Zhejiang Cashmere Family Clothing Co., Ltd (hereinafter referred to as "cashmere family") disclosed the prospectus a few days ago. The company plans to rush to the Shenzhen Stock Exchange main board, with Haitong Securities as its sole sponsor. The total share capital of the company before the issuance was 58 million shares, and the number of shares expected to be issued this time was 19333334 shares. After the issuance, the total share capital of the company will increase to 77333334 shares.
Cashmere Aristocratic Family plans to raise 350 million yuan this time to further expand the company's existing production scale and enhance its product sales capacity. After the completion of the "marketing network construction project", the company will add 100 sales stores on the basis of the existing 138 sales stores, which will effectively improve the company's market share and product sales; When the "Intelligent Production Line Construction Project" is completed and put into operation, the company will increase the production capacity of 528000 knitted products annually on the basis of the current annual production capacity of 1 million pieces. Among them, the total investment of the marketing network construction project is expected to be 224 million yuan, with a construction period of three years. The project is planned to adopt the leasing method to arrange the marketing network nationwide, and it is planned to add 100 new marketing terminal stores. After the completion of the project, the company's retail network layout will be further expanded, and the coverage of direct stores will be significantly improved. The total investment of the marketing network construction project is expected to be 224 million yuan, including 31.3533 million yuan of rental costs, 21.7896 million yuan of equipment purchase and installation, 10 million yuan of construction costs, 1.5895 million yuan of basic reserve funds, and 160 million yuan of initial working capital. The construction period is three years. The project is planned to adopt the leasing method to carry out the nationwide marketing network layout. It is planned to add 100 new marketing terminal stores. After the completion of the project, the company's retail network layout will be further expanded, and the coverage of direct stores will be significantly improved. The total investment of the intelligent production line construction project is 126 million yuan, including 103 million yuan for equipment purchase and installation, 5.15 million yuan for basic reserve funds, 17.9586 million yuan for initial working capital. The construction period of the project is three years, and the production rate of the products reaches 32% in the T1 year of the construction period; The operation period is T2 years, and the production rate of the project is 63%; The operation period is T3 years, and the production rate of the project is 94%; The operation period is T4 years, and the project is in full production. According to the prospectus, from 2019 to 2021 and the first half of 2022, the operating income of cashmere family was 730 million yuan, 650 million yuan, 750 million yuan and 320 million yuan respectively; The net profits were 59.8676 million yuan, 35.8276 million yuan, 68.872 million yuan and 31.0721 million yuan respectively. By the end of the first half of 2022, the net cash flow from cashmere family's operating activities was -47.4086 million yuan, the net cash flow from investing activities was -5.7752 million yuan, the net cash flow from financing activities was -13.3788 million yuan, and the total assets of the company was 860.7 million yuan. At the end of each reporting period, the monetary capital balance of Cashmere Family was 148 million yuan, 227 million yuan, 185 million yuan and 161 million yuan, accounting for 28.56%, 37.81%, 34.65% and 23.75% of current assets, respectively. Monetary funds are mainly composed of bank deposits and other monetary funds, among which, other monetary funds are mainly deposits for bank acceptance bills; The interest receivable not due is the interest of fixed deposit withdrawn at the end of the period.
As a clothing and apparel enterprise with cashmere, wool and other plush materials as its characteristics, cashmere family's marketing network layout mainly focuses on provincial capital cities, sub provincial cities and municipalities directly under the Central Government. The store is located in the residential community of consumer groups pursuing quality life and the gathering place of CBD and other people, taking into account the flow of people The number of target customers, consumption capacity and other factors will finally determine the marketing network layout plan. As of June 30, 2022, the company has opened 138 stores, including 88 direct stores and 50 franchised stores. At the end of each reporting period, there were 58, 67, 82 and 88 cashmere family stores, accounting for 58.59%, 63.21%, 64.06% and 63.77% of the total number of stores. During the reporting period, the change range of main items in the income statement of Cashmere Family is relatively consistent with the change trend of the company's performance, and the overall business condition is good. Among them, in 2020, the company's domestic and foreign sales revenue was negatively affected by the impact of the global new coronal epidemic, leading to a decline in business performance. With the steady implementation of epidemic prevention and control and the gradual advancement of the company's marketing network construction, the company's operating income and net profit will recover in 2021 and increase slightly compared with that before the epidemic.
