HARSON(SH:603958)2022-04-27 16:00Financial Performance - The company's total revenue for 2021 was RMB 989,730,594.68, representing a year-over-year increase of 10.93% compared to RMB 892,184,219.26 in 2020[22]. - The net profit attributable to shareholders for 2021 was a loss of RMB 20,095,351.08, an improvement from a loss of RMB 43,532,851.68 in 2020[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of RMB 34,076,505.56, compared to a loss of RMB 68,758,590.82 in the previous year[22]. - The company achieved an operating revenue of 990 million yuan in 2021, representing a year-on-year growth of 10.93%[35]. - The net profit attributable to the parent company was -20.10 million yuan, showing an improvement compared to the previous year's loss of -40.00 million yuan[35]. - The company's total assets at the end of 2021 were 1.16 billion yuan, a slight increase of 0.26% from the previous year[35]. - The net assets attributable to shareholders decreased by 1.97% to 954.16 million yuan compared to the end of 2020[35]. - The company reported a net profit attributable to shareholders of -20.1 million RMB, indicating a loss compared to the previous period[48]. - The company reported a total revenue of 1.2 billion in 2020, reflecting a year-over-year growth of 15%[100]. - The company reported a significant increase in revenue, achieving a total of 1.2 billion in the last fiscal year, representing a 15% year-over-year growth[103]. Cash Flow and Dividends - As of December 31, 2021, the company's distributable profits amounted to RMB 417,553,072.59, with no cash dividends proposed for the year due to the net loss[6]. - The net cash flow from operating activities was 132.75 million yuan, a significant increase from the previous year's negative cash flow[26]. - The company plans to maintain a cash dividend policy, with a minimum of 80% of profits distributed as cash dividends during mature stages without major capital expenditures[124]. - The company did not distribute cash dividends for the fiscal year 2020 and plans to do the same for 2021, pending shareholder approval[124]. Sales and Marketing Strategies - Online sales generated 185 million yuan, marking a significant growth of 37.41% year-on-year, while offline sales reached 800 million yuan, up 6.13%[35]. - The company plans to enhance online channel expansion by collaborating with e-commerce platforms like Tmall, Vipshop, and JD.com[35]. - The company is focusing on live streaming sales, mini-programs, and social media marketing to adapt to the decline in offline foot traffic[36]. - The company aims to optimize brand competitiveness by integrating market trends and refining brand positioning[36]. - The company aims to meet diverse consumer needs through a combination of traditional retail and new retail technologies[39]. - The company is focusing on integrating online and offline sales channels to expand market share in second and third-tier cities[89]. - The company plans to enhance its marketing strategies by increasing collaboration with influencers and diversifying promotional channels[89]. Inventory and Production - The production model is driven by orders and market forecasts, with 96.55% of production coming from external suppliers and only 3.45% from in-house production[45]. - The production volume of shoes was 2,361,817 pairs, representing a year-on-year increase of 6.83%[55]. - The sales volume of shoes reached 2,712,274 pairs, a year-on-year increase of 16.15%[55]. - The company's inventory value at the end of the reporting period was 372 million yuan, accounting for 32.06% of total assets, a decrease of 12.04% compared to the previous year[91]. - The company has implemented strict inventory turnover assessment mechanisms to control stock levels and mitigate risks associated with unsold inventory[91]. Risks and Challenges - The company has faced various risks, which are detailed in the management discussion and analysis section of the report[8]. - The company faces risks related to channel changes and potential loss of brand agency rights, which could impact operational performance[90]. - The company's main operating performance is derived from offline department store counters, which are vulnerable to the impacts of recurring COVID-19 outbreaks[92]. - The company faces risks of bad debts from accounts receivable primarily from department store sales, influenced by competition and operational difficulties of the department stores[91]. Corporate Governance and Management - The company held one annual and one extraordinary shareholders' meeting during the reporting period, ensuring equal treatment of all investors[95]. - The board of directors convened seven meetings during the reporting period, with independent directors actively participating and providing independent opinions on significant matters[95]. - The supervisory board held six meetings, ensuring oversight of major transactions and financial conditions to protect shareholder interests[96]. - The company has established a comprehensive talent development and incentive system, adjusting employee compensation based on performance and industry standards[121]. - The company’s performance evaluation for senior management is based on the annual benefits achieved and individual work performance assessment results[106]. Research and Development - Research and development expenses decreased by 86.51% to 588,540 RMB, reflecting reduced investment in this area[49]. - The total R&D expenditure was CNY 588,540.46, accounting for 0.06% of total revenue[62]. - The company plans to invest 100 million in R&D for new technologies aimed at improving operational efficiency[100]. - Research and development expenses increased by 30%, totaling 150 million, to support new technology initiatives[103]. Shareholder Information - The largest shareholder, Zhenxing International Co., Ltd., holds 66.24% of the shares, with a reduction of 1,733,600 shares during the reporting period[175]. - The company has a total of 221,360,000 shares outstanding after the stock incentive plan implementation[164]. - The number of ordinary shareholders increased from 14,015 to 14,037 during the reporting period[172]. - The company has no other significant shareholders holding more than 10% of shares[187]. Compliance and Internal Controls - The company established an internal control management system to ensure legal compliance and asset safety, and revised the insider information management system during the reporting period[130]. - An independent audit of the internal control effectiveness was conducted by Zhongxinghua Accounting Firm, resulting in a standard unqualified opinion[131]. - The company has maintained timely repayment on its financial management products, with a 100% compliance rate[158].