Double Net Profit, High Inventory, Textile And Garment Industry Survive

The business performance of 43 textile and garment enterprises in the first half of this year has been settled. According to wind data statistics, from the perspective of net profit attributable indicators, more than 80% of enterprises have maintained profits in the first half of this year, of which 17 enterprises have doubled their net profit on a year-on-year basis. In contrast, soyute's business performance was the worst, with a loss of more than 1.3 billion yuan.

Home of Hailan

The semi annual reports of 43 textile and garment enterprises have been published. The net profit of 37 shares in the first half of this year is in profit state. Specifically, among the 37 shares mentioned above, 16 shares made a profit of more than 100 million yuan in the first half of this year. Hailan home is the most profitable individual stock in textile and garment enterprises. Hailan home realized a net profit of about 1.65 billion yuan in the first half of this year.

Wind data shows that 28 of the 37 stocks that belong to net profit in the first half of this year are in growth. Among them, 22 shares had a year-on-year increase of more than 50% in the first half of this year, and 17 shares had a year-on-year increase of more than 100%.

Wind data shows that the net profit attributable to 10 shares, such as Mayer, Pathfinder, baoxiniao, daily broadcast fashion, Xinhe shares and Jihua Group, achieved a year-on-year increase of 100% to 200% in the first half of this year. In the first half of this year, the net profit of taipingniao, septenaeus, St Guiren and anel increased more than twice. In the first half of this year, the attributable net profit of Jinhong group, langzi shares and SEMAR clothing increased by more than 10 times.

The biggest increase in performance is Jinhong group. It is understood that the main business of Jinhong group is the design and development, production and manufacturing, brand marketing and terminal sales of medium and high-end fashion. It owns teenieweenie, vgrass and Yuanxian brands. Data shows that in the first half of this year, Jinhong group realized a net profit of 133 million yuan, a year-on-year increase of 5400.14%. In the first half of this year, the net profit of Lanzi Co., Ltd. and SEMAR Clothing Co., Ltd. were 93 million yuan and 665 million yuan respectively, with a year-on-year increase of 3343.58% and 2980.24%.

Over 1.3 billion special deficit

In contrast, the operation of soyute, * ST lashia, * ST global, Meibang apparel, St Bolong and St modern were not optimistic in the first half of this year, and all of them suffered losses.

Soyute's revenue and net profit in the first half of this year have both declined. According to the data, in the first half of this year, the operating revenue of souyu was about 2.798 billion yuan, a year-on-year decrease of 26.68%; The corresponding realized attributable net profit loss was about 1.335 billion yuan, with a year-on-year decrease of 3963.43%.

Soyute is also a share of textile and garment enterprises in the amount of net profit loss of the largest number of shares. Soyute said that brand clothing and supply chain management business are the company's two major business revenue and profit sources. Due to the shortage of funds, brand clothing business has been mainly selling inventory products since 2021, which has seriously affected the sales performance; In the aspect of supply chain management, due to the shortage of funds and overdue payment for goods from suppliers, the company's purchase in the market has been affected and the company's business has been greatly affected. In addition, in order to repay the interest, pay the supplier's loan, storage rental fee, wages and other production and operation expenses, the company deliberated and passed the "proposal on greatly reducing the price and promotion of the company's inventory" at the 30th meeting of the Fifth Board of directors on July 14, 2021, and the company further strengthened the disposal of inventory goods, The company further reduced the price of raw materials and fabrics with book balance of 613 million yuan and clothing of 1.582 billion yuan on the original basis, and the loss of impairment of assets increased by 1.205 billion yuan. As a result of the above reasons, the company's business income and profit decreased significantly during the reporting period.

From 2018 to 2020, the attributable net profit of souyute will continue to decline, and in 2020, the attributable net profit will lose about 1.771 billion yuan. In this context, what specific measures should be taken to save the company's performance? In reply to the reporter's interview letter, souyute said that the company's response to performance losses is detailed in the company's "2021-083: Announcement on the amount of outstanding losses reaching one third of the total paid in capital" published on August 30, 2021.

Soyu said in the announcement that redundant employees should be cut down to reduce management costs; To open up a new development channel for the company's brand clothing through trademark authorized operation; Adjust the company's production mode of goods; Adjust the supply mode of some regional franchisees.

In addition, * ST lashia, * ST global, Meibang clothing, St Bolong, St modern realized a loss of about 237 million yuan, 53 million yuan, 39 million yuan, 21 million yuan and 20 million yuan respectively in the first half of this year.

The inventory of 8 enterprises exceeded 1 billion yuan

In the field of textile and clothing, high inventory has been a common problem in the industry, and this index has also been concerned.

According to wind data, as of the first half of this year, 39 of the 43 textile and garment stocks had an inventory value of over 100 million yuan, and 8 stocks of Meibang clothing, anzheng fashion, souyute, taipingniao, Senma apparel, Jihua Group, Hailan home and Youngor exceeded 1 billion yuan, of which Yager ranked first.

According to Youngor's semi annual report, as of the end of the reporting period, Youngor's inventory amount was 16.575 billion yuan, accounting for about 19.67% of the total assets. It is understood that Youngor's inventory classification includes material procurement, materials in transit, raw materials, turnover materials, goods in stock, goods sent out, materials entrusted for processing, land to be developed, products to be developed, development costs, etc. Among them, the book balance of Youngor's inventory goods is about 1.27 billion yuan, and the corresponding book value is about 1.198 billion yuan.

Wu Daiqi, CEO of Shenzhen siqisheng Cultural Communication Co., Ltd., said in an interview with reporters that garment enterprises have been greatly affected by the epidemic from last year to this year. On the one hand, it is the impact of opening stores and on the other hand, consumers have reduced their expenses on clothing. This industry has the characteristics of seasonality and popularity. That is to say, when the clothing of that year reaches the market of the next year, it may be that the style, main color and fabric material are out of date, and it is easy to form overstock. Although some brands will clear goods through the online platform, they will also consider the negative impact of low price on the brand, and on the contrary, they will form a situation of high inventory.

In the view of investment and financing expert Xu Xiaoheng, the clothing industry has accelerated the involution, homogenization competition is becoming more and more serious, price war, marketing war and so on emerge in endlessly. In terms of the general trend of the industry, the tide of industrial transformation and upgrading is coming, and it is imperative to strengthen the supply chain management; In terms of user demand, in the era of consumption upgrading, users' demand for high-quality and high-quality clothing is growing.

Wu Daiqi said that the development of clothing brands needs digital transformation, more focus on online development, the use of video platforms, live broadcast and other forms of publicity and promotion, if you use the online model pre-sale way, you can better control inventory. However, the improvement of offline stores is more difficult and costly, and may gradually shrink; Unless the store can enter a more advanced experience mode and attract consumers to the store, the more offline physical stores, the more unfavorable the enterprise's operation may be, and the more likely the inventory will be overstocked.

(source: Beijing business daily)

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