On July 20, Semir Clothing (002563) stated that in order to reduce the company’s operating risks and avoid greater losses in the company’s performance, Semir Clothing decided to sell the French children’s clothing brand company Sofiza, which it had just acquired two years ago.
Affected by the epidemic, brand apparel companies’ performance declined significantly in the first half of this year. Kidiliz’s losses in the first quarter have already Close to all of last year. Among the 17 listed textile and apparel companies that have released performance forecasts for the first half of the year, as many as 10 are expected to have a performance decline of 100% or more.
Semir sells loss-making subsidiary
Semir Clothing July 20 In the evening announcement, the company planned to sell 100% of the assets and business of its wholly-owned subsidiary French Sofiza SAS to its shareholder Semir Group.
According to public information, Sofiza was established in 2005. Its main business is holding, mergers and acquisitions and investment management. Sofiza owns 100% of the shares of Kidiliz Group. Kidiliz owns several children’s clothing brands such as “CATIMINI” and “ABSORBA”.
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In 2018, Semir Clothing completed the acquisition of French children’s clothing group Kidiliz, but Judging from the announcement, Kidiliz’s performance has been in a state of loss, especially in the first half of this year due to the impact of the epidemic. In 2018, 2019 and the first quarter of 2020, Kidiliz suffered losses of 48.84 million yuan, 307 million yuan and 121 million yuan respectively, which means that Kidiliz’s loss in the first quarter of this year was close to last year’s full year loss.
Semir Clothing said that in the past two years, the company has integrated the Kidiliz Group’s business in operations and actively carried out organizational personnel, financial control, business development, cultural integration and other aspects. work to promote the coordinated development of domestic and overseas business.
However, due to the continued economic downturn in Europe, Kidiliz Group’s main brand business revenue continues to decline, stores are decreasing year by year, main business losses are serious, and losses are increasing, especially After the outbreak of the global COVID-19 epidemic, Kidiliz Group’s main business areas, France and Italy, as well as the entire European market economy, suffered heavy losses, with far-reaching impacts and further amplification of operating risks, which adversely affected the company’s performance and had a significant impact on the company’s future operating performance. Uncertainty. In order to avoid the continued adverse impact of this business on the company’s performance, the company plans to sell the assets and business.
However, the price of this transaction has not yet been determined. The Semir Apparel board of directors has authorized the management to hire an audit and evaluation agency to conduct audit and evaluation of the assets and business of the target assets, and refer to the audit and the evaluation results to determine the transaction price.
In 2018, Semir Clothing acquired all the assets of Kidiliz Group for 110 million euros (approximately RMB 844 million at the time). After the acquisition, Semir has become the second largest children’s clothing company in the world. company.
In addition, this transaction involves related transactions. Semir Clothing stated that the purpose of this transaction is to reduce the company’s operating risks, avoid greater losses in the company’s performance, and does not regard competition as the Purpose. Therefore, Semir Group promises that it will not carry out new business operations or expand its original business in China while holding interests in the underlying assets. In addition, within one year from the date of completion of this transaction, Semir Group will resolve any Possible potential intra-industry competition.
Apparel companies have been seriously affected by the epidemic
Seima Apparel was established in 2002 In the year, it has developed into a leading company in my country’s casual clothing and children’s clothing industry. As of December 31, 2019, Semir Apparel has established 10,257 offline stores in various provinces, autonomous regions, municipalities directly under the Central Government and overseas, including 1,310 directly operated stores, 8,677 franchised stores, and 270 jointly operated stores; in terms of brands, Balabala The number of children’s clothing stores increased from 5293 to 5790, an increase of 497 stores, an increase of 9.39%; Semir casual wear and other adult clothing stores decreased from 3830 to 3766, a decrease of 64 stores, a decrease of 1.67%; KIDILIZ Group stores decreased from 782 to 701 , a decrease of 81 companies, a decrease of 10.36%.
However, affected by this year’s epidemic, Semir Apparel’s performance has declined severely. The first quarter report released by Semir Apparel shows that in the first quarter of 2020, its operating income was 2.74 billion yuan, a year-on-year decrease of 33.51%; net profit was 17.48 million yuan, a year-on-year decrease of 94.96%. Semir Apparel had previously expected net profit in the first half of the year to drop by 70%-90% year-on-year, with expected profits ranging from 72.2106 million yuan to 216 million yuan.
However, on July 14, the company revised its performance forecast downwards, predicting a profit of 00,000-72.2106 million yuan in the first half of the year, a year-on-year decrease of 90%-100%. As for the reason for the performance revision, Semir Apparel explained: Affected by the epidemic, the company’s overseas business losses increased.
In addition, as of July 20, 17 A-share textile and apparel companies have released half-year performance forecasts, of which 13 have experienced year-on-year declines.
Among them are ST Busen (14.480,0.69,5.00%) (rights protection),
Xinur ( 5.540,0.19,3.55%),
Sanfu Outdoor (18.010,0.91,5.32%),
Meibang Clothing (2.180, 0.07, 3.32%),
Saturday (22.300,-0.13,-0.58%),
Pathfinder (4.130, Seven companies, including 0.17, 4.29%) and Huasi Holdings (4.970, 0.19, 3.97%), expect their net profits to drop by more than 200%. </p
