Semir Apparel 2018 Revenue Grew Steadily, Inventory Growth Cited Concerns

Recently, Semir apparel (002563, SZ) introduced the company's 2017~2018 development in investor activities.

Morima Fukusomegumiharu said that 2018 was the year of dividend release.

In 2018, the company's business development was good, the first three quarters of revenue and profits have achieved more than 20% growth, the fourth quarter of the overall operation is good, the retail end year-on-year growth.

The growth rate showed a slowdown in the second half of the year compared with the first half of the year, and the annual revenue performance was in line with the business plan.

At the beginning of this year, Semir clothing also issued a series of related announcements to launch the children's wear market.

Big boy market enters "Red Sea"

Why did Zong Huichun say that Semir clothing entered the bonus release period last year?

In fact, Semir's clothing last year's semi annual report, the three quarterly report has been reflected.

Semir clothing 2018 semi annual report shows that during the reporting period, the company achieved operating income of 5 billion 532 million yuan, an increase of 24.80% over the same period last year, and realized a net profit of 667 million yuan to shareholders of listed companies, an increase of 25% over the same period last year.

Its three quarterly report in 2018 showed that the company achieved 4 billion 232 million yuan in the third quarter, up 17.25% compared with the same period of the previous year; the net profit of shareholders belonging to listed companies was 604 million yuan, up 26.41% from the same period.

As a matter of fact, the children's clothing business which started with casual wear has attracted more attention from the children's clothing business of.

The company's semi annual report in 2018 showed that the children's clothing business realized 2 billion 869 million yuan in the reporting period, accounting for 51.86% of the total revenue.

Cheng Weixiong, general manager of Shanghai Liang habitat Brand Management Co., Ltd. analyzed to "daily economic news" reporter, "Barbara has been doing well online and offline, but with the brand of children's clothing springing up like mushrooms, the popular brand of children's wear has actually entered the Red Sea stage in the past two years.

The involvement of many brands and capital at home and abroad has led to the blowout of children's clothing, and the market capacity is not as huge as it imagined. Balbara's development has also slowed down significantly, while the profit margin has been narrowed by competition.

Semir clothing seems to have realized this.

At the beginning of this year, it issued a series of related announcements and made a high-profile market for children's wear.

In the evening of January 8th, the company announced that it was planning to sign a joint venture contract with KIDILIZ GROUP, the largest children's clothing group in Europe, and jointly set up a joint venture, happy chestnut (Shanghai) Co., Ltd. (hereinafter referred to as the "joint venture"), and the joint venture company will promote the brand of KIDILIZ GROUP and sell its products and develop related businesses.

According to the announcement, Semir apparel invested 21 million yuan in cash, accounting for 70% of the registered capital of the joint venture company.

The joint venture's business scope covers clothing, footwear, accessories, cosmetics, glasses, household products, design, sales, import and export, technology development, technology pfer and business consulting.

Public information shows that Kidiliz Group is a European high-end children's clothing industry, headquartered in Paris, France, has 11000 sales outlets and 829 stores.

Its own Absorba, Catmini and other 10 own children's wear brands and Kenzo Kids, Levi 's Kids and other 5 authorized business brand.

Meanwhile, in the evening of January 8th, Semir clothing announced that it intends to set up a wholly owned subsidiary, Shanghai Sen he Enterprise Management Co., Ltd. (hereinafter referred to as Shanghai Sen he) with its own funds, with a registered capital of 20 million yuan, mainly engaged in business management consulting and business information consultation.

Year-on-year growth in inventories

It is worth noting that Semir clothing announced in May last year that it signed the final binding offer on acquisition of Kidiliz group with Inchiostro SA and its annex "share purchase agreement" and other documents, and intends to acquire SofizaSAS100% equity and creditor's rights.

To smooth the implementation of the relevant agreements, the company intends to set up a wholly owned subsidiary Semir Holdings (Hongkong) Limited in Hongkong, China, with a registered capital of 10 thousand Hong Kong dollars, and acquire SofizaSAS100% equity and debt through the company.

For this acquisition, Cheng Weixiong said that foreign brands have advantages in brand positioning, design and research, operation and promotion, supply chain management and so on.

However, related earnings showed that as of December 31, 2017, the total assets of Kidiliz Group were 496 million euros, the total liabilities amounted to 210 million euros, and the net assets were 285 million euros; in 2017, the Kidiliz group achieved operating income of 427 million euros, the pre tax net profit was 24 million euros, and the net profit after tax was negative 27 million euros.

At the same time, Semir clothing 2018 three quarterly report shows that as of September 30th last year, the net cash flow generated by the company's business activities was 29 million 171 thousand and 500 yuan, down 95.36% from the same period last year.

In addition, as of the end of the third quarter of 2018, the company's inventory was 4 billion 165 million yuan, an increase of 23.90% over the same period last year.

In this regard, Cheng Weixiong believes that Semir's affiliate order mode has some risks. "First, six months ahead of time ordering has limitations in the trend trend; secondly, although Semir has introduced 10 to 20% fast single and small batch orders on the basis of the existing order mode, it has increased nearly 25% compared with its year-on-year growth in inventory, and the role of small batch ordering is limited. Semir's decision to join the brand decides that Semir can not directly control stores as a brand dealer, and the instructions of branding cannot reach the store quickly.