted fairly and transparently[139] - The company reported a commitment to ensure that all expenses incurred due to historical non-compliance with telecommunications regulations will be borne by the shareholders[138] Financial Performance - The company reported a strong correlation between its operating performance and macroeconomic trends, facing risks from economic slowdown and consumer downturns due to the pandemic[12] - The company's operating revenue for 2020 was ¥511,949,377.31, a decrease of 62.68% compared to ¥1,371,741,032.52 in 2019[26] - The net profit attributable to shareholders was ¥7,317,530.32, marking a 100.50% increase from a loss of ¥1,468,359,962.88 in 2019[26] - The net profit after deducting non-recurring gains and losses was -¥238,443,767.09, an improvement of 80.07% from -¥1,196,216,629.23 in 2019[26] - The total assets at the end of 2020 were ¥1,199,407,622.00, down 35.93% from ¥1,872,109,687.27 at the end of 2019[26] Dividend Policy - The company plans not to distribute cash dividends or issue bonus shares for the fiscal year[15] - The company has not proposed any cash dividends for the years 2019 and 2020, reflecting ongoing financial challenges[136] - The company's board of directors has consistently opted against profit distribution in the last three years due to financial performance[132][133] Operational Challenges - The company is undergoing internal control improvements due to frequent changes in the head of the internal audit department, aiming to reduce operational risks[10] - The company faces intensified competition in the retail sector as it transitions to a new retail platform, which may impact profitability[13] - The company has implemented measures such as closing unprofitable stores and enhancing online channels to mitigate the impact of the pandemic on its operations[53] Cash Flow and Liquidity - The net cash flow from operating activities was -¥172,080,906.88, a decline of 549.93% compared to ¥38,245,877.17 in 2019[26] - The company's cash and cash equivalents growth indicates a strong liquidity position, which can support future expansion and operational stability[42] - The total cash and cash equivalents increased by 215,968,656.51 yuan, a significant improvement of 283.26% compared to the previous year[95] Sales and Revenue Breakdown - The company experienced a decline in retail sales of clothing by 4.49% in 2020, reflecting the impact of the COVID-19 pandemic[52] - Online retail revenue fell by 86.03% to CNY 25,825,357.71, while offline retail revenue decreased by 56.35% to CNY 347,862,993.55[64] - The international brand business generated revenue of CNY 114,785,604.72 in 2020, down 49.78% year-on-year due to the impact of the pandemic on tourism and retail in Macau[57] Store Operations - The company operates 204 offline stores as of December 31, 2020, including 116 direct-operated stores and 88 franchise stores[45] - The total number of CANUDILO stores as of December 31, 2020, was 195, with 54 stores closed and 15 new stores opened during the year[56] - The company closed 42 direct-operated stores during the reporting period due to poor performance, while opening only 4 new stores[67] Research and Development - The company is focusing on digital management measures and supply chain upgrades to enhance operational efficiency and brand competitiveness[55] - Research and development investment amounted to 24,325,798.43 yuan, a decrease of 56.56% from 55,998,600.32 yuan in 2019, representing 4.75% of operating revenue[95] Legal and Litigation Matters - The company is involved in significant litigation, with a potential liability of CNY 84.79 million related to a loan guarantee dispute[159] - The company is currently in the process of resolving disputes related to employee stock ownership plans, with a total of 7.625 million shares involved[160] - The company is actively managing its legal risks and liabilities to mitigate potential financial impacts[160] Shareholder and Ownership Issues - The controlling shareholder, Ruifeng Group, has cumulatively reduced its holdings by 43,524,843 shares, accounting for 6.1086% of the total share capital from January 1, 2020, to December 31, 2020[175] - The company has a total restricted amount of 94,761,625.19 yuan due to litigation and freezing situations as of December 31, 2020[177] - The first employee stock ownership plan holds 15,845,833 shares, which is 2.22% of the total share capital[179] Future Outlook and Strategy - In 2021, the company plans to focus on enhancing the brand influence and product competitiveness of its self-owned brand CANUDILO, targeting the 35-50 age group seeking luxury and fashion[120] - The company will implement a digital transformation strategy to enhance agile development and improve operational efficiency through a minimum viable product (MVP) model[125] - The company plans to introduce advanced human efficiency management systems to improve organizational effectiveness and employee capabilities[127]

Financial Performance - The company's revenue for Q1 2021 was ¥117,564,797.32, representing a decrease of 37.50% compared to the same period last year[7]. - The net profit attributable to shareholders was a loss of ¥16,153,698.64, an improvement of 60.21% from a loss of ¥40,602,369.08 in the previous year[7]. - The company's operating revenue decreased by 37.50% compared to the same period last year, primarily due to the ongoing impact of the COVID-19 pandemic and overall economic downturn[16]. - The company's net loss for Q1 2021 was CNY 1,333,706,214.42, compared to a loss of CNY 1,304,241,669.75 in the previous period[77]. - The company anticipates a net loss of between 30 million and 20 million yuan for the first half of 2021, a significant increase in loss compared to a profit of 35.41 million yuan in the same period last year, reflecting a change of 184.71% to 156.48%[62]. - The total comprehensive income for Q1 2021 was a loss of CNY 14,423,030.91, compared to a loss of CNY 59,734,001.04 in the previous year[86]. Cash Flow - The net cash flow from operating activities was ¥117,294,641.75, a significant increase of 336.34% compared to a negative cash flow of ¥49,630,349.63 in the same period last year[7]. - The net cash flow from operating activities increased by 336.34% compared to the same period last year, attributed to lower employee compensation and expenses[28]. - The company reported a cash inflow from operating activities of CNY 109,954,880.97, down from CNY 180,019,827.87 in the previous period[92]. - Cash inflow from financing