It'S Also Hard To Find A Casual Supply Chain For Casual Wear. The Bitter Days Of 2019'S Performance Slump Began?

Search group Limited by Share Ltd released the 2019 performance bulletin on the evening of February 20th. During the reporting period, the company achieved a total revenue of 12 billion 964 million yuan, down 29.99% from the same period last year, and realized operating profit of 430 million yuan, down 32.50% from the same period last year. The total profit realized was 431 million yuan, down 32.36% compared to the same period last year. The net profit attributable to shareholders of listed companies was 317 million yuan, down 14.12% from the same period last year.


At the end of the reporting period, the total assets of the search company were 11 billion 434 million yuan, an increase of 12.47% over the beginning of the period, and the owner equity of the shareholders belonging to the listed company was 5 billion 573 million yuan, an increase of 5.40% over the beginning of the period. The net assets per share attributable to the shareholders of the listed company were 1.80 yuan, up 5.26% from the beginning of the period.


As for the reasons for the change of the performance during the reporting period, he explained that: first, in 2019, influenced by many macroeconomic uncertainties, the downward pressure on the economy increased. For this reason, the company continued to take the initiative to slow down the development of the supply chain management business, reduce the expansion of customers, optimize the adjustment of some customers, and reduce the supply chain management business from the same period last year. The two is the supply chain management of Shaoxing Xing Lian. Ltd. was changed from a controlling subsidiary to a joint venture. It was no longer included in the company merger in October 2018. The company achieved an operating income of 2 billion 600 million yuan in 2018 1-9. The above factors led to a larger decrease in supply chain business than in 2018.


According to public information, in 2005, the company set up the brand of "fashion front" based on the concept of "fashion to the countryside", and provided casual clothes for young people aged 15 to 29. By 2010, the clothing brand "tidal front" has developed nearly 1000 stores in more than 30 provinces in China, with the proportion of franchisees accounting for more than 90%. 。


In 2013, the impact of the downturn in the clothing industry began to decline. In 2013, it fell by 24.86%. The decline in 2014 accelerated. The total operating income of the whole year decreased by 55.18% compared with the net profit in 2014.


In this regard, he took the initiative to make adjustments to reduce inventory pressure on terminal stores, and then in 2015, he set foot in the supply chain management business. In that year, he realized operating income of 1 billion 983 million yuan, an increase of 51.85% over the same period, with a net profit of 200 million yuan, an increase of 62.12% over the same period.


The first textile network reporter learned that search for special supply chain management business is mainly engaged in several aspects of business: first, centralized procurement, using the company's advantages in procurement, warehousing and distribution to provide customers with raw materials procurement services such as cotton yarn and fabric (cotton yarn accounted for more than 83% in 2016), and make use of scale advantage to earn the difference; two is to provide design and R & D services, and use headquarters. 300+ R & D team and independent R & D center provide raw material information, cost analysis, fashion trend analysis and other services; three, procurement planning: tailor purchase plan for customers, optimize their internal capital turnover.


The specific form of business development is to search for the carrier of Dongguan based search and Supply Chain Management Co., Ltd., a wholly owned subsidiary, and invest in a number of holding project subsidiary companies (51% of the total) in the whole country.


According to the announcement, search for special owned subsidiary Dongguan search special medical supplies Co., Ltd. because of the needs of business development, intends to apply for financing to financial institutions, the company provides security, the guarantee amount is not more than 700 million yuan, the time limit does not exceed 2 years, and its maturity payment is jointly and severally liable. The amount and duration of the specific guarantee shall be based on the relevant security agreement actually signed. This guarantee does not provide counter guarantee.


The announcement shows that the company's wholly owned subsidiary medical supplies company intends to apply for financing to financial institutions no more than 700 million yuan for its business development needs, and the company shall provide guarantee for its financing and bear joint liabilities for its due repayment. The relevant guarantee agreement has not yet been signed, the specific guarantee period and the amount of guarantee exposure shall be based on the guarantee contract signed by both parties.


In search of the announcement before and in February 11th, the company announced that it had invested 200 million yuan in its own capital to set up a wholly owned subsidiary, Dongguan search special medical products Co., Ltd., and on the 13 day, the wholly owned subsidiary has obtained a business license. Its business scope includes research and development, production and sale of medical masks, protective clothing, etc.