Ribo Fashion(SH:603196)2019-04-28 16:00Financial Performance - The company's operating revenue for 2018 was CNY 1,132,130,638.54, representing a year-on-year increase of 5.46%[21]. - Net profit attributable to shareholders decreased by 54.13% to CNY 38,364,274.15 compared to the previous year[21]. - The company's cash flow from operating activities was negative at CNY -24,796,854.51, a significant decline from the previous year's positive cash flow[22]. - Basic earnings per share decreased by 58.89% to CNY 0.1599, while diluted earnings per share showed the same decline[23]. - The weighted average return on equity fell to 4.09%, a decrease of 7.23 percentage points from the previous year[23]. - The gross margin for the main business was 60.90%, slightly down by 0.04 percentage points from 60.94% in 2017[66]. - The company's gross profit margin for the company was 60.90% in 2018, showing a slight decrease of 0.04% from the previous year[102]. Brand Development - The company launched two new brands in 2018: women's brand MUCHELL and children's brand broadcute, which involve initial market and consumer recognition risks[7]. - The company emphasizes the need for significant investment in market promotion, product development, and channel development for the new brands, which may take time to yield returns[7]. - The company launched two new brands, MUCHELL and broadcute, in April 2018, contributing 0.83% to total revenue, while the existing CRZ brand saw a revenue decline of 10.06%[24]. - The company focuses on high-end fashion women's clothing, with five brands: "broadcast", "PERSONAL POINT", "CRZ", "MUCHELL", and "broadcute" targeting different consumer segments[31]. - The new brand "MUCHELL" was launched in April 2018, targeting modern urban women's fashion needs[58]. Store Operations - In 2018, the company opened 117 new direct-operated stores, contributing to the continuous growth of its direct sales channels[7]. - Directly operated stores increased by 117, leading to a 15.74% growth in revenue from direct sales[24]. - The total number of stores increased from 989 at the end of 2017 to 1,067 at the end of 2018, with 273 new openings and 195 closures[100]. - The company plans to open 23 new stores and close 25 stores under the "broadcast" brand in 2019, indicating a cautious approach to direct sales channel development[114]. Marketing and Sales - Sales expenses rose by 25.13% due to increased marketing investments and costs associated with new store openings[24]. - The company increased its marketing efforts by inviting new spokespersons and collaborating with various celebrities for brand promotion[59]. - The online sales channel contributed 10,770.33 million RMB, representing 9.73% of total revenue, with a gross margin of 50.03%[106]. - Online retail sales amounted to CNY 9.01 trillion, growing by 23.9% year-on-year, showcasing a strong trend in e-commerce[47]. Inventory and Supply Chain - Inventory increased by CNY 99.29 million, a year-on-year growth of 35.66%, primarily due to the increase in the number of direct-operated stores for new and existing brands and the stockpiling of raw materials[50]. - The company adopted a "lean supply chain" model, focusing on "just-in-time supply" with a "small batch, multiple batches" delivery approach to enhance rapid supply capabilities and effectively control inventory levels[45]. - The company's inventory turnover days increased to 260 days in 2018 from 208 days in 2017[91]. Financial Management and Risks - The company has reported risks associated with brand operation, business model, inventory, and investment, as detailed in the risk section of the report[7]. - The company faces challenges with new brand investments not meeting expected returns, contributing to the decline in net profit and return on equity[25]. - The company acknowledges the risk of excess inventory due to the seasonal nature of the fashion industry, which could lead to financial strain[116]. - The company has faced challenges in cash flow management, impacting its ability to fulfill payment obligations[138]. Shareholder and Dividend Information - The company plans to distribute a cash dividend of 1.00 yuan per 10 shares, based on a total share capital of 24 million shares, pending shareholder approval[5]. - In 2018, the company distributed cash dividends of 24 million RMB, representing 62.56% of the net profit attributable to ordinary shareholders[119]. - The company implements an active profit distribution policy, with cash dividends accounting for no less than 20% of the distributable profits for the year[118]. Audit and Compliance - The company has received a standard unqualified audit opinion from the accounting firm Zhonghua[4]. - The company’s financial report is guaranteed to be true, accurate, and complete by its management team[8]. - The company has not faced any risks of suspension or termination of its listing status[134]. Employee and Management Structure - The number of employees in the parent company is 423, while the total number of employees across the parent and major subsidiaries is 1,839[187]. - The company has established a comprehensive training development system to enhance employee skills and capabilities[189]. - The company continues to maintain a stable leadership team with no significant changes in management roles[182]. Legal Matters - The company is involved in a significant lawsuit with a claim amount of ¥5,287,127.02 related to a sales contract and promotional service agreement with Xinglong Outlet Company[136]. - The court has ruled that Xinglong Outlet Company must pay the company the outstanding amount, with a deadline for payment set for July 1, 2019[136]. - The lawsuit is expected to have no significant impact on the company's financial liabilities[136].