Hai Lan'S