Is The United States Turning The Profit Into A Profit? Is It Completely Out Of Recession?

On the night of April 23rd, the Metersbonwe clothing Limited by Share Ltd of Shanghai (hereinafter referred to as "American bond dress") announced that the CSRC had accepted the application of the company to issue A shares in non-public offering shares.

In the industry view, increasing stock issuance is for further financing.

It is doubtless that the choice of Finland is a confidence in its own development, but the fact that the state of American Apparel is really optimistic?

In terms of performance, Smith Barney's clothing did turn out well last year.

According to the financial report, the company achieved 7 billion 665 million yuan of revenue last year, an increase of 18.42% over the same period last year. The net profit of the shareholders who belong to the listed company was 40 million 361 thousand and 600 yuan, an increase of 113.24% over the same period last year.

Undeniably, from the net loss of 300 million yuan in 2017 to net profit of 40 million yuan last year, the operation of American state dress has improved after the two generation of Hu Jia Jia took the lead.

But from the point of view of details, there are still many problems in the dress.

According to the China Commercial Daily reporter, the performance of the state's clothing is not all the help of the clothing business. The more important reason is that the company's investment income and the government's high subsidies are still in a state of loss for the main industry.

It is worth noting that in order to increase business revenue, the United States has relaxed the credit policy for franchisees, counters and the three party e-commerce platform, and increased the proportion of credit sales.

This has also led to a rapid increase in accounts receivable, with a final balance of 1 billion 217 million yuan, an increase of 177.22% over the same period last year.

And this growth rate is far ahead of the growth rate of American Apparel.

In fact, this issue has been concerned and inquired by the exchange.

Although the United States apparel said this is to support the pformation and upgrading of franchising channels, enhance brand image and ease the pressure of franchisee funds, but the huge risk of bad debts also caused concern in the industry. It is hard to say whether the price is worth it.

In addition, the United States has long been the existence of clothing inventory problem.

Last year, the inventory of American state clothing was 2 billion 349 million yuan, accounting for 52.95% of the current assets.

During the reporting period, the number of days of inventory turnover was 208.18 days, although it decreased by 25 days from the peak in 2017, but still higher than in 2016 and before.

Everbright Securities analyst Li Jie said that the current U.S. state clothing inventory needs to be digested.

Despite all the problems, the recent efforts of MP are worth affirming.

Combing reporters found that the net profit of Smith Barney clothing began to decline in 2012, and even lost 432 million yuan in 2015.

At the end of 2016, Hu Jia Jia, the two generation leader, took office.

In 2017, the United States has formed five main brands of Metersbonwe, ME&CITY, MOOMOO, ME&CITYKIDS and CHIN, and excavated the subdivision needs of young consumers.

From the performance point of view, the new brand pulling effect is obvious, last year, Metersbonwe and ME&CITY sales revenue increased by 13% and 48% compared to the same period last year; the two children's clothing brands of Moomoo and ME&CITYKIDS increased sales revenue by 24% over the same period last year.

In addition, Smith Barney last year insisted on developing strategies in parallel with shopping centers and traditional business circles, and continued to deepen strategic cooperation with famous shopping centers throughout the country.

Li Jie believes that from the current growth rate of the franchise channel is higher, we can see that the overall adjustment effect of the United States apparel business has emerged.

In the future, the American Apparel will continue to focus on improving the efficiency of single stores, and the main channel of expansion will be alliance.

In addition, in January this year, the United States and the United States released a fixed increase plan, to raise 1 billion 500 million yuan to invest in brand upgrading and product supply chain pformation projects and repay bank loans.