红豆股份(600400) - 2025 Q2 - 季度财报

Definitions This section defines common terms such as Company, Hongdou Group, and Afu Keda, ensuring clarity throughout the report Definitions of Common Terms This section provides definitions for key terms like Company, Hongdou Group, and Afu Keda, crucial for understanding the report Common Term Definitions | Common Term | Definition | | :--- | :--- | | Company, The Company | Refers to Jiangsu Hongdou Industrial Co., Ltd. | | Hongdou Group | Refers to Hongdou Group Co., Ltd. | | Finance Company | Refers to Hongdou Group Finance Co., Ltd. | | Afu Keda | Refers to Jiangsu Afu Technology Microfinance Co., Ltd. | | Hongdou Real Estate | Refers to Wuxi Hongdou Real Estate Co., Ltd. | | Aiyu Wencheng | Refers to Jiangsu Aiyu Wencheng Elderly Care Robot Co., Ltd. | Company Profile and Key Financial Indicators This section provides an overview of the company's basic information, contact details, and key financial performance metrics for the reporting period Company Information This section details the company's official names, abbreviations, and legal representative Company Information | Company's Chinese Name | Jiangsu Hongdou Industrial Co., Ltd. | | :--- | :--- | | Company's Chinese Abbreviation | Hongdou Shares | | Company's Foreign Name | Jiangsu Hongdou Industrial Co., Ltd. | | Company's Foreign Name Abbreviation | Hongdou Industrial | | Company's Legal Representative | Zhou Hongjiang | Contact Person and Contact Information This section provides contact details for the Board Secretary and Securities Affairs Representative Contact Person and Contact Information | | Board Secretary | Securities Affairs Representative | | :--- | :--- | :--- | | Name | Meng Xiaoping | Zhu Liyan | | Contact Address | Hongdou Fortune Plaza, No. 19 Tonghui Street, Core Area, Xidong New City Business District, Wuxi, Jiangsu Province | Hongdou Fortune Plaza, No. 19 Tonghui Street, Core Area, Xidong New City Business District, Wuxi, Jiangsu Province | | Phone | 0510-66868422 | 0510-66868278 | | Fax | 0510-88350139 | 0510-88350139 | | Email | hongdou@hongdou.com | hongdou@hongdou.com | Brief Introduction to Changes in Basic Information This section details the company's registered and office addresses, website, and email, confirming no changes to the registered address Brief Introduction to Changes in Basic Information | Company's Registered Address | Donggang Town, Xishan District, Wuxi, Jiangsu Province | | :--- | :--- | | Historical Changes to Company's Registered Address | None | | Company's Office Address | 26-28th Floor, Building A, Hongdou Fortune Plaza, No. 19 Tonghui Street, Core Area, Xidong New City Business District, Wuxi, Jiangsu Province | | Company's Office Address Postal Code | 214105 | | Company Website | www.hongdou.com.cn | | Email | hongdou@hongdou.com | Brief Introduction to Changes in Information Disclosure and Document Placement Locations This section identifies the designated newspaper, website, and physical location for the company's information disclosure and semi-annual reports Brief Introduction to Changes in Information Disclosure and Document Placement Locations | Name of Newspaper Selected by the Company for Information Disclosure | Shanghai Securities News | | :--- | :--- | | Website Address for Semi-Annual Report Publication | www.sse.com.cn | | Company's Semi-Annual Report Placement Location | Company Board of Directors Office | Brief Introduction to Company Shares This section outlines the company's A-share type, listing exchange, stock abbreviation, and stock code Brief Introduction to Company Shares | Share Type | Stock Exchange | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | A-share | Shanghai Stock Exchange | Hongdou Shares | 600400 | Company's Key Accounting Data and Financial Indicators Operating revenue decreased by 19.73% to 868.04 million yuan, with net profit turning to loss, while operating cash flow became positive Key Accounting Data | Key Accounting Data | Current Reporting Period (Jan-Jun) (yuan) | Prior Year Period (yuan) | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 868,037,827.28 | 1,081,394,430.53 | -19.73 | | Total Profit | -110,378,736.61 | 60,664,115.87 | Not applicable | | Net Profit Attributable to Shareholders of Listed Company | -109,019,004.16 | 44,222,207.25 | Not applicable | | Net Profit Attributable