Securities code: Modern Avenue Group Co.Ltd(002656) securities abbreviation: St modern Announcement No.: 2022030 Modern Avenue Group Co.Ltd(002656)
Summary of annual report 2021
1、 Important note: the summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should carefully read the full text of the annual report in the media designated by the CSRC. All directors have attended the meeting of the board of directors to consider this report. Tips for non-standard audit opinions √ applicable □ not applicable. China audit Zhonghuan Certified Public Accountants (special general partnership) has issued an audit report with qualified opinions for the company. The board of directors and the board of supervisors of the company have made detailed explanations on relevant matters, which should be read carefully by investors. The profit distribution plan of common stock or the plan of converting accumulation fund into share capital in the reporting period reviewed by the board of directors □ applicable √ not applicable. The company plans not to distribute cash dividends, bonus shares or convert accumulation fund into share capital. Preferred stock profit distribution plan for the reporting period adopted by the board of directors □ applicable √ not applicable II. Basic information of the company 1. Company profile
Stock abbreviation: St modern stock code: Modern Avenue Group Co.Ltd(002656)
Shenzhen Stock Exchange
Contact person and contact information secretary of the board of directors securities affairs representative
Name Weng Wenfang
Office address: building A1, No. 23, spectrum Middle Road, Science City, Huangpu District, Guangzhou
Fax 02037883955
Tel: 02087529999
E-mail [email protected].
2. Introduction to main business or products during the reporting period
(I) industry in the reporting period
1. Social consumption is gradually recovering, and offline retail has not yet warmed up
After the outbreak in early 2020, China’s economic growth slowed down. In 2020, the gross national product (GDP) was 101.4 trillion, an increase of 2.74% over 2019 and a significant decrease compared with the growth rate of 7.31% in 2019; CPI growth slowed down and declined at the end of 2020, and clothing CPI showed a downward trend. The total retail sales of social consumer goods decreased by 15.8% year-on-year in March 2020 and 1.66% year-on-year in the whole year; The retail value of clothing, shoes and hats, needles and textile commodities also fell sharply in the same month, with a decline of 34.80%, and a year-on-year decline of 3.40%.
In 2021, under the scientific and strict epidemic prevention policy, China’s epidemic prevention and control achieved certain results, the resumption of work and production was carried out in an orderly manner, and residents’ consumption gradually recovered. GDP growth reached 12.84%, CPI growth recovered steadily, and clothing CPI also increased slightly. The total social retail sales increased by 9.19% year-on-year, and the retail value of clothing commodities increased by 6.69% year-on-year, basically returning to the pre epidemic level. But on the whole, the epidemic situation outside China is still severe. The epidemic situation in many places in China has made a comeback. The passenger flow of major shopping malls and shopping centers is controlled by the prevention and control policy, and the passenger flow has decreased significantly, which has brought great pressure to the operation of offline stores. Figure 1: data source of total retail sales of social consumer goods: Hithink Royalflush Information Network Co.Ltd(300033) ifind, modern Avenue fashion group
Figure 2: retail value of clothing, shoes and hats, needles and textiles Figure 3: CPI and clothing CPI
Data source: Hithink Royalflush Information Network Co.Ltd(300033) ifind, modern Avenue fashion group data source: Hithink Royalflush Information Network Co.Ltd(300033) ifind, modern Avenue fashion group
2. The clothing industry shows development resilience and the brand cultural attribute is enhanced
Clothing, as an indispensable part of residents’ necessities of life, “clothing, food, housing and transportation”, has struggled to maintain the vitality of the industry in the epidemic, and continuously explored more business modes in the post epidemic era, showing tenacious and sustainable development resilience. At the same time, the atmosphere of the people of the whole country fighting the epidemic, making concerted efforts to assist flood stricken areas in Henan and successfully hosting the Winter Olympic Games also brought more national confidence to consumers. At this time, the cultural attribute of the brand is more significant than before, the design integrating Chinese traditional elements is more favored by consumers, and the social responsibility of enterprises is also included in the consideration of product selection.
(II) main business and product introduction
The company’s main business is the R & D and design, outsourcing production, brand promotion and terminal sales of its own brand canudilo senior men’s clothing, as well as the agency business of international first-line fragrance and clothing brands. Adhering to the international high-end brand operation concept and relying on the company’s long-term accumulated brand operation experience, the company is committed to brand resource integration, marketing network construction, brand promotion and supply chain management, continuously improve the standardized operation level of its own brand and international agent brand, and build itself into an industry-leading global fashion brand operator.
1. Canudilo brand operation business
The company’s own brand canudilo is committed to taking the leading fashion culture and design concept as the guide, combining artistry and practicality, and launching a series of natural, simple, exquisite and fashionable clothing products. The brand takes the national treasure panda as the main concept image for innovative design, deeply cultivates Chinese culture, injects Chinese elements into the design, and seeks innovation and breakthrough in inheriting classics. In terms of product fabrics, on the one hand, it is mainly made of natural materials such as domestic Xinjiang cotton and mulberry silk, combined with scientific and technological fabrics such as anti wrinkle, antibacterial, anti pollution and dirt resistance, instantaneous cooling feeling, so as to improve the quality and comfort of clothes and increase the application scene of products. On the other hand, cooperate with international high-end fabric manufacturers to improve the overall sense of quality of fabrics. In the future, we will continue to cultivate Chinese traditional fabric technology, launch joint series with China’s top craftsmen, and spread excellent traditional crafts and fabric production.
