RED DRAGONFLY(SH:603116)2023-10-27 16:00Important Notice This section presents critical declarations on report authenticity and management responsibilities Statement on Report Authenticity The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report - The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of the quarterly report, assuming individual and joint legal responsibility for any false statements, misleading representations, or material omissions2 - The company's principal officer, head of accounting, and head of the accounting department guarantee the truthfulness, accuracy, and completeness of the financial information in the quarterly report3 Major Financial Data This section outlines the company's key financial performance indicators and their changes for the reporting period Key Accounting Data and Financial Indicators Zhejiang Red Dragonfly Footwear Co., Ltd. reported strong Q3 2023 and YTD financial performance, with significant growth in operating revenue, net profit, and operating cash flow Key Accounting Data and Financial Indicators for Q3 2023 and Year-to-Date | Item | Current Reporting Period (RMB) | Change from Same Period Last Year (%) | Year-to-Date (YTD) as of Reporting Period End (RMB) | YTD Change from Same Period Last Year (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 625,502,321.52 | 15.61 | 1,869,321,558.21 | 12.45 | | Net Profit Attributable to Listed Company Shareholders | 10,489,100.52 | 1,197.68 | 47,969,167.28 | 119.58 | | Net Profit Attributable to Listed Company Shareholders Excluding Non-Recurring Gains and Losses | 2,262,099.75 | N/A | 20,009,510.56 | N/A | | Net Cash Flow from Operating Activities | 72,660,731.09 | 3,354.12 | 212,824,235.30 | 1,459.22 | | Basic Earnings Per Share (RMB/share) | 0.0182 | 1,200.28 | 0.08 | 108.13 | | Diluted Earnings Per Share (RMB/share) | 0.0182 | 1,200.28 | 0.08 | 108.13 | | Weighted Average Return on Net Assets (%) | 0.35 | increased by 0.325 percentage points | 1.53 | increased by 0.86 percentage points | | Period-End Indicators | As of End of Current Reporting Period (RMB) | Change from End of Last Fiscal Year (%) | As of End of Last Fiscal Year (RMB) | | | Total Assets | 4,579,689,463.92 | -2.91 | 4,717,081,882.32 | | | Total Equity Attributable to Listed Company Shareholders | 3,019,899,938.29 | -4.95 | 3,177,120,485.43 | | Non-Recurring Gains and Losses Items and Amounts During the reporting period, the company's non-recurring gains and losses primarily stemmed from government subsidies, wealth management product income, and fair value changes, significantly impacting net profit Non-Recurring Gains and Losses Items and Amounts | Item | Current Reporting Period Amount (RMB) | Year-to-Date as of Reporting Period End Amount (RMB) | Notes | | :--- | :--- | :--- | :--- | | Non-current asset disposal gains/losses | 49,927.65 | 401,371.48 | primarily from gains on disposal of fixed assets | | Government subsidies recognized in current profit/loss | 4,761,271.35 | 18,866,256.56 | receipt of government subsidies | | Fair value changes and investment income from financial assets held for trading, derivative financial assets, etc. | 2,625,593.13 | 8,426,845.51 | primarily from gains on wealth management products and fair value changes | | Other non-operating income and expenses | 2,247,305.52 | 5,138,711.96 | primarily from other compensation and forfeiture income | | Other profit/loss items meeting the definition of non-recurring gains/losses | 12,518.53 | 178,880.65 | primarily from individual income tax handling fee refunds and additional tax deductions | | Less: Income tax impact | -1,646,313.15 | -5,225,338.91 | | | Impact on minority interests (after tax) | 176,697.74 | 172,929.47 | | | Total | 8,227,000.77 | 27,959,656.72 | | Changes and Reasons for Key Accounting Data and Financial Indicators Net cash flow from operating activities and net profit attributable to shareholders significantly increased, driven by higher sales and improved gross profit margins - Net cash flow from operating activities: increased by 3,354.12% in the current reporting period and 1,459.22% year-to-date, primarily due to increased sales and customer collections9 - Net profit attributable to shareholders of the listed company: increased by 1,197.68% in the current reporting period and 119.58% year-to-date, primarily due to increased revenue and gross profit margin9 - Basic and diluted earnings per share: both increased by 1,200.28% in the current reporting period and 108.13% year-to-date, primarily due to the increase in net profit attributable to shareholders of the listed company9 Shareholder Information This section provides details on the company's shareholder structure, including total common shareholders and top ten holdings Total Common Shareholders and Top Ten Shareholder Holdings As of the reporting period end, the company had 576,200,800 common