HARSON(SH:603958)2023-04-27 16:00Financial Performance - The net profit attributable to shareholders for 2022 was -156,180,627.56 RMB, a significant decline compared to -20,095,351.08 RMB in 2021[5]. - Total revenue for 2022 decreased by 22.64% to 765,638,672.56 RMB from 989,730,594.68 RMB in 2021[20]. - The net cash flow from operating activities was -95,425,438.44 RMB, a drastic drop from 13,274,836.10 RMB in the previous year, representing an 818.84% decrease[21]. - The total assets as of the end of 2022 were 1,039,891,981.92 RMB, down 10.44% from 1,161,169,653.15 RMB at the end of 2021[21]. - The net assets attributable to shareholders decreased by 14.98% to 811,254,372.49 RMB from 954,160,014.81 RMB in 2021[21]. - The company reported a total revenue of 765.64 million RMB in 2022, a decrease of 22.64% compared to the previous year[30]. - The net profit attributable to the parent company was -156.18 million RMB, reflecting a significant loss[30]. - Basic and diluted earnings per share were both -0.706 RMB, compared to -0.092 RMB in 2021[22]. - The weighted average return on equity decreased to -17.77%, down from -2.08% in the previous year[22]. - The total revenue for the year was CNY 760,130,790.24, a decrease of 22.84% compared to the previous year[50]. - The total net profit for the year was -156,330,749.96, a significant decline compared to -20,116,810.48 from the previous year, indicating a worsening financial performance[200]. Revenue Breakdown - Online sales contributed 24.45% of total revenue, amounting to 185.86 million RMB, while offline sales accounted for 70.74% with 537.72 million RMB[31]. - The company reported a decrease of 22.79% in revenue after excluding non-operating income, totaling 759,713,961.15 RMB in 2022[20]. - Domestic sales accounted for CNY 723.58 million, down 26.20% year-on-year, while foreign sales reached CNY 36.55 million, an increase of 672.52%[47]. - The company's domestic women's shoe revenue accounted for 83.17% of total operating income during the reporting period[39]. - The total revenue from direct stores was ¥68,593.20 million, down 25.88% year-on-year[70]. - The total revenue for the company was 76,013.08 million RMB, representing a year-over-year decrease of 22.84%[74]. Operational Changes - The company decided to suspend its export business due to reduced orders and to lower operational costs[30]. - The company optimized its offline business and streamlined personnel to improve efficiency[30]. - The number of physical stores decreased by 96, totaling 1,144 stores at the end of the reporting period, including 967 direct-operated stores and 177 franchised stores[43]. - The company has not engaged in any non-operating fund occupation by controlling shareholders or related parties[7]. - The company has not violated any decision-making procedures regarding external guarantees[7]. Marketing and Sales Strategies - The company engaged in various online marketing strategies, including live streaming and social media promotions, to boost online sales[30]. - The footwear market is increasingly shifting towards online channels, with a growing emphasis on live streaming and social media marketing strategies[33]. - The company emphasizes product comfort, fashion, and personalization in response to evolving consumer preferences[34]. - The company plans to enhance its digital capabilities to improve data management and analysis, thereby increasing its core competitiveness[34]. Cost Management - The company's gross profit margin for the wholesale and retail sector was 48.71%, reflecting a decrease of 5 percentage points compared to the previous year[49]. - Research and development expenses increased by 340.91% to CNY 2.59 million, attributed to the rise in foreign sales orders[44]. - Management expenses rose by 58.85% to CNY 55.13 million, primarily due to increased severance benefits[44]. - The company reported a decrease in sales expenses to 455,395,361.67 from 491,815,715.76, suggesting cost-cutting measures in sales operations[200]. Governance and Management - The company has established a governance structure that includes a board of directors with 9 members, including 3 independent directors, ensuring compliance with legal requirements[95]. - The company has a diverse management team with extensive experience in various sectors, including finance, management, and operations[103]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 4.8773 million yuan[107]. - The company has established a cash dividend policy, aiming for a minimum of 80% cash distribution when in a mature phase without major capital expenditures[120]. Risks and Compliance - The company has outlined potential risks in its management discussion and analysis section, which investors should review[7]. - The company has established an internal control management system to ensure legal compliance and asset security, enhancing risk prevention capabilities[127]. - The company has not reported any risk findings from the supervisory board during the reporting period[114]. - The company has committed to not engaging in any business that competes with its current and future operations, ensuring no direct or indirect competition during the relevant period[136]. Inventory and Assets - The inventory at the end of the reporting period was valued at 34,714.09 million RMB, which is 33.38% of total assets, down by 2,511.73 million RMB from the previous year[75]. - The total current assets decreased from CNY 960.65 million in 2021 to CNY 856.66 million in 2022, a decline of approximately 10.8%[191]. - The cash and cash equivalents decreased from CNY 386.16 million in 2021 to CNY 368.57 million in 2022, a decrease of about 4.3%[191]. - The company's long-term equity investments decreased from CNY 284.32 million in 2021 to CNY 191.98 million in 2022, a decline of about 32.4%[191]. Shareholder Information - The largest shareholder, Zhenxing International Co., Ltd., holds 140,709,235 shares, representing 63.57% of the total shares, with a reduction of 5,917,100 shares during the reporting period[159]. - The company has a total of 200,000 restricted shares that are set to be unlocked in the second unlock period, which is tied to the performance evaluation of the incentive recipients[163]. - The total number of shares increased to 221,360,000, with 2 million shares added through the stock incentive plan[152].