Search For 2018 Revenue 18 Billion 500 Million, Liabilities 4 Billion 500 Million To Raise Funds 11 Billion To Build Supply Chain Headquarters And Other Projects

The Limited by Share Ltd (hereinafter referred to as "search special") issued the "public issuance of Switching Company bond plan" on the evening of April 15th. The company plans to issue a total amount of RMB 1 billion 100 million yuan (including 1 billion 100 million yuan).

In addition, the 2018 annual report was released in the evening of April 15th. During the reporting period, the company achieved operating income of 18 billion 519 million yuan, an increase of 0.93% over the same period last year. The net profit attributable to shareholders of listed companies was 369 million yuan, down 39.72% from the same period last year.

For the reasons for the change in company performance, he explained that

1, during the reporting period, we searched for the steady development of supply chain management business. With the change of market environment, the company slowed down its growth rate. In the fourth quarter, the supply chain management business of the company decreased over the same period last year. However, as the supply chain management business grew faster in the first half of the year, the supply chain management business in the whole year increased by 4.09% over the same period last year, and realized operating income of 15 billion 408 million yuan, accounting for 83.20% of the total annual revenue of the company.

In order to enhance the viscosity of supply chain management business customers, consolidate the market and sell at more favorable prices, the gross profit margin of supply chain management business has declined, resulting in a decrease of 39.01% in net profit of supply chain management than in the same period last year, and a net profit of 281 million yuan, representing 76.26% of the company's net profit.

Supply chain management is still the main source of revenue and profit for the company.

2, during the reporting period, by the impact of the market economy and the warm winter weather in the south, the brand clothing business of the company decreased slightly compared with the same period last year, achieving a total operating income of 1 billion 475 million yuan, down 3.58% from the same period last year.

3, with the increase in the cost of search and financing, the total cost of the reporting period was 180 million yuan, up 151.66% from the same period last year.

4, at present, the pressure of the garment industry is relatively large. With the increase of inventory, we need to make adjustments according to the market changes. The inventory price drop in the reporting period is 102 million yuan, an increase of 77.51% over the same period last year. At the same time, with the growth of the accounts receivable balance at the end of the year, the provision for bad debts in the reporting period was 58 million 121 thousand and 200 yuan, an increase of 54.05% over the same period last year.

From the perspective of business structure, "material" is the main source of revenue.

Specifically, the "material" business income is 15 billion 840 million, accounting for 85.9% of revenue.

"Clothing" business revenue was 1 billion 480 million, revenue accounted for 8%.

"Other products" business revenue was 1 billion 130 million, revenue accounted for 6.1%.

From the perspective of profit contribution, gross profit of materials is the largest.

During the reporting period, the total gross profit margin of search was 7.8%, down 1.6 percentage points over the same period.

Among them, the gross profit contribution of "material", "clothing" and "other products" accounted for 59.2%, 36.5% and 4.3% respectively.

Gross margins of "material", "clothing" and "other products" were 5.3%, 34.8% and 5.4% respectively.

Analysts said that at present, the search for special supply chain management business has dominated the traditional clothing business. However, since the three quarter of 2018, it has adapted to the changes in the market environment, optimized the supply chain business mode, adjusted the development speed of its supply chain business, and slowed down the supply chain business. On this basis, it overlapped the macro environmental changes in the four quarter of 2018, which made the current main business less than expected.

On the basis of consolidating and upgrading the existing clothing brand business, we have made full use of the resources accumulated by the company in the fashion industry for many years and the investment layout, vigorously developing the value-added service areas of the fashion life industries such as supply chain management, brand management and so on, providing a full range and multi-level value-added services for all links in the industrial chain, and making the company the leading service provider of the fashion life industry in China.

In 2019, he will continue to push forward all kinds of management work around the company's development strategy plan with the principle of strengthening management, controlling risks and steady development.

(1) in the company's internal management.

We should comprehensively promote the organizational system construction, system construction and cultural system construction of the company, further clarify the responsibilities of the post, stimulate the spirit of company employees' courage and commitment, implement the employee stock ownership plan, form the benefit sharing and risk sharing mechanism of the employees and shareholders of the company, strive to increase revenue and reduce expenditure, and actively cope with the pressure of declining performance.

(2) brand apparel operation.

We attach great importance to the new changes in the apparel consumer market, which is booming in the new retail mode.

In depth research and active practice of new technologies such as integration of online and offline, big data, artificial intelligence and other new technologies, reconstruction of retail formats of people's freight yard, new media dissemination and other new topics, focus on "frontline front-line" brand costumes, and strive to promote "fashion frontline" clothing brand to make new breakthroughs in the clothing market of new retail sales.

