摩登大道时尚集团股份有限公司 2022 年第一季度报告 1 摩登大道时尚集团股份有限公司 2022 年第一季度报告 证券代码：002656 证券简称：ST 摩登 公告编号：2022-041 摩登大道时尚集团股份有限公司 2022 年第一季度报告 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。 重要内容提示: 1.公司 2021 年度财务报表被中审众环会计师事务所（特殊普通合伙）出具保留意见审计报告，截至本报 告期末，相关保留意见事项尚未消除，请投资者注意风险。 除上述事项外，董事会、监事会及董事、监事、高级管理人员保证季度报告的真实、准确、完整，不存在 虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 2.公司负责人、主管会计工作负责人及会计机构负责人(会计主管人员)声明：保证季度报告中财务信息的 真实、准确、完整。 3.第一季度报告是否经过审计 □ 是 √ 否 一、主要财务数据 (一)主要会计数据和财务指标 公司是否需追溯调整或重述以前年度会计数据 □ 是 √ 否 | | 本报告期 | 上年同期 | 本报告期比上年同期增减 | | --- | - ...

Financial Performance - The company reported a significant decline in revenue, with total revenue for 2021 amounting to RMB 1.2 billion, a decrease of 15% compared to the previous year[23]. - The net loss for the year was RMB 200 million, representing a loss margin of approximately 16.67%[23]. - The company's operating revenue for 2021 was ¥385,225,444.30, a decrease of 24.75% compared to ¥511,949,377.31 in 2020[28]. - The net profit attributable to shareholders was -¥20,706,277.58 in 2021, representing a decline of 382.97% from a profit of ¥7,317,530.32 in 2020[28]. - The basic earnings per share for 2021 was -¥0.0291, down 382.52% from ¥0.0103 in 2020[28]. - The company reported a significant increase in the net profit excluding non-recurring items, which improved by 55.46% to -¥106,207,171.83 in 2021 from -¥238,443,767.09 in 2020[28]. - The company reported a significant increase in non-operating income, with an amount of ¥89.90 million, representing a 214.61% increase compared to the previous year[110]. - The company’s total revenue for 2021 was 3.61 billion yuan, with a net profit of -2.77 million yuan, indicating a significant decline in profitability compared to previous years[127]. User Engagement and Market Strategy - User data indicated a drop in active users to 1.5 million, down 20% year-over-year, reflecting challenges in customer retention[23]. - The company plans to enhance its product offerings, focusing on the launch of three new fashion lines in 2022, aiming for a 10% increase in market share[23]. - Future guidance suggests a revenue target of RMB 1.5 billion for 2022, representing a growth of 25% from 2021[23]. - The company is actively pursuing market expansion strategies, including entering two new regional markets in Southeast Asia by the end of 2022[23]. - The company has expanded its online presence by launching a flagship store on JD.com, in addition to existing sales on VIP.com and Tmall, adapting to changing consumer habits[55]. - The company aims to enhance its product innovation and brand recognition through continuous research and development efforts[57]. Operational Challenges - The company faced operational challenges due to the pandemic, including warehouse closures that impacted online sales and overall business performance[60]. - The company reported a significant inventory backlog due to unsatisfactory sales performance in the second half of 2021, leading to asset impairment provisions[70]. - The company has faced challenges with its subsidiary, Wuhan Yueran Xindong Network Technology Co., Ltd., which has seen significant operational decline and is undergoing management changes[48]. Investment and Financial Management - Research and development investments increased by 30% in 2021, totaling RMB 50 million, to support innovation in product design and technology[23]. - The company has decided not to distribute cash dividends for the year, opting to reinvest profits into business development[14]. - The total cash outflow from investment activities surged by 258.66% to ¥246.31 million in 2021, compared to ¥68.67 million in 2020[108]. - The company invested ¥240 million in Nanjing Jiayuan New Energy Co., acquiring a 16.7% stake, but faced challenges in obtaining financial disclosures from the investee[76]. Corporate Governance and Management - The company has established a governance structure including a board of directors and four specialized committees to ensure effective operation[191]. - The company emphasizes employee rights and has implemented a fair compensation and performance evaluation system[192]. - The company has committed to fulfilling various promises related to operational qualifications and compliance with regulations[196]. - The company has established independent financial operations, with a dedicated finance department and compliance with accounting standards for listed companies[151]. - The company has implemented various marketing strategies to enhance brand exposure and customer engagement, including targeted consumer analysis and VIP management strategies[104]. Subsidiary Performance - The subsidiary Guangzhou Lion Dan Trading Co., Ltd. reported a net profit of CNY 5,823,398.84, contributing over 10% to the company's net profit[126]. - The subsidiary Carducci Fashion Holdings (Hong Kong) Limited recorded a net loss of CNY 37,373,704.88, indicating challenges in the retail sector[126]. - The subsidiary Wuhan Yueran Network Technology Co., Ltd. saw a revenue drop of 94.16% to 7.52 million yuan, with a net loss of 8.14 million yuan, although this was an improvement of 46.45% from the previous year[134]. Employee Management and Training - The total number of employees at the end of the reporting period was 489, with 49 in the parent company and 440 in major subsidiaries[173]. - The training program for 2021 included seven sessions for new employees, covering company culture and operational knowledge, with a total of 84 participants[176]. - The company conducted two large-scale training sessions in 2021, covering approximately 240 employees, aimed at enhancing product knowledge and sales skills[177]. Future Outlook - The company plans to continue focusing on the CANUDILO brand as its core business engine for strategic upgrades and comprehensive development in 2022[136]. - The company aims to leverage international brand management resources and operational advantages for future growth[136]. - The company will focus on the post-pandemic lifestyle of elite men, enhancing product competitiveness through data collection and analysis for inventory management and marketing strategies[137].

Financial Performance - The company's revenue for Q3 2021 was ¥82,634,123.13, representing a 15.19% increase compared to the same period last year[4]. - Net profit attributable to shareholders for Q3 2021 was ¥35,040,531.97, a significant increase of 223.80% year-over-year[4]. - Basic earnings per share for Q3 2021 were ¥0.0492, up 223.93% from the same period last year[4]. - The net profit from continuing operations for Q3 2021 was ¥14,610,476.38, compared to ¥7,110,089.61 in the same period last year, representing a 106.4% increase[53]. - The total comprehensive income for the period was ¥42,727,818.09, compared to a loss of ¥16,796,441.59 in the same quarter last year[53]. - Basic and diluted earnings per share increased to ¥0.0205 from ¥0.0100, reflecting a 105% growth[53]. Cash Flow - The net cash flow from operating activities for the year-to-date period reached ¥81,449,697.89, showing a 124.58% increase compared to the previous year[4]. - The company reported a net cash flow from operating activities of ¥81,449,697.89, a turnaround from a negative cash flow of ¥-331,330,058.53 in the previous year[54]. - Net cash flow from investing activities decreased by 134.89% year-on-year, primarily due to the previous year's sale of the headquarters building[24]. - Investment activities resulted in a net cash outflow of ¥241,181,313.38, a significant decrease from a net inflow of ¥691,257,995.06 in the previous year[56]. - Net cash flow from financing activities increased by 101.73% year-on-year, mainly due to the repayment of bank loans for the construction of the headquarters building in the previous year[25]. Assets and Liabilities - Total assets at the end of Q3 2021 were ¥1,192,437,242.87, a slight decrease of 0.58% from the end of the previous year[4]. - Total assets as of September 30, 2021, were CNY 1,192,437,242.87, slightly down from CNY 1,199,407,622.00 at the end of 2020[49]. - Total liabilities decreased to CNY 429,689,934.66 from CNY 439,879,661.41, a reduction of 2.7%[50]. - The total liabilities increased to ¥519,914,048.07, marking an increase of ¥80,034,386.66[60]. - Non-current liabilities rose to ¥239,978,514.98, with an increase of ¥80,034,386.66 attributed to lease liabilities[60]. Operating Costs and Expenses - Operating costs for the year-to-date period decreased by 42.81% to ¥118,279,332.59, primarily due to business stagnation in subsidiaries[10][11]. - Total operating costs decreased to ¥306,361,141.88 from ¥431,695,230.34, a reduction of approximately 29%[52]. - R&D expenses for the year-to-date period decreased by 66.51% to ¥6,230,157.84, attributed to the same business stagnation[10][13]. - Research and development expenses significantly decreased to ¥6,230,157.84 from ¥18,604,197.33, a decline of about 66.5%[52]. - Operating expenses decreased by 48.71% year-on-year, mainly due to the absence of penalties from early loan repayments in the previous year[20]. Other Income and Expenses - Other income for the year-to-date period surged by 5573.55% to ¥62,739,705.01, reflecting significant gains from litigation settlements[10]. - Financial expenses increased by 212.15% to ¥2,695,344.83, mainly due to the implementation of new leasing standards[10][14]. - Income tax expenses increased by 370.36% year-on-year, primarily due to the payment of prior years' corporate income tax[21]. - The company incurred financial expenses of ¥2,695,344.83, compared to a financial income of ¥-2,403,378.52 in the same period last year[52]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 20,115[26]. - The controlling shareholder has occupied non-operating funds of RMB 249.13 million, accounting for 31.85% of the latest audited net assets as of September 30, 2021[41]. - The company disclosed a potential passive reduction of 490,833 shares by the controlling shareholder, accounting for 0.0689% of the total share capital[42]. Subsidiary Operations - The company sold 51% of its subsidiary Hangzhou Lianka Hengfu Brand Management Co., Ltd. to Meng Jianping, resulting in a financial assistance of RMB 63 million, with a total repayment of RMB 27 million received by September 30, 2021[32]. - The company transferred 100% of the subsidiary Junyou Group and 55% of Guangzhou Yiyun to Cheng Ailin, with total debts of RMB 7 million and RMB 11.2 million respectively[33]. - As of July 30, 2021, the debtors Guangzhou Yiyun and Junyou Group have repaid all financial assistance amounts[34]. - The subsidiary Wuhan Yueran Xindong Network Technology Co., Ltd. has seen its related business stagnate since late April 2021, leading to a decision to downsize office space to reduce operational costs[43]. Adjustments and Standards - The company implemented a new leasing standard starting from January 1, 2021, resulting in a reduction of retained earnings by ¥13,306,957.32[62]. - As of January 1, 2021, total assets increased to ¥1,266,135,051.34, reflecting an adjustment of ¥66,727,429.34 due to the new leasing standard[61]. - The company reported no adjustments in current liabilities, which totaled ¥279,935,533.09[60]. - The third quarter report for 2021 was not audited[63]. - The company did not adjust comparative information for prior periods due to the new leasing standard[62].

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].