activities was recorded at ¥3,317,420.84, but cash outflow was significantly higher at ¥256,624,129.90, leading to a net cash flow from financing activities of -¥253,306,709.06[94]. - The company achieved a cash inflow from the disposal of fixed assets and other long-term assets amounting to ¥373,112,387.86, contributing positively to cash flow management[97]. Assets and Liabilities - The total assets at the end of the reporting period were ¥1,231,646,593.67, reflecting a growth of 2.69% from the previous year[7]. - The total liabilities increased to CNY 752,418,015.33 from CNY 689,849,728.18 in the previous period[81]. - The total assets as of March 31, 2021, amounted to CNY 2,819,868,513.47, an increase from CNY 2,764,816,155.58 at the end of 2020[81]. - The total current assets were CNY 1,934,423,709.46, with no significant changes reported[103]. - The total owner's equity attributable to the parent company was CNY 759,527,960.59, showing a decrease of CNY 13,310,846.03[103]. Shareholder Information - The total number of shareholders at the end of the reporting period was 13,965[11]. - The largest shareholder, Guangzhou Ruifeng Group Co., Ltd., held 19.62% of the shares, amounting to 139,825,282 shares[11]. - The controlling shareholder, Ruifeng Group, has reduced its holdings by 7,099,859 shares, representing 0.9964% of the total share capital, during the passive reduction plan period[51]. Expenses - Operating costs decreased by 53.17% compared to the same period last year, reflecting the reduction in operating revenue due to the pandemic[17]. - Tax and additional charges decreased by 66.65% year-on-year, also due to reduced operating revenue during the pandemic[18]. - Sales expenses decreased by 33.33% compared to the same period last year, in line with the decline in operating revenue[19]. - Management expenses decreased by 34.59% year-on-year, reflecting the overall reduction in business activity[20]. - R&D expenses decreased by 38.10% compared to the same period last year, primarily due to reduced revenue[21]. Future Outlook - The company is focusing on improving operational cash flow and managing financing costs to enhance overall financial stability moving forward[93]. - The company plans to participate in a public auction for a property valued at 238.66 million yuan, with a starting price of 167.06 million yuan, which is associated with its controlling shareholder[57].

Regulatory Compliance and Investigations - The company's stock was placed under risk warning due to the controlling shareholder's violation of regulations, changing the stock name from "Modern Avenue" to "ST Modern" with a trading limit of 5%[8]. - As of March 31, 2020, the company received a notice of investigation from the China Securities Regulatory Commission, with no conclusive opinions received by the announcement date[9]. - The company received administrative regulatory measures from the Guangdong Securities Regulatory Bureau due to suspected violations of information disclosure laws[200]. - The company is undergoing an investigation by the China Securities Regulatory Commission[200]. - The company is actively correcting related behaviors and mitigating risks[200]. - The company is enhancing the awareness of compliance among its directors, supervisors, and senior management regarding relevant laws and regulations[200]. - The company is strengthening internal control management and improving corporate governance systems[200]. - The company aims to enhance the quality of information disclosure and fulfill its disclosure obligations[200]. - The company is committed to protecting the legitimate rights and interests of its shareholders[200]. Financial Performance - The company's operating revenue for 2020 was ¥511,949,377.31, a decrease of 62.68% compared to ¥1,371,741,032.52 in 2019[26]. - The net profit attributable to shareholders for 2020 was ¥7,317,530.32, marking a 100.50% increase from a loss of ¥1,468,359,962.88 in 2019[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥238,443,767.09, an improvement of 80.07% from -¥1,196,216,629.23 in 2019[26]. - The net cash flow from operating activities was -¥172,080,906.88, a decline of 549.93% compared to ¥38,245,877.17 in 2019[26]. - The total assets at the end of 2020 were ¥1,199,407,622.00, down 35.93% from ¥1,872,109,687.27 at the end of 2019[26]. - The company reported a basic earnings per share of ¥0.0103 for 2020, compared to a loss of ¥2.0608 in 2019, reflecting a 100.50% increase[26]. - The company reported a net loss of approximately 1,487 million in 2020, indicating a significant decline in financial performance compared to previous years[195]. Operational Challenges - The company reported a strong correlation between its operating performance and macroeconomic trends, facing risks from economic slowdown and consumer downturn due to the pandemic[12]. - The company is undergoing internal control improvements due to frequent changes in the head of the internal audit department, aiming to reduce operational risks[10]. - The company faces intensified competition in the retail sector as it transitions to a new retail platform, which may impact profitability[13]. - The company has implemented measures such as staff reductions and the closure of unprofitable stores to mitigate the impact of the pandemic on its operations[53]. - The company experienced a decline in retail sales of clothing by 4.49% in 2020, reflecting the impact of the COVID-19 pandemic[52]. Strategic Initiatives - The company is focusing on digital management measures and supply chain upgrades to enhance operational efficiency and brand competitiveness[54][55]. - The company has committed to ensuring that all necessary operational qualifications and production licenses are obtained, with strict compliance ongoing since October 27, 2016[133]. - The company has established a governance structure that allows for independent decision-making by its board and management[135]. - The company aims to integrate online and offline channels to enhance brand value and create value for customers, shareholders, and society[195]. - The company is focused on promoting healthy, stable, and sustainable development[200]. Subsidiary Performance - The subsidiary Yueran Xindong focuses on mobile internet application services, developing products primarily for overseas customers[38]. - The company completed the sale of its subsidiaries focused on Korean fragrance brands to optimize its asset structure and reduce financial risk[59]. - The overall financial performance of the