HARSON(SH:603958)2025-04-28 13:20Financial Performance - The net profit attributable to shareholders for the year 2024 was -96,407,444.40 RMB, indicating a loss for the company [4]. - As of December 31, 2024, the company's distributable profit was 111,718,173.80 RMB, but no cash dividends will be distributed due to the loss [4]. - The company will not conduct capital reserve transfers or other forms of distribution for the 2024 fiscal year due to the lack of profitability [4]. - The net profit attributable to shareholders was -¥96,407,444.40, a significant decline from -¥5,330,845.08 in the previous year [21]. - The basic earnings per share (EPS) for 2024 was -¥0.436, compared to -¥0.024 in 2023, indicating a substantial deterioration in profitability [22]. - The company reported a net cash flow from operating activities of -¥23,543,359.17, a decrease of 131.36% from ¥75,085,960.79 in the previous year [21]. - The company’s net assets attributable to shareholders decreased by 12.00% to ¥706,988,627.10 at the end of 2024, down from ¥803,396,071.50 at the end of 2023 [21]. - The company achieved a revenue of ¥821,012,245.70 in 2024, representing a year-on-year increase of 1.12% compared to ¥811,887,920.62 in 2023 [21]. - The total assets increased by 83.15% to ¥1,780,280,154.47 in 2024, up from ¥972,031,548.03 in 2023 [21]. Acquisitions and Business Expansion - The company plans to acquire 100% of the shares of Chenling Optical and 45% of the shares of Suzhou Langkes through a share issuance, along with raising supporting funds [12]. - The company has undergone a significant asset restructuring involving the acquisition of Chenling Optical [12]. - The company has established new business lines in precision metal components and related equipment through cash acquisitions [12]. - The company expanded its business by acquiring 45% of Suzhou Langkes and 55.2% of Jiangsu Langxun, enhancing its diversified portfolio in high-end women's shoes and precision metal components [31]. - The company completed cash acquisitions of 45% equity in Suzhou Langkes and 55.2% equity in Jiangsu Langxun, which will be consolidated into the financial statements starting November 30, 2024 [1]. - The company acquired 45% of Suzhou Langke and 55.2% of Jiangsu Langxun, gaining control over 65.2% and 55% of their shares respectively [78]. - The company completed the cash acquisition of a 55.2% stake in Jiangsu Langxun for RMB 88.32 million and a 45% stake in Suzhou Langkes for RMB 27 million [104]. - The company is expanding into precision metal structure components and related equipment business following recent acquisitions [78]. Revenue and Sales Performance - Online sales for shoes and bags grew by 13.06% to ¥21,790.17 million, increasing its share of total revenue from 23.74% to 26.54% [31]. - The company’s shoe business accounted for 90.89% of total revenue, while the newly acquired precision metal structural components business is experiencing good market growth [34]. - The company achieved a main business revenue of 808.31 million RMB, representing a year-on-year growth of 0.26%, with footwear business accounting for 90.89% of total revenue [52]. - The revenue from direct stores was 73,491.65 million RMB, with a gross profit margin of 53.12%, reflecting a decrease of 3.22 percentage points [89]. - The revenue from franchise stores was 3,233.21 million RMB, with a gross profit margin of 31.69%, which increased by 0.73 percentage points [89]. - The company reported a total revenue of 24,408,362.89 million RMB from its main business operations, with a cost of 348,463,649.88 million RMB, representing 87.97% of total costs [60]. Risk Management and Compliance - The company has detailed potential risks in the management discussion and analysis section of the report [6]. - The company is facing risks from potential declines in customer demand in the consumer electronics sector, which could adversely affect production and sales [117]. - The company is actively addressing risks related to international trade policy uncertainties that may impact product pricing and overall revenue [118]. - The company is enhancing internal controls and financial management to mitigate risks associated with inventory management and potential write-downs [119]. - The company is taking measures to strengthen credit assessments and contract management to prevent credit losses from accounts receivable [120]. - The company has established a supervisory board with 3 supervisors, including 1 employee supervisor, complying with legal requirements [125]. - The company adheres to information disclosure obligations, ensuring that all shareholders have equal access to information, thus protecting the interests of minority shareholders [125]. - The company has not reported any significant differences in governance compared to regulations set by the China Securities Regulatory Commission [126]. Research and Development - Research and development expenses surged by 425.06%, amounting to 4,196,974.22 CNY, indicating a strong focus on innovation [50]. - The company has increased its R&D personnel to 73, accounting for 2.04% of the total workforce, following the acquisition of Jiangsu Langxun and Suzhou Langkes [72]. - The company’s acquisition of Jiangsu Langxun and Suzhou Langkes has led to an increase in R&D activities, supporting the long-term development of precision metal structural components and related equipment [73]. - The company plans to enhance its e-commerce platform, aiming for a 40% increase in online sales by the end of the next fiscal year [132]. - Research and development investments have increased by 30%, focusing on sustainable materials and production processes [135]. Corporate Governance and Management - The company has a performance-based salary system for senior management, combining basic and performance salaries [163]. - The total remuneration for all directors, supervisors, and senior management was 4.1473 million yuan [137]. - The company’s remuneration decisions comply with legal procedures and do not harm the interests of the company and shareholders [137]. - The company has not faced any penalties from securities regulatory agencies in the past three years [139]. - The company has conducted insider information registration for significant events, including major asset restructuring and quarterly reports for 2023 and 2024 [125]. Environmental and Social Responsibility - The company emphasizes compliance with environmental laws and regulations, focusing on energy conservation and environmental protection [170]. - The company has implemented measures to reduce carbon emissions, focusing on energy conservation and waste management [172]. - Total charitable contributions during the reporting period amounted to 60,000 RMB, all allocated to donation expenses [174]. - The company has developed emergency response plans for environmental incidents, which have been filed with local environmental authorities [171]. - The company has established compliance operation systems and environmental management frameworks across its main subsidiaries, adhering to local environmental regulations [171].