On January 28, Ribo Fashion Group Co., Ltd. (hereinafter referred to as “Ribo Fashion”) issued a pre-loss announcement for 2020 performance.
In 2020, Ribo Fashion is expected to lose 49.22 million yuan, with non-net profit deducting approximately -26.5 million yuan. In 2019, Ribo Fashion’s net profit was 8.8131 million yuan, and non-net profit after deduction was -2.1856 million yuan.
Ribo Fashion stated that the decline in performance was mainly affected by the COVID-19 epidemic, with store opening hours shortened and the company’s offline sales revenue declining. In addition, affected by the operating losses of its holding subsidiary Guangzhou Tengyi before the bankruptcy liquidation was accepted, Ribo Fashion’s profit in 2020 decreased by approximately 35.4 million yuan. Previously, in October 2020, Guangzhou Tengyi’s bankruptcy liquidation application was accepted by the court.
Guangzhou Tengyi’s brand is the fashion brand CRZ. It has continued to suffer losses and is seriously insolvent. In 2019, Guangzhou Tengyi Yi accounts for 10.76% of Ribo Fashion’s operating income.
In order to offset the adverse impact of the epidemic, some Ribo Fashion stores conducted promotions, resulting in a slight decrease in gross profit margin. Ribo Fashion stated that its main brand “broadcast” will make every effort to open up online and offline businesses in 2020. At the same time, it will open stores against the trend and layout important business districts in core cities.
Since the second half of 2020, the profitability of direct sales and online channels has improved. According to the third quarterly report of Ribo Fashion, losses in the first three quarters of 2020 have reached 74.8969 million yuan.
In addition, in December 2020, Ribo Fashion announced that it would acquire 8.4% of the equity of Bubu Technology held by its controlling shareholder Ribo Holdings at a price of 25.2087 million yuan to lay out light sports In the field of apparel, it is said that the company is in a critical period of strategic transformation, and the “light sports” series will be a potential growth area of continued concern.
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