'S Per Capita Pay Increased By 60% Over The Past Three Years, Exceeding Its Peers' Performance Slowdown, And It Was Willing To Sell Shares For 300 Million.

603808.SH has acquired six major foreign apparel brands and has been moving towards the high-end line of international competitive high-end fashion brands, but its performance has slowed sharply this year.

In the evening of December 15th, the five strategic investors of the Sequoia fashion technology industry equity investment fund (referred to as "Sequoia") jointly transferred the 28.69% equity interest of Shanghai Bai Qiu Network Technology Co., Ltd. (called "Bai Qiu network"), and expected to make a profit of 324 million yuan.

By the end of September 2019, the net profit of Bai Qiu network was about 40 million 121 thousand and 500 yuan, an increase of 51.18% over the same period last year. However, in the same period, the net profit increased only 2.62%, compared with the previous growth rate of more than 20%, which has declined sharply.

Changjiang Commercial Daily reporter found that in the past three years, the company has significantly increased its sales expenses. In the first three quarters of this year, the company's sales expenses of 583 million yuan continued to grow by 11.55%, more than the growth of revenue and net profit. Among them, the remuneration cost of employees has increased rapidly. In 2018, the per capita salary of employees was 155 thousand yuan, increasing by 62.64% in three years, far exceeding that of peers.

Transferring the 28% stake of Bai Qiu network to profit 300 million

In the evening of December 15th, the company announced that the five strategic investors, such as Sequoia and Hangzhou, had jointly transferred the 28.69% stake in the hundred harvest network, and the total share transfer price was 344 million 300 thousand yuan. In addition, the hundred harvest network will get 150 million yuan increase in Sequoia.

After the completion of the transaction, the founder and shareholders of Bai Qiu network became the actual controller of Bai Qiu network, holding 31.06% of total shares, 27.75% of Sequoia holdings, and 27.75% of song's holdings.

Compared with the total valuation of the 370 million yuan in 2016, the value of the 100 year autumn network nearly 3 times to 1 billion 50 million yuan. The sale of assets is expected to generate 324 million yuan of assets transfer investment income, accounting for 88.43% of the company's latest audit of the net profit of the parent company in the latest three years.

The 100 autumn network was established in September 16, 2010 and incorporated into the group in September 2016. At present, it has set up 100 subsidiaries, 100 autumn shoes, 100 autumn storage and 100 autumn advertising. Bai Qiu network business channel includes online and offline brand operation, covering a wide range of online operation and business platforms including Tmall, glamour, Jingdong, vip.com, Xiao Hong Shu, NetEase koala, brand official website and other offline operation channels such as shopping centers, department stores, self catering and consignments.

By the end of September 2019, the business achieved a total revenue of about 220 million yuan, an increase of 74.73% over the same period last year, and a net profit of about 40 million 121 thousand and 500 yuan, an increase of 51.18% over the same period last year.

In the long run, the network is now in the stage of rapid expansion of business. This increase in capital and expansion and the introduction of strategic investors can give new impetus to the development of Bai Qiu network. It will help to achieve a breakthrough development in the network. In the long run, it will help to further implement its future listing plan, further expand the company's performance space and consolidate its position in the industry.

In addition to the above shares in the sale of subsidiaries, since this year, two great acquisitions have been made. In July 2019 and October, he took up 35% stake in Cci Capital Ltd, Shanglin, Shenzhen, and 43% stake in Adon World SAS, which cost 242 million yuan and 89 million 500 thousand euros (equivalent to 693 million yuan) respectively, while in August 2019, World spent 30 million yuan on joint venture with St. Paul's Intellectual Property Ltd to set up joint ventures, accounting for 50% stake in joint ventures. Up to now, the amount of transactions involved in the transaction has exceeded 12 of the latest audited assets of the company in the past 30% months.

Growth in sales costs dragged down net profit growth slowed down

The main business of the company is the design, production and sale of women's clothing. With the strategic goal of becoming an internationally competitive high fashion brand group, the company has seven fashion brands including ELLASSAY, Laur, l, Ed Hardy, IRO, VIVIENNE TAM, Jean Paul Knott, and Paul, but the latter six brands are all international brands acquired by the company. In 2019, the company confirmed that the company's vision is "create a shared platform with thousands of business partners".

It is precisely because of the high-end line of the song, its gross margin reached 70%, far exceeding the gross profit margin of Semir clothing and American Apparel 44%, nearly three years, the company's gross profit grew rapidly.

At the same time, along with the rapid growth of the sales cost, the sales cost of the 2016-2018 years was 343 million yuan, 593 million yuan and 730 million yuan, respectively, increasing by 26.98%, 72.72% and 23.18% respectively. In the first three quarters of 2019, the sales cost of the company was 583 million yuan, an increase of 11.55% over the same period last year, far exceeding the revenue growth rate.

Under the sharp increase in sales fees, the growth of the song Li Si net profit has slowed down considerably. In the first three quarters of 2019, its operating income and net profit were 1 billion 885 million yuan and 275 million yuan, respectively, increasing by 8.57% and 2.62% respectively. Net profit is far from the growth rate of 20% before.

Among them, the largest proportion of employees' salaries and expenses. In 2015, the per capita salary of the employees was 95 thousand and 300 yuan, and the salaries payable for employees in 2016-2018 years were 289 million yuan, 447 million yuan, and 551 million yuan respectively. The average remuneration of the employees was 110 thousand and 300 yuan, 146 thousand and 600 yuan and 155 thousand yuan respectively, which far exceeded the per capita salary of most of the birds in Taiping, La Natsu Bell and Mei bang.