Hongxing Sports Has Not Yet Come Out Of The Deficit, With A Net Loss Of 72 Million 900 Thousand Yuan In The First Half Year.

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< p > > China a href= "//www.sjfzxm.com/news/index_c.asp" > Hongxing sports < /a > Limited (hereinafter referred to as "Hongxing sports") released the first half of 2012 earnings report, the company's equity holders should account for a net loss of 72 million 900 thousand yuan, a decrease of about 72% in the same period last year, and trade receivables and other indicators have improved, but the company expects that the next 12 months will also be faced with no small pressure.

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< p > Hongxing sports since the end of February 2011, due to a large number of false cash increase and other issues, the company's stock trading stopped so far, this newspaper has reported that Hongxing sports CEO Wu Rongzhao and other management have made a resignation.

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< p > the latest financial results show that as of the first half of June 30th this year, Hongxing sports earned 1 billion 271 million yuan, an increase of 26% compared with the same period last year, of which sports a href= "//www.sjfzxm.com/" target= "_blank" > shoes < /a > products achieved 587 million yuan, and the movement of a href= "//www.sjfzxm.com/" target= "//www.sjfzxm.com/" > clothing > products achieved 682 million yuan, up 60.9% and 6.7%, respectively, but the income of accessories products decreased by 56.7% over the same period.

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< p > Hongxing sports has greatly slowed down the expansion of shop opening.

In the first half of this year, the number of "Erke" brand stores sold by Hongxing sports company was 6435, compared with 6278 at the end of 2011, only about 157 stores were added.

In the first half of 2011, the cost of Hongxing sports to expand sales network reached 205 million yuan. In the first half of this year, it only spent 53 million 200 thousand yuan, a sharp decrease of about 150 million yuan. The reduction of the opening shop cost helped Hongxing sports to reduce the amount of < A href= "//www.sjfzxm.com/news/index_cj.asp" > loss < /a >.

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< p > some other business indicators also show that Hongxing sports business has signs of stabilization.

In the first half of this year, Hongxing sports inventories increased slightly from 2.3% to 394 million yuan, reflecting another indicator of inventory level. Trade receivables amounted to 947 million yuan, compared with 1 billion 359 million yuan in the same period last year, a decrease of 30.3% over the same period last year. The turnover time of inventory was changed from 182 days in 2011 fiscal year to 116 days in the first half of this year.

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< p > according to the figures released before, in the 2010 fiscal year, Hongxing sports lost 1 billion 635 million yuan. In the 2012 fiscal year, Hongxing sports had greater pressure to reverse the performance.

In the first half of this year, Hongxing sports gross profit rate was 16.3%, compared to 22.7% last year, and the overall profit of Hongxing sports has not yet come out of deficit due to the decline in gross margin and the cost of restructuring sales channels.

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< p > Hongxing sports said publicly that at present, China's "a href=" //www.sjfzxm.com/news/index_s.asp "sports goods < /a" has many market competitors. The company will still face many challenges in the next 12 months, but the company will continue to invest more in the construction of the sales network. However, the investment will be reduced due to the overall market environment.

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