The income increased by 11%, the deducted non-net profit increased by 88%, the profit margin increased significantly, and the high distribution exceeded expectations.
In 2013, the company realized sales income of 896 million yuan, net profit of 99 million yuan and non-net profit of 71 million yuan, up 10.57%, 148.66% and 88.06% respectively over the same period last year. EPS per share is 0.24 yuan, and it is proposed to pay out 0.8 yuan (including tax) for every 10 shares, 2 shares for bonus shares (including tax), and 8 shares for conversion to capital accumulation fund, which exceeds market expectations.
The growth rate of net profit is much higher than that of income, mainly due to the sharp increase in gross profit margin, the decline in the rate of sales / management expenses and the receipt of 37 million yuan in government subsidies. The gross profit margin rose 3.8 points over the same period last year to 27.4%; the rate of sales and management expenses decreased by 0.42 and 0.18 points to 9.95% and 7.37% respectively; and the rate of financial expenses increased by 0.51 points to 0.47%.
Inventories fell 1.24 per cent to 207 million, accounts receivable increased 1.8 per cent to 96 million, and cash flow from operating activities fell 4.42 per cent from the previous year. Non-operating income was 37 million yuan, up 1042% from the same period last year, as the company received financial subsidies and incentives (of which 30 million came from Hubei Jiayu, which is expected to decrease in 14 years).
Expand the international fabric market, order structure adjustment to promote gross profit margin.
In 2013, the company not only steadily increased sales to several major customers such as icebreakers, Polartec and Kathmandu, but also expanded sales to international well-known brands such as Nike, and developed a number of new international customers, including K-Way (Italy), Mountain Equipment (UK), POC (Sweden) and so on.
The final market faced by the company's products is in the field of professional outdoor sports, which can be grouped into "necessities for middle and high-end people". 2H13 began to pick up the demand for outdoor sports accessories, and the company's new customers increased the number of high-margin products in the order structure, leading to a 3.8-point increase in gross profit margin.
The company attaches importance to technological innovation and process improvement, R & D investment accounts for 2.84% of business income Prida, to meet customer needs; 13-year new ERP project has entered the implementation stage, and strive to do a good job in fine management.
Hubei Jiayu production expansion project will become the main driving force of performance in the next two years.
After listing, the company invested 3 million meters in 11 years to reach 15 million meters in production capacity, and another 3.8 million meters in 12 years to reach 18.8 million meters / year.
In July 2011, the company announced the Nantong Hauna project, built a new high-grade fabric production and development base, and planned to expand the production capacity of 15 million meters per year. After that, due to the tedious administrative examination and approval, the company decided to adjust the Nantong production base to Hubei in July, in order to be more suitable for long-term capacity demand planning and reduce front-line staff costs. In July, the company announced that it planned to invest in a new fabric and clothing production R & D base in Jiayu, Hubei Province, with a start-up + construction period of 36 months, including the first construction period of 26 months and the second phase of 10 months, with a total investment of 401.16 million. After it is put into production, it will increase the fabric production capacity by 18 million meters per year, including sports functional fabrics, polyester pile fabrics, wool mixed fabrics and pure cotton fabrics, and increase the garment processing capacity by 6 million pieces per year.
Hubei Jiayu has completed infrastructure construction and is now starting to build a delivery room. the first phase of 15 million meters has been put into production in November 14, with an estimated contribution of 5 million meters in 15 years. The second phase is expected to start construction every 6-9 months and is expected to be put into production in June-July 15 years. After the second phase reaches production, a total of 1880 meters of production capacity will be added (an increase of 75-80%), which will be the main driver of the company's performance growth in the next two years.
Its own brands KR and SN are still losing money, and SN is expanding rapidly overseas.
