Focus On Hailan Home (600398. SH) Released Its 2021 Financial Report

On the evening of April 27, the national brand Hailan home (600398. SH) released its 2021 financial report. The company ranked first in the clothing industry with a year-on-year growth of RMB 201.2 billion, with a year-on-year growth of RMB 88.3 billion; The net profit attributable to the parent company was 2.491 billion yuan, with a year-on-year increase of 39.60%; Earnings per share was 0.58 yuan, up 41.46% year on year.

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It is worth noting that while both revenue and net profit have maintained double-digit growth, the operating cash flow increased by 54.09% to 4.361 billion yuan. In the view of industry insiders, sufficient cash will be conducive to the optimization of the company's capital structure and calmly cope with the rising prices of raw materials caused by the current market fluctuations.

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It should be noted that in March 2021, Hailan home was renamed as "Hailan Home Group Co., Ltd." and the strategy of "multi brand, full category and collectivization" was put forward to promote the transformation of brand to innovation and creation, strengthen product technology research and development, expand brand culture, and enhance product added value and soft power.

And a series of excellent financial data disclosed in the annual report fully show the steady development trend of Hailan home as a leading enterprise, which is also further verified by the group strategy.

Strengthen men's wear market position

As a representative of domestic products, Hailan home won the sponsorship of CCTV Spring Festival Gala in the year of the ox at the beginning of the year, becoming the first clothing brand to cooperate with CCTV Spring Festival Gala, highlighting the national brand tonality. In addition, the BCI incident further ignited the national trend, and consumers' sentiment for domestic products was warming up. Hailan home caught up with the "Guochao" express, and made all-round layout and multi-level efforts to achieve rapid development. According to the financial report, the main brand Hailan home achieved 15.133 billion yuan of main business revenue in the whole year, with a year-on-year growth of 9.91%.

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In addition to the growth of performance, Hailan home has carried out a variety of innovations in clothing in 2021, which is welcomed by consumers. Among them, at chic2021 clothing Expo, Hailan home moved the immersion clothing laboratory to the exhibition stand, perfectly presenting the group's outstanding achievements in technological innovation, industrial transformation and sustainable development in the field of clothing, highlighting that the brand is no longer the image of a single category, and began to try its best to live scenes and create a multi brand matrix.

In addition, 2021 is a big year for the development of China's aerospace industry. Hailan home and China Aerospace cross-border cooperation to create the "Hailan house x China Aerospace · space innovation" IP co branding series, inherit the space spirit, help the space dream, and benchmark the space quality. In order to meet the growing needs of consumers, Hailan home continues to shape the brand value, constantly explore the integration and innovation of traditional culture and modern clothing, and create the beauty of life.

In this regard, clothing industry analysts said that under the impact of the epidemic, Hailan home can achieve rapid growth, which is enough to illustrate the company's market position. The innovative clothing style has been highly concerned by the market, which also shows the R & D capability of Hailan home, which will become a new growth point of the company in the future.

Rapid growth of multi brands

Since 2017, Hailan home group has opened up a diversified brand layout, expanding the subdivision fields of men's wear, women's wear, living home and professional wear through self-service incubation and acquisition.

At present, in addition to the main brand Hailan home, there are light luxury women's ovv, home life brand Hailan preferred, fashion fast fashion men's and women's black whale, children's wear brand boys and girls, and mother and baby brand yeehoo. With the strong management and brand operation ability of the parent company, we will continue to build leading brands in various subdivision fields.

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The growth rate of other companies will remain at the high level of RMB 77 / 2022.06/20.02 billion in 2017, and the growth rate of other major brands will remain at RMB 11.99/20.04/20 in 2017.

"In recent years, the sub brands of Hailan home have developed very well, especially ovv and yeehoo, etc., which are very popular among consumers. At present, they are developing rapidly. With the further expansion of these brands, they will be important support points for the company's performance in the future." The clothing analysts said.

Technology enabled fashion

With the upsurge of the national tide, the domestic clothing "appeals to the wind". The National Men's wear takes the national trend as the theme. In 2021, it has launched a series of products such as the new year of the ox, the Chinese zodiac and aerospace co branding series, aiming at "generation Z", and with the help of a more young and fashionable image of the national trend, it captures the minds of young consumers.

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Thanks to the multi category development strategy of Hailan home, Hailan home has reduced the proportion of pure business wear and launched highly functional products. The more scenes are used, the larger the number of consumers will be covered and the stronger the demand will be. With the rise of new technology, users like the change of clothing application scenarios have become diversified, so Hailan home will expand its product line to meet the needs of consumers in different wearing scenarios and promote the improvement of product strength.

Scientific and technological innovation, green manufacturing, personalized customization, these keywords are repeatedly mentioned by Hailan house in 2021. According to the financial report, the R & D expenses of Hailan home in 2021 increased by 49.21% year-on-year. In the field of traditional men's wear, Hailan House continues to seek a comprehensive breakthrough in functionality. It has insight into the deep needs of consumers from the fabric and technology, and has developed such scientific and technological fabrics as cool cotton, soft cotton and graphene; Six dimensional elastic pants, black and white small T, all-round jacket and other technology items.

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Children's clothing safety topic has always been the focus of parents' attention. When printing and dyeing children's clothing, Hailan home creatively developed safe fruit dyeing technology, extracting juice from natural fruits to dye cloth. There is no sewage in the whole dyeing process, and no chemical additives are added in the production process. Based on children's physical and mental health, children's healthy growth is taken care of. Highlight the hard power of Hailan home products, improve the dynamic sales rate and brand reputation.

Explosive growth of online sales

The continuous recurrence of the epidemic and the subsequent upgrading of prevention and control policies will have a greater impact on the retail industry in 2021, and it will take time for the overall recovery, price increase and valuation repair of the retail industry.

In August 2021, the Ministry of Commerce, the Ministry of Finance and other six departments issued the notice on supporting the development of offline retail, accommodation catering, foreign foreign trade and other market entities, aiming to increase directional support for market entities continuously affected by the epidemic, such as offline retail, accommodation catering, foreign trade, and so on, so as to help enterprises in relevant industries effectively cope with the current epidemic situation, Better service, build a new development pattern, and promote industry recovery and high-quality development.

It is worth noting that offline sales is the cornerstone of the development of Hailan home, and the recovery of offline stores is the core theme throughout the year. Therefore, the offline channels of Hailan home are meeting the market challenges by optimizing the store structure and integrating into digital ecology.

In 2021, Hailan home focuses on the optimization of store structure. While keeping the total number of stores unchanged, Hailan home will expand shopping malls and improve store efficiency by reducing inefficient stores and entering the core business circle.

In 2021%, the gross profit rate of Lanying stores reached a record high of 49.63%. At the same time, the new store location, new store image, and the long-term naive service of Hailan home help Hailan family expand the sales volume of offline channels in young circles. According to the financial report, there are 5672 offline stores, including 241 Direct stores.

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And online, in the past two years, Hailan home online channel has continued to make efforts to open a new retail mode. On the basis of the original traditional e-commerce, the development of social new retail, brand self broadcast, anchor with goods and other online shopping forms, not only improves the shopping experience of consumers, but also reduces the cost of customer acquisition. According to the financial report, the online revenue of Hailan home's main brand was 2.726 billion yuan. On the premise of high growth last year, it still increased by 32.98% year on year, achieving double-digit growth.

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The expansion of Omni channel not only enriches the revenue level of Hailan home, but also meets the diversified consumption demands of consumers, and lays a foundation for the group to realize the integration of online and offline development. In 2021, Hailan home vigorously develops store members. In November, the first offline double 11 shopping carnival was held in stores across the country. During the activity, 7 million new members were added, and the number of members exceeded 20 million. In addition, the sales of stores on double 11 increased by 50% in a single day.

In this regard, the company said that the diversified way will promote the company's brand more young. Hailan home will continue to focus on the main brands, expand core business circle channels such as shopping centers, and develop online channels. It is expected to maintain steady growth through channel scale expansion in the future; In the early stage, the company actively cultivated new brands and began to take shape. At the same time, it decisively adjusted non core brands, eliminated the fittest, controlled risks, and continuously optimized the brand matrix. Following the development trend of the industry, the company has a good layout of children's wear, high-end women's wear and other subdivided tracks. After the epidemic, the company will increase investment, and the new brand is expected to continue to develop.