HARSON(SH:603958)2021-04-27 16:00Financial Performance - The company's operating revenue for 2020 was ¥892,184,219.26, a decrease of 27.80% compared to ¥1,235,692,550.74 in 2019[20] - The net profit attributable to shareholders was -¥43,532,851.68, a decline of 560.08% from a profit of ¥9,461,917.28 in the previous year[20] - The cash flow from operating activities showed a net outflow of -¥10,857,142.59, a decrease of 121.99% compared to a positive cash flow of ¥49,381,180.70 in 2019[20] - The total assets at the end of 2020 were ¥1,158,158,090.22, down 8.74% from ¥1,269,141,826.31 at the end of 2019[21] - The net assets attributable to shareholders decreased to ¥973,353,231.34, a reduction of 4.89% from ¥1,023,407,084.38 in 2019[21] - The basic earnings per share for 2020 was -¥0.200, a decrease of 554.55% from ¥0.044 in 2019[22] - The weighted average return on equity was -4.36%, a decrease of 5.29 percentage points from 0.93% in the previous year[22] - The company reported a total of CNY 432,404.34 in overseas assets, representing 0.04% of total assets, indicating limited international exposure[34] - The company achieved a revenue of 892.18 million RMB in 2020, a decrease of 27.80% year-on-year[38] - The net profit attributable to shareholders was -43.53 million RMB, reflecting a significant decline due to the pandemic and reduced sales channels[41] Cash Flow and Investments - The cash flow from operating activities showed a significant improvement, with a negative cash flow of CNY 46.13 million in Q1 turning positive to CNY 39.51 million in Q4[25] - The company reported a total of CNY 38,100,000 in investments in financial products or structured deposits, achieving an investment income of CNY 841.14 million[96] - The company received 260,950,000.00 RMB from investment recoveries, down from 396,180,000.00 RMB in the previous year[176] - Cash inflow from investment activities totaled 271,164,147.94 RMB, with cash outflow of 266,879,047.13 RMB, leading to a net cash flow of 4,285,100.81 RMB[177] Sales and Market Performance - The overall retail sales of footwear in China decreased by 6.6% year-on-year, reflecting the impact of the pandemic on the industry[32] - The online retail sales of physical goods grew by 14.8%, highlighting a shift in consumer behavior towards e-commerce during the pandemic[32] - The company operated 1,318 physical stores by the end of the reporting period, with 1,098 being direct-operated stores, a net decrease of 80 stores during the year[38] - Online sales revenue reached 135 million RMB, accounting for 15.20% of total revenue, with a year-on-year growth of 53.61%[38] - The company reported a significant drop in foreign sales revenue, which was only 14 million RMB, a decrease of 91.77% compared to the previous year[41] Strategic Initiatives - The company plans not to distribute cash dividends for the 2020 fiscal year, pending approval from the shareholders' meeting[5] - The company is focusing on digital transformation and data management to enhance its competitive edge in the evolving retail landscape[33] - The company has indicated potential risks in its future plans and strategies, urging investors to be cautious[6] - The company plans to enhance its brand operation capabilities and accelerate the digital transformation of offline stores in 2021[70] - The company is enhancing its marketing channels by integrating online and offline sales, including live streaming and social media marketing[70] Operational Challenges - The decline in net profit was primarily due to reduced domestic sales and a significant drop in export orders, exacerbated by the impact of the pandemic[22] - The company faced a 65.85% reduction in R&D expenses, totaling 4.36 million RMB, due to a decrease in R&D personnel[42] - The company experienced a significant decrease in export orders, particularly in North America, due to trade protectionism and customer order shifts[46] - The company faces risks related to inventory control, with a focus on reducing unsold stock and improving inventory turnover rates[72] Governance and Compliance - The company maintains compliance with the Shanghai Stock Exchange's disclosure rules, ensuring timely and accurate information dissemination to all shareholders[5] - The internal control audit report for 2020 received a standard unqualified opinion, indicating no significant deficiencies were found[141] - The company has established a commitment to not engage in competing businesses during the period of holding shares[83] - The company has obligations to compensate for any losses incurred due to social insurance or housing fund contributions that were not paid prior to the signing of the commitment letter[83] Human Resources and Management - The company employed a total of 4,390 staff, with 2,240 in the parent company and 2,150 in major subsidiaries[129] - The company has implemented a training program focusing on management and business skills to enhance employee development[131] - The company has a diverse educational background among employees, with 3,670 having education below college level[129] - The company has a well-defined process for determining the remuneration of directors and senior management based on performance evaluations[126] Future Outlook - The company plans to focus on market expansion and new product development to improve future performance[171] - The company aims to become a leading domestic footwear enterprise, focusing on providing comfortable, stylish shoes for modern women of all ages[68]