Is It Reliable To Transform "Internet+"? Most Listed Enterprises Suffer From Performance Decline

The disclosure of the 2015 annual report is drawing to a close, and the prosperity of various industries has been clearly defined. As a major player in the traditional manufacturing industry, the plight of listed garment enterprises also surfaced.

According to the reporter's statistics, at present, there are 20 garment enterprises in Shanghai and Shenzhen stock markets that have released their financial data for 2015, of which 12 accounted for the decline in net profits, accounting for 60%. The operating income and net profit of six companies, including Lucie and Meibang Garments, fell "at the same time".

Under the pressure of domestic and international market downturn and consumption upgrading, most garment enterprises have already begun to plan transformation. According to the incomplete statistics of the reporter of the Securities Times, at present, more than 80% of the listed clothing companies have carried out online and offline dual layout. There are also many companies "going overseas" to increase overseas mergers and acquisitions. However, according to the annual report, the effect of transformation is difficult to be reflected in the performance for the time being, and there are few gorgeous turnarounds.

Sixty percent of garment companies' performance declined

At present, 12 of the 20 listed clothing companies that have disclosed their financial data for 2015 have seen their net profits decline. Both Meibang Garments and Jialinjie suffered losses of more than 100 million yuan, and the performance of Lucie Shares, Modern Avenue, Blonde Rabbi, Saturday, Georgeback, Happy Bird, Pathfinder, Seven Wolves, Jihua Group, Jiaxin Silk and other companies also declined to varying degrees.

The former "No. 1 domestic clothing brand" Meibang Clothing ushered in its first loss since it was listed seven years ago. According to the 2015 performance report of Meibang Garments, the company realized an operating income of 6.285 billion yuan in 2015, down 5% year on year; The net profit attributable to shareholders of listed companies was - 431 million yuan, down 396% year on year.

In recent years, in order to cope with the strong layout of overseas fast fashion brands and the impact of e-commerce, the transformation of Meibang Clothing has been frequent. Ruhao launched a popular variety show called "Odd Flowers", and launched a strong "Fan" APP. In July last year, Meibang Garments announced its plan to raise 9 billion yuan, of which 6 billion yuan was used for the construction of O2O omni channel platform. Four months later, the amount of additional funds raised by Meibang Clothing was reduced to 4.2 billion yuan, of which 1.591 billion yuan was used for O2O omni channel projects. However, this series of layout has not yet led to substantial sales growth for Meibang Clothing.

Jialinjie is also facing a dilemma. The company's net profit in 2015 was - 101 million yuan, down 465% year on year. In addition to the downturn in the market and the decline in the company's sales orders, the reason for Jialinjie's loss also includes the large investment in the early stage of the company's new production base in the reporting period, and the scale effect cannot be reflected before it is officially put into production.

In addition, the net profit of Toread also showed negative growth for the first time since its listing. The company's net profit in 2015 was 265 million yuan, down 10.03% year on year. The company said that it was mainly due to the further increase of market competition pressure and the decrease of gross profit of outdoor products compared with the same period last year. In 2015, the company built a pathfinder ecosystem with coordinated development of outdoor products, travel services and big sports, and 1700 stores across the country will gradually change to the form of "outdoor+travel".

Dress up performance does not depend on the main business

Of course, there are also listed clothing enterprises whose performance has doubled. However, the reporter of the Securities Times found that behind these brilliant achievements, it is not the income from the main business.

In 2015, Shinur, which turned loss into profit, had an operating income of 1.013 billion yuan, of which 108 million yuan came from the sale of shops in Beijing. At the end of last year, the company sold its wholly-owned subsidiary at a 50% discount, bringing a profit of up to 45.3837 million yuan.

On the other hand, in order to find new growth points of performance, more and more listed garment enterprises began to diversify. On April 12, when Huijie received an institutional survey, it revealed that the company would consider new business related to underwear in the future business development, and the company was preparing to launch new cosmetics business in 2016.

According to the latest disclosure of Shenzhen Stock Exchange Interactive Easy, most of the listed home textile enterprises like to receive institutional research on April 6, saying that they have made two layouts for the Internet vertical e-commerce business: first, the company's HBDIY Internet platform plan; Second, the "well-known IP derivatives" operator service provider plan.

Plus e-commerce and overseas mergers and acquisitions

For listed clothing companies that are bent on reducing production capacity and inventory, e-commerce has become a must. More than 80% of the listed apparel enterprises, including Sima Garments, Burson Shares and Kingfax Rabbi, have also carried out online and offline layout at the same time.

However, it seems that the performance changes brought by e-commerce are not obvious. Take the leisure brand Sima Clothing as an example, the company's operating income in 2015 was 9.45 billion yuan, up 16.1% year on year; The net profit was 1.35 billion yuan, up 23.5% year on year. Although e-commerce business also continued to grow at a high rate, the company's children's clothing brand Balabala's revenue accounted for 40% of the group's revenue, with sales reaching more than 3 billion yuan, becoming the main force to improve the company's performance.

However, this does not affect more companies' involvement in e-commerce business. On March 30, at the 2015 annual performance presentation, Jiaxing Silk said that in the later stage, the company will explore the possibility of carrying out cross-border e-commerce business and sell its brand internationally through cross-border e-commerce and other channels.

In addition, in order to seek change, listed garment enterprises are accelerating the pace of overseas mergers and acquisitions. Shandong Ruyi Group recently acquired the controlling stake of SMCP, a French fashion group, for 1.3 billion euros. The group will continue to expand in Europe, North America and the Middle East, especially in Asia. Prior to this, companies such as Modern Avenue, Lucie, Sima Garments, and Golis have laid out overseas markets.

Li Jie, an analyst with Everbright Securities, said that at present, the value of the RMB is relatively strong, and the valuation of foreign euros is lower. It is expected that in the future, with the internationalization of the RMB and the more frequent and convenient flow of resources, overseas mergers and acquisitions in the domestic clothing industry will accelerate.