Hai Lan'S Home: The Market Environment Is Bad, But The Performance Is Growing Against The Trend.

In 2014, the growth rate of domestic economy continued to slow down. The growth of clothing consumption was still lower than that of last year. The market competition became more intense. Many domestic clothing Brand Company were shrinking. The brand clothing industry showed two trends of centralization of mass business and differentiation of high-end business. The upgrading of brand concentration has become the main theme of industry adjustment.

For this reason,

Focusing on the strategic thinking of building "China menswear national brand", focusing on professional dedication, relying on innovative mode, effective retail store and supplier management, and strengthening the integration of industrial chain resources, continuously improving the product cost performance with the help of scale effect, and achieving the growth of business performance.

During the reporting period, the company achieved operating income of 12 billion 338 million 441 thousand and 100 yuan, an increase of 72.56% over the same period last year, and the net profit attributable to shareholders of listed companies was 2 billion 374 million 772 thousand and 100 yuan, an increase of 75.83% over the same period last year.

The brand of Hai Lan home:

(1) optimizing terminal channels

During the reporting period, the company always adheres to the opening strategy of "golden section and diamond shop", while maintaining the steady expansion of the number of stores, it continuously improves the quality of the shops and optimizes the layout of the stores.

Store penetration and coverage, the number of stores in the reporting period reached 3348, an increase of 15.97% compared to 2013, covering 31 provinces (autonomous regions and municipalities directly under the central government), covering more than 80% of the counties and cities; two, actively implementing the big store strategy, the location of the poor, small and unable to expand the store to sign the new sign, new stores and renewal shops are mainly based on large shops, enhance the effective business area, increase single store sales, in 2014, the effective business area of the company's store grew 29.76%; three is actively launching the brand linkage shop, with the help of "Hai Lan Jia" brand linkage to promote the development of other brands, and further enhance the brand competitiveness in provincial capital cities, high quality prefecture level cities and County cities. First, we must continue to upgrade the new store and renew shop standard.

(2) strengthening brand image

Companies constantly try and break through a new marketing mode to communicate with consumers in depth.

During the reporting period, we will focus on introducing HI-T style T-shirts, "quality special" down show, and father's day as a series of activities such as "father love type" emotional marketing and so on, to strengthen star category advantages, create brand fashion quality and enhance the purchasing power of consumers.

At the same time, through the holding of the "one gram warm" public welfare activities, the company exclusively named "Guinness night in China" and supported the "running brothers" and other brand communication activities with clothing sponsorship to complete the development and expansion of brand clothing, highlight the brand image, enhance brand influence and popularity.

(3) improve product performance price ratio

The product price performance ratio is the core index of the company's product market competition. By virtue of the scale advantage, the joint main supplier will scale up the purchase of raw materials and auxiliary materials, reduce the procurement cost and benefit the consumers. At the same time, we can learn from the experience of 2013 year t-shirts category products, and introduce innovative products through the large-scale self run mode, so as to drive the sale of other products with the high cost performance of their own products.

In the R & D management, we should adjust the internal organizational structure, divide the Development Department of the main categories into two parts, implement the internal PK competition mechanism, and improve the accuracy of product development.

In the product design, we should increase the research on the domestic and foreign markets, communicate the market consumption demand and fashion trend with suppliers in time, reflect the differentiation and diversification of product design, and meet the needs of different consumers.

The product inspection standards should be clearly defined in the quality of products, strictly controlling the quality of products and ensuring the quality of products from key aspects such as supplier selection, factory inspection, sample sealing, sampling inspection and merchandising.

(4) improving market management

The company adheres to the direct management mode of "1000 stores and one side", focusing on "deepening services" and "strengthening PK" to carry out market management: first, deepening services, strengthening service awareness and service concept, boosting quality of service, building up China's menswear national brand, optimizing system construction, improving workflow and improving work efficiency; two, strengthening PK, stimulating people's fighting spirit at all levels, strengthening team building, optimizing departmental personnel, and creating efficient market management team, thus achieving a substantial improvement in management and sales performance.

(5) implement the "settlement ratio inflection point" mode to harvest high growth premium.

Driven by the company's brand advantage, product advantage and scale advantage, the scale of the company's store revenue has been increasing.

In 2014, the company adjusted the settlement mode for newly opened stores and early expired follow-up signatory stores, and signed a settlement cycle every 12 months after signing the contract. In the initial stage, the settlement ratio of franchised stores was increased to speed up the recovery cost of franchised stores and reduce operational risk; after the franchisee realized a reasonable profit, it reached the "turning point" and reduced the proportion of the settlement of the franchised stores to improve the company's settlement ratio.

After adjusting the settlement mode, the company further reduced the franchisee's operating risk, and guaranteed the high growth premium of the brand under the premise that the franchisee got a reasonable return.

During the reporting period, the brand of "Hai Lan Jia" achieved 10 billion 125 million 170 thousand and 200 yuan, an increase of 49.58% over the same period last year.

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The brand of EICHITOO and the brand of Bai Yi Shun Shun:

In 2014, the company decided to pform the brand of "love rabbit" from "sports fashion brand" and "leisure fashion brand" to "popular fashion ladies' brand" and improve the company's product line.

