Chinese apparel enterprises still forging ahead under pressure

Recently, Chinese listed apparel companies released their Q3 performance reports. Against the backdrop of rational consumption, the apparel enterprises continue to "forge ahead under pressure," with most failing to escape the mire of negative profit growth. This article selects 12 major listed apparel enterprises as samples to gain insights into trends.

The total revenue of the 12 apparel companies reached 51.971 billion yuan in the first three quarters, a YoY decrease of 4.03%. In terms of revenue growth rate, only 3 companies (HLA, Semir, and Lancy) achieved slight YoY growth. The other 9 saw significant YoY declines, with 4 companies (Youngor, Hodo, Metersbonwe, and Busen) recording double-digit drops.

The total net profit of the 12 apparel companies reached 6.535 billion yuan in the first three quarters, a YoY increase of 2.99%. Their total non-recurring net profit was about 4.733 billion yuan, a YoY decrease of 14.06%. Four companies (Busen, Peacebird, Metersbonwe, and Hodo) reported non-recurring net losses, while the other 8 achieved profitability. However, only 2 companies (HLA and Ellassay) recorded YoY growth in non-recurring net profit, with the rest seeing declines.

In summary, amid volatile macroeconomic conditions, especially the escalating China-US trade frictions, insufficient effective market demand and weak expectations have weighed on China's apparel industry, leading to significant performance pressure. Among the 12 sampled companies, only 3 (HLA, Semir, and Lancy) achieved slight YoY revenue growth, while the other 9 saw significant declines (4 with double-digit drops). Four companies reported non-recurring net losses, and only 2 achieved YoY growth in non-recurring net profit, with Hodo's losses further expanding. Additionally, the average inventory turnover days and average asset-liability ratio of the 12 companies continued to rise, indicating that the industry as a whole is still "forging ahead under pressure."