Zhejiang Garment Group's Core Data Of Jiangnan Clothing Group Deteriorated All The Time In The Ugly Era

The annual results released by 3306.HK today show that the performance of the designer's brand fashion group has been narrowed as a result of slower expansion and slower sales.

3306.HK fell to a maximum of 4.5% to HK $12.42 in the afternoon, closing at HK $12.7 a day, narrowing the increase to 15.7% in 2019.

In the 2019 fiscal year ending June 30th, the group's revenue rose 17.3% to 3 billion 358 million 200 thousand yuan (RMB, the same below), or less than 22.8% in the 2018 fiscal year and 22.6% in the first half of the fiscal year, which means a significant slowdown in the second half of the fiscal year.

Last year, the same store sales in offline retail stores registered a growth of 3.4%, far below the 8.9% in fiscal year 2018 and 8% in fiscal 2017. The number of new retail stores has also decreased from 240 in fiscal year 2018 to 187 during the year. As of June 30th, the total number of stores in the world was 2018, of which 578 were direct outlets.

As the growth rate plummeted, the revenue of self operated stores, which recorded a 1 billion 489 million 400 thousand yuan income, fell from 48.9% in 2018 to 44.3%. The growth channel of revenue growth increased to 1 billion 470 million yuan, almost to the scale of self operated channels. To maintain high-speed growth of online channels, revenue reached 393 million 200 thousand yuan, an increase of 240 basis points to 11.7%.

In the earnings report, the group pointed out that the change in the channel structure led to a contraction of 250 basis points to 61.2%. In fact, the gross margins of all brands and all channels show a decrease in varying degrees.

No Agency analyst Christina Ng said in a report to customers on Tuesday that it needs to be vigilant against the strength of the high-end apparel retailers, and is worried about the possible difficulties that China's business may copy.

The analyst quoted Tang Xiaotang, founder of No Agency, in a speech at the agency's customer investment day held in mid 7, saying that the Chinese middle class is being forced to stay away from aesthetics.

Jiangnan Buyi continues to follow the strategy of "fans economy", and is committed to boosting sales growth by expanding membership and enhancing membership stickiness. As of June 30th, the number of member accounts and WeChat accounts increased by 1 million 100 thousand and 1 million to 3 million 600 thousand or 2 million 500 thousand respectively over the same period last year.

The proportion of member contribution to retail sales has increased from 62.6% a year ago to about 70%. The number of active members and active WeChat members was more than 450 thousand and 430 thousand respectively, all rising by nearly 100 thousand annually.

Annual consumption accounts for more than 5000 yuan increased from 162 thousand in fiscal year 2018 to over 203 thousand. They spent more than 2 billion 400 million yuan in the south of the Yangtze River and the total retail sales exceeded 40%.

Part of the brand combination of Jiangnan cloth Garments Co., Ltd.

In the 2019 fiscal year, the group achieved a net profit of 484 million 800 thousand yuan, an increase of 18.1% over the previous year's 410 million 400 thousand yuan. The board recommended that a final dividend of HK $0.48 per share (HK $0.43) plus HK $0.32 of interim dividend be paid for the whole year. The total interest rate will be HK $415 million for the whole year, and maintain the 75% dividend payout rate in three years.

In the forecast link of the performance report, Jiangnan Buyi pointed out that with the slowdown of China's economy and consumption growth and the challenge of competition in the garment industry, the group also faced the opportunities of pursuing young people and rapid growth in their tastes, designer's brand differentiation and huge market potential.

According to the Zhejiang company, management is still confident about the future based on the group's "diversified brand combination matrix and good operation management". At the same time, it will strive to maintain and consolidate the position of China's leading brand fashion group by enhancing design innovation and R & D capability, using Internet thinking and technology, and adhering to the strategy of "fans economy" as core.