Two Major Projects Were Put Into Operation To Enhance Scale Advantage, And The Revenue Of RAX, The Independent Brand, Soared

According to the 2012 annual report of Taiya, during the period, the company realized an operating revenue of 339 million yuan, a year-on-year decrease of 13.48%, mainly because customers adopted the order mode of multiple varieties and small batch. The decline in the number of single orders led to the reduction of the company's capacity utilization rate, and the decline in the price of raw materials led to the corresponding decline in product prices. The absolute amount of operating costs decreased correspondingly due to the decrease of revenue, with 263 million yuan in the whole year, a year-on-year decrease of 14.11%. The net profit attributable to shareholders of the listed company was 62.6454 million yuan, up 57.86% year on year, mainly because the subsidiary Anqing Taiya received a large amount of government subsidies.

　 The top five customers account for 66.92% of sales

Taiya is the largest sport in Quanzhou shoes Sole enterprise, which has established a marketing network centered on Quanzhou, and its main customer group is well-known domestic sports brands. Compared with ordinary enterprises, brand sports shoe enterprises pay more attention to product quality and style, have higher requirements on the functionality and design of soles, and are willing to pay higher costs, which lays the foundation for the company's higher gross profit margin.

During the period, the company's manufacturing revenue was 327 million yuan, down 16.45% year on year; The gross profit rate was 22.02%, up 0.01% year on year; The revenue of wholesale and retail industry was 11.57 million yuan, up 5734.66% year on year; The gross profit rate was 39.04%, down 14.06% year on year. EVA sole revenue was 221 million yuan, down 14.69% year on year; The gross profit rate was 21.33%, a year-on-year decrease of 0.02%. PH sole revenue was 91.4245 million yuan, down 14.11% year on year; The gross profit margin was 23.79%, down 0.6% year on year. The revenue of PU sole was 13.95 million yuan, down 30.39% year on year; The gross profit rate was 21.44%, up 1.3% year on year.

In 2012, Tebu was the company's largest customer, with sales of 84813031.14 yuan, accounting for 25% of the company's annual total sales; Hongxing Erke ranked second with sales volume of 65025691.08 yuan, accounting for 19.17%; Antapax ranked third with sales of 35602226.96 yuan, accounting for 10.49%; Jinlaike ranked fourth with sales of 23468801.48 yuan, accounting for 6.92%; Guirenniao ranked fifth with sales of 18127786.32 yuan, accounting for 5.34%. These five customers together accounted for 66.92% of the company's total sales in 2012. However, it should be noted that the company is the designated sole supplier of Tebu and Anta processing plants, and has independently signed contracts and settled accounts with these processing plants. Therefore, the sales to the processing plants are not included in the sales statistics of Anta and Tebu.

The company has always focused on R&D investment, and has been listed as a development partner supplier by Anta, Tebu, Hongxingerke, Delhui, etc. During the period, the R&D investment was 13272785.24 yuan, accounting for 3.91% of the revenue. New R&D projects include injection foaming rubber soles, high modulus rubber sports soles, T-RB special rubber soles, oil resistant and anti-static rubber sports soles, etc. During the period, the company obtained seven national invention patents and one utility model patent, and applied for three invention patents and six utility model patents, which have been accepted.

Taiya shares said that the company will continue to improve its product innovation and research and development capabilities. On the basis of improving the quality of the original products, it will focus on developing various functional and environment-friendly soles to enhance market competitiveness and improve the company's profitability.

　 Two major projects are put into operation to improve scale advantages

As a supporting enterprise serving brand sports enterprises, production capacity is crucial. The company's fund-raising project "20 million pairs of sneaker soles per year project" and the "20 million pairs of sneaker soles per year project of Anta Industrial Park" invested with over raised funds are the company's business plans to achieve its development strategy.

Anqing Taiya Project, with a total investment of 164 million yuan, is located in Anta Industrial Park, Anqing City, Anhui Province. It has been basically completed within the period, and was put into production in April 2013. The project mainly provides Anta with supporting production of soles. The production capacity is expected to reach 10 million pairs in that year, 15 million pairs in 2014 and 20 million pairs in 2015.

