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In The First Half Of The Year, The Net Profit Of GELIS Is 200 Million! It Mainly Relies On "Three Measures And Five Strategies" To Fight The Epidemic

2020/9/2 10:26:00 181

GoliathThe First Half Of The Year

The sudden epidemic in 2020 has a profound impact on the impact of local clothing brands. Shenzhen GELIS Clothing Co., Ltd. (hereinafter referred to as "GELIS") recently released its report card for the first half of 2020. During the reporting period, the company realized a business income of about 814 million yuan, a year-on-year decrease of 35.7%; the net profit attributable to the parent was about 262 million yuan, with a year-on-year increase of 37.77%; the net profit after deducting non return to the mother turned into a profit from the first quarter, about 9.5272 million yuan.

As of the end of the report period, there were 299 terminal stores for Ellassay, 142 for edhardy series, 50 for Laur è L, 61 for iroparis (including China) and 1 for self portal.

As of June 30, 2020, the total assets of golis are RMB 3336 million, including RMB 1.366 billion of overseas assets, accounting for 40.97% of the total assets.

By brand:

By the end of the reporting period, there were 299 stores, 161 Direct stores and 138 distribution stores;

Laurel's operating revenue decreased by 6.61% to RMB 51 million, with 50 stores (2 net closed) as of the end of the reporting period;

As of the end of the period, the revenue of eddy stores in Hong Kong and Macao decreased to RMB 101.9 billion, which was lower than that of Hardy's 41 stores and Hardy's Direct stores, respectively;

There are 61 stores directly operated by iro worldwide, contributing 226 million yuan of operating revenue;

Self portal has completed the first offline self operated store located in Beijing SKP shopping mall and launched tmall's official flagship store online, with a revenue of 1956600 yuan and a gross profit margin of 83.02%.

Shi Hongmei, an analyst at Dongfang securities, said that at a time when the epidemic hit various brands and were affected by offline sales downturn to varying degrees, GELIS actively opened up revenue through new models such as e-commerce and live broadcasting, and reduced expenditure by strictly controlling expenses, concentrating resources on superior brands, and enhancing operational efficiency, and flexible supply chain controlled inventory. With the recovery of domestic offline channels, it is expected that domestic sales will gradually recover in the second quarter. The investment income (about 327 million) confirmed by the transfer of baiqiu equity in the first quarter will support the net profit in 2020, and also provide strong financial support for the expansion and extension of Goliath's channels and brands in the future.

According to the public information, baiqiu network was established on September 16, 2010, and was incorporated into gelix group in September 2016. At present, baiqiu e-commerce, baiqiu shoes, baiqiu warehousing, baiqiu advertising and other subsidiaries have been established. Among them, baiqiu e-commerce, a subsidiary, has established long-term cooperative relations with more than 50 international fashion brands, especially light luxury brands, after nearly 10 years of precipitation and development since its establishment in 2011. It has continuously provided international fashion brands with integrated online and offline brand consulting, brand e-commerce operation, digital marketing, warehousing and logistics, it solutions and new retail Link service. Since 2013, baiqiu e-commerce has been awarded the title of "Golden Amoy partner" by tmall for six consecutive times. Since 2016, baiqiu e-commerce has been a "six-star service provider" of tmall for many times, and has become the industry leader in the field of light luxury and luxury brand services.

At that time, the acquisition of baiqiu network was also aimed at achieving multiple purposes: first, to strengthen the company's Internet operation capability to better capture the development opportunities brought by new market changes; second, to improve the company's channel layout to provide better sales and promotion channels for its multi brands; third, to enhance the brand synergy effect and help the company connect with more international brand assets Fourth, expand the performance space of GELIS, and provide better performance contribution in network sales.

According to the financial report, the net profit scale of baiqiu network increased from 26.954 million yuan in 2016 at the beginning of acquisition to 67.828 million yuan in 2019. Since then, the growth rate of 2016, 2017, 2018 and 2019 reached 26.3%, 85.2%, 20.5% and 12.8% respectively.

