The Future Of Shanshan Shares Or The Listing Of Main Businesses Is Uncertain.
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Garment industry
Under the overall market downturn, once the "clothing first stock" Ningbo Shanshan Limited by Share Ltd (hereinafter referred to as "Shanshan stock") has quietly stripped the clothing business, and turned itself into a new energy listed company.
According to the 2016 annual report released by Shanshan stock, the net profit of garment business during the reporting period reached 36 million 261 thousand and 700 yuan, down 25.39% from the same period last year.
In fact, in recent years, the proportion of clothing business in the overall revenue of Shanshan stock has dropped sharply, from 31% in 2014 to 13.5% in 2015, and less than 10% in 2016.
The declining sales performance led Shanshan stock to spin off its clothing business last year.
Shan Shan shares the integration of its clothing business, and is operated by the subsidiary company Shanshan brand operation Limited by Share Ltd (hereinafter referred to as "Shanshan Brand Company"). At the same time, the Shanshan stock plan is listed on the Hongkong stock exchange as the main body of Shanshan Brand Company.
Analysis of the industry, clothing business as Shanshan stock "abandoned" plate, the current market share is not good, coupled with the overall downward trend in the apparel industry, even if the future of the clothing sector can be successfully listed on the Hong Kong stock market, the development of "money scene" is not optimistic.
Shanshan stock issue 2016 annual report shows that during the reporting period,
Shanshan stock
Operating income reached 5 billion 475 million yuan, an increase of 11.09% over the same period, and the net profit attributable to shareholders of listed companies was 330 million yuan.
Among them, the clothing business that had made "Shan Shan" fame was a big noise fell again in the stock of Shanshan.
According to the 2016 annual report of Shanshan stock, during the reporting period, the main business income of garment business was 524 million yuan, and the net profit attributable to shareholders of listed companies was 36 million 261 thousand and 700 yuan.
Although garment business revenue rose 8.72% over the same period, it still showed a downward trend in the overall performance of Shanshan stock. In 2016, it accounted for less than 10% of the total revenue of Shanshan stock.
In fact, in recent years, clothing business has become smaller and smaller in the overall business income of Shanshan stock.
In 2012, the clothing business accounted for about 47.98%; in 2013, the share ratio changed to 42.65%; in 2014, the proportion of garment business decreased to 31.35%; in 2015, this figure dropped to 13.5%.
Reporters read the annual report of Shanshan stock, found that clothing business in Shanshan shares accounted for the decline, not only because the company's lithium battery new energy business has developed rapidly, but also because in recent years, the clothing sector itself business revenue continued to decline.
In 2012, the clothing business revenue reached 1 billion 802 million yuan, net profit realized 8 million 500 thousand yuan, fell 85.6% compared to the same period; in 2013, the clothing business appeared to be in deficit, the net profit was -552.91 million yuan; in 2014, the clothing business continued to lose money, the net profit was -417.39 million yuan.
In 2015, the main business income of garment business reached 581 million yuan, down 49.32% from a year ago. Although it turned out to be a profit, it was mainly due to the stripping of knitwear business.
In 2016, the garment business was again profitable, with a net profit of 36 million 261 thousand and 700 yuan, but the garment business itself did not achieve substantial improvement.
At present, there are 4 brands in the clothing business, FIRS revenue has increased by 0.67%, achieving 424 million yuan, but gross profit margin has dropped by 2.8% compared with the same period last year. The brand SHANSHAN revenue grew year by year, but only 34 million 400 thousand yuan, and accounted for a small proportion in the clothing business. In addition, the LUBIAM and MARCO AZZALI brand revenue decreased by 20% and 15.13% respectively.
Shanshan shares said in an interview with reporters that the future does not rule out the possibility of abandoning the two brands of LUBIAM and MARCO AZZALI.
At the same time, the number of clothing stores in Shanshan was 140 in 2016, and the average store efficiency was 910 thousand yuan, down 17% from the same period last year.
As the main selling channel of clothing, franchised stores closed 326 stores in 2016, and revenues and gross margins fell by 22.52% and 6.25% respectively.
Fade out main business
Zheng Yonggang, founder of Shanshan brand, has publicly stated that "the era of clothing making money has passed", which may be the fundamental reason for the poor performance of the clothing business of Shanshan garment company for many years.
Garment independent critic Ma Gang said that the clothing section of Shanshan stock has the phenomenon of brand aging, which requires companies to increase investment, brand marketing to stimulate market consumption, and inject fresh marketing points, otherwise the brand will not continue to get the favor of consumers.
Overall, although Shanshan stock company only put the clothing business into the lithium battery business in the 2016 annual report, in fact, Shanshan stock has already started the pformation plan.
At present, Shanshan stock company is developing lithium battery material business, and has begun to strip garment business step by step.
According to the annual report, in 2016, Shanshan Group carried out the overall restructuring of Ningbo Shanshan clothing brand management Co., Ltd.
The integrated clothing business mainly includes the Chinese fir clothing brand business and other brand business. It is managed by the Chinese fir Brand Company, and is split and listed in the Hongkong stock exchange for the main body of the listed company.
At present, the Brand Company of Shanshan is still in the auditing and feedback stage of the Hongkong Securities Regulatory Commission and the Hongkong stock exchange.
After that, Shanshan will completely abandon the garment industry and pform into a new energy listed company.
Listing is uncertain
Shanshan Brand Company will be listed on the Hong Kong stock market, but combined with the continuous decline of clothing business in recent years, the action of stripping the garment business is interpreted as "burden" by the industry.
Industry analysts believe that the clothing business in recent years has been declining revenue, and then there is a loss, for Shanshan stock, the future business may become a drag on the company, and the clothing business stripped out, Shanshan stock performance will have a better performance.
In addition, the Shanshan Brand Company, a clothing business, listed on the Hong Kong stock market alone, adding a financing platform to Shanshan stock.
But Shanshan shares said in an interview with reporters, "clothing is" no sunset "industry, but joint-stock companies focus on resources and energy in lithium and new energy vehicles related aspects, and therefore choose to peel clothing business.
Although Zheng Yonggang once expressed his love for clothes, he launched the new clothing brand SHANSHAN in October 2015, attacking the two or three tier cities and targeting young consumers aged 28-35 to enter the fast fashion market.
At the same time, Zheng Yonggang also said that in the next five years, SHANSHAN will open 1500 stores.
However, Ma Gang said that the launch of a new brand is a new attempt for Shanshan stock. After all, Shanshan shares were older than the mainstream consumers, and the brand aging was more serious. New brands and new product lines were needed to support young consumer groups.
But in the young consumer groups, the brand also has strong competition from the brand of Hai Lan home.
For the opening of 1500 new stores, Ma Gang is also not optimistic. Shanshan stock mainly adopts the franchise mode. Franchisees need franchisees to agree with the brand's business philosophy and operation logic, but the main brand of Shanshan stock is aging, and franchisees will not choose the brand if they have more choices.
Ma Gang pointed out that even if the clothing business was successfully listed, the clothing business was abandoned by Shanshan Group for many years, and it was not easy to redevelop it. At the same time, the old brand of Shanshan lacks fresh consumption groups, and the new brand has not yet established enough consumption recognition in the market. At present, the clothing business is in the stage of being out of green. Therefore, it is difficult for the clothing business to achieve good performance in the short term.
In addition, Ma Gang further analyzed, even in the H shares listing success, given the poor performance of Shanshan clothing business over the years, fir
brand
It is unclear whether the company will continue to invest more in clothing or whether it will serve as a "shell" in the future.
For more information, please pay attention to the world clothing shoe and hat net information report.
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