How is the performance of 12 Chinese listed apparel companies in H1?

Recently, Chinese listed apparel companies released their performance for the first half of 2024. Under weak market expectations and insufficient effective demand, how is their performance? This article selects 12 major listed enterprises as samples to understand the latest trends.

In terms of operating income, HLA topped the list with 11.37 billion yuan, with a year-on-year increase of 1.53%. Semir and Youngor ranked second and third, with revenues of 5.955 billion yuan and 5.711 billion yuan respectively, showing year-on-year growth of 7.1% and a decline of 2.7%. Meters/bonwe and Busen ranked last, with revenues of 414 million yuan and 69 million yuan respectively, reflecting year-on-year decline of 25.8% and an increase of 4.4%.

In total, the 12 companies reported combined revenues of 37.399 billion yuan, a year-on-year increase of 0.96%. Seven companies experienced year-on-year growth, while five, including Youngor, PEACEBIRD, Septwolves, Hodo, and Meters/bonwe saw declines, with Meters/bonwe experiencing a significant decrease and Lancy showing a substantial increase.

Regarding net profit, Youngor led with 1.865 billion yuan, down 9.68% year-on-year. HLA and Semir followed in second and third place, with net profits of 1.636 billion yuan and 553 million yuan, reflecting decline of 2.56% and an increase of 7.17% respectively. Hodo and Busen posted the lowest net profits, at 44.222 million yuan and a loss of 6.2665 million yuan, with year-on-year decrease of 5.77% and an increase of 65.61%.

In terms of net profit excluding non-recurring gains and losses, Youngor again topped the list with 1.821 billion yuan, a decline of about 6.09% year-on-year. HLA and Semir ranked second and third with 1.509 billion yuan and 541 million yuan, showing a decline of 9.26% and an increase of about 12.71%, respectively. Meters/bonwe and Busen ranked last, with non-recurring profits of 8.1194 million yuan and a loss of 524.05 million yuan, reflecting year-on-year increases of 133.7% and 72.42%.

Overall, the net profit of the 12 companies totaled about 5.13 billion yuan, a year-on-year decrease of 5.89%. Their net profit excluding non-recurring gains and losses amounted to 4.664 billion yuan, down 8.2% year-on-year. Busen reported losses in both net profit and excluding non-recurring profit, while the other 11 companies all achieved profitability.

In terms of gross profit margin, ELLASSAY led with 69.24%, followed by SAINTANGELO and JOEONE with 66.99% and 66.05%, respectively. Busen and Meters/bonwe ranked lowest with gross margins of 36.79% and 35.37%.

For the net profit margin, Youngor ranked highest at 32.71%, with Meters/bonwe and Septwolves in second and third place at 18.53% and 14.96%, respectively. JOEONE and Busen had the lowest net profit margins at 3.23% and -10.54%.

On average, the gross profit margin of the 12 companies was about 51.49%, a year-on-year increase of 0.7%, while the average net profit margin was 9.88%, a year-on-year increase of 20.1%.

Regarding inventory turnover days, Youngor had the highest at 857.14 days, a year-on-year decrease of 24.48%. ELLASSAY and JOEONE ranked second and third, with 380.47 days and 299.1 days, representing year-on-year increases of 26.89% and 4.64%, respectively. Hodo had the lowest inventory turnover days at 84.46 days, with a year-on-year increase of 88.36%. On average, the inventory turnover days for the 12 companies was 276.15 days, down 9.15% year-on-year.

In terms of asset-liability ratio (total liabilities/total assets * 100%), Meters/bonwe had the highest at 75.08%, followed by Busen and Lancy at 60.79% and 52.83%, respectively. JOEONE had the lowest at 30.17%. On average, the debt ratio of the 12 companies was about 42.9%, a year-on-year decrease of 4.95%. Generally, a lower debt ratio indicates stronger repayment ability, but too low is not always better, and a ratio controlled within the 40%-60% range is relatively favorable.

In summary, achieving the above results in the first half of the year was not easy for apparel companies, which overall faced certain pressures. Although the combined revenue of the 12 companies saw a slight year-on-year increase, both net profit and net profit excluding non-recurring gains and losses experienced varying degrees of decline. However, apart from Busen, which reported losses, the other 11 companies all achieved profitability. Except for Meters/bonwe and Busen, which had higher debt ratios, the other 10 companies maintained a debt ratio of around 30-50%, generally within a relatively reasonable range.

The gross profit margins of the 12 apparel companies were relatively high, averaging around 51.5%, while the net profit margins were insufficient at below 9.9%, indicating a significant disparity among brand companies. This year, market competition has been fierce, with noticeable cost and operational pressures emerging. The internal and external market environments are changing, and customer demands are evolving, so adapting to new models and new demands remains a crucial task for apparel enterprises.