Semir'S Annual Profit Increased By Nearly 50%. The Gross Profit Margin Of Children'S Clothing Business Is Much Higher Than That Of Casual Wear.

Zhejiang Semir apparel Limited by Share Ltd (002563.SZ) released a full report on Thursday, a year-round net profit increase of 48.83% to 1 billion 693 million 600 thousand yuan, a net profit of 30.14% to 1 billion 334 million 200 thousand yuan.

During the reporting period, Semir achieved a revenue of 15 billion 719 million 100 thousand yuan, an increase of 30.71% over the 12 billion 26 million 300 thousand yuan in 2017, of which the electricity business revenue was 4 billion 108 million 800 thousand yuan, an increase of 31.64%.

Children's clothing business became the core of the group in 2018, with an increase of 39.60% to 8 billion 824 million 700 thousand yuan in the period, an increase of 358 basis points from 56.14%, and a 42.23% increase in gross profit margin for children's clothing business, up by 71 percentage points from the same period last year, which is much higher than the gross margin of 36.98% of casual wear, although the gross profit margin of the latter in 2018 has risen by 767 basis points.

In 2018, Semir spent 110 million euros, or about 844 million yuan, to acquire Sofiza SAS 100% equity and creditor's rights held by Inchiostro SA, thus achieving the purpose of buying all the assets of children's wear group Kidiliz, and the CATIMINI brand of the children's clothing group has opened its first store in China.

In addition, Semir clothing also introduced the North American leading children's clothing brand The Children 's Place, while in the adult clothing business sector, the company invested in the American designer brand JASON WU, and joint venture with Jason Wu (Shanghai) Garments Co., Ltd. to operate the Chinese market business.

At the same time investing in new brands, Semir at the end of last year sold 20% Korean electric business ISE Commerce Co Ltd (069920.KQ) shares of 20 billion 70 million 200 thousand won, or about 122 million yuan.

As of the end of last year, Semir clothing ran 9123 stores (excluding Kidiliz), a year-on-year net increase of 700, of which 763 Direct stores grew by 84, and 8360 stores increased by 616.

Kidiliz stores decreased by 20 to 782 last year.