Since the beginning of August, domestic apparel listed companies have announced their results for the first half of 2021. As of August 27, a total of 27 companies disclosed interim reports. Among them, 25 companies increased both operating income and net profit in the first half of the year, and 2 companies increased revenue but did not increase profits. Overall, after experiencing the industry trough caused by the epidemic last year, the consumer market has accelerated its recovery this year. At the same time, since last year, various brands have generally accelerated their online and offline integration. In addition, affected by the “Xinjiang Cotton” incident, Chinese consumers’ recognition of domestic brands has greatly increased. These factors have contributed to the overall apparel industry showing an accelerated recovery trend in the first half of this year.
70% of listed companies have doubled their profits
Among the 27 A-share and H-share listed apparel companies counted by the reporter, In the first half of the year, there were two listed apparel companies whose net profit increased by more than 50 times year-on-year. Among them, Jinhong Group’s net profit increased by 5400.14% year-on-year, and Baosheng International’s net profit increased by 5063.65% year-on-year. There was one company whose net profit increased by more than 30 times. , for Langzi Shares, the net profit increased by 3343.58% year-on-year.
In the first half of the year, 14 companies saw their net profits double year-on-year. Among them, Annair’s net profit increased by 417.43% year-on-year, Septwolves’ net profit increased by 241.15% year-on-year, Peacebird’s net profit increased by 240.52% year-on-year, and Yu’s net profit increased by 240.52% year-on-year. Yuan Group’s net profit increased by 224.49% year-on-year, Li Ning’s net profit increased by 187.18% year-on-year, Xinhe’s net profit increased by 155.23% year-on-year, Giordano International’s net profit increased by 134.29% year-on-year, Winner Fashion’s net profit increased by 134.2% year-on-year, and Crystal International’s net profit increased by 134.2% year-on-year. A year-on-year increase of 130.69%, the net profit of Xiangxiniao increased by 125.63% year-on-year, the net profit of Sanfu Outdoor increased by 118.35% year-on-year, the net profit of Huasi Co., Ltd. increased by 115.03% year-on-year, the net profit of Huijie Co., Ltd. increased by 112% year-on-year, and the net profit of Shanshan Brand increased by 118.35% year-on-year. 108.9%. Overall, in the first half of this year, 70% of listed apparel companies doubled their net profits.
Compared with the levels of the same period in 2019 before the epidemic, 9 companies including Langzi Group, Jinhong Group, Baoxiniao, Carbine, Biyinlefen, Bangjie Group, Mugaodi, Peacebird and Li Ning All of them have achieved continuous growth in operating income and net profit. Ribo Fashion has turned losses into profits. The net profits of 361 Degrees, Yue Yuen Group and Crystal International have maintained growth. The operating income of Xtep International and Jiansheng Group has maintained growth. The performance of other companies has declined compared with the same period in 2019.
Industry insiders believe that due to the severe impact of the epidemic in the first half of 2020, most companies will experience a sharp rebound in performance in the first half of 2021 as expected. What is even more concerning to the market is that as the low base effect of subsequent industries gradually weakens, these companies with strong organic growth and continued good performance will perform better. When corporate profit growth is increasingly reflected in “head” companies, it is expected that the market concentration of “head” companies will further increase in the future, and industry differentiation will become increasingly obvious.
Sports companies have outstanding performance
After experiencing the industry trough caused by factors such as the new crown pneumonia epidemic last year, the apparel industry The recovery began to accelerate in the first half of this year, and the operating income of many listed companies increased significantly.
Among the 27 listed clothing companies counted by the reporter, in the first half of the year, there were 3 listed clothing companies with operating income exceeding 10 billion yuan. Among them, Baosheng International’s operating income was 13.074 billion yuan, and Li Ning’s operating income was 13.074 billion yuan. Revenue was 10.197 billion yuan, and Heilan House’s operating income was 10.135 billion yuan.
In the first half of the year, there was one company with operating income exceeding 8 billion yuan, Huali Group achieved operating income of 8.195 billion yuan; there was one enterprise with operating income exceeding 5 billion yuan, and Peacebird achieved operating income of 5.015 billion yuan Yuan; there are two companies with operating income exceeding 4 billion yuan, namely Yue Yuen Group, which achieved operating income of 48.07 yuan, and Xtep International, which achieved operating income of 4.135 billion yuan; there is one company with operating income exceeding 3 billion yuan, and 361 degrees achieved operating income Income is 48.07 yuan.
