Starting Stock Net Profit In The First Half Year One Point Zero Seven Billion Yuan Year-On-Year Decline 2.42%

In August 15th, the initial shares were issued in 2019 semi annual report. First half of the year, starting shares to achieve business revenue Seven point one nine Billion yuan, an increase of 17% over the same period; net profit attributable to shareholders of listed companies. One point zero seven Billion yuan, year-on-year reduction 2.42% Net profits derived from non recurring gains and losses attributable to shareholders of listed companies. Nine thousand and fifty-one point nine three 000 yuan, an increase year on year 10.33% 。

The report points out the risks that the initial shares may face.

As children's clothing consumption market increases year by year, international brands make more mature and localized expansion choices. As the traditional industry of our country, shoemaking and textile and garment industry are increasingly competitive. The children's clothing industry will pay more attention to the comprehensive strength competition such as brand, channel and design ability. For example, balbala, angel, 361 degree KIDS and so on are mostly located in the middle end market, and their market layout is mainly concentrated in the two or three developed cities with relatively developed economy. Some international luxury brands such as GUCCI KIDS and ARMANI JUNIOR also actively develop children's clothing products and enter the first and second tier cities. In the future children's clothing industry, the situation of survival of the fittest will be further manifested.

According to the statistics of Euromonitor Passport database (2018 Edition), the market share of children's shoes ranked first in the domestic market in 2018 ABC KIDS (demand area: 60-500 square meters, 187 shopping centers and 400 planned for this year), and the market share of ABC KIDS children's clothing ranked seventh in the domestic market. In recent years, although the initial shares have continued to improve in terms of market share, revenue scale and profitability, it has not achieved an absolutely leading market position. Therefore, if the company can not further improve its market share in the future, it will have some impact on the market competition.

At the same time, starting shares are committed to focus on shaping the brand image of "ABC KIDS", so that each product can share the advantages of the brand. After years of operation and accumulation, the company's main business income mostly comes from this brand, and there is a risk of relying too much on a single brand.

In addition, there are risks in adjusting the industry standard, the risk of consumption pattern and the change of consumer groups, and the risk of distribution mode.

Public information shows that since its inception, it has been focusing on the design, research, development, production, purchase and sale of children's shoes, children's clothing and children's clothing accessories, and its children's clothing brand ABC KIDS.