Starting Shares In 2018 Revenue Of 1 Billion 398 Million, Children'S Clothing As The Main Source Of Income.

Start Limited by Share Ltd (hereinafter referred to as "start share") disclosed the 2018 annual report in the evening of April 16th. During the reporting period, the company achieved operating income of 1 billion 398 million yuan, an increase of 4.43% over the same period, and realized a net profit of 181 million attributable to the parent company's owner, a decrease of 7.1% compared with the same period last year, and a profit of 0.38 yuan per share.

During the reporting period, the gross profit margin of the company was 35.6%, an increase of 0.6 percentage points over the previous year, and the net interest rate was 12.9%, down 1.6 percentage points from the previous year.

During the reporting period, the company's sales expenses increased by 15.9% over the same period last year, affecting the growth of profits.

In addition, non recurring gains and losses have a greater impact on company performance, totaling 38 million 57 thousand yuan, of which the government subsidy is 37 million 982 thousand yuan.

After deducting the non recurring gains and losses, the net profit of the returned parent was 140 million yuan, down 11.8% compared to the same period.

Net profit growth is less than that of revenue growth, which is mainly due to a 1.9 percentage point increase in the period cost.

From the perspective of business structure, "children's shoes" and "children's clothing" are the main sources of business income.

Specifically, "children's shoes" business income is 770 million, revenue accounted for 55.8%.

"Children's wear" business income is 470 million, revenue accounted for 34%.

"Shoes OEM" business income is 130 million, revenue accounted for 9.1%.

From the perspective of profit contribution, gross profit of children's shoes is the most important.

During the reporting period, the combined gross profit margin of the initial shares was 35.6%.

Among them, the gross profit contribution of "children's shoes", "children's clothing" and "shoes OEM" accounted for 59.8%, 36.2% and 3.1% respectively.

The gross profit rates of "children's shoes", "children's clothing" and "shoes OEM" are 38.5%, 38.1% and 12.3% respectively.

As of December 31, 2018, the number of terminal stores was 2374, covering 31 provinces and autonomous regions.

Direct operation mode has been established since December 2015, and as of December 31, 2018, there are 23 direct outlets.

Online sales, the company set up an electronic business center, responsible for cooperation with Tmall, Jingdong mall and other e-business platform, to take differentiated marketing strategy with offline stores, so that online and offline development and mutual promotion.

The children's shoes business is in the leading position in the industry. It is expected that the children's shoes products will continue to expand, and sales will continue to increase. The sales capacity of the company will continue to increase, and the bargaining power of the company will increase in recent years. The price will increase slightly. In addition, the growth of children's wear products will slow down, and the competitive advantage of children's children's clothing products will not be very obvious. Judging from this, the growth rate of future income will not be greatly improved. However, the improvement of bargaining power will reduce the purchasing cost of the joint-stock shares, while the starting share children's clothing accessories are influenced by the product structure. Industry analysts believe that the current initial shares

Public information shows that the starting stock has a well-known Chinese children's clothing brand "ABCKIDS", the company provides 3-13 years old children with a wide range of styles and styles, including children's shoes, children's clothing and children's clothing accessories. Since its establishment, the company's children's clothing products have gradually covered all the major provinces and cities in the country, and are active in two or three line cities with new and fashionable appearance, multi category products and high performance price ratio.

According to the statistics of EuromonitorPassport database, the top 10 brand market share of Chinese children's wear market in 2018 was 10.90%.

In recent years, ABCKIDS has performed well in the children's wear market, with a market share of 0.5%, ranking seventh in the children's wear market.

As a well-known brand in the domestic children's products industry, ABCKIDS mainly focuses on the mid end market.

In 2018, the main business income was 1 billion 386 million yuan, an increase of 3.56% over the same period, of which the sales volume of children's shoes reached 773 million yuan, an increase of 0.11% over the same period last year, and the net profit attributable to shareholders of listed companies was 180 million yuan, down 7.05% from the same period last year.

During the reporting period, Huang Shengyi, a famous film star, hired ABCKIDS as a brand spokesperson for the initial shares. He injected the star energy into the brand new strength, and officially marked the brand development of ABCKIDS.

The company continues the "double-sided glue" communication strategy, locking the communication area into "family group, female audience", and taking into account the target group of children to achieve two-way communication between parents and children.

In 2018, ABCKIDS was officially selected as the CCTV children's channel "China parent-child plan", which helped build a super brand through the national platform.

ABCKIDS, through the naming of children's music growth reality show, "new voice has fan", organised "pony planet parenthood marathon" and other activities to provide parents with a platform to accompany their children's growth, and to provide children with high-quality talent display platform.

In addition, ABCKIDS combines super IP - Transformers, with the help of deeply rooted people's cartoon characters, together to create Transformers theme children's shoes and wear series, promote product sales and enhance consumer stickiness.

Starting in 2019, the initial shares will vigorously develop the blank market. By increasing investment efforts, developing city agents and integrating regional resources, we will actively develop new strength of dealers and make great strides forward to improve market share.

On the other hand, the company will optimize the systematic management of the existing channels, upgrade the core quality channels, and continue to create and replicate benchmarking stores that meet the brand positioning and style of the company, thereby enhancing brand image and marketing capabilities and cultivating an empowering marketing team.

Starting shares will also continue to strengthen cooperation with celebrities, children's channels, variety shows, etc., and use Star benefits to increase brand exposure.

By developing brand promotion strategies, increasing brand innovation and experience, shaping brand culture and enhancing brand awareness.

In 2019, the company will upgrade the terminal image shop and achieve the maximization of ABCKIDS brand value through the full landing of the new VI image, the dissemination of new media and the implantation of new IP.