The Epidemic Is Too Hard For Reemployment. Leather Leader Wanlima Lost At Least 30 Million In The First Quarter.

Guangdong Wanlima industrial Limited by Share Ltd (hereinafter referred to as Wanlima) announced today (April 9th) that the net profit of shareholders belonging to listed companies in the first quarter was 30 million yuan to 35 million yuan, a decrease of 591.44% to 70. 6. 7% compared with the loss of 4 million 338 thousand and 800 yuan in the same period last year.

Wanlima said that the main reason for the change in the performance during the reporting period was mainly due to the disruption of passenger traffic affected by the epidemic. The production department employees resumed at the end of February, resulting in low production capacity, and the shipments of group buying channels dropped significantly. The direct channel and the franchisor channel were restricted for a long period of business, and the logistics channel of the e-commerce channel was hindered and the staff resumed late. The main business income declined sharply compared with the same period last year. Due to the lag of logistics and shortage of raw materials supply, the number of finished warehousing dropped significantly, and the gross profit margin declined compared with the same period last year.

Yu Xuhui, an analyst with Changjiang Securities, said that for the clothing retail business, the short-term impact of the epidemic is mainly due to the decrease of the shop opening rate and the decrease of the number of people. The logistics distribution of some cities in the online channel is limited. According to the performance of the monthly industry, the retail sales accounted for about 25.3% of the total retail sales in the past 4 years, of which retail sales accounted for about 7.5% in March, accounting for only the whole year. Higher than the summer sales, the impact of the epidemic on brand retail will affect the 2019 winter clothing inventory clearance and spring sales in 2020, under the background of online retail restrictions, brand enterprises should increase online channel sales efforts to alleviate business pressure as far as possible; for manufacturing end, it will affect the effective production time and decision making behavior of the enterprise, and is expected to be vertically integrated. The production stability of enterprises is strong, and they can also be adequately stocked on the basis of cash flow advantages.

According to data from the National Bureau of statistics, the total retail sales of consumer goods in China decreased by 20.5% in the 1-2 months of this year, of which clothing, shoes, hats, needles and textile products dropped by 30.9% compared with the same period last year, while clothing sales decreased by 33.2% compared with the same period last year.

Yu Xuhui stressed that the epidemic is more like a stress test on the digital retail system of garment enterprises. Enterprises with a perfect membership system, flexible inventory management and timely commodity organization ability can achieve greater business freedom. Therefore, the profit pressure of brand enterprises will be enlarged in the first quarter, and brand enterprises will increase the downstream business to a certain extent. There is a certain pressure on the customer's account and cash flow. For the head office, in the context of a down sale, since the second half of 2019, since the implementation of the policy of stocking and careful stocking in the second half of the year, the cash pressure relief is expected to be eased. At the same time, taking into account the relatively abundant cash in the tap and credit support for the upstream and downstream sectors during the crisis stage, the pressure on stocking and the end of the shop can ease and restore the pace of operation after the outbreak is over. The impact of cash flow is limited.

Public information shows that the Wanlima brand was founded in 1993. Its main business is leather products R & D, manufacturing, brand operation and marketing. The company has formed group buying channel, direct channel, e-commerce channel, wholesale agent channel and ODM five kinds of channels.

According to the financial report, in 2019, Wanlima realized operating income of 676 million 204 thousand and 500 yuan, a decrease of 2.48% compared with the same period last year, and the net profit attributable to shareholders of listed companies was 24 million 720 thousand and 100 yuan, down 34.60% from the same period last year.