Sanfo Outdoor Revenue Net Profit Double Drop Outdoor Sports Facing Challenges

Sanfo outdoor (002780) (002780.SZ) released its semi annual report in 2019, operating income of about 185 million yuan, down 10.20% compared with the same period last year; net profit attributable to shareholders of listed companies was about 1 million 639 thousand and 400 yuan, down 36.17% compared with the same period last year; net profit attributable to shareholders of listed companies after deducting non recurring gains and losses was about 1 million 405 thousand and 900 yuan, down 13.39% compared with the same period last year; basic earnings per share were 0.0113 yuan.

1, outdoor sporting goods

(1) offline retail:

During the reporting period, in order to better meet the needs of consumers, expand product category and competitiveness, and increase gross margin of sales, the company actively develops international brands, has completed PAC, MASTERS, MYSTE RYRANCH and other multi brand direct mining businesses; at the same time, it introduces fashionable, scientific and lightweight domestic and foreign high quality outdoor sports brands, including ON, HOSA, Northland, children, FALKE, LASPORTIVA, KLARUS, POWERMAX, black dragon, care and music, outdoor agents, and so on, so as to meet different consumer needs in the field of segmentation.

During the reporting period, the company carried out a comprehensive upgrading and upgrading of IKEA store, Chaoyang Park and Ma Dian West store in Xihongmen, Beijing, which brought more comfortable shopping experience to consumers. Besides, upgrading and upgrading of other shops in the country are also in progress.

(2) online channels:

During the reporting period, Sanfo electricity providers actively set up deep cooperation with Tmall, Jingdong and other electronic business platforms, actively participated in the business platform activities, targeting outdoor sports enthusiasts, giving play to the advantages of Sanfo's outdoor multi brand and all categories, choosing and focusing on the core key brands, in-depth analysis of user behavior data, fully tap the potential of old customers, and paying attention to new users' access. In the first half of 2019, business revenue increased 16.04% over the same period.

(3) private brand:

The company's own brand SANFOPLUS spring and summer new product sales are gratifying, group buying customized business performance excellence. During the reporting period, SANFOPLUS has obtained six designs patents, and is actively preparing for the new autumn and winter products, upgrading and upgrading the brand image of the area, and establishing the foundation for autumn and winter sales.

2. Event group building

(1) Sanfo events:

During the reporting period, Sanfo launched a lot of efforts to promote cross-country running culture, build and improve community services, and achieved breakthroughs in building its own IP tournaments. The members of the community have grown from adults to adolescents and parent-child groups. They are a large group of cross-country running communities with long operation time and wide coverage, and have accumulated a lot in the promotion of cross-country running culture. In 2019, the number of players in the 168km international super cross country competition in Chongli exceeded 4500, and the number of indirect participants was over 30 thousand. In just three years, the event has become the largest number of long distance participants in the country, with rich activities and high-profile brand events. As the core IP event, Beijing Pinggu Jinhai Lake International triathlon competition has been successfully held for 20 years. It is one of the oldest commercial competitions in China, and has been certified by China Railway Association B level for 4 consecutive years. It is expected to be promoted to A-level in 2020. As the core community, the Xiangshan monthly competition has been launched in 30 phases, with more than 500 people in each activity. The Sanfo event has been widely recognized through professional running ability, scientific competition management and meticulous competition service. It provides professional and technical support for more than 20 events in China and provides solutions for many governments. For six consecutive years, the China Poverty Alleviation foundation was appraised as a "good support Award" for charity hikers.

(2) Sanfo Regiment:

During the reporting period, the Sanfo group has been developing and developing high-end outdoor group building products with unique industry characteristics, such as the all time team, the enterprise 24 hour uninterrupted challenge competition, the heroic journey -- the extreme outdoor hone training course of the enterprise snow mountain, rain forest, Gobi, desert and volcano series. To meet the seventy birthday of the motherland, the new special immersion red theme group construction project is launched. In collaboration with business schools, the Tengger hike challenge competition was held. The Chinese Mountaineering Association organized the first national junior high school intermediate level training examination for outdoor outdoor instructors, attracting many high-quality talents who loved the outdoor industry. In view of the youth business section, we should actively promote the Sanfo growth camp activities, and further develop the cooperative enterprises, so as to customize the growth camp activities at home and abroad for the children of the enterprise employees, solve the new needs of the employees and revitalize the old stock customers. Successfully organized a large business platform 4000 people light sports meet, 800 million meters run, 500 people run and other new forms of health group building activities.

During the reporting period, the Sanfo regiment organized a total of more than 150 kinds of League building activities, involving more than 13 thousand people, and gradually formed a sustainable high frequency three-dimensional consumption mode.

3. Parent-child outdoor Paradise:

During the reporting period, the company continued to exert efforts in parent-child outdoor business. At the end of 2018, the company invested in holding the Shanghai Music Culture Development Co., Ltd., and the management team actively joined up with industrial resources such as government, real estate, sports and cultural tourism. At present, the first phase of the project in Chengdu and Wuhan has been running smoothly. The passenger flow in the first half of 2019 has reached nearly 300 thousand passengers, an increase of about 45% over the same period last year. It has formed a good reputation and influence around Chengdu and Wuhan. At the same time, it has increased investment in product innovation, and has launched star projects such as running maze, bird forest, forest hunter, and so on, which has further improved the mobility and interest of the project. The two water park project with water element as the theme of Wuhan is officially opened in July. It provides a more cool, more interesting and more playful experience for residents in Wuhan and surrounding cities. The Zhengzhou project is under close construction. Projects such as Tianjin, Chongqing, Nanjing and Ningbo are being pushed forward in a substantive way.