Table line earnings analysis

We have introduced several of the more active watch retailers in Greater China ( "Watch") through a number of articles. Today we will interpret the seven listed table by the financial data to do a summary of the table line of business analysis, I believe you will read the table after the replica watches industry's business logic will have a more in-depth understanding. First, sales revenue and gross margin Doing any business, the most important thing is to see how much money the business can make. We have the following seven listed on the table the latest financial statements, compared to the following their sales revenue and gross margin. These seven are basically listed companies in Hong Kong, according to the relevant provisions of the Hong Kong Securities and Futures Commission, they disclose sales revenue, are excluding value-added tax and withholding taxes and sales tax rebates, returns and other net income. Which we disclose the income of Hong Kong dollars in accordance with the exchange rate of 0.8: 1 unified conversion, the East Table and Guan Ya watches the city is in accordance with their latest semi-annual report a simple conversion, Chow Tai Fook's annual report deadline for March 31, Did not disclose the gross profit margin of the watch business, here is the company's overall gross margin, for comparison. Code In this case, Comparison down, basically the size of the product line is well-proportioned distribution of large table gross margins are between 26-28%. Mainly fashion-friendly people-oriented brand of time Gallery is a higher gross margin, which is our annual report in Harmony (Fiyta) found similar fashion product line gross margin. This shows that instead of low-priced watch, because dealers have to pay the cost of sales (shop operating costs, labor costs) down to be higher, so the faithful were dealers to earn more profits. While the East Table line gross margin is also low with the old store discount promotions are more matched. In addition, the mainland-based Harmony, its gross margin is almost the same with several competitors in Hong Kong, but in the cost side of the import uk replica watches in Hong Kong do not need to bear such a high tariff, indicating that the basic cost of tariffs Were all passed on to the majority of consumers in the Mainland to buy the table. Second, the cost ratio and net profit margin The above gross margin mainly from the table line of the sales price difference, that is, from Switzerland, Germany, Japan and other watch factory after wholesale purchase (often in the annual Basel table after the start of the bulk purchase of new table), sold to consumers Of the direct profit rate (excluding all taxes paid). Access to these profits, and can not be directly loaded into the table line of the boss's pocket, but because the major table in large and medium-sized cities to open a wide range of retail stores, hire sales staff, and need to pay a variety of costs. Here we take a look at rolex replica uk the ratio of these costs, as well as to the shareholders pocket to the net profit about how many. (Chow Tai Fook watches and clocks business accounted for only 5%, so the data are not listed separately, here to get rid of the first, mainly to facilitate the table to you to provide accurate figures) Visible table the day of the line is not so much better, like the East and the table sub-table city crown, after deducting all the costs, basically do not make money or even a loss. The Hendry and King's jewelry a little better, net profit margin (net profit divided by sales revenue) can reach 7.8% and 6.1%. Such as the time Gallery and Harmony's net profit margin is only 3-4%, the feeling is not as good as the people themselves to earn more money. Of course, doing business and their own spare cash care is difficult to analogy, but overall, because of the high rent of prime locations and the gradual increase in wages, table line boss is not so profitable. Third, the capital operation - cash, loans, inventory, accounts receivable and payable Roughly read the table line of the income statement, we look at the table line of assets and liabilities and cash flow, where only a few watches listed a higher proportion of retailers. From the above table we can see that each table line of cash stock are basically supported by bank loans, while the amount of inventory is very large, basically half of annual sales, while the table line of accounts payable accounts for the overall sales revenue Of the proportion is relatively low. This shows that the table line from the manufacturers getting goods in cash to pay each other, while using their own funds to maintain about half a year of sales of inventory, its sales are characterized by low inventory turnover in the watch industry chain discourse The right is not high, the need to operate Dianzi. Fourth, from the financial figures to see the characteristics of the industry The following is the author to read these financial statements can feel the characteristics of the industry: 1. Table line need large-scale Dianzi operators 2. There are generally about 20% of the size of the sale of short-term borrowings 3. Inventory turnover rate close to 2, much lower than the ordinary retail format 4. Almost no accounts payable, that is, need to pay cash to the brand 5. Gross margins generally 25%, net profit margins generally do 8% is very good 6. The top five suppliers generally accounted for about 85% of the total procurement, brand business right to speak high