shares outstanding, with concentrated holdings among the top ten shareholders, and Red Dragonfly Group Co., Ltd. identified as the largest shareholder with concerted action relationships - Total common shareholders at the end of the reporting period: 576,200,800 shares11 Top 10 Shareholder Holdings | Shareholder Name | Shareholder Type | Number of Shares Held (shares) | Shareholding Ratio (%) | | :--- | :--- | :--- | :--- | | Red Dragonfly Group Co., Ltd. | Domestic Non-State-Owned Legal Person | 251,472,200 | 43.64 | | Qian Jinbo | Domestic Natural Person | 56,339,806 | 9.78 | | Jin Yinkuan | Domestic Natural Person | 20,773,410 | 3.61 | | Qian Xiufen | Domestic Natural Person | 16,802,002 | 2.92 | | Zhejiang Red Dragonfly Footwear Co., Ltd. - Phase I Employee Stock Ownership Plan | Other | 16,679,693 | 2.89 | | Chen Minghai | Domestic Natural Person | 13,848,940 | 2.40 | | Xuanyuan Private Equity Fund Management (Guangdong) Co., Ltd. - Xuanyuan Kexin No. 162 Private Securities Investment Fund | Domestic Non-State-Owned Legal Person | 11,520,000 | 2.00 | | Chen Mancang | Domestic Natural Person | 4,250,192 | 0.74 | | Li Sikang | Domestic Natural Person | 3,276,000 | 0.57 | | Ruan Shouguo | Domestic Natural Person | 2,873,020 | 0.50 | - Qian Jinbo, Red Dragonfly Group, Qian Xiufen, and Guangzhou Xuanyuan Investment Management Co., Ltd. - Xuanyuan Kexin No. 162 Private Securities Investment Fund are in a concerted action relationship13 Other Reminders This section presents additional important information concerning the company's main business operations and performance segmentation Main Business Operations The company's main business is the footwear and apparel industry, which saw growth in both operating revenue and gross profit margin during the reporting period Main Business by Industry Segment | Industry Segment | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Profit Margin (%) | Operating Revenue Change from Prior Year (%) | Operating Cost Change from Prior Year (%) | Gross Profit Margin Change from Prior Year (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Footwear and Apparel Industry | 1,713,879,098.49 | 1,065,683,087.05 | 37.82 | 13.34 | 9.13 | 2.4 | Explanation of Business Operations This section details the company's operating performance segmented by brand, store type, sales channel, and product type, highlighting 'Red Dragonfly' as the core brand, highest gross margin in directly operated stores, rapid online sales growth, and strong women's footwear performance By Brand The 'Red Dragonfly' brand remains the company's revenue pillar, while other brands experienced significant year-over-year revenue growth Operating Performance by Brand | Brand | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Profit Margin (%) | Operating Revenue Change from Prior Year (%) | Operating Cost Change from Prior Year (%) | Gross Profit Margin Change from Prior Year (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Red Dragonfly | 1,706,161,276.58 | 1,062,587,064.78 | 37.72 | 12.92 | 9.40 | 2.01 | | Other | 7,717,821.91 | 3,096,022.27 | 59.88 | 538.19 | -40.95 | 393.43 | | Total | 1,713,879,098.49 | 1,065,683,087.05 | 37.82 | 13.34 | 9.13 | 2.4 | By Store Type Directly operated stores achieved the highest gross profit margin and strong revenue growth, while franchise stores contributed the largest revenue share Operating Performance by Store Type | Store Type | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Profit Margin (%) | Operating Revenue Change from Prior Year (%) | Operating Cost Change from Prior Year (%) | Gross Profit Margin Change from Prior Year (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Directly Operated Stores | 360,682,705.55 | 140,632,336.15 | 61.01 | 30.56 | 20.37 | 3.30 | | Franchise Stores | 722,881,398.90 | 491,623,740.39 | 31.99 | 4.49 | 2.36 | 1.41 | | Other | 630,314,994.04 | 433,427,010.51 | 31.24 | 15.86 | 14.23 | 0.98 | | Total | 1,713,879,098.49 | 1,065,683,087.05 | 37.82 | 13.34 | 9.13 | 2.40 | By Online and Offline Sales Channels Online sales channels showed significant revenue growth, while offline sales remained the primary revenue source with a higher gross profit margin Operating Performance by Online and Offline Sales Channels | Sales Channel | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Profit Margin (%) | Operating Revenue Change from Prior Year (%) | Operating Cost Change from Prior Year (%) | Gross Profit Margin Change from Prior Year (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Online | 481,565,664.25 | 323,659,780.80 | 32.79 | 19.32 | 0.35 | | | Offline | 1,232,313,434.24 | 742,023,306.25 | 39.79 | 10.96 | 5.21 | 3.30 | | Total | 1,713,879,098.49 | 1,065,683,087.05 | 37.82 | 13.34 | 9.13 | 2.40 | By Product Type Men's and women's footwear are core products, with women's footwear revenue growing faster than men's, and leather goods