It has been four years since its own domestic brand KR: it has been in operation for four years, and by the end of 13 years, it has reached 50 stores (wholly-owned stores, distributed in the golden business district or medium-and high-end shopping malls in Beijing, Shanghai, Xi'an, Shenyang, Hangzhou, Chengdu, Dalian, Harbin and other first-tier cities). Sales have increased by nearly 50% compared with the same period last year, but the investment during the training period is huge and it still loses about 20 million. In 2013, Jialinjie Sports Company, a wholly-owned subsidiary in charge of KR brand operation, accelerated its brand promotion efforts, no longer simply pursuing the coverage of direct stores and store numbers, but focusing on improving single-store sales of existing stores, while also trying to cooperate with new marketing channels such as the Internet. 14-year company plan: 1) introduce and train a professional network marketing team, use the opportunities brought by mobile Internet, and graft brands with new carriers, including mobile games, animation, Wechat, etc.; 2) attach importance to the development and preparation of offline experience libraries, and resolutely close offline stores that are difficult to break even in a short period of time. 3) actively find and explore the cultural source of the brand, set up a professional brand management team; 4) incubate a number of excellent cultural products and implant the mature and excellent cultural products into the brand and clothing industry, to support the company's long-term development strategy.
Its own international brand SN: in 2011, its positioning is slightly lower than that of KR, and its product style is fashionable, sports, natural and environmentally friendly. Over the past 13 years, it has focused on marketing and channel development, appearing many times at ISPO (European Outdoor Sports Show) in Germany and Ogamard R (American Outdoor Sports Show) in the United States, to understand the cognition and demands of major customers and channels on SN, and to obtain sufficient firsthand feedback materials through their communication with consumers, so as to guide SN product development. In August, the company announced plans to increase capital by 600000 Swiss francs (equivalent to 4 million yuan) to the holding subsidiary SN Europe subsidiary (established in July), accounting for 90% of the equity after the capital increase, expanding the company's marketing network and customer base in Europe.
SN now has 350 stores in Europe; in Australia, SN is sold in all 90 stores of REBEL, the largest sporting goods chain there; and although the Japanese and South Korean markets only started at the end of the third quarter in 13 years, expected sales for 14 years are higher than expected when they entered. SN13 still loses about 10 million a year, but the loss is expected to be further reduced in 14 years as registration fees fall (exhibition fees may remain the same, local advertising / store fees and local agents share).
The acquisition of mobile game companies, bigger and stronger Shanghai democracy, the future is expected to acquire the remaining shares.
In November, the company announced that it planned to acquire part of the equity of Shanghai Mimi Software Co., Ltd. (with a 25.87% stake of not more than 28.45 million yuan held by Su Xi), taking advantage of the introduction of new business to expand the extension of some of the company's products. The company plans to promote KR's own outdoor sports clothing brand through new carriers such as mobile games. The transfer of equity in the investment has been paid in full, and the formalities for the transfer of property rights have been completed.
Founded in 2003, Shanghai Linyi is an independent professional game developer with international standards. Its founder Su Fang once worked for KONAMI Co., Ltd. (Colome) in Japan, engaged in the development of a series of games "Live Football", and won many world game awards and recognition from the Japanese government. At present, the company has more than 260 professional game production talents, distributed in Dalian (for the European and American market), Tianjin (for the Japanese market) and Shanghai (for the domestic original market). Some of the business backbones have more than 10 years of game development experience, from famous game companies such as KONAMI (Kelome), KOEI (Glory), UBI Soft (Ubisoft) and so on. Partners include CAPCOM (Capcom), Namco BandaiGames (Nan Meng Gong Bandai), SEGA (Sega), Square, INC. ENIX (Skewell Anix), Take-Two (Qianyou), Warner Bothers Games (Warner Bros.) and other famous game manufacturers, who have participated in the development of games such as Tomb Raider, Grand Theft Auto 5, Batman's Arkham asylum and Andriod version of Sonic 4Episode II (Android version Sonic Kid 4, Chapter 2). The company is also an official developer identified by Sony Group Corp, Nintendo and Microsoft Corp, covering original mobile game development, video game collaborative development, animation production and other fields.
