HARSON(SH:603958) Mei Ri Jing Ji Xin Wen·2025-11-01 05:01Core Viewpoint - Hason Co., Ltd. has experienced revenue growth but continues to face losses, primarily due to challenges in its traditional footwear business while expanding into new sectors like precision metal components and industrial automation [1][3]. Financial Performance - In the first three quarters, Hason reported a revenue increase, with losses narrowing, attributed to the growth in precision metal components and industrial automation [1]. - The company has recorded a net profit loss for five consecutive years, with a projected loss of 96.41 million yuan for 2024 [3]. - As of September 30, the company had an undistributed profit loss of 78.67 million yuan, which is one-third of its paid-in capital of 219 million yuan [1]. Business Segments - The footwear segment has seen a decline in revenue and an increase in losses, with a 10.82% decrease in offline revenue year-on-year for the first half of 2025 [3]. - In the first three quarters of 2025, the footwear business generated 490 million yuan in revenue, a 13.13% decrease, accounting for 46.29% of total revenue [3]. - The company has not considered downsizing or divesting its footwear business despite ongoing losses [3]. Strategic Initiatives - Hason is optimizing its footwear business by enhancing store operations and improving online sales capabilities, including acquiring minority stakes in e-commerce subsidiaries [4]. - The company is exploring AI applications in retail to enhance customer experience and operational management [4]. - To address inventory issues, Hason plans to increase promotional efforts and strictly manage stock levels [4]. New Business Ventures - Hason has expanded into precision metal manufacturing and 3D printing, although these new ventures have yet to become profitable [5][8]. - The company has made acquisitions to enhance its capabilities in precision metal components, targeting sectors like consumer electronics and renewable energy [6][7]. - As of the third quarter of 2025, the new subsidiaries in renewable energy and 3D printing have not yet achieved profitability [8]. Cash Flow and Financial Health - The net cash flow from operating activities for the first three quarters was 32.46 million yuan, primarily due to improved cash flow from the footwear segment and new precision metal business [6].