The cashmere family's products are mainly composed of clothing, clothing and yarn. During the reporting period, the company's clothing and apparel sales maintained a growth trend, and the proportion of clothing and apparel revenue in the company's main business revenue increased from 72.78% in 2019 to 83.25% in 2021. At present, the sales amount and proportion of self owned brand clothing and apparel with the highest profit margin have grown steadily. The sales revenue of the company's garment customization business remained relatively stable during the reporting period. Except for the decline in 2020 due to the impact of the epidemic, the overall fluctuation was small. During the reporting period, Cashmere Family vigorously developed its own brand business, of which the development of direct stores was particularly prominent, and its sales revenue accounted for 27.87% of the main business revenue in 2021, up from 19.24% in 2019. As of June 30, 2022, the company has 88 direct stores, with major branches in major cities in the east and major cities in the central and western regions such as Chengdu, Xi'an and Wuhan. The sales revenue of franchise stores of the Company remained at a stable level, accounting for about 8% of the main business revenue of the Company. Other channels of cashmere family's independent brand are mainly online direct marketing and group buying, and their sales revenue accounts for a relatively low proportion. During the reporting period, the overseas sales of cashmere family yarn were mainly based on the needs of foreign trade customers. The proportion of the whole yarn sales scale is not high and the trend is decreasing year by year, which is not the direction of the company's development in the future. In the first three years of the reporting period, the company provided raw materials to the entrusted processing manufacturers to make finished yarn. Since the end of 2021, the company will directly purchase yarn for delivery. The added value of the profit of the whole model is not high, nor can it form a brand premium. Other businesses of Cashmere Family include the sales of fabrics and low value consumables, and its sales revenue remained at a low level during the reporting period. During the reporting period, the main categories of cashmere family clothing and apparel include tops, coats, skirts, pants and accessories. The company's clothing and apparel product structure is relatively stable, but also has a certain focus. The details are as follows: (1) Top products include various knitwear, shirts, etc., covering the four seasons of spring, summer, autumn and winter. Their sales revenue is basically about 50% of the company's main business revenue, which is the company's main product category. (2) The outerwear products include cardigan, overcoat, windbreaker, down jacket, etc., which mainly cover autumn and winter. Its sales have increased significantly in the reporting period, and it is now an important product category of the company. The increase in sales of outerwear products reflects the transformation of the company's clothing fashion. The unit price of outerwear products is relatively high, which will help the company to continuously improve its income level in the future. (3) Skirt products include skirts, dresses, etc. Their sales revenue accounts for a small proportion of the company's main business income, but it enriches the product categories. (4) The sales revenue of pants products, including trousers, has increased significantly in the reporting period, but the proportion of the company's main business revenue is still at a low level. (5) Accessories mainly include hats, scarves, blankets and other plush peripheral products. Their sales revenue accounts for a relatively small proportion of the company's main business revenue, but it has deepened customers' experience of plush products.
