Q1 Earned 158 Million Of The 500 Billion Clothing Market In Southern China.

In the first quarter, its revenue was 5 billion 217 million yuan, an increase of 101.4% over the same period, and net profit of 158 million yuan, an increase of 11.2% over the same period last year.

Based on the advantages of the supply chain, the local leisure wear leading enterprise, which is continuously gaining rapid growth in performance, has recently released a quarterly report in 2018. During the reporting period, the company achieved operating income of 5 billion 217 million yuan, an increase of 101.4% over the same period. The net profit of shareholders belonging to the listed company was 158 million yuan, an increase of 11.2% over the same period last year. This is also the continuous net growth of net profit since 2014, which has been maintained for three consecutive years since 2018.

(1) during the reporting period, in order to further consolidate and enhance the market share of supply chain management business, promote profits to customers through promotion, enhance customer viscosity and enhance market influence, the company sells to customers at a more favorable price, prompting the supply chain management business to grow rapidly during the reporting period, increasing from 1 billion 929 million yuan in the same period last year to 4 billion 245 million yuan, driving the company's operating income to grow rapidly.

But sales at a more favourable price also reduced the gross profit margin in the supply chain, down from 8.77% in the same period last year to 4.35% in the reporting period.

During the reporting period, the proportion of supply chain management business revenue to total business income increased continuously, compared with 74.48% in the same period last year, and increased to 81.37% in the reporting period.

Although the supply chain management business revenue grew and sales accounted for further improvement, the gross profit margin of supply chain management business was relatively low, the gross profit margin was 8.77% in the same period last year, and the reporting period was 4.35%, making the growth of net profit far below the increase of operating income.

3. During the reporting period, we should consolidate the operation basis of clothing brands, reduce the pressure of franchisees, encourage terminal stores to inventory, and during the reporting period, the company's clothing sales business will decline.

The income during the reporting period was 385 million yuan, down 8.01% from the same period last year, which affected the growth of net profit.

Insiders said that at present, the number of cooperative customers in the supply chain management business was about 1000, and the number of cooperative suppliers was about 500. In the year 2015/16, revenues from the business reached 197 million yuan and 4 billion 324 million yuan respectively, which increased rapidly. From the point of view, the purchase of raw materials from the search company had a 10% price difference compared with other purchasers. The business could save 2%-6%'s procurement cost and optimize the procurement process, while the gross margin of the company was around 7%. In 2016, the gross profit rate / net interest rate of the business reached 7.7% and 3.9% respectively, and the net profit margin reached 170 million yuan.

The "see prophet" in the review of the financial report also noted that in 2017, the annual report showed that the total revenue of the company during the reporting period was 18 billion 348 million yuan, an increase of 190.14% over the same period last year, and a net profit of 612 million yuan attributable to shareholders of listed companies, representing an increase of 69.43% over the same period last year. The supply chain management business grew rapidly, and the supply chain management company achieved a total operating income of 14 billion 803 million, accounting for 80.68% of the total business income of the year. Net profit of 462 million yuan, accounting for 75.38% of the company's net profit, led to a substantial increase in the company's performance and became the main source of revenue and profit for the company.

Xue Yuan, an analyst at CITIC Securities, said that in terms of profitability, the overall gross profit margin fell to 7.37% in the first quarter of 2018, which was mainly due to the promotion of supply chain management business and the increase in business and the increase in the strength of the clothing store business. The company's management / sales / financial expenses rate dropped to 0.88%, 1.47% and 0.41% during the reporting period, and the net interest rate dropped to 3.63%.

In terms of the business sector, the first quarter of the year's search for special supply chain management business increased by 120.06% to 4 billion 245 million yuan over the same period, accounting for 81.37% of the total revenue and a decline of 4.42PCTs to 4.35% in gross profit margin. The decline was mainly due to the clearance of inventory by the company in the form of promotion and profit making, and the income of branded apparel business fell 8.01% to 385 million yuan, accounting for 7.39%.

From the perspective of channel splitting, the company now has more than 1000 franchisees, and there are about 600 stores in the same store.

