Kai Run Shares Made 226 Million Net Profit In 2019, The 90 Sub Suitcase For Millet OEM.

The Anhui Kai Run Limited by Share Ltd, which is committed to the R & D, design, manufacture and sale of bags, announced its performance announcement in the evening of January 12th. The company expects net profit of 226 million to 243 million yuan attributable to shareholders of Listed Companies in 2019, an increase of 30% to 40% over the same period last year.


In the reporting period, the net profit of the parent company increased during the reporting period compared with the same period last year. The main reason is that the company constantly consolidates its core competitive edge, optimizes the customer structure, promotes the implementation of various strategies, and continuously improves business scale and profitability.


It is understood that the main business of Kai Run shares is the development, design, production and sale of travel bags such as business bags, outdoor leisure bags, suitcases, footwear and related accessories. In 2018, the company introduced men's knitted shorts, cotton socks, pantyhose, sports socks, sun helmet, sunshade hat, ladies' jeans, integrated board shoes, steam masks, all kinds of cleaning agents, women's underwear, thermal insulation air jacket, heat and temperature control down clothing, and other products that meet various travel life scenarios. In the same year, the products of Kai Run shares realized business income of 1 billion 980 million yuan, an increase of 85.8 over the same period, and the sales income of other products was 70 million yuan.


In addition, the 90 point aluminum frame travel box, Manhattan travel box, light city travel box, fingerprint unlocking suitcase and so on are also popular among young consumers. For example, the Manhattan travel box mainly locates the travel needs of the new elite business travelers. The TSA customs lock is simple and convenient to operate, and the 360 degree universal mute two-way wheel has better damping effect. At the same time, the Manhattan suitcase has eleven colors (8 monochrome and 3 colors), and the design is in line with the mainstream aesthetic of contemporary young people.


As of September 12, 2019, 90 brands in the Tmall flagship store sold 21 suitcase styles (according to the Tmall page display of goods link calculation), product categories continue to enrich and iterative, to meet the needs of more travel scenarios.


Through the continuous iteration and updating of products, the price band of the opening shares will be widened gradually to meet more demands, and it will also help to enhance the profitability of B2C business. Lv Ming, an analyst with Tianfeng securities, said that by analyzing the price of the products sold in the 90 Tmall flagship store, it was found that the price of the 20 inch travel suitcase in the 20 inch box was between 299 yuan and 2999 yuan, of which 1000 yuan (original price) was the most followed by 9, 1000-2000 yuan (original price) was 1, and 2000 yuan (original price) had 5 products. Through the time of listing, it can be found that before 2017, the price of the company showed a polarization state, that is, the 299 yuan explosive products with high cost performance ratio and the high price 2399 Yuan metal boxes were the main products of the company. After 2017, the company's product prices were gradually rich and rich, with a middle priced 449/499/899/999/1599 yuan suitcase, corresponding to the promotional price of 349/469/699/799/999 yuan products, to meet the needs of more consumers.


In Lv Ming's view, the abundance of products, categories and price bands of open run shares is conducive to the continuous improvement of its B2C business profitability. It is estimated that the gross profit margin of B2C 25%-30% is currently around 25%-30%. With the continuous enrichment of category and price bands, the gross profit margin level of the company is expected to continue to improve. In addition, because of the brand building period, the market development and promotion costs are higher. With the promotion of the brand image and popularity, the sales cost will be stable, which will contribute to the net interest rate increase of the B2C share business of the company. This will enhance the profitability of the B2C share business.


At the same time, Kai Run shares completed the acquisition of PT.FormosaBagIndonesia and PT.FormosaDevelopment100% equity projects in 2018. The company entered the supplier system of the international first-line customers Nike, and laid a solid foundation for the company to win other high-quality customer resources. In addition, the company has established a stable and deep cooperation relationship with the famous suppliers such as Alcoa, COSCO, DuPont, Dongli, Japan, YKK, Segway and so on. In the same year, the domestic operating income of Kai Run shares reached 1 billion 480 million yuan, an increase of 117.1% over the same period last year, and foreign business income of 570 million yuan, an increase of 17.9% over the same period last year.


The stable development of B2B lies in the expansion of Indonesia's capacity: the acquisition of Indonesian factories and the entry into the NIKE supply chain system has a strong driving effect. In addition, in the context of trade war, it is expected to seize market share. In the future, NIKE is expected to remain above average. In 2020, Indonesia's capacity increments came from the expansion of the third factories in the second half of 2019 and the new construction in 2020; two, B2C maintained a relatively high growth rate; the space was in the non meter channel layout plus the steady increase in profit margins; at present, there were obvious divisions in the products: 90 points in the middle end (300-700 yuan), the highest price ratio in the use of rice cards, the metal box (2000-3000 yuan) and the high-end positioning with black technology attributes; three was the overseas full channel layout, and entered Japan, the United States and India in the first half of 2019. Huaxi Securities researcher Tang Shuangshuang also judged that the future growth of Kai Run shares lies in several aspects: first,