subsidiaries indicates a mixed outcome, with some reporting losses while others contribute positively to the net profit[110]. - The company is actively pursuing strategies for market expansion and technology development in its subsidiaries[109]. Shareholder and Equity Matters - The controlling shareholder, Ruifeng Group, has cumulatively reduced its holdings by 43,524,843 shares, accounting for 6.1086% of the total share capital from January 1 to December 31, 2020[171]. - The company has a total of 10,310 million yuan in fixed deposits at Macau International Bank, which was affected by a legal dispute[156]. - The company has outstanding payments totaling 7,625,000 yuan related to employee stock ownership plans, which have been overdue[157]. - The company has a total guarantee amount of CNY 34,928,500, accounting for 45.99% of the audited net assets[190]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25% based on new product launches and market expansion strategies[138]. - The company plans to focus on enhancing the brand influence and product competitiveness of its self-owned brand CANUDILO, targeting the 35-50 age group seeking luxury and fashionable products[117]. - The company aims to refine its target customer profile, focusing on high-quality lifestyle and aesthetic needs of elite groups such as business executives and designers, while exploring cross-age marketing strategies[119]. - The company plans to pursue strategic acquisitions to enhance its product portfolio and market reach[141].

Financial Performance - Revenue for the reporting period was CNY 71,737,794.59, a decline of 72.26% year-on-year, and a decrease of 61.06% for the year-to-date[8]. - Net profit attributable to shareholders was a loss of CNY 28,303,705.63, down 49.80% year-on-year, with a year-to-date loss of CNY 7,110,089.61, representing a decline of 128.29%[8]. - The company's operating revenue decreased by 61.06% compared to the same period last year, primarily due to business optimization and the impact of the pandemic on store sales and internet business revenue[28]. - The company reported a significant increase in user engagement, with a year-over-year growth of 25% in active users[77]. - Revenue for the third quarter reached 1.2 billion RMB, representing a 15% increase compared to the same period last year[78]. - The company achieved a net profit of 33 million yuan, 45.5 million yuan, and 61.5 million yuan for the years 2016, 2017, and 2018 respectively as part of its performance commitment[79]. - The estimated cumulative net profit for the year is projected to be a loss of 6 million yuan, representing a 99.59% increase compared to the previous year's loss of 146.836 million yuan[88]. - The company reported a net profit of 50 million RMB for Q3 2020, representing a year-over-year increase of 20%[81]. Cash Flow and Assets - Total assets decreased by 30.41% to CNY 1,302,738,729.10 compared to the end of the previous year[8]. - The net cash flow from operating activities was a negative CNY 194,559,991.94, a decrease of 1,347.00% compared to the same period last year[8]. - The company reported a significant increase in cash received from sales, totaling 430,220,869.47 CNY in Q3 2020, compared to 996,476,646.59 CNY in the previous year[125]. - Cash and cash equivalents increased to ¥94,240,303.26 from ¥67,940,796.32 year-over-year, representing a growth of 38.7%[104]. - The total cash and cash equivalents at the end of the period were 278,792,744.54 CNY, up from 132,448,644.79 CNY at the end of the previous year[126]. - The company reported a total of 34,928.5 million CNY in guarantees, which is 45.93% of the total net assets[93]. - The total amount of non-operating funds occupied by the controlling shareholder and its affiliates is 24,690.6 million CNY, accounting for 32.06% of the latest audited net assets[95]. Shareholder and Equity Information - The number of ordinary shareholders at the end of the reporting period was 15,132[12]. - The largest shareholder, Guangzhou Ruifeng Group, held 23.72% of the shares, amounting to 169,017,000 shares, with 143,494,100 shares frozen[12]. - The company has committed to compensating shareholders with shares obtained from the transaction if the cumulative net profit falls below the promised amounts during the commitment period[79]. - The new shares acquired through the transaction will be subject to a 12-month lock-up period starting from the date of listing[79]. - The company has a structured approach to managing compensation obligations related to performance commitments[79]. Legal and Compliance Issues - The company is involved in ongoing litigation regarding unauthorized guarantees made by its controlling shareholder, with a maximum loan guarantee of RMB 100 million[57]. - The company is currently involved in multiple lawsuits related to loan defaults, with a total claim amount of 1,225 million yuan pending in court[14]. - The company has received a warning letter from the China Securities Regulatory Commission due to suspected information disclosure violations[73]. - The company is undergoing a formal investigation by the China Securities Regulatory Commission[73]. Operational Changes and Strategies - The company had no new store openings or renovation projects due to the impact of the pandemic, leading to a 32.38% decrease in construction in progress[18]. - The company is focused on restructuring and optimizing its asset portfolio through strategic equity transfers[74]. - The company plans to launch three new product lines in Q4 2020, aiming to capture a larger market share in the fashion industry[77]. - The company is actively adjusting its business policies and optimizing its business structure in response to the challenging market conditions[88]. - The management emphasized the importance of digital transformation, with a projected 40% increase in online sales by the end of 2021[81]. Investment and R&D - The company's investment income increased by 1963.29% compared to the same period last year, mainly due to the disposal of investments in Yiyun and Junyou companies[36]. - Investment in technology and R&D increased by 30% year-over-year, focusing on enhancing the online shopping experience[78]. - Research and development expenses decreased by 46.67% compared to the same period last year, primarily due to reduced R&D investment from Wuhan Yueran and its subsidiaries[34]. - Research and development expenses for Q3 2020 were ¥3,109,226.47, down from ¥7,115,913.99 in the same quarter last year, indicating a decrease of about 56.3%[120].

