Jiangnan Cloth Line Business Growth Is Prominent, The First Half Of 2019 Revenue Rose 17%

Recently, the domestic apparel group Jiangnan Buyi released the fiscal year 2019 fiscal data. In the fiscal year ended June 30th, sales rose 17.3% to 3 billion 358 million yuan, net profit rose 18.1% to 484 million yuan, and the number of member accounts increased from 3 million 600 thousand to 3 million 600 thousand in the previous year. The retail sales contributed by the members accounted for 70% of the total sales. The number of member accounts with annual purchases exceeding RMB 5000 yuan increased from 162 thousand to 203 thousand, and the retail sales volume reached RMB 162 thousand yuan. Up to the end of the reporting period, there were 10 brands in the group of Jiangnan Buyi group, and there were 2018 sales outlets in the world.

The report shows that in the first half of 2019, the company launched the new designer brand collection store "LASU MIN SOLA" and High-Street style "A PERSONAL NOTE73". Meanwhile, the total number of independent entity retailers increased from 1831 in June 30, 2018 to 2018 in June 30, 2019, and it was distributed in 161 overseas outlets. The company pays an annual dividend of 0.43 yuan per share, and the total annual dividend is 0.71 yuan, which is about 75% of the net profit in the full fiscal year.

According to the analysis of Sino Thai Securities researcher, Jiangnan cloth line business growth is prominent: from the product line perspective, the company's mature brand line (JNBY) maintained 15.9% year-on-year growth rate, the growth brand line (CROQUIS, JNBY by JNBY, less) grew by 17.6% year-on-year, and the growth rate of the original brand line (Peng Ma, SAMO, REVERB, JNBYHOME, etc.) was 57.8% year-on-year. Among them, the mature brand line is slightly slower than the overall revenue growth. The growth brand and the overall revenue growth brand line have contributed to higher product growth for the whole product line. From the point of view of sales channels, the revenue growth rate of self operated stores, distribution outlets and online channels was 6.3%, 22.8% and 47.9% respectively, compared with the growth of stores in various channels. The growth of self run income was basically flat, and the marginal growth of sales revenue of distribution outlets was improved. On the whole, the growth of offline channels is relatively stable. Compared with the first half of this year, the growth rate has declined slightly, mainly from the influence of high base contraction. The driving effect of online channels by small programs "more than boxes" is still obvious, and the relative growth rate is prominent. At present, the proportion of online channel receipts has increased from 9.3% in 2018 to 11.7% in 2019.

In addition, the structure of the next store in Jiangnan cloth line increased by 12.6% compared with the same period last year, and gross profit margin decreased slightly from 63.7% in fiscal year 2018 to 61.2%, referring to the number structure of the company's stores, adding 38 to 574 stores, and adding 147 to 1397 stores. Meanwhile, the proportion of self employed stores decreased by 4.6% to 44.3%, and the proportion of dealers' income increased to 2%. At the same time, the company's channel discount rate did not change. Overall, the store structure did have some impact on gross margin. However, the net profit rate of the fiscal year was not significantly changed compared with the fiscal year, so it had little effect on net profit.