The company strategy systematically promotes the upgrading of channels, image promotion and products. First, it optimizes the process of developing new suppliers, and promptly solves the obstacles and promotes cooperation with suppliers. Two, it is necessary to establish standards for garment technology and fabric inspection, improve the delivery pass rate and improve product quality; three, adjust the layout of stores with the requirements of brand pformation, store stores as the main part and improve the quality of stores; four, design and develop details such as edition, technology, materials and styles, so as to highlight the positioning of fashion city life; five, grasp the trend of fashion in a timely fashion, integrate products closely with the market, and continuously build the core competitiveness of the brand with the characteristics of high quality, high cost performance and mass consumption.

During the reporting period, the "Ai Ju rabbit" brand realized business income of 302 million 996 thousand and 800 yuan, an increase of 52.03% over the same period last year.

In 2014, the "Bai Yi Shun Shun" brand, driven by the brand influence of "Hai Lan home" and "Ai Ju rabbit", rapidly promoted the brand linkage shop mode, actively carried out internal resource integration and reform, and made effective improvement and upgrading to many aspects such as store area, human resources, energy consumption, store image and commodity display, so as to accelerate the development of brand.

During the reporting period, the "Bai Yi Shun Shun" brand achieved a business income of 238 million 584 thousand yuan, an increase of 129.62% over the same period last year.

San Keno brand:

In the increasingly competitive environment of professional wear, the company has seized the important opportunity of successful reorganization of assets, paid attention to the "San Keno" brand management, made solid efforts in marketing, design, product and management, and carried out "reform and innovation" to adapt to the trend of professional development, and enhanced independent intellectual property rights to support brand promotion and competitiveness, highlighting the personalization, style and fashion of business attire, so that fabrics, styles and techniques are advancing with the times and enhancing the added value of products.

During the reporting period, the "San Keno" brand achieved operating income of 1 billion 479 million 699 thousand and 500 yuan, an increase of 8.37% over the same period last year.

E-commerce:

With the rapid development of traditional formats, the company will further improve the complementary mechanism of online and offline sales, open up new channels for Internet sales, and foster new economic growth points.

The company has set up the Agel Ecommerce Ltd of Jiangyin Hai Lan home. It works around the platform and products to realize the multi-channel layout of Tmall, Jingdong, suning.com, Amazon and other network sales platforms.

"Hai Lan home" brand adopts the strategy of "the same price at the same price" under the online and offline strategy, and completes a series of marketing measures for each product, such as optimizing the shelf time, analyzing new products, adjusting product inventory, analyzing sales reviews, providing online product line replacement services, optimizing the structure of the network station, enabling consumers to shop more quickly, placing orders more accurately and continuously improving the user experience.

During the reporting period, e-commerce revenue increased by 302% over the same period last year.

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Main business analysis

(1) factor analysis of driving business income change

The main revenue growth of the company's main business came from the growth of the brand clothing sales of the "Hai Lan Jia" brand and the sales of the "San Keno" brand professional wear. The growth of the brand clothing sales of the "Hai Lan Jia" brand mainly came from the sales growth of the single store sales and the sales increase brought by the new stores; the average revenue of each store in the year 2014 (the average arithmetic at the end of the store was unweighted) increased by 29% over the previous year; the number of stores increased by 15.97% at the end of 2014; the main reason for the growth of single store sales was that the company further increased the product price ratio, which provided consumers with more competitive products and won the recognition of consumers.

(2) the situation of major sales customers

During the reporting period, the total sales of the top five customers amounted to 230 million 255 thousand and 800 yuan, accounting for 1.87% of the company's main business revenue.

except

All products of the company are purchased from suppliers, and the company does not make financial accounting for the specific cost of the finished products.

(2) main suppliers

During the reporting period, the purchase amount of the top five suppliers was 1 billion 545 million 392 thousand and 100 yuan, accounting for 18.21% of the total purchase amount of the company.

The net change in cash flows from investment activities is mainly due to the increase in the scope of the reorganization and the merger of reverse acquisitions into monetary funds.

The net change in cash flow generated by fund-raising activities is mainly due to an increase in cash in dividends paid by companies.

During the reporting period, the company completed the major asset reorganization of the issue of shares to buy assets and related pactions, which constituted a reverse purchase. The essence is the purchase of the main body of the original listed company by Hai Lan home dress.

Due to the completion of the registration of industrial and commercial changes in February 2014, the purchase date was determined to be February 28, 2014. Hai Lan home dress (Accounting parent company) incorporated the company (Accounting subsidiary) into the consolidated financial statements from the date of purchase.

Therefore, the company's current profit constitutes the operating results of our company (excluding Hai Lan Jia dress) in 2014 and 3-12 months in 2014 and the 1-12 year of Hai Lan home dress.

During the reporting period, the business performance of Hai Lan home's clothing business continued to grow rapidly, leading to major financial data and indicators such as current operating income and current net profit, which increased considerably compared with the same period last year.

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Analysis on implementation progress of various financing and major asset reorganization matters in the company's early stage

During the reporting period, the company completed the major asset reorganization of the issue of shares to purchase assets and related pactions.

The company's major asset reorganization was deliberated by the board of directors and shareholders' meeting of the company and obtained by relevant departments of the China Securities Regulatory Commission and the Ministry of Commerce.