Search For Net Profit In The First Half Of 185 Million Yuan, Clothing Business Income Of 628 Million Yuan

In August 27th, she released the 2019 semi annual report. In the first half of the year, the business revenue of special operations reached about 6 billion 77 million yuan, down 44.14% compared to the same period last year. Net profit attributable to shareholders of listed companies was about 185 million yuan, down 56.94% compared with the same period last year. Net profit attributable to shareholders of listed companies after deducting non recurring gains and losses was about 160 million yuan, down 48.27% compared to the same period last year. The basic earnings per share were 0.06 yuan.

The operating income of the company during the reporting period has dropped by 44.14%, mainly due to the more serious and complex macroeconomic environment, the increasing uncertainties in the international trade environment and the domestic economic cycle.

(1) sales of materials decreased by 46.01% during this period, and material sales accounted for 82.94% of operating income. This is the main reason for the decrease in operating income this period. Materials mainly include cotton yarn, cloth, accessories, etc. material business income is mainly generated by supply chain management business.

During the reporting period, the supply chain management business achieved a total operating income of 5 billion 82 million yuan, accounting for 83.49% of the company's total revenue, down 44.01% from the same period last year, and net profit of 69 million 316 thousand and 200 yuan, down 70.40% from the same period last year.

With the downward pressure on the economy, the company continued to slow down the pace of supply chain management during the reporting period, and the Shaoxing International Association of atomic companies changed from a controlling subsidiary to a joint venture in October 2018. It was no longer included in the consolidated statements of the company (the Shaoxing Xing Lian realized 1 billion 882 million yuan in the same period last year), which made the supply chain management business decline considerably compared with the same period last year.

The announcement shows that the company has 12 supply chain management subsidiaries in Guangdong, Dongguan, Zengcheng, Foshan, Hubei Jingmen, Jingzhou, Jiangsu, Wujiang, Nantong, Nantong, Nantong and so on. In the first half of 2019, the price of raw materials such as cotton and cotton yarn decreased, leading to a decrease in the gross profit margin of supply chain management business compared with the same period last year. The gross profit margin of material sales decreased from 5.45% to 4.55%, and the net profit of supply chain management business also declined.

(2) the domestic consumer demand for textile and apparel is in the doldrums. During the reporting period, the brand apparel business achieved a total operating income of 628 million yuan, down 23.19% from the same period last year. In terms of brand apparel operation, it is mainly engaged in the design and sales of "fashion frontline" brand clothing. Consumers of "fashion frontline" brand clothing are positioned as young people of 16-35 years old. The price is positioned as a fast fashion for parity, and the market is positioned as the three or four line market in China. Through the combination of direct and franchising, the company has established a sales channel in the whole country, and has established a leading competitive edge in the domestic three or four line market.

(3) during the reporting period, the market demand was weak, and the other fashionable electronic products business decreased considerably compared with the same period last year. The operating income of the report period reached 3.58 billion yuan, down 49.05% from the same period last year.