Anzheng Fashion(SH:603839)2018-03-28 16:00Financial Performance - The company's net profit for 2017 was CNY 237,242,280.19, with a proposed distribution of profits amounting to CNY 144,520,821.00, which includes a cash dividend of CNY 5 per 10 shares[5]. - Total revenue for 2017 reached CNY 1,420,671,777.97, representing a year-on-year increase of 17.78% compared to CNY 1,206,172,276.22 in 2016[21]. - The net profit attributable to shareholders increased by 15.69% to CNY 273,073,276.73 from CNY 236,043,988.29 in the previous year[21]. - The company's total assets as of the end of 2017 were CNY 3,151,765,187.72, a 76.56% increase from CNY 1,785,086,517.31 in 2016[21]. - The net assets attributable to shareholders grew by 100.50% to CNY 2,571,743,833.97 from CNY 1,282,643,104.93 in 2016[21]. - Basic earnings per share for 2017 were CNY 1.00, down 9.09% from CNY 1.10 in 2016[22]. - The weighted average return on equity decreased to 11.95% in 2017, down 7.77 percentage points from 19.72% in 2016[22]. - The cash flow from operating activities for 2017 was CNY 317,423,533.62, a decrease of 6.50% compared to CNY 339,479,934.87 in 2016[21]. Brand and Market Strategy - The company’s brand portfolio includes six major fashion brands, establishing a "pyramid" brand matrix targeting different market segments[33]. - The "Jiuzi" brand, established in 2001, has become a leading brand in mature women's clothing, focusing on the 35-45 age demographic[34]. - The "Yinmo" brand targets urban mature women aged 28-35, emphasizing independence and sophistication in its fashion offerings[35]. - The "Anzheng" men's brand, launched in 2012, caters to urban men aged 28-47, focusing on high-quality and fashionable business attire[36]. - The "Mosak" brand, introduced in 2014, enhances the company's brand diversity by targeting the 25-35 age group with a focus on simplicity and elegance[38]. - The company has established a multi-brand strategy with six brands, including Jiuzi, Yinmo, Anzheng, Mosak, Finachern, and Anna K, enhancing brand diversity and complementarity[48]. Research and Development - The company’s R&D team is recognized as a national high-tech enterprise, with a provincial-level R&D center responsible for product planning and design across its brands[50]. - R&D expenses reached 69.7 million RMB, an increase of 24.04% year-on-year, accounting for 4.91% of total revenue[70]. - The company launched 11 R&D projects in 2017, resulting in 87 intellectual property rights, including 3 utility model patents and 37 design patents[93]. Sales and Distribution - The company’s sales model combines direct sales, franchising, and e-commerce, aiming to provide a seamless purchasing experience across all channels[43]. - The online sales of the main brand, Jiuzi, during the "Double 11" event reached 58.06 million RMB, a significant increase of 414% year-on-year[64]. - The number of online VIP members for Jiuzi reached 530,000, indicating strong customer engagement[64]. - Online sales accounted for 13.80% of total revenue, with a gross margin of 46.16%, while offline sales made up 86.20% with a gross margin of 70.20%[119]. Inventory and Cost Management - The company's inventory at the end of the period was CNY 474,273,853.12, an increase of CNY 93,445,085.78 or 24.54% compared to the previous year[103]. - The inventory turnover days decreased to 324 days from 399 days in the previous year, indicating improved inventory management[103]. - The total cost of goods sold for the clothing segment was approximately ¥469.21 million, reflecting a 35.60% increase compared to the previous year[85]. - The gross margin for the overall clothing business decreased, with specific categories like leather and down jackets showing a decline in gross margin by 6.00 percentage points[76]. Future Outlook and Strategic Plans - The company expects to achieve a revenue of 1.783 billion yuan in 2018, representing a year-on-year growth of 25.53%, and a net profit of 359 million yuan, up 31.58% after considering the cost of the restricted stock incentive plan of 21 million yuan[153]. - The company aims to enhance its brand matrix by introducing new brands and expanding into categories such as children's clothing, men's fashion, shoes, bags, and accessories to meet the growing consumer demand for fashion[149]. - The company plans to optimize its channel layout and enhance e-commerce operations, focusing on multi-channel integration and improving the efficiency of existing stores while expanding new lifestyle-oriented stores[156]. - The company intends to invest in product research and development, enhancing design capabilities and innovation to meet the evolving consumer preferences for high-quality, cost-effective products[152]. Shareholder and Dividend Policies - The company emphasizes a stable cash dividend policy, distributing at least 30% of the annual distributable profit in cash during the reporting period[171]. - In 2017, the company distributed a total of 144,520,821 shares, with a cash dividend of 5.0 yuan per 10 shares, resulting in a net profit distribution ratio of 52.92%[173]. - The company has maintained a consistent cash dividend distribution over the past three years, with ratios of 52.92% in 2017, 48.30% in 2016, and 39.45% in 2015[173]. - The company has committed to not transferring or entrusting the management of its shares for 36 months post-IPO, ensuring stability in shareholding[176]. Compliance and Governance - The company commits to not engaging in any competitive business activities with its own products[184]. - Any competitive business activities must be ceased or transferred to a third party to avoid conflicts[184]. - The company will take necessary actions to recover losses incurred due to any violations of commitments by shareholders[184]. - The company will stop paying dividends to shareholders who fail to fulfill their commitments until appropriate compensation measures are implemented[189].