Canudilo brand customers are targeted at high net worth people aged 35-50. They do not blindly pursue fashion in the pursuit of high-quality product consumption. With the concept of “the wind comes from the East” and the panda pattern as the carrier, the brand continues to spread Chinese culture.
2. International fragrance and clothing brand agency business
The company has set up many shops in Parisians, Londoners and Venetians under Macao sands group to carry out the agency business of international first-line brands. Among them, Antonia, a top fashion buyer’s shop located in Paris, covers an area of about 1500 square meters, and its cooperative international brands include: Saint laurentparis, Balenciaga, burrerry, Chlo É, Balmain, Versace, sacai, Calvin Klein, valextra, Kenzo, off-white and other brands; Esscents, a London based fragrance shop, has been authorized by Bvlgari, giorgioarmani, Estee Lauder, Lancome, Shiseido, SK – Ⅱ, YSL, HR, Hugo Boss and other international brands.
In addition to this store, there are also new brands such as cakers and cakbicks in Macao.
3. Technology sector business
The company’s subsidiary Wuhan yueranxin Network Technology Co., Ltd. is mainly engaged in the development and operation of mobile Internet applications. It is a network technology company wholly acquired from Yan Qinghua, Liu Jinzhu, Zhao Wei, Chen Guoxing and others by the company in signing the agreement on issuing shares and paying cash to purchase assets in October 2016. Due to the sharp decline of yueranxin’s performance and the continuous expansion of losses, in April 2021, the company planned to start a special audit of yueranxin’s original management team, but it refused to hand over part of the company’s data and resisted the data handover and investigation by closing the office space and stopping business activities. So far, the company determined that part of the data of the subsidiary was out of control. In July 2021, the company appointed personnel to take over the office space of yueranxin and its subordinate companies. Under the coordination of its property management company and the local public security police station, the company appointed personnel to hand over the above uncontrolled data with the original management team of yueranxin. At present, the company is verifying the authenticity and integrity of the handed over data. Since most employees of yueranxin and its subsidiaries have been dismissed before the end of April 2021, the main business has basically stagnated. In order to reduce the operating costs under the current situation, the company will return the original rental office and re lease a smaller office. At present, the registered address of yueranxin and its main subsidiaries has been changed to the new office address. Since the business of yueranxin and its subsidiaries has basically stagnated, it is less likely to resume normal operation in the future. The company will deal with yueranxin and its subsidiaries as appropriate to minimize the continuous impact on the company’s performance. (III) main business operation mode
1. Private brand operation business model
For its own brand canudilo, the company will focus on fashion design and R & D, brand operation publicity and channel retail promotion, focusing on improving the core competitiveness of products and improving brand awareness and added value. The production, logistics and transportation of fabrics and clothes are outsourced, and professional factories and suppliers are responsible. The product sales adopts the combination of direct marketing and franchise, and the full layout of offline stores and online shopping malls. The company provides goods uniformly, which not only ensures the product quality, but also reaches the consumer groups in more regions.
Private brand products can be divided into sweaters, T-Shirts, suits, jackets, windbreaker, down, fur, trousers and accessories by category. Large-scale on-site new product press conferences and ordering meetings are held twice a year to intuitively show the goods of autumn, winter / spring and summer in the form of show press conferences and the latest Si space stores, supplemented by designers’ introduction and explanation of colors, processes and fabrics. Franchisees and direct stores can place orders on site.
2. Agent brand operation business model
In terms of international brand agency, clothing and fragrance agency brands adopt the single store agency mode, which is directly purchased by the company from the brand party or its authorized party, and sold in the agency brand stores opened by the company. The company cooperates with the famous fashion buyer brand Antonia to open physical stores in Macao to create a whole process sales system integrating brands, selected goods, new products on the shelves and off-season commodity discount processing. 3. Main accounting data and financial indicators (1) whether the company needs to retroactively adjust or restate the accounting data of previous years in recent three years □ yes √ no
Unit: Yuan
Year end 2021 year end 2020 year end increase or decrease over the previous year year end 2019 year end
Total assets 111042087721119940762200 – 7.42% 187210968727
Net assets attributable to shareholders of the listed company 7495149672475952796059 – 1.32% 76053 Dong Yi Ri Sheng Home Decoration Group Co.Ltd(002713)
20212020 year-on-year increase or decrease 2019
Operating income 3852254443051194937731 – 24.75% 137174103252
Net profit attributable to shareholders of the listed company -2070627758731753032 -382.97% – 146835996288
Net profit attributable to shareholders of listed companies after deducting non recurring profit and loss of -10620717183 -23844376709 55.46% – 119621662923
Net cash flow from operating activities 16267287640 -17208090688 194.53% 3824587717
Basic earnings per share (yuan / share) -0.0291 0.0103 -382.52% – 2.0608
Diluted earnings per share (yuan / share) -0.0291 0.0103 -382.52% – 2.0608
Weighted average return on net assets -2.73%, 0.96% – 3.69% – 95.00%
(2) Quarterly main accounting data
