Will Jiangnan Cloth Revenue Growth Slow Down Or Abandon New Brands?

In March 19th, Jiangnan Buyi (03306) released the 2019/20 financial year interim report.

According to the bulletin, the total revenue of Jiangnan cloth was RMB 2 billion 136 million yuan (the same below), an increase of 5.3% over the same period last year, and the profit attributable to shareholders was 430 million yuan, an increase of 12.87% over the same period last year.

Jiangnan Buyi thinks that the increase in income is mainly due to the upgrading of retail network and the continuous rise of online channel revenue.

　　 Member growth slowed in the first half of fiscal year 70% contribution from member sales

Jiangnan Buyi pointed out that in the first half of the fiscal year 2020, the growth rate of the first half of the fiscal year was 0.5% higher than that of the same store.

According to the announcement, as of December 31, 2019, there were more than 3 million 900 thousand member accounts in the south of the Yangtze River (including the number of members in June 30, 2019), which accounted for 3 million 600 thousand of the total number of accounts in December 31, 2019. Among them, the number of WeChat accounts was 3 million 500 thousand (3 million 100 thousand in June 30, 2019).

In the first half of fiscal year 2020, the proportion of retail sales contributed by members to retail sales amounted to about 7.

The number of active members rose from 390 thousand in 2018 to 470 thousand in 2019, of which WeChat active members rose from 370 thousand in 2018 to 450 thousand in 2019.

The total number of member accounts with a total purchase amount of more than 5000 yuan increased from 180 thousand in 2018 to 210 thousand in 2019, and its total consumption amounted to 2 billion 500 million yuan, contributing to more than 40% retail sales.

　　 JNBY accounted for 57.1% of total revenue, and emerging brands accounted for at least 0.1%.

According to the announcement, the revenue of the mature brand JNBY increased from 5.4% to 1 billion 218 million yuan in the first half fiscal year, accounting for 57.1% of the total revenue.

Growth brand CROQUIS (sketch), JNBY by JNBY, less account for 40.6% of the total, of which JNBY by JNBY grew the fastest, up 15.7% to 330 million yuan over the same period, 6.4% yuan to 376 million yuan in the sketch, and 7.3% to 162 million yuan in less.

Emerging brands POMME DE POMME (Peng MA), JNBYHOME, SAMO, REVERB, LASU MIN SOLA, A PERSONAL PERSONAL 73 accounted for 2.3% of total revenue.

　　 Increasing mature brand stores to cut new brand stores

According to the earnings report, there were 1993 stores in the reporting period, while half a year ago, the number was 2018, and the main brands were growth brands and emerging brands.

In addition to the increase in JNBY and less and PERSONAL NOTE 73 stores, the number of other brand stores is decreasing.

Within half a year, the number of CROQUIS (sketches) stores decreased by 6, JNBY by JNBY decreased by 34, POMME DE POMME (Peng MA) reduced by 19, SAMO reduced by 8, REVERB reduced by 16, LASU MIN MIN reduced by 2.