Regulatory and Compliance Issues - The company's stock has been placed under risk warning due to the controlling shareholder's violation of procedures, changing the stock name to "ST Modern" with a trading limit of 5% since January 13, 2020[8]. - As of March 31, 2020, the company received a notice of investigation from the China Securities Regulatory Commission, with no conclusive opinions received yet[9]. - The company reported a significant internal control risk due to violations by the controlling shareholder, leading to the establishment of a responsibility team and the enhancement of internal audit capabilities[10]. - The company is committed to ensuring all necessary operational qualifications and production licenses are obtained, with strict adherence to legal and regulatory requirements[106]. - The company guarantees the independence of its financial department and accounting system, ensuring no financial entanglement with related parties[107]. - The company has committed to strict compliance with tax regulations to avoid penalties and ensure financial stability[106]. - The company has reported a commitment to not recognizing guarantees provided by its controlling shareholder and is actively pursuing legal remedies to protect its rights and interests[131]. - The company has recognized issues in its information disclosure practices and is committed to improving compliance with relevant regulations to ensure timely and accurate disclosures[134]. Financial Performance - The company's operating revenue for the reporting period was ¥302,541,949.62, a decrease of 56.94% compared to the same period last year[25]. - Net profit attributable to shareholders was ¥35,413,795.24, an increase of 13.32% year-over-year[25]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥49,126,776.52, a decline of 263.85% compared to the previous year[25]. - The net cash flow from operating activities was -¥136,770,066.59, a decrease of 200.30% compared to the same period last year[25]. - Total assets at the end of the reporting period were ¥1,343,490,450.40, down 28.24% from the end of the previous year[25]. - The net assets attributable to shareholders increased by 3.39% to ¥786,336,733.23 compared to the end of the previous year[25]. - The company reported a significant increase of 135.66% in cash and cash equivalents due to proceeds from the disposal of the headquarters building[39]. - The company's revenue for the reporting period was ¥302,541,949.62, a decrease of 56.94% compared to ¥702,661,879.27 in the same period last year, primarily due to business optimization and the impact of the pandemic on store sales and online business revenue[66]. Operational Changes and Strategies - The company is transitioning from traditional retail to an omnichannel new retail platform, facing intensified competition from established new retail enterprises[13]. - The company is enhancing its internal management and control systems to better manage operational activities and significant events[10]. - The company aims to improve its governance structure and internal controls to mitigate operational risks[10]. - The company is committed to improving its cash flow stability by optimizing its store network and enhancing online sales channels through social distribution tools[52]. - The company is focusing on upgrading its supply chain and optimizing marketing channels to strengthen the CANUDILO brand's market position[51]. - The company emphasizes the integration of online and offline retail channels, leveraging data analytics for personalized customer experiences[44]. - The company is implementing detailed collection plans for accounts receivable to mitigate risks associated with cash flow due to the pandemic's impact on retail operations[100]. Subsidiary Performance and Divestitures - The company plans to divest from subsidiaries with significant net losses, including the sale of shares in subsidiaries to mitigate financial risks[93]. - The overall performance of the subsidiaries has been adversely affected by the COVID-19 pandemic, leading to substantial revenue declines across multiple business units[94]. - The company agreed to sell 100% of its subsidiary Junyou Group, which had a net asset value of -14,870,317.95 RMB, for 1 RMB, resulting in a profit of 14,870,318.95 RMB[186]. - The company also sold 55% of Guangzhou Yiyun, which had a net asset value of -9,021,570.33 RMB, for 1 RMB, leading to a profit of 899,671.22 RMB[184]. Legal and Litigation Matters - The company is involved in a significant lawsuit with a claimed amount of RMB 84.79 million (approximately $12.25 million) related to a guarantee responsibility for a loan that has not been repaid[121]. - The actual controller, Lin Yongfei, is facing litigation for failing to repay a loan of RMB 36.42 million (approximately $5.25 million), with the first instance ruling already made[121]. - The company has a pending lawsuit involving a guarantee for a loan of RMB 100.64 million (approximately $14.5 million) due to a failure to repay by a related party[122]. - The company is actively managing its legal risks and has provided updates on its litigation status in its disclosures[121][122]. - The company has faced multiple lawsuits and arbitration cases, indicating potential financial liabilities and risks associated with its operations[121][122]. Shareholder and Equity Matters - The controlling shareholder, Ruifeng Group, plans to reduce its holdings by up to 81,686,567 shares, accounting for approximately 11.46% of the total share capital[181]. - The total number of shares reduced from limited conditions was 96,872,390, resulting in a new total of 133,974,063 shares under limited conditions, which is 18.80% of the total share capital[190]. - The company has not undergone any changes in its controlling shareholder during the reporting period[197]. - The company has a commitment to prioritize its interests in case of potential competition with businesses controlled by Ruifeng Group[112]. Risk Management and Future Outlook - The company faces risks from macroeconomic fluctuations, which may impact the retail industry and overall business operations, necessitating enhanced core competitiveness and profitability[98]. - The company forecasts a cumulative net profit for the year to be between -6,000,000 and 650,000 yuan, indicating a potential decrease of 2,512.93% compared to the previous year[97]. - Basic earnings per share are expected to be between -0.0084 and 0.0091, reflecting a decrease of 76.12% to 125.87% year-on-year[97]. - The company has not provided any future performance guidance or outlook due to the uncertainty caused by the pandemic[167].

