Baoji Footwear Industry Has Achieved 70 Billion 571 Million Yuan In The Second Quarter.

Baoji Dacheng Baocheng has achieved steady growth in the footwear industry and the growth of the channel business. Its revenue in the second quarter reached 70 billion 571 million yuan, an annual increase of 10.21% and a quarterly increase of 13.32%. Looking forward to the third quarter, this season has been the low season for Baocheng in the past. It mainly reflects seasonal orders adjustment of shoemaking customers. At the same time, the channel business is also slightly weaker in the third quarter. But the company expects that the two major businesses of this year will be adjusted by product mix, which will help the third quarter off-season not to be too light, and the fourth season will enter the peak season again. In the third quarter, Baoji usually has a high income from outside the industry. It is expected that the single season profit will remain the best in the year.

Po has become a major manufacturer of global sports and casual shoes. Its main business is international. brand Customer OEM design and manufacturing (ODM), customer base includes Nike , Adidas , Reebok, Asics, New Balance, Puma , Converse Merrell, Salomon, Timberland and so on. Shoemaking business accounts for about 7 of Baocheng's consolidated revenue through the holding of 49.98% of listed company Hongkong Yuyuan (0551.HK). Another core business is sales channel, which runs through Baosheng international operation, which has 61.35% stake in Yuyuan, and runs YY Sports in mainland China and Hong Kong and Macao, while channel business has increased its share of revenue from 25% last year to 30% this year.

Baocheng's shoemaking business is the traditional peak season in the second quarter and the fourth quarter every year. The main reason is that customers' demand is more prosperous due to the sales peak in the months of 4~6 and 10~12, as well as the peak consumption season for large holidays, while the first and third seasons are relatively low season.

Baocheng's self closing revenue in the second quarter of this year was 70 billion 571 million yuan, an annual increase of 10.21% and a quarterly increase of 13.32%, rewriting the highest single season record. The first half of the year was 132 billion 846 million yuan in revenue, an annual increase of 10.8%, and also a record high in the same period.

In the second quarter, Baocheng's revenue has gone up. In addition to the steady growth of shoemaking business, sales channel business has also continued to carry out exhibitions, and has been pushing closer to the market to launch better sales products.

The legal person estimates that the second quarter gross profit margin of Baocheng has the opportunity to maintain the relatively high water level in the first quarter. The single season EPS has the opportunity to approach the 1 yuan mark, which is better than the 0.71 yuan in the previous quarter and is significantly better than the 0.39 yuan in the same period last year.

Looking forward to the third quarter, this season used to be the relatively low season of Baocheng, but the company expects that the company will make a product mix adjustment this year. There are also fourth Indonesian plants and the completion of the new plant in Burma this season.

It is understood that after the completion of the Burma plant, the monthly production capacity will reach 300 thousand pairs in the first stage, while the four factory in India will specialize in the production of Nike shoes. The cooperation between Nike and Nike will be strengthened and the penetration rate of Nike orders will be enhanced. The legal person estimates that Baoji's combined revenue will only drop by one digit percentage point this season, but the profit will be 1.3 yuan in the single quarter profit, and will be the best in the year.

The fourth season is the traditional peak season for Baocheng's shoe making business, and its operation will reach its peak. Baocheng said that this year the company's view of maintaining a smooth growth of operations, in the second half of this year, new capacity has been added, the peak season can drive the company's business peak.

The company estimates that this year, Baocheng shoe-making business has a slight increase of 3% in the volume of shipments under the new capacity, while Baosheng road will continue to grow. It will drive the overall revenue growth by 10%. If the Nanshan life insurance investment is substantially increased, Baocheng will return to EPS above this year's 3 yuan mark, and have the opportunity to break through 3.5 yuan and approach 4 yuan.