Shanshan apparel sector shows slipping (China)

Recently, Ningbo Shanshan Co., Ltd announced the semi-annual report in its men’s apparel sector, which showed that the performance in the first half of 2012 was not satisfactory. While the net profits of Septwolves reached 0.246bln yuan, an increase of 41.72% year on year.

The semi-annual report presented that the revenue of apparel business was 0.789bln yuan, up 16.57% y-o-y; the profit rate was 25.92%, a fall of 3.21% y-o-y; the net profits were 4.06mln yuan, a steep drop of 73.06% from 15.07mln yuan last year.

However, also as a men’s apparel enterprise, the main income of Septwolves was 1.371bln yuan in H1, 2012, an increase of 26.22% y-o-y. The gross profits rate approached 44.53%, up 2.54% y-o-y and the net profits approached 0.246bln yuan, an upswing of 41.72% y-o-y.

Then, Shanshan said that the slipping of the net profits was mainly caused by the sluggish economy both at home and abroad and the integration of the company, which made the periodical expenditure high and surely influenced the short-term profits.