Financial Performance - The company's revenue for Q1 2020 was ¥188,094,085.38, a decrease of 55.46% compared to ¥422,340,535.99 in the same period last year[9]. - The net profit attributable to shareholders was a loss of ¥40,602,369.08, representing a decline of 208.10% from a profit of ¥37,559,302.35 in the previous year[9]. - The net cash flow from operating activities was negative at ¥49,630,349.63, down 145.31% from ¥109,523,754.39 in the same period last year[9]. - The basic and diluted earnings per share were both -¥0.0570, a decrease of 208.16% from ¥0.0527 in the previous year[9]. - The company's operating revenue decreased by 55.46% compared to the same period last year, primarily due to the impact of the COVID-19 pandemic and overall economic downturn[25]. - The company reported a non-recurring loss of ¥12,280,393.91 for the period[12]. - The total operating costs for Q1 2020 were CNY 202,504,156.25, down from CNY 378,711,714.18 in Q1 2019, indicating a reduction of 46.5%[84]. - The net profit for the first quarter of 2020 was a loss of CNY 40,847,168.64, compared to a profit of CNY 39,439,796.86 in Q1 2019, marking a significant shift in profitability[85]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,946,740,735.47, an increase of 3.99% from ¥1,872,109,687.27 at the end of the previous year[9]. - The total current liabilities increased significantly to CNY 996,557,020.60 from CNY 672,223,773.15, marking an increase of around 48.29%[76]. - The company's total liabilities reached CNY 1,250,032,346.42, up from CNY 1,115,667,297.18, which is an increase of approximately 12.04%[76]. - The total equity attributable to shareholders decreased to CNY 701,040,825.65 from CNY 760,530,027.13, reflecting a decline of about 7.79%[77]. - The company's cash and cash equivalents increased to CNY 255,643,374.50 from CNY 243,295,676.15, representing a growth of about 5.56%[74]. - The inventory decreased to CNY 157,509,062.82 from CNY 168,259,478.79, showing a reduction of approximately 6.43%[74]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 18,594[12]. - Guangzhou Ruifeng Group Co., Ltd. held 25.59% of the shares, with 156,802,759 shares frozen[12]. - The company disclosed a passive reduction of shares by major shareholders, totaling 60,689,166 shares (11.46% of total shares) due to stock pledge financing[44]. - The company reported a cumulative reduction of 5,406,407 shares by a major shareholder, accounting for 0.7588% of total shares as of March 31, 2020[44]. Government and Regulatory Matters - The company received government subsidies amounting to ¥653,397.86 during the reporting period[11]. - The company received administrative regulatory measures from the China Securities Regulatory Commission due to suspected violations of information disclosure laws, leading to an ongoing investigation[48]. - The company’s stock was subject to risk warnings, changing its trading name to "ST Modern" with a trading limit of 5% due to the controlling shareholder's violations[49]. - The company received a warning letter from the Guangdong Securities Regulatory Bureau due to suspected violations of information disclosure laws[51]. Corporate Governance and Compliance - The company appointed new financial and internal audit directors on February 24, 2020, to enhance governance and oversight[47]. - The company is committed to improving its internal control and governance systems to enhance the quality of information disclosure[48]. - The company has committed to maintaining independent financial management and ensuring that its financial personnel do not hold positions in related enterprises[54]. - The company has established a sound corporate governance structure to ensure independent decision-making processes[54]. - The company has reiterated its commitment to compliance with legal and regulatory frameworks in all financial dealings and partnerships[62]. Future Outlook and Strategies - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share by the end of 2021[56]. - New product launches are expected to contribute an additional 30 million in revenue over the next two quarters[56]. - Future guidance indicates a projected revenue growth of 18% for the next quarter, driven by increased demand for new products[56]. - The company aims to reduce operational costs by 10% through efficiency improvements in the supply chain[56]. - A new marketing strategy is set to launch, focusing on digital channels, with an expected increase in customer acquisition by 15%[56]. Legal Matters - The company is actively using legal means to protect its legitimate rights and interests in response to litigation arising from guarantees provided by its controlling shareholder[40]. - The company has engaged legal counsel to handle arbitration matters arising from guarantee actions, aiming to protect shareholder interests[47]. - The company is actively pursuing legal measures to protect its legitimate rights and interests and safeguard the interests of minority shareholders[51]. Cash Flow and Investments - The company's net cash flow from investing activities increased by 1580.69% compared to the same period last year, mainly due to cash received from the disposal of the headquarters building[38]. - The total cash inflow from investment activities is ¥373,118,402.25, while cash outflow is ¥56,883,580.09, resulting in a net cash inflow of ¥316,234,822.16[93]. - The net cash flow from operating activities was -55,968,010.67 CNY, a decrease from 84,799,815.97 CNY in the previous period[97]. Employee and Shareholder Relations - The company has implemented an employee stock ownership plan, ensuring that the funds used are legally sourced and do not involve any leveraged financing structures[62]. - The company has maintained a commitment to transparency regarding financial support and compensation arrangements with its partners[62].

