Shandong Ruyi Woolen Garment Group Co., Ltd. (hereinafter referred to as “Ruyi Group”) released its financial report for the first half of 2021 on the evening of August 29. During the reporting period, the company achieved operating income of 260 million yuan, a year-on-year decrease of 20.4%, and the decline was narrower than the same period last year; it realized a net profit loss of 44.754 million yuan attributable to the parent company, compared with 15.282 million yuan in the same period last year, and failed to maintain profitability.
As for the reasons for the change in performance, Ruyi Group explained that first, affected by factors such as overseas epidemics, the company’s export orders have dropped significantly, resulting in a decline in performance. With the further prevention and control of the global epidemic, orders have begun to gradually recover in the second half of the year due to factors such as the recovery of terminal consumption and the return of overseas orders, which will have a beneficial impact on the company’s performance; secondly, it will change the order-taking model and reduce related transactions. Since 2021, in order to reduce related transactions, the company has changed to undertake the professional attire business by itself. Except for the contract that is being executed, it will no longer participate in bidding for professional attire business using Ruyi Technology as a platform. Due to restrictions on the scale of operations and the company’s historical performance in undertaking business wear orders on its own, the market and customers will need time to verify and accept the change of order recipients. During the transition period, it will have a certain impact on the company’s business wear order business. In the first half of 2021, the clothing The domestic sales business revenue of the segment decreased year-on-year, which adversely affected the performance.
From a business structure perspective, the apparel sector is the main source of Ruyi Group’s operating income, reports During the period, the clothing segment achieved operating income of 138 million yuan, accounting for 53.2% of revenue, a decrease of 23.33% compared with the same period last year; the wool textile segment achieved operating income of 47.0755 million yuan, accounting for 18.05% of revenue, which was 18.05%. An increase of 2.19% compared with the same period last year.
In terms of products, during the reporting period, Tops achieved operating income of 14.4265 million yuan. Revenue accounted for 5.54%, an increase of 5.54% compared with the same period last year. Worsted woolen achieved operating income of 47.0755 million yuan, accounting for 18.05% of revenue, an increase of 2.19% compared with the same period last year. Clothing achieved operating income of 138 million yuan. yuan, accounting for 53.24% of revenue, a decrease of 23.33% compared with the same period last year.
Looking at different regions, during the reporting period, export sales achieved operating income of 214 million yuan, and revenue The proportion was 82.16%, an increase of 26.52% compared with the same period last year. The operating income from external sales was 46.5266 million yuan, accounting for 17.84% of the revenue, a decrease of 26.52% compared with the same period last year.
During the reporting period, Ruyi Group faced the economic downturn affected by the epidemic. Under the overall situation, we flexibly laid out our market operation strategies, relied on our own complete industrial chain, and integrated upstream and downstream resources to ensure the smooth delivery of orders placed under the impact of the epidemic.
In the international market, Ruyi Group has achieved precise positioning and fast tracking for the rapidly recovering market to achieve rapid conversion of overseas orders; at the same time, it is actively looking for new business models, spot sales, New models such as clothing customization business and the Internet are further strengthened; B2B cross-border e-commerce projects are rapidly advancing, order conversion is realized, and online ordering, payment collection, and delivery declaration are realized.
In terms of fabrics and clothing orders in the customization market, Ruyi Group has launched the Yageshidan brand fabrics, Ruyi jacquard wedding series and British William Thomson brand fabrics to achieve industrial chain advantages in the customization market. Transformation, provide differentiated, functional, personalized and market-oriented high value-added fabric design services. Deepen the wool textile industry chain + Internet, combine design services and marketing, directly connect with the supply chain, and achieve new customers in the customization market. Access to resources.
In the domestic market, Ruyi Group relies on the company’s fabric resource advantages, and its order volume in the first half of 2021 doubled compared with the same period in 2020. The overall orders for professional wear fabrics have increased significantly, and large-scale bidding fabric orders have achieved major breakthroughs. In addition, for the international military uniform market, fabrics and clothing have been integrated. The overall order is expected to exceed 20 million. The profits of high-end brand fabrics continue to grow. Emerging online brands, Internet celebrity brand fabrics also continue to achieve high-profit orders
Public information shows that Ruyi Group was formerly the Jining Wool Textile Factory established in 1972 and was restructured into a joint-stock limited company in December 1993. The company; listed on the Shenzhen Stock Exchange in December 2007, has now become a large-scale textile and apparel group integrating the design, production and sales of worsted fabrics and clothing. </p
