Jiangnan Buyi Medium Term Net Profit Growth 12.87% Closed 25 Stores

In February 25th, Jiangnan Buyi announced the 6 months' interim results announcement as at December 31, 2019.

According to the announcement, in the 2020 half of the fiscal year, the operating income of Jiangnan Buyi was 2 billion 135 million yuan, up 5.3% from the same period last year. The net profit was 430 million yuan, an increase of 12.9% over the same period last year, and the gross profit rose 7.3% to 1 billion 335 million yuan and the same store sales increased 0.5%.

Jiangnan Buyi thinks that the growth of revenue is mainly due to the upgrading of group retail network and the continuous rise of online channel revenue.

From the brand perspective:

The income of mature brand JNBY continued to grow, up 5.4% to 1 billion 218 million yuan, or 57.1% of total revenue.

Growth brand portfolio CROQUIS (sketch), JNBY by JNBY and less brand revenue total growth rate reached 3.6%, accounting for 40.6% of total revenue.

Among them, sketch increased 6.4% to 376 million yuan compared with the same period last year; JNBY by JNBY grew fastest, increased 15.7% to 330 million yuan compared with the same period last year; less increased 7.3% to 162 million yuan compared with the same period last year.

The emerging brand portfolio includes POMME DE TERRE (Peng MA) and JNBYHOME, etc., which recorded a total income of 49 million yuan, accounting for 2.3% of total revenue.

From the perspective of channels:

In the first half of the year, the revenue of the cloth store in the south of the Yangtze River was 850 million yuan, an increase of 3.8% over the same period last year. Distribution stores realized revenue of 1 billion 11 million yuan, an increase of 2.6% over the same period, accounting for 47.3% of total revenue.

On line channels, benefiting from the increase of fashion sensitive consumers on e-commerce platforms, new retail sales in online channels account for more than 20% of its total retail sales, while online channel revenue has increased from 10.9% in the 2019 half year to 2020 in the first half of fiscal year, and its growth rate is over 20%, driving the overall revenue growth of the group.

In the first half of 2020, there were more than 3 million 900 thousand member accounts in the south of the Yangtze River. Among them, the number of WeChat accounts was more than 3 million 500 thousand (more than 3 million 100 thousand in June 30, 2019). In the first half of the fiscal year, retail sales contributed about 7 of the total retail sales.

However, due to climate factors and other factors, Jiangnan Buyi also pointed out that some of its brands were not performing well. The total number of independent retail outlets operated by the group decreased from 2018 in June 30, 2019 to 1993 in December 31, 2019.

From the earnings report, the southern part of the clothing market in mainland China is dominated by two or three line cities, accounting for 30.2% and 35.1%, while the proportion of the first tier cities is 12.1%.