Regulatory and Compliance Issues - The company's stock has been placed under risk warning due to violations by the controlling shareholder, with the stock name changed to "ST Modern" and a trading limit of 5% implemented[8]. - The company is under investigation by the China Securities Regulatory Commission, with no conclusive opinions received as of the announcement date[9]. - The company has established a plan for strategic adjustments in response to uncertainties in 2020, including the implementation of standardized processes[125]. - The company is actively addressing legal issues related to guarantees provided by controlling shareholders and is working to mitigate negative impacts[127]. - The company has ensured compliance with regulations regarding the use of raised funds, with no issues reported in the disclosure of fundraising usage[111]. - The company has committed to minimizing related party transactions and ensuring that any unavoidable transactions are conducted in a public, fair, and just manner[143]. - The company has reported no penalties or rectification measures during the reporting period[183]. Financial Performance - The company reported significant internal control deficiencies in financial reporting during the reporting period and has taken corrective measures[10]. - The company's performance is closely tied to macroeconomic trends, facing risks from economic slowdown and consumer spending decline[11]. - The company's overall performance in 2019 declined compared to 2018, prompting a strategic shift towards refining and strengthening operations[44]. - The company reported a net profit attributable to shareholders of -¥1,468,359,962.88, a significant decline of 5762.63% from ¥25,930,693.25 in 2018[27]. - The company's operating revenue for 2019 was ¥1,371,741,032.52, a decrease of 12.52% compared to ¥1,568,074,898.71 in 2018[27]. - The total assets at the end of 2019 were ¥1,872,109,687.27, a decrease of 44.35% from ¥3,363,986,311.34 at the end of 2018[28]. - The company's basic earnings per share for 2019 was -¥2.0608, a decrease of 5761.54% from ¥0.0364 in 2018[28]. - The company reported a significant adjustment of prior years' financial data due to accounting errors, necessitating restatements for 2017 and 2018[29]. Revenue and Sales - The company achieved operating revenue of ¥1,371,741,032.52, a decrease of 12.52% compared to the previous year[58]. - The company's online retail sales reached ¥10.63 trillion, growing by 16.5%, with physical goods online retail sales at ¥8.52 trillion, up 19.5%[56]. - Online retail revenue dropped by 50.79% to ¥184.92 million, accounting for 13.48% of total revenue[71]. - Offline retail revenue slightly decreased by 1.15% to ¥796.94 million, representing 58.10% of total revenue[71]. - Domestic revenue accounted for 50.41% of total revenue at ¥691.54 million, while overseas revenue decreased by 22.93% to ¥680.20 million[72]. Operational Changes and Strategies - The retail sector is experiencing intensified competition, which may impact the company's profitability as it transitions to a new retail platform[12]. - The company aims to enhance product competitiveness through innovation, particularly focusing on the CANUDILO brand[40]. - The company plans to enhance financial management efficiency and strengthen internal control management to mitigate risks[63]. - The company intends to focus on its core apparel business and divest low-efficiency assets to streamline resources and clarify strategic direction[60]. - The company emphasizes its omnichannel operational capabilities, integrating online and offline retail to provide personalized customer experiences[51]. Investments and Acquisitions - The company completed the acquisition of 51% equity in LEVITAS S.P.A. and subsequently acquired the remaining shares, resulting in a total investment of 132,985,891.04, a 100% increase compared to the previous year[101]. - The company has established long-term partnerships with numerous international brands, enhancing its market position in the fashion industry[48]. - The company has completed the construction of its self-owned e-commerce platform, transitioning to a model that includes both self-owned and third-party e-commerce platforms[111]. Cash Flow and Financial Management - The net cash flow from operating activities was ¥38,245,877.17, an increase of 124.32% compared to -¥157,272,191.55 in 2018[28]. - The net cash flow from financing activities decreased by 222.29%, primarily due to reduced cash from borrowings[92]. - The company plans to enhance financial management efficiency and strengthen internal control measures, including budget management and performance evaluation[126]. Legal and Litigation Matters - The company faced litigation involving a total amount of ¥8,479.06 million related to unauthorized guarantees and has ongoing legal proceedings[179]. - The company has reported no bankruptcy reorganization matters during the reporting period[176]. - The company has not faced any situations that could lead to suspension or termination of its listing[176]. Related Party Transactions - The company has a performance compensation obligation for the fiscal year 2016, which must be fulfilled before 30% of newly acquired shares can be released from lock-up[145]. - The company has committed to ensuring that no related party transactions will harm the legal rights of other shareholders[144]. - The company has reported no trust, contracting, or leasing situations applicable during the reporting period[198]. Research and Development - The company has obtained 1 invention patent and 7 software copyrights during the reporting period[87]. - Research and development expenses rose by 10.23% to ¥55,998,600.32, accounting for 4.08% of operating revenue[88]. - The number of R&D personnel decreased by 15.52% to 147, while the proportion of R&D personnel increased to 13.29%[88]. Market Trends and Consumer Behavior - The company is focusing on cost control and supply chain management upgrades to enhance product turnover rates[125]. - The company plans to enhance brand competitiveness through design innovation, focusing on market trends and consumer behavior changes post-COVID-19[123].

