In 2018, The Net Profit Was Only 391 Million Yuan, Resulting In A Decline In Supply Chain Management Revenue.

In February 22nd, the Limited by Share Ltd, the search engine of the special group, released the 2018 annual performance bulletin. During the reporting period, the company achieved a total revenue of 18 billion 522 million yuan, up 0.95% from the same period last year, and realized operating profit of 665 million yuan, down 36.68% from the same period last year. The total profit volume reached 665 million yuan, down 36.58% compared to the same period last year. The net profit attributable to shareholders of the listed company was 391 million yuan, down 36.06% from the same period last year.

The main reasons for the change in performance are as follows:

(1) as a result of changes in the market environment, the company's supply chain management business declined in the fourth quarter compared with the same period last year.

(2) with the increase of the company's financing costs, the annual financial cost of paying 144 million yuan has increased considerably compared with the same period last year.

(3) at present, the garment industry is under great pressure. With the increase of inventory, we need to make adjustments according to the market changes. The provision for inventory depreciation is about 90 million 791 thousand and 900 yuan.

At the end of the reporting period, the total assets of the company amounted to 10 billion 202 million yuan, down 1.24% from the beginning of the period, and the owner's equity of the shareholders belonging to the listed company was 5 billion 310 million yuan, down 5.27% from the beginning of the period; the net assets per share attributable to the shareholders of the listed company were 1.72 yuan, down 3.91% from the beginning of the year.

Prior to that, the 2018 performance forecast amendment was released, and the net profit in 2018 was expected to decrease by 45~25% to 3.37~4.6 billion over the same period. The main reasons include:

1, the supply chain management revenue decline: at present, the search for special supply chain management business has occupied a leading position compared with traditional clothing business. In the first half of 2018, supply chain business realized revenue of 9 billion 100 million yuan, contributing 83% of the total revenue, an increase of nearly 90% over the same period last year.

Since the three quarter of 2018, the company has adapted the market environment to optimize the supply chain business mode, adjusted the development speed of its supply chain business, and slowed down the supply chain business. On the basis of this, it overlapped the macroeconomic changes in the four quarter of 2018, making the main business of the search company less than expected.

2, the increase in financial costs compared to the previous year: in the first three quarters of 2018, the search for special financial expenses increased by 174% to 137 million yuan compared with the end of September 2018. The long-term and short-term borrowings were generally compared to the same period in 2017 and 42% in early 2018, and 19% in early 2018.

In the whole year of 2018, the cost of financing increased, except for the increase in total loans.

3, the increase in inventory depreciation provision: at present, the brand clothing industry is under pressure. The company's revenue growth in the three quarter of 2018 has declined, while some companies have focused on selling rate and channel inventory in the fourth quarter.

With the increase in inventories, the company increased the amount of inventory depreciation, reflecting the sharp increase in asset impairment losses in the fourth quarter of 2018, resulting in a loss in the current quarter.

In the long run, China's textile and garment industry is expected to continue to grow steadily. In the long run, China's textile and garment industry has a large space, high dispersion and low efficiency. As a middleman, the company has played a larger role in improving the efficiency of the industrial chain. Secondly, the adjustment of the original brand clothing business is gradually in place, and actively exploring strategies and measures to adapt to the new changes in the clothing and consumer market. For example, vigorously developing the super market and shopping center channels, establishing a number of sub brands "fashion commodity quick reaction Department", focusing on expanding the fast reverse mode, etc., it is expected that with the adjustment and the sales side will gradually recover, in addition, from the operational side, because the supply chain management business is large in volume and dominates in the company's business, the demand for funds is large, so we need to pay close attention to the company's ability to return money and turnover. Everbright Securities analyst Li Jie said earlier that the search for special supply chain management business is still growing.