to Shareholders of Listed Company After Deducting Non-recurring Gains and Losses | -114,176,216.88 | 22,283,125.26 | Not applicable | | Net Cash Flow from Operating Activities | 22,477,853.43 | -106,377,004.95 | Not applicable | | Net Assets Attributable to Shareholders of Listed Company (End of Current Reporting Period) | 2,439,628,615.41 | 2,543,690,118.74 | -4.09 | | Total Assets (End of Current Reporting Period) | 3,909,276,311.44 | 4,377,907,789.50 | -10.70 | Key Financial Indicators | Key Financial Indicators | Current Reporting Period (Jan-Jun) | Prior Year Period | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (yuan/share) | -0.05 | 0.02 | Not applicable | | Diluted Earnings Per Share (yuan/share) | -0.05 | 0.02 | Not applicable | | Basic Earnings Per Share After Deducting Non-recurring Gains and Losses (yuan/share) | -0.05 | 0.01 | Not applicable | | Weighted Average Return on Net Assets (%) | -4.38 | 1.50 | Decrease of 5.88 percentage points | | Weighted Average Return on Net Assets After Deducting Non-recurring Gains and Losses (%) | -4.59 | 0.76 | Decrease of 5.35 percentage points | - Operating revenue decreased by 19.73%, primarily due to intense competition in the apparel industry and insufficient consumer willingness, leading to a year-on-year decline in the company's sales performance[20] - Net profit attributable to parent company shareholders decreased by 153.24 million yuan year-on-year, and non-recurring net profit attributable to parent company shareholders decreased by 136.46 million yuan year-on-year, mainly due to a 19.73% decrease in sales performance and a 7.56 percentage point decrease in gross profit margin[20] Non-recurring Gains and Losses Items and Amounts Total non-recurring gains and losses amounted to 5.16 million yuan, primarily from asset disposals, government grants, and other non-operating items Non-recurring Gains and Losses Items and Amounts | Non-recurring Gains and Losses Items | Amount (yuan) | | :--- | :--- | | Gains and losses from disposal of non-current assets, including the write-off portion of asset impairment provisions | 204,588.17 | | Government grants recognized in current profit and loss, except for those closely related to the company's normal operations, compliant with national policies, enjoyed according to fixed standards, and having a continuous impact on the company's profit and loss | 2,041,645.06 | | Other non-operating income and expenses apart from the above items | 3,268,339.88 | | Less: Income tax impact | 357,360.39 | | Impact on minority interests (after tax) | 0.00 | | Total | 5,157,212.72 | Management Discussion and Analysis This section provides a comprehensive analysis of the company's industry, business operations, core competitiveness, and financial performance during the reporting period Explanation of the Company's Industry and Main Business Operations During the Reporting Period The textile and apparel industry faced weak consumer demand in H1 2025, but new trends like multi-scenario consumption and AI technology offer opportunities; the company focuses on men's wear production and sales - In the first half of 2025, the domestic textile industry faced challenges amid complex external circumstances, with apparel consumption demand remaining weak; per capita clothing consumption expenditure increased by 2.1% year-on-year, a 6.0 percentage point slowdown compared to the same period in 2024[25] - From January to June, the proportion of loss-making enterprises above designated size in the apparel industry reached 30.67%, an increase of 1.68 percentage points compared to the same period in 2024, intensifying pressure for quality and efficiency improvement[26] - The textile and apparel industry saw updates in multi-scenario and multi-mode online and offline consumption, with outdoor sportswear becoming a consumption highlight, AI technology empowering industry development, and "Guochao" (national trend), healthy textiles, and green low-carbon areas revitalizing consumption[30] - The company's main business is the production and sale of men's wear, including shirts, suits, trousers, jackets, T-shirts, and sweaters, forming two major business models: Hongdou men's wear omni-channel retail and Hongdou professional wear customization[30][31] Discussion and Analysis of Operations Operating revenue decreased by 19.73%, but