Xue Yuan believes that since 2018, the special supply chain has enhanced operational flexibility in the form of standard purchase, while high capital turnover efficiency and customer credit rating system have jointly protected the company's operational safety.

Analysis shows that after the two consecutive years of rapid growth in the supply chain management business, we hope to turn to a more stable stage of development. In particular, we will further manage and optimize the internal management structure, focus on team building and personnel training. Besides, we will quickly enhance our influence and visibility through reasonable profit making, so as to expand more high-quality customers, and lay the foundation for optimizing the customer structure, improving scale and quality in the future.

On the basis of comprehensive judgement, it is expected that in 2018, the operating revenue will grow by about 10%, while the overall gross profit margin will be restored to a reasonable level of 6-7% after straightening out the internal structure.

The industry insiders said that the "fashion front" brand clothing business is still under readjustment, especially in search of the current speed of slowing down the expansion of the channel and continuing to promote the construction of the consortium. It is expected that there will be a certain decline in the revenue under the line, and the joint franchised store is also being launched at the same time. The franchised products are sold to the company and the products that can not be sold can be returned to the company so as to reduce the inventory pressure of the franchisee.

"See prophet" has also learned from the special side that its partner partners in the supply chain management company have many years of experience in the industry and have a leading influence in the local market. They have a certain scale of business, and there are hundreds of millions of businesses with about one billion years of revenue.

Cooperative shareholders are distributed across the country's major textile and garment industrial clusters, and the company is working together with the new supply chain management companies. From the perspective of their cooperation, they find that in order to give full play to the advantages of the original team of the cooperative shareholders, they do not choose the way of merger and acquisition. Instead, they choose to cooperate with the new company, and jointly establish the supply chain management company. The cooperative shareholders have the advantages of business resources and industry experience, but there is often a shortage of funds. They need to bear a high cost of financing. They have the advantages of capital, R & D, procurement planning, etc., and through the partners to import the existing business resources into the newly established supply chain management companies, we complement each other and jointly develop the new supply chain management company.

The newly established supply chain management subsidiary owns more than 51% shareholding, absolute holding and cooperative shareholder participation.

In the business mode, it searches the special supply chain management subsidiary through providing centralized procurement, providing value-added services such as R & D, procurement planning, etc. to provide efficient and low-cost supply chain management services for the textile and garment industry.

By means of advance payment or cash purchase, the company can solve the problems of upstream suppliers' shortage of funds, overcapacity and high vacancy rate of equipment, acquire better bargaining power, strive for preferential purchase price, give profits to downstream customers, reduce downstream procurement costs, and design and develop the core services for upstream and downstream enterprises to provide new products, new styles, cost analysis and popular information, so as to enhance the competitiveness of customers' products, especially in search of a professional R & D design team composed of more than 300 people.

In addition, in the area of procurement planning, the research and development department set up the best procurement plan according to the customers' purchasing needs and fund status.

At the same time, the procurement cost of customers is reduced, and the procurement problems such as the procurement of special varieties of customers are difficult, the procurement is difficult in the busy season and the capital turnover is tight.

At present, more than ten supply chain management subsidiaries have been set up in the country, and the business is developing rapidly. The supply chain management service system has been initially established.

The new wholly owned subsidiary of Mdt InfoTech Ltd, Dongguan search special Mdt InfoTech Ltd, is fully promoting the related construction work of B2B supply chain service platform. With the help of modern information technology, such as Internet, big data, cloud computing and Internet of things, it will strive to build a B2B supply chain service platform with information and services, integrate the upstream and downstream resources of the industrial chain, and provide a perfect and efficient supply chain management service under the online and offline.

"See prophet" was informed that in search of the reasons for the rapid expansion of the supply chain management business,

(1) cooperative shareholders turned out to be large local businesses with customers' resources. They originally had hundreds of millions of businesses and about one billion business scale.

In order to give full play to the advantages of the original team of cooperative shareholders, the company did not choose the way of merger and acquisition. Instead, it adopted the way of co operating new companies to jointly establish supply chain management companies to complement each other. The cooperative shareholders introduced the existing business resources into the newly established supply chain management subsidiaries, and the company provided value-added services such as R & D, procurement planning, and so on, and jointly promoted the rapid development of the business.

