High End Women'S Clothing Does Not Eat Xiang Liang Zi'S Net Profit For 2 Consecutive Years.

In the past two years, high-end women's clothing has not been popular in the market and few people have purchased. The net profit of the group has fallen for 2 consecutive years, and the group is doing everything possible to reverse the situation.

The popularity of the garment industry has led to a large number of well-known clothing enterprises in the past year, a large number of shops, among which high-end women's clothing brand is particularly affected.

For a long time, it is an example of a listed company based on the production of high-end women's clothing, which is a continuous decline in net profit since 2014, and its net profit fell 38.58% in 2015 compared with the same period last year.

The decline in performance led to the implementation of a series of pformation actions since 2014. First, in November 2014, the Korean infant clothing enterprise aka bang was acquired in November 2014. After that, it purchased the DKH from South Korea's medical beauty agency in July 2015, and then joined the Korea mask company in December 2015.

In its 2015 annual report, the company announced that it will build a "Pan fashion industry ecosystem" strategy and strive to achieve full coverage of the four major fashion areas: Women's clothing, baby products, cosmetics and medical beauty.

However, the reality is that even if we continue to push forward the pformation, we can not change the trend of declining performance.

How has the continuous decline of its performance in recent years?

In the process of accelerating the pace of pformation, why has its performance decline been reversed?

Is it not optimistic about the prospect of high-end women's clothing in pition to other businesses?

With these questions, the reporter visited the position of the group.

Wang Yanqiu, a securities affairs representative of the headquarters of West Da Wang Road, was interviewed by reporters and responded to the above questions.

Net profit fell for two years.

Unlike the general garment factories in China's southeastern coastal areas and built their own stronghold, the headquarter of the group is located in Beijing, and has its own property named "long Zi mansion" in No. 27 courtyard, West Grand Road, East Fourth Ring Road.

Unlike office buildings that provide office space for a number of small and medium-sized companies, the 11 storey tall building, the new building, is all quiet and elegant.

It is a new building, because two years ago, the office of the group was located in Yumin Road, Xicheng District, Beijing.

But the performance of the new office has not been upgraded.

The company's net profit fell 48.14% in 2014 compared to the same period last year, followed by a 38.58% decline in 2015 net profit of 74 million 460 thousand yuan.

In response, Wang Yanqiu told reporters: "the economic recovery is weak, resulting in a decline in sales revenue and resulting in declining performance in the domestic retail industry. Now we can feel the flow of people in shopping malls is not as good as before. And since the implementation of the anti-corruption policy, sales of high-end women's clothing in the shopping mall have also been affected, which is the pressure brought by the environment for our business.

But we are not optimistic about the domestic women's clothing industry. We hope to do well in the main business under the pressure of the current economic environment, and at the same time, we can seek more breakthroughs in performance.

Mergers and acquisitions, equity participation and pformation

To achieve this breakthrough, in the case of long Zi shares, it is to buy infant clothing companies, mask production enterprises, medical and cosmetic institutions, and share e-commerce businesses.

It is worth mentioning that the annual report shows that

In 2014, the first big brand enterprise of Korean infant clothing and supplies purchased akakon lost 47 million 490 thousand yuan in 2014. In 2015, aka state realized losses and profits, making a profit of 97 thousand yuan.

As for why we bought this loss company, Wang Yanqiu explained: "the acquisition of aka Bang is the brand advantage of akakon, which is the first brand of Korean children's clothing. Many Koreans grow up in the clothing of akapon brand. Its recognition degree in Korea is higher than that in Korea.

Before the acquisition, the loss of akakon was due to a decline in the birthrate in South Korea in recent years, resulting in little growth in the consumption capacity of Korean children's clothing.

But in China, before the introduction of the "second child policy", China has been at the peak stage of the birth rate. Under the positive effect of the "second child policy", we believe that the consumption of children's clothing in China still has great potential for growth.

In the joint venture business, despite the 2015 increase star star wardrobe, Wakaba Chen and other e-business enterprises, but the sale of the shares in the channel of electric business does not seem to be much improved.

Reporters saw that the sales volume of Tmall's official flagship store was only 21 months.

Wang Yanqiu admitted to reporters: "in recent years, the company has always attached great importance to the development of e-commerce in the country and the use of the company, but e-commerce is not our strength after all. We are faced with a situation of high-end women's clothing: People's enthusiasm for buying high-end clothing through online channels is not high, it is different from the consumption mode of fast moving products, and more depends on experience and personal experiments, so the effect of our layout in this field has not yet appeared."

The stock price has not risen.

Why did Wang Yanqiu carry out a series of pformation actions after 2014? Wang Yanqiu told reporters: "because we first saw a profit decline in 2013, this led us to have a reflection process in the management of women's clothing and the long-term strategic planning of the Future Ltd, thus making us think about how to do well in women's clothing business and how to build long-term development strategy in the future."

However, the implementation of a series of pformation actions such as the posture of Marco's posture in infant clothing, mask Market and so on has not yet reversed the decline of its performance.

In response, Wang Yanqiu told reporters: "it can not be said that mergers and acquisitions to an enterprise can immediately bring some economic benefits.

For a project, we need to merge from communication, plan acquisition, merger and acquisition to M & a success. We acquired a deficit company, but we managed to turn it into a profit through a year of operation. This is also our achievement, achieving the purpose of M & A at this stage.

Most investors were optimistic last year about the continuing trend of the merger, which was only 23 yuan at the beginning of January last year, and its share price reached 75.46 yuan as of December 22nd.

The rising price of the stock has led to its current price earnings ratio of 203 times.

For such a high price earnings ratio,

"For listed companies, it is an important topic to manage market value well, and it is also a work we have been researching and advancing.

But the Chinese stock market is matched with the value of the company on the one hand, on the other hand, it is affected by all factors in the two tier market.

From my personal point of view, I am not very good at evaluating this problem, nor can I make a professional judgement.