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The Low Profit Margins Of Shanshan Group Were &Nbsp Complaints;

2012/4/9 20:07:00 62

In March 30th, Shanshan stock released its annual report for 2011.

Although the company has handed in a pcript of both revenue and net profit, it has been complained by investors, because its operating profit margin and net profit margin are far lower than those of YOUNGOR and its stock.

What is the reason for this? In an interview, the director general of the Shanshan stock company Qian Cheng said that the difference in sales patterns led to different profit margins.

Growth has been complained

Shanshan annual report shows that in 2011, the company achieved total revenue of 3 billion 2 million 180 thousand yuan, an increase of 5.69% over the previous year, operating profit of 180 million 330 thousand yuan, an increase of 28.66% over the same period last year, a net profit of 153 million 400 thousand yuan, an increase of 27.06% over the previous year, and a 0.37 yuan earnings per share.

The cash dividend of every 10 shares will be 0.6 yuan.

"I am a small shareholder of Shanshan stock company. I hold this company for a long time.

Company

Stock, I have studied for a long time and found that the clothing industry of this company has a kind of unclear relationship with other companies of big shareholders. For example, the brand name is "Shanshan", what is the Shanshan stock, or the Shanshan Group? "Zhenjiang investor Zhou" recently called "popular securities": "later, I compared the data with my peers, and found that the operating profit and net profit rate of Shanshan stock were much lower than that of their peers.

I hope your newspaper can pay attention to it and help our small shareholders clarify this problem.

"Shanshan stock and Shanshan Group all use" Shan Shan ", there are many historical reasons.

At that time, the Shanshan Group did not have the overall listing, so it authorized the clothing of this relatively good asset free to the Shanshan Group. So now the business of the clothing of Shanshan Group is Shanshan Group, and there is no clothing business in Shanshan Group.

Shanshan shares manager Qian Cheng told reporters.

Why is net profit margin low?

The reporter reviewed the 2011 Annual Report of Shanshan stock, YOUNGOR, and three of the shares of the company, and found that the net profits of the three companies were 153 million 400 thousand yuan, 1 billion 762 million 710 thousand yuan and 208 million 660 thousand yuan respectively. The net profit rates were 5.11%, 15.28% and 24.95% respectively, and the earnings per share were 0.37 yuan, 0.79 yuan and 1.25 yuan respectively, that is, net profit and net profit.

Moistening rate

Or earnings per share, and Shanshan shares are all bottom (see Table 1).

Table 1:

Corporate name

Main business

Total operating income (10000 yuan)

Net profit (10000 yuan)

Net profit margin

Earnings per share

(yuan / share)

Allocation plan

(including tax)

Shanshan stock

Clothing + lithium battery + investment

Three hundred thousand two hundred and seventeen

Fifteen thousand three hundred and forty

5.11%

Zero point three seven

0.6 yuan for every 10 shares.

Youngor

Clothing + real estate + investment

One million one hundred and fifty-three thousand nine hundred and forty-four

One hundred and seventy-six thousand two hundred and seventy-one

15.28%

Zero point seven nine

4 yuan for every 10 shares.

Lancy

clothing

Eighty-three thousand six hundred and twenty-three

Twenty thousand eight hundred and sixty-six

24.95%

One point two five

6 yuan for every 10 shares.

"Long last year's shares were listed on the small and medium-sized board, compared with Shanshan stock.

In addition, Shanshan stock also has the investment income that Ningbo does not own. In 2011, it received a cash dividend of 35 million 800 thousand yuan from the Bank of Ningbo, accounting for equity investments in the Chou Chou bank, and a net profit of 51 million 840 thousand yuan.

Mr. Zhou said: "but the total income of the group is only 27.85% of that of Shanshan, but the net profit is 1.36 times that of the Shanshan stock group. This is simply incredible."

"I think the comparability of the two companies is not too big, because the stock of Shanshan is always diversified, and the stock is only a high-end dress."

In an interview with reporters, a senior industry insider said, "Shanshan shares and YOUNGOR are comparable."

"Even with the same diversification of YOUNGOR, the index of Shanshan stock is far behind."

Mr. Zhou complained to reporters: "the intensity of dividends is even less."

"Because investment does not generate sales, the turnover of our company is mainly two parts: clothing and lithium batteries."

Qian explained: "the net profit margin in 2011 is low, mainly due to the influence of the cathode of lithium battery. The whole industry is not good. It is not our company, such as the technology that specializes in positive business.

Positive pole.

Sale

Although the amount is relatively large, but the net profit is not high, resulting in the company's overall net profit margin has been pulled down.

In addition, the company has not done equity financing since 2001, and basically it is debt financing.

In this way, the financial cost is relatively high. "

Clothing profit margins are half of the partners.

In order to conduct in-depth research, the reporter made a comparison of the clothing business of Shanshan stock, YOUNGOR and three of the shares of the group. Overall, the operating profit rate of the group was the highest, basically around 60% (see table two).

Table two:

Corporate name

Product category

Operating income (10000 yuan)

Operating cost (10000 yuan)

Do business

Profit margin

Shanshan stock

Original brand clothing

Fifty-five thousand five hundred and fifty-six

Thirty-nine thousand two hundred and eighty-four

29.29%

International Cooperative brand clothing

Thirty-two thousand six hundred and sixty-six

Seventeen thousand six hundred and fifty-eight

45.94%

Knitwear

Eighty-one thousand two hundred and seventy-three

Seventy thousand three hundred and twenty

13.48%

Youngor

Brand clothing

Three hundred and eighty-one thousand two hundred and thirty-four

One hundred and thirty thousand nine hundred and four

65.66%

Garment foundry

Two hundred and thirty-two thousand and ninety-six

Two hundred and three thousand nine hundred and sixteen

12.14%

Lancy

Blouse

Twenty-six thousand two hundred and thirty-five

Ten thousand three hundred and seventy-six

60.45%

Trousers

Five thousand and sixty-two

Two thousand two hundred and sixty-six

59.55%

Skirt

Twenty-six thousand and thirty-four

Ten thousand three hundred and forty-six

60.26%

Compared to private brand clothing, the operating profit rate of Shanshan stock is 29.29%, YOUNGOR is 65.66%, and its stock is about 60%.

"The same is the private brand clothing, Shanshan shares only half of the business profit margins, it is obvious that we can not justifiable, our small shareholders asked the company to give a statement."

Mr. Zhou said.

"Because clothing is divided into original brand, cooperative brand and OEM, their profit margins are also varied."

A researcher at a brokerage firm in Shanghai told reporters: "although they are all self owned brands, they are high-end women's clothing, while both fir and YOUNGOR are men's men in the middle.

Brand positioning is also an important factor affecting profit margins.

"The profit rate of clothing is related to the sales mode.

I am not sure about the situation of the company. YOUNGOR and we are the same city. Its sales mode is the production and supply chain. It is the company's own production, its own stores, and its own sales. But we are mainly based on the franchise mode, the business revenue is sold to the franchisees, not directly sold to consumers, so the gross profit margin will be lower than YOUNGOR's.

The main reason for this is to reduce risks.

As we all know, the biggest risk of clothing industry is inventory, the same clothes, put in a year and put three years, the depreciation is quite different.

The accounting policy adopted by our company is the aging method and the separate pricing method. If a garment is released for two to three years, it will basically lose more than half of its value. "

Qian Cheng explains this.