Over 2 Billion 200 Million Of The Taiping Bird, Who Made A Net Profit Of 572 Million Last Year, Would Earn 7 Hundred Million This Year For 4.

Ningbo Taiping bird fashion apparel Limited by Share Ltd (hereinafter referred to as "Taiping bird") recently released the 2018 annual report. During the reporting period, the company achieved operating income of 7 billion 710 million yuan, an increase of 7.78% over the same period, and the net profit attributable to shareholders of listed companies was 572 million yuan, an increase of 27.51% over the same period last year.

Basic earnings per share of 1.2 yuan, are the best performance since the establishment of the company.

The company's latest allocation scheme pays dividends of 10 yuan for every 10 shares and a dividend yield of 4.93%.

By the end of December 31, 2018, the amount of money and financial products held by Taiping bird amounted to 2 billion 100 million yuan, accounting for 31.63% of the company's total assets and sufficient cash reserves.

The company turnover ratio is 1.86, the asset liability ratio is 46.86%, the total liabilities of the company are controllable and the debt repayment ability is good.

The net cash flow generated by the company's business activities in 2018 was 853 million yuan, an increase of 237 million yuan compared with the same period last year, an increase of 38.57%.

According to public information, the Taiping bird group was founded in 1989. The "Taiping bird" brand was founded in 1995. After 20 years of development, Taiping bird group has developed from a single garment enterprise to a comprehensive industry group with clothing brand's creative research and development, fashion design and marketing as the core of the industry.

The company's brands include PEACEBIRD women's wear, PEACEBIRD men's wear, LEDiN Lok dress, MiniPeace children's wear and MATERIALGIRL dress, PETiTAVriL Bei sweet children's clothing, PEACEBIRDLIVIN 'Taiping bird nest home, etc.

Southwest Securities analyst Cai Xin said that in the apparel industry showing a weak recovery pattern, industry demand has been warmer, Taiping bird main business steady development, performance has been significantly improved.

In the 2013-2016 year, the company's operating income showed an overall upward trend, but the growth rate of revenue declined all the way. The growth rate dropped from 49.4% in 2013 to 7.1% in 2016.

In 2016, the net profit of Taiping bird showed a downward trend with a growth rate of -20.2%, mainly due to three factors, such as the poor sales situation, the rapid expansion of direct channel and the increase in inventory depreciation.

In 2017, the Pacific bird realized its operating income of 7 billion 160 million yuan, an increase of 13.1% over the same period last year, and a net profit of 450 million yuan, an increase of 4.9% over the same period last year.

The company's revenue growth is due to the rapid growth of MiniPeace and MATERIALGIRL women's clothing brands, with a larger increase in revenue than the same period last year.

The company's net profit growth is mainly in men's wear and children's wear sales performance is good, women's clothing, Lok Ting adjustment in place, electricity supplier sales performance is excellent, inventory structure optimization, so that the second half of the company's performance improvement is good.

In 2018, Taiping bird's performance revenue grew steadily. During the reporting period, Taiping bird firmly pushed forward the three major development strategies facing the future of digitalization, experience and supply chain, achieving a better growth of comparable store profits, a substantial loss reduction and a new store opening effect.

Observation shows that the adjustment of the store format and supply chain optimization make the Taiping bird's gross profit rate continue to rise.

Cai Xin introduced that the gross profit margin in 2013-2106 years increased year by year, from 51.8% to 55%, mainly due to the gradual enhancement of the competitiveness of the core brand of Taiping, the gradual increase of its pricing power, and a slight increase in the gross profit margin of the main products.

In 2017, Taiping bird's gross profit margin dropped 2 percentage points to 53% over the same period last year, because the discount sales promotion was bigger than in 2016, especially the double "11" digestion stock dynamics is bigger, each brand gross margin drops to varying degrees.

In 2018, Pacific bird's gross profit margin increased by 0.48pp to 53.4%.