During the reporting period, the operating income of Cashmere Family was relatively high in the second half of the year, but the operating income of the four quarters of the year did not fluctuate significantly. First, the company's operating income in the fourth quarter is mainly contributed by domestic brand business, because the sales of cashmere clothing are seasonal; The operating revenue in the second quarter and the third quarter is mainly contributed by the yarn business and the garment customization business. Because foreign trade customers consider the production period, shipping date and other factors, they usually place orders in advance before the peak sales season in autumn and winter. For customers with yarn demand, they will also organize production as finished products, often placing orders earlier. Therefore, the second quarter of the company is the peak of yarn shipments. From 2019 to 2021, the operating income of cashmere family in the fourth quarter accounted for 23.09%, 30.05% and 26.68% respectively. Among them, the proportion of operating revenue in the fourth quarter of 2020 has slightly increased compared with other years. The main reason is that in the first half of 2020, the company was affected by the epidemic, and its operating revenue declined year-on-year. In the second half of 2020, with the epidemic effectively controlled in China, the company's performance has effectively recovered, which led to the prominent proportion of operating revenue in the fourth quarter of the year. During the reporting period, the domestic business of Cashmere Family developed steadily, and its revenue accounted for 44.59% of the main business revenue in 2021, up from 35.72% in 2019. The amount of overseas business revenue remained relatively stable. In general, the company's domestic and overseas businesses are in a balanced development trend. The domestic business of Cashmere Family is mainly self owned brand sales, and most of its operating revenue comes from East China, led by Hangzhou and Shanghai, and Southwest China, led by Chengdu. Relying on the three independent brands of "METTE", "SPRINGAIR" and "METTEKIDS", the company aims to create high-quality fashion clothing and apparel brands with cashmere as the core, with consumers who pursue quality life as the target customer group. The company adopts a relatively flexible community store marketing network layout, which is in line with the current target customer group's consumption habits of "experience consumption, convenient consumption, zero distance service". At present, the store layout is dominated by major cities in East China, and is developing to regional central cities nationwide. The domestic business of cashmere family also has a small amount of yarn and tailoring business. During the reporting period, the overseas business income of Cashmere Family mainly came from Europe, Japan, the United States, Australia and other developed regions. Among them, the operating revenue in Europe increased significantly during the reporting period, and the proportion of its operating revenue in the main business increased from 21.75% in 2019 to 37.00% in 2021, mainly because the company's European customers SUITSUPPLYB.V., EXTREMECASHMEREB.V., CAROLINTERNATIONAL and others increased their purchase volume from the company in 2021. The operating revenue in Japan declined during the reporting period, mainly because the yarn purchase volume of Japanese customer MARUBENIKABUSHIKIKAISHA declined during the reporting period. The operating revenue of other regions in Asia declined during the reporting period, mainly because the gross profit margin of products sold by the company to EDONGCOLTD was low, and the other party gradually withdrew from the company's sales network in 2021.
During the reporting period, the independent brand business of Cashmere Family developed steadily. The total sales revenue of METTE, METTEKIDS and SPRINGAIR brands increased from 27.11% in 2019 to 37.26% in 2021. METTE is committed to creating a fashionable cashmere clothing brand. Its products cover men's and women's clothing, accessories, home furnishings and other series. It is the main brand of the company's brand business, and its sales revenue has also increased significantly in the reporting period. METTEKIDS is a new brand for children launched by the company in 2020, and its sales revenue has steadily increased in the reporting period. SPRINGAIR is positioned as a high-quality classic cashmere product, and its sales revenue has remained stable during the reporting period. During the reporting period, cashmere family's main business gross profit accounted for more than 99%, which was the main source of the company's gross profit. During the reporting period, the gross profit of cashmere family's main business showed a growth trend, and declined year-on-year in 2020, mainly because the overall income scale of the company in that year was affected by the epidemic. During the reporting period, the comprehensive gross profit rate of cashmere family's main business increased steadily, mainly due to the rising proportion of revenue from self owned brand business with high gross profit rate. In each reporting period, the sales of the company's own brands accounted for 27.10%, 32.09%, 37.26% and 36.56% of the main business income, respectively. During the reporting period, the gross profit rate of cashmere family's clothing and apparel products fluctuated steadily and rose steadily, mainly due to the increase in the proportion of income from independent brands. The increase of gross profit margin of the company's clothing and apparel products in the first half of 2022 is mainly due to the increase of gross profit margin of the company's garment customization business, including: During the reporting period, the