HARSON(SH:603958)2020-08-28 16:00Financial Performance - The company's operating revenue for the first half of 2020 was ¥388,095,932.59, a decrease of 38.82% compared to ¥634,330,007.50 in the same period last year[18]. - The net profit attributable to shareholders was -¥23,529,733.76, representing a decline of 366.52% from a profit of ¥8,828,548.79 in the previous year[18]. - The net cash flow from operating activities was -¥67,461,264.74, a significant drop from ¥6,494,925.60 in the same period last year, marking a decrease of 1,138.68%[18]. - The total assets decreased by 12.55% to ¥1,109,847,778.33 from ¥1,269,141,826.31 at the end of the previous year[18]. - The net assets attributable to shareholders decreased by 2.94% to ¥993,341,649.51 from ¥1,023,407,084.38 at the end of the previous year[18]. - Basic earnings per share for the first half of 2020 was -¥0.11, a decrease of 375.00% compared to ¥0.04 in the same period last year[19]. - The company reported a significant increase in non-recurring losses, with a total of ¥9,140,230.11 from various non-operating income and expenses[22]. - The decline in revenue and profit was primarily attributed to the impact of the pandemic and a decrease in export orders[20]. - The company achieved operating revenue of 388.1 million RMB, a decrease of 38.82% compared to the same period last year[34]. - The net profit attributable to the parent company was -23.5 million RMB, a decrease of 366.52% year-on-year[34]. - Domestic sales revenue was 371 million RMB, down 32.80% year-on-year, while foreign sales revenue was 14 million RMB, down 83.20%[34]. Operational Changes - The company operated 1,352 physical stores, including 1,128 direct-operated stores and 224 franchised stores[34]. - Direct-operated stores generated 309 million RMB in revenue, accounting for 79.52% of total revenue[34]. - Online sales contributed 42 million RMB, representing 10.93% of total revenue[34]. - The company reduced R&D expenses by 54.81% to 2.87 million RMB due to a decrease in R&D personnel[36]. - The company is focusing on optimizing offline store operations and expanding online retail channels[34]. - The company plans to expand online and shopping center channels to mitigate risks from traditional retail competition[45]. - The company aims to strengthen inventory management and control to prevent losses from unsold stock[46]. Financial Position - Cash and cash equivalents increased by 227.95% to ¥131.29 million, compared to ¥40.03 million in the same period last year[38]. - Trading financial assets decreased by 38.11% to ¥223.78 million, down from ¥361.61 million year-on-year[38]. - Accounts receivable decreased by 23.56% to ¥75.88 million, compared to ¥99.26 million in the previous year[38]. - Inventory decreased by 11.82% to ¥409.77 million, down from ¥464.68 million year-on-year[38]. - Deferred income tax assets increased by 36.38% to ¥42.48 million, compared to ¥31.15 million in the same period last year[38]. - The company purchased bank wealth management products totaling ¥331 million and redeemed ¥110 million during the reporting period[40]. - The company’s external sales revenue significantly decreased by 83.2%, with external sales achieving ¥14 million in the first half of 2020[47]. - The company’s inventory accounted for 36.92% of total assets, amounting to ¥409.77 million, despite a 12.4% decrease from the previous year[46]. Shareholder Information - The company did not propose any profit distribution plan or capital reserve transfer to increase share capital during the reporting period[4]. - There were no instances of non-operating fund occupation by controlling shareholders or related parties during the reporting period[5]. - The actual controller and shareholders have committed to not reducing their holdings within the lock-up period, which lasts until June 28, 2021[52]. - After the lock-up period, shareholders are required to sell their shares at a price not lower than the issuance price[53]. - The company has established commitments to avoid engaging in competitive businesses during the holding period of its shares[53]. - The company will ensure that any future business activities do not compete with its current operations[53]. - Shareholders must announce any significant reductions in holdings (over 5%) three trading days in advance[53]. - The company has outlined measures to address potential conflicts of interest arising from changes in national policies[53]. Compliance and Governance - The company has not experienced any major litigation or arbitration matters during the reporting period[56]. - The company has adhered to environmental protection regulations and is not classified as a key pollutant discharge unit[62]. - There were no significant changes in the company's accounting policies or estimates compared to the previous accounting period[62]. - The company has not reported any major accounting errors that require retrospective restatement during the reporting period[63]. - The company has maintained its total share capital and structure without any changes during the reporting period[65]. Future Outlook - The company plans to focus on expanding its market presence and enhancing product development in the upcoming quarters[98]. - The company is exploring new strategies for market expansion and potential acquisitions to drive future growth[98].