一是以紅標“潮流前線”統籌原有的銷售渠道，實施“期貨+快反”制度，為“潮流前線”品牌服飾發展注入新活力；二是以藍標“潮流前線”探索“全快反”發展模式，成立“快時尚品牌事業部”，安排 50 家店鋪作為“全快反運營測試店”，從產品設計、生產、訂貨、銷售等方面全面革新，為“潮流前線”品牌服飾發展探索新路子；三是積極利用網絡時代的新媒體，如微信、微博、抖音、快手、小紅書等社交平臺及直播、店播等自媒體，與年輕消費者隨時隨地互動，增強流量、聚集粉絲，強化品牌粘性，為“潮流前線”品牌傳播銷售提供新路徑；四是適應服飾市場渠道的新變化，積極開拓商超和購物中心，為“潮流前線”品牌服飾銷售增加新渠道；五是狠抓產品質量，踏踏實實做好產品，給消費者提供“超級性價比”的產品，為“潮流前線”品牌服飾增強核心競

Struggle.

(3) supply chain management.

Focusing on R & D design, providing new products for upstream and downstream customers, focusing on centralized procurement and improving business models, strengthening management, controlling risks, expanding business scope, providing efficient and low-cost value-added services, and promoting stable development of supply chain management business, providing solid support for the steady growth of company revenue and profits.

(4) continue to increase financing.

In order to promote the implementation of the company's development strategy plan, the company will make full use of all kinds of financing tools, such as bank credit, issuing financing bonds, issuing convertible bonds, etc., and continue to increase the financing intensity, so as to provide strong financial support for the implementation of the company's strategic planning.

(5) continue to promote the infrastructure construction of the company.

During the reporting period, the company acquired the right to use state-owned construction land in East China regional headquarters, southeast regional headquarters and Dongguan supply chain management headquarters.

In 2019, the company will do a good job in planning the related construction projects, strive for early construction, and provide a solid base for the company to complete the strategic layout of the whole country and become the comprehensive service provider of China's leading fashion life industry.

According to public information, we are mainly engaged in brand apparel operation, supply chain management, brand management and so on. We strive to build an integrated service system for the upstream and downstream businesses of the fashion lifestyle industry, and build the company into the leading service provider of fashion life industry in China.

In terms of brand apparel operation, search is mainly engaged in the design and sales of "fashion frontline" brand clothing. Consumers of "fashion frontline" brand clothing are targeting 16-35 year old young people. The price is priced at parity, and the market is positioned as the three or four line market in China.

Through the combination of direct and franchising, the company has established a sales channel in the whole country, and has established a leading competitive edge in the domestic three or four line market.

In the aspect of supply chain management, we searched the whole supply chain of Dongguan search special supply chain management Co., Ltd. (hereinafter referred to as "supply chain management company") as the operation platform, and set up supply chain management subsidiaries in various textile and garment industrial cluster areas in China, respectively, to supply supply chain resources and market resources in the region. We used the company's experience and advantages in centralized procurement, design and research, production management and warehousing and distribution for many years to provide efficient and low-cost supply chain services for customers of fashion industry brands and manufacturers, and build a supply chain management service system with wide coverage and strong supply capability in the whole country.

During the reporting period, there were 12 supply chain management subsidiaries in Guangdong, Dongguan, Zengcheng, Foshan, Hubei Jingmen, Jingzhou, Jiangsu, Wujiang, Nantong, Nantong, Nantong and so on.

In terms of brand management, a wholly owned subsidiary, Dongguan search special brand management Co., Ltd. (hereinafter referred to as "brand management company") is used as an operation platform to invest in the establishment of several brand management subsidiaries in the developed areas of the national clothing and consumer market. It brings together the rich partners in the region's market resources and marketing capabilities, and uses the company's experience and advantages in brand management such as store management, commodity display, brand promotion, personnel training and O2O marketing, to develop brand agency marketing business for the fashion life brand enterprises, and to build an efficient and perfect brand management service system in the whole country.

During the reporting period, there were 3 brand management subsidiaries in Nanchang, Guangdong, Dongguan and Hubei Wuhan in Jiangxi.

In 2018, the company was selected as fortune 500 in China, ranking 402nd, the top 500 in China's private enterprises, ranked 414th, and the 100 largest enterprises in China's apparel industry, ranked 100 in the sales revenue of products, ranked 500 in the Guangdong enterprises, 500 in the Guangdong enterprises, and twenty-eighth in the private enterprises in Guangdong Province, marking the company's entry into the ranks of China's large and medium-sized industrial groups.

The current production volume of clothing decreased by 31.31% over the same period last year. The reason is that the clothing sales volume of the company during the reporting period has been reduced by 13.66%. Secondly, the number of franchised stores in the same period last year has been changed to the joint stores and the newly opened joint stores.

The stock in the current period increased by 109.66% over the same period last year. The main reason is that the supply chain management business is relatively stable during the reporting period. However, in order to provide efficient and low-cost value-added services such as procurement, warehousing and distribution to the upstream and downstream customers, the supply volume of supply chain management materials is improved.