WLM(SZ:300591)2022-04-26 16:00Financial Performance - The company reported a significant loss due to a decline in group purchasing sales, which accounted for 61.54% of total revenue in 2021, down from 76.53% in 2020 and 70.60% in 2019[5]. - Group purchasing sales amounted to 203.68 million yuan in 2021, a decrease from 261.67 million yuan in 2020 and 476.54 million yuan in 2019[5]. - The company's operating revenue for 2021 was ¥339,287,548.81, a decrease of 1.25% compared to ¥343,593,789.63 in 2020[23]. - The net profit attributable to shareholders was -¥130,952,249.05, an improvement of 9.82% from -¥145,205,499.79 in the previous year[23]. - The total assets at the end of 2021 were ¥764,534,399.45, down 27.44% from ¥1,053,633,083.92 at the end of 2020[23]. - The net assets attributable to shareholders decreased by 26.70% to ¥358,808,701.75 from ¥489,535,047.10 in 2020[23]. - The basic earnings per share for 2021 was -¥0.3972, an improvement of 14.65% from -¥0.4654 in 2020[23]. - The company reported a quarterly revenue of ¥111,479,338.14 in Q4 2021, with a net profit of -¥94,711,841.94[26]. - The company received government subsidies amounting to ¥2,412,217.70 in 2021, compared to ¥1,190,084.88 in 2020[29]. Market Trends and Industry Analysis - The overall industry is experiencing intensified competition, but the footwear and apparel sector remains a significant consumer industry with growth potential as the pandemic is effectively controlled[7]. - The leather goods industry in China is characterized by a low entry barrier and a highly competitive market, with many small and medium-sized enterprises present[35]. - In 2021, the revenue of the leather, fur, and footwear industry reached CNY 1,105.72 billion, with a year-on-year growth of 8.2%[43]. - The profit total for the leather goods industry in 2021 was CNY 57.74 billion, reflecting a year-on-year increase of 1.5%[43]. - The consumer spending on clothing and footwear in 2021 was CNY 1,384.2 billion, showing a year-on-year growth of 12.7%[47]. - The average disposable income per capita in China was CNY 35,128 in 2021, with a nominal growth of 9.1% year-on-year[47]. - The leather industry is currently facing challenges due to the impact of the COVID-19 pandemic, leading to reduced consumer spending and increased demand for medical protective supplies[47]. - The market for mid-to-high-end leather goods is rapidly growing, with brands like Wanlima and Belle International leading the segment[40]. - The overall leather industry sentiment index was reported at 89.42 in December 2021, indicating a cooling trend in the market[44]. Company Strategy and Operations - The company is focusing on risk management and strategies to address potential operational challenges in the future[9]. - The company has indicated a focus on expanding its market presence and enhancing product development strategies moving forward[33]. - The company is positioned to benefit from the "military-civilian integration" strategy, with single-soldier protective equipment expected to become a new growth driver[57]. - The company has developed multiple sales channels, including group purchasing, direct sales, e-commerce, and wholesale, with group purchasing showing strong growth potential[57]. - The company aims to enhance brand recognition and user interaction while rapidly achieving digital transformation to improve operational efficiency[59]. - The company has established a multi-brand structure with three proprietary brands and multiple agency brands, focusing on differentiated market needs[67]. - The company has signed exclusive online sales rights for AUPRES/欧珀莱 cosmetics on Douyin, enhancing its market presence in the beauty sector[66]. - The company aims to enhance its market coverage by rapidly expanding its wholesale agent channels, selecting high-quality agents based on operational efficiency and credibility[82]. - The company has integrated its online and offline channels through the acquisition of Chaoqi Technology, enhancing its e-commerce sales potential[79]. Product Development and Quality Control - The company emphasizes quality control by supervising external production processes and conducting strict quality inspections before products enter the warehouse[73]. - The company collaborates with well-known domestic and international suppliers, ensuring high production capacity and stable product quality[70]. - The company’s product offerings include a diverse range of bags, shoes, and accessories, with a focus on both self-production and external manufacturing partnerships[72]. - The company has a robust R&D team that aligns product launches with luxury brand timelines, enhancing market competitiveness[94]. - The procurement of raw materials is strictly controlled, with a focus on quality and compliance with international standards[96]. - The company aims to enhance its product technology and competitiveness through collaborations with universities and research institutions[101]. Financial Management and Investment - The company has committed to investing a total of ¥12,759,000 in the smart manufacturing upgrade project, with ¥12,029,700 already invested[157]. - The company plans to use up to ¥17,000,000 of idle fundraising for temporary working capital, with a usage period not exceeding 12 months[154]. - The company has experienced delays in project progress primarily due to the impact of the COVID-19 pandemic[157]. - The total amount raised from the issuance of convertible bonds was ¥180,290,000, with a net amount of ¥172,987,142.45 after deducting issuance costs[153]. - The company has temporarily used 50 million RMB of idle raised funds to supplement working capital, with a remaining balance of 169.9147 million RMB as of December 31, 2021[160]. Challenges and Risks - The company has identified risks related to economic fluctuations that could impact consumer demand for leather goods, emphasizing the need to enhance brand value to mitigate these risks[178]. - The company reported accounts receivable of 454.87 million, 405.24 million, and 247.21 million CNY at the end of 2019, 2020, and 2021, respectively, indicating a potential risk to cash flow and financial stability[182]. - The company will strengthen accounts receivable management and collection to improve capital turnover efficiency[183]. - The company has accumulated a rich supplier resource to mitigate the risk of raw material price fluctuations, which include leather, lining, and hardware accessories[184]. Store and Sales Channel Management - The company reported a total of 57 retail stores at the end of 2021, down from 85 at the beginning of the year, indicating a closure of 28 stores[84]. - The direct sales channel saw a reduction in profitability due to the impact of e-commerce and rising rental costs, leading to adjustments in underperforming stores[84]. - The company closed 29 stores during the reporting period, including 5 direct-operated and 24 franchised stores, due to insufficient foot traffic[108]. - The number of terminal stores decreased due to increased closures, impacting sales channels significantly[87]. - The company has adjusted its direct sales strategy by closing underperforming stores to improve overall operational efficiency and profitability[180].