Expensive Birds In The First Half Of The Year Revenue Fell Sharply 47.27% Net Profit From Profit To Loss

In August 27th, VIP bird (demand area: 80-150 square meters, 25 shopping centers, 200 planned for this year) Limited by Share Ltd (hereinafter referred to as "noble bird") issued the 2019 semi annual report.

In 1-6 2019, you earn business income. Eight point one zero zero nine Billion yuan, less than the same period last year. 47.27% Net profit of shareholders of listed companies. Five thousand eight hundred and thirty-seven point zero seven 000 yuan, profit from the same period last year Three thousand four hundred and forty-one point eight three Compared to 10000 yuan, a substantial reduction. 269.59% 。

You see, since the beginning of last year, the sale of the direct selling shop of the "noble bird brand" has been absorbed by some of the original distributors in the direct battalion area, and the implementation of the new franchisee support policy has resulted in higher costs, which has led to a decline in the company's current performance.

　　 For the sharp decline in operating income and net profit, the bird also gave a specific explanation:

The sharp decline in operating revenue is mainly related to the change of the consolidated statement of the company during the reporting period compared with the same period last year. The company's visit to the company and BOY are no longer included in the company's consolidated statements, resulting in a decline in the company's operating income. 47.27% And excluding the financial data of the two companies, the company's operating income decreased year by year. 12.77% It is mainly adjusted by the sales mode, and the sales income of the brand is reduced.

The decline in net profit was mainly due to a decrease in main business income, a significant increase in the company's sales expenses and the provision for bad debts.

In the second half of the year, you will continue to focus on industry, focusing on the main business development and consolidating the operation capability in the traditional sports footwear industry. At the same time, we should continue to dispose of non core assets, promote capital operation, and actively introduce financial or strategic investors to do our best.

In the half year, we should deal with the centralized payment of the credit debt of the company, cooperate with the controlling shareholders to solve the risk of equity pledge, ensure that the listed companies overcome difficulties in liquidity, and push the company back to the track of healthy development.

　　 Terminal closed 188 new stores slow construction

During the reporting period, the birds continued to shut down no energy or loss shops, closing 313 shops together, but the new store was slow to build and opened 129 new stores, so the birds closed 188 in the first half of the year.

As of June 30, 2019, the brand marketing network of the noble bird has covered 31 provinces, autonomous regions and municipalities directly under the central government, with a total number of retail terminals reaching 2685, and the total retail terminal area. Twenty-one point seven seven seven two According to city classification, there are 287 cities in the first tier cities, 568 in second tier cities, 1084 in three line cities, and 746 in four line cities.

According to the regional division, there are 286 in East China, 498 in the southwest, 310 in Central China, 306 in Southern China, 552 in the northeast, 480 in North China, and 253 in the northwest.

　　 Cultivating new brands AND1 and PRINCE or facing risks

During the reporting period, the main business of AND1 is the design, R & D, production and sale of sports shoes and clothing. The brands include the "noble bird", "AND1" and "PRINCE", among which the brand new international brand introduced by AND1 and PRINCE is introduced.

At present, AND1 has only opened 8 Direct stores and 1 franchised stores, and the production is mainly outsourcing. PRINCE has only established flagship stores of Tmall and Jingdong, and has not yet launched physical shops to the market. Its business mode is still being optimized and the production is mainly outsourcing.

AND1 and PRINCE have gained a certain reputation in the international market. They are pushing the brands into the youth market and the second tier cities. The exclusive brands are equipped with brand, R & D and operation departments, sharing resources with the brand of "noble bird", but independent operation mode, so as to guarantee the brand new specialization in the domestic sporting goods market.

While the AND1 and PRINCE business is similar to the current company's business, it is a brand new for the company. At the same time, it takes some time for Chinese consumers to recognize and accept the new brand. Therefore, there is still uncertainty about the success of the operation. If the new brand fails to operate according to the established strategy or mismanaged, the operation effect will not be achieved. Period, the company may face the risk of declining performance.