Subsidies To Support The Achievements Of Taiping "The New Generation Of Preferred Brands" Strategic Objectives Blocked

Recently, Taiping bird announced that in 2019, the company planned to achieve 8 billion 800 million yuan in operating income, and the net profit attributable to shareholders of listed companies was 700 million yuan.

Despite the increase in profits, Taiping bird failed to achieve its expectations in 2018.

Among them, about 30% of Taiping's net profit comes from government subsidies.

The industry believes that the development of the main business of Taiping bird has encountered a "bottleneck", and outside help can only solve the worries for a time, and can not provide long-term motivation for it.

In the future, Taiping bird wants to achieve the strategic goal of "the first choice of Chinese fashion and new generation" by 2030, and there is still a long way to go.

Performance is not up to expectations

In the latest earnings report, Taiping bird realized its operating income of 7 billion 712 million yuan in 2018, an increase of 7.78% over the same period last year. The net profit attributable to the owner of the parent company was 572 million yuan, an increase of 27.51% over the same period last year.

As of December 31, 2018, the company's total assets amounted to 6 billion 638 million yuan, an increase of 7.24% over the beginning of the year, accounting for 3 billion 539 million yuan attributable to the owners' equity of the parent company, an increase of 6.51% over the beginning of the year.

Although the revenue and net profit of Taiping bird both rose, the performance failed to reach the established goal.

In the 2017 full year earnings report, Taiping bird said that around the company's strategic objectives and business strategy, it was proposed to achieve operating income of 8 billion 400 million yuan in 2018 and achieve a net profit of 650 million yuan.

It can be seen that Taiping bird is nearly 700 million yuan from the original 8 billion 400 million yuan revenue, and the net profit is 78 million yuan.

However, combing the Beijing Commercial Daily reporter found that if there is no government subsidy, Taiping bird has a difference of 1/3 from the established net profit target.

As of the third quarter of 2018, Taiping bird revenue was only 4 billion 888 million yuan, and net profit attributable to only 282 million 300 thousand yuan.

To achieve the established target, the Pacific bird's revenue needs to reach 3 billion 512 million yuan in the remaining quarter, and net profit needs to reach 367 million 700 thousand yuan.

This shows that the net profit of Taiping bird in the last quarter will reach the sum of the first three quarters of 2018.

Thanks to higher government subsidies, the net profit gap of Taiping bird has been greatly reduced.

In the 2018 earnings report, the government subsidy of Taiping bird's non recurring profit and loss project was about 183 million yuan, an increase of 43.48% over the same period last year.

Among them, the government subsidy of other income is about 121 million yuan, and the government subsidy is about 62 million 259 thousand and 200 yuan.

Looking at the performance of Taiping bird in recent years, we can see that the proportion of government subsidies in the net profit of the company is increasing, which has increased from 7.83% in 2014 to 32% in 2018.

In 2017, the average government subsidy for clothing and textile industry was about 54 million yuan, while Taiping bird was subsidized by the government by 128 million yuan, ranking three in 36 listed companies in the same industry.

Limited channel development

According to the insiders, the development of Taiping bird in 2018 is slightly inadequate, especially the channel development has been restricted to a certain extent, which has affected the performance report.

The above industry insiders put forward the "limited channel development" in this earnings report has also been confirmed.

In early 2018, Taiping bird said that it would plan to expand about 600 stores in the same year.

However, by the end of 2018, the total number of Pacific bird shops was 4594, representing an increase of 343 compared with the beginning of the year.

At the same time, when visiting the market, it was also found that Taiping bird in Beijing Sun Palace Kay de Mao shopping center was about to close.

However, Taiping bird pointed out at the recent shareholders' meeting that in 2018, affected by the external environment such as China's economic slowdown, the company adopted a prudent and prudent offline channel strategy, paying more attention to the operational benefits of the new expansion shops, shifting the focus of the store to the shopping center, and accelerating the layout of the outlets, while actively closing down the direct outlets with poor profitability.

In view of the reasons for the overweight shop, Beijing Commercial Daily reporter interviewed Taiping bird, but as of press time, the other side did not give official reply.

Data show that in 2017, the bird's shop accounted for 0% of Taiping's birds, while in 2018, it accounted for 2.69% of the shops.

According to analyst survey, in 2018, the retail sales of Taiping bird department store, shopping center, Street store, OLE and electricity supplier accounted for 30.94%, 30.11%, 15.19%, 2.69% and 21.07% respectively, of which the sales volume of shopping center and OLE increased by 20% and 70% respectively.

In the view of fashion industry investors and CEO Yang Dayun, it is mainly affected by the market environment. If we expand the stores to expand the stores, we will directly affect the profits of enterprises, and then be reflected in the financial statements.

And the overweight ole shop shows that the fashion women's brands like Taiping bird and La Natsu Bell are being increasingly affected by inventory.

"General ole channel is mainly for the brand to clean up inventory, because consumers in OLE shopping are more sensitive to price."

Insiders pointed out.

"Taiping bird inventory turnover days for 184 days, compared with the same period last year, a mere 1 days.

Taiping bird still needs to expand channels to control inventory. "

Those in the industry further explained.

Who is fashion king in 11 years?

Whether it is overweight orlet channel, or receive high government subsidies, all this stems from the strategic goal of Pacific bird hoping to achieve "the first choice of Chinese fashion and new generation" by 2030.

11 years from 2030, whether Taiping bird can occupy the preferred brand of Chinese fashion is still to be tested.

On the knowledge side, a netizen known as Taiping bird's internal staff said that Taiping bird has always claimed that the rival brand is Zara.

At present, there is still a big gap between Taiping bird and Zara.

According to the Zara 2018 fiscal year results report, in the 12 months ended January 31, 2019, group net sales rose 3% to 26 billion 140 million euros compared with the previous year, the profit before interest tax depreciation and amortization increased 3% to 5 billion 460 million euros, and net profit rose 2% to 3 billion 440 million euros compared with the same period last year.

In the domestic market, Taiping bird has to compete with the international brands such as Zara, H&M and Gap to compete with La Natsu Bell and other domestic brands.

This is also compared with the two official Tmall flagship stores: the Pacific bird official flagship store has 8 million 190 thousand time share, the highest sales product has 8484 people to pay, and the sales volume of products with more than 5000 people has a total of two products; La Natsu Bell has 10 million 130 thousand fans in Tmall official flagship store, and the highest sales product has 2328 people.

In April 13th, Taiping bird announced that in 2019, the Taiping bird plan achieved 8 billion 800 million yuan in operating income, and the net profit attributable to shareholders of listed companies was 700 million yuan.

This means that the Pacific bird will be nearly 5 times more than its revenue in 2011, and its net profit will be 7.6 times higher.

Yang Dayun believes that if Taiping bird wants to achieve the strategic goal of "the first choice of China's new generation of fashion," it also needs to solve many problems.

Not only to enhance product content and added value, but also to establish a trend oriented wind vane in the eyes of consumers and to require the Pacific bird to strengthen its soft power competition, because the next stage of product competition depends not only on hard conditions.