Langsha(SH:600137)2016-05-24 16:00Financial Performance - In 2015, the company reported a net profit loss of ¥20,683,148.98, marking a significant decline compared to a net profit of ¥1,958,679.83 in 2014, representing a decrease of 1,155.97%[2]. - The company's operating revenue for 2015 was ¥205,195,869.98, down 37.94% from ¥330,657,259.24 in 2014[18]. - The basic earnings per share for 2015 was -¥0.213, a decrease of 1,165.00% compared to ¥0.020 in 2014[19]. - The company reported a net profit attributable to shareholders of -22,133,990.93 RMB in Q4 2015, indicating a substantial loss for the period[22]. - The company reported a significant decline in revenue for the Langsha brand, with a 36.46% decrease in operating income to ¥200.70 million[75]. - The company reported a net loss of 2,023.55 million RMB for its wholly-owned subsidiary in 2015[89]. - The company reported a significant decline in export revenue, which was 2.49 million RMB, down 82.96% year-over-year[52]. - The company reported a total of 20,319.68 million RMB in total revenue, a decrease of 38.52% compared to the previous year[81]. Assets and Liabilities - The total assets of the company decreased by 9.11% to ¥545,048,788.72 at the end of 2015, down from ¥599,667,307.73 in 2014[18]. - The net asset attributable to shareholders decreased by 4.49% to ¥440,331,753.83 at the end of 2015, compared to ¥461,014,902.81 at the end of 2014[18]. - Total current assets decreased from ¥431,917,097.86 to ¥392,758,955.14, a decline of approximately 9.05%[187]. - Total current liabilities decreased from ¥135,634,904.92 to ¥102,209,534.89, a decrease of approximately 24.66%[188]. - Total liabilities decreased from ¥138,652,404.92 to ¥104,717,034.89, a decrease of approximately 24.48%[188]. - Cash and cash equivalents increased from ¥216,159,263.56 to ¥235,272,410.45, an increase of approximately 8.67%[187]. Cash Flow - The company reported a net cash flow from operating activities of ¥18,225,790.70, which is a decline of 68.81% from ¥58,428,033.81 in 2014[18]. - The net cash flow from investing activities was ¥23,410.00, a turnaround from a negative cash flow of -¥1,671,582.66 in the previous year, due to increased cash recovery from asset disposals[69]. - The ending balance of cash and cash equivalents was $219,617,460.45, an increase from $201,204,818.56 at the beginning of the period[199]. Sales and Market Strategy - The company has experienced a continuous decline in sales volume of underwear products since 2011, with a decrease of 30.25% in 2015 compared to 2014, following a 35.77% decline in 2014 compared to 2013[24]. - The company is actively promoting a micro-business sales model to expand product influence and enhance brand visibility[31]. - The company’s sales strategy includes a combination of direct sales and franchise models, with a focus on seasonal sales peaks from October to December[30]. - The company is leveraging e-commerce platforms and cross-platform operations to boost online sales performance[31]. - The company plans to strengthen online and offline sales channels, including e-commerce and micro-business initiatives[46]. Operational Challenges - The company has faced severe market challenges due to overcapacity and intense competition in the textile and apparel industry, leading to a low overall profit margin[27]. - The company has experienced rising costs due to raw material price increases and labor costs, which are squeezing profit margins[97]. - The company continues to face challenges in the textile and apparel industry, with significant impacts from prolonged price declines and inventory adjustments[62]. Inventory and Production - The company’s inventory impairment provision as of December 31, 2015, amounted to 28.0007 million yuan, with a significant portion due to outdated and unsold inventory[33]. - The inventory balance at the end of the reporting period was ¥93,577,523.13, a year-on-year decrease of 29.41%, with inventory turnover days increasing by 45 days to approximately 230 days[63]. - The production capacity utilization rate for lingerie was only 19.50%, a significant drop of 9.58 percentage points from the previous year, primarily due to reduced orders and aging machinery[60]. Governance and Compliance - The company has established a governance structure that ensures the independence of its operations and protects shareholder interests[154]. - The company has maintained independence from its controlling shareholder in business, personnel, assets, and financial aspects during the reporting period[169]. - The company has a strict policy for external guarantees and investments to control financial risks[156]. Research and Development - The company achieved a research and development investment of 6.1676 million yuan in 2015, representing 3.01% of total revenue[30]. - The company plans to focus on new product development and market expansion strategies to improve future performance[192]. - The company established a postdoctoral research station for new product development in underwear, emphasizing the importance of R&D for future growth[160]. Legal Matters - There are ongoing litigation matters, including a case where Langsha Underwear Company is involved in a dispute with a supplier, with a claimed amount of CNY 5,597,092.20[107]. - The company has ongoing litigation with various clients, with amounts involved including CNY 611,218.15 and CNY 383,042.60, which are still in the execution phase[108]. Shareholder Information - The company reported a total of 11,200 ordinary shareholders at the end of the reporting period, a decrease from 12,778 in the previous month[130]. - The largest shareholder, Langsha Holding Group Co., Ltd., holds 41,495,355 shares, representing 42.68% of the total shares, with 41,490,000 shares pledged[131].