ELLASSAY(SH:603808)2022-10-28 16:00Financial Performance - The company's revenue for Q3 2022 was ¥574,757,237.23, representing a year-on-year increase of 0.25%[5] - Net profit attributable to shareholders decreased by 45.51% year-on-year to ¥31,213,390.89[5] - The basic earnings per share for the period was ¥0.08, down 50.00% compared to the same period last year[5] - The diluted earnings per share for the year-to-date period was ¥0.22, down 69.44% year-on-year[5] - Net profit for Q3 2022 was CNY 112,128,398.81, a decrease of 58.3% compared to CNY 268,048,749.41 in Q3 2021[25] - Operating profit for Q3 2022 was CNY 112,432,534.02, down 63.8% from CNY 310,084,896.65 in Q3 2021[25] - Total comprehensive income for Q3 2022 was CNY 107,269,554.20, a decrease of 58.4% from CNY 258,035,106.68 in Q3 2021[26] Assets and Liabilities - Total assets at the end of the period were ¥4,315,438,580.33, a decrease of 4.27% from the end of the previous year[6] - Cash and cash equivalents as of September 30, 2022, were CNY 617,818,660.64, down from CNY 835,153,583.45 at the end of 2021, a decrease of approximately 26.06%[20] - Accounts receivable decreased to CNY 253,663,366.57 from CNY 303,517,613.58, reflecting a decline of about 16.43%[20] - Inventory increased to CNY 760,414,991.37 from CNY 695,838,825.48, showing a rise of approximately 9.28%[20] - Total liabilities decreased to CNY 1,412,015,613.25 from CNY 1,575,969,173.07, representing a reduction of about 10.38%[22] - The company's equity attributable to shareholders decreased to CNY 2,774,269,511.24 from CNY 2,831,488,201.88, a decline of approximately 2.01%[22] Revenue Sources and Growth - Total revenue for the first nine months of 2022 reached RMB 172,119.26 million, a year-on-year increase of 4.26%[13] - Total operating revenue for the first three quarters of 2022 reached CNY 1,860,259,986.20, an increase of 7.4% from CNY 1,731,339,253.56 in the same period of 2021[28] - Online sales increased by 37.85% year-on-year, contributing to overall revenue growth despite challenges in physical store operations[10] - Total revenue grew by 4.35%, driven by a multi-brand strategy and store expansion efforts[10] - Revenue from franchise stores was RMB 33,656.53 million, with a gross profit margin of 50.37%, down 6.59 percentage points year-on-year[13] Expenses and Costs - The company faced a 20.62% increase in operating expenses due to new store openings and fixed costs amid pandemic disruptions[9] - The company reported a significant increase in period expenses by 23.57%, largely due to fixed costs that could not be reduced amid the pandemic[10] - Research and development expenses for Q3 2022 were CNY 42,826,335.05, slightly up from CNY 41,653,104.04 in Q3 2021[25] Shareholder Actions - The company repurchased shares, spending 50 million on buybacks by the end of September[11] - The company repurchased a total of 5,359,645 shares, representing 1.45% of the total share capital, at a total cost of RMB 51.13 million[18] Market Strategy and Future Plans - The company plans to continue expanding its market presence and invest in new product development[13] - The company opened 76 new direct-operated stores during the reporting period, resulting in higher expenses associated with new store openings[11] - The company opened 43 new direct-operated stores, contributing to revenue growth despite challenges in franchise operations due to pandemic impacts[9] Profitability Metrics - The company's return on equity decreased by 7.35 percentage points to 2.89%[6] - The gross profit margin for direct stores was 68.26%, a decrease of 2.07 percentage points compared to the same period last year[13] - The gross profit margin for the total business was 64.76%, a decrease of 2.18 percentage points compared to the previous year[13] - The company's gross profit margin declined as the proportion of online sales increased by 3.54 percentage points[11] - The company reported a significant increase in the gross profit margin for the self-portrait brand, reaching 83.36%, up 63.49% year-on-year[13]