Nine Mu Wang (601566): Net Profit Increased By 23.69% In The First Half, And Investment Is The Main Source.

"Sell pants" of the nine year old Wang business growth in the first half of this year, but still rely on investment to make profits.

In August 22nd, nine Mu Wang released the first half of 2019's performance report. In the first half of this year, business income reached 1 billion 353 million yuan, an increase of 7.33% over the same period last year. Net profit attributable to shareholders of listed companies was 325 million yuan, an increase of 23.69% over the same period last year. Among them, the apparel industry revenue reached 1 billion 316 million yuan, an increase of 7.28% over the same period last year.

From the perspective of product composition, men's trousers account for 43.15% of the main business income, which is the core product of the company. The operating income and operating costs of T-shirts increased by 33.69% and 31.43% respectively compared with the same period last year. The operating income and operating costs of other categories increased by 45.61% and 31.82% respectively over the same period last year.

According to the financial data, as of June 30, 2019, the number of direct and terminal terminals was 2772, of which 933 were direct terminals and 1839 were joined by terminals. The mature entity marketing network provides strong support for the construction of online and offline integration.

The new store opened in the future will increase the expansion of shopping mall channels, promote the expansion of large shops and large county-level stores at the prefecture level, and ensure that the overall channel structure of the company is reasonable and profitable. With regard to the changes in the clothing industry and the upgrading of consumption patterns, this year, nine Mu Wang carried out a new round of upgrading of the brand around the five major strategic themes of "commodity transformation, channel upgrading, intensive farming, retail sales, brand remolding and organizational activation". In order to improve the quality of products, the nine farmers set up a perfect R & D center database in the category of focusing pants, edition, technology, accessories and color.

In addition, nine Mu Wang began to explore new sales models, expand various channels, increase the layout of the blank market, optimize and set up shop for integrated stores, Ole stores and shopping centers. In view of the constant demand for new consumption by young and post-80s young customers, the king of Mu seeks bigger markets, and develops product lines for young customers beyond the original product style and product line. Rich product category. In addition, in order to enhance the originality and fashion of the products, the king of nine Mu uses the national elements, the tidal current elements and the cross-border elements in the design, so as to increase the functionality of the products by using new technology and new technology, so as to reduce the homogenization degree of the products and satisfy the new demands of the consumers.

In the earnings report, nine farmers said that the increase in business revenue was mainly due to the growth of FUN brand business and the merger of ZIOZIA brand revenue. The rise in net profit was due to the disposal of Limited by Share Ltd shares held by the financial and securities company during the reporting period, and the investment income increased by 16 thousand and 900 yuan over the same period last year, an increase of 304.64%.

Although the net profit of the nine Mu Wang has been increasing, the business situation of the king of nine herd has actually declined after deducting the non recurring gains and losses such as investment income and government subsidies. According to the data, in the first half of 2019, the net assets of the nine stockholders belonging to the shareholders of listed companies reached 4 billion 212 million yuan, down 4.96% compared with the same period last year.

As a result of the downturn in its performance, the king began to indulge in investment last year. In March 2018, 9 Mu Wang subscribed to the TH education capital phase 1 Fund (limited partnership) share, hoping to further develop the cross-border transformation, and did not achieve much profit in a year. In the first half of this year, nine Mu Wang later subscribed to the products of private assets and the 8 yuan two phase private equity investment fund, with the subscription amount of 100 million yuan.

From the earnings data, we see that the proceeds of investment are all derived from the financial securities acquired in 2014, and other investments are not profitable, or even a downward trend. According to the 2018 earnings data, the losses of financial assets such as nine Mu Wang stock and bonds reached 895 million yuan. That is to say, the king of Kuwait only lost 895 million yuan in stocks.

Due to the rise of new consumers, the traditional clothing brands are gradually showing a road of slow development. The traditional clothing enterprises have not kept pace with the times with the progress of the times, and have not injected new elements in products and designs, and are gradually being abandoned by the new generation of consumers. And many enterprises are seeking transformation in the downturn, cross border investment to get profits, such as YOUNGOR investment real estate, long march into the medical beauty, nine Mu Wang "speculation", and gradually with the clothing main business is farther and farther away.