Because The Profit Of Garment Enterprises Is Too Low, Senma "Adjoins" China Resources To Develop Commercial Real Estate

Zhejiang Sima Clothing Co., Ltd. (hereinafter referred to as“ Sima Clothing ”, 002563. SZ), the recent frequent real estate purchases and huge land purchases have made this enterprise more and more "heavy".

The most recent transaction occurred on September 5, when the South Lake E-1-10 plot in Ouhai District, Wenzhou City was successfully won by a consortium such as China Resources Land (Zhengzhou) Co., Ltd. at a price of 753.98 million yuan, with a transferred area of 74731.70 square meters. The successful listing of the plot means that China Resources Wenzhou MIXC is about to land. Yesterday, the foundation of this project was laid in Wenzhou.

This joint venture company is composed of Sima Group and China Resources Group, a state-owned enterprise. "In the jointly established companies, Sima accounts for 49% of the shares and China Resources accounts for 51%." Qiu Guanghe, chairman and president of Sima Group Co., Ltd., told the reporter of the First Finance and Economics (Microblog) Daily that he had investigated the project of MIXC in Shenzhen before, and then the two sides hit it off.

　 Look at each other

Similarly, the MIXC complex projects of China Resources in various places, from the experience of previous operations, whether in Wuxi, Hangzhou or Ningbo, are all looking for partners to share risks.

A source said that this reduced the risk because the MIXC project is a long-term and large investment, so we need to find partners to share the risk, and China Resources also relies on the other party's investment in capital.

For China Resources, this is a good time to "hoard flour". In the last 15 days, China Resources has attacked everywhere in Xi'an, Wenzhou, Chengdu and other places, and hoarded nearly 800 mu of land.

Therefore, it is a good way to find suitable partners.

This is also a good opportunity for Sima to enter the real estate market. It is reported that the transfer area of Nanhu Plot E-1-10 is 74731.70 square meters, which is planned to be commercial land compatible with residential land. This price is not easy in Wenzhou, where "every inch of land is worth every inch of money".

What's more, in the complex project of MIXC Wenzhou, there is also the high-end real estate brand "Yuefu" under China Resources. For Sima, the profit space of this project seems to be much larger than that of the clothing industry.

In the 2012 strategic plan of Sima Garments, it has already set the goal of "developing in the first and second tier cities" Flagship store The way of opening large stores and high-quality stores will improve the overall operating efficiency. In the relatively blank areas of third and fourth tier cities, it is important to accelerate the pace of expansion and enter potential emerging business districts.

　　 Performance pressure

Before this land purchase, Sima had already tried in real estate.

In May this year, Sima Garments announced that in order to obtain the land use right and house ownership of the house in Yan'an Road of Huahua Industry, it plans to use the raised funds of 156 million yuan to acquire 100% of the equity of Zhejiang Huahua Industry, hoping to improve the brand image and sales performance of the company's Sima brand and Balabala brand in Hangzhou. For this real estate located in the core business district of Hangzhou, Sima Garments paid three times the premium price.

Different from the asset heavy model of traditional garment manufacturing enterprises, Sima Garments, which operates popular casual clothing brands, implements the agency system, and all product production is outsourced. This asset light business model has always been the inherent advantage of Sima Garments.

In terms of real estate, Sima Garments always emphasizes that it is to increase and expand stores. However, under the dual pressure of rising costs and lagging brand upgrading, Sema Garments experienced a decline in performance at the beginning of the second year of listing. In the first quarter of this year, the net profit of Sima Clothing fell by nearly 40%, and the inventory also increased by 21.7% compared with the end of 2011.

According to the China Daily News, as of June 30 this year, the revenue and net profit of Sima Garments had declined more significantly. In the first half of the year, the company achieved a revenue of 2.511 billion yuan, a year-on-year decrease of 16.54%; The net profit was 248 million yuan, a year-on-year decrease of 43.22%.

In terms of inventory, Sima Garments has not been well controlled. In the first half of the year, the inventory of Sima clothing reached 1.473 billion yuan, nearly 30% higher than the same period last year, with a month on month increase of 10%. The inventory revenue ratio and inventory turnover days have increased to varying degrees.

　 Favor real estate

Like Sima Garments, Meibang Garments, which is mainly engaged in casual clothes, has also set foot in a big deal in commercial real estate.

In 2009 alone, Meibang Garments bought or rented 39 commercial properties in 19 provinces and cities across the country, with a total investment of more than 1 billion yuan.

Meibang Clothing once said that while the domestic leisure clothing market is expanding, the domestic economy continues to rise, and the real estate price continues to rise, which will make the rent of domestic high-quality shops continue to grow. The annual rent growth rate of some cities, especially the first tier cities, is as high as 30%, which will seriously affect the profitability of leisure clothing enterprises.

A commentator who has observed the footwear industry for a long time said to the reporter: "Because the profit of clothing enterprises is too low, enterprises with a little more cash flow will make a big deal in real estate. Even if the commercial real estate is bubbly now, it is better to gamble than to keep the profit of clothing. What's more, owning your own property is good for clothing enterprises to expand stores in the long run, especially for leisure clothing and sports The increase of clothing and profit can't compete with the increase of rent. "

Last year, Shanshan Group under Shanshan Holdings and Mitsui Real Estate Co., Ltd. jointly developed Ningbo Shanjing Outlets Commercial Plaza. In addition to Ningbo Outlets, Shanshan is also planning other outlets projects. In the next ten years, Shanshan Group plans to build 15 to 20 outlets in China.

and men's wear Youngor, an enterprise, once regarded real estate as one of the three carriages of its own business territory. Although the industry has always questioned its "doing nothing", Youngor has always emphasized that clothing is still the focus, but at different stages, the proportion of each business module will be adjusted.