HMJT(SZ:002356)2021-07-09 16:00Financial Performance - The company reported a negative net asset value at the end of the most recent audited fiscal year, which may lead to delisting risk warnings from the Shenzhen Stock Exchange[3]. - The company plans not to distribute cash dividends, issue bonus shares, or increase capital using reserves[5]. - The company emphasizes that future development strategies and performance plans are subject to market conditions and uncertainties, and do not constitute a commitment to investors[4]. - The company's operating revenue for 2020 was ¥466,537,017.16, a decrease of 45.01% compared to ¥848,393,525.78 in 2019[24]. - The net profit attributable to shareholders was -¥503,997,729.76, an improvement of 73.17% from -¥1,878,513,883.48 in the previous year[24]. - The net cash flow from operating activities increased by 101.58% to ¥37,055,705.99, compared to ¥18,382,561.90 in 2019[24]. - The total assets at the end of 2020 were ¥1,131,023,675.20, down 50.99% from ¥2,307,540,469.33 at the end of 2019[24]. - The net assets attributable to shareholders decreased by 28.60% to -¥2,266,322,152.74 from -¥1,762,324,422.98 in 2019[24]. - The company reported a basic and diluted earnings per share of -¥0.9549, improving from -¥3.5591 in 2019[24]. - The company recorded non-operating income of ¥61,562,459.98 from the disposal of non-current assets in 2020[30]. - The government subsidies recognized in the current period amounted to ¥5,953,358.60, slightly down from ¥6,006,590.33 in 2019[30]. Business Operations - The company has not reported any changes in its main business since its listing[22]. - The company operates numerous international brand stores across major first, second, and third-tier cities in China, enhancing its offline sales channels[44]. - The company has established long-term partnerships with well-known e-commerce platforms, creating a multi-channel sales strategy[44]. - The company aims to enhance profitability by deepening cooperation with the duty-free business and innovating business development models[41]. - The company has 49 stores as of the end of the reporting period, utilizing both self-operated and joint-operated sales models[53]. - The apparel segment accounted for 61.69% of total revenue, with a year-on-year decline of 40.73%[62]. - The company’s financial services segment saw a dramatic decline of 88.95% in revenue, contributing only 2.54% to total revenue[62]. - The southern region contributed 70.86% of total revenue, with a year-on-year decrease of 44.97%[62]. Challenges and Risks - The company faced significant challenges due to the pandemic, with the retail industry experiencing a 3.9% decline in total retail sales in 2020[36]. - The company's revenue decreased due to tight funding, leading to a reduction in business scale and a drop in operating income[41]. - The company is currently facing a debt crisis, which has resulted in increased financing costs and restricted access to credit from banks and financial institutions[115]. - The company faces significant risks from macroeconomic fluctuations, particularly in the high-end luxury goods sector, which is sensitive to economic downturns and consumer spending[112]. - Increased competition in the retail sector, particularly from international brands and domestic high-end brands, is intensifying market pressures on the company[113]. - The COVID-19 pandemic severely impacted the company's operations, particularly affecting offline store sales and leading to a significant accumulation of inventory[115]. Legal and Financial Obligations - The company has been involved in a restructuring process initiated by creditors due to insolvency, with the Shenzhen Intermediate People's Court starting pre-restructuring on February 3, 2021[151]. - The company faces a total of 16.65 million yuan in financial borrowing disputes with Industrial Bank, with ongoing enforcement actions[155]. - The company has been involved in multiple legal disputes, including a 3 million yuan financial borrowing dispute with Ningbo Bank, which has been resolved[155]. - The company has been ordered to pay 32 million RMB plus interest in a case against Shenzhen Qianhai Dongkang Commercial Factoring, with part of the litigation costs shared with another defendant[158]. - The company has incurred legal and execution costs totaling approximately 1.55 million RMB from various disputes, including asset disposals and court fees[158]. - The company has a total of 90 properties mortgaged as collateral for loans, which are subject to priority claims by creditors[156]. - The company has faced execution proceedings with a court transferring 53.25 million RMB from its bank account as part of a ruling[156]. - The company has been actively managing its financial obligations and restructuring efforts to improve its financial health and sustainability[152]. Future Strategies - The company plans to innovate business cooperation models and enhance its supply chain system by introducing strong brands that cater to the preferences of the younger generation in 2021[106]. - The company aims to optimize its existing store structure and improve operational management to maintain stable revenue growth, leveraging discounts and clearance plans to address inventory issues[107]. - The company is actively pursuing online sales strategies, including live streaming and online distribution, to drive consumer engagement and sales growth[110]. - The company is focusing on digital transformation and targeting younger consumer groups, particularly the 80s and 90s generations, who are becoming the main consumers of international high-end brands[101]. - The company is exploring new market opportunities in second and third-tier cities through partnerships and innovative cooperation models, particularly in the duty-free retail sector[109].