the company advanced its 'Comfort Hongdou' strategy through brand building, retail upgrades, e-commerce breakthroughs, and professional wear business development to address market challenges - During the reporting period, the company achieved operating revenue of 868.04 million yuan, a year-on-year decrease of 19.73%, mainly due to intensified industry competition and insufficient consumer willingness[31] - The company continuously improved its full-scenario product matrix, collaborated with international shirt master Yoshikuni Take to launch the 0-sense comfortable shirt 3.0 version, and created popular tech-functional products like ice-feel POLO shirts and cool-breeze pants[32] - In retail, the company optimized its channel structure, accelerated the expansion of Shopping Mall stores and outlet channels, and activated member repurchases through digital traffic generation methods like AIGC short videos[35] - E-commerce business focused on the core positioning of "comfort," built a matrix of self-operated best-selling products, and increased daily sales through "digital human + real person" 24-hour rotation and influencer live streaming, while also piloting a brand co-operation model[38] - Professional wear business focused on three major industries: finance, government procurement, and central/state-owned enterprises, deeply cultivating systemic projects and strengthening quality and cost control[39] Analysis of Core Competitiveness During the Reporting Period Core competitiveness: brand strength, 'Comfort Hongdou' positioning, R&D, 5G smart manufacturing, and omni-channel marketing - The "Hongdou" trademark was recognized as a "China Well-known Trademark" by the State Administration for Industry and Commerce; the Hongdou brand ranked 78th in the "China's 500 Most Valuable Brands" list with a brand value of 87.90 billion yuan, and was awarded the "Golden Jubilee Award · 2024 Global Impact Brand Award"[40] - The company was awarded the title of "Pioneer in Comfort Men's Wear Segment" by the China National Garment Association, exploring comfortable apparel and advocating the "Comfort Hongdou" concept[41] - The company has established a mature men's wear R&D and design team, launched innovative products like the "0-sense comfortable shirt," winning 6 awards from 5 countries, and participated in the formulation of multiple national and industry standards[42] - The company operates a 5G fully connected factory, achieving over 32% improvement in production efficiency and a 30% reduction in work-in-progress inventory, and was selected for the "2025 Jiangsu Province Advanced Smart Factory" list[43] - The company actively established an omni-channel marketing system, continuously improving offline stores and traditional e-commerce retail channels, actively deploying new social e-commerce channels like Douyin, and strengthening information technology empowerment[44] Main Operating Conditions During the Reporting Period This section analyzes financial statement changes, asset-liability status, industry operating information, and investment activities, noting a 19.73% revenue decrease, profit turning to loss, optimized asset-liability structure, and reduced store count Main Business Analysis Operating revenue decreased by 19.73%, while operating costs decreased by 9.44%; total profit and net profit attributable to parent company shareholders significantly declined, but net cash flow from operating activities turned positive Analysis Table of Financial Statement Related Account Changes | Account | Current Period Amount (yuan) | Prior Year Period Amount (yuan) | Change Ratio (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 868,037,827.28 | 1,081,394,430.53 | -19.73 | | Operating Cost | 577,299,909.50 | 637,457,747.91 | -9.44 | | Selling Expenses | 278,167,034.48 | 312,722,541.22 | -11.05 | | Administrative Expenses | 80,044,039.66 | 84,764,411.51 | -5.57 | | Financial Expenses | 12,320,349.72 | 18,271,416.97 | -32.57 | | R&D Expenses | 9,175,231.36 | 8,871,506.50 | 3.42 | | Net Cash Flow from Operating Activities | 22,477,853.43 | -106,377,004.95 | Not applicable | | Net Cash Flow from Investing Activities | -1,700,471.08 | -7,508,452.22 | 77.35 | | Net Cash Flow from Financing Activities | -133,313,780.50 | -69,931,501.68 | -90.63 | | Taxes and Surcharges | 5,658,829.02 | 10,609,002.76 | -46.66 | | Other Income | 3,370,310.45 | 9,272,130.40 | -63.65 | | Investment Income | 257,619.98 | 30,317,530.90 | -99.15 | | Credit Impairment Losses | -4,000,526.51 | 4,258,885.54 | Not applicable | | Asset Impairment Losses | -18,851,502.12 | -8,764,179.51 | -115.10 | | Gains on Disposal of Assets | 289,913.04 | 13,902,578.26 | -97.91 | - The change in financial expenses is mainly due to the reduction in interest expenses after the repayment of the company's logistics distribution center special loan[45] - The change in net cash flow from operating activities is mainly due to a decrease in cash paid by the company for purchasing goods and receiving services[45] - The change in investment income is mainly due to a decrease in investment income from long-term equity investments accounted for using the equity method[45] Analysis of Assets and Liabilities Total assets and net assets attributable to shareholders decreased; accounts receivable and prepayments increased, while inventory decreased by 36.53% due to faster digestion; accounts payable increased by 91.86% Changes in Assets and Liabilities | Item Name | Amount at End of Current Period (yuan) | Proportion of Total Assets at End of Current Period (%) | Amount at End of Prior Year Period (yuan) | Proportion of Total Assets at End of Prior Year Period (%) | Change Ratio from End of Prior Year Period (%) | Explanation | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Notes Receivable | 27,564,955.36 | 0.71 | 19,313,391.41 | 0.44 | 42.72 | Mainly due to an increase in commercial acceptance bills received for company receivables | | Accounts Receivable from Financing | 1,152,498.12 | 0.03 | 2,026,676.65 | 0.05 | -43.13 | Mainly due to a decrease in electronic bank acceptance bills received for company receivables | | Prepayments | 61,430,064.07 | 1.57 | 35,897,079.98 | 0.82 | 71.13 | Mainly due to an increase in company prepayments | | Inventories | 195,034,636.08 | 4.99 | 307,284,316.45 | 7.02 | -36.53 | Mainly due to the company accelerating the digestion of inventory goods through promotions, flash sales, and major sales | | Other Current Assets | 21,911,731.16 | 0.56 | 40,955,244.69 | 0.94 | -46.50 | Mainly due to a decrease in warehouse leasing and advertising expense amortization, as well as a decrease in VAT input tax credit | | Notes Payable | 131,412,311.26 | 3.36 | 68,494,271.87 | 1.56 | 91.86 | Mainly due to an increase in bill payments for goods | | Accounts Payable | 271,151,196.29 | 6.94 | 530,108,758.27 | 12.11 | -48.85 | Mainly due to the payment of matured accounts payable | | Advances from Customers | 0.00 | 0.00 | 140,000.00 | 0.00 | -100.00 | Mainly due to the realization of sales from advance rental payments | | Contract Liabilities | 29,565,298.00 | 0.76 | 74,243,337.28 | 1.70 | -60.18 | Mainly due to a decrease in advance receipts for goods | | Employee Benefits Payable | 35,617,450.79 | 0.91 | 53,108,778.40 | 1.21 | -32.93 | Mainly due to the payment of employee salaries and year-end bonuses from the previous year | | Taxes Payable | 7,575,914.23 | 0.19 | 18,750,509.14 | 0.43 | -59.60 | Mainly due to a decrease in company taxes payable | - Overseas assets amounted to 1,614,678.58 yuan, accounting for 0.04% of total assets[50] Major Asset Restrictions at the End of the Reporting Period | Item | Book Balance at Period End (yuan) | Book Value at Period End (yuan) | Reason for Restriction | | :--- | :--- | :--- | :--- | | Monetary Funds | 102,546,083.08 | 102,546,083.08 | Bank acceptance bills, letter of guarantee deposits, bank letter of credit loan deposits | | Notes Receivable | 16,666,146.85 | 15,832,839.51 | Endorsement transfer of commercial acceptance bills with recourse | | Investment Properties | 129,015,609.15 | 66,908,137.05 | Bank loan mortgage | | Fixed Assets | 268,775,084.61 | 164,961,717.80 | Bank loan mortgage | | Intangible Assets | 54,969,304.13 | 32,031,675.88 | Bank loan mortgage | | Total | 571,972,227.82 | 382,280,453.32 | | Analysis of Industry Operating Information The total number of stores decreased to 929; men's wear and OEM apparel revenue and gross margins declined; online sales revenue decreased but its proportion of total revenue increased Physical Store Situation During the Reporting Period | Brand | Store Type | Number at End of 2024 (stores) | Number at End of June 2025 (stores) | New Openings Jan-Jun 2025 (stores) | Closures Jan-Jun 2025 (stores) | Franchise/Joint Venture Stores Converted to Direct-operated Stores (stores) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | HOdo Men's Wear | Direct-operated Stores | 496 | 479 | 11 | 53 | 25 | | HOdo Men's Wear | Franchise/Joint Venture Stores | 504 | 450 | 16 | 45 | -25 | | Total | -- | 1,000 | 929 | 27 | 98 | 0 | Profitability of Each Brand During the Reporting Period | Brand Type | Operating Revenue (ten thousand yuan) | Operating Cost (ten thousand yuan) | Gross Profit Margin (%) | Change in Operating Revenue from Prior Year (%) | Change in Operating Cost from Prior Year (%) | Change in Gross Profit Margin from Prior Year (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Men's Wear HOdo | 60,942.77 | 37,855.58 | 37.88 | -22.86 | -8.58 | -9.70 | | OEM Apparel | 20,175.37 | 16,130.56 | 20.05 | -11.77 | -8.43 | -2.92 | | Total | 81,118.14 | 53,986.14 | 33.45 | -20.37 | -8.54 | -8.61 | Profitability of Direct-operated and Franchise Stores During the Reporting Period | By Store Type | Operating Revenue (ten thousand yuan) | Operating Cost (ten thousand yuan) | Gross Profit Margin (%) | Change in Operating Revenue from Prior Year (%) | Change in Operating Cost from Prior Year (%) | Change in Gross Profit Margin from Prior Year (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Direct-operated Stores | 25,809.63 | 11,636.13 | 54.92 | -27.74 | -10.49 | -8.69 | | Franchise/Joint Venture Stores | 11,464.62 | 11,096.40 | 3.21 | -42.47 | -22.27 | -25.15 | | Total | 37,274.25 | 22,732.53 | 39.01 | -33.02 | -16.66 | -11.97 | Profitability of Online and Offline Sales Channels During the Reporting Period | Sales Channel | Operating Revenue Jan-Jun 2025 (ten thousand yuan) | Operating Revenue Share Jan-Jun 2025 (%) | Gross Profit Margin Jan-Jun 2025 (%) | Operating Revenue Jan-Jun 2024 (ten thousand yuan) | Operating Revenue Share Jan-Jun 2024 (%) | Gross Profit Margin Jan-Jun 2024 (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Online Sales | 18,035.65 | 22.23 | 47.04 | 24,539.61 | 24.09 | 49.57 | | Offline Sales | 63,082.49 | 77.77 | 29.56 | 77,325.64 | 75.91 | 39.67 | | Total | 81,118.14 | 100.00 | 33.45 | 101,865.25 | 100.00 | 42.06 | Analysis of Investment Status The company invested in Aiyu Wencheng, acquired a 9% stake in Xishan BOC Fullerton Rural Bank, and co-invested in Wuxi Fuxin Robot Co., Ltd., with securities investment valued at 5.16 million yuan - The company subscribed to the increased registered capital of Jiangsu Aiyu Wencheng Elderly Care Robot Co., Ltd. with 1 million yuan of its own funds, acquiring a 5% stake after the capital increase, which later decreased to 4.35% due to new shareholder capital injection[60][61] - The company's wholly-owned subsidiary, Wuxi Hongdou Sports Technology Co., Ltd., invested 14.18 million yuan to acquire a 9% stake in Jiangsu Xishan BOC Fullerton Rural Bank Co., Ltd[61] - The company co-invested with related parties to establish Wuxi Fuxin Robot Co., Ltd., contributing 600,000 yuan of its own funds, accounting for 30% of its registered capital[61] Securities Investment Status | Security Type | Security Code | Security Abbreviation | Initial Investment Cost (yuan) | Source of Funds | Book Value at Beginning of Period (yuan) | Fair Value Change Gain/Loss in Current Period (yuan) | Cumulative Fair Value Change Included in Equity (yuan) | Amount Purchased in Current Period (yuan) | Amount Sold in Current Period (yuan) | Investment Gain/Loss in Current Period (yuan) | Book Value at End of Period (yuan) | Accounting Subject | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Stock | 002243 | Lihe Kechuang | 300,000,000.00 | Self-raised | 5,102,234.08 | 0.00 | 60,355.76 | 0.00 | 0.00 | 44,783.97 | 5,162,589.84 | Other Equity Instrument Investments | Other Disclosure Matters The company faces market competition, product R&D, and operational management risks, planning to optimize marketing, strengthen R&D, and advance digital transformation to enhance competitiveness Potential Risks The company faces risks from fluctuating apparel consumption, intensified industry competition, potential market share decline, and misalignment between product R&D and evolving consumer tastes - Apparel consumption is influenced by macroeconomic fluctuations, industry prosperity, per