Revenue growth of core products Fujian Septwolves Industry Co.Ltd(002029) 2021 net profit increased by 10.65% year on year

Fujian Septwolves Industry Co.Ltd(002029) ( Fujian Septwolves Industry Co.Ltd(002029) . SZ) announced on April 2 that in 2021, the company achieved an operating revenue of about 3.514 billion yuan, an increase of 5.52% year-on-year; The net profit attributable to the shareholders of the listed company was about 231 million yuan, an increase of 10.65% year-on-year; The basic earnings per share was 0.32 yuan, a year-on-year increase of 14.29%. The company plans not to distribute cash dividends, bonus shares or increase share capital with provident fund.

Fujian Septwolves Industry Co.Ltd(002029) is mainly engaged in the design, production and sales of ” Fujian Septwolves Industry Co.Ltd(002029) ” brand men’s clothing and knitwear products. The main products include shirts, suits, trousers, jackets, knitwear, men’s underwear, underwear, socks and other knitwear products. In recent years, in addition to the main standard ” Fujian Septwolves Industry Co.Ltd(002029) ” products, the company also operates the international light luxury brand “Karl Lagerfeld”.

In terms of products, coat products are the main source of the company’s operating revenue, accounting for 22.52% of the operating revenue, with a total revenue of 791 million yuan, a year-on-year increase of 3.11% and a gross profit margin of 49.82%; The operating revenue of sweater products was 187 million yuan, with a year-on-year increase of 15.55% and a gross profit margin of 58.19%; The gross profit rate of pants products was 4.48 billion yuan, a year-on-year increase of 4.74%; T-shirt products achieved an operating revenue of 468 million yuan, a year-on-year decrease of 2.13% and a gross profit margin of 54.84%.

Although the company’s revenue and net profit during the period have increased compared with 2020, the net profit has not recovered to the level before 2020. The annual report shows that in 2019 and 2020, Fujian Septwolves Industry Co.Ltd(002029) the net profit attributable to shareholders of listed companies was 347 million yuan and 209 million yuan respectively.

It is worth noting that in 2021, the company’s “Karl Lagerfeld” brand turned losses into profits, the brand sales revenue reached 279 million yuan, an increase of 107.32% year-on-year, and the net profit was 112036 million yuan Fujian Septwolves Industry Co.Ltd(002029) said that in the future, the company will continue to deepen the operation and management of “Karl Lagerfeld” and accumulate experience around the operation of new brands, so as to drive the company to take new steps in investment in the fashion field and realize new profit growth points.

During the reporting period, the operating cost of Fujian Septwolves Industry Co.Ltd(002029) was 1.892 billion, a year-on-year decrease of 0.87%, the operating revenue increased by 5.52%, and the gross profit margin increased by 3.47 percentage points. Among them, the operating cost of coats decreased by 8.53% year-on-year, and the gross profit margin increased by 6.39 percentage points over the previous year; The operating cost of sweaters decreased by 0.10% year-on-year, and the gross profit margin increased by 6.54 percentage points over the previous year.

In terms of cash flow, the net cash flow from the company’s operating activities in the reporting period was 545 million yuan, higher than the net profit of the current year, mainly due to the large amount of amortized expenses of long-term assets in the reporting period. The cash flow from investment activities was a net outflow of 968 million yuan, a significant increase of 620.66% over the net outflow of 134 million yuan in the same period of last year, mainly due to the large amount of time deposits invested in the reporting period; The net cash flow from financing activities was 595 million yuan, an increase of 271.10% over the same period of last year, mainly due to the company’s obtaining more bill discount during the reporting period.

Fujian Septwolves Industry Co.Ltd(002029) said in the annual report that in 2022, the company will reshape the brand with wolf culture as the core, clarify the brand positioning and content structure, and optimize the communication content of various channels in combination with the macro environment, industry trends and the actual situation of the company. Consolidate the capital and accumulate power, and improve the operation capacity through the steady expansion of channels and intensive cultivation. Build a full link digital and agile supply chain, enhance the core competitiveness of products, empower brands, and achieve co creation, sharing and win-win with partners. Establish benchmark stores, expand channels based on city classification on the basis of standardized store model, lay out e-commerce channels, and build a standard retail operation system under Wuxi Online Offline Communication Information Technology Co.Ltd(300959) unified management. We will continue to focus on investment in the ecological chain of fashion industry, explore high-quality projects with ingenuity, IP culture, profound brand power and product power, and build a fashion industry ecosystem.

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