Aokang'S Net Profit Decreased Year On Year, And Also Increased Its O2O Layout

at present Aokang The international online and offline products do not coincide, and the online inventory is basically not consumed. Instead, it sells online funds and has its own online shopping mall. Now let's find out the details with the small knitting of the World Clothing, Shoes and Hats Network!

　　 Aokang released its third quarter financial report, and its net profit fell 29.88% year on year

In the third quarter of Aokang International, the company continued to promote the direct marketing layout, took back some franchise stores, accelerated the transformation and upgrading of high-quality stores, and promoted the construction of small stores to large stores and Aokang International Pavilion, famous stores and image stores. With the integration of channels, the proportion of direct stores further increased, and Aokang International's gross profit margin in the third quarter also increased by 2.09% year on year.

　　 It is worth noting that at the moment of increasingly fierce Internet sales, Aokang International is also stepping up online retailers And the layout of O2O.

At present, the online and offline products of Aokang International do not coincide, and the online inventory is basically not consumed. Instead, it sells online funds and has its own online mall. Aokang uses its sub brand to develop e-commerce, and has also opened an enterprise's WeChat service account, through which consumers can conduct anti-counterfeiting, express inquiry, information feedback, after-sales treatment, etc.

yes shoes Industry insiders in the service industry believe that the third quarter report data of Aokang International shows that the company is still in the stage of deep transformation, and there must be pain in the transformation process. In addition, the terminal consumption environment has not yet recovered, and Aokang's performance is still under pressure in the short term. However, as an industry leader, Aokang will take the lead in this strategic change to prepare for its rapid growth after the economic downturn and industry reshuffle

　　 Aokang International: High cost and inventory brought by franchise to direct marketing

The downturn in terminal sales and the transfer from franchise to direct marketing led to a decline in performance. From January to September, the company realized an operating income of 2.09 billion yuan, down 15.1% year on year, which was in line with expectations. On the one hand, the decline in revenue was due to the downturn in terminal sales, which led to a decline in the sales volume of franchisees (direct sales increased slightly, of which e-commerce business developed rapidly, estimated to be more than 200 million yuan, and the annual plan was 400 million yuan); on the other hand, the company took the initiative to switch from franchise to direct sales this year, which led to an increase in the return offset revenue of franchisees. We estimate that, From January to September, the return offset income from direct marketing is estimated to be RMB 1-110 million, including 70 stores in the third quarter, and the estimated return offset income is RMB 10-20 million.

In terms of brands, the revenue of all brands declined, among which Aokang dropped by more than 10%, Kanglong dropped by more than 20%, and Red Flamingo dropped by more than 30%. Red Flamingo was greatly impacted by e-commerce. From January to September, the net profit attributable to shareholders of the listed company was 260 million yuan, a year-on-year decrease of 29.9%, and the earnings per share was 0.64 yuan, which was in line with expectations. The increase in direct investment was mainly due to the increase in the proportion of the company's franchise to direct business. Non net profit deducted was 250 million yuan, a year-on-year decrease of 30.3%, mainly because the company received a government subsidy of 5.03 million yuan from January to September and received a fine of 4.87 million yuan from suppliers.

In the third quarter, the operating revenue in a single quarter was 590 million yuan, a year-on-year decrease of 29.2%, and the decline was further expanded (Q1 increased by 4.5%, Q2 decreased by 19.8%), mainly due to the high base of Q3 last year; The net profit of a single quarter in the third quarter was 50 million yuan, down 59% year on year (Q1 increased by 10.2%, Q2 decreased by 39.4%), mainly because of the high base and high expenses last year.

The increase in the proportion of direct sales has led to an increase in gross profit rate and sales expense rate, High inventory Enterprise, decline in accounts receivable and cash flow