Yowant Technology(SZ:002291)2018-08-27 16:00Financial Performance - The company's operating revenue for the first half of 2018 was CNY 735,519,992.31, a decrease of 6.84% compared to CNY 789,560,620.37 in the same period last year[17]. - Net profit attributable to shareholders increased by 32.22% to CNY 29,502,543.45, up from CNY 22,313,903.67 in the previous year[17]. - The net profit after deducting non-recurring gains and losses rose by 38.18% to CNY 29,278,065.33, compared to CNY 21,188,428.63 in the same period last year[17]. - The net cash flow from operating activities increased by 68.24% to CNY 71,842,057.94, compared to CNY 42,702,456.14 in the previous year[17]. - Basic earnings per share rose by 32.38% to CNY 0.0740, compared to CNY 0.0559 in the same period last year[17]. - The company achieved operating revenue of 735.52 million yuan, a decrease of 6.84% compared to the same period last year[41]. - The net profit attributable to shareholders increased by 32.22% to 29.50 million yuan, with a basic earnings per share of 0.07 yuan[36]. - The company reported a total comprehensive income of CNY 37,172,966.04, compared to CNY 24,593,327.33 in the same period last year, indicating a growth of 51.1%[157]. - The company’s tax expenses decreased significantly to CNY 1,286,294.46 from CNY 6,728,219.79 in the previous year, a reduction of 80.9%[156]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 3,095,893,639.07, a decrease of 2.76% from CNY 3,183,609,395.15 at the end of the previous year[17]. - Net assets attributable to shareholders increased by 2.27% to CNY 1,521,038,110.38, compared to CNY 1,487,326,862.50 at the end of the previous year[17]. - The company's total liability was CNY 1,547,889,712.84, down from CNY 1,672,778,434.96, a decrease of about 7.46%[148]. - Current liabilities decreased from CNY 1,436,362,443.02 to CNY 1,261,704,985.70, a reduction of about 12.16%[148]. - Non-current liabilities increased from CNY 236,415,991.94 to CNY 286,184,727.14, an increase of approximately 20.98%[148]. - Cash and cash equivalents decreased from CNY 188,996,024.81 to CNY 109,139,648.62, a decline of approximately 42.24%[151]. - Accounts receivable decreased slightly from CNY 762,905,318.07 to CNY 750,268,192.15, a decrease of about 1.75%[151]. - Inventory decreased from CNY 1,315,709,002.65 to CNY 1,258,884,984.72, a reduction of approximately 4.32%[151]. Business Strategy and Operations - The company operates in the fashion footwear industry, focusing on the production and sales of stylish shoes and diversified fashion products, with a mission to "lead a fashionable lifestyle" and aims to be a leading mid-to-high-end fashion brand operator in China[25]. - The company has established a multi-brand strategy with brands such as "ST&SAT," "D:FUSE," and "SAFIYA," targeting a wide range of consumers based on gender, age, and income, enhancing product coverage and long-term stability[29]. - The company has expanded its sales channels by actively developing online sales, which have become an important part of its sales strategy, promoting synergy between online shopping and physical stores[26]. - The company has invested in new brand collection stores, creating a unique shopping environment that integrates online and offline sales, enhancing customer experience through interactive activities[30]. - The company has acquired controlling stakes in fashion media companies to build a fashion IP ecosystem, aiming to enhance brand image and drive sales through online traffic[33]. - The company’s management team has extensive experience in the footwear industry, with key personnel having over ten years of experience, contributing to the company's stable growth[32]. - The company utilizes a flat management structure and advanced information management systems to ensure quick responses to market changes and improve operational efficiency[32]. - The company’s production model combines self-manufacturing and OEM, allowing for flexible and diverse production to meet market demands[25]. - The company has a strong focus on research and development, producing thousands of designs annually to keep up with global fashion trends and meet domestic market needs[31]. Financial Management and Investments - The company reported a significant reduction in financial expenses, which increased by 29.71% to 32.87 million yuan, primarily due to repayment of financial support from controlling shareholders[42]. - The company reported a net loss from investment of ¥2.37 million, which accounted for -6.92% of total profit, indicating challenges in its investment strategy[48]. - The company has not reported any significant changes in major assets during the reporting period, indicating stable asset management[27]. - The company has committed to maintaining competitive business practices and has fulfilled its commitments related to industry competition[69]. - The company has a maximum guarantee amount of 77 million RMB for debts, with a current payable balance of 69 million RMB as of June 30, 2018[84]. Shareholder and Equity Information - The company plans not to distribute cash dividends or issue bonus shares[6]. - The company has committed to distributing at least 30% of the average distributable profits over the last three years in cash dividends[72]. - The largest shareholder, Shenzhen Sixi Investment Holdings Co., Ltd., holds 116,626,010 shares, representing 29.24% of the total shares[118]. - LYONE GROUP PTE. LTD. is the second-largest shareholder with 92,731,990 shares, accounting for 23.25% of the total shares[119]. - The total number of ordinary shareholders at the end of the reporting period is 26,420[118]. - The company’s director and deputy general manager, Li Gang, increased his holdings by 324,012 shares, bringing his total to 1,031,365 shares[125]. - The total number of shares after the recent changes is 398,921,895, with 8.92% being limited shares and 91.08% being unrestricted shares[115]. Market and Economic Risks - The company faces risks related to macroeconomic fluctuations and consumer demand, which could adversely affect revenue and profitability[64]. - The company has not engaged in any major litigation or arbitration matters during the reporting period[76]. - The company has not experienced any penalties or rectification situations during the reporting period[77]. Future Outlook - The company expects a net profit attributable to shareholders for the first nine months of 2018 to range from CNY 19.20 million to CNY 24.96 million, reflecting a growth of 0% to 30%[62]. - The company plans to actively adopt cash dividend distribution methods, prioritizing cash dividends when conditions are met[71]. - The company plans to continue expanding its market presence and investing in new product development[172].