The income increased by 11%, the deducted non-net profit increased by 88%, the benefit gross 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 (of which 30 million is from Hubei Jiayu, which is expected to decrease in 14 years).

Expand the international fabric market, adjust the order structure and promote the increase of gross profit margin. Hubei Jiayu production expansion project will become the main driving force of performance in the next two years.

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.

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.

Its own domestic brand KR: it has been in operation for four years, with 50 stores at the end of 13 years, and its sales have increased by nearly 50% over the same period last year. However, it has invested heavily during the training period and still lost about 20 million. In 2013, KR accelerated 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. The 14-year plan to use the mobile Internet to bring opportunities, including mobile games, animation, Wechat and other new carriers and brand grafting, to speed up the construction of the Internet marketing system.

Its own international brand SN:13 year focuses on marketing and channel development, and has appeared many times in ISPO in Germany and OAGUA R in the United States. 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 makes a loss of about 10 million a year, but the loss is expected to be further reduced as registration fees decline in the past 14 years.

It involves many hot market concepts such as mobile games, free trade zone and so on.

In November, 13, the company announced that it had transferred 25.87% of the shares held by Su Xi to expand the extension of some of the company's products with the introduction of new business. The company plans to promote KR's own outdoor sports clothing brand through new carriers such as mobile games. 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.

In December 13, the company set up the free trade zone company. At present, the Neoshell fabric project is still losing money, and the industrial cloth is in the stage of market research.

The listing date of the issued shares before the initial public offering of the company is October 15, 2013, the number of shares is 146 million, accounting for 35.18% of the total share capital of the company.

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".