The results showed that in 2018, Taiping bird finished inventory of 1 billion 840 million yuan, representing a decrease of 2 million 296 thousand yuan compared with the end of last year, a decrease of 0.12% compared with the same period last year. The number of days of inventory turnover was 184 days this year, which was 1 days less than that of last year. The main reason is that the Pacific bird TOC commodity management mode promotes and strengthens the over season handling of goods, while the net income of the end of the year is lower than that of the previous period.

At present, the reform effect of the company's commodity management has already appeared. Taking the 2018 summer commodities as an example, compared with the same period in 2017, the retail turnover rate increased by 2%, the sales rate increased by 6%, and the quarterly merchandise inventory dropped by 12%.

Sun Yu, a researcher at China Merchants Securities, believes that since 2018, the design innovation of Taiping bird products has been continuously improved. The TOC system helps boost the efficiency of the supply chain, and strengthens the fine management capabilities of the terminal channels. It is estimated that in the next 2-3 years, with the adjustment of small brands and affiliate channels, the revenue is expected to maintain a steady growth rate of double-digit.

During the reporting period, Taiping bird also adopted a prudent strategy to expand the store to shift the focus of the store to the shopping center, paying more attention to the operational benefits of the new expansion shops, and actively closing down the direct outlets that are not profitable.

In 2018, the company expanded 343 stores, and the total number of stores was 4594 in December 31, 2018.

In 2018, Taiping bird line business started 10th anniversary. GMV has increased from 7 million yuan in the first year to 3 billion 600 million yuan in 2018. Double eleven GMV has increased from 520 thousand yuan when it first established to 818 million yuan in 2018.

Although facing the challenges of the rapid growth of traditional e-commerce channels and the growth of online sales return rate, the company has actively expanded new channels for social business, while exploring new retail outlets with Alibaba, Tencent and other companies to establish and continuously consolidate the foundation of whole network retail.

In 2018, Taiping began to promote the implementation of TOC management mode in clothing brand, strengthen inventory control, formulate consumer centered commodity strategy and quick response supply chain, integrate company information data to build commodity terminal + retail platform for large commodity visualization, and begin to use artificial intelligence technology to assist manual decision making.

At present, the reform effect of the company's commodity management has already appeared. Taking the 2018 summer commodities as an example, compared with the same period in 2017, the retail turnover rate increased by 2%, the sales rate increased by 6%, and the quarterly merchandise inventory dropped by 12%.

In 2019, Taiping bird will continue to increase its retail sales and business revenue, effectively reduce product costs and operating costs, plan to achieve operating income of 8 billion 800 million yuan, net profit attributable to shareholders of listed companies 700 million yuan, around the above objectives, the company decided 2019 key work plan is as follows:

In 2019, Taiping bird will further deepen the management of commodity depth, steadily promote the management of commodity liquidity, start the AI aided decision-making, and begin to try to roll the R & D Based on market feedback, enhance the seasonal and burst probability of goods, and actively promote the optimization of supply chain, while strictly controlling the cost, and further shorten the time to catch up and improve the efficiency of operation.

In 2019, Taiping bird will rely on the improvement of commodity efficiency. Through channel optimization and upgrading of retail capabilities, it will build the direct channel operation capability as one of the core competitiveness of the company, thereby enhancing its profitability.

In 2019, Pacific bird will continue to take franchisees as an important part of the company's strategic layout, focus on franchisee's commodity management, help and guide franchisees to achieve efficient orders and efficient circulation of goods, enhance the rate of goods sold out, reduce the franchisee's inventory, and effectively enhance the profitability of franchisees.

In 2019, Taiping bird will continue to adhere to the consumer centered concept and make every effort to push forward the new retail practice in cooperation with Alibaba, Tencent and other companies. From the perspective of application tools and management mechanisms, we will explore two ways to integrate online and offline business, so as to achieve seamless marketing of the whole network. The online store will continue to focus on developing shopping mall channels, while strengthening the development of outlets, continuously optimizing the layout of stores, and building and constantly consolidating the basis of whole network retail.