Lining's "Coming Of The Tide Of State": The Return Of Thousands Of Gold Is Over Again.

For more than 20 years, Lining has been in the fashion for 4 years. During the 3 term of his tenure, he sent his brand to fashion week. Lining is no longer the former Lining, Lining is still Lining.

Why is Lining no longer the former Lining? From the above picture, we can see that Lining's dress has completely changed the consumer's cognition of traditional costumes, and summed up in one word is "tide". In the words of Lining's designers team, it is "Chinese culture + sports perspective + trend vision". "The tide of the country is coming", this summer let Lining completely fire up, how much fire?

Profitability is no longer what it used to be.

Zhitong finance and economics APP learned that in the recent interim performance report released by Lining in 2019, the company earned 6 billion 255 million yuan in the period (the same below), an increase of 33% over the same period. Gross profit was 3 billion 108 million yuan, an increase of 35.5% over the same period last year. The net profit of equity holders is 795 million yuan, an increase of 196% over the same period last year.

In terms of products, the three major products of the company increased significantly, of which footwear sales amounted to 2 billion 922 million yuan, an increase of 3 billion 336 million yuan compared with the same period last year, and sales of clothing reached 3 billion 60 million yuan, an increase of 33.04% over the same period last year, and sales of equipment and accessories reached 273 million yuan.

It is worth noting that Lining's mid-term performance has not only increased volume but also improved quality. The most obvious feature is that the company's profitability has improved significantly.

Gross profit margin increased by 1 percentage points to 49.7% from 48.7% in the same period last year. If compared with the gross profit margin of 44.88% in the middle of 2015, it increased significantly.

The net interest rate of equity holders reached 12.7%, an increase of 7 percentage points over the same period last year, a qualitative change compared with the -0.01% in 2015.

In terms of cash flow, the amount of cash flow generated by Lining's medium-term business activities reached 1 billion 366 million yuan, up 105% from 667 million yuan in the same period last year. The guarantee of cash / net profit of the company's medium term business activities is as high as 1.72 times.

Suppliers and customers lie down in "skirts"?

In Zhitong finance and economics APP, Lining's medium-term financial report is bright, not only in improving the company's profitability, but also in the rapid optimization of the company's operating efficiency.

One of the most obvious changes is that the distribution expenses that have long plagued the company's operating profits have been effectively controlled. During the period, the distribution expenses of the company amounted to 2 billion 23 million yuan, an increase of 16.6% over the previous year, much lower than that of the revenue growth. The proportion of distribution expenses accounted for 32.35% of the revenue, down 4.8 percentage points from the same period last year. Although the company's implementation of the "single brand" strategy resulted in a decrease of 36 million 394 thousand yuan in goodwill and a significant increase in administrative expenses, the overall cost of the Lining intermediate period decreased by 3.56 percentage points to 39.55%.

In addition, Lining's average median stock turnover days were 74 days, down 11 days compared with the same period last year. The average receivable trade turnover days were 24, a sharp decrease of 18 days compared with the same period last year, and the average turnover days for trade payments were 66 days, down 16 days compared with the same period.

It is worth noting that the turnover efficiency of the company's trade receivables is much higher than that of the average trade payables. According to the financial report, the amount of trade receivable received by Lining in the medium term reached 1 billion 212 million yuan, an increase of 6.97% over the same period last year, and other receivables and accounts payable reached 1 billion 793 million yuan, an increase of 29.64% over the same period last year.

The volume of trade receivables was reduced from 929 million yuan to 755 million yuan, a decrease of 18.73%. Lining's ability to bargain on the upstream and downstream markets has been enhanced by dealing with and increasing receivables.

Single brand strategy: a wheel runs fast.

Throughout Lining's development process, the company can deliver today's transcript, from quantitative change to qualitative change.

In 2013, the company's "Lining" brand was repositioned as the sports product with the highest price ratio leading the middle end market, the middle class as the target customers, and the main products and functions of sporting goods. It is clear that the market positioning of Lining's main brand is "strong middle end, low end solid, advanced development", focusing on basketball, running, badminton, training and sports fashion five major sports categories.

Judging from the performance of Lining in recent years, Lining's original development strategy has not achieved any special success. Until the company shouted the slogan of "single brand, multi category and all channels", its performance was transformed.

Under the focus strategy, Lining's main brand accounted for over 95% of sales in 2018, and Lining Young accounted for more than 2%. Other brands, Kaisheng, Lotto and Danskin, account for less than 1% of their revenue in 2018. Red double happiness and AIGLE are operated by joint ventures and joint ventures. They are measured by the equity method in the reports and continue to contribute to the company.

As of June 30, 2019, Lining's income in accordance with the equity method accounted for 310 million yuan, of which, a piece of land held by red double happiness was bought and sold by the government. The company shared the related one-time income of the joint venture company by 270 million yuan.

As for the channel, as of June 30, 2019, the total number of Lining outlets in China (excluding Lining YOUNG) totaled 6422, representing a net increase of 112 over the previous quarter and a net increase of 78 so far this year. In the net sales of 78 outlets, the retail business decreased by 127, and the wholesale business increased by 205. As of June 30, 2019, the number of Lining YOUNG outlets in China totaled 872, representing a net increase of 57 over the previous quarter, and a net increase of 79 so far this year.

During the period, Lining focused on strengthening the development of Franchised Distributors and e-commerce channels. The proportion of sales from franchisees to franchisees was 48.6%, up 4.2 percentage points from the same period last year, and the proportion of e-commerce channel sales increased by 21.7% compared to 0.9% over the same period last year.

Benefiting from channel optimization, the overall retail sales (including online and offline) achieved low 20%-30% growth during the period. Channel library sales ratio continued to improve, the same store sales in the first half of 2019 recorded 10%-20% growth. Under the new line, the retail sales volume increased by 10%-20%.

All in all, nowadays, only Lining himself can beat Lining.