Semir'S Second Trimester Net Profit Continues To Decline

On the evening of July 12th,

In the first quarter, the net profit in the first half of the first quarter was downwards adjusted. The company expects net profit attributable to shareholders of Listed Companies in the 1-6 months down 35%-45% compared with the same period last year, with a profit of 241 million yuan and -2.84 billion yuan.

The company said that the reasons for the decline in performance were mainly attributed to three aspects: first, the impact of factors such as slowing down of macroeconomic growth, terminal channel costs and market competition intensifies, resulting in a year-on-year decrease in income; two, the increase in the inventory of the company's stock in the past quarter, and the corresponding increase in the inventory price drop, resulting in a decrease in the company's profits; three, the company's marketing network construction project is in its investment phase, and at the same time, it has invested heavily in product development, industrial park construction, product promotion, and so on, resulting in a larger increase in operating costs.

Prior to this, in April 23rd, state securities issued a research report that Semir apparel performance decline in the short term is difficult to reverse.

It is also said that the recovery of terminal demand will be a long process.

The adjustment will take a painful period.

At the same time, the company began to turn its attention from clothing to real estate.

In June 13th, Semir clothing announcements indicated that the company intends to raise 156 million yuan to acquire 100% stake in Zhejiang Chinese Industrial Development Co., Ltd. and inherit the corresponding debt.

Among them, the share pfer price is 49 million yuan, and the inherited debt is 107 million yuan.

After the paction is completed, the company will acquire the ownership and the right to use the land at 236 Yanan Road, Shangcheng District, Hangzhou, Zhejiang.

The bulletin shows that the 1-4 estate of the property has been leased to Hangzhou Bang Wei costumes Co., Ltd. (a wholly owned subsidiary of rival American bond clothing) as a storefront. The lease period will expire as of February 28, 2013. The 5-6 level will be leased to individuals for use as a guesthouse, and the lease period will be up to May 31, 2014.

After the lease expires, Semir clothing will set up its own network here.

According to the planning of Semir clothing, the future use as a store will help to enhance the brand image and sales performance of Semir brand and Barbara brand in Hangzhou.

For this reason, the real estate located in the core business circle of Hangzhou has made Semir dress willing to take out three times premium.

At present, behavior is among teenagers.

With the increasingly fierce competition in the industry, the high-end market has been impacted by the international fast fashion brands such as ZARA and H&M, which are accelerating the entry into the Chinese market. The low-end market needs to face the impact of regional brands from online shopping and lower prices.