HARSON(SH:603958)2024-04-26 07:41Financial Performance - The net profit attributable to shareholders for 2023 was -5,330,845.08 CNY, compared to -156,059,015.36 CNY in 2022, indicating an improvement [7]. - The total operating revenue for 2023 was 811,887,920.62 CNY, representing a 6.04% increase from 2022's 765,638,672.56 CNY [22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -19,704,936.97 CNY in 2023, compared to -164,283,768.08 CNY in 2022 [22]. - The company reported a total revenue of 805,741,449.31 CNY after excluding non-main business income, which is a 6.06% increase from the previous year [22]. - The net cash flow from operating activities for 2023 was ¥75,085,960.79, a significant improvement compared to a negative cash flow of ¥95,425,438.44 in 2022 [24]. - Basic earnings per share for 2023 was -¥0.024, an improvement from -¥0.705 in 2022 [25]. - The weighted average return on equity increased from -17.75% in 2022 to -0.66% in 2023, reflecting a 17.09 percentage point improvement [25]. - The company reported a total revenue of ¥238,991,766.41 in Q4 2023, with a net profit attributable to shareholders of -¥4,843,725.44 [28]. - The company achieved a revenue of 811.88 million yuan in 2023, representing a year-on-year growth of 6.04% [34]. - The company's net profit attributable to ordinary shareholders was -533.08 CNY, indicating a loss during the reporting period [46]. Dividend Policy - The company plans not to distribute cash dividends for 2023 due to the lack of profit, as approved by the board [7]. - The company has a total distributable profit of 285,871,366.46 CNY as of December 31, 2023 [7]. - The company has proposed a three-year dividend return plan for 2023-2025, reflecting its commitment to shareholder returns [93]. Sales and Market Performance - Offline sales generated 607.32 million yuan, accounting for 74.80% of total revenue, while online sales contributed 192.73 million yuan, representing 23.74% of total revenue [34]. - The retail sales of clothing and footwear in China reached 1.4095 trillion yuan, with a year-on-year growth of 12.9% [35]. - The online retail sales in China amounted to 15.4264 trillion yuan, growing by 11.0% year-on-year, with physical goods online retail sales at 13.0174 trillion yuan, an increase of 8.4% [35]. - The company’s domestic women's shoe sales accounted for 83.94% of total revenue during the reporting period [41]. - The company integrates online and offline channels, utilizing live streaming, mini-programs, and social media marketing to enhance sales performance [34][37]. Operational Efficiency - The company achieved a gross margin improvement and a decrease in sales expense ratio due to enhanced channel management and cost reduction measures [25]. - The gross profit margin for the wholesale and retail sector was 54.92%, with a 6.06% increase in revenue compared to the previous year [51]. - The total cost of main business operations was CNY 363,458,044.02, down 6.77% from the previous year [55]. - The company reduced its number of physical stores by 104, ending the reporting period with a total of 1,040 stores [46]. Risk Management - The company has detailed potential risks in the report, which investors should review [9]. - The company is facing channel risk due to increasing competition from online channels in the mid-to-high-end women's shoe market, prompting efforts to expand online sales and integrate online and offline shopping experiences [86]. - The company is actively managing inventory to mitigate risks of obsolescence, including increasing promotional efforts and controlling initial order quantities for new products [87]. Corporate Governance - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with legal and regulatory requirements [91]. - The company has established a monitoring system to ensure transparency and compliance with information disclosure regulations, maintaining equal access to information for all shareholders [92]. - The company has appointed new independent directors and has seen changes in the board composition, with several resignations noted [97]. - The company has established a cash dividend policy prioritizing cash distributions, with a minimum of 80% for mature companies without major capital expenditures [118]. Audit and Compliance - The company has received a standard unqualified audit report from Zhongxinghua Accounting Firm [6]. - An independent audit of the internal control effectiveness was conducted, resulting in a standard unqualified opinion [125]. - The audit report emphasizes the importance of evaluating the appropriateness of accounting policies and estimates made by management [199]. - The company is responsible for obtaining sufficient and appropriate audit evidence regarding the financial information of its entities or business activities [199]. Investment and Acquisitions - The company plans to acquire 90% of Jiangsu Langxun, 45% of Suzhou Langkes, and 23.0769% of Suzhou Yeyu through a combination of share issuance and cash payment [85]. - The company is undergoing a merger and acquisition process, with due diligence and audit evaluations ongoing, but the approval of the transaction remains uncertain [88][89]. - The company has made a new equity investment of RMB 28.5 million during the reporting period, including RMB 5 million in Suzhou Zhenzhan and RMB 20 million in Jiangsu Langxun, acquiring a 10% stake [75]. Employee and Management Structure - The total number of employees in the parent company and major subsidiaries is 3,178, with 1,383 in the parent company and 1,795 in subsidiaries [115]. - The company’s training program includes management and business skills training, as well as professional training for specific positions [117]. - The company’s management compensation is aligned with its overall business performance and individual contributions [104]. Environmental and Social Responsibility - The company engaged in charitable donations totaling 50,000 yuan during the reporting period [128]. - The company has not been subject to any administrative penalties due to environmental issues during the reporting period [128]. - The company has not disclosed any significant issues related to its governance or compliance during the reporting period [125].