Seven Wolves Increased Revenue To 1 Billion 555 Million Yuan In The First Half, Net Profit Fell 8.42%

Recently, the Fujian seven wolf industrial Limited by Share Ltd (hereinafter referred to as the "seven wolves") issued a semi annual report in 2019. The total revenue of the seven wolves in the first half of the year was 1 billion 554 million 917 thousand and 500 yuan, an increase of 6.55% over the same period last year, and the operating profit of 150 million 492 thousand and 500 yuan, down 19.84% from the same period last year. The net profit attributable to the parent company was 123 million 453 thousand and 300 yuan, down 8.42% from the same period last year.

During the reporting period, the company continued to focus on the development strategy of "industry + investment". In terms of garment industry, the company continues to deepen the new retail reform, promote the innovation and improvement of business management, and strive to achieve "take root and grow accurately". In terms of investment, it continues to develop high-quality projects around the field of fashion and big consumption, and creates investment, merger and acquisition capabilities of mining, judgement and bearing. At the same time, it focuses on promoting post investment management of invested projects.

The Limited by Share Ltd researcher in Soochow pointed out in the analysis report that the development of the seven wolf main brand line is healthy and the line has slipped, and the needle spinning business is under continuous pressure. Split 19H1 revenue, of which seven wolf main brand line revenue scale in 700 million +, double digit growth year after year, considering the 19Q1 line for the growth of high number of units, Q2 growth rate has accelerated compared with Q1; online income scale in 300 million +, lower than the single digit declines, Q1, Q2 performance basically the same; needle spinning, the impact of channel adjustment continues, 19H1 income 300 million + + double-digit decline, Q2 declined more than Q1. Financial data: revenue growth Q2 ring faster than Q1, sales costs upward upward pressure on profits.

The gross profit margin of Q2 also increased by 3.2pp to 47.8% compared with the same period last year. The percentage of sales of the main business of the seven wolves, which is higher in gross profit margin, is lower than that of the sales of the main brand business, and the rate of sales of the needle spinning business is lower than that of the gross profit margin. The Q2 sales rate rose by 30.4% to 30.4% compared with the same period. The increase in advertising fees, service consulting fees and shopping malls increased year by year, which was related to the start-up of Karl Lagerfeld brand. The increase in the sales cost led to an increase in the total cost during the whole period from 4.0pp to 41.2%. In addition, the scale of assets impairment was increased compared with the same period last year, and the operating profit of Q2 decreased 54% to 34 million 790 thousand yuan. In terms of profitability, Q2 revenue increased by 12.4% to 610 million yuan, the growth rate of Q1 was significantly higher than that of the seven wolf main brand line.