Net Profit Decline, Stock Pressure Big Saturday To Enter The Internet Winning Geometry?

In recent years, 002291.SZ (002291.SZ) published its annual report in 2018. It realized revenue of $1 billion 532 million in the reporting period, up 1.87% from the previous year. The net profit attributable to the shareholders of listed companies was 8 million 933 thousand and 600 yuan, and the profit of a loss of 352 million yuan in the previous year was a profit.

Net profit fell on Saturday.

Despite the losses, the net profit from Saturday 2018 is still very poor, just less than half of 2016, compared with 2011's 1/10.

From 2010 to 2018, revenues on Saturday were 1 billion 143 million yuan, 1 billion 348 million yuan, 1 billion 569 million yuan, 1 billion 844 million yuan, 1 billion 758 million yuan, 1 billion 642 million yuan, 1 billion 484 million yuan, 1 billion 504 million yuan and 1 billion 532 million yuan respectively. The net profits attributable to shareholders of the parent company were 100 million yuan, 100 million yuan, 100 million yuan, Yuan Yuan, Yuan Yuan, Yuan Yuan, Yuan Yuan, -3.52 billion yuan, and Yuan Yuan respectively.

Saturday's operating income and net profit.Png, from 2014 to 2018, Saturday's net assets yield was 2.2%, 1.3%, 1.14%, -21.18%, 0.6%, compared with other companies in the same industry starting stock, Tian Chong fashion, Wanlima, Xingye technology, Hasen shares, AOKANG international, red dragonfly and so on in the last place.

Investor net reviews the calendar year's earnings on Saturday, and Saturday's explanation for the decline in performance is mostly: the worsening of the macro consumption environment, the rising cost of channels and the increase of staff salaries, bringing pressure to the operation.

Investor net has noticed that, like Daphne and Millennium brand, the number of stores has also been decreasing on Saturday.

From 2014 to 2018, the number of brand chain stores on Saturday was 2327, 2044, 1811, 1589 and 1378 respectively.

However, offline stores are shutting down, but online sales on Saturday are not encouraging.

From 2014 to 2018, the sales revenue of net sales channel was 240 million yuan, 298 million yuan, 245 million yuan, 192 million yuan and 170 million yuan on Saturday, respectively, accounting for 13.67%, 18.41%, 16.52%, 12.77% and 11.10% respectively.

Online sales revenue is declining.

Investor net visited Tmall Saturday and dfuse flagship store, noting that Saturday's official flagship store had 1170 baby month sales of 15231, a total of 1 million 710 thousand fans, and the dfuse flagship store had 489 sales of 2569, with 483 thousand fans.

This data is not obvious. Similarly, in Tmall flagship store, BELLE shoes have 5 million 533 thousand fans, while Adidas, Nike, newbalance and Anta fans are more than ten million.

A further browse of investor net found that most of the women's shoes at Tmall flagship store were priced at around 500 yuan on Saturday, and half of the original price of 1000 yuan would be discounted.

Another look at the evaluation of the flagship store on Saturday, and found that many consumers complained that the customer service staff at the electricity supplier side did not respond promptly and the service attitude was cold.

Consumers are also dissatisfied with the size and smell of the product.

High inventory pressure and high accounts receivable.

In 2018, sales, production and Inventory were 6 million 239 thousand pairs, 4 million 685 thousand and 700 pairs and 10 million 364 thousand and 700 pairs on Saturday, respectively, representing an increase of 16.64%, 2.14% and -13.03% compared with the same period last year.

However, despite the decrease in the number of inventories on Saturday, 2018, the company's stock is still under great pressure.

From 2014 to 2018, the ratio of inventory to total assets on Saturday was 47.64%, 48.71%, 50.61%, 43.32% and 45.73% respectively.

On Saturday 2018, the inventory value was 1 billion 409 million yuan.

From 2014 to 2018, the inventory turnover rate was 0.67, 0.54, 0.44, 0.44, 0.5 times on Saturday, and the turnover days were 533.81 days, 664.57 days, 803.03 days, 820.42 days, 715.85 days.

Compared with other companies in the same industry, they are at a high level.

On this occasion, He Jianfeng, Secretary of the board of directors, said on Saturday: "as we used to open stores in department stores, we accumulated some stocks, which need to be adjusted and digested for a certain period of time.

At present, more than 80% of inventory is within a year.

In addition, we are direct sales oriented sales mode, so the inventory is still in our company here. In the future, we will gradually reduce the inventory level through the proportion of affiliate and the reduction of direct sales ratio.

In addition, the number of accounts receivable on Saturday is always high.

From 2014 to 2018, the amount of accounts receivable on Saturday was 726 million yuan, 708 million yuan, 713 million yuan, 757 million yuan and 777 million yuan respectively.

It is at a high level with other comparisons in the same industry.

Generally speaking, accounts receivable is too high, which represents the bargaining power and weak voice of the company in the industrial chain.

In reply to the Shenzhen Stock Exchange enquiry letter last Saturday, the company said that the sales pattern of the company was mainly in the department store and store store, which required more inventory in the retail sector, resulting in more accounts receivable, and less illiquid assets needed to invest, so the current assets accounted for a relatively high proportion.

More than 70% of the company's revenue comes from department stores, and accounts receivable form the department stores.

With the development of e-commerce sales market, the proportion of accounts receivable will gradually decrease.

However, in the 2018 annual report, the amount of accounts receivable on Saturday remained high.

On Saturday, He Jianfeng, Secretary of the board of directors, said: "our company is still mainly engaged in direct selling, and the proportion will be gradually increased.

Accounts receivable are still in department stores.

But the department store business has not been ideal for the past few years.

We also try our best to reduce accounts receivable, but we should also consider the situation of specific department stores.

Force Internet advertising

After the main business was sluggish, the Internet advertising business began on Saturday.

On Saturday, 2017, the acquisition of stylish fast forward and Beijing Shixin was completed.

And fashion front, Beijing Shixin main platforms are OnlyLady women's and Kimiss girlfriends.

In 2017 and 2018, the revenue of Internet advertising industry was 138 million yuan and 169 million yuan on Saturday respectively, accounting for 9.20% and 11.02% of gross revenues respectively, with gross margins of 60.40% and 57.10% respectively.

On Saturday, Future Ltd said that Future Ltd will continue to focus on the strategic development direction of the "fashion IP ecosystem", focusing on building "media and social platform", "fashion IP incubator platform" and "fashion IP collection platform" to pform the new retail platform.

Last year, on Saturday, Hangzhou focused on acquiring Network Inc with a total valuation of 2 billion yuan.

According to public information, the main business of the network is digital advertising and self media business.

In the first three quarters of 2015, 2016, 2017 and 2018, the net profit of the network was 25 million 130 thousand yuan, 35 million 100 thousand yuan, 59 million 190 thousand yuan and 129 million yuan respectively.

By the end of 2017, the total assets of the network were 575 million yuan.

Investor net noted that the network was also a new three board listed company. In December 2015, the network was listed on the new third board and delisted in March 22, 2017.

It is worth noting that, according to performance commitments, the net profit after tax deduction of non recurring gains and losses from the network in 2018, 2019 and 2020 is no less than 160 million yuan, 210 million yuan and 260 million yuan respectively.

This net profit level is more than 10 times the net profit of the parent company on Saturday 2018.

If the network can really achieve this level in the future, the current situation of small profits may improve on Saturday.