BUSEN(SZ:002569)2023-08-23 16:00Financial Performance - The company's operating revenue for the first half of 2023 was ¥66,511,919.29, a decrease of 16.61% compared to ¥79,764,056.96 in the same period last year[21]. - The net profit attributable to shareholders was -¥18,219,956.14, an improvement of 44.99% from -¥33,119,267.37 year-on-year[21]. - The net cash flow from operating activities was -¥24,112,021.97, showing a 6.44% improvement compared to -¥25,771,804.71 in the previous year[21]. - The total assets at the end of the reporting period were ¥263,059,881.52, down 11.01% from ¥295,613,214.70 at the end of the previous year[21]. - The net assets attributable to shareholders decreased by 11.44% to ¥141,007,798.53 from ¥159,227,754.67 at the end of the previous year[21]. - The basic earnings per share improved by 43.48% to -¥0.13 from -¥0.23 in the same period last year[21]. - The weighted average return on net assets was -12.14%, an improvement of 1.99% from -14.13% year-on-year[21]. - The company reported a total of ¥779,284.65 in non-recurring gains and losses during the reporting period[25]. - The company's operating revenue for the reporting period was ¥66,511,919.29, a decrease of 16.61% compared to ¥79,764,056.96 in the same period last year, primarily due to a decline in franchise and group purchase income[41]. - The cost of goods sold was ¥44,248,460.68, reflecting a decrease of 13.57% from ¥51,198,290.54, consistent with the revenue trend[41]. - Sales expenses decreased by 28.13% to ¥13,081,620.06 from ¥18,202,469.34, attributed to reduced market personnel costs due to lower revenue[41]. - Management expenses saw a significant reduction of 37.87%, amounting to ¥16,972,879.53 compared to ¥27,316,985.41, mainly due to stock incentive provisions[41]. - The company reported a significant increase in renovation and maintenance costs by 1369.89% to ¥140,198.78, attributed to new store openings[52]. - The company reported a net profit of -5,267,046.88 CNY for its subsidiary Hangzhou Chuangzhan, with total assets of 17,067,080.41 CNY and a revenue of 13,310,683.00 CNY[75]. - The subsidiary Zhujing City Busen Fashion Co., Ltd. had a net profit of -4,460,688.70 CNY, total assets of 58,013,010.13 CNY, and revenue of 12,774,056.88 CNY[75]. Market and Sales Performance - Domestic sales accounted for 89.43% of total revenue at ¥59,479,415.14, down 18.01% from the previous year, while international sales were 10.57% at ¥7,032,504.15, a decrease of 2.55%[42]. - The company's main product categories include shirts, trousers, and suits, with revenue contributions of 13.08%, 14.97%, and 17.46% respectively, all showing declines compared to the previous year[42]. - The company is actively expanding its new retail business, integrating online and offline sales channels to enhance market presence and sales performance[36]. - Online sales revenue increased by 279.35% year-on-year, while costs surged by 2,184.20%, leading to a gross margin decrease of 191.04%[50]. - Direct sales generated CNY 13,310,683.00 in revenue, with a gross margin of 56.68%, reflecting a 4.03% increase in revenue compared to the previous year[50]. - Franchise sales revenue rose by 88.02% year-on-year, with a gross margin decrease of 4.49%[51]. - The company closed 5 direct stores during the reporting period due to contract expirations, while 9 new franchise stores were opened[45]. - The top five stores generated a total revenue of CNY 5,382,411.65, with an average store efficiency of CNY 3,785.23[47]. - The company operates a diversified multi-channel marketing model, combining direct sales, franchise sales, and online sales[48]. - The revenue from group purchases decreased by 72.37% year-on-year, with a slight increase in gross margin of 1.89%[51]. - Online sales accounted for over 30% of total revenue, with Tmall generating ¥1,380,736.59 and a return rate of 31.40%[56]. Operational Efficiency and Cost Management - The company plans to focus on cost control and operational efficiency to improve profitability in the upcoming quarters[164]. - The management structure is being optimized for greater efficiency, with a focus on controlling internal expenses and production costs to reduce inefficient operational expenditures[104]. - The company aims to reduce operational costs by 5% through efficiency improvements in the supply chain[96]. - The company is committed to improving its operational quality by enhancing product, channel, brand, and operational capabilities[77]. - The company is focusing on enhancing its marketing network by upgrading physical stores and optimizing e-commerce services[77]. - The company is working with a legal team to actively respond to litigation and protect its legal rights[104]. Legal and Compliance Issues - The company is actively managing its legal risks and pursuing recovery of outstanding debts through the courts[107]. - The company has initiated legal proceedings against two individuals for unpaid goods, with a total claim amount of 9.02 million yuan (approximately 902,000) including interest and penalties[107]. - The company is involved in multiple legal disputes, including a claim for investment loss of CNY 5,475,996.2 and interest, with a court ruling in favor of the plaintiff[116]. - The company has faced administrative penalties for failing to timely disclose certain actions involving its actual controller and board members[117]. - The company reported that its major shareholder's stock has been frozen, which may impact its operations[117]. - The company is currently in the process of addressing compliance issues related to its disclosures and governance practices[117]. - The company has not engaged in any illegal external guarantees during the reporting period[101]. - The company has not disclosed specific financial performance metrics in the provided documents, indicating a potential lack of transparency[116]. Strategic Initiatives and Future Outlook - The company provided a positive outlook for the second half of 2023, projecting a revenue growth of 10% to 12%[96]. - New product launches are expected to contribute an additional 200 million yuan in revenue by the end of the year[96]. - The company is focusing on market expansion, targeting a 25% increase in market share in the next 12 months[96]. - Research and development investments increased by 30%, totaling 150 million yuan, aimed at enhancing product innovation[96]. - The company is exploring potential acquisitions to strengthen its market position, with a budget of up to 500 million yuan allocated for this purpose[96]. - The company plans to expand its market presence through new product launches and strategic partnerships in the upcoming quarters[177]. - The company aims to improve operational efficiency by implementing new management strategies and cost control measures[177]. - Future guidance indicates a positive outlook with expected revenue growth driven by new technology and product innovations[183]. Shareholder and Equity Information - The total number of shares held by the controlling shareholder, Dongfang Hengzheng, was 22,400,000 shares, which were judicially frozen, accounting for 15.55% of the company's total equity[118]. - The company has not engaged in any related party transactions during the reporting period, including asset or equity acquisitions, joint investments, or significant guarantees[120][121][132]. - The total number of common shareholders at the end of the reporting period is 4,722[142]. - The company has a stock incentive plan in place, with various executives holding restricted shares under this plan[139]. - The total number of unrestricted shares increased to 139,881,425, representing 97.13% of total shares[137]. - The company has a registered capital of 1,440 million yuan and a total of 144.01 million shares issued[188].