Shoes And Clothing Market Is Weak, Red Dragonflies Benefit From Financial Management

Yesterday, Zhejiang

The Limited by Share Ltd issued a notice on the implementation of the use of some idle funds to buy bank financial products. The company signed the RMB property management agreement with the ICBC branch of Wenzhou Yongjia in September 20th, using part of the idle funds to purchase financial products.

In this regard, the Red Dragonfly said that the company hopes to obtain a certain investment income through a moderate guaranteed short-term financial management, thereby further enhancing the overall performance level of the company.

It is noteworthy that at the meeting of the board of directors of the Red Dragonfly company, which was held in April 24th this year, it passed the bill on increasing the amount of financial products to be purchased by unused funds.

According to the motion, the Board agreed to increase the idle funds raised by 400 million yuan to purchase financial management on the basis of ensuring that the construction and use of the funds raised will not affect the 400 million yuan of the original idle funds raised for the purchase of financial products.

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As for the reasons for buying financial products, red dragonfly said it hoped to obtain a certain investment income through proper short-term capital preservation, thereby further enhancing the overall performance level of the company.

Regarding this, the independent commentator, Ma Gang, believes that shoes and clothing enterprises are facing a weak market environment. Diversified investment has become a common phenomenon. Red Dragonfly enterprises are small in scale and have limited investment channels, so they choose financial products such a sound and low risk investment mode.

According to the reporter, red dragonfly announced the purchase of financial products is not sudden, but because of the company's overall performance decline.

According to relevant information, the Red Dragonfly Footwear Company achieved a business income of 709 million yuan in the first half of the year, but it decreased by 16.09% compared with the same period last year. The total profit was 28 million 397 thousand and 100 yuan, a decrease of 24.66% compared with the same period last year. The net profit attributable to shareholders of the listed company was 20 million 156 thousand and 500 yuan, a decrease of 25.41% compared to the same period last year.

According to the company's interim results, the 4 main brands and other brands earned 338 million yuan, 120 million yuan, 94 million 450 thousand yuan, 72 million 60 thousand yuan and 83 million 930 thousand yuan, representing a growth rate of -25.94%, 13.60%, -25.16%, -22.53% and 67.75%.

At the same time, the Red Dragonfly also predicted in the interim earnings report that the net profit of the parent company in the first three quarters of 2016 could decrease by 30%.

According to the insiders, the rapid development of the electricity supplier has caused a great impact on the traditional shoes brand. When the core competitiveness of the business is becoming weaker and weaker, enterprises begin to think about the way to get rich.

This is not the first time that dragonfly bought financial products. As early as August 2015, the first half of the year's revenue dropped 2.6% to 1 billion 423 million yuan in the first half of the year.

In this regard, the industry pointed out that from the red dragonfly in terms of investment and financial benefits, these gains are only a drop in the bucket for the company.