Can Yuyuan Create A Successful Pformation From China To Upgrade China?

"Urgently need the foundry enterprises with certain capabilities and advantages to pform from the low end of the industrial chain to the high-end of the industrial chain, from manufacturing to products.

The pformation of brand marketing links will change from OEM to independent innovation and independent brand.

According to the world clothing shoes and hats net, recently,

ADI brand

Yuyuan group, the foundry manufacturer, announced the net income of comprehensive operation in the past two months (equivalent to the total sales volume after the sale discount and return), of which 8 recorded a monthly income of 761 million US dollars, and 9 recorded a monthly total of 767 million US dollars. The total net income of the first nine months reached 6 billion 710 million US dollars, up 6.7% per annualized year.

3813.HK, a distributor of Yuyuan group, also announced the combined net income in September, up to 1 billion 571 million yuan, an annual increase of 10%. The total net operating income in the first nine months was 13 billion 867 million yuan, up 14% year on year.

Encouraged by performance, Yuyuan group rose 2.64% on the day, at 31.1 yuan, and traded about 480 thousand shares, involving 14 million 820 thousand yuan, and actively buying 78%.

Baosheng international shares rose 4.7% to 1.56 yuan on that day. About 3 million 390 thousand shares were traded, 5 million 130 thousand yuan involved, and 98% took the initiative to buy.

Up to now, Yuyuan group's share price has not changed, but Baosheng international has declined slightly to HK $1.47.

Yuyuan group's parent company is the Baocheng industry founded by the Cai Qirui family in Taiwan in the late 60s of last century (listed in Taiwan in 1990).

Baocheng started from the small town of Lukang in the west of Taiwan. It was only a small workshop that made slippers and slippers at first.

It is reported that Yuyuan group's retail business rose 15% in the first half of this year.

At present, there are 5464 direct counters or shops in China and 3036 shops run by distributors.

But on the whole, the OEM business still occupies the total turnover of 3/4.

Thanks to the mainland's reform and opening policy, Yuyuan group received a large number of orders from Nike and ADI.

Now, Yuyuan group is the largest sports shoe manufacturer in the world.

In 2012, Cai Qirui retired to the second line and gave Bao Cheng and Yu Yuan to his daughter Cai Peijun.

Baosheng international, formerly the Yuyuan group's retail business, was independently listed in 2008.

But after independence, Baosheng international soon encountered the cold winter of the domestic sporting goods market in 2012.

At that time, domestic brands such as Anta and Lining were unable to extricate themselves from the quagmire.

In 2013, Baosheng international, which had lost two hundred million, pferred the shoemaking business to Yuyuan group, a holding company.

Looking back at Baosheng international mid-term performance in 2017, it can be said that there are mixed feelings.

On the one hand, Baosheng international half year revenue rose 14.5% to 9 billion 515 million yuan, due to the same store sales growth, new stores offering revenue and new online channels. On the other hand, Baosheng international net profit fell 19.6% to 299 million yuan over the same period last year, which is the first time in the past three years, it has seen a decline in the medium-term profits.

As of June 30, 2017, Baosheng international has 5464 Direct stores and 3036 franchises in China.

Among them, there are more than 100 sports brand stores, YYSPORTS Sheng Dao sports city.

Yuyuan group, which focuses on foundry, has a good performance in shoe retailing.

It is reported that Yuyuan group's retail business rose 15% in the first half of this year.

At present, there are 5464 direct counters or shops in China and 3036 shops run by distributors.

But on the whole, the OEM business still occupies the total turnover of 3/4.

According to its interim report, the company's revenue in the first half of 2017 was $4 billion 448 million, an increase of 3.91% over the same period last year, and net profit of $259 million, an increase of 3.95% over the same period last year.

Shenzhou International, the main OEM Nike and Adi sportswear, is earning about $1 billion 300 million this year.

But Shenzhou International, Yuyuan group and other enterprises can hardly avoid the fate of "OEM" for a time.

According to Yuyuan group's official data, its capacity in Vietnam and Indonesia has far exceeded that of Chinese factories.

The use of cheap labor and high-end brands is the survival magic weapon for foundry enterprises and the two mountains they face in the manufacturing sector.

Foundry enterprises live by water. Where labor is cheap, they will take jobs.

In fact, behind this capacity pfer route, there are giants such as Nike and Adidas that control the upstream industry chain. "Order" is the "remote controller" that they control the flow of labor jobs.

Smile curve

"It is urgent for the foundry enterprises with certain capabilities and advantages to pform from the low end of the industrial chain to the high end of the industrial chain, from manufacturing to product design and brand marketing, from OEM to independent innovation and independent brand."

In addition, the stock price of 2368.HK, a subsidiary company of Yuyuan group, also benefited from Yuyuan's recent favorable results and climbed slightly to HK $4.08.

Eagle is mainly Nike, The North Face and Puma brands such as track and field clothing, sports pants, sweater T-shirts and other categories of clothing, the group was founded by Zhong Yusheng in 1993, and I also served as chairman of the Eagle US board in 2002.

Chen Fangmei, the current executive director of the group, has also served as an executive at Baocheng industrial Limited by Share Ltd, Yuyuan group's parent company.

Eagle products are mainly sold in the Asia Pacific region, such as China, Japan, South Korea, Hongkong and Australia.

It is said that Ying Mei will also develop the European and American markets.

Ying Mei said earlier that on the basis of expanding production capacity and optimizing marketing, the average selling price of its products increased, which led to an increase in revenue.

According to Eagle's annual earnings report, the company's operating income during the period was HK $1 billion 758 million, an increase of 14.5% over the same period, and net profit of 155 million yuan, an increase of 23.97% over the same period last year.

Eagle US stock has also gained a rise since the beginning of June, with a cumulative increase of 23% during the period.

At the end of the year, the price of Ying Mei was HK $4.04, and its market value was HK $2 billion.

Therefore, for the foundries, although the profitability is very good at present, it also needs to focus on the long term. If we can realize the pformation from the low end of the industrial chain to the high-end of the industrial chain, the pformation from manufacturing links to product design and brand marketing links, from OEM to independent innovation and independent brand, will undoubtedly play a better role in China's sports industry.

More interesting reports, please pay attention to the world clothing shoes and hats net.