News from the First Textile Network on March 20 (reported by reporter martin): Local mid-to-high-end women’s clothing brand-Langzi Co., Ltd. (hereinafter (referred to as “Langzi Shares”) today (March 20) released the 2019 annual performance report of the company’s overseas holding subsidiary Akabang Co., Ltd. During the reporting period, Akabang achieved operating income of 795 million yuan and a total profit loss of 40.5398 million yuan. yuan, and the net profit loss attributable to shareholders of the listed company was 93.7419 million yuan.
As of the end of the reporting period, Akabang’s total assets were 1.132 billion yuan, and the owner’s equity attributable to shareholders of listed companies was 814 million yuan.
First Textile Network reporter checked the announcement and learned that in 2014, Langzi Investment invested approximately 310 million Yuan Yuan has become the largest shareholder of Akabang, a well-known Korean children’s clothing listed company with a brand history of about 40 years, and has expanded its fashion tentacles from mid-to-high-end women’s clothing to infant and child clothing and supplies. Agabang means “child’s room” (아가방) in Korean. Its products fully cover the field of children’s growth products such as clothing, supplies, skin care products, and toys for infants and young children aged 0-4. It owns Agabang, ETTOI, It also operates a series of private brands such as Putto, Designskin, and Dear Baby, and operates the Maternity maternity wear brand as an agent.
Akabon has built excellent brand recognition and the largest distribution network in South Korea, continuously For many years, it has won honors such as “The No. 1 Famous Brand” and “The No. 1 Children’s Clothing Company” by the Korean Enterprise Efficiency Association. It is deeply rooted in the hearts of the Korean people and is known as the national brand of Korean baby products. Akabang’s products are positioned as mid-to-high-end maternal and infant clothing and supplies. Langzi has accumulated rich experience in store expansion and management in the field of mid-to-high-end women’s clothing, and has accumulated more than 300,000 loyal mid-to-high-end female customers and 513 high-quality offline stores. Sales terminal channels will help promote and sell the Akabang brand in the country.
Langzi shares stated that as a national brand of South Korea, the main body of the company’s infant and child business Acapang is in South Korea. After the acquisition, the company set up a dedicated Chinese operations team and promoted the brand in China. The operation has been greatly improved and the market has been expanded widely. As of the first half of 2019, Acapbon Korea has improved its sales revenue and operating performance by closing inefficient stores and adjusting its business model; Acapbon China has completed a design team composed of Korean and Chinese designers The establishment of the company, in conjunction with a domestic product team composed of young people, satisfies domestic consumers’ pursuit of fashionable and comfortable infant and child products online and offline. In the next step, Langzi Co., Ltd. will continue to increase the speed of opening sales terminals and expand the terminals The layout extends from Beijing, Hangzhou, and Chengdu to key domestic cities.
Xu Yi, an analyst at Guolian Securities, previously said that at the beginning of the acquisition of Langzi shares, Akabang suffered a loss of more than 40 million in the first half of 2014. In 2015, the company had basically completed the acquisition of Akabang. The adjustment of its management system and its original domestic sales and organizational structure has reversed its past losses. In 2015, Akabang acquired 100% of the equity of Designskin with 6.6 billion won in cash (equivalent to approximately RMB 35.64 million). Designskin Founded in 2007, its star product is a multi-functional children’s home floor mat made of environmentally friendly materials. It has dozens of authoritative and influential product designs for infants and children in South Korea and Asia, including the IF Design Award. Award, with a market share of 10% in South Korea at that time.
In 2017, Akabang’s sales revenue and performance in South Korea were relatively stable; domestic sales revenue increased by 40% due to increased channels. Affected by the accelerated expansion of domestic channels, store opening costs increased and overall performance declined. At present, the sales and channels in the Korean market have matured. In the future, development will turn to the domestic market, using multiple operating models such as “online + offline” and “self-operated + agency” to expand the industry and seize the dividends of the domestic second child liberalization.
After the acquisition, Langzi Co., Ltd. was not eager to introduce Akabon into the country, but first stabilized its competitive position and advantages in the local Korean market. In 2015, the company has basically After completing the adjustment of Akabon’s management system and its original domestic sales and organizational structure, it reversed its past losses, and then the company began to move to the domestic market. In October 2015, Akabang entered into a strategic cooperation with Tmall and launched Akabang’s online layout. Akabang’s Tmall flagship store, ettoi Tmall flagship store, and Akabang Taobao store were successively opened. In 2016, physical stores in first- and second-tier cities will be built one after another. At the same time, personalized sales will be promoted through the Internet celebrity effect, and low-cost traffic will be attracted, which has made a good start.
