ZOENN DESIGN(SZ:300901)2024-03-29 16:00Financial Performance - The company's performance declined compared to the same period last year, primarily due to significant decreases in foreign exchange gains and losses from new e-commerce ventures, which are still in the early stages [4]. - The company's operating revenue for 2023 was ¥490,507,105.35, a decrease of 14.24% compared to ¥571,928,825.25 in 2022 [26]. - Net profit attributable to shareholders was ¥21,345,628.06, down 71.05% from ¥73,755,393.77 in the previous year [26]. - Basic earnings per share decreased by 70.97% to ¥0.09 from ¥0.31 in 2022 [26]. - The company's net assets attributable to shareholders decreased by 1.59% to ¥1,027,073,494.97 from ¥1,043,721,131.79 in 2022 [26]. - The company reported a total of ¥3,304,042.36 in government subsidies for 2023, down from ¥11,420,567.67 in 2022 [34]. - The company experienced a net loss in the fourth quarter of 2023, with a net profit of -¥3,782,459.28 attributable to shareholders [30]. - The design business generated revenue of CNY 52.09 million, down 20.31% from CNY 65.37 million in the previous year [68]. - The supply chain integration business accounted for 79.55% of total revenue, totaling CNY 390.18 million, a decline of 5.57% from CNY 413.19 million [68]. - The footwear production business saw a significant drop of 50.80%, with revenue of CNY 45.71 million compared to CNY 92.90 million in 2022 [68]. Cash Flow and Investments - The cash flow from operating activities improved significantly, reaching ¥16,596,204.90, a 160.83% increase from -¥27,281,656.42 in 2022 [26]. - The total amount of cash inflow from operating activities was ¥818,085,089.55, reflecting a 29.18% increase from the previous year [82]. - The net cash flow from investment activities decreased by 77.50% to -¥183,090,338.07, attributed to investments in new projects [82]. - The company reported a significant increase in management expenses by 90.07% to ¥42,160,059.07, primarily due to increased depreciation of leased assets [79]. - The company reported a credit impairment loss of 27.41%, primarily due to expected credit losses on accounts receivable [84]. - The company has a total of CNY 164.14 million in unused fundraising funds as of December 31, 2023 [97]. - The company reported a net profit of 737.16 million CNY from its subsidiary Wenzhou Zhongyin Design Co., Ltd., contributing significantly to overall performance [104]. Market Trends and Industry Insights - The global footwear market size is expected to reach $445 billion in 2023, with China's footwear industry market size reaching ¥450.2 billion in 2022 [38]. - The women's footwear market accounts for approximately 50% of the global footwear market, indicating significant growth potential in this segment [42]. - The children's footwear market is experiencing rapid growth, driven by the three-child policy and increasing consumer focus on quality, with 248 million children under 15 in China as of the end of 2023 [43]. - The footwear design industry is projected to have a theoretical market value of approximately $178 billion in 2023, based on a 40% profit share from the design segment of the footwear value chain [44]. - The footwear industry is shifting from OEM production to self-research and design, indicating a clear trend of industrial upgrading [38]. - The "fast fashion" trend is accelerating market iteration, requiring companies to enhance their design capabilities and speed to market [42]. - Mid-range and mass-market brands dominate the footwear market, with a focus on comfort, price sensitivity, and design diversity [41]. Design and Innovation - The company is focusing on enhancing its product design capabilities to align with global fashion trends and consumer preferences [18]. - The company has identified pattern design as a new growth point for profitability, alongside its core footwear design services [37]. - The company is investing in new technologies and product development to stay competitive in the fashion industry [18]. - The company has a design team of 100 people, capable of producing nearly 10,000 shoe designs annually, showcasing its scale and centralized design capabilities [49]. - The company emphasizes the importance of design in enhancing product value and competitiveness for small and medium-sized enterprises [47]. - The company has established a strong reputation in the industry, becoming a design partner for well-known brands such as Poland's CCC, enhancing its market presence [53]. - The company has a modular design process that significantly improves design efficiency compared to smaller studios, allowing for rapid production [60]. Corporate Governance and Compliance - The company strictly adheres to corporate governance regulations, ensuring compliance with relevant laws and improving governance standards [117]. - The company maintains independence from its controlling shareholder in business, personnel, assets, and finance, ensuring a complete and autonomous operational capability [126]. - The company has established a transparent performance evaluation and incentive mechanism for its directors and senior management, ensuring compliance with legal standards [123]. - The company has a complete and independent financial accounting system, ensuring no shared bank accounts with its controlling shareholder [131]. - The company has a dedicated investor relations management system to ensure accurate and timely information disclosure to shareholders [122]. - The company has established various specialized committees within the board to provide professional advice for decision-making [120]. Shareholder Returns and Dividends - The profit distribution plan approved by the board is to distribute a cash dividend of 1.5 RMB per 10 shares (before tax) to all shareholders, based on a total of 236,939,934 shares [6]. - The total cash dividend, including other methods, amounts to RMB 51,984,750.22, representing 100% of the total profit distribution [158]. - The company plans to distribute a cash dividend of RMB 1.5 per 10 shares, totaling RMB 35,540,990.10 (including tax) based on a total share capital of 236,939,934 shares [159]. - The employee stock ownership plan includes 26 employees holding a total of 2,396,000 shares, representing 1.00% of the company's total share capital [160]. Employee and Workforce Management - The total number of employees at the end of the reporting period is 434, with 126 in the parent company and 308 in major subsidiaries [155]. - The company has established a flexible compensation system linked to performance, ensuring employee interests are safeguarded [156]. - The company has implemented a training system that includes both internal and external training programs to enhance employee skills and professional development [157]. - The company has a total of 50 employees with a bachelor's degree or higher, representing approximately 11.5% of the workforce [155]. Risk Management and Challenges - The company acknowledges the impact of domestic and international economic changes on its business operations and revenue [4]. - The company emphasizes the need for investors to recognize risks associated with forward-looking statements and understand the differences between plans, forecasts, and commitments [4]. - The company has not reported any risks identified by the supervisory board during the reporting period [154].