Nine Mu Wang'S "Cut Love" Project Has Invested 9 Million 560 Thousand In 10 Years.

Local business casual men's clothing brand enterprise -- nine herd king Limited by Share Ltd (hereinafter referred to as "nine herding king") issued a notice on May 13th, said that at today's annual shareholders' meeting held in 2019, the company considered and passed the motion on terminating the design and research center construction project and permanently refunding the remaining fund.

The reporter learned from the announcement that the construction project of the design and R & D center terminated by nine Mu Wang mainly includes: 1. Construction of product planning database system; 2, product design and construction of surface accessories development system; 3, integration of product technology; 4, organization structure of talent introduction, training and reserve. The project will adopt 2D version to make CAD system, 3D design software system, customized system, 3D fitting system, sample cutting system, and business data processing and storage, retrieval and other information management systems. The total investment of the project is estimated at 51 million 475 thousand and 600 yuan, all of which are investment in construction. The specific situations are as follows:

As of March 31, 2020, the total amount of investment was 9 million 560 thousand and 800 yuan, which was mainly used for the purchase of equipment and instruments, accounting for 18.57% of the estimated total investment of the project. However, the overall progress of the project was slow. The reasons lie in the following aspects:

First of all, in recent years, the focus of R & D design development of clothing industry has shifted from system and equipment resources to fabric research and development, and the introduction and cultivation of excellent R & D talents. The overall demand of the company's design and research has changed. It is urgent to introduce professional merchandising talents, excellent fabric research and development talents and excellent clothing research and development talents, and the original blueprint can not meet the needs of future business development. Need.

Secondly, the project was set up in 2009. In the past ten years, the industry technology, especially the product development software system and equipment upgrading, 3D design software system, customized system and 3D try on system has not been widely applied and verified after years of development. The technology adopted by this project is not in line with the current industry development requirements, and is relative to the company's current development. The software system used does not have obvious advantages.

According to the progress of the project, the actual business needs and the development trend of the industry, in order to further enhance the efficiency of the raising funds and protect the interests of shareholders, the company intends to terminate the design and research center construction project, and use the remaining funds of the project 41 million 974 thousand and 700 yuan for all permanent supplementary working capital funds, and is used for the daily production and operation activities of the company.

According to public information, the king of nine shepherd was founded in 1998, and started with the production of trousers. With its unique production technology and abundant samples of human body data, its design is appropriate and its products fit well. It has become the leader of China's men's trousers Market and has been ranked first in the domestic men's trousers Market since 2000.

"Professional quality" has become the brand symbol of King Mu. From the point of view of the production process, the nine men of the king have refined the male trousers production process to about 108 processes. The jacket production process has been refined to about 90 processes. The domestic and international advanced trousers are suspended by the assembly line, which pays attention to details and quality management is efficient. From the perspective of plate design, the research and development scissors are developed based on the continuous collection and research of the large volume data of the consumer body curves. A variety of lines are cut out, and mass production is made under the condition of qualified sample to meet the needs of different consumers.

At present, the main brands of the nine herding kings are divided into three major platforms: the Seiko quality platform based on nine herd Wang and VIGANO brand, the fashion quality platform dominated by NASTYPALM and ZIOZIA brand, and the personalized trend platform based on FUN brand. At the same time, the company carries out investment, brand building and development in the direction of these three brand platforms, and invests in new business, new technology and new mode for fashion industry.

According to the insiders, with the "80's" and "after 90" becoming the main force of consumption, they are more eager to express themselves than others. They are more eager to express themselves. Therefore, instead of "seeking common ground" and "seeking difference" as a new market direction, consumer groups tend to be individualized, forcing clothing companies to adapt to the new law of the jungle, that is, products are younger, focus on subdivision, and create niche brands.

Leng Ming, an analyst at Tianfeng securities, has said that the overall style of the operation of the brand is built up upstream and downstream to ensure supply chain resources and quality channels, expand the brand and style is steady and steady. Therefore, the Deputy brand represented by FUN has not had large-scale opening and expansion in the past few years, and is in the period of energy accumulation. The development of various sub brands is expected. After several years of development, the Fun brand profit scale is expected to expand in 2019. ZIOZIA is expected to break even. The NASTYPALM brand development time is still short or slight, and it is expected to be profitable in 2020. In the short term, most new brands are expected to exceed the breakeven point in 2019-2020.

According to the financial report, in the first quarter of 2020, 9 Mu Wang realized business income of 579 million yuan, a year-on-year decrease of 27.63%; net profit attributable to shareholders of listed companies was 63 million 133 thousand and 800 yuan, a decrease of 76.67% compared with the same period last year; the basic earnings per share were 0.11 yuan, 0.47 yuan a year earlier.

The nine year old business explained that operating expenses increased by 2 million 994 thousand and 500 yuan over the same period last year, an increase of 624.16%, mainly due to the increase in the cost of donations for the reporting period. The net cash flow from investment activities decreased by 115 million 776 thousand and 300 yuan compared with the same period last year, mainly due to the sale of Treasury securities in the same period last year.

Everbright Securities researcher Li Jie judgment, affected by the epidemic, nine Mu Wang business income and profits in the first quarter of a larger decline, from the perspective of channels, the company's offline channel accounts for a relatively high, short-term impact on the retail and consumption intention of the suppression effect still exists, the performance of pressure, cut to the present, the company's main brand dominates, FUN Brand growth is relatively fast, and the revenue is still growing positively during the reporting period, expecting to become a new growth point in the future. In addition, it is also necessary to see that in recent years, the king has maintained a high dividend payout rate, and the return of shareholders is considerable. Meanwhile, as at the end of 3 2020, the money of the nine kings was 552 million yuan and the trading financial assets were 816 million yuan, and the financial strength and anti risk ability were relatively strong.