The Decline In Stock Prices Led To A Sharp Decrease In Investment Income In 2018. Kappa Net Profit Of The Parent Company Fell By 60%

In February 27th, the China trend announced that as of December 31, 2018, the company's year-on-year revenue increased by 17.3% to 1 billion 706 million yuan, and gross profit (before it was allocated back to the inventory impairment loss) increased 10.8% to 955 million yuan over the same period, but net profit decreased by 60.9% to 315 million yuan over the same period.

For the decline in net profit, China trend chairman Chen Yihong said in the report that the main stock market index continued to decline in the second half of 2018, and the stock prices such as Alibaba held by the group also fell. But with the stock market turning better, as of the current performance announcement, the loss of stock prices has all recovered.

It is noteworthy that 2018 is a year of reform in China. In China, China has begun to introduce new customers and open up new models. Meanwhile, in the first half of 2018, China moved to develop new customers in Hebei, Jiangsu, Shandong, Hunan, Guizhou and other regions, and continued to develop a new business model of direct operation. Data show that as of December 31, 2018, the number of self distribution and retail outlets operated by China's Kappa brand through retail subsidiaries has reached 538. In 2018, the sales volume of its self operated channel business reached 747 million yuan, an increase of 138 million yuan compared with the sales of self operated channel business in 2017, and the proportion of self operated business in China's Kappa business sales reached 63.6%.

However, China's trend is still facing great competition pressure. On the day before China released its performance report, the domestic sports brand "one brother" Anta also released its annual performance. During the period, Anta achieved 24 billion 100 million yuan in revenue.

Chen Yihong pointed out that in recent years, the Chinese government has been making good policies to support the development of the sports industry. Domestic sporting goods companies have been looking at international brands, and spannational acquisition activities are frequent. In the new period of development of sports goods industry, how to grasp the market opportunities at home and abroad and deepen the market segmentation is an important issue facing the group.