For “men’s Wardrobe” – Hailan home (600398), the tearing feeling of the market has been pushed to the extreme. After mentioning the new spokesman Jay Chou, the third quarterly report of Hailan house arrived as scheduled yesterday. During the reporting period, the company’s revenue decreased by 19.82% year-on-year, and the net profit attributable to shareholders of listed companies decreased by 50.69%. Yesterday, the company’s stock price performance was divided into two halves: capital selling in the morning, with the highest drop of 3.55%; and the entry of funds in the afternoon, with a maximum increase of more than 2%. Continue to weaken or break through the inflection point, the interpretation of the secondary market has been divided. < p > < p > after opening the third quarterly report of Hailan house, a picture of Jay Chou wearing a red coat was put on the front page. However, the company’s performance is not “red”. During the reporting period, the company’s operating revenue reached 11.78 billion yuan, a year-on-year decrease of 19.82%; the net profit attributable to shareholders of listed companies was 1.29 billion yuan, a year-on-year decrease of 50.69%. As for the inventory problem of external concern, the value at the end of the third quarter of 2020 was 8.638 billion yuan, a year-on-year decrease of 8.58%, but the volume is still not small. < p > < p > the three major problems still plague Hailan home, such as high inventory, no increase in revenue and profit, and lack of power of star with goods. If the time line year is extended, the inventory balance of Hailan house at the end of the year will be 9.58 billion yuan, 8.632 billion yuan, 8.493 billion yuan, 9.474 billion yuan and 9.044 billion yuan respectively. Based on this, the outside world jokingly called “men’s wardrobe is becoming men’s warehouse.”. “If the revenue scale does not exceed Hailan’s home, it is not worthy to question Hailan!” “If you are good enough, you are the chairman.” At a regular annual general meeting of shareholders in 2019, chairman Zhou Jianping was also “out of the circle” because he was angry with minority shareholders. < p > < p > in addition, Hailan home achieved 21.97 billion yuan of revenue in 2019, which was the second garment enterprise in China with a revenue of more than 20 billion yuan. However, its net profit attributable to its parent decreased by 7.07% year-on-year. < / P > < p > in recent years, the most eye-catching thing about Hailan home is that the company changes its spokesperson like a horse lantern. From Yin Xiaotian, Du Chun, Lin Xinhua, and then to Zhou Jielun, who was publicized by the government before. Behind it is the increasing cost of sales. From 2012 to 2019, the annual sales expenses of Hailan home increased from 186 million yuan to 2467 million yuan, with the growth rate significantly higher than that of revenue. According to the latest three quarters report, the company’s sales expenses in the first three quarters reached 1.691 billion yuan, up 13.19%; in the third quarter, the sales expenses were 649 million yuan, up 29.8%. The reporter noticed that in the face of the same financial report, before the opening of trading yesterday, some investors called out “the company wants to increase its limit”, while some worried that “the company will fall”. An analyst of a securities company in Shanghai told reporters, “the market may not understand this quarterly report of Hailan house, but the quality of the report has improved significantly.” Specifically, in the first three quarters, the revenue of other brands reached 991 million yuan, with a year-on-year increase of 57.33%, and the line reached 100 million yuan. In addition, in the third quarter, the company achieved revenue of 3.676 billion yuan, a decrease of 7.4%, and a year-on-year decrease of about 3% after excluding the influence of stripped brands; the net profit attributable to the parent company was 343 million yuan, down 30.2%, and the net profit after excluding the impact of investment income increased by 14.7% year-on-year. However, according to private investors in Nanjing, the total revenue of Hailan home is more than 10 billion yuan. Although the growth rate of other brands and online income is considerable, it is largely due to the low base in the early stage. It is understood that in the first three quarters of this year, the company’s overall gross profit margin was 40.06%, down 1.71%, and in the third quarter it was 40.07%, down 1.94%. The gross profit margin of Hailan home series was 39.40%, which was a year-on-year decrease of 3.74%. The reasons are mainly due to the company’s increased promotion efforts during the epidemic prevention and control period and the increase in the proportion of online sales in the first three quarters. < / P > < p > opinions of people in the circle also directly led to the split of the share price of Hailan house yesterday. After opening, the company’s share price hit the lowest point of the day 6.79 yuan half an hour later, down 3.55%. Subsequently, the stock price stabilized and rebounded, with a maximum increase of more than 2%. Finally, it rose slightly by 0.14% to 7.05 yuan. < / P > < p > for the high inventory, the company has previously explained that the inventory includes the inventory in the company’s warehouse and the goods not sold in the stores. At the same time, the products of the main brand Hailan home have been sold for two quarters, resulting in the company’s large inventory scale. In case of unsalable goods in the company’s inventory with returnable terms, they can be returned to the supplier, and the inventory company does not bear the risk of falling price. Finally reflected in the statement, the company’s inventory also has returnable inventory and non returnable inventory. According to previous financial reports, in the first half of 2020, Hailan home’s returnable inventory was 4.417 billion yuan, and the non returnable inventory was 3.986 billion yuan. Haiyi, a subsidiary of Hailan house, has always been responsible for handling unsold goods in stock. The inventory age is more than one year, and the inventory falling price reserves are withdrawn. However, this year’s Haiyi company has been moved to “other brands”, which also means that its inventory operation space has become larger. < / P > < p > what has been questioned by the market is that in addition to a few joint names, Hailan home has never put its mind on the comprehensive research and development of its products. For the new spokesperson Zhou Dong, some netizens also lamented: I don’t know if Jay Chou, who loves to drink milk tea, can make Hailan’s home solve the dilemma? < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. 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