In the first three quarters, the net profit of the company increased by 109.22% year-on-year, and the apparel business declined.

The local leisure wear leading company searched on the evening of October 29th to release the 2017-September 2017 results announcement. During the reporting period, the operating income was 12.577 billion yuan, an increase of 212.34%, and the net profit was 541 million yuan, an increase of 109.22%. .

The local leisure wear leading enterprise - Soute Special Group Co., Ltd. (hereinafter referred to as "Search Special"), released the 2017-September 2017 results announcement on the evening of October 29, the data shows that during the reporting period, the search was implemented Operating income was 12.577 billion yuan, an increase of 212.34% compared with the same period of the previous year. The net profit attributable to shareholders of listed companies was 541 million yuan, an increase of 109.22% compared with the same period of the previous year. The basic earnings per share is 0.06 yuan / share.

In the third quarter of this year, the company’s operating income was 6.017 billion yuan, an increase of 245.85% compared with the same period of the previous year. The net profit attributable to shareholders of listed companies was 180 million yuan, an increase of 140.85% compared with the same period of the previous year. .

For the rapid growth of the company's operating income in the first three quarters, the search explained that the rapid growth of the supply chain management business during the reporting period led to a substantial increase in operating income, but the company's branded apparel business continued to decline, while the increase in net profit was mainly reported. The increase in operating income during the period.

During the reporting period, the total assets of the company were 9.963 billion yuan, an increase of 38.48% compared with the same period of the previous year.

Soute also disclosed the 2017 performance forecast. It is estimated that the company's full-year net profit for 2017 will be 597 million yuan to 778 million yuan, compared with 362 million yuan in the same period of last year, an increase of 65% to 115%. The company said that the above predictions are based on the following reasons: The company's supply chain management business and brand management business have developed rapidly, which has led to a substantial increase in performance.

The reporter learned in the interview here that the industry insiders said that the clothing business is a traditional business of search, specializing in the front line of brand trend, investing in Huimei fashion, cross-border e-commerce Larami, transforming into a comprehensive clothing retail enterprise, for clothing The continued rise in business revenue provides the driving force. At present, the clothing business consists of three parts: elegant ladies, campus leisure and fashion business. It is estimated that the operating income of the search for special clothing business will increase by 9.27%, 9.94%, 9.9%, and the gross profit margin will be 43% in 2017-2019. Due to the current layout supply chain management business, it is estimated that the proportion of apparel business revenue to total revenue will decrease slightly, and it is expected to account for less than 10% from 2018.

The public information shows that the search for the special supply chain management business mainly involves the following aspects: First, centralized procurement, using the company's advantages in procurement, warehousing and distribution to provide customers with cotton yarn, fabrics and other raw materials procurement services (including cotton yarn in 2016 accounted for more than 83%), and use the scale advantage to earn the difference; Second, provide design and development services, use the headquarters 300+ people design and development team and independent raw material research and development center to provide raw materials information, cost analysis, trend analysis and other services; third is procurement Planning: Tailor-made procurement solutions for customers and optimize their internal capital turnover.

The specific business development form is the search for a special subsidiary company, Dongguan Yute Supply Chain Management Co., Ltd., which is a wholly-owned subsidiary. It has invested in setting up a number of holding project subsidiaries (accounting for 51%) and attracting them in the form of joint equity. Participate in local partners with supply chain and market resources. Since its launch in August 2015, it has had nine holding-type supply chain subsidiaries, which are located in major textile and garment production regions across the country. The company has set up a scale of 800-1.2 billion yuan for each subsidiary. Subsidiaries such as Lianhe and Guangzhou Jiyat have developed rapidly.

At present, the number of customers searching for special supply chain management business is about 1,000, and about 500 cooperative suppliers. In 2015/2016, the revenue from this business was 1.97/43.24 billion yuan, which was growing rapidly. Since the company's procurement of raw materials can have a 10% difference compared with other purchasers, this business can save customers 2%-6% of procurement costs. And optimize the procurement process, while the company's gross profit margin is around 7%. In 2016, the gross profit margin/net profit margin of the business reached 7.7%/3.9% and the net profit reached 170 million yuan.

The reporter learned that Sohu officially proposed the strategy of “upgrading the integrated service provider of fashion life industry” in 2015, and formulated a strategic plan for the development of value-added services in the fashion life industry. This strategy consists of three major business segments: supply chain management, brand management and the Internet. Sohu plans to invest 6-10 billion yuan in the next three years (2015-2018), using the resources and investment layout of the company in the fashion industry to supply chain management, brand management and supply chain. With the core of financial business, it vigorously develops into various value-added service fields of the fashion life industry, providing comprehensive and multi-level value-added services for all links of the industry chain. Through the implementation of "2+1 industry strategic layout", that is, through the "fashion intelligence network", "search network" and big data platform business layout, the company will become a leading integrated lifestyle service provider.

According to the reporter, Sun Yi, the deputy director of the search for investor relations, revealed in an internal meeting held in Shanghai in mid-October that in 2017, the brand reshuffle of various brands intensified, the terminal consumption continued to be weak, and the search for special efforts to maintain “ Trend frontline brand sales performance, vigorously develop supply chain management business, give full play to the advantages of centralized procurement, R&D design, procurement planning, improve warehousing and distribution services, create an online and offline integrated supply chain management service system, and improve the functions of B2B platform. Digging deep into the potential of supply chain financial services.

Regarding the progress of the B2B platform in the supply chain, Sun Wei introduced that the company's newly established wholly-owned subsidiary in Dongguan, Dongguan Yutu Information Technology Co., Ltd. is fully committed to promoting the construction of the B2B supply chain service platform. Orderly advancement. He further mentioned that Search's supply chain management business model has significant advantages. Through centralized procurement, providing value-added services such as R&D design and procurement planning, it can win upstream preferential purchase prices and benefit downstream customers. The downstream enterprises provide new products, new styles, and core services of R&D and design such as cost analysis and popular information to enhance the competitiveness of upstream and downstream enterprises, and promote the transformation of customers to refined management and improve operational efficiency. In its view, Search has a financial advantage, through the injection of funds, effectively alleviating the financial situation, through timely payment to obtain more favorable purchase prices, and to benefit downstream customers, breaking the original balance of the market, attracting more With a large number of downstream customers, the business scale has grown rapidly, significantly exceeding the original estimated annual revenue of 8.1 billion to 1.2 billion yuan for each supply chain management subsidiary. With the gradual increase of the company's business scale, the influence of Search Special will be further enhanced, which will attract more customers, suppliers and potential partners to participate.

Editor in charge: Wang Zhen