capita disposable income, and personalized consumer demands, potentially leading to risks such as market share decline for the company[66] - The apparel industry faces diversified and constantly changing consumer tastes; if the company misjudges fashion trends and consumer demands, and product R&D does not effectively match the needs of core consumer groups, it will adversely affect sales performance[66] - With the comprehensive innovation and upgrade of new-generation information technologies represented by large AI models, 5G, cloud computing, and big data, lagging digital transformation will lead to risks of operational management disorder[67] Risk Countermeasures The company will optimize omni-channel marketing, strengthen R&D with a 'user-centric' approach, build a flexible supply chain, and advance digital transformation to explore AI new retail and enhance operational efficiency - The company will optimize its omni-channel marketing network system covering offline stores and online shops, focusing on strengthening the expansion of Shopping Mall channels for physical stores and optimizing e-commerce platform services, continuously innovating digital new retail to enhance consumer experience[66] - The company adheres to a "user-centric" approach, clarifies the "Comfort Hongdou" brand concept, builds a flexible supply chain network centered on precise consumer demand insights, and strengthens product innovation supported by technological R&D[66] - The company will formulate a digital transformation plan tailored to its own needs, build a "user-centric" capability system, explore AI new retail businesses, and strengthen cooperation with ecological partners to improve operational efficiency and competitiveness[67] Corporate Governance, Environment and Society This section details changes in the company's directors and senior management, outlines profit distribution plans, and discusses the impact of equity incentive and employee stock ownership plans Changes in Company Directors and Senior Management Dai Minjun resigned as director due to retirement, and Zhou Haijiang was appointed as a new director to the ninth board of directors Changes in Company Directors and Senior Management | Name | Position Held | Change Status | | :--- | :--- | :--- | | Zhou Haijiang | Director | Election | | Dai Minjun | Director | Resignation | - Dai Minjun resigned from her position as a director of the ninth board of directors due to reaching retirement age, and Zhou Haijiang was appointed as a new director to the ninth board of directors[70] Profit Distribution or Capital Reserve Conversion Plan This semi-annual report does not include any profit distribution or capital reserve conversion to share capital plans - Proposed profit distribution plan and capital reserve conversion to share capital plan for the semi-annual period: No[71] Status and Impact of Company Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures The company terminated its 2021 restricted stock incentive plan and completed the repurchase and cancellation of related restricted shares - The company's ninth board of directors' twentieth extraordinary meeting, ninth supervisory board's eleventh extraordinary meeting, and the first extraordinary general meeting in 2025 approved the "Proposal on Terminating the Implementation of the 2021 Restricted Stock Incentive Plan and Repurchasing and Canceling Related Restricted Stocks," and the cancellation procedures for the involved restricted stocks have been completed[71] Significant Matters This section covers the fulfillment of commitments, significant related party transactions, and other major events such as share repurchase plans Fulfillment of Commitments The controlling shareholder and actual controller consistently fulfilled commitments regarding related party transactions, competition, and independence; the company also adhered to its pledge not to engage in real estate development or provide financial support Fulfillment of Commitments | Commitment Background | Commitment Type | Promisor | Commitment Content (Summary) | Commitment Date | Has Performance Deadline | Commitment Period | Timely and Strictly Fulfilled | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Commitments related to major asset restructuring | Resolution of related party transactions | Controlling shareholder