It is reported that on the evening of February 27, Pathfinder released a performance report stating that it is expected to achieve a net profit of 110 million yuan in 2019, a year-on-year increase of 160.55%, turning losses into profits; the total operating income is 1.506 billion yuan, a year-on-year decrease of 24.41%. Since accruing large amounts of goodwill, investment and asset impairments in 2017 and 2018, and falling into a quagmire of losses continuously, Pathfinder was once in the crisis of suspension and delisting in 2019.
As the strategy of returning to its main business and focusing on outdoor products worked, Pathfinder stopped its loss trend in 2019, and the risk of delisting was temporarily alleviated . However, under the current epidemic, the outdoor products industry is inevitably affected.
Revenue decline and profit surge
As early as 2013 to 2016, Pathfinder proposed the strategy of coordinated development of the three major businesses of outdoor products, travel services, and sports, and successively invested in Luye.com , Tutu, Yiyoutianxia and other subjects. However, due to the investment effect not meeting expectations, Pathfinder’s revenue fell by 24.42% in 2016, and its net profit also fell by 37.13% year-on-year. In 2017, Pathfinder suffered its first loss after listing, reaching 85 million yuan. In 2018, the loss further expanded to 182 million yuan.
In 2019, Pathfinder’s operating profit and total profit increased significantly compared with the same period last year. The net profit attributable to shareholders of the listed company is expected to be 110.1574 million yuan, an increase of 160.55% compared with the same period last year. It is understood that this is because Pathfinder focuses on the development of its main business of outdoor products and improves its business profitability. Compared with the same period last year, the company’s related investment and asset impairment risk has been significantly reduced.
Relevant personnel from the Pathfinder Securities Department told a reporter from the China Times: “In 2020, the company will continue to focus on resources to promote the growth of its main business of outdoor products. For long-term healthy development, we will continue to deeply explore the development space of the domestic and foreign outdoor sports markets, respond quickly to the epidemic, strengthen online marketing, and conduct detailed planning in terms of products, operations, brands, etc., and strive to promote the company’s steady development.”
According to Pathfinder’s performance report, non-recurring profits and losses during the reporting period have increased to a certain extent compared with the same period last year. Non-recurring profits and losses in 2019 are expected to be approximately 84 million yuan, compared with 31.03 million yuan in the same period last year. While Pathfinder continues to improve the competitiveness of its main outdoor products, enhance the influence of brand culture and brand spirit on users, and optimize the structure of online and offline sales channels, it also actively improves operational management efficiency. Overall expenses have increased compared with the same period last year. reduced.
“2019 is a critical year for Pathfinder. If it cannot make a profit, it will be ST. Profitability is normal and must be profitable. Pathfinder has made a pan-outdoor capital layout since its listing. In fact, it was a failure. On the contrary, it did not invest much in its main business. As a result, Pathfinder was unable to succeed in the outdoor market. It could not be an international brand with high quality and could not be an online brand with medium and low quality.” Textile and clothing brand Cheng Weixiong, a management expert and founder of Shanghai Liangqi Brand Management Co., Ltd., said in an interview with a reporter from China Times.
The effect of returning to the main business is yet to be tested
Pathfinder can be said to be a long-established outdoor products company, founded in 1999 and listed in 2009. In the following five years, the annual revenue growth rate was more than 30%. In 2015, it reached 121.99%, and also set a revenue record of 3.808 billion yuan. This is one of the reasons why Pathfinder will embark on the path of M&A expansion in the future.
After announcing its return to its main business in 2017, Pathfinder began to gradually reduce costs, promote store efficiency, close inefficient stores, and focus on optimizing store layout and channel structure. In 2019, Pathfinder entered new core business districts such as Beijing Heshenghui, Beijing Xilongduo, and Tianjin Jinyuanbao to create benchmark stores. As of the first half of 2019, the total number of TOREAD offline stores was 1,153, the total number of Discovery Expedition brand offline stores was 161, and the total number of TOREADKIDS children’s clothing stores was 39.
Cheng Weixiong analyzed that after Pathfinder announced its return to its main business, it still made little progress in the outdoor product line. There is still a need to put more effort into precise brand positioning and product positioning. Marketing and promotion need to be more pragmatic and integrated with products. Focusing on the needs of the outdoor market, Pathfinder’s down-to-earth approach has room for growth. He said: “In the first half of this year, the outdoor industry, like all industries across the country, was greatly affected by the epidemic, but it is expected that the outdoor industry will recover after the epidemic is over, and users will further increase their initiative and popularize outdoor sports.”
According to the reporter’s understanding, after the outbreak of the new coronavirus pneumonia, Pathfinder started online work for all employees on February 5, and comprehensively used new marketing tools such as WeChat mini programs and Douyin, and cooperated with Tmall and other third-party The resource cooperation of the three-party platforms will strengthen live broadcast marketing and other methods to reach consumers and promote the development of online business. In addition, Pathfinder is also conducting research, development, production and supply of anti-epidemic products such as protective bucket hats and non-medical protective clothing, as well as donating related products and expanding production and supply.
For Pathfinder, competition in the outdoor products industry has become increasingly fierce, especially the Winter Olympics to be held in 2022, which is an opportunity for major sports brands. At present, both Anta and Li Ning have plans in related industries. In March 2019, Anta successfully acquired Amer Sports, which owns many internationally renowned sports and outdoor sports brands.
“The company attaches great importance to the good development opportunities that the 2022 Winter Olympics will bring to the outdoor and related industries, and has made detailed planning and preparations, such as strengthening the research and development and promotion of related products, participating in and serving as A co-implementor of the Ministry of Science and Technology’s National Key R&D Plan ‘Technology Winter Olympics’ key project ‘Key Technologies for Research and Development of High-Performance Clothing for Winter Sports and Training Competitions’, etc. For further planning, please pay attention to the company’s follow-up official website news and official announcements.” Pathfinder Relevant personnel told the China Times reporter.
However, in Cheng Weixiong’s view, although the Winter Olympics will be beneficial to the promotion of outdoor skiing product series, skiing is still only a high-end niche sport in China. For a long time, it has not been associated with skiing venues and The growth of ski sports users is closely related. In addition to Pathfinder, there needs to be pioneer brands like Anta or Li Ning to demonstrate market leadership in the ski segment. </p