In addition, on December 15, 2019, Goliath issued an announcement to transfer 28.69% equity of Shanghai baiqiu Network Technology Co., Ltd. (hereinafter referred to as "baiqiu network") to Sequoia fashion technology industry equity investment fund and Hangzhou Jiebai, with a total equity transfer price of about 344 million yuan. After the completion of the transaction, the founding shareholder and the person acting in concert will become the actual controller of baiqiu network, holding 31.06% of the total shares; Sequoia will hold 27.75% of the shares, while GELIS will still hold 27.75%. In addition, baiqiu network will receive a capital increase of 150 million yuan from Sequoia. In this regard, Xia Guoxin, chairman of GELIS, said that baiqiu will still play an important strategic synergy in the future strategic planning of the group.

On March 27 this year, Geli publicly said that baiqiu network, the original holding subsidiary of the company, introduced strategic investors by means of capital increase and share expansion and equity transfer. The company's shareholding ratio of baiqiu network decreased from 75% to 27.75%, and the actual controller of baiqiu network was changed to its founder shareholder and the person acting in concert. Baiqiu network is currently in the stage of rapid business expansion, and independent listing is not ruled out in the future.

Ding Shijie, a researcher at Guoxin Securities, said that with the outbreak of the epidemic, great changes have taken place in the clothing industry, prompting GELIS to rush to a new track in the future. At present, golisys is also well prepared to continue to be affected in the third quarter, and has made the following measures to better tide over the difficulties: first, customer-centered, start full-time marketing; second, flexible and rapid adjustment of production plans, the implementation of high-speed reverse ratio; at the same time, streamline the establishment, control costs, strictly control costs. At present, the company's various initiatives have achieved good results, and the off store sales and live broadcast participation are excellent.

It is also understood that during this year, the brand development initiatives and plans of golisys mainly include:

1. The main brand, GELIS, will maintain steady development, sink channels and promote the people-friendly line, and maintain strict control of quality and speed.

2. Issue fixed increase to acquire iro brand and realize 100% control right. On October 14, 2019, Goliath acquired 43% of the shares of adonworldsas from elyonesarl through its wholly-owned subsidiary for a consideration of EUR 89.5 million. After the completion of the transfer, the company will have 100% of the rights and interests of adonworldsas, and further realize the Global 100% control of the IRO brand. The sales scope of IRO brand covers many countries and regions. As of December 30, 2019, there are 58 stores in the world. The chic and relaxed fashion style of IRO rock is widely welcomed in the world. Its revenue scale is 674 million yuan, accounting for 25.81% of the total business income. It is expected to contribute new growth highlights for golisys.

As the only brand with overseas business, iro accounts for about 20% of its overseas sales revenue, and most of its profits are contributed by China. The opening of stores in Germany and the Netherlands has achieved good results, and their global stores will resume business in the near future. The uncertainty of overseas epidemic situation is large, but the company has made corresponding preparations.

3. Joint venture of self portal brand in mainland China to open online stores. The official flagship store of self portal has been officially launched in the first quarter, further enriching the company's high-end brand lineup. The company has a strong brand operation ability, and it is expected that self portal will start to make profits after a short period of incubation.

4. The ED hardy brand experienced a short period of fluctuation. Goliath actively adjusted the channels and products of the ED hardy brand, and adjusted the product style to be more popular and not too strong. At present, Macao business is still suspended, which is expected to be greatly affected this year. However, the company keeps optimistic about the development of ED hardy for a long time.

5. Laurel brand will continue to sink in the future and its profitability is expected to be strengthened. In 2019, laurel achieved a steady growth of 4.86%, with a gross profit of 78.48%, with the highest gross profit margin among all brands of the company. At present, it continues to expand in the important position of the front line, on the other hand, it will continue to sink, which is expected to enhance profitability.

In the long run, Ding Shijie believes that GELIS is committed to the improvement of brand matrix and the globalization of enterprises. At present, GELIS has seven high-end fashion brands, covering the needs of different market segments. With the advantages of sales channels and management experience, the company has successfully opened up the market of international brands in China. The increased capital and holding of IRO is expected to become a new growth spot. The self portal, a joint venture, has opened a tmall online store, which is expected to achieve brand profits as soon as possible.

According to public information, the main business of Goliath is the design, development, production and sales of brand fashion. The company's brands mainly include Chinese high-end fashion brand Ellassay, German high-end women's wear brand Laur è L, American luxury fashion brand ed hardy, French designer brand iroparis and British contemporary fashion brand self portrait.


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