and actual controller | Minimize related party transactions; if necessary, conduct fair operations based on market principles and fair prices, without harming the legitimate rights and interests of the listed company and other shareholders. | 2017/3/27 | No | Long-term | Yes | | Commitments related to major asset restructuring | Resolution of horizontal competition | Controlling shareholder and actual controller | Not to directly or indirectly engage in, participate in, or assist others in engaging in any business that competes with the listed company and its subsidiaries in any form. | 2017/3/27 | No | Long-term | Yes | | Commitments related to major asset restructuring | Other | Controlling shareholder and actual controller | Ensure the independence of the listed company's personnel, assets, organization, business, and finance. | 2017/3/27 | No | Long-term | Yes | | Commitments related to major asset restructuring | Other | Company | After this transaction, no longer engage in real estate development business, and no longer provide any form of financial support or guarantee to Hongdou Real Estate and its subsidiaries. | 2017/3/27 | No | Long-term | Yes | | Commitments related to equity incentives | Other | Incentive objects of the company's 2021 restricted stock incentive plan | If the company's information disclosure documents contain false records, misleading statements, or major omissions, leading to non-compliance with the grant or exercise arrangements, the incentive objects shall return all benefits obtained. | 2021/12/16 | No | Long-term | Yes | Significant Related Party Transactions Daily related party transactions totaled 98.12 million yuan; the controlling shareholder provided 484 million yuan in guarantees, and the company maintained a 744.69 million yuan deposit with Hongdou Group Finance Co., Ltd Related Party Transactions Related to Daily Operations Estimated 2025 daily related party transactions were 300 million yuan, with 98.12 million yuan actually incurred; the controlling shareholder provided 484 million yuan in guarantees, and the company held 744.69 million yuan in deposits with Hongdou Group Finance Co., Ltd - The estimated amount of daily related party transactions for 2025 is 300 million yuan, with an actual amount of 98.12 million yuan incurred during the reporting period[76] - The controlling shareholder, Hongdou Group, provides guarantees as needed for the company's credit lines with banks and other financial institutions, totaling no more than 1.35 billion yuan; as of the end of the reporting period, 484 million yuan in guarantees have been provided[77] - The company renewed its "Financial Services Agreement" with Hongdou Group Finance Co., Ltd.; as of the end of the reporting period, the company's deposit balance with the finance company was 744.69 million yuan, and it received 4.12 million yuan in deposit interest[78] Related Party Receivables and Payables At period-end, total related party receivables were 73.42 million yuan and payables were 4.91 million yuan with entities like Hongdou Group and Jiangsu Hongdou International Development Co., Ltd Related Party Receivables and Payables | Related Party | Relationship | Beginning Balance (yuan) | Amount Incurred (yuan) | Ending Balance (yuan) | | :--- | :--- | :--- | :--- | :--- | | Hongdou Group Co., Ltd. (Receivable) | Controlling Shareholder | 4,005,953.44 | -2,878,034.65 | 1,127,918.79 | | Jiangsu Hongdou International Development Co., Ltd. (Receivable) | Subsidiary of Shareholder | 30,243,651.40 | -9,620,150.99 | 20,623,500.41 | | Wuxi Hongdou Home Furnishings Co., Ltd. (Receivable) | Subsidiary of Shareholder | 100,627,625.40 | -68,148,681.12 | 32,478,944.28 | | HODO SINGAPORE PTE. LTD. (Receivable) | Subsidiary of Shareholder | 41,128,464.02 | -27,160,920.87 | 13,967,543.15 | | Nangou Hongdou Holdings Co., Ltd. (Prepayment) | Formerly controlled by the same controlling shareholder | 497,297.48 | 3,562,698.36 | 4,059,995.84 | | Hongdou Group Co., Ltd. (Prepayment) | Controlling Shareholder | 460,522.28 | 464,902.92 | 925,425.20 | | Hongdou Group Hongdou Home Textiles Co., Ltd. (Payable) | Subsidiary of Shareholder | 0.00 | 387,833.02 | 387,833.02 | | Jiangsu Hongdoushan Health Technology Co., Ltd. (Payable) | Subsidiary of Shareholder | 378,899.18 | 41,046.90 | 419,946.08 | | Total (Receivables) | / |