A few days ago, Shinur (002485) officially changed its name to Cedar Development. In June 2017, Cedar Culture and Tourism acquired 63.62% of the shares of Shinur from its groom Shinur for 4.2 billion yuan and became the new shareholder of Shinur. On July 28, 2017, it was changed to Guangzhou Cedar Cultural Tourism Investment Co., Ltd., and the actual controller was changed to Zhang Jin. Earlier speculation by industry insiders that Shinur might become a backdoor tool for Cedar has now become a “reality”.
(Announcement from Shinur)
Traditional clothing companies transformed into cultural tourism companies
As we all know, Shinur was originally a clothing company, with its main business being the R&D, production and sales of suits, shirts and other clothing products. . Regarding the change of the company’s name, Shinur said that it was due to changes in the company’s main business in recent years.
It is reported that in 2018, Shinur expanded its cultural tourism business; in 2020, it added supply chain management and comprehensive service businesses, and adjusted its clothing business development strategy. In March and December 2020, 100% equity of the original clothing production subsidiary Zhucheng Planniao Men’s Clothing Co., Ltd. and the original clothing sales subsidiary Shandong Shinur Men’s Clothing Co., Ltd. (hereinafter referred to as “Shandong Shinur”) was transferred to external parties; in 2021 , while the company actively resumes its cultural tourism business and rapidly develops supply chain management and comprehensive service businesses, it insists on the parallel development of multiple main businesses, which is conducive to enhancing its comprehensive strength, resisting short- and medium-term risks, and promoting the long-term and stable development of the company’s operations.
The changes in its main business can also be seen from the financial data previously released by Shinur. In 2019, the company’s tourism business achieved revenue of 2.596 billion yuan, accounting for 10% of the revenue. The proportion is as high as 72%.
The industry dilemma behind the transformation
In fact, Shinur’s transformation In fact, it also implies the current difficulties faced by the entire clothing industry.
As brands in different clothing segments, companies such as Meibang Apparel, Semir, La Chapelle, and Shinur have passed the maturity stage and are currently in the decline stage. At this stage, the input-output ratio decreases, sales decline instead of increase, business scale is shrinking, gross profit is also declining, and the final product is abandoned by the market. Secondary market operating performance, operating profits and market value experienced three declines.
The law is like this. If you don’t increase investment, your business will shrink. If you increase investment, the input-output ratio will be low, gross profit will also decrease, and your business will shrink. In the end, the traditional clothing industry has almost no chance of getting out of the predicament.
In fact, as an enterprise integrating the design, production and sales of suits, shirts and apparel products, Shinur has been selling off assets to cover up its business in recent years. Its performance is dismal.
(The company suffered losses after deducting non-net profits for three consecutive years from 2014 to 2016)
In the ten years from 2011 to 2020, Shinur’s net profit achieved positive growth in only three years, and the company’s net profit fell sharply in the remaining eight years. It is worth noting that in 2015 and 2016, Shinur’s net profits were 23 million yuan and 7 million yuan respectively, but the profits were achieved by selling assets in the two years.
The reporter looked through the historical financial reports of Shinur and found that in 2015, Shinur sold its Beijing shops and contributed more than 100 million yuan to profits; in 2016, it sold houses and other assets again, The profit was about 45 million yuan. In other words, if the proceeds from the sale of assets such as shops and houses are excluded, Shinur suffered losses for three consecutive years from 2014 to 2016.
Based on this, the market at that time generally believed that the reason why Shinur maintained a weak profit was only as a means to protect its shell. </p
