Pathfinder Net Profit Growth In The First Half Of The Year 230% Outdoor Sports Market Awaken

In July 12th, Pathfinder holding group Limited by Share Ltd (short term: Pathfinder, stock code: 300005) issued semi annual performance report for 2019.

The report shows that as of June 30, 2019, the net profit of the Pathfinder belonging to the listed shareholders was about 79 million 600 thousand yuan to 84 million 500 thousand yuan, up 230%-250% from the same period last year, and a profit of about 24 million 120 thousand and 800 yuan in the same period last year.

At the same time, the report pointed out that faced with the adverse factors such as economic downturn, low consumption and fierce market competition, Pathfinder should continue to focus on resources and consolidate the steady development of the main industries of outdoor products, continuously enhance the competitiveness of products, strengthen the promotion of brand building, quantify the following indicators of sales terminals, and timely plan for the sale of over season inventory commodities. Therefore, the main business income of outdoor products is expected to increase slightly compared with the same period last year.

In the first half of the year, the growth of profits also benefited from the profit return of the Pathfinder. The report shows that the impact of non recurring gains and losses on the company's net profit is estimated to be about 51 million yuan, mainly during the reporting period. The company's disposal of its own property is expected to achieve net income of about 36 million yuan after tax, while the impact of non recurring gains and losses on net profit of the company during the same period last year is 17 million 770 thousand yuan.

In June 6th, the Pathfinder released a report that it planned to sell the whole 1659.99 square meter company in Haidian District, Beijing, with its own commercial real estate, and is expected to increase its net profit for the current period by about 38 million yuan.

During the reporting period, the Pathfinder optimizes the organizational structure, further improves operational management efficiency and per capita benefits, and strictly controls budget management. It is estimated that the net profit attributable to shareholders of listed companies after deducting non recurring gains and losses will be increased by 22 million 250 thousand yuan to 27 million 150 thousand yuan over the same period last year.

Pathfinder, as the first brand of domestic outdoor brands, has been affected by the big environment in recent years, and the outdoor main business has been hit, and its performance has slowed down gradually. Pathfinder lost a net profit of 182 million yuan in 2018, down 114.4% from the same period last year, showing a downward trend for 14 consecutive months.

In fact, not only the Pathfinder, but also other outdoor sports brands have suffered a series of difficulties, and the performance of Sanfo outdoor, animal husbandry and so on has also declined to some extent.

The net profit of Mu Gao Di in 2018 reached 41 million 191 thousand and 900 yuan, down 17.69% compared with the same period last year. Net profit in the first quarter of 2019 was 126 billion 728 million yuan, down 36.03% compared with the same period last year. Sanfo outdoor net profit in 2018 was 5 million 28 thousand and 700 yuan, up 138.96% over the same period last year. Net profit in 2019 first quarter was 1 million 32 thousand and 700 yuan, down 32.64% from the same month.

The performance of the company and the first quarter showed a downward trend, while the net profit of Sanfo outdoors increased in 2018, but there was a drop in the first quarter.

The performance of outdoor brands has been declining, showing the development of outdoor sports industry in China, and the growth is slowing down. According to the 2018 China outdoor products Market Research Report, the total retail sales of domestic outdoor markets in 2018 were 24 billion 980 million, an increase of 2.10% over the same period last year, and the total shipment volume was 14 billion 120 million yuan, an increase of 2.38% over the same period last year. The growth rate continued to slow down, and the lowest growth rate since 2002.

Wang Jingceng, founder and current chairman and President of the Pathfinder, said in an interview: outdoor sports in China is still a very young industry, and there is still a certain gap between domestic outdoor brands and international brands.

Looking at the international market, China's outdoor sports crowd is still in a relatively small stage, and the use of outdoor sports equipment is not in a very routine state during sports, which has led to the domestic outdoor sporting goods market has not reached the outbreak.

On the other hand, the products of domestic outdoor brands are too ordinary, no sense of design, and the influx of a large number of international sports brands, and have their own professional functions. Consumers also ignore the domestic outdoor brands.

Even though more and more young people are enjoying outdoor sports nowadays, the choice of outdoor sports equipment is more inclined to the products and brands that are both functional and fashion oriented. While outdoor sports brands want to find more accurate ways to match young consumers, we must know more about their real needs and explore more channels for development.

At present, China's outdoor sports market is small, but it has great potential. The international brands are constantly laying out the Chinese market and waiting for the Chinese outdoor sports market to be awakened.