The total investment of Hui'an Project is 132 million yuan, which is an EVA and PH sole production line with an annual output of 20 million pairs. EVA and PH are the most mature application materials for sports soles. At present, there is no new material that can replace EVA and PH, especially PH soles, because of its excellent cushioning, lightweight, good elasticity and other better performance, have gradually increased its application proportion in brand sports shoes.

Due to the influence of the planned route of Quanzhou Bay Sea Crossing Bridge Project, the project was rebuilt. After obtaining the land in Fujian Taifeng, it will be put into construction immediately, and about 70% of the work has been completed at the end of the period. Due to the delay of project progress, Fujian Taifeng could not be put into production as planned. Fujian Taifeng started to purchase some equipment in October 2012, temporarily borrowed some sites from the company and its subsidiary Jinjiang Taiya, and started production in January 2013. This part of newly increased capacity is mainly consumed by the company's key customers, such as Anta, Tebu, Hongxingerke, Guirenniao, Jinlaike, Delhui, 361 °, and its procurement proportion still has room for growth; In addition, brands such as Hilton, Peak, Jordan, etc. have a lot of room to increase orders in the future.

With the commissioning of two "20 million pairs of sneaker soles per year" projects, the gradual release of the company's production capacity will make its scale advantage more obvious, and the company's sales scale will achieve greater growth.

Taiya shares said that with the decline of the stimulation of the 2008 Olympic Games on domestic sporting goods brands and the crazy expansion of sports enterprises for three years, problems such as the decline of single store profits and high inventory in 2012 emerged, and the growth of the industry further slowed down. Next, the company will give full play to the advantages of R&D, design and high-quality customers, strengthen strategic cooperation with high-quality customers, and occupy a larger market share; Maintain the stable development of EVA and PH sole products, and improve their market share and competitiveness; We will meticulously implement investment projects with raised funds and over raised funds, and consolidate our leading position in the sports shoe soles industry by means of capacity expansion, new product research and development, introduction and training of talents, market development, improvement of organizational structure and management efficiency.

First Pioneer pointed out that after the rapid growth of the sports brand industry in the past few years, it is now entering the platform integration period, and the industry pattern integration and brand concentration improvement are inevitable. With the launch of two fund-raising projects, the company's product technology content has further improved, its scale advantage has become more obvious, and its strong alliance with Anta has further improved the company's competitiveness and leadership in the sports soles industry, which is expected to become an integrator in the sports soles industry.

　 Revenue of micro outdoor independent brand RAX soared

Taiya not only wants to be a leader in the sports sole industry, but also wants to directly participate in the retail brand competition.

In July 2011, it invested 30 million yuan to establish a wholly-owned subsidiary, Xiamen Ruihang E-commerce Co., Ltd., and established the outdoor brand RAX. In December 2011, the product was officially launched to the market through online platforms such as Jingdong Mall and Taobao. The revenue of the year was 198300 yuan and the loss was 2025200 yuan.

RAX currently focuses on the brand concept of "light travel, micro outdoor". After more than a year of development, it has formed a relatively stable sales channel in 2012, striving to improve the design level, expand the product breadth, and implement the fast supply chain model, effectively reducing the risk of shortage, code breakage or inventory backlog in the sales process. In 2012, its revenue was 11.5524 million yuan, up 5735.02% year on year; The gross profit rate was 39.02%, down 14.08% year on year.

Taiya shares said that as the traditional sporting goods industry has entered the adjustment stage, more and more sporting goods companies have locked their development direction in the outdoor goods industry and are ready to compete with professional outdoor brands, making the local outdoor goods market extremely competitive. With the influx of more and more sports brands, the outdoor concept will be understood by more consumers, and the overall industry will continue to heat up.

The company will strengthen the construction of outdoor sports brands, carry out an online retail model focusing on "online retail self support+online distribution channels", and build RAX brand into "the first brand of micro outdoor" by virtue of the company's strong sole manufacturing, research and development capabilities and the regional advantages of Fujian's whole shoe processing, and by reaching deep partnerships with various platform channel distribution websites 。

First Pioneer pointed out that the company has set foot in brand operation, terminal retail channel management and e-commerce operation for the first time, and it is expected to find out more successful operation experience and talent team within three years, so RAX can hardly make performance contributions in the short term.