Red Beans Return To Main Garment Industry Rio Tinto Men'S Chain Monopoly

Although many times stressed that clothing has always been the focus of the company's development, the role of real estate in Jiangsu red bean industrial Limited by Share Ltd (600400.SZ, hereinafter referred to as "red beans") is not to be belittled.

Subject to continuous regulation, in the downturn of the market environment, the real estate business which has contributed most of the revenue contribution has become a drag on Hong Kong's share.

Similar to Hong Kong share, diversified Zhejiang

YOUNGOR (600177.SH) is also in the predicament of slow growth.

Profit halved

The semi annual report released by Hong Kong group revealed that the total profit of the company in the first half of the year was about 26 million 700 thousand yuan, a sharp decrease of nearly 50% compared with the same period last year.

The reason for the decline in profits is that the announcement is mainly due to the decrease in the main business revenue and profits of the Wuxi red bean Real Estate Company Limited (hereinafter referred to as "red bean home").

During the reporting period, the main business income of Hong Kong real estate was 156 million 386 thousand and 600 yuan, down 46.28% from the same period last year, and the operating profit margin decreased by 10.18 percentage points.

As of June 30th, the company's inventory balance reached 3 billion 840 million yuan, a slight increase compared with 3 billion 640 million yuan at the beginning of the year.

In the company's main business, clothing and wool yarn printing and dyeing business performed relatively well.

Among them, the main business income of clothing industry increased by 46.04% over the same period last year, operating profit margin increased by 7.67 percentage points year-on-year, and wool yarn printing and dyeing business increased by 59.26% and 0.54 percentage points respectively.

At the same time, the net cash flow of the company is about -7393 million due to the red bean Plaza project and the capital recovery of Zhenjiang's Jiangnan mansion project.

In fact, the real estate business has contributed a lot to the pformation and performance improvement of Hong Kong stock.

With the continuous increase of manufacturing costs, the profit of single garment manufacturing, processing and wholesale is getting lower and lower.

Since 2005, red bean clothing has been going downhill, and its growth rate has slowed down year by year.

Especially during the financial crisis, the demand for garment processing market was reduced and the foreign trade situation was grim, which posed severe challenges to the company.

At the same time, the gap between red bean and the leading brands such as American Apparel, seven wolves and so on has been widening.

However, after the massive march into real estate, the diversified pformation of red beans was a great help at that time.

In 2010, after the pformation, red bean handed in a beautiful pcript.

In the first half of 2010, the company's main business income increased by 173.41% over the same period last year, and the net profit of the parent company was increased by 77.60%.

This is the first big increase in red beans since 2003.

It is worth noting that the operating income of red bean is 69% of the operating income of Hong Kong stock.

Meanwhile, the operating income of the red bean real estate sector increased by 715.41% over the same period last year, while the operating income of the garment sector increased by only 6.55%.

Return to main business

For the decline of performance, Hong Kong shares admitted that in the first half of 2012, the domestic macro-economy fluctuated and fluctuated. At the same time, the cost of labor and raw materials and other business elements remained at a high level, making the company's profitability level face great challenges.

In addition, the real estate regulation continues, the market waits and sees the status not to reduce, the real estate market is still in the low tide period, causes the company real estate business to face many challenges.

Perhaps it is aware that in the downturn of the market environment, the real estate business can no longer rely on the real estate business. In the half year report, the red bean shares said that in the second half of the year, the company will build the core development of men's clothing chain monopoly, expand shop in strict accordance with the strategic layout, promote the standardization of stores, strengthen operation and commodity control, and improve the performance of single stores.

We should focus on the development of professional group buying business and the rapid expansion of e-commerce channels.

In 2011, Zhou Hongjiang, general manager of red bean, told the media that the men's clothing store had to reach 3000 in 2012.

Similar to Hong Kong share, YOUNGOR has brought real estate business into listed companies for nearly ten years. In 2010, YOUNGOR's contribution to total business revenue amounted to 47%.

However, due to the "most stringent real estate regulation in history", YOUNGOR lost 3 billion 234 million yuan in real estate deliveries due to project cyclical factors, and its revenue and operating profit dropped by 46.94% and 32.12% compared to the same period last year. The cash recovery rate slowed down, the inflow decreased by 2 billion 526 million yuan compared with the previous year, while the payment of land, works and various taxes and fees increased by 2 billion 304 million yuan over the previous year.

The performance of YOUNGOR's real estate business in 2011 only accounted for 1/3 of the expected value.

In July this year, a number of media announced that YOUNGOR will soon return to the traditional clothing industry, and the real estate business will be strictly restricted.

However, the company did not respond to the matter externally.