An Lifang: Arrange 22 Million Yuan Compensation For Employee Turnover

Local underwear giant Amway holdings announced on July 24 that it expected the group's net profit in the first half of the year to June 30, 2020 to decrease compared with the same period last year.

Although during the second quarter from April to June, the overall sales and the operation of retail outlets, production lines and logistics departments in various places were gradually restored, considering the compensation expenses of about HK $22 million due to employee turnover, especially most of the termination of employment occurred in the second quarter, the relevant compensation was agreed by the company and relevant employees through consultation; and due to the company's medium-term financial performance The company is expected to have a net loss of about HK $30 million to HK $45 million during the reporting period.

In the second quarter, sales of stores that have been operating for more than 18 months showed a double-digit decline compared with the same period last year. As of June 30, 2020, there are 1494 retail outlets of anlifang, including 1255 sales counters and 239 specialized stores, with a net decrease of 170 retail points compared with the end of December last year.

The reporter learned from the National Bureau of statistics that affected by the epidemic situation, from January to may 2020, the total retail sales of consumer goods were 13.87 trillion yuan, down 13.5% year on year. However, in the past two months, the recovery is more obvious. In May, the total retail sales of consumer goods decreased by 2.8% year-on-year, with a growth rate of + 4.7pct compared with April. After deducting the price factor, the actual year-on-year decrease of 3.7%.

In terms of product categories, the sales volume of clothing, shoes and hats fell by 0.6% year-on-year, 4.7% lower than that of the same period of last year, and further improved by 17.9% month on month. The cumulative decline from January to may narrowed by 5.5% to 23.5%, ranking the second from the bottom in terms of Cumulative Performance of all categories; clothing category in CPI decreased by 0.4% year-on-year in May, which was the same as the level of last month and compared with other categories From this, we can see that the improvement of sales is mainly promoted by sales.

Yu Xuhui, an analyst with Changjiang Securities, said that with the alleviation of the domestic epidemic situation and the gradual recovery of offline brand retail, clothing consumption has rebounded further since May. From the historical perspective, the improvement of inventory turnover rate of clothing enterprises preceded the low point of stock price. With the improvement of terminal retail boom, the stock price performance is expected to be repaired. Under the expectation of the improvement of inventory operation quality in the third quarter, retail repair is expected to support the repair of clothing brand valuation in the head of a shares. However, due to the spread of overseas epidemic situation, the orders of export-oriented textile enterprises are under pressure. It is expected that the second quarter will be the stage with the greatest pressure in the whole year. However, under the background of economic pressure, the demand for the whole year may still be relatively weak, so it is necessary to pay close attention to the progress of overseas epidemic situation.

Industry insiders believe that with the current domestic epidemic has been significantly eased, consumer demand is expected to be restored and released. However, relatively speaking, due to the protection and isolation measures in some regions have not been fully opened up, and consumers' short-term travel habits and consumer confidence still need time to recover, and the comprehensive recovery of offline channels still needs some time. E-commerce is still the main channel to achieve consumption recovery at present. Therefore, in recent years, both the national and local governments and enterprises have paid unprecedented attention to the construction of e-commerce channels and new formats such as live broadcasting.

Li Ang, a researcher at China Galaxy Securities, stressed that during the epidemic period, the advantages of online channels compared with offline channels were obvious. On the one hand, e-commerce channels were not limited by business sites and business hours, which could effectively help more consumers to contact a wider range of consumption choices, and provide more accurate matching demand, high-quality and low-cost commodity service screening and recommendation, and accompanied by live delivery and other emerging products It can gradually enhance the business performance through the experience of online marketing.

However, Li Ang also frankly said that the lack of holidays to stimulate consumption in July, the industry as a whole began to enter the summer consumption off-season from July to August; at the same time, compared with previous years, affected by the epidemic situation this year, the entrance examination of college entrance examination was delayed, so there was a lack of appropriate consumer groups. Generally speaking, the periodic impact of the epidemic on the growth of social consumption has been fully manifested on the data side, with the outbreak of the domestic epidemic In the long run, the overall growth rate will return to the average level in the early stage of the epidemic through the pendulum trajectory. Therefore, it can be expected that the scale of the consumer market will continue to expand.

According to the public information, anlifang group was founded in Hong Kong in 1975 by Mr. Zheng Mintai. It is a leading retailer of women's underwear products in mainland China. It has eight underwear brand series, namely "embryform Amway", "fandeci fendice", "comfit", "lizacheng", "e-bra", "IVU", "iadore Ando", "luciesworld Lucy's world".

According to the financial report, in 2019, an Lifang achieved an operating revenue of HK $2.267 billion, a year-on-year decrease of 7.55%; the annual profit attributable to owners was HK $80.322 million, a year-on-year decrease of 46.86%; the company said that the decrease in revenue was mainly due to the weak retail consumption atmosphere caused by the unstable outlook of the external economic environment.