Semir Clothing Seems To Be Getting More And More Serious.

Semir clothing seems to be increasingly "out of business", trying to extend its reach to more areas, such as mother and baby products, cosmetics, hygiene products, respirators and so on. At this node, why is Semir's clothing diversified across the border?

Recently, Semir clothing announced that the company will increase retail sales of daily necessities, wholesale of daily necessities, retail of personal hygiene products, wholesalers wholesale, retail of mother and baby products, and daily masks (non medical) sales in its original business scope.

Ma Gang, a clothing industry expert, told the China daily business reporter that Semir clothing expanded the business of maternal and infant products, extending it to a lower age group and more subdivided areas, which helps the company focus on the layout of children's industry, further enrich the product matrix, and strengthen its overall competitiveness in the children's industry.

At the same time, Semir clothing crossover into the sanitary products industry is the market demand orientation. At present, affected by the new crown pneumonia epidemic situation, many garment industry cross boundary production masks, protective clothing and other sanitary supplies, including Bosideng, YOUNGOR, and Hong Kong stock.

In February 10th, Semir apparel dongmi answered the question of investors, saying that the company had not yet built a mask and protective clothing production line. At present, the market structure of health products industry is not yet clear. Whether the health products business can become a long-term business unit of Semir clothing remains to be seen.

Reporters noted that in addition to the main business casual wear and children's clothing, Semir's clothing business scope also includes arts and crafts (except gold and silver), paper products, stationery (excluding dangerous goods), teaching models and teaching aids manufacturing and sales; cosmetics sales; indoor and outdoor decoration (with qualification management). Financial data show that the business accounted for less than 1% of revenue, and no specific information was disclosed. The reporter contacted Semir store's Secretaries' office on relevant issues. As of press release, no reply has yet been received.

In February 28th, Semir apparel released a performance bulletin. Data show that last year, the company achieved operating income of 19 billion 359 million yuan, an increase of 23.15% over the same period last year, and net profit of 1 billion 546 million yuan, down 8.72% from the same period last year.

Semir apparel said that revenue growth benefited from the rapid growth of children's business and e-commerce business. At the same time, net profit decline was mainly due to the completion of the acquisition of the French high-end children's clothing brand Kidiliz in 2018. The subsidiary company made the net profit base higher, and the loss of the company's current reporting period affected the net profit of Senma.

In May 2018, Semir apparel purchased Kidiliz for its 110 million yuan with its own funds to accelerate the development of children's clothing business, and realized the strategic layout in the high-end field of children's wear. Financial data show that Kidiliz has not yet made a significant contribution to Semir's apparel performance.

At present, Kidiliz still belongs to the combing business stage, and it takes some time to merge after merger and acquisition.

The CITIC Securities Research Report shows that Semir's clothing revenue and net profit have been increased. At the same time, the inventory turnover days of the company were further reduced and cash flow continued to improve.