What Happened To Last Year'S Revenue And Net Profit?

The famous underwear brand, Sha Sha shares, has disclosed its annual report, with both revenues and net profits dropping.

In the evening of April 29th, the company announced its annual report for 2019. The company's operating income was 331 million yuan, down 14.59% compared to the same period last year. Net profit (the net profit attributable to shareholders of listed companies) was 15 million 838 thousand and 200 yuan, down 45.69% compared with the same period last year. It is worth mentioning that the company accounts for a relatively large increase in bra sales, but this does not mean that the market boom of the industry is very high.

The most authentic lingerie shares of women's shares declined in 2019, compared with the same period in the first quarter of this year, down 83.33%.

The decline in underwear stocks is related to the slowdown in the industry as a whole. According to Euromonitor data, the growth rate of the lingerie market in 2022 was only 3.9%, slowing down significantly.

Bra sales increased year by year

In the evening of April 29th, the company announced its annual report for 2019, and its operating income and net profit dropped sharply compared with the same period last year.

In 2019, the operating income of the company was 331 million yuan, down 14.59% compared with the same period last year, and net profit was 15 million 838 thousand and 200 yuan, down 45.69% compared with the same period last year. After deducting the non recurring gains and losses, the net profit of the shares was 8 million 880 thousand yuan, down 61.71% compared with the same period last year.

It is worth mentioning that this is also the first time since 2016 that the company has seen a double drop in revenue and net profit, and the drop is quite large. After all, in 2018, the company's revenue and net profit grew by two digits.

Reporters noticed that fewer people bought Lingsha's underwear and shorts, but more people bought bras. Last year, sales of Lingsha's bra sales increased by 73.54% over the same period last year, while sales of underwear and shorts dropped by 18.61% and 5.72% respectively.

But even if bra sales are growing against the trend, Lingsha's underwear and shorts are the main source of revenue. The sales revenue of these two parts dropped year by year, and underwear sales achieved 110 million yuan, down 29.6% compared with the same period last year. The sales of shorts reached 170 million yuan, down 5.25% from the same period. In fact, the gross profit margin of the products of the company is not high, and the gross profit margin of these two businesses also fell year by year.

It is worth mentioning that the business of OEM is the main business of the company. Sluggish performance and declining share prices, the market value of the shares is only 1 billion 335 million yuan.

For the shareholders, the annual report of the last year has delivered a good news -- cash dividends. According to the dividend plan of the annual report of 2019, the company intends to send 10 yuan to 1 yuan (including tax). It was once regarded as a A share "Rooster Chicken". It has been creating a record of not paying cash dividends for 20 consecutive years. However, according to the dividend scheme of the shares, the dividend yield is less than 1%, but it is better than nothing.

Underwear stocks fell significantly

It is not hard to find that the bra business of the Sha Sha shares has grown against the trend, and the growth rate is very high. Does that mean that the bra market last year performed well? Not always.

Earlier, Lin Chiling's rejoice shares also disclosed the 2019 annual report, although the company's operating income grew, but the net profit has also declined. Compared to the 2019 semi annual report, the gross profit margin of Hui Jie shares bra also declined slightly.

The most affected is the first quarter of this year, Hui Jie shares operating income fell 35.57% year-on-year, net profit fell 83.33% year-on-year.

Reporters noted that the growth of women's underwear market has dropped significantly. According to Euromonitor data, the growth rate of women's underwear market was close to 16% in 2011, but by 2017, this growth rate was only 8%. According to Euromonitor's prediction, the growth rate of the lingerie market in 2022 was only 3.9%.

The most disastrous is the urban beauty of Hong Kong stock listed companies. Its annual report in 2019 shows that the operating income in the period dropped nearly 20% to about 4 billion 80 million yuan, but the loss was more than 1 billion yuan.

Whether it is the urban beauty of Hong Kong stocks or the shares of A shares and Rex shares, the share price is also declining due to its performance.

However, Hui Jie shares are not pessimistic about underwear bra market. In its 2019 annual report, it said that the expansion of underwear demand and the upgrading of consumption will promote the growth of China's underwear market demand in the future.

In April 29th, the Sha Sha stock exchange closed at 13.73 yuan / share, a slight drop of 0.72%.