The financial report shows that relying on Langzi’s existing women’s clothing sales channels, the customer base of young mothers and the good reputation established in the industry, as of the end of the first half of 2019, Akabang’s offline sales There are 892 terminals in total, including 845 in South Korea and 47 domestic ones (including 2 domestic online channels). Korean offline sales terminals are mainly distributed in high-end shopping malls, large supermarkets, and street stores; the main divisions of domestic offline sales terminals in BeijingShopping malls and shopping centers in the three important regions of Jiangsu, Zhejiang and Sichuan.
Xu Yi believes that although there are currently few domestic channels, in the future Langzi Co., Ltd. plans to carry out extensive layout in domestic shopping malls and department store channels within three years. At the same time, according to the attributes of its various products Differently, in order to achieve scale and influence in department stores, shopping malls, maternal and child stores, parent-child institutions and other channels, online channels will also synchronize offline products, create experiences offline, and build reputation online to jointly shape the brand image. In the future The rapid expansion of channels may bring about faster growth in costs. At the same time, the cultivation of new stores will also require a period of ramp-up, which will put pressure on performance growth in the short term, but in the medium and long term, rapid expansion will help the company open up new markets. In the infant and child market, the industry is in a fragmented competitive landscape during its growth period and is trying to seize a place in the market.
Langzi shares also stated that in my country’s children’s clothing market, high-end children’s clothing is mainly dominated by international brands, while domestic brands are mainly concentrated in the mid-to-high-end. Due to the short development time of domestic independent brands, currently The overall market concentration is low and competition is fierce. However, it should also be noted that the company’s Akabon brand infant and child business has extensive brand recognition and customer base in South Korea, its country of origin, and has a certain market in East Asia. and influence, it is still in the brand promotion stage in China, and its industry influence is small.
Xue Yuan, a researcher at CITIC Securities, said frankly that the infant and child industry has gradually entered a mature stage, and the scale, competition and channel dividends that supported early growth have gradually weakened. The business model has reached a watershed, and the industry’s development has transformed from “category scale expansion” to “structure optimization and service superposition”. It is no longer possible to maintain stable customer relationships by only selling products. The competition among infant and child platforms in the future is essentially a competition for user resources and traffic. Whoever can control core and stable user resources can control high profitability and profitability sustainability, increase gross profit through the “service + goods” model, enhance the core profitability of the enterprise, and bring about profitability stability and sustainability. .
Public information shows that Langzi Co., Ltd. has been committed to the design, production and sales of branded women’s clothing since its establishment, focusing on the mid-to-high-end women’s clothing market. Currently, it has formed a brand with fashionable women’s clothing, green baby, and A pan-fashion ecosystem where medical and beauty industries are interconnected and develop collaboratively.
Financial reports show that in 2019, Langzi Co., Ltd. achieved operating income of 3.015 billion yuan, a year-on-year increase of 13.27%; operating profit achieved 167 million yuan, a year-on-year decrease of 30.30%; attributable to shareholders of listed companies Net profit fell 68.23% year-on-year to 66.8582 million yuan, and basic earnings per share fell 69.13% year-on-year to 0.1624 yuan.
From the perspective of main business, Langzi Co., Ltd. achieved operating income of 1.512 billion yuan from women’s clothing business during the reporting period, an increase of 9.60% over the same period last year; income from medical beauty business was 625 million yuan, An increase of 30.47% compared with the same period last year.
The decrease in net profit was mainly due to South Korea’s L&P Cosmetic Co held by the company during the reporting period. , due to the provision of asset impairment provisions of RMB 118 million after 9.1% equity of Ltd. was evaluated and tested.
As of the end of the reporting period, the total assets of Langzi Shares were 5.355 billion yuan, a decrease of 26.45% from the beginning of the period, mainly due to the sale of the controlling stake in the holding subsidiary Beijing Langzi Asiana Asset Management Co., Ltd. during this period , due to no longer being included in the scope of consolidation.
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