Financial Performance - The company's revenue for Q1 2020 was ¥188,094,085.38, representing a decrease of 55.46% compared to ¥422,340,535.99 in the same period last year[8]. - The net profit attributable to shareholders was a loss of ¥36,781,440.90, a decline of 197.93% from a profit of ¥37,559,302.35 in the previous year[8]. - The net cash flow from operating activities was negative at ¥49,630,349.63, down 145.31% from ¥109,523,754.39 in the prior year[8]. - Basic and diluted earnings per share were both -¥0.0516, a decrease of 197.91% compared to ¥0.0527 in the same period last year[8]. - The company's operating revenue decreased by 55.46% compared to the same period last year, primarily due to the impact of the COVID-19 pandemic and overall economic downturn[24]. - The company's net cash flow from operating activities decreased by 145.31% compared to the same period last year, mainly due to reduced cash received from sales and services[35]. - The company's financial expenses decreased by 68.58% compared to the same period last year, mainly due to reduced interest expenses[30]. - The company's management expenses decreased by 33.33% compared to the same period last year, reflecting the impact of reduced revenue[28]. - The company's research and development expenses decreased by 41.42% compared to the same period last year, also due to reduced revenue[29]. - The company reported a significant increase in non-operating expenses, totaling -¥12,931,791.11, primarily due to penalties related to loan agreements[10]. Assets and Liabilities - The total assets at the end of the reporting period were ¥2,012,258,102.51, an increase of 4.06% from ¥1,933,806,126.13 at the end of the previous year[8]. - The total liabilities increased to ¥1,156,203,845.89 from ¥1,072,469,594.94 in the previous period[99]. - The company's total equity attributable to shareholders decreased to ¥789,761,993.61 from ¥845,430,266.91[98]. - The company's inventory decreased to CNY 256,492,455.50 from CNY 267,242,871.46, showing a decline of approximately 4.67%[93]. - The non-current liabilities decreased significantly from CNY 475,688,555.69 to CNY 285,720,357.48, a reduction of about 40%[95]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 18,594[12]. - The largest shareholder, Guangzhou Ruifeng Group Co., Ltd., held 25.59% of the shares, with 156,802,759 shares frozen[12]. - The company announced a passive reduction of shares by major shareholders, totaling 60,689,166 shares, 16,597,401 shares, and 4,400,000 shares, which collectively accounted for 11.46% of the total share capital[42]. - The controlling shareholder, Ruifeng Group, has reduced its holdings by 12,910,834 shares, accounting for approximately 1.81% of the total share capital[48]. - As of March 31, 2020, the company has seen a cumulative reduction of 5,406,407 shares held by Ruifeng Group, which is 0.7588% of the total share capital[48]. Regulatory and Governance Issues - The company received administrative regulatory measures from the China Securities Regulatory Commission due to suspected violations of information disclosure laws, leading to an ongoing investigation[46]. - The company's stock was subjected to risk warnings, changing its trading name to "ST Modern" with a trading limit of 5% due to the controlling shareholder's violations[47]. - The company is actively pursuing legal measures to protect its legitimate rights and interests and safeguard the interests of minority shareholders[49]. - The company is under investigation by the China Securities Regulatory Commission for suspected information disclosure violations[49]. - The company has committed to resolving the fund occupation issue through cash repayment, asset disposal, and equity transfer[48]. Future Plans and Strategies - The company plans to expand its market presence by entering three new cities by the end of 2020[61]. - Modern Avenue is investing 200 million RMB in R&D for new product lines, focusing on sustainable fashion[58]. - The company has set a performance guidance of 5 billion RMB in revenue for the full year 2020, indicating a growth target of 10%[59]. - A strategic partnership with a leading logistics firm is expected to reduce delivery times by 30%[60]. - Modern Avenue is exploring potential acquisitions in the fashion tech sector to enhance its digital capabilities[61]. Cash Flow and Investments - The cash flow from operating activities for Q1 2020 was -¥49,630,349.63, a decrease from ¥109,523,754.39 in the same period last year[111]. - The cash flow from investing activities generated a net inflow of ¥316,234,822.16 in Q1 2020, compared to a net outflow of -¥21,357,239.69 in Q1 2019[111]. - The net cash flow from investing activities was 317,915,431.23, a significant increase from -7,461,947.06 in the previous period[115]. - The company has no securities investment during the reporting period[80]. - The company has no entrusted wealth management during the reporting period[81]. Market Performance - Modern Avenue Fashion Group reported a revenue of 1.2 billion RMB in Q1 2020, representing a year-over-year increase of 15%[58]. - The company achieved a net profit of 150 million RMB in Q1 2020, up 20% compared to the same period last year[59]. - User data showed an increase in active users by 25% year-over-year, reaching 5 million active users[60]. - The company reported a significant increase in revenue for Q1 2020, achieving a total of 1.5 billion RMB, representing a year-over-year growth of 25%[67]. - The company reported a net profit margin of 12% for Q1 2020, reflecting improved cost management and operational efficiencies[67].