(2) the company's supply chain management business model has a significant advantage. Through centralized procurement, it can provide value-added services such as R & D, procurement planning, etc., which can strive for upstream preferential purchase prices, give profits to downstream customers, provide new products and new styles for upstream and downstream enterprises, and provide core services for R & D design, such as cost analysis and popular information, so as to enhance the competitiveness of upstream and downstream enterprises, and promote the pformation of customers to fine management and enhance operational efficiency;

(3) the company has injected capital through capital advantage, effectively alleviating the tense situation of funds, obtaining more preferential purchase price through timely payment, and giving profits to downstream customers, breaking the original balance of the market and attracting more downstream customers, and the scale of business has expanded rapidly, greatly exceeding that of each supply chain management company's original expected revenue of 8-12 billion yuan.

In search of it, the company's supply chain management business has effectively saved the procurement cost for the enterprise and is very attractive to customers. With the gradual increase of the company's business scale, the influence of the company will further enhance, attracting more customers, suppliers and potential partners.

Search related executives have admitted that the textile and garment industry is a very large scale.

The textile and garment market in the single Southern China region has a scale of about 500 billion a year, and the search market is just a little bit of the market and the market is vast enough. Future Ltd still has great room for development.

According to public information, we are mainly engaged in brand apparel operation, supply chain management, brand management, business factoring and so on. We strive to build an integrated service system for serving the upstream and downstream industries of the fashion life industry, making the company the leading edge in China.

Life industry integrated service provider.

In brand

In terms of operation, search is mainly engaged in the design and sales of "frontline frontline" and a series of sub brands. Through the collection of 10 trend brands, we sell them in the "front line" store and create large-scale leisure wear collection stores.

The consumer positioning of the company's clothing brand is 16-35 years old young people, the price is positioned as a parity fashion, and the market positioning is the domestic three or four line market.

Search through special direct franchise and franchise mode in the country to establish sales channels, the three or four line in the country

A leading competitive advantage has been established.

In terms of supply chain management, the search is based on a wholly-owned subsidiary, Dongguan search special supply chain management Co., Ltd. as an operation platform, and investment partners are set up in various textile and garment industrial cluster areas in China to set up stock control companies with different partners, which converge the supply chain resources and market resources of the region, and make use of the company's experience and advantages in centralized procurement, design and research, production management, warehousing and distribution for many years to provide efficient and low-cost supply chain services to customers of fashion industry brands and manufacturers, so as to build a wide coverage and strong supply capability in the whole country.

Industrial supply chain service system.

According to the results of the report, in 2017, there were 11 supply chain management subsidiary companies in Guangdong, Dongguan, Zengcheng, Foshan, Hubei Jingmen, Jingzhou, Jiangsu, Wujiang, Nantong, Nantong and so on.

In the aspect of brand management, a wholly owned subsidiary, Dongguan search special brand management Co., Ltd. is used as the operation platform in the national clothing consumption.

Developed areas invest in the establishment of a number of holding project subsidiary companies, bringing together the region's partners who have rich market resources and marketing capabilities, and use the company's experience and advantages in brand management such as store management, commodity display, brand promotion, personnel training and O2O marketing for many years to develop brand agency marketing business for the brand enterprises of the fashion life industry, and build an efficient and perfect brand operation management service system in the whole country.

During the reporting period, there were 3 brand management and holding subsidiaries in Nanchang, Guangdong, Dongguan and Hubei Wuhan in Jiangxi.

Search company said that in 2018, the company will continue to provide consumers with "super cost performance" casual wear as its goal in the aspect of clothing brand operation. It will inject new kinetic energy into the design and research, marketing promotion, offline integration and supply chain management, give brand new vitality and promote sales performance steadily; while in supply chain management, it will focus on controlling risks and improving business models, strengthen training, continue to expand business scope, launch B2B trading platform, provide efficient and low-cost value-added services to customers, and promote stable development of supply chain management business, so as to provide solid support for the steady growth of company revenue and profits.