Business Continues To Improve In 2018

Shanghai Metersbonwe Fashion&AccessoriesLtd. (002269.SZ) Shanghai Metersbonwe dress Limited by Share Ltd (hereinafter referred to as "Mei Bang dress") lost its profit in the year of 2018 compared with the same period last year. It recorded a net profit of 40 million 362 thousand yuan, which was narrowed to 12 million 689 thousand yuan. In 2017, the company's net loss was 30 million 480 thousand yuan, and it was 32 million 108 thousand yuan after the deduction.

In the reporting period, the company returned to the heart of the brand, upgrading its products, upgrading its channels, upgrading its retail strategy, constantly improving its competitiveness and improving its business performance to further promote the sustainable and healthy development of enterprises. In 2018, the upgrading effect of product and retail capacity gradually showed that the company's operating income increased by 18.62% over the same period last year, and its operating performance turned into a deficit.

In 2018, the price of American Apparel increased from 6 billion 472 million 400 thousand yuan in 2017 to 7 billion 677 million 400 thousand yuan, while the same store sales rose 7%. Metersbonwe brand income increased by 13% compared with the same period last year, while ME&CITY brand income jumped 48%, while Moomoo and ME&CITY KIDS two children's clothing brands increased sales revenue by 24% over the same period of the year.

Due to over 30% revenue growth, the gross margin of apparel and apparel business in the United States fell sharply by 279 basis points to 44.83% during the reporting period, of which men's and women's gross margins were 45.11% and 45.12%, respectively, dropping 305 basis points and 213 basis points respectively.

At the end of February, the release of the performance bulletin was released at the end of February. The announcement of the impairment plan was made to prepare for the 2018 annual asset impairment allowance of 311 million yuan, including 229 million 500 thousand yuan for inventory impairment and 48 million 131 thousand yuan and 39 million 563 thousand yuan for accounts receivable and long-term amortization respectively.

After the rapid expansion and the failure of the investment business and being referred to the Xu Xiang case, the main business of Smith Barney has been losing for three years, and the founder Zhou Chengjian also abdicated at the end of 2016, and turned to the front line command. The front desk was handed over to a pair of girls and sons. The daughter, Hu Jiajia, who was born in 1986, is currently the chairman and President of the American bond dress. Hu Zhoubin, who was born in 1988, served as the Secretary of the board of directors of the company. Zhou Chengjian himself is still the actual controller of Shanghai garment Investment Co., Ltd., the largest shareholder of Mei Bang dress, and the latter owns 50.65% of American state clothing.