The Warning For The Second Half Of The Year Was 31St, And The Net Profit After Tax In 2018 Was Much Lower Than Expected.

On the evening of February 14th, the announcement was made that the net profit after the year ended December 31, 2018 was expected to drop significantly compared with the end of December 31, 2017, mainly due to a loss in the second half of 2018.

The reasons for the decline in performance include: the Chinese people's consumption desire for non Essentials (such as group products) is relatively conservative, so that the replenishment orders are reduced; the group implements logistics management optimization plan and rearranges the delivery schedule during the year; and for the long-term development of the group, the brand remolding plan is launched in the second half of 2018 to better meet the changing needs of the target consumers, so that the group's total orders in 2018 are reduced as a whole. In 2018, the RMB depreciated against the US dollar, causing the company to have a foreign exchange deficit; because of the increase in advertising and publicity expenses, the group's e-commerce business suffered a heavy loss in 2018.

In February 1st, the standard & Poor's research report predicted that the sales growth of 31st degree would slow down, coupled with the fierce competition with global brands and the rise of local brands of Chinese sportswear, it is expected that its market share will be lost in the next 12 months, confirming its "BB" long-term issuer credit rating, but the rating outlook will be changed from "stable" to "negative".

S & P explained that lowering the outlook of the 360 degree rating reflects the weakening of the growth prospects of the company and the decline in the market share.

In 2018, the shares fell more than 38%.