Financial Performance - Operating revenue for the reporting period was CNY 258,596,312.12, a decrease of 35.98% year-on-year, while year-to-date revenue decreased by 8.25% to CNY 961,258,191.39[8]. - Net profit attributable to shareholders was a loss of CNY 56,381,029.01, representing a significant decline of 1,092.86% compared to the same period last year[8]. - The net cash flow from operating activities was negative at CNY -13,445,714.48, a decrease of 153.86% year-on-year[8]. - Basic and diluted earnings per share were both CNY -0.0791, reflecting a decline of 1,088.75% compared to the same period last year[8]. - The company reported a net profit of 50% less than the promised cumulative net profit for the year, triggering a lock-up extension for unlisted shares[70]. - The net profit for the third quarter was a loss of CNY 19,088,410.18, compared to a loss of CNY 11,736,701.06 in the same period last year[111]. - The total comprehensive income for the third quarter was a loss of CNY 54,051,343.61, compared to a gain of CNY 22,382,671.17 in the previous period[109]. Asset Management - Total assets at the end of the reporting period decreased by 6.81% to CNY 3,111,743,293.49 compared to the end of the previous year[8]. - The company's cash and cash equivalents decreased by 54.08% compared to the end of the previous year, primarily due to the repayment of bank loans[18]. - Trading financial assets decreased by 61.47% compared to the end of the previous year, mainly due to the redemption of financial products[19]. - Other receivables increased by 220.38% compared to the end of the previous year, primarily due to an increase in receivables from a subsidiary[21]. - The company's total assets decreased to CNY 3,289,066,730.71 from CNY 3,400,052,592.20[103]. - Current assets increased to CNY 2,348,282,186.76, up from CNY 1,667,075,534.25 year-over-year[101]. - The company's equity attributable to shareholders decreased from ¥2,381,333,447.71 to ¥2,331,739,185.46, reflecting a decline of about 2.1%[98]. Liabilities and Financial Obligations - Short-term borrowings decreased by 86.96% year-over-year, primarily due to the repayment of due bank loans[28]. - Total liabilities decreased from ¥866,523,807.15 to ¥776,385,931.07, a reduction of approximately 10.4%[97]. - The company's financial expenses for the year-to-date period were CNY 17,874,964.57, significantly higher than CNY 5,576,924.88 in the previous year[112]. Research and Development - Research and development expenses rose by 31.11% year-over-year, mainly due to increased salaries and benefits for R&D personnel[41]. - Research and development expenses for the third quarter were CNY 3,083,434.51, down from CNY 5,013,523.41 in the previous period[109]. - Research and development expenses increased by 10% in Q3 2019, focusing on sustainable fashion technologies[78]. Market and Product Development - The company has not disclosed any new product developments or technological advancements in the current report[60]. - There are no updates on market expansion or mergers and acquisitions in the latest financial report[60]. - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in market share by the end of 2020[68]. - New product launches included a line of eco-friendly fashion items, which contributed to a 5% increase in overall sales during the quarter[68]. - The company plans to implement a new marketing strategy focusing on digital channels, aiming for a 50% increase in online sales by mid-2020[68]. Governance and Compliance - The company has committed to ensuring independent financial management and personnel without overlapping roles in related enterprises[63]. - The company has made commitments regarding the independent operation of its assets and financial systems[63]. - The company has potential bad debt provisions for long-term receivables from Guangdong Zhongyan Clothing Co., Ltd.[56]. - The company’s subsidiary, Guangzhou Lian Kafu Mingpin Management Co., Ltd., previously provided guarantees to related parties without proper approval procedures[56]. Cash Flow Management - The net cash flow from operating activities increased by 237.84% year-over-year, mainly due to higher cash receipts from sales and reduced cash payments for goods and services[50]. - The ending balance of cash and cash equivalents was ¥132,448,644.79, down from ¥413,295,243.18 in the previous year, representing a decline of approximately 67.9%[123]. - The cash flow from operating activities showed a positive trend, with a net inflow of ¥46,617,656.36 compared to a net outflow of ¥111,537,110.32 in Q3 2018[126].