The Cash Flow Of Sha Sha Shares Was Negative For The 6 Quarter.

Since the listing of the company, the performance has been unstable, and the industry is still facing difficulties after refocusing its main business.

On the evening of August 19th, the semi annual report revealed that in the first half of 2019, the company paid 123 million yuan in revenue, an increase of 3.49% over the same period last year, and net profit of 9 million 52 thousand and 700 yuan, down 15.11% from the same period last year. In this regard, the company said that the decrease in net profit during the reporting period was caused by the decrease in investment income from the company's own funds.

But the Yangtze daily business reporter statistics found that since its listing in 2007, the performance of the company has not been stable, and has been repeatedly trapped in the dilemma of increasing profits. Since 2018, the cash flow of the shares has been negative for 6 consecutive quarters, and the proportion of large shareholders' equity pledge is too high. In addition, the company also faces industry problems with low trade barriers, large number of production enterprises and small and medium-sized enterprises to lower market prices.

Repeated increase in income does not increase profits.

It is understood that, in 2007, the company successfully launched a backdoor listing, and went public for second years. Since then, the performance of the company has been repeatedly warming and increasing profits. In 2011, after 3 consecutive years of increasing profits, the company's performance declined sharply.

In 2011 -2015, the shares reached 410 million yuan, 415 million yuan, 438 million yuan, 331 million yuan and 205 million yuan respectively. The revenue in the first 3 years is still increasing, and the revenues in 2014 have been greatly reduced. The net profit for the same period was 34 million 681 thousand and 600 yuan, 10 million 366 thousand and 300 yuan, 8 million 172 thousand and 900 yuan, 1 million 958 thousand and 700 yuan and loss 20 million 683 thousand and 100 yuan, respectively, which decreased 19.95%, 70.11%, 21.16%, 76.03% and 1155.97% respectively compared with the same period last year, and decreased in successive years, and the first loss occurred in 2015.

During this period, the company has launched many self rescue efforts.

In 2013, the electricity supplier of the Sha Sha shares entered the Bureau. But because of the overcapacity of textile and garment industry, the continuous decline of the boom and the high terminal inventory, the two years ago, the layout of the electricity supplier not only changed the dilemma of increasing profits but did not increase the profits of the company.

In 2015, the Sha Sha shares actively explored the micro business mode. In May of the same year, the two planned major asset restructuring, trying to transform their performance difficulties through transformation, ended in nothing.

No doubt, in 2016, the company again focused on the main industry, vigorously disposed of inventory, and finally reversed losses and achieved a substantial increase in performance.

In 2016 -2018, the net profit of the shares reached 13 million 458 thousand and 800 yuan, 22 million 953 thousand and 600 yuan and 29 million 161 thousand and 800 yuan respectively, representing an increase of 165.07%, 70.55% and 27.05% compared with the same period last year. The growth rate of three consecutive year's growth rate dropped by more than 50%.

The largest shareholder pledge nearly 99% shares

The operating cash flow continued to outflow after the growth in the performance of Lusha shares slowed sharply in 2018.

In 2018, the net operating cash flow was negative at 26 million 214 thousand and 900 yuan, compared with 25 million 167 thousand and 700 yuan in the same period last year, a decrease of 204.16% over the same period last year. In the first half of this year, the net operating cash flow was negative 30 million 841 thousand yuan, although the outflow of the same period decreased by 66.53, but it has not yet been negative.

At the same time, the share pledge of shareholders is relatively high. By the end of August 15th this year, the largest shareholder of the shares of the Sha Sha group, Ltd., 41 million of the total Pledged Shares, accounted for 98.81% of the total number of shares owned by the group, close to full warehouse pledge and closed out early warning.

In addition, the industry problems of the company are not optimistic.

The shares of Lingsha said that the underwear industry today is labor-intensive, has low barriers to industry, and has a large number of manufacturing enterprises. Most of the enterprises are small in scale, low in product quality and quality, limited in marketing and product development capabilities, low-level duplicated construction is serious, and the production capacity of low-grade products is excessive. At the same time, in order to maintain the survival and development, many small and medium-sized enterprises in the production of products copied and imitated, in order to occupy the market big price, affecting the overall level of the industry.