Sanfo Outdoor Four Subsidiaries Losses Were Asked

In view of Sanfo outdoor Wuhan Sanfo outdoor products Co., Ltd. (hereinafter referred to as "Wuhan Sanfo"), Daqing Sanfo outdoor products Co., Ltd. (hereinafter referred to as "Daqing Sanfo"), Beijing sporting goods Co., Ltd. (hereinafter referred to as "Yue sports"), Ningbo Song Shi Cci Capital Ltd (hereinafter referred to as "Song Shi") four subsidiaries are all losses, in April 10th, outdoors has issued a notice to reply to the Shenzhen Stock Exchange's inquiry.

Among them, the business mode of Wuhan Sanfo is mainly outdoor products retail, and group buying business is subsidiary.

In 2017, Wuhan Sanfo business income was 7 million 755 thousand and 800 yuan, net profit loss 1 million 469 thousand and 700 yuan, 2018 operating income 7 million 482 thousand and 500 yuan, net profit loss 608 thousand and 400 yuan.

For the reasons for the loss, Sanfo outdoor said it was mainly affected by the location of shops, passenger flow and the supply of core brands, resulting in insufficient profit.

Looking forward to the development of Wuhan Sanfo in 2019, Sanfo outdoors pointed out that it will strengthen its operation and management, strengthen communication and interaction with headquarters, ensure the full sale of goods, regularly adjust store display, cooperate with timely marketing activities, improve passenger flow, organize related outdoor activities and various sharing sessions, and enhance Wuhan Sanfo's local influence and profitability.

Unlike Wuhan Sanfo, the business mode of Sanfo in Daqing is mainly retail and product group buying.

Daqing Sanfo's operating income in 2017 was 594 thousand and 500 yuan, net profit loss was 508 thousand and 300 yuan, operating income in 2018 was 5 million 369 thousand yuan, net profit loss was 643 thousand and 600 yuan.

Regarding this, Sanfo outdoor pointed out in the announcement, Daqing Sanfo started operation in November 2017, at present the operation time is short, the sales revenue did not achieve anticipated.

In 2019, Daqing Sanfo will optimize its product structure, increase publicity and promotion efforts to improve sales revenue and profitability based on local consumer demand.

For the loss of Yue sports, Sanfo outdoor explains that the business mode of sports is mainly retail and multi brand running products, supplemented by other outdoor products.

Yue sports business income in 2017 was 5 million 495 thousand and 400 yuan, net profit loss was 1 million 11 thousand and 300 yuan, operating income in 2018 was 14 million 689 thousand and 600 yuan, net profit was 767 thousand and 200 yuan, mainly affected by high operating costs and low gross margin of sales, and it has not yet been profitable.

In 2019, Yue sports will optimize the internal organizational structure, reduce the labor cost, improve the sales revenue of e-commerce business, increase the sales revenue of private brand products and the gross profit margin of sales.

Song Shi Sanfo is an investment management company jointly invested by the company and Shanghai Song Shi Xiang Jin investment partnership (limited partnership). Its registered capital is 12 million yuan, and the proportion of Sanfo's outdoor contribution is 20%. Its main business is investment related to the main business of the company, and the target items of outdoor products.

In 2018, Sanfo participated in overseas M & A projects. After paying the agency fee and bidding the bidding company, the project was not completed, resulting in a loss.

In view of the above situation, Sanfo outdoor said that at present, Sanfo is actively looking for suitable target projects, and projects that are in line with the direction of the company's business development and beneficial to the development of the company will continue to develop.

In fact, over the past 2018 years, Sanfo's outdoor revenue performance and its net profit both rose, but the net profit did not appear.

At the Shenzhen Stock Exchange, when asked whether Sanfo had "continuous profitability", Sanfo outdoor pointed out that in 2018, Sanfo's outdoor main business revenue still came from outdoor sales, revenue increased by 17.51% over the same period last year, and exceeded the total retail sales growth.

At the same time, after nearly two years of business adjustment, Sanfo outdoor has deepbed the integration of online and offline sales and service integration and modern logistics construction, pays attention to the research and development of its own brand, and has established strategic cooperation with several internationally renowned ice and snow products brands, providing a guarantee for Sanfo's main business development.

With the healthy and rapid development of outdoor events, tours, group construction and parent-child outdoor parks, the company has a sustainable profitability.

During the reporting period, Sanfo outdoor completed the strategic layout of the three major business segments: outdoor sporting goods + sports events + parent-child outdoor parks, and gradually built a complete outdoor industry operation platform.

However, because outdoor services, especially parent-child outdoor park projects are in the breeding stage, the income has not yet been reflected.

According to the insiders, the layout and development of Sanfo outdoor parenthood outdoor park will become a new profit growth point.