HARSON(SH:603958)2018-10-26 16:00Financial Performance - Net profit attributable to shareholders decreased by 64.93% to CNY 7,339,232.73 for the first nine months of the year[7]. - Operating revenue for the first nine months decreased by 8.16% to CNY 986,481,535.81 compared to the same period last year[7]. - Basic and diluted earnings per share decreased by 64.58% to CNY 0.034[8]. - The company forecasts a cumulative net profit decrease of 45% to 65% compared to the previous year, primarily due to a decline in export orders and the closure of underperforming stores[16]. - Total operating revenue for Q3 2018 was CNY 261,529,107.04, a decrease of 12.55% compared to CNY 298,972,087.81 in Q3 2017[27]. - Year-to-date revenue for the first nine months of 2018 reached CNY 986,481,535.81, down 8.16% from CNY 1,074,169,418.26 in the same period last year[27]. - Net profit for Q3 2018 was a loss of ¥31.00 million, compared to a loss of ¥22.65 million in Q3 2017, representing a 37% increase in losses year-over-year[29]. - The total comprehensive income for Q3 2018 was a loss of ¥31.02 million, compared to a loss of ¥22.64 million in Q3 2017, indicating a worsening financial position[30]. - The total profit for Q3 2018 was a loss of ¥39.27 million, compared to a loss of ¥28.16 million in Q3 2017, marking a 39.5% increase in losses[29]. Assets and Liabilities - Total assets decreased by 3.11% to CNY 1,393,011,631.86 compared to the end of the previous year[7]. - Total assets as of September 30, 2018, amounted to CNY 1,393,011,631.86, a decrease from CNY 1,437,751,945.99 at the beginning of the year[22]. - Total liabilities were CNY 297,548,213.25, slightly up from CNY 293,930,156.07 at the start of the year[22]. - Current liabilities totaled CNY 297,548,213.25, compared to CNY 289,930,156.07 in the previous year[22]. - Non-current liabilities remained stable at CNY 4,000,000.00, unchanged from the previous period[22]. - The company's total equity decreased to CNY 1,095,463,418.61 from CNY 1,143,821,789.92 at the beginning of the year[22]. - Cash and cash equivalents decreased significantly to CNY 12,308,515.60 from CNY 61,898,935.10 at the beginning of the year[24]. - Accounts receivable decreased to CNY 52,531,266.56 from CNY 143,984,493.44 at the beginning of the year[24]. - Inventory increased slightly to CNY 595,509,466.28 from CNY 593,620,238.20 at the beginning of the year[25]. Cash Flow - Net cash flow from operating activities decreased by 6.06% to CNY 42,770,657.27 for the first nine months[7]. - Cash flow from operating activities for the first nine months of 2018 was ¥42.77 million, down from ¥45.53 million in the same period last year[36]. - Investment activities generated a net cash outflow of -¥44.95 million in the first nine months of 2018, an improvement from -¥115.14 million in the same period last year[36]. - Cash outflow from investment activities totaled $100.78 million, slightly down from $104.62 million year-over-year, resulting in a net cash flow from investment activities of -$58.57 million, compared to -$48.79 million last year[41]. - Cash flow from financing activities showed a net outflow of -$38.43 million, an improvement from -$57.53 million in the previous year[41]. - The ending cash and cash equivalents balance decreased to $11.58 million from $20.73 million year-over-year, indicating a decline in liquidity[41]. Investments and Income - Long-term equity investments increased significantly by 461.44% to ¥14,838,852.25 from ¥2,642,990.47, mainly due to increased external equity investments[12]. - Intangible assets surged by 709.60% to ¥56,572,284.21 from ¥6,987,690.67, attributed to the recognition of the Roberta series trademarks as intangible assets[12]. - Investment income for the first nine months of 2018 was ¥7,953,455.78, a decrease of 47.43% from ¥15,129,126.34, mainly due to losses from the remaining 30% equity stake in a subsidiary[13]. - Other income increased by 872.78% to ¥31,971,904.31 from ¥3,286,659.20, primarily due to an increase in government subsidies received[13]. - Other income for Q3 2018 was ¥142.37 million, significantly higher than ¥64.48 million in Q3 2017, showing a positive trend in other income sources[28]. - Investment income for Q3 2018 was ¥4.41 million, compared to ¥0.38 million in Q3 2017, indicating a substantial increase in investment returns[28]. Operational Efficiency - Total operating costs for Q3 2018 were approximately ¥305.97 million, a decrease of 6.7% compared to ¥328.01 million in Q3 2017[28]. - Research and development expenses for Q3 2018 were ¥3.24 million, down 36.4% from ¥5.09 million in Q3 2017[28]. - Sales expenses for the first nine months of 2018 totaled ¥252.68 million, a decrease of 7.6% from ¥273.54 million in the same period last year[32]. - R&D expenses in Q3 2018 were ¥1.80 million, down 26.0% from ¥2.43 million in Q3 2017[32]. Legal and Compliance - The report has not been audited, indicating potential risks in the financial data presented[7]. - The company is actively responding to a lawsuit seeking ¥50 million in damages related to trademark infringement, which may impact future profits[15]. - There is no mention of market expansion or mergers and acquisitions in the current report[6]. - The company has not disclosed any new product or technology developments in this report[6].