and children's products also contributing Operating Performance by Product Type | Product Type | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Profit Margin (%) | Operating Revenue Change from Prior Year (%) | Operating Cost Change from Prior Year (%) | Gross Profit Margin Change from Prior Year (percentage points) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Men's Footwear | 763,801,831.62 | 473,708,769.14 | 37.98 | 10.76 | 7.33 | 1.98 | | Women's Footwear | 674,503,342.48 | 401,295,129.29 | 40.51 | 18.76 | 13.46 | 2.78 | | Leather Goods | 150,103,166.59 | 104,232,798.23 | 30.56 | 10.33 | 4.84 | 3.64 | | Children's Products | 81,039,235.23 | 62,949,196.08 | 22.32 | -11.45 | -12.91 | 1.3 | | Other | 44,431,522.57 | 23,497,194.31 | 47.12 | 64.71 | 139.77 | -16.55 | | Total | 1,713,879,098.49 | 1,065,683,087.05 | 37.82 | 13.34 | 9.13 | 2.4 | Quarterly Financial Statements This section presents the company's unaudited consolidated financial statements for Q3 2023, offering a comprehensive overview of its financial position, performance, and cash flows Type of Audit Opinion The financial statements for this quarter are unaudited - The third-quarter financial statements are unaudited420 Financial Statements This section includes the consolidated balance sheet as of September 30, 2023, and the consolidated income statement and cash flow statement for the first three quarters of 2023, reflecting the company's financial position, operating results, and cash flows Consolidated Balance Sheet As of September 30, 2023, the company's total assets and equity attributable to shareholders decreased from the prior year-end, while current liabilities slightly increased Consolidated Balance Sheet Key Data | Item | September 30, 2023 (RMB) | December 31, 2022 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 1,778,077,444.67 | 1,679,375,201.41 | 5.88 | | Financial Assets Held for Trading | 128,680,000.00 | 350,470,000.00 | -63.30 | | Accounts Receivable | 645,341,064.57 | 558,437,209.38 | 15.56 | | Inventories | 497,701,367.41 | 553,286,796.48 | -10.05 | | Total Current Assets | 3,136,640,782.16 | 3,243,025,563.31 | -3.28 | | Total Non-Current Assets | 1,443,048,681.76 | 1,474,056,319.01 | -2.09 | | Total Assets | 4,579,689,463.92 | 4,717,081,882.32 | -2.91 | | Short-Term Borrowings | 483,152,860.87 | 407,089,773.40 | 18.68 | | Accounts Payable | 393,832,900.87 | 451,960,206.74 | -12.86 | | Total Current Liabilities | 1,373,166,104.95 | 1,328,362,590.91 | 3.37 | | Total Non-Current Liabilities | 41,419,466.26 | 63,998,842.67 | -35.28 | | Total Liabilities | 1,414,585,571.21 | 1,392,361,433.58 | 1.60 | | Total Equity Attributable to Parent Company Shareholders | 3,019,899,938.29 | 3,177,120,485.43 | -4.95 | | Total Equity | 3,165,103,892.71 | 3,324,720,448.74 | -4.80 | Consolidated Income Statement For the first three quarters of 2023, the company achieved substantial growth in total operating revenue and net profit attributable to parent company shareholders, significantly enhancing profitability Consolidated Income Statement Key Data (First Three Quarters of 2023) | Item | First Three Quarters of 2023 (RMB) | First Three Quarters of 2022 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 1,869,321,558.21 | 1,662,402,520.44 | 12.45 | | Operating Cost | 1,180,913,649.96 | 1,090,512,651.86 | 8.29 | | Selling Expenses | 423,347,704.39 | 375,200,872.72 | 12.83 | | Administrative Expenses | 180,796,978.26 | 173,116,688.01 | 4.43 | | Research and Development Expenses | 23,625,096.15 | 27,306,658.24 | -13.48 | | Financial Expenses | -28,583,172.90 | -16,036,614.19 | 78.24 | | Operating Profit | 70,276,023.76 | 17,553,565.78 | 300.35 | | Total Profit | 75,593,246.25 | 24,205,683.61 | 212.30 | | Net Profit | 45,573,158.39 | 17,695,700.57 | 157.54 | | Net Profit Attributable to Parent Company Shareholders | 47,969,167.28 | 21,845,556.88 | 119.58 | | Basic Earnings Per Share (RMB/share) | 0.08 | 0.04 | 100.00 | | Diluted Earnings Per Share (RMB/share) | 0.08 | 0.04 | 100.00 | Consolidated Cash Flow Statement In the first three quarters of 2023, the company experienced a significant increase in net cash flow from operating activities, reduced cash outflow from investing activities, and increased cash outflow from financing activities Consolidated Cash Flow Statement Key Data (First Three Quarters of 2023) | Item | First Three Quarters of 2023 (RMB) | First Three Quarters of 2022 (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 212,824,235.30 | 13,649,418.35 | 1459.22 | | Net Cash Flow from Investing Activities | 142,138,995.82 | 362,522,047.10 | -60.79 | | Net Cash Flow from Financing Activities | -218,688,273.55 | 112,101,440.32 | -295.08 | | Net Increase in Cash and Cash Equivalents | 136,274,957.57 | 488,272,905.77 | -72.07 | | Cash and Cash Equivalents at Period End | 1,770,364,065.87 | 1,317,778,254.06 | 34.34 |