Your command seems to have unnecessary and misplaced elements, in my opinion.
-size and -crop do nothing at the beginning of your command.
You have nothing to -strip with rose: image. Furthermore -quality 80 may not be a correct expression for -quality when using PNG output, it is certainly not a percent as with jpg. see
http://www.imagemagick.org/script/comma ... hp#quality
Here is you command
convert -size 111x111 -crop 111x111+0+0 -background "red" rose: -unsharp 0x.5 -write 1tmp1.png \
\( +clone -shave 10x10 -fill gray50 -colorize 50% -mattecolor gray40 -frame 10x10+3+4 -blur 0x2 \) \
-compose HardLight -composite -gravity center -extent 111x111 -strip -quality 80 xyz.png
Here is how I would write it.
convert rose: -unsharp 0x.5 \
\( +clone -shave 10x10 -fill gray50 -colorize 50% -mattecolor gray40 -frame 10x10+3+4 -blur 0x2 \) \
-compose HardLight -composite -gravity center -background red -extent 111x111 xyz.png
There is an issue with either. The -extent is affected by the -compose hardlight. So you should reset the -compose to over afterwards. You get a totally different result.
convert rose: -unsharp 0x.5 \
\( +clone -shave 10x10 -fill gray50 -colorize 50% -mattecolor gray40 -frame 10x10+3+4 -blur 0x2 \) \
-compose HardLight -composite
-compose over -gravity center -background red -extent 111x111 xyz.png
But if that is not what you want, then you need to clarify further. The use of hardlight may not be what you want here.