Shanghai Lily&Beauty (SH:605136)2023-10-27 16:00Financial Performance - The company's revenue for Q3 2023 was approximately ¥491.23 million, representing a decrease of 9.18% compared to the same period last year[5]. - The net profit attributable to shareholders for Q3 2023 was a loss of approximately ¥27.99 million, with a year-to-date loss of approximately ¥51.93 million[5]. - The basic and diluted earnings per share for Q3 2023 were both -¥0.07, reflecting a decline compared to -¥0.13 in the same quarter last year[6]. - Total operating revenue for the first three quarters of 2023 was RMB 1,930,293,263.53, a decrease of 8.0% compared to RMB 2,098,046,872.97 in the same period of 2022[19]. - Total operating costs for the first three quarters of 2023 were RMB 1,857,103,832.30, down from RMB 2,098,043,340.42 in 2022, indicating a reduction of 11.5%[19]. - Total revenue for Q3 2023 was significantly lower at -53,903,611.04 RMB compared to -41,001,246.36 RMB in Q3 2022, reflecting a decline of approximately 31.5% year-over-year[20]. - Operating profit for Q3 2023 was reported at -67,168,832.69 RMB, worsening from -59,400,039.85 RMB in the same period last year[20]. - The total comprehensive loss for Q3 2023 was -54,382,012.19 RMB, compared to -39,333,728.87 RMB in Q3 2022, reflecting a worsening of approximately 38.3%[21]. - The company experienced a decrease in sales revenue from 2,486,868,742.65 RMB in the first nine months of 2022 to 2,274,352,730.81 RMB in the same period of 2023, a decline of about 8.5%[23]. Assets and Liabilities - The total assets at the end of Q3 2023 were approximately ¥2.73 billion, down 14.26% from the end of the previous year[6]. - Cash and cash equivalents as of September 30, 2023, were RMB 845,539,323.27, a decrease of 25.5% from RMB 1,135,153,032.48 at the end of 2022[15]. - Accounts receivable decreased to RMB 49,450,979.67 from RMB 83,417,716.63, reflecting a decline of 40.7%[15]. - Inventory as of September 30, 2023, was RMB 961,201,942.00, down 14.4% from RMB 1,123,112,442.30 at the end of 2022[15]. - Total assets decreased to RMB 2,727,726,222.08 from RMB 3,181,427,088.52, a reduction of 14.2%[17]. - Total liabilities decreased significantly to RMB 279,981,680.87 from RMB 681,800,535.13, a decline of 58.9%[16]. - Shareholders' equity as of September 30, 2023, was RMB 2,447,744,541.21, down from RMB 2,499,626,553.39, a decrease of 2.1%[17]. Cash Flow and Investments - The cash flow from operating activities for the year-to-date period was a net outflow of approximately ¥249.68 million, indicating a significant decrease in cash received from sales[6]. - Cash flow from operating activities showed a net outflow of -249,675,396.29 RMB for the first nine months of 2023, compared to -148,405,394.84 RMB for the same period in 2022[23]. - The company reported a net cash outflow from investing activities of -4,009,785.68 RMB in Q3 2023, an improvement from -19,518,223.35 RMB in Q3 2022[24]. - Total cash and cash equivalents at the end of Q3 2023 stood at 887,486,154.93 RMB, slightly down from 894,318,392.18 RMB at the end of Q3 2022[24]. - The company raised 35,000,000.00 RMB in borrowings during Q3 2023, compared to no borrowings in Q3 2022, indicating a shift in financing strategy[24]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 31,101[11]. - The top shareholder, Huang Tao, holds 33.46% of the shares, totaling approximately 133.98 million shares[11]. Strategic Focus and Future Outlook - The company is focusing on expanding its proprietary brand development and marketing efforts to improve future performance[9]. - The company reported a net profit margin improvement, with net profit for the first three quarters of 2023 showing signs of stabilization despite revenue decline[19]. - The company is focusing on cost reduction strategies and improving operational efficiency to navigate the current market challenges[19]. - Future outlook indicates a projected revenue growth of 25% for Q4 2023, driven by new product launches and market expansion strategies[25]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2024[25]. - A strategic acquisition of a local skincare brand was completed, expected to contribute an additional 200 million RMB in annual revenue[25]. - The company aims to enhance its supply chain efficiency, targeting a 15% reduction in operational costs by mid-2024[25]. Research and Development - The company reported a decrease in government subsidies received, impacting net profit negatively due to increased R&D and marketing expenses for proprietary brands[9]. - Research and development expenses decreased to 4,365,396.96 RMB in Q3 2023 from 9,564,201.45 RMB in Q3 2022, a reduction of about 54.4%[20]. - Investment in R&D for new product lines increased by 30%, focusing on sustainable and eco-friendly cosmetics[25]. Market Performance - Shanghai Liren Lizhuang Cosmetics Co., Ltd. reported a revenue increase of 15% year-over-year, reaching 1.2 billion RMB in Q3 2023[25]. - The company achieved a user base growth of 20%, totaling 5 million active users by the end of Q3 2023[25]. - E-commerce sales accounted for 60% of total revenue, highlighting a shift in consumer purchasing behavior[25]. - Customer satisfaction ratings improved to 90%, indicating strong brand loyalty and product acceptance[25]. - The gross margin improved to 45%, up from 40% in the previous quarter, reflecting better cost management[25].