Is The Tide Front Selling Poorly? Search For Net Profit In 2019

Compared to the same period, it dropped by 29.99%.
China service network February 21st news, search group Limited by Share Ltd (002503.SZ) today officially released 2019 annual performance bulletin. According to the preliminary accounting data, during the reporting period, during the special reporting period, the company achieved a total revenue of 12 billion 964 million 846 thousand and 400 yuan, down 29.99% from the same period last year, and realized operating profit of 430 million 117 thousand and 200 yuan, down 32.50% from the same period last year. The total profit realized was 431 million 117 thousand and 400 yuan, down 32.36% compared with the same period last year.
For the obvious changes in performance last year, the group gave two major reasons: first, the macroeconomic environment of the 2019 year has been greatly affected by garment enterprises, resulting in great pressure on the supply chain and personnel costs. The supply chain management business has declined compared with the same period last year.
Secondly, the Shaoxing Xing Lian Supply Chain Management Co., Ltd. was changed from a controlling subsidiary company to a joint venture company. In October 2018, it was no longer included in the scope of company merger. The company achieved a business income of 2 billion 600 million yuan in 2018 1-9.

　　 15 years of ups and downs?
Search is mainly engaged in brand clothing operation, supply chain management, brand management and other businesses, and strive to build an integrated service system to serve the fashion life industry upstream and downstream enterprises, and build the company into the leading service provider of fashion life industry in China.
In the fifteen years since the establishment of the group, it has gone hand in hand with other garment enterprises, but in the past two years, it has obviously started to lag behind in the visibility and performance, and the casual wear is not good enough, so that the supply chain life is not as good as expected. Especially since 2013, the impact of the downturn in the clothing industry has begun to decline, and the annual profit growth rate has slowed down. In the year 2014, net profit attributable to shareholders of listed companies decreased by 55.18% compared with the previous year, and total business revenue decreased by 24.86% compared with the previous year.
To take the strategic transformation in 2015, 2016 and 2017, and make use of years of resource accumulation and experience advantage to provide efficient and low-cost supply chain management services for customers and businesses in the upstream and downstream of the textile and garment industry. Thanks to the strengthening of supply chain management and the reduction of inventory pressure, the total operating revenue has improved significantly, especially in 2016, the net profit increased by 86.77% over the previous year, and the supply chain management business increased steadily. By 2017, it could occupy 80% of the company's total revenue.
In 2018, search began to decline, net profit fell 36.06% compared with the same period last year, ranking behind Anta. Not only is the overall environment affected, but prices of raw materials in some textile industries have risen sharply and are under pressure from inventory. In addition, before the rapid growth of supply chain management business sector gross margin level also declined.

　 Under the epidemic situation, 200 million yuan "masks".
In January of 2020, affected by the epidemic and other factors, other clothing brands in China were hit. The decline in sales volume is nothing new. Even the industry giants Adidas and NIKE were also attacked by the foundry supply chain behind them, coupled with a crisis of cut off traffic. At present, most domestic brands rely on offline sales, and the heavy store rental costs in terminal sales also need to be borne, and the accumulation of inventory will lead to the interruption of cash flow.
In order to solve the urgent problem, the group announced in the evening of February 11th that the company intends to invest 200 million yuan in its own capital to set up a wholly owned subsidiary, Dongguan search special medical supplies Co., Ltd. The announcement shows that the new subsidiary company has formulated its business scope, including research and development, production and sale: medical sanitary masks, protective clothing, gauze, non-woven fabrics, general labor insurance supplies, hygiene products, paper products, wet tissues and raw materials, medical devices and related products, chemical raw materials and chemical products.
In addition, the company's wholly-owned subsidiary of Dongguan search special medical supplies Co., Ltd. is now doing all the preparatory work in an active and orderly manner. It is expected to be put into production in the first half of March. The company's investment in medical supplies industry is not only to actively participate in epidemic prevention and control, but also an important layout of the company based on long-term strategic development, and will operate as a long-term investment project.
In addition to expanding more sales channels, the group has to meet the needs of diversified consumer clothing, especially for younger generation of consumers.
The epidemic is now stimulating many R & D projects in enterprises, which will also contribute to the development of enterprises in the future. We also expect the garment industry to usher in explosive growth after the end of the epidemic.