Expanding New Business Sanfo Outdoor Business Revenue Growth Is Weak

Sanfo outdoor said that with the increase in the amount of provision for human cost and inventory depreciation, the net profit of shareholders belonging to listed companies in 2017 fell sharply compared with the same period last year.

In June 14th, Beijing Sanfo outdoor products Limited by Share Ltd (hereinafter referred to as "Sanfo outdoor") responded to the Shenzhen Stock Exchange's inquiry that, under the background of the overall economic downturn, Sanfo's outdoor main business revenue growth was weak, management expanded new businesses, continuously increased R & D investment in private brands, increased input costs of large event organizations and outdoor camp projects, and increased the net amount of profits attributable to shareholders of Listed Companies in the 2017 year by year, along with the increase in the amount of provision for human cost and inventory depreciation.

Previously, Sanfo outdoor annual report released in 2017 showed that Sanfo's outdoor revenue in 2017 was 351 million yuan, down 0.53% compared with the same period last year, and net profit attributable to shareholders of listed companies was -1291 million yuan, down 136.49% compared with the same period last year. Net profit attributable to shareholders of listed companies after deducting non recurring gains and losses was -1648 yuan, down 149.14% compared with the same period last year. Net cash flow generated by operating activities was -3490 yuan, down 3725.92% compared with the same period last year.

In response, the Shenzhen Stock Exchange asked Sanfo outdoor to inquiring about the net profit of the company and the net cash flow from operating activities.

In view of the fact that the net cash flow has dropped considerably over the past year, Sanfo outdoor said in its announcement that Sanfo's outdoor business increased by 3 stores in 2017 and adjusted its product mix.

At the same time, the cash flow of business activities caused by Sanfo's outdoor expansion new business, payment to employees and cash increase for staff and workers and other factors decreased considerably.