The cost of OEM development in Shanghai is about 6-10 million; in the future, consideration will be given to Sinicizing foreign games; one of the two fist games, "going into the three Kingdoms together" (formerly known as a handheld player, costs 800-12 million), was launched around January 20 and is in the promotion period around the Spring Festival / but the advertising space is tight, so the effect of the rollout is not yet visible; another horizontal fighting game, "Boxing World", went on sale in April. At present, the company is considering expanding the Shanghai democracy, gradually transforming from a game developer into a service provider, and will not consider buying other mobile game companies in the future.
The agreement also stipulates that if the audited net profit after tax (net profit after deducting non-recurring profit or loss) reaches or exceeds 41 million yuan in 2014, the company will continue to increase the proportion of investment. including, but not limited to, the purchase of all or part of the remaining equity held by Su Xi and Shanghai Democracy Investment Management Co., Ltd. in cash or share issue.
Set up free trade zone company, Neoshell fabric project is still losing money, industrial cloth is in the stage of market research.
On December 26th, the company's board of directors examined and passed the "proposal on setting up a wholly-owned subsidiary in China (Shanghai) Free Trade pilot Zone" with a registered capital of 120 million yuan to make use of regional policy advantages to expand the company's overseas business. at present, the company is still in the stage of industrial and commercial registration.
In October 2011, the company announced that it invested US $1.92 million to set up a joint venture company Pulante (equity 48:52) with Polartec to jointly develop new Neoshell fabrics (not only windproof, waterproof, breathable and flexible), with a design capacity of 2 million meters / year, and reached production in 2012, the products are basically used in KR stores, and the project is still in a state of loss.
In addition, the company has been conducting investigation and research on industrial fabrics, including electronics, medical and other fields. The land of Hubei Jiayu base 1Compact 3 will be reserved for industrial textiles.
Japanese shareholders reduce their holdings, involving mobile games, free trade zones and other concepts.
On August 12th, the company received the "share transfer Agreement" signed by shareholder FUNG JAPAN DEVELOPMENT Co., Ltd. (hereinafter referred to as "FJD") with Shanghai Textile Investment Management Co., Ltd., Chen Huolin and Huang Weiguo, the actual controller of the company. FJD plans to transfer 17 per cent of its shares (70.72 million shares with a lock-up period of one year after listing) by agreement, including 7 per cent of Shanghai Textile (29.12 million shares) and 5 per cent of natural persons Chen Huolin and Huang Weiguo (both 20.8 million shares). On October 24, 13, the transfer registration procedures for the agreed transfer have been completed, but they need to be locked up for six months after the transfer according to the provisions of the exchange. In addition, the listing date of the company's issued shares before the initial public offering is October 15, 2013, with a total of 146 million shares, accounting for 35.18% of the company's total share capital.
On January 10, 14, the company's controlling shareholder, Shanghai Guojun Investment Co., Ltd. (holding 93.83 million shares of unlimited tradable shares, accounting for 22.56% of the total share capital) pledged 10 million shares of the company (accounting for 2.4% of the total share capital) to Cheung Kong Securities, used for stock pledge repo trading business. The initial trading date is January 9, 2014, and the repurchase transaction date is January 9, 2015. Guojun Investment pledged a total of 79.5 million shares, accounting for 84.72% of the shares held by Guojun Investment and 19.11% of the total share capital.
In March 13, the general meeting of shareholders of the company deliberated and passed the bill on debt repayment safeguard measures for the issuance of corporate bonds. On October 28, the China Securities Regulatory Commission approved the issuance of corporate bonds with a face value of no more than 300 million yuan, which is valid for six months from the date of approval.
In March 13, the company was certified as a high-tech enterprise certificate, and the enterprise income tax was levied at a rate of 15% in 13-15 years. The income has grown steadily in 14 years and nearly 1.2 billion in 15 years, but the profit still depends on the investment of two independent brands. Long-term optimistic about the company's scientific and technological innovation capability, high-quality customer resources and diversified business development space in the future, give 14-16 years EPS0.29 yuan, 0.35yuan, 0.42yuan. Considering that the company is involved in a number of market hot concepts such as mobile games and free trade zones, it helps to push up the valuation and upgrade the rating to "overweight".