The Poor Cash Flow Of Business Operation Was Sharply Reduced By 97%

The net cash flow generated by 601566.SH's sudden operating activities has been greatly reduced.

In the first half of this year, the company's operating income was 1 billion 353 million yuan, an increase of 7.33% over the same period, with a net profit of 325 million yuan, an increase of 23.69% over the same period last year, but the net cash flow generated by operating activities was 7 million 343 thousand and 100 yuan, a sharp decrease of 96.69% compared to the same period last year.

In recent years, the investment income of the company has increased significantly. In the past 2016-2018 years, the investment income of the company has been 92 million 738 thousand and 900 yuan, 112 million yuan and 247 million yuan respectively. In the first half of this year, the investment income increased to 224 million yuan, an increase of 304.64%. If the non recurring gains and losses were eliminated, the company deducted the net profit of 195 million yuan, down 20.82%.

The Yangtze River Commercial Daily reporter found that in the past three years, the profit of the nine Mu Wang has been over net profit. In the 2016-2018 year, the dividend amount of the company was 575 million yuan, and the total dividend amount was 1 billion 725 million yuan, while the monetary fund of the company's books in the first half of this year was only 496 million yuan, less than the dividends paid over the years.

Non net profit deducted by 20.82%

Nine Mu Wang is a business casual menswear brand enterprise. The company's main products include men's trousers, jackets and other clothing products, which was launched in May 2011.

The second year net profit of the main male trousers is 668 million yuan. After that, the net profit of the company has never exceeded this peak. On the contrary, the nine herd kings began to close shop tides. From 2013 to 2017, there were more than 500 outlets. Among them, joeone store, its core brand store, was 3087 in 2013, and 2370 at the end of June last year, with a total net decrease of 717. In fact, if we only calculate the number of closed stores, 1560 stores have been closed since 2013.

In recent years, King Mu has begun to explore new sales models, and nine Mu Wang has pursued a larger market, developing product lines for young customers outside the original product style and product line. In the first half of this year, the company's operating income was 1 billion 353 million yuan, an increase of 7.33% over the same period, with a net profit of 325 million yuan, an increase of 23.69% over the same period last year.

But carefully, the company's performance is not the main business growth. In the first half of the year, the disposal of securities held by CAITONG securities increased investment income to 224 million yuan, an increase of 304.64%. And the loss of stock price is 34 million 228 thousand and 400 yuan. This period is reversed. If we eliminate these non recurring gains and losses, the company will deduct a net profit of 195 million yuan or 20.82%.

Earnings data show that as of June 30th this year, the number of direct and terminal terminals was 2772, including 933 direct terminals and 1839 terminals. The proportion of Direct stores and franchisees in total revenue was 39% and 48% respectively, and the revenue increased by 3.32% and 10.43% respectively. In the background of direct outlets and franchised stores, the growth rate of franchised stores is higher than that of Direct stores.

The "retail transformation" centered on consumer satisfaction and terminal store profitability is the strategic direction of development. However, from the rough

The shift of market growth to market driven fine retail operation requires time and experience accumulation and may not be achieved in a short time. The proportion of the company's affiliate business is larger than that of the total business. If the franchisee's profitability can not be improved obviously, the profits of franchisees will continue to shrink, which will affect the achievement of the company's business objectives. In addition, the company has adjusted the store structure in recent years, and the closure of inefficient stores will affect the total number of stores.

In fact, in recent years, although the company's net profit has been growing steadily, there has been a sharp decline in net profit. In 2016 and 2018, the operating income of the company was 2 billion 271 million yuan and 2 billion 733 million yuan, respectively, up 0.65% and 6.55% respectively, but the net profit was 365 million yuan and 361 million yuan respectively. The net profit of the company is declining.

In the first half of this year, inventories amounted to 712 million yuan, and the inventory age structure accounted for 1, 1~2, 2~3 and 3 years, respectively, accounting for 66.16%, 19.31%, 8.67% and 5.86% respectively.

Cash flow from operating activities dropped by 96.69%

The book inventory of the nine Mu Wang remained high. The net cash flow generated by business activities in the first half of this year dropped sharply.

The net cash flow generated by operating activities was 7 million 343 thousand and 100 yuan, a decrease of 215 million yuan from the same period last year, a decrease of 96.69%. In the past three years, the net cash inflow generated by the company's business activities was about 200 million yuan. The company said it was mainly due to the increase in cash in the reporting period.

But in the first half of the year, the cash paid for goods and services was 693 million yuan, compared with 552 million yuan last year, which is only 141 million yuan more than last year.

Nine Mu Wang only raised 2 billion 640 million yuan in the initial fund-raising, and the company has accumulated a dividend of 3 billion 740 million yuan, dividends and equity financing ratio of 141.65%. In the past three years, the company's dividend has always exceeded the net profit. In the 2016-2018 year, the dividend amount of the company was 575 million yuan, while the net profit of the company during the same period was 423 million yuan, 494 million yuan, 534 million yuan respectively. Through the nine herd King International Klc Holdings Ltd holds 53.73% of the company, that is to say, in the past three years, Lin Congying paid 309 million yuan a year, and the total dividends were 927 million yuan.