Modern Avenue Responds To Increasing Profits Without Asking For Interest: ZEIS Group Is In Financial Difficulty

In October 15th, the modern Boulevard fashion group Limited by Share Ltd (hereinafter referred to as "modern Avenue") replied to the Shenzhen Stock Exchange's semi annual report that the revenue rose year-on-year while the net profit fell year-on-year. The specific reason for the decrease was 1-6 gross profit margin in 2019, and the cost increased. Modern Avenue also said that its controlling shareholder, LEVITAS S.P.A., lost 10 million 664 thousand and 500 yuan in the reporting period, mainly due to the financial difficulties of ZEIS group, the Italy footwear brand licensing company, resulting in problems in the production and supply of its footwear products.

In the first half of 2019, the operating income of modern Avenue reached 703 million yuan, an increase of 9.15% over the same period last year. To this end, the modern Avenue replied to the Shenzhen Stock Exchange, the main reason is the incense agent brand business and Wuhan yuenenxin Network Technology Co., Ltd. (hereinafter referred to as "Wuhan Yuet ran") the Internet industry revenue has achieved rapid growth.

At the same time, the net profit attributable to shareholders of listed companies was 31 million 251 thousand and 700 yuan, down 40.69% from the same period last year, mainly due to the decrease in the revenue of its own brand clothing and accessories business, and the lower gross profit margin of its agents. However, the proportion of related businesses has increased. Meanwhile, Wuhan has increased its advertising investment, advertising costs and service costs. In addition, the increase in the cost and R & D expenses during the reporting period also resulted in a year-on-year decline in net profit.

For the first half of the year, LEVITAS S.P.A.2019 lost 10 million 664 thousand and 500 yuan. In the announcement of modern Avenue, LEVITAS S.P.A. is mainly engaged in the design, brand promotion and authorization of the advanced fashion sports brand Dirk Bikkembergs (hereinafter referred to as "DB brand"). During the reporting period, ZEIS group, DB brand's Italy footwear brand licensing company, was in financial distress, resulting in problems in the production and supply of DB brand footwear products, which directly affected the market sales of DB brand footwear products during the reporting period. At the same time, the income of equity income declined sharply due to the disqualification of footwear products.

At the same time, the modern Avenue pointed out that the performance of LEVITAS S.P.A. did not meet the investment expectations of the acquisition of shares, and the following would be based on the operating conditions and the assessment reports issued by the professional institutions, and the related assets should be set up for impairment reduction one by one.