Jialin Jie: Production And Business Activities Carried Out Smoothly.

Shanghai

Textile Limited by Share Ltd (002486) issued semi annual report that during the reporting period, due to the macroeconomic factors and the global textile demand, the production and sale of orders in the first half of the year failed to meet the expected growth targets, which brought great pressure to the production and operation of the company.

However, under the leadership of the board of directors, the management of the company continues to further improve the company's internal management system, tap the potential of the existing market demand, consolidate and develop the international market, and steadily invest in the construction and development of its own outdoor sports brand.

Technical and technological advantages are working hard to ensure the smooth operation of the company's production and business activities.

In the first half of 2012, the company achieved a total revenue of 416413996.92 yuan, down 1.84% from the same period last year, and the net profit attributable to shareholders of listed companies was 20887482.52 yuan, down 38.99% from the same period last year.

At the end of the reporting period, Shanghai Jialin Jie sporting goods Co., Ltd. total assets of 44 million 647 thousand and 700 yuan, net assets of 29 million 772 thousand yuan.

The current operating income is 7 million 717 thousand and 400 yuan, the operating cost is 6 million 749 thousand and 600 yuan, and the net profit for the current period is -835.62 million yuan.

The total operating revenue and operating costs of the company were 416 million 414 thousand yuan and 326 million 493 thousand and 200 yuan respectively, representing a decrease of 1.84% and 0.29% compared with the same period last year. The main reason is that the international textile market is affected by the European debt crisis and the global economic downturn, the demand is sluggish, and the delay in the delivery of customer orders and products has affected the expected growth of the company's sales during the reporting period.

The operating income and operating costs of the company's fabric products were 137 million 903 thousand and 300 yuan and 110 million 50 thousand and 500 yuan respectively, representing an increase of 18.83% and 19.83% respectively over the same period last year. The main reason is that the company continues to work hard in the research and development of functional fabric technology, and the new products developed are widely favored by many customers at home and abroad, and the order of these new fabric products grows.

Business income and operating costs have increased to a certain extent compared with the same period last year.

In addition, the company

The operating income and operating costs of such products were 278 million 510 thousand and 700 yuan and 216 million 442 thousand and 600 yuan respectively, representing a decrease of 9.62% and 8.13% compared with the same period last year, mainly due to the fact that the sales of garment sales did not grow and the product was postponed, which affected the expected growth of sales.

The gross margin increased significantly over the same period last year. The gross profit margin of the company decreased by 1.22% during the reporting period, and the gross margins of all kinds of products decreased slightly. The main reason was that the increase in the cost of raw material procurement and the increase in labor costs caused the growth of unit cost in different periods. The two was that the products were mainly exported and the dollar quotas were used to settle accounts. The appreciation factor of the RMB during the reporting period had adverse effects on the stability of the gross margin of the company's products.

Huatai Securities analysis pointed out that, by the downturn in overseas demand, Shanghai Jialin Jie textile Limited by Share Ltd performance lower than expected in the first half.

As the late overseas economy is still unclear, the company forecast 1-9 months net profit fell 30-50%.

The decline in gross margin and rising cost rate dragged down net profit.

As the company's product price lags behind the cost of raw materials and labor, the gross profit margin of the first half of the year dropped by 1.22 percentage points, to 21.59%, of which 67% of the garments accounted for 67%, and the fabric products decreased by 0.66%.

In the first half of the year, the sale of independent brand stores, new brand investment and new staff were accelerated. The sales and management expenses of the company increased by 20% and 12% respectively, which were higher than the income growth rate. The cost rates increased by 1.49 and 0.97 percentage points respectively over the same period. At the same time, the investment projects were completed, interest income was reduced, the financial cost rate increased, and the period cost rate increased by about 3%, to 15.82%.

The development of independent brands has accelerated, but it has not yet turned the corner.

By 2011, the company's independent outdoor brand Kroceus stores 8 (7 net increase), the first half of the first half of this year, the new store speed should be faster than last year, the income of 7 million 710 thousand yuan, up 160%, still in the cultivation period, the brand is still losing 8 million 360 thousand yuan.

This year, the new Super Natural B2C brand, which is a natural and environmentally friendly fabric concept, is expected to be released in the near future.

Capacity bottlenecks have been resolved and performance improvement will be warmer overseas demand.

As an international high-end outdoor brand functional fabric supplier, the company has a stable strategic customer resources and a leading position in the scale of technology and technology, which is in line with the 12th Five-Year industrial pformation and upgrading direction.

At present, the company's new 6 million 800 thousand M recruitment project is completed, and its capacity will reach 18 million 800 thousand meters. The original Nantong high-grade fabric project will be restarted in Hubei. The improvement of Shanghai Jialin Jie textile Limited by Share Ltd's performance will mainly depend on the digestion of the company's capacity after the rising demand of overseas customers.

According to the securities analysis of the century, the company is a designated supplier of many world-famous outdoor sports brands, mainly producing weft knitted wool fabrics, fleece fabrics and sports functional fabrics and related garments.

Among them, the world famous outdoor polyester terry fabric brand Polartec nearly 40% products, outdoor well-known wool sports brand Icebreaker 90% or more products are provided by Shanghai Jialin Jie textile Limited by Share Ltd.

More than 98% of the company's products were exported, and Japan's earthquake and European debt crisis had a negative impact on exports from Japan and Europe, but orders for exports to the US still increased.

According to the data provided by COCA, the total retail sales in China's outdoor products industry increased from an average of 47.47% from 2000 to 2011.

It is estimated that with the improvement of living standard and the change of outdoor sports concept, the outdoor industry in China will continue to grow at a high speed in the next 3-5 years, and the capacity of 40%-50% will continue to expand.

However, the confusion of investors is that the outdoor industry is growing at an alarming rate in China, but as a top outdoor fabric provider, the market has not shared this fast growing market. Some analysts believe that this may be related to the positioning of the company's top brand fabric providers. The growth rate of top brands worldwide is not so fast. Perhaps when more mass brands use fabric, Shanghai Jialin Jie textile Limited by Share Ltd shares outdoor high growth time.

The company's performance growth point lies in the short term productivity improvement, and its long-term promotion lies in the promotion of its own brand in China.

What is worth mentioning is that the original capacity of the company is 12 million meters, and the stock raising project has increased by 6 million 800 thousand meters. It has been put into operation by the end of last year. With the improvement of Japan and European economy, foreign orders are expected to keep growing, and the increase of production capacity will become the main thrust of profit growth in the short run.

In addition, the private brand KR is expected to break even in two or three years and become a long-term profit growth point.