Lining Half Profit 85% Lower Expected Early Warning Annual Loss

August 23rd, it is reported that Lining The stock is too high. In order to save the country, Lining, the founder of the fund, was introduced into the fund TPG earlier. But he still failed to reverse the situation. In the first half of the year, net profit fell 84.9% to 44 million 290 thousand yuan, and no dividends were paid. The net profit was far from expected, and the business in the second half of the year deteriorated further.

Management in June predicted that the net profit of the whole year was retrogressive, and now it has changed its tone. It is expected to record losses for the whole year, and for the first time since 2004, it has recorded a full year loss.

Similarly, China is also subject to excessive inventory and repurchase of inventory from dealers. (0.76,0.05,7.04%, real time quotes) (3818), net profit in the first half of the year has fallen 56.9% to 97 million yuan, and the dividend payout ratio is still 70%, with a total dividend of 1.23 cents in the interim dividend.

Lining recorded a net profit of only 44 million 290 thousand yuan in the first half, returning to the level of the first half of 2005, gross profit margin fell 3.1 percentage points to 44.2% during the first half of the year, and the operating interest rate dropped 5.6 percentage points to 4.7%. The company said that in order to ease the pressure on terminal retailers, it would speed up inventory clearance, reduce shipments and repurchase inventories, and increase factory stores and discount stores to speed up inventory turnover.

During the period, the company recovered part of the dealer inventory, weak orders growth, inventory balance, receivable Trade The balance of funds increased and the provision for assets impairment increased greatly, which increased the administrative expenditure by 2 hundred points.

It is worth noting that the provision for bad debts was 61 million 220 thousand yuan in the first half of the year, 4 times higher than the end of the year, the increase in accounts receivable turnover days, the longer cash turnover days, the greater impact on the operating cash flow, and the net cash flow from operating activities outflows 600 million yuan. In addition, the second half of the year London Olympic Games The promotion and publicity expenses of these events and the sponsorship of the China Men's basketball professional tournament have increased the number of advertising and publicity clubs throughout the year, accounting for about 13% of the revenue in the first half.

Analysts said Lining introduced the fund TPG earlier, the company wanted to speed up the reform, but the recovery process was slower than expected, and the pace of digestion was not as fast as market expectations.

Another sporting goods unit, China's trend, saw a decline in gross margin in the first half, down 11.1 percentage points to 50.2%, and operating profit margin fell 17.1 percentage points to 6.4%. The company explained that the industry was overstock, the competition was fierce and the discount was increased, and the reduction of dealer orders was greatly reduced. Stock repurchase increased by 179 days to 304 days due to stock repurchase.

In the first half of the year, the average selling price of footwear decreased by 17% to 112 yuan, and sales decreased by 31.9%. clothing The average selling price dropped by 8.2% to 166 yuan, and sales decreased by 43.3%. At the same time, the company reduced 569 stores to 2550, and streamlined its staff and structure. It is expected that administrative expenses and distribution costs will be reflected in the second half of the year.