In the first half of the year, there were 8 companies with operating income exceeding 1 billion yuan. Among them, the operating income of Baoxiniao was 19.75 yuan, the operating income of Jinhong Group was 1.963 billion yuan, and the operating income of Langzi Co., Ltd. was 1.789 billion yuan. Yuan, Giordano International’s operating income was 1.681 billion yuan, Septwolves’ operating income was 1.542 billion yuan, China Lilang’s operating income was 1.354 billion yuan, Crystal International’s operating income was 1.054 billion yuan, Biyinlefen’s operating income was 1.022 billion yuan; the rest There are 9 companies with operating income of less than 1 billion yuan.
In addition, in terms of company profits, in the first half of the year, there were 5 companies with net profits exceeding 1 billion yuan. Among them, Li Ning had a net profit of 1.962 billion yuan, Huali Group had a net profit of 1.291 billion yuan, and Hainan Group had a net profit of 1.291 billion yuan. Lanzhijia’s net profit was 1.650 billion yuan; one company had a net profit of more than 600 million yuan, Baosheng International’s net profit was 636 million yuan; two companies had a net profit of more than 400 million yuan, among which, Peacebird’s net profit was 411 million yuan, 361 Degrees’ net profit was 401 million yuan; there were three companies with net profits exceeding 200 million yuan, among which, Angel Bird had a net profit of 262 million yuan, Biyinlefen had a net profit of 245 million yuan, and Huijie Shares The net profit was 220 million yuan; there were 5 companies with net profits exceeding 100 million yuan. Among them, Xinhe Group had a net profit of 189 million yuan, Yue Yuen Group had a net profit of 170 million yuan, and Jinhong Group had a net profit of 133 million yuan. Cabin’s net profit was 118 million yuan, and Jiansheng Group’s net profit was 108 million yuan; there were 14 other companies with net profits of less than 100 million yuan.
It is not difficult to find that most listed companies are in the “club” with a revenue of 1 billion yuan. Among the listed companies with a revenue of more than 3 billion yuan, except for Heilan House and Peacebird, they are fashion companies. The remaining five companies are all sports-related listings.company. Similarly, among the top five listed companies in terms of net profit, sports companies also dominate, with only PEACEBIRD standing out.
Diversification promotes the strength of the apparel industry
Against the backdrop of industry recovery, the mid-term results of listed apparel companies in the first half of the year were strong. Among them, there are many companies whose net profit growth has skyrocketed. For example, the net profit of Jinhong Group, the parent company of women’s wear Vignas, increased by as much as 54 times in the first half of the year, and the net profit of Langzi Co., Ltd., a listed women’s wear company, increased by more than 33 times in the first half of the year.
For the substantial growth in performance, Jinhong Group stated that one of the main reasons is that the company’s brand TEENIE WEENIE performed well and created the best performance since the acquisition in the first half of the year. At present, Jinhong Group has three major brands, TEENIE WEENIE, VGRASS and Yuanxian, covering mid-to-high-end, high-end and domestic boutique product lines respectively. In the first half of the year, TEENIE WEENIE achieved revenue of 1.438 billion yuan, a year-on-year increase of 90.73%, accounting for approximately 70% of the total revenue.
It is worth noting that in recent years, Langzi shares, which has been committed to building a pan-fashion ecosystem and deeply involved in the consumption of women’s appearance, have developed in women’s clothing, children’s clothing, and medical beauty business. Judging from the contribution of each business segment with a revenue of 1.789 billion yuan, women’s clothing still carried the banner of performance growth. In the first half of the year, Langzi’s women’s clothing business achieved revenue of 835 million yuan, a year-on-year increase of 60.49%; net profit was 58 million yuan, a year-on-year increase of 290.7%.
In this regard, Langzi Shares stated that in the first half of the year, the company comprehensively upgraded the brand image of its main brand Langzi, launched a new VI color “Langzi Red”, and also launched a cost-effective brand “Yuelangzi” . In addition, the COVID-19 epidemic has brought about changes in consumer shopping habits, which has also helped Langzi Co., Ltd. accelerate the process of integrating online and offline operations. In the field of traditional men’s clothing, Heilan House not only continues to seek breakthroughs in functionality, but also makes early plans in terms of brand rejuvenation and operational digitization, and has ranked first in the market share of my country’s men’s clothing brands for seven consecutive years. In terms of new brands, Heilan Home has also begun to take shape. In addition to the men’s clothing segment, other brands such as OVV women’s clothing, boys’ and girls’ children’s clothing, Ying’s children’s clothing and Heilan’s preferred home furnishings have also been added to basically complete the multi-brand matrix and explore new growth points.
Industry insiders said that in recent years, the textile and clothing sector has ushered in some gratifying changes, especially local footwear and clothing sports brands have made unremitting efforts in product design, technological innovation, and new material application, and their market share has continued to increase. At the same time, thanks to the resonance and interaction between brands and consumers, the consumption craze for domestic products has continued unabated, which has also effectively promoted the rapid recovery of the clothing industry. </p
