Net Profits Continue To Fall, "Folding Wings" Of Birds Can Reborn In Nirvana?

Recently,

In the first half of 2018, the net profit of both companies declined, and its net profit continued to decline since 2016.

In contrast, other domestic sports brands, Anta, Lining and XTEP rose sharply in the first half of 2018, and the net profit of 361 degrees rose slightly.

Financial reports show that

Revenue in the first half of 2018 was 1 billion 536 million yuan, down 2.67% compared to the same period last year. Net profit attributable to shareholders of listed companies was 34 million yuan, down 73.51% compared with the same period last year, and net profit of 30 million yuan, down 71.57% from the same period last year.

By the end of June 2018, the net assets of the precious birds were 2 billion 208 million yuan, down 5.12% from the same period last year, and the total assets were 7 billion 375 million yuan, down 2.73% from the same period last year.

domestic

Other brands, the first half of 2018, Anta earned 10 billion 553 million yuan, an increase of 44.1% compared with the same period last year, operating net profit of 2 billion 689 million yuan, an increase of 41.7% over the same period last year. Lining's income increased by 17.9% to 4 billion 713 million yuan over the same period last year, and net profit increased 42% to 269 million yuan compared with the same period last year. XTEP's income increased by 18% to 2 billion 729 million yuan over the same period, and the net profit increased by 21% to 21% yuan compared to the previous year.

The decline of net profit is mainly attributable to the rise of various operating costs of the company,

These operating costs include "due to the rising cost of raw materials, labor and other factors of production, the production of independent brand of" expensive bird "has decreased compared with the same period last year, resulting in an increase in fixed manufacturing costs allocated by unit cost, and the laying of retail stores under the international line of brand, which led to a 6.28% increase in operating costs.

New brand PRINCE, AND1 business development, related research and development and labor costs have increased, resulting in a total of management fees increased by 23.26% over the same period.

The rise in financing costs has led to an increase of 17.72% in the current financial costs.

In view of the current situation, the business plan for the second half of 2018 is: first, the terminal store adjustment strategy is ongoing, and the new brand business is promoting the development and operation of AND1 and PRINCE brand; two, in the traditional brand business, there are channel resources for locking up the "noble bird" brand, gradually extending from the "retail oriented" wholesale sales mode to the "retail based" direct or direct sales mode; three, strictly implementing the financial budget system, reducing investment risk control costs, disposing of some sports industry layout assets, revitalizing the stock assets, ensuring the benign operation of the core brand sports equipment business; and four, actively seeking high-quality investment projects or partners to jointly promote the industrial layout.

Founded in 1987, you are a comprehensive enterprise that integrates research, production and marketing of sports shoes, clothing and accessories, and landed on the Shanghai Stock Exchange in January 24, 2014.

However, since 2016, due to poor earnings data and continued net profit decline, the operation ability of noble birds has been questioned.

Since June 22, 2018, the price of expensive bird has experienced 6 consecutive limits, and its market value has evaporated nearly 9 billion.

The semi annual report released recently shows that the sales revenue of independent brand of the precious birds decreased by 19.51% compared with the same period last year, and the net cash flow generated by investment activities was -78.82%. In the first half of the year, the agency joined in 496 stores.

Targeting domestic sports

Cheng Weixiong, general manager of textile and clothing brand management experts and Shanghai Liang Qi Brand Management Co., Ltd., told China net financial reporter that Anta, Lining, XTEP, and 361 degree brands had little to do with Lining's adjustment before, but other enterprises basically did not make much trouble. They had been striving for pformation and upgrading in their main business. This is the key factor for their steady performance at present.

At the same time, Cheng Weixiong said that the precious birds ignored the operation of the main brand and spent too much energy on capitalization operations. Meanwhile, the diversification of Pan sports also involved the limited resource allocation of strategic people, and there was a strategic mistake.

After listing, they should allocate appropriate capital to promote the construction of brands, products, channels, supply chains, systems and so on. But in fact, they are less involved. Compared with other brands' investment and pformation and upgrading in main business, they are lagging behind in the development window of pformation and upgrading, resulting in the loss of large sports and health industries.

Revival.

What layout and strategy are there for the current situation? Will there be any star improvement in the future? Is there any possibility of rebirth of Nirvana?