Hui Jie Shares The Establishment Of A Wholly Owned Subsidiary Of The United States To Enhance Its International Competitiveness.

The announcement shows that the wholly-owned subsidiary of Hui Jie shares in the United States is HUIJIEFASHIONLLC, which is registered in New York.

It covers the design, development and sale of clothing, shoes, boxes, bags and other related products.

Hui Jie shares said earlier that the purpose of the external investment is to actively implement the company's overseas development strategy.

The establishment of subsidiaries in the United States can further promote the exchange and cooperation between the company and the North American market, speed up the internationalization process of the company, establish and enhance the international image of the company, and enhance the international competitiveness of the company.

According to the financial report, in the first three quarters of 2018, Hui Jie shares achieved an operating income of 1 billion 684 million yuan, an increase of 9.42% over the same period last year. The net profit attributable to the parent company was 180 million yuan, down 20.73% from the same period last year.

The three quarter single quarter revenue and net profit attributable to the parent company were 533 million yuan and 245 thousand and 800 yuan respectively. The single quarter growth rate was 5.98% and -99.50% respectively, slower than the 11.09% quarter and 1.30% growth rate in the two quarter. The main reason for the slowdown was the Manifen liquidation of the subsidiary company of Shantou in the three quarter. The cost of dismissal welfare was 38 million 111 thousand and 900 yuan, resulting in a larger non recurrent loss and a drag on the growth of net profit attributable to the parent company.

GF Securities analyst Mi Hanjie analysis, Hui Jie shares in recent years, revenue and net profit growth trend, the 2012-2017 year operating income compound growth rate of 9.59%, belonging to the parent company's net profit compound growth rate of 19.57%.

The company's gross margin level is relatively stable, and has remained at around 70% level, and the annual rate of expenditure has been decreasing year by year. So the net profit margin has been increasing year by year in recent years. The net profit margin of sales has increased from 7.34% in 2013 to 11.23% in 2017, and the net sales rate in the first three quarters of 2018 is 12.24%.

The decrease in the cost rate during the period was mainly due to a downward trend in the sales cost rate and the financial cost rate of Hui Jie share in recent years. The sales cost rate dropped from 43.75% in 2013 to 37.55% in 2017. The financial cost rate dropped from 2.70% in 2013 to -0.29% in 2017, and the management fee rate was relatively stable.

In addition, MI Han Jie admitted that there are many companies in the underwear industry. If Hui Jie shares can not deal with market competition, they will face operational risks. In addition, the company has 8 brands at present, requiring higher requirements in terms of capital, personnel and management, and so on.