Card Slave Road: 2014 Profits Fell Sharply, Will Actively Integrate Brand Resources.

Net profit fell by 90%, resulting in a decline in performance, from self closing stores, gross margins and cost rates.

In the 14 year, the company achieved operating income of 699 million yuan, down 12.41% compared to the same period last year. The net profit attributable to the parent company was 14 million 920 thousand yuan, down 90.01% from the same period last year, EPS0.07 yuan, and its performance was lower than expected. The first annual revenue and net profit of the first year since the listing were synchronous negative growth.

The proposed 10 faction is 1.1 yuan.

The decline in revenue was mainly due to the decrease in terminal stores and a slight decrease in average single store performance. Net profit growth was lower than revenue, mainly due to further decline in gross margin and cost rate.

13Q1-14Q4 income increased by 31%, 31%, 42%, 12%, 1.6%, -8%, -18% and -23% respectively, and net profit increased by 31%, -32%, -29%, -39%, -48%, -208%, -167% and -95% respectively.

Q4's income dropped by an expansion. After Q2 and Q3 suffered a single quarterly loss, Q4 realized losses.

Income split: (1) the growth rate of the extension shops is -13%, and the same store grows by -0.1%.

The company's direct investment decreased by 48, 14%, respectively, including 12 new international brand stores, 7 new domestic agent brand stores, 1 airport stores, and Hong Kong and Macao stores. The net sales decreased by 18 and 10% respectively. At the end of the year, there were 465 stores, of which 295 stores were located (including the international agency brand store, the domestic agent brand store, the CANUDILO brand store and the 01MEN store).

(2) from the perspective of brand, the revenue mainly comes from the growth of agent brand: business travel and holiday series decreased by 26% and 5% respectively, and agency revenue increased by 37%. The proportion of agency revenue increased from 24.5% years 4.5% to 13 years 15.7% to 24.5%. The company's customizing business was beginning to take shape. It was estimated to be 40 million left and right, and it was in break even. The company began to carry out inventory on vip.com line in 14 years, estimated to be about 01men; the total sales of 01men two stores were estimated to be tens of thousands and losses.

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(3) from the point of view of channels, the proportion of company's direct revenue increased from 80% to 85%, and the rate of shipments decreased by more than that of direct battalion.

(4) in the region, only Hong Kong, Macao and Southern China increased by 22% and 8% respectively. The main sales areas were down 11% and 26% respectively in East China and central China, 35%, 11% and 17% in Northeast, northwest and southwest respectively, and the North China region continued to decline by 38% in anti-corruption.

The gross profit margin declined and the cost rate increased further. Stock pressure mainly came from stocking.

Gross profit margin: the gross profit margin of 14 years decreased by 2.24PCT to 62.50%, mainly due to the reduction of prices, the increase of the gross margin business and the increase of terminal discounts.

According to the category, the gross profit margins of travel agents and agents were 67.01 (-3.91PCT) and 35.47% (+1.7PCT) respectively, and the holiday series rose from 15PCT to 83.62%, mainly due to the rapid development of Hong Kong and Macao in the main holiday series.

Q4 single quarter gross margin decreased by 1.29PCT to 62.3%, 13Q1-14Q3 13Q1-14Q3 67.04%, +1.04PCT (65.71%) (-1.34PCT), 62.48% (-7.58PCT), 63.6 (-2PCT), 63.68% (-3.4PCT), 59.72% (-5.98PCT), 63.80% (+1.31 PCT).

Cost rate: the 14 year sales expense rate increased significantly from 11.7PCT to 44.24%, mainly due to the 166% increase in store rents, 21% increase in office travel expenses, 13% increase in store management fees, 13% in sales staff salaries, and the increase in management fees by 3.1PCT to 11.58%, mainly due to 22% increase in wages and benefits, 31% increase in R & D costs, and increased financial cost rate of 0.6PCT to 0.82%, mainly due to the increase in interest expense and the increase in fees.

Among them, the 14Q4 sales cost increased by 11.02PCT to 41.32%, the financial cost rate was 0.3PCT to 0.98%, and the management fee rate was 4.32PCT to 11.22%.

Other financial indicators: 1) inventories increased by 2.6% to 450 million compared with the beginning of the year, and were unchanged from Q3. The analysis is mainly due to the opening of Guangzhou Taigu Hui and Macao Jinsha city brand collection store, and the increase of agent brand stocking. Combined with the parent company's report, the 236 million of the main brand's inventory at the end of 14 is slightly lower than that of 2.49 billion yuan at the end of 13, but it is estimated that the sales rate of the main brand is about 62%, which has declined compared with previous years.

At the end of the 14 year end, the company's inventory / revenue was 65%, and the inventory price reserve / inventory was 2.9%.

