Lining Earned 4 Billion 713 Million Yuan In The First Half Of The Year, And Business And Children'S Clothing Business Increased.

Electricity business and children's clothing segmentation led to the development of Lining in the first half of 2018.

Before August 13th,

Released the interim results in 2018: as of the 6 months ended June 30, 2018, Lining realized the income of RMB 4 billion 713 million yuan (the same below), an increase of 17.94% compared with the same period last year, gross profit 2 billion 294 million yuan, an increase of 20.47% over the same period last year, net profit rose 42% to 269 million yuan, and the profit and loss of the company's equity holders should be 269 million yuan, an increase of 41.97% over the previous year; 11.10 per cent of the basic earnings per share; and no dividend payment.

At the same time, the company's operating capital situation continued to improve significantly: revenue rose by about 17.9%, while the average operating capital (the amount before provision) improved (down) by 8%; the cash cycle cycle was further improved (shortened) for 11 days (2017:56 days / 2018:45 days).

Overall, Lining's same store sales and new retail sales have been doing well in the past six months.

During the reporting period,

The overall retail flow recorded a growth in the middle of 10%-20%, and the same store sales recorded a high number of units. The new line of retail sales recorded a growth in the middle of 10%-20%; the new product accounted for 3 percentage points, leading to a gross profit margin of one percentage point to 48.7%.

At present, Lining continues to take basketball, running, training, badminton, sports and fashion as the five major categories, the footwear income increased by 8.6% to 2 billion 190 million yuan, and clothing revenue increased by 30.7% to 2 billion 300 million yuan.

In terms of channels, Lining has continued to improve in the past six months, continue to close down the loss shops and upgrade inefficient shops, strengthen sales network coverage and optimize the channel structure.

Up to the second quarter of June 30, 2018, the same store sales of the whole platform increased year by year.

Retail (direct operation) channels grew year by year with high number of units. Wholesale (franchised dealer) channels grew year by year, while the electricity business grew fastest. In the first half of the year, the revenue reached 980 million yuan, with a growth rate of nearly 35%, accounting for 20.8% of total revenue.

Lining's electricity business has been increasing in the past three years.

In the first quarter of 2018, Lining's e-commerce business grew at an annual rate of 30% to 40%.

When the annual report was released in March this year, Lining said that the electricity business grew by 10% to 20% in 2017.

As for sales outlets, as of June 30, 2018, the total number of Lining outlets (including Lining YOUNG) totaled 6898, representing a net increase of 168 over the previous quarter and a net increase of 463 in 2018.

Of the 463 sales outlets that had been net increased, Lining YOUNG increased 458 by net (took over 361 authorized dealers in January 1, 2018), and the retail business decreased by 39, and the wholesale business increased by 44.

Lining's children's wear performed well in the first half of 2018.

In 2017, Lining YOUNG children's wear brand was rebuilt. The official said that the brand is to provide more professional sports facilities for young people to meet the needs of young people.

In 2018, Lining YOUNG built a system and launched a full scale operation in products, channels, marketing and other aspects.

As of June 30, 2018, Lining YOUNG business has covered 29 provinces, with a total of 631 shops.

In terms of multi brands, Lining introduced China's professional dance brand Danskin in 2016, and now has 10 stores, which are positioned as high-end women in the Chinese market.

Sports brand is expected to increase to 15-20 in the second half of this year.

Lining made his two appearance in the international fashion week in the past six months.

In the past six months, Lining has made a high-profile appearance during the 2018 autumn winter New York international fashion week and the 2019 spring summer Paris international fashion week.

A series of exhibits that are highly integrated.

But the appearance on the international stage failed to bring Lining's overseas business.

In the first half of 2018, Lining's International

Further atrophy.

In the first half of the year, China's market share accounted for 98.4%, which increased by about 0.7 percentage points, and overseas income declined by nearly 20% to 73 million 640 thousand.