Local apparel companies are in a transitional phase

In the past, the "Domestic Apparel First Brand" Meibang dress scene is no longer. According to its 2015 results report released recently, the company reported a loss of 431 million yuan during the reporting period, a year-on-year drop of 396 percent. Prior to this, a number of listed apparel companies, such as Huasi Co., Ltd. and Septwolves, also disclosed their annual reports, and most of the net profits showed a downward trend. Clothing industry experts pointed out that domestic apparel brands that are entering the transition period will at least undergo 3-4 years of pain.

Listed apparel companies that have disclosed 2015 financial data (Cartography: China Net Finance)

The majority of domestic listed apparel performance declined over a 400 million U.S. dollar loss

With the successive publication of the 2015 annual report, the “defects” of listed apparel companies can be described as unobstructed. According to statistics of wind data, at present, 16 garment companies in Shanghai and Shenzhen have disclosed their financial data in 2015, accounting for 11 net profit declines, accounting for nearly 70%.

On the evening of February 17, Meibang Fashion announced its performance report, saying that the company's operating income in 2015 was 6.285 billion yuan, a year-on-year drop of 5%; the net profit attributable to shareholders of listed companies was -4.31 billion yuan, a decrease of 396% year-on-year. China Netcom noted that this is the fourth consecutive “double downfall” of Smith Barney since 2012. The decline in net profit in the past three years was 29.55%, 49%, and 64%, respectively. The decline in profit margins is evident over the years. .

In addition to the Meibang apparel, Jialin Jie, an international mid-to-high end outdoor sports brand, also experienced a loss of 100 million yuan in 2015, and its net profit fell by 465% year-on-year. In addition, the shares of Huas, Langzi, George White, Baoxi, Zhaoxing, and Septwolves also appeared on the “2015 net profit decline” list of listed companies, and their net profits decreased compared with the same period last year. 81.02%, 37.9%, 19.55%, 7.50%, and 5.43%.

Busen shares, the main business in Hinnor is not reliable

Of course, there are also some clothing listed companies have doubled their performance. However, the China Network Finance reporter scrutinized the annual report and found that these seemingly brilliant results do not depend on the creation of the company's main business.

Take PISEN shares with a net profit increase of 111.17% year-on-year, the company's 2015 profit was 11.47 million yuan. At the end of the year, Wuzhi sold off its wholly-owned subsidiary. The profit generated from this transaction was as high as 45,338,700 yuan. The successful loss of the Hinnor, both operating income and operating profit fell during the reporting period, the company's 108 million yuan in non-operating income, derived from the sale of shops in Beijing. In 2015, cash flow generated from investment activities was 195 million yuan, an increase of 3148.07% over the same period of the previous year, which was mainly due to the amount of sales of shops in Beijing during the reporting period.

In addition, the domestic menswear industry leader Youngor, the company's net profit in 2015 reached 4.396 billion yuan, an increase of 39.01%, but it clearly stated in the announcement that profit growth on the one hand from the real estate sector, on the other hand from investment.

Local apparel companies are in a transitional phase

Since 2010, under the backdrop of overcapacity, consumption upgrades, foreign large-scale entrenched enclosures, and channel changes under the background of mobile Internet, garment companies have expanded rapidly and net profit has doubled. Industry experts stated that under the pressure of both internal and external pressures, transformation has become the path that companies must take.

Meibang Apparel also joined the team seeking transformation from 2010, but after spending a lot of manpower and material resources, it did not make substantial contribution to the performance. In December 2012, the state-of-the-art online shopping platform for the US state-of-the-business e-commerce platform was launched, but because the e-commerce discount was lower than the franchise store, internal conflicts were intensified, resulting in a further increase in company inventory. In 2013, the company launched the O2O model and fully upgraded the old shop as an O2O experience shop. However, these experience shop customers are always poor. In April 2015, Memble built its own app “Fan”. At the same time, the app also claimed the popular online variety show “Qiqi”, which cost 50 million yuan. However, as of now, the app has downloaded less than 400,000.