2) accounts receivable decreased by 20.7% to 150 million compared with the beginning of the year, and increased by 1 million 90 thousand compared with Q3.

3) asset impairment losses increased by 18% to 14 million 350 thousand over the same period, and losses of bad debts and inventory losses were 2 million 70 thousand and 12 million 280 thousand respectively.

4) operating income increased by 0.04% to 4 million 627 thousand compared to the same period last year, mainly due to a slight increase in the government's special awards.

5) net cash flows from operating activities increased by 431% to 42 million 440 thousand compared with the same period last year, mainly due to the company's backlog of inventory returns.

To promote internationalization, Hengyang boutique will open in September.

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The company has established a controlling shareholder in Milan, Italy in July 2014.

The brand operation center has been set up in Italy, and the Italy designer team, procurement team and operation team have been set up. The general manager of Italian company is the former marketing director and fabric director of ZEGNA, who has stepped out of the new step of global operation.

Since then, all private brands including the brand of nundi road have launched a new mode of "Italy design, global sourcing".

Hengyang high-end boutique buyer's shop (LanKaFul) is one of the important projects carried out by the company through regional alliance cooperation. The company has invited Korean interior design company and German plane vision design company to be responsible for interior design and plane vision design respectively.

Hengyang high-end boutique buyer location is light and luxurious. It is a small SHOPPING MALL integrated with multi-function such as retail, catering, supermarket, exhibition, entertainment, leisure and business. It includes 4 floors on the ground, 1 floors on the ground, and 45 thousand balconies on the roof. It is equipped with 400 parking lots. It can fully satisfy the leisure, entertainment, shopping and parking needs of the shopping malls. Meanwhile, there are functional areas such as children's amusement parks, mother and child lounge, and clothes changing, which instills the humanization idea into the whole shopping process.

14 Hengyang shop has completed the brand investment promotion business. The investment targets are mainly international luxury brands. At the same time, the international women's wear brands and high-end Chinese professional women's wear and fashion ladies wear, men's wear brands, perfume cosmetics, bags, accessories, boutique and other brands are expected to be introduced in September. It is expected to open in 2015.

Future strategic focus: brand integration, 01men, O2O, experience Museum, Hong Kong and Macao business.

The strategic focus of Future Ltd is: (1) integration of brand resources: the company will further integrate the apparel brand resources of Europe, America, Japan and Korea, and 2015 years will acquire more international brand exclusive agents through acquisition, joint shareholding, agency and other strategic cooperation.

14, the company's development strategy has been upgraded from "international clothing brand retail enterprise" to "international apparel brand operator". The pformation of positioning means that the merger, agency and cooperation between the company and the international brand are expected to accelerate.

(2) 01MEN construction of high end boutique buyer's shop: 01MEN will become a new profit growth point of the company, divided into three series, namely 01MEN select store (quality), 01MEN urban store (city), 01MEN shoe store (shoe shoe), in the next five years, the company plans to open more than 30 stores, with an area of about 500 hectares, which is mainly distributed in the first and second tier cities.

01men Guangzhou Taigu store and Macao Jinsha City store opened in May and August respectively. The Shenyang Zhuo Zhan shoe shoe collection shop opened in 15, 1 (14 months). 3 shops are still in cultivation period, with a total revenue of 1000-2000, and the sales rate is not high.

(3) actively promote the construction of O2O: in 2015, the company defined its business strategy as "light management and heavy line", and the layout of the whole channel was retail.

The company will take consumer / user centric as an experiential upgrade to accelerate the pformation in O2O.

A.01MEN O2O: set up a new e-business team at the beginning of the year to create 01MEN official website (the head of the electricity supplier, who worked in Kai Yun group). The platform will include multi brand marketing, brand promotion, fashion information, designer cooperation, and dress recommendation, including the existing brands of 01MEN, including fashion, shoes, bags, accessories, and boutique.

O2O will analyze the data of customers and realize the experience of mobile payment. In the future, it will also directly connect designers with consumers. In addition, it will provide consumers with the latest four fashion week products, fashion information, fashion trends and lifestyle.

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The brand of B. card Nu Di road O2O: integrates the resources under the brand line, activates the original VIP VIP members, and makes preparations for the differentiated business from the media (WeChat, micro-blog, official website), and carries out the differentiated marketing of the featured themes; gradually opens up the O2O system combining online and offline, and realizes the construction of simultaneous Tmall and official website sales platform; in the future, it will also seek partners with high brand matching, carry out cross-border deep cooperation, integrate user data, expand sales channels and online sales product lines, and ultimately improve the big data based on the brand and industry, so as to achieve the precise marketing of the company's brand.

The company will cooperate with department stores to develop VI