Zhejiang Semir Clothing Co., Ltd. (hereinafter referred to as “Semi Clothing”) released its 2019 annual report on the evening of April 26. During the reporting period, Semir Clothing achieved total operating revenue of approximately 19.337 billion yuan, an increase of 23.01% over the same period last year; The net profit attributable to shareholders of listed companies was 1.549 billion yuan, a year-on-year decrease of 8.52%.
As of December 31, 2019, Semir Apparel’s total assets were 16.621 billion yuan, belonging to its parent company The company’s owners have a net worth of 11.765 billion yuan.
Seima Apparel adopts a diversified marketing network development model that combines direct sales and franchises, and complements online and offline. As of December 31, 2019, the company has established 10,257 offline stores in various provinces, autonomous regions, municipalities directly under the Central Government and overseas, including 1,310 directly operated stores, 8,677 franchised stores, and 270 jointly operated stores; at the same time, the company has established a number of offline stores on Taobao, Well-known domestic e-commerce platforms such as Tmall and Vipshop have established online sales channels.
Wanlian Securities analyst Chen Wen believes that Semir Apparel has gradually begun to rebound since its revenue growth bottomed out in 2012. Judging from the performance growth rate It seems that the growth rate of the company’s net profit attributable to the parent company fluctuates greatly, mainly due to the loss of inventory depreciation. After the consolidated annual revenue growth bottomed out, it gradually began to pick up. From the perspective of performance growth, the growth rate of the company’s net profit attributable to the parent company fluctuated relatively. Large, mainly affected by inventory depreciation losses, consolidated Kidiliz, etc. The company’s revenue increased by 23.16% in 2019, mainly due to the rapid development of children’s and online businesses, as well as the merger of the French Sofiza SAS company’s 2019 operating income; the net profit fell by 8.7% year-on-year, mainly due to the impact of the acquisition and consolidation of the French Sofiza SAS company. , the merger costs incurred during the company’s acquisition last year were less than the fair value share of identifiable net assets acquired, resulting in a higher net profit base, and the company’s losses during the reporting period affected the net profit for the current period.
From observation, due to the positive impact of the gross profit margin of children’s clothing, the gross profit margin of Semir clothing has increased. In the first half of 2019, Semir’s apparel gross profit margin was 44.84%, a year-on-year increase of 6.49%. Among them, the casual wear gross profit margin increased by 2.25% year-on-year, and the children’s clothing gross profit margin increased by 7.14% year-on-year, which had a greater positive effect. Overall, the gross profit margin of Semir’s clothing and children’s clothing business is showing an increasing trend. This is mainly due to its scale advantage. With the expansion of procurement scale, the marginal cost of procurement is reduced, pushing up the company’s gross profit margin, while the casual clothing business The gross profit margin fluctuates greatly due to the impact of destocking in the fast fashion industry.
In Chen Wen’s view, although the rapid development of Semir Clothing’s children’s clothing and online business is worthy of attention, due to the impact of the epidemic in 2020, the company’s executives have experienced significant losses in the past two years. Affected by many unfavorable and uncertain factors such as shareholding reduction, high company inventory, slowdown in the growth of the casual clothing industry, etc., from this point of view, it is expected that the current situation of Semir Apparel is still unclear, and further wait and see is required.
Semir Clothing said that in 2020, it will accelerate the transformation of retail structure and the layout of omni-channel retail ecology, strengthen cash flow and financial risk control management, and further strengthen Big digital construction promotes continuous innovation of business models and operational management capabilities.
Since 2020, Semir Apparel will carry out a series of construction work around company-level core operating capabilities. On the basis of ensuring the advantages of core clothing categories, we will continue to actively explore expansion opportunities in multiple categories; establish an innovation-focused R&D model to maximize brand value and enhance user experience. At the same time, the company will continue to build and optimize the supply chain middle platform, new retail middle platform and digital operation middle platform, and promote the reform of flexible supply chain and the construction of omni-channel retail operation capabilities.
Semir Apparel will pay more attention to the health of the overall ecological development system of retailers, and is committed to improving agent profitability, channel inventory levels, and empowering retailers’ operating capabilities and omni-channel operations. Management level improved.
In terms of casual apparel business, the Semir brand will fully embrace new retail, improve the omni-channel retail strategic layout, carry out community marketing, and build private domain traffic. Shift the focus of brand promotion to online platforms, focus on promoting the marketing expansion of live broadcast platforms, establish brand live broadcast rooms, output content creativity and brand live broadcast standards, launch a hundred-city KOL plan, and empower KA customers. Continue to deepen product reform, optimize the product organizational structure, and increase the collaborative integration of offline products and online products. Increase investment in research and development, focusing on product fabric technology, functionality, and wearing experience. Continue to focus on the research and development of footwear products, seize the high-frequency life scenes and dressing needs of new youth, and provide value items that meet the needs of multiple life scenes. The research and development of footwear products are highly coordinated and integrated with clothing fabrics, style design, and matching to create Semir The ultimate DNA item.
The ongoing flexible supply chain transformation project will further expand the scope of the pilot, and the research and development of the smart store replenishment system will be launched to improve the efficiency of the store.degree of digitization and operational management and control efficiency.
In terms of children’s clothing business, the Balabala brand will integrate global cutting-edge fashion trends and design concepts through R&D offices in Shanghai, Europe and South Korea, and combine children’s psychology and aesthetic cognition to create original products. Design and lifestyle category expansion.
In terms of e-commerce business, in 2020, Semir will continue to promote the internal amoeba mechanism and external partner mechanism to stimulate the innovation and entrepreneurial potential of all employees; continue to promote Informatization construction, upgrading existing ERP and OMS systems, further leveraging the cost-reducing and efficiency-increasing functions of information technology in business, and improving data decision-making efficiency are key tasks to continuously enhance the competitiveness of e-commerce business.
The reporter checked the financial report and learned that up to now, Semir Apparel has built industrial parks in Wenzhou, Shanghai, Hangzhou, Jiaxing and other places, with a total investment of 2.567 billion yuan, mainly responsible for office, warehousing and Employee accommodation, life and other functions. In January 2019, Semir Clothing established an overseas business center to coordinate and promote the layout and development of Semir and Balabala brands in the international market. By the end of the year, the two brands had opened 30 independent stores and counters in mainstream shopping malls and department stores in Saudi Arabia, Mongolia, Indonesia and other countries.
As of the end of 2019, Semir Clothing has opened a total of 14 overseas stores, with a retail sales volume of 30 million in 2019, developing overseas The channel specializes in products to meet the needs of overseas markets for special festivals and climate wear. At present, the average output per square meter of overseas stores is higher than that of domestic stores, providing new ideas and practical operational experience for domestic channel product mix.
Public information shows that Semir Clothing was founded in 2002. It is a company characterized by virtual operations and specializes in casual clothing, children’s An enterprise group whose main products are apparel, it owns two major brand clusters: adult casual apparel represented by Semir brand and children’s apparel represented by Balabala brand. The Semir brand was founded in 1996. It is positioned as a popular daily life brand focusing on casual clothing, and provides high-quality, good-looking, friendly clothing and products needed for daily life to the mass consumers aged 18-35. and service. The Balabala brand was founded in 2002, advocating professionalism, fashion and vitality, targeting children aged 0-14 years old, and positioning its products for middle-income and well-off families. </p
