Net profit has been declining for three consecutive years

Netprofithasbeendecliningforthreeconsecutiveyears
OntheeveningofApril16,LafangJahwa(603630)releasedthe2019performancereport.Datashowthatin2019,LafangJiahua’sincomewillnotincreaseprofits,anditwillachieveoperatingincome9.6.5billion,anannualincreaseof0.07%;attributablenetprofitrealized4947.940,000yuan,down61everyyear.09%.ThedatashowsthatthisisthethirdconsecutiveyearofnetprofitdeclineforLaFangJiahua.Specifically,accordingtothenumberofreports,LafangJahwaachievedanoperatingincomeof96,484.970,000yuan,anincreaseof71peryear.030,000yuan,anincreaseof0.07%;profittotals5486.460,000yuan,adecreaseof9948everyyear.380,000yuan,adecreaseof64.45%;netprofitattributabletotheparentcompanyis4947.940,000,anannualdecreaseof7769.09,000yuan,adecreaseof61.09%.Attheendofthereportingperiod,thecompany’stotalassetswere192932.220,000yuan,adecreaseof6556fromtheendoflastyear.140,000yuan,adecreaseof3.29%;attributabletotheparentcompany’sequity172511.60,000yuan,adecreaseof5991comparedwiththeendoflastyear.120,000yuan,adecreaseof3.36%.Forthereasonsforthecompany’sperformancechanges,LafangJiahuasaidthatitwasmainlybecausethecompanyincreaseditsofflinepromotionexpensesin2019,strengthenedtheofflinechannel,andsupporteditbytheappropriatepricediscountpolicyofthechannel;thecompanyiscarryingout2019annualinventoryThepricereductiontesttime,theunitpriceofthetestusedtocalculatethenetrealizablevalue,comparedwiththesameperiodlastyear,undertheconditionthatthecompany’sproductcostdifferenceisnotlarge,theinventorydeclinepriceprovisionaccruedin2019isincreasedby4millionyuancomparedwith2018.LafangJiahuasaidthatthecompany’ssubsidiaryDewei(Shanghai)CosmeticsCo.,Ltd.ismainlyresponsibleforthesalesofe-commerceproducts.Duetotheincreaseine-commercechannelexpenseratiosandtheincreaseinendinginventory,Dewei(Shanghai)CosmeticsCo.,Ltd.in2019Theprovisionforfallingpricesofinventoriesincreasedby6millionyuancomparedwiththatin2018.Intotal,increasetheinventoryfallingpricereservebyabout10millionyuan.Inaddition,duetotheimpactofeventsafterthereportingperiod,anincreaseintheprovisionforimpairmentofintangibleassetsandimpairmentofconstructioninprogresswasapproximately6.1million.Sauna,YeWangZhangZeyaneditorChenLiproofreadingWangXin