Slow Growth In Apparel Demand, Net Profit Increased By 15%, Semir Fell 43%

Affected by the macroeconomic downturn, the first half of the year

Demand growth is slow.

And also the United States as a casual clothing enterprise.

A half year report was also released with Semir costumes today. The key factor behind the increase in net profit is the ability to digest inventory.

Obviously, the clothing enterprises which suffered from the macroeconomic downturn in the first half of the year are not having a good time.

Even the leading companies in the industry, the United States and the United States, have failed to escape the fate of Semir clothing.

The semi annual report shows that the total revenue of the company in the first half of this year has increased by 21.21% to 4 billion 600 million yuan, with a profit of 527 million yuan.

The net profit attributable to shareholders of listed companies was 432 million yuan, an increase of 14.83% over the same period last year.

Basic earnings per share also increased, rising from 0.37 yuan in the same period last year to 0.43 yuan.

By comparison,

The first half is even more difficult.

According to its latest semi annual report, the company's operating income in the first half of the year was 2 billion 511 million yuan, down 16.54% from 3 billion 9 million yuan in the same period last year. Compared with the past year, the decline in operating profits was more exaggerated, from 43.41% yuan in the same period last year to 338 million yuan in the first half of this year. Net profit attributable to shareholders of listed companies decreased by 437 million yuan to 248 million yuan, a decrease of 43.22% over the same period last year.

In terms of operating cash flow, Smith Barney's first half of the year was impressive.

Data show that the operating cash flow of American bond in 2010 was -10.5 billion yuan, and -5.5 billion yuan in the middle of 2011. In the second half of 2011, it was reversed in one fell swoop, reaching 980 million yuan in the whole year, and 1 billion 700 million yuan in the first half of 2012. The United States apparel expects that the annual cash flow will be more than 2 billion yuan.

Since 2011, the operating net cash flow has shown a trend of improvement by stages, and the improvement trend has become more evident since the first half of this year.

The cash flow of Semir clothing is difficult to satisfy investors.

Semi annual report shows that in the first half of this year, the net cash flow of Semir clothing was -1.11 billion yuan, which was also -1.68 billion yuan in the same period last year.

High inventory has become an open secret for the industry. To get through the current downturn, the speed of inventory will be a key factor.

In fact, the fact that the performance of American bond clothing and Semir clothing semi annual report is increasing or decreasing is actually a result of going to inventory.

Comparing the two semi annual reports of the two listed companies, the reporters found that they were all affected by the economic environment and the consumer market was in a doldrums. Meanwhile, the United States and the state costumes also said in the annual report that since 2011, the scale and structure of the company's inventory has been decreasing and optimizing by the quarter, and the storage and selling structure has been balanced. Up to the end of the year, the stock has dropped to 1 billion 750 million yuan, and the proportion of the old goods has been declining.

If we consider the volume and turnover of goods in the company's direct operation system, the company's inventory control is at a fairly reasonable level, which is much safer than that of the same industry.

Mei Bang apparel said that since 2011, on the basis of maintaining sustained revenue growth, the company has better controlled the production scale of new products and improved the efficiency of capital utilization. The decline in asset liability ratio shows that management is more comfortable with the management and operation of the company. At the same time, the company's historical inventory has been smoothly realized and cash flow has been increased under the control measures.

It is expected that in the second half of this year, the company's operating cash flow will continue to tend to be abundant, and the scale of interest bearing liabilities will continue to decline, resulting in a steady decline in asset liability ratio.

In the summary of the reasons for Semir's unsatisfactory performance in the first half of the year, the company also said that the company's stock increased, and the corresponding provision for inventory depreciation increased, terminal channel costs and labor costs rose, which increased the company's operating costs.

In addition, the company's management also said that in the second half of the year, the company will set up discount stores and factory stores, increase the sales of e-commerce, and speed up the handling of the company's inventory products.

In fact, the high inventory problem has become the biggest pain in the apparel industry in recent years.

From last year to this year, there were countless clothes enterprises that were not IPO due to inventory problems, such as Wickman dress, wienas fashion, lady house, Shu Lang dress and Hai Lan's home.

Even analysts in the industry say that the inventory of the clothing industry can be sold for three years without new products.

How to effectively deal with inventory will become the key to the survival of this industry. Many enterprises are using discount stores, electricity suppliers, Direct stores and other modes to inventory, but obviously this journey is still long.