Lining's Performance In 2018 Is Expected To Climb Again, And Then Be Sought After By The Capital Market.

Entering the 2018, Lining made a lot of effort, and the market was pretty eyed.

The backlog of inventory is not smooth enough to cater for the design of young consumer groups. The once brilliant Lining (02331-HK) company had to go out before the crisis and wanted to revive the universe.

Professional sports and

Combined with entertainment and leisure, and based on the characteristics of sports, we made innovative design to enhance competitiveness. After a subversive innovation, Lining finally turned a profit in 2015, and realized a substantial increase in net profit in 2016.

In 2017, Lining continued to grow upward, and a number of financial indicators improved.

Lining's performance improved in 2017, and the main business indicators improved significantly.

Lining's 2017 financial results showed that the revenue reached 8 billion 874 million yuan (RMB), up 11% compared with the same period last year, of which the main brand revenue of accounted for 99%, which amounted to 8 billion 819 million yuan, and the profit of equity holders increased from 330 million yuan in 2016 to 515 million yuan, up 56% over the same period (the net income from the sale of red double happiness 10%) was increased compared with the same period. The cash flow of business increased by 40% to 1 billion 159 million yuan, and other major business indicators also improved significantly.

Thanks to the control of procurement costs and the increase in the proportion of new products sold in the stock market, as well as the higher proportion of direct sales and e-commerce, Lining recorded a gross margin of 4 billion 176 million yuan in 2017, an increase of 12.7% compared with 3 billion 705 million yuan in 2016, and gross margin rose to 47.1% in the past five years, indicating that the profitability of its main business is gradually recovering.

In terms of assets and liabilities, through continuous optimization of business models, a "precision + fast" business model with efficient retail operation is established. In 2017, Lining's asset liability ratio dropped to 30.7%, reaching its lowest level in nearly ten years.

At the same time, the company's liquidity ratio and speed ratio rose to 2.4 and 1.88 from 1.74 and 1.38 at the end of 2016.

In addition, the inventory ratio and inventory structure continued to optimize, and the overall inventory turnover period decreased by 0.5 months to 6 months, and the proportion of new products increased 8 percentage points to 72% yuan within 6 months.

Accounts receivable improved (down) 14%, cash turnover days shortened by 10 days to 49 days.

Overall, after three consecutive years of adjustment, Lining's main business recovery signs are obvious.

Entering the 2018, Lining will enhance the competitiveness of products through continuous accumulation of understanding of sports, matching functional materials and innovation of science and technology. At the same time, he will make further efforts in the integration of commodity regulation, product design, supply chain to channel integration and the efficiency improvement of retail operation.

2018 performance is expected to peak again

In 2018, Lining worked hard.

Beautiful eyes.

The order will be shown. At the price of the tag, the franchisee's order of Lining brand products (excluding Lining YOUNG) recorded a year-on-year increase for eighteen consecutive quarters.

The latest order was held in March in 2018, and the order for 2018 fourth quarter was recorded. The 10%-20% low segment growth was recorded year by year.

The same store sales performance was calculated at the Lining point of sale, which has been in operation since the beginning of the same quarter last year. As of the end of March 31, 2018, the same store sales of the whole platform recorded a low 10%-20% growth year by year.

In terms of channels, the retail (direct operation) and wholesale (franchised dealer) channels were recorded at the annual low 10%-20% level and the number of units in China grew. The virtual store business grew by 30% to 40%.

Retail performance, as of the end of March 31, 2018, the retail sales of Lining point of sale on the entire platform grew by 10%-20% in the middle of the year.

In terms of channels, offline channels (including retail and wholesale) recorded low 10%-20 growth year by year, in which retail channel recorded low 20%-30% growth and high unit number of wholesale channels. E-commerce virtual store business recorded 30%-40% high segment growth.

In terms of the number of outlets, following the trend of e-commerce, Lining has optimized various brand stores.

As of March 31, 2018, Lining had a total of 6730 sales outlets, with a net decrease of 66 since the beginning of the year (the company took over the authorized dealers' distributors in January 1, 2018, with a total of 361 stores).

In the 66 net sales cut, Lining YOUNG increased by 27, and retail and wholesale business decreased by 47 and 46 respectively.

Looking ahead,

The overall prosperity of the industry is high, and Lining channel inventory has reached healthy level, gross profit margin expansion and financial cost reduction.

Affected by good expectations, current capital

Lining's popularity has increased, and the share price has risen to HK $9 from HK $6 / share at the beginning of this year.