WLM(SZ:300591)2025-04-23 12:40Financial Performance - The company reported a decline in main business revenue due to intensified industry competition, with group buying channel sales amounting to 268.36 million, 377.20 million, and 363.77 million in the last three years, representing 58.56%, 61.60%, and 62.86% of total revenue respectively [4]. - The company's operating revenue for 2024 was ¥586,570,863.98, a decrease of 5.07% compared to ¥617,893,004.20 in 2023 [22]. - The net profit attributable to shareholders for 2024 was -¥175,898,032.95, representing a decline of 145.83% from -¥71,552,794.26 in 2023 [22]. - The company reported a basic and diluted earnings per share of -¥0.4336 for 2024, a decline of 145.80% from -¥0.1764 in 2023 [22]. - The company reported a total of ¥35,600,020.38 in non-recurring losses for 2024, compared to a gain of ¥11,068,218.50 in 2023 [28]. - The company reported a net loss attributable to shareholders of ¥175,898,032.95, primarily due to intensified industry competition and reduced order volumes [99]. - The company's main business revenue for 2024 was CNY 57,868.03 million, a decrease of 5.57% from CNY 61,232.43 million in 2023 [83]. Cost and Expenses - Fixed costs have negatively impacted profits, with high unit labor costs and manufacturing expenses due to underutilized capacity in the group buying business, alongside significant marketing expenses in the e-commerce sector [6]. - The company incurred inventory impairment losses of ¥25,567,200, including a provision for inventory depreciation of ¥25,567,200 and bad debt provisions of ¥11,770,100 [100][101]. - The total operating costs for the company were ¥506,944,823.60, a slight increase of 0.20% from the previous year [111]. - The company reported a 31.90% increase in labor costs, which constituted 19.03% of total operating costs [112]. - Sales expenses increased by 6.98% to ¥80,042,341.02, while management expenses rose by 9.20% to ¥46,175,391.39 [116]. - Financial expenses surged by 48.70% to ¥11,678,984.07, primarily due to increased interest expenses from sale-leaseback transactions [116]. Market and Industry Trends - The overall industry remains competitive, but the footwear sector is expected to recover as consumer confidence improves, supported by China's economic growth [9]. - The leather goods industry in China is experiencing a growth of 3.7% in revenue, reaching CNY 853.32 billion in 2024, with a profit total of CNY 46.09 billion, reflecting a 1.6% increase [42]. - The consumer spending on clothing and footwear has shown a modest growth of 0.3%, with retail sales amounting to CNY 1,469.1 billion in 2024 [46]. - The domestic leather goods market is primarily dominated by international luxury brands, with local brands mainly competing in the mid to low-end segments [32]. - The industry is transitioning towards a focus on brand building, with an emphasis on quality, culture, and fashion as key differentiators [49]. - The market for mid-to-high-end leather goods is expanding rapidly, with major players leveraging multi-brand strategies to capture market share [39]. Strategic Initiatives - The company plans to not distribute cash dividends or issue bonus shares, indicating a focus on retaining earnings for future investments [10]. - The company is actively adjusting its operational strategy by closing unprofitable stores to mitigate risks associated with declining consumer traffic [4]. - The company aims to enhance brand recognition and user interaction by focusing on personalized consumer demands and digital transformation [57]. - The company plans to expand its protective equipment business into the firefighting and rescue sector, aligning with government initiatives to enhance emergency management capabilities [84]. - The company is exploring new strategies for product innovation and market reach, particularly in the health and wellness segments [124]. Sales Channels and Distribution - The company has established five major sales channels, including group purchasing, direct sales, e-commerce, wholesale agents, and ODM, with group purchasing showing strong growth [55]. - E-commerce sales accounted for 23.35% of total revenue in 2024, down from 26.45% in 2023, indicating a shift in sales channels [83]. - The direct sales channel focuses on enhancing customer experience in major urban areas, with a strategy to expand into surrounding cities to build a national marketing network [72]. - The e-commerce channel has become a significant platform for sales, with the company leveraging online marketplaces like Taobao, Tmall, and JD.com for product distribution [73]. - The wholesale agent channel has rapidly expanded nationwide, improving product market coverage and ensuring effective management of agents [75]. Research and Development - The company’s R&D team has been recognized with multiple awards, indicating a strong commitment to product quality and innovation [96]. - Research and development (R&D) expenditure amounted to ¥30,206,773.60, representing 5.15% of operating revenue, an increase from 4.96% in the previous year [127]. - The company is committed to upgrading its research and development, production automation, and information technology to enhance product quality and competitiveness [155]. Governance and Compliance - The company has established a complete governance structure in compliance with relevant laws and regulations, ensuring no significant discrepancies with regulatory requirements [176]. - The board of directors consists of 7 members, including 3 independent directors, meeting legal and regulatory requirements [179]. - The company maintains independence from its controlling shareholder in terms of assets, personnel, finance, and operations, ensuring autonomous business capabilities [182]. - The company has established a performance evaluation and incentive mechanism to assess and reward employees and executives [181]. Investment and Financing - The company raised a total of RMB 180,290,000.00 from the issuance of convertible bonds, with a net amount of RMB 172,987,142.45 after deducting issuance costs [139]. - The company approved the use of up to 370 million RMB of idle raised funds to temporarily supplement working capital, with a usage period not exceeding 12 months from the board's approval date [146]. - The company has committed to invest a total of 12,000 million CNY in the smart manufacturing upgrade project, with a completion progress of 63.87% as of the reporting period [144].