BUSEN(SZ:002569)2024-09-06 12:15Financial Performance - The company's operating revenue for the first half of 2022 was ¥79,764,056.96, a decrease of 39.52% compared to ¥131,879,636.84 in the same period last year[12]. - The net profit attributable to shareholders of the listed company was -¥33,119,267.37, representing a decline of 189.78% from ¥36,888,811.23 in the previous year[12]. - The basic earnings per share were -¥0.23, down 188.46% from ¥0.26 in the same period last year[12]. - The total assets at the end of the reporting period were ¥342,970,400.71, an 8.88% decrease from ¥376,383,470.56 at the end of the previous year[12]. - The net assets attributable to shareholders of the listed company were ¥217,054,787.13, down 11.31% from ¥244,738,893.23 at the end of the previous year[12]. - The weighted average return on net assets was -14.13%, a decrease of 31.04% compared to 16.91% in the previous year[12]. - The net cash flow from operating activities was -¥30,175,870.74, a decline of 98.71% from -¥15,186,021.04 in the same period last year[12]. - The company reported a total non-recurring loss of ¥2,943,396.63, which includes losses from fixed asset disposal and subsidiary losses[16]. - The company reported a net profit loss of approximately CNY 7.83 million from Hangzhou Chuangzhan Busen Clothing Co., with total revenue of CNY 12.71 million[53]. - The subsidiary Zhujishi Busen Clothing Co. recorded a net profit loss of about CNY 7.80 million, with total revenue of CNY 17.04 million[53]. - The company reported a net loss of CNY 327,531,049.29 as of June 30, 2022, compared to a loss of CNY 294,411,781.92 at the beginning of the year[133]. Revenue Breakdown - Revenue from the apparel manufacturing sector was CNY 58,989,968.95, accounting for 74.00% of total revenue, down 51.54% year-on-year[27]. - Revenue from the information services sector increased by 220.62% to CNY 14,800,824.29, representing 19.00% of total revenue[27]. - Domestic sales accounted for 90.95% of total revenue, amounting to CNY 72,547,748.63, a decrease of 42.48% year-on-year[27]. - Online sales revenue decreased by 43% year-on-year to approximately CNY 327.61 million, while gross margin increased by 55% due to the new bidding business with minimal operating costs[35]. - Direct sales revenue increased by 71% year-on-year to approximately CNY 1.28 billion, with a gross margin of 54%, attributed to the recovery of previously closed stores[35]. - Franchise sales revenue decreased by 56% year-on-year to approximately CNY 1.30 billion, with a gross margin of 39%, primarily due to poor performance of franchisees amid the pandemic[34]. - Group purchasing sales revenue decreased by 57% year-on-year to approximately CNY 233.40 million, with a gross margin of 31%[34]. Operational Strategy - The company continues to focus on the design, production, and sales of men's business casual clothing, enhancing product quality and variety to meet consumer demand[16]. - The company aims to optimize its sales model by expanding direct sales and supporting well-performing franchisees, while also actively developing new retail business[18][21]. - The company has established a stable design and research team, emphasizing independent product development and participation in fashion shows to align with market trends[16]. - The company has introduced an information service division to provide merchant expansion agency services, aiming to create new profit growth points[16]. - The overall outlook for the apparel industry remains positive, driven by increasing disposable income and a growing trend towards brand consumption[16]. Risks and Challenges - The company faces risks including macroeconomic risks, operational risks, policy risks, and management risks[2]. - The company faces significant market competition risks due to a saturated domestic menswear market, leading to increased operational costs[55]. - The company is actively expanding its market presence and product lines while managing rising operational costs due to labor and talent demands[57]. Financial Management - The company plans not to distribute cash dividends or issue bonus shares[2]. - The company aims to enhance its bank credit scale and seek refinancing opportunities to address increasing capital needs[58]. - The company has committed to continuous improvement in financial reporting and internal control systems to protect shareholder interests[102]. - The company has implemented corrective measures to enhance the accuracy of financial forecasts and improve information disclosure practices, including training for financial personnel and strengthening internal audits[102]. Legal and Compliance Issues - The company is involved in a lawsuit regarding a share transfer dispute, claiming RMB 73.2 million in unpaid transaction fees[88]. - A total of RMB 6.75 million was ordered to be compensated to a plaintiff in a housing sale contract dispute, which has been executed[90]. - The company has settled a securities false statement liability dispute by paying RMB 2 million before June 30, 2022[90]. - The company received a warning and a fine of RMB 50,000 from the China Securities Regulatory Commission for failing to disclose information regarding equity transfers[99]. - The company has been penalized with a fine of RMB 1,000,000 by the People's Bank of China for serious violations related to transaction traceability and outsourcing of merchant qualification audits[100]. Shareholder Information - The total number of shares is 144,010,000, with 100% ownership distribution[117]. - The largest shareholder, 恒正科贸有限公司, holds 15.55% of the shares, amounting to 21,333,760 shares[122]. - The second-largest shareholder, 上海睿鸷资产管理合伙企业, holds 16,720,000 shares, representing 11.61% of the total[123]. - The total number of ordinary shareholders at the end of the reporting period was 4,979, with no shareholders holding more than 5%[120]. Corporate Governance - The company guarantees the independence of its management and financial systems, ensuring no overlap with the controlling shareholder's other businesses[75]. - The company has established an independent financial department and accounting system to maintain financial independence[75]. - The company is committed to protecting the legal rights of minority shareholders and ensuring equal treatment in shareholder rights[70]. - The company has committed to reducing and regulating related party transactions, ensuring that transactions are fair and comply with legal regulations[78]. Accounting Policies - The financial statements are prepared based on the assumption of ongoing operations, in accordance with the accounting standards issued by the Ministry of Finance[161]. - The company has adopted the accrual basis of accounting, ensuring that transactions are recorded when they occur, rather than when cash is received or paid[167]. - The consolidated financial statements reflect the overall financial position, operating results, and cash flows of the entire corporate group[172].