Local Sports Brands Announce Interim Results In 2016

Since the second half of the year

The interim results report was released in 2016.

Take Lining as an example, founder Lining returned in 2015.

The company helped the company turn a profit last year.

According to the interim report, Li Ning Co's rebound is still strong.

In the first half of 2016, Li Ning Co's revenue was 3 billion 596 million yuan, and its net profit was 113 million yuan.

In the first half of 2016, Lining realized sales income of 3 billion 600 million yuan (excluding red double happiness), an increase of 12.8% over the same period last year.

Gross profit margin rose 1.5 percentage points to 46.7% compared to the same period last year, and the cost rate dropped 0.7 percentage points to 43.3% over the same period, including advertising market expenditure and rental costs.

The profit attributable to shareholders of the company was 29 million yuan to 113 million yuan in profit from the same period last year, and the interest rate of shareholders increased by 4.1 percentage points to 3.2% over the same period last year. Although the net interest rate has improved in the first half of 2016, the gap with the peers is still larger, such as 360 degrees: 10.7%, XTEP: 15%.

(estimated):18.7%.

The company did not send interim dividend, operating cash flow increased 108% to 350 million yuan, and the company's net cash was 1 billion 340 million yuan.

Reporters learned that Lining's key to winning the losses is to aim at the younger generation's strategy and introduce more cheap and functional products, which will reshape its brand image.

In the first half of this year, with the clearance of old stocks and the introduction of new products, the profit margin has exceeded the industry's expectations, according to Liu Zhicheng analysis of Bank of China International Securities.

It is expected that with the launch of new products and full channel expansion, Lining will continue to gain momentum.

Since the second half of 2015, Lining has successfully launched several new products, and the growth of basketball, running and fitness in the main product categories will exceed the average level of the group.

Among them, priced in each pair of 200-500 yuan smart running shoes, especially young consumers.

Take red rabbit running shoes as an example. 75% of buyers are 80 and 90.

Some flagship running shoes, such as ultra light thirteen generation, are expected to achieve sales of more than 1 million pairs in 2016, which is very rare in domestic sports brands.

Liu Zhicheng predicts that the launch of new products and successful inventory will narrow the gap between the sales rate of Anta and Anta stores. In 2017, it is expected to reduce this gap from 15% in 2015 to less than 10%.

In addition, after Lining's three years of inventory clearance, it is estimated that by the end of 2016, the inventory sales rate will return to its normal level in 6.5 months.

Assuming that the new product is growing by 10%, the old stock will remain unchanged for more than six months.

Liu Zhicheng judged that by the end of 2016, inventory within 6 months would account for 63% of the channel stock, and the ratio in the next two years would be further increased to 70%.

Liu Zhicheng also said that in view of the increase in sales of new products by Lining, gross margin will be increased by 1 percentage points to 46% in 2016.

Although Lining has a large number of self owned shops, the profit rate of self owned shops is relatively high (36% of the total number of shops owned by Lining), while Anta's Fila self owned shops account for 15-20% of the total number of shops.

With the improvement of inventory, the reduction of retail discount will further enhance the profit margin.