In the 1990s, there was a boom in entrepreneurship in Wenzhou. Zhou Chengjian, who was still a young tailor, started his own clothing business and finally founded the Meibang brand at the age of 30.
In early trading on March 1, Meibang Apparel opened slightly higher. As of press time, the stock rose 0.77% to 1.31 yuan.
1 Proposed asset impairment of 366 million
February 28 In the evening, Meibang Apparel released an announcement on the provision of asset impairment provisions for 2020. It showed that the company and its subsidiaries had identified assets that may have signs of impairment at the end of 2020, including inventory, accounts receivable, other receivables, and one-year sales. After a comprehensive inventory and asset impairment test of non-current assets, long-term receivables, investment real estate, etc. due within the year, it is planned to make provision for impairment of various assets in 2020 of RMB 366 million.
The announcement stated that the scope of asset impairment provisions this time is mainly accounts receivable, inventory and investment real estate. The total provision for impairment of various assets is 365.52 million yuan. After taking into account the impact of income tax, the net profit attributable to the owners of the parent company in 2020 will be reduced by 365.52 million yuan, and the equity attributable to the owners of the parent company at the end of 2020 will be reduced accordingly by 365.52 million yuan.
The company stated that the company’s inventory is measured at the lower of cost and net realizable value. If the cost is higher than the net realizable value, a provision for inventory depreciation is made and included in the current profit and loss. Net realizable value refers to the estimated selling price of inventory in daily activities minus the estimated costs to be incurred upon completion, estimated sales expenses and related taxes.
The company’s inventory mainly consists of clothing inventory and a small amount of raw materials. Its net realizable value decreases as the inventory age increases. Therefore, combined with the company’s actual sales situation and historical data, it is important to consider The unit sales price and quantity of each channel are determined, and impairment provisions are accordingly made for inventories of different ages. When accruing inventory depreciation provisions, raw materials are accrued by category, and inventory commodities are accrued by individual inventory items.
2 Dismal performance and stock price plummeted
The official website shows that Shanghai Metersbonwe Clothing Co., Ltd. The company was founded in 1995 and adopts a business model that combines production outsourcing, direct sales and franchising. Currently, it mainly owns several major brands: Metersbonwe, ME&CITY, Metersbonwe, MooMoo and CH’IN.
In August 2008, Meibang Apparel was listed on the Shenzhen Stock Exchange. Performance reached its peak in 2011. The financial report showed that Meibang Apparel’s total business revenue reached 9.945 billion yuan, and the net profit attributable to the parent company was as high as 1.206 billion yuan. By the end of 2012, Meibang had a total of 5,220 directly-operated stores and franchised stores across the country.
However, since 2012, Meibang Apparel’s performance has declined year by year. In 2013, Smith Barney achieved revenue of 7.89 billion yuan, a year-on-year decrease of 17%; in 2014, Smith Barney achieved revenue of 6.621 billion yuan, a year-on-year decrease of 16.08%; in 2019, Smith Barney achieved revenue of 5.482 billion yuan, a year-on-year decrease of 28.59%.
The third quarter financial report of 2020 shows that the company achieved operating income of 26.897 billion yuan in the first three quarters, a year-on-year decrease of 33.33%; a net loss attributable to the parent company was 706 million yuan, a year-on-year decrease of 196.78%. At the same time, according to the 2020 performance forecast recently released by Meibang Apparel, the company’s net profit loss attributable to parent companies in 2020 will be 820 million yuan-580 million yuan, an increase of 0.66%-29.74% over the same period last year.
In addition, in the first half of 2020, Meibang Clothing closed 504 stores and opened 105 new stores. In February this year, Metersbonwe closed its largest store in Hangzhou and issued an announcement saying, “Due to the transfer of the business district and considering the input-output ratio, the company has adopted a market-oriented competitiveness strategy as its main line and made more positive changes to some stores. Proactive adjustments will be made to further accelerate the closure of all stores that continue to be loss-making and to ensure the company’s profitable operations as a proactive strategy. There may also be adjustments to unprofitable stores in the future.”
In the secondary market, 2015 was the last highlight moment for Meibang Apparel, with the stock price reaching a maximum of 13.37 yuan and a market value of 41.3 billion yuan. However, the stock price has performed unsatisfactorily since the end of last year and has been hovering below 2 yuan. As of February 26, Meibang Clothing closed at 1.30 yuan per share, with a market value of 3.266 billion yuan.
3 The main business has been losing money
If you draw a performance chart of Meibang, you will find that Smith Barney’s revenue and net profit have been on a roller coaster ride in recent years.
Data show that from 2015 to the first half of 2019, Meibang’s revenue was: 6.295 billion, 6.519 billion, 6.472 billion, 7.677 billion, 2.699 billion, and the net profits were: – 432 million, 36 million, -305 million, 40 million, -138 million.
In fact, Mebarn’s turnaround in 2016 was mainly due to revenue subsidies obtained from the sale of subsidiaries. By 2017, net profit dropped by 942.95%. In 2018, it struggled to turn a profit again. The net profit was also related to the government subsidy of 3310.64 at that time. The main business was still weak.
It is worth noting that among the income in the first half of 2019, there is still investment income of 20 million yuan, accounting for 15.38% of revenue.
Although Meibang made a slight profit in 2018, its net profit margin that year was only 0.53%, and its main clothing business still suffered losses. For this reason, it was also criticized by the Shenzhen Stock Exchange for its continued profitability.Powerful questioning.
In 2016, Smith Barney experienced major changes. Chairman Zhou Chengjian resigned, and the 30-year-old second-generation Hu Jiajia took over, shouting the slogan of “returning to the main business”, and in the channel and retail efforts. Meibang has achieved certain results in its offline layout. The profitability of its main business has improved, and it turned losses into profits in 2018. This is a good sign.
However, in the first half of 2019, Smith Barney’s performance took another dive. The apparel industry is an industry with highly seasonal characteristics. The first and fourth quarters are the peak sales season, and the second and third quarters are the off-season. Correspondingly, the performance is reflected in a U-shaped chart.
It is not impossible for Meibang to turn around losses in 2019, but this will put forward higher requirements for operational management capabilities in the second half of the year. The losses in the first half of the year are related to the inability of commodity shipments to keep up with the pace of new spring and summer product launches. If improvements cannot be made in the second half of the year, profits will become even more out of reach.
4 The Internet transformation that has repeatedly encountered obstacles
In fact, if we say that the United States is in the new consumption environment If there has been no change in it, then it is really an injustice. The rise of e-commerce has greatly impacted Smith Barney, which is good at offline channels. For this reason, Smith Barney has already made efforts in the field of e-commerce.
In 2009, Meibang Xuefanke launched the “Bangou” e-commerce platform. Now, products can still be downloaded, but it has not caused any waves. The reporter found that most of the clothing on the platform was heavily discounted, becoming a channel for clearing inventory, and the sales volume of many products was in single digits.
In 2015, Smith Barney also appeared on the debate program “Qi Pa Shuo” and spent more than 100 million in advertising fees to promote the fashion aggregation e-commerce APP “Youfan”, but in the end it was “Lei Fan” The sound is loud and the raindrops are soft” was removed from the shelves after two years.
Compared with Meibang’s repeated obstacles in the field of e-commerce, Semir seems to be more comfortable. Semir’s e-commerce business reached 2.167 billion in the first half of 2019, with a growth rate of 35%. Since entering Tmall in 2010, the scale of Semir’s e-commerce has grown continuously. Last year’s Double Eleven, Semir’s e-commerce retail sales exceeded 1 billion.
For local traditional brands such as Smith Barney and Semir, by focusing on the online market, they can not only get closer to young consumers, but also gain insights into young people’s preferences through big data. Can bring improvements in new product development and design.
Semir has become trendy, but Smith Barney is gradually fading in the memories of those born in the 80s and 90s. Does your wardrobe still have a place for a piece of Smith Barney? </p