gross profit rate of cashmere family's independent brand generally remained at a high level, with a small fluctuation. The decline in the gross profit margin of self owned brands in 2020 is mainly due to the impact of the COVID-19 epidemic, and the company's moderate use of promotional activities to keep the business of self owned brands growing steadily. During the reporting period, the gross profit rate of cashmere family stores was higher than that of franchise stores in each period, mainly because the income from products sold through franchise stores had to be settled with the franchise stores in a certain proportion. Therefore, although the terminal selling price of the same commodity sold through the franchise stores and the franchise stores remained the same, The company's sales revenue from goods sold by franchise stores is lower than that of direct stores, which lowers the gross profit margin of franchise stores. Other channels of cashmere family's independent brand mainly include online direct marketing and centralized procurement. Affected by the change of sales proportion of different channels, the gross profit rate fluctuates slightly. The overall scale of this kind of business is small, which has little impact on the overall gross profit rate of the company. In the first three years of the report period, the gross profit rate of cashmere family's tailoring was about 20%, which was significantly higher in the period from January to June 2022 than in the years before the report period. The main reason was that the proportion of customer income with relatively high gross profit rate was increased, and the rise of the exchange rate between the US dollar and RMB led to the increase of the actual income of products priced in US dollars. In each reporting period, the gross profit rate of cashmere family yarn was 13.79%, 15.61%, 14.01% and 8.14% respectively. From January to June 2022, the gross profit rate of cashmere family's yarn business declined significantly compared with the years before the report period. The main reason is that the company has changed its yarn business model from the end of 2021 to the end of 2021 to reduce the risk of fluctuations in the price of raw materials brought by the purchase of raw materials. The main reason is that the company has changed from entrusted processing to direct outsourcing of finished goods delivery. Others include fabrics and low value consumables. Due to the small amount of such business, the gross profit rate of the whole year is greatly affected by a single order, so the gross profit rate fluctuates greatly during the reporting period. During the reporting period, cashmere family's main business gross profit accounted for more than 99%, which was the main source of the company's gross profit. During the reporting period, the gross profit of cashmere family's main business showed a growth trend, and declined year-on-year in 2020, mainly because the overall income scale of the company in that year was affected by the epidemic. During the reporting period, the comprehensive gross profit rate of cashmere family's main business increased steadily, mainly due to the rising proportion of revenue from self owned brand business with high gross profit rate. In each reporting period, the sales of the company's own brands accounted for 27.10%, 32.09%, 37.26% and 36.56% of the main business income, respectively.
It can be seen from the above table that the gross profit rate of cashmere family is at the same level as the average value of companies in the same industry. Due to different business models and industry chains of comparable companies, there are differences in the level of comprehensive gross profit margin. Xin'ao shares are located in the upstream of the industrial chain, mainly engaged in yarn production, so the gross profit margin is relatively low, below 20%; Ruyi Group, Shengtai Group, Nanshan Zhishang, Tamus, and leading shares are generally in the middle of the industrial chain, with gross profit margin of 20% - 35%. The difference is affected by the specific sales and production modes of each company; Anzheng Fashion, Hongxing Shares and Disu Fashion are the main brands of clothing. At the downstream of the industrial chain, the gross profit margin is generally high, above 35%. The cashmere family industry chain is complete, and the proportion of independent brands is constantly increasing. Therefore, the overall gross profit margin of the company is also slightly improved. Compared with the comparable companies operating in textiles and clothing, the gross profit margin is also at a reasonable level. At the end of each reporting period, the book value of cashmere family's inventory was 305.6416 million yuan, 292.9533 million yuan, 275.9757 million yuan and 400.5538 million yuan, respectively, accounting for 58.80%, 48.61%, 51.65% and 58.92% of current assets. The company's inventory scale was relatively large, accounting for a relatively high proportion of current assets, It is mainly determined by the characteristics of the textile and clothing industry and the production and operation mode of the company. At the end of each reporting period, the total number of employees of Cashmere Family was 1727, 1338, 1525 and 1584 respectively, including 816, 859, 937 and 998 domestic employees; The number of overseas employees is 911, 479, 588 and 586. At the end of each reporting period, the number of domestic employees of Cashmere Aristocratic Family has maintained a stable growth level. The overseas employees are mainly production workers of Chunfeng Myanmar. The major reason for the sharp decrease from the end of 2019 to the end of 2020 is the impact of the epidemic situation and political fluctuations in Myanmar, which led to the company's passive reduction of the number of employees
