In The Same Period Last Year, 400 Million Of The Search Results Were Cut, And The Net Profit Fell By Over 40% Due To Weak Demand.

Limited by Share Ltd (hereinafter referred to as "search special") released the first half of 2019 performance notice in the evening of July 12th. It is estimated that the net profit attributable to shareholders of listed companies is 171 million yuan -2.57 billion yuan, down by 40%-60% compared with the same period last year, and the net profit was 429 million yuan in the same period last year.

As for the reasons for the decline in performance, the company explained that as the trade friction and market demand were weak, the company continued to slow down the development of supply chain management business during the reporting period, resulting in a larger decrease in supply chain management business than in the same period last year. During the reporting period, the prices of raw materials such as cotton and cotton yarns dropped, and the level of gross profit margin in supply chain management decreased.

First textile network reporter here in an interview that the industry insiders said that this year, the prices of raw materials in some textile industries have risen sharply, which has caused some pressure on the profitability of enterprises. Especially in the case of low gross profit margins and net interest rates of textile itself, the continued sharp rise in prices of raw materials will inhibit the profit growth of manufacturing enterprises. As for the search engine, with the expansion of the company's business scale, the growth of retail terminal and the management of supply chain brand will face new challenges. If the management level can not support the company's sustainable development speed, it can lead to a series of risks, which will adversely affect the company's brand image and business performance.

Guo Haiyan, an analyst at CICC, believes that at present, the search for special supply chain management business has dominated the traditional clothing business. However, since the three quarter of 2018, in order to adapt to the changes in the market environment, it has optimized the supply chain business mode, adjusted the development speed of its supply chain business, and slowed down the supply chain business. On the basis of this, it superimposed the macro environmental changes in the four quarter of 2018, making the current main business less than expected.

The first textile network reporter learned from the special side that the partners of its supply chain management subsidiaries have many years of experience in the industry and have a leading influence in the local market. They have a certain scale of business, and there are hundreds of millions of businesses with about one billion years of revenue. Cooperative shareholders are distributed across the country's major textile and garment industrial clusters, and the company is working together with the new supply chain management companies. From the perspective of their cooperation, they find that in order to give full play to the advantages of the original team of the cooperative shareholders, they do not choose the way of merger and acquisition. Instead, they choose to cooperate with the new company, and jointly establish the supply chain management company. The cooperative shareholders have the advantages of business resources and industry experience, but there is often a shortage of funds. They need to bear a high cost of financing. They have the advantages of capital, R & D, procurement planning, etc., and through the partners to import the existing business resources into the newly established supply chain management companies, we complement each other and jointly develop the new supply chain management company. The newly established supply chain management subsidiary owns more than 51% shareholding, absolute holding and cooperative shareholder participation.

Since 2018, there are 12 supply chain management subsidiaries in Guangdong, Dongguan, Zengcheng, Foshan, Hubei Jingmen, Jingzhou, Jiangsu, Wujiang, Nantong, Nantong, Nantong and so on. At present, search is focused on R & D design, providing new products for upstream and downstream customers, focusing on centralized procurement and improving business models, strengthening management, controlling risks, expanding business scope, providing efficient and low-cost value-added services, promoting stable development of supply chain management business, and providing solid support for the steady growth of company revenues and profits.