Ding Shuibo Increased 4 Million Shares Of XTEP Cash Flow Control Capability Increased To 4 Billion

The actual controller's holdings of shares indicate confidence in the company's business and development prospects. Ding Shuibo's holdings have a positive effect on XTEP's share price.

XTEP International (Stock Code: HK1368, hereinafter referred to as XTEP) chairman and CEO Ding Shui Bo, the latest number of holdings is 1 billion 341 million 250 thousand shares, on May 3rd, 4, 7, 8, respectively, increased 1 million shares, 4 days, a total of 4 million shares, accounting for shares rose from 59.84% to 60.02%.

The actual controller's holdings of shares indicate confidence in the company's business and development prospects. Ding Shuibo's holdings have a positive effect on XTEP's share price.

It is worth mentioning that XTEP's three year pformation has been completed.

First, the pformation of retail terminal is basically completed.

It is understood that in 2017, XTEP made a flat adjustment to the terminal retail system, and encouraged the exclusive agent to pform from wholesaler to retailer. 60% of the shops were directly owned by exclusive distributor and the rest were operated by franchisees.

The pformation of the retail terminal has basically been completed and the results have been highlighted.

The adjustment of the retail terminal pformation system has a direct impact on the sales of retail outlets.

In April 9th, XTEP announced the first quarter of 2018 business performance: the average store sales performance (at retail value) compared with the same period in 2017 low double-digit growth.

Retail discounts remained at a low 7.5-8 discount, while retail inventories remained at a healthy level for about 4 months.

Same store sales reflect the sales performance of a physical store longer than a year.

These shops account for about 70% of the total number of XTEP brand stores.

Two, business performance eye-catching

The electricity supplier plate has become the new growth point of XTEP's performance.

It is understood that in the first half of 2017, XTEP's electricity revenue accounted for about 20% of the total revenue, accounting for a continuous lead in the domestic competitors.

XTEP believes that the electricity business has made brilliant achievements. The O2O system on line in 2016 has provided another sales channel for offline distributors to achieve inventory sharing and speed up sales, which has increased its revenue and net profit.

Online and offline retail channels are the main channel to maximize the profitability of XTEP.

Three, positioning professional sports fashion brand

Ding Shuibo, the head of XTEP, pformed the pformation of the past three years into that of the writers: XTEP shifted from "fashion sports" to "Sports" on the brand.

And then to the latest "professional sports fashion", and establish a closed loop around running, adjust the agent structure and enhance store efficiency in the retail channel. After these "decoration" highlights, we can finish the cleaning up by buyback, and then live in a completely new look.

In the past three years, XTEP has been upgrading its overall business performance by shutting down poor performance shops, and upgrading the image of the remaining stores. Up to now, more than half of XTEP shops have been pformed into the new 6S generation sports image.

Four, 2017 pformation effect is better than expected.

In April 3rd, XTEP released the 2017 annual report: the annual income was 5 billion 113 million yuan, 5.2% of the year-on-year decline, and the net profit of the female was 408 million, which was 22.7% over the same period.

Three years of reform have been completed, but the optimistic XTEP has been low-key.

In 2017, XTEP children's business contributed little to the group, and it almost became "chicken ribs".

The taste of XTEP's children's cake is five flavors.

As of December 31, 2017, XTEP children's department sales point maintained 250, based on this, in 2018, XTEP made a low-key attitude towards child business expansion. At the end of 2017, there were about 250 children's stores in XTEP, and the number of stores in 2018 will remain unchanged.

Children's business expansion has slowed down, and the impact on performance has weakened.

XTEP has not only completed its pformation, but also improved its cash flow control capability.

At the end of 2017, XTEP's net cash and cash equivalents amounted to 2 billion 933 million 800 thousand yuan, equivalent to 55.1% of net assets.

At present, XTEP has a cash flow of about 4 billion yuan.

The strong cash flow means that XTEP is in good condition. For this year's acquisition plan, Ding Shuibo said that the direction is related to the main business, and the principle of prudent acquisition is still adopted. The end of 2018 will have the final result.

In 2018, XTEP was confident of achieving stronger financial performance and cash flow.

Ding Shuibo expressed his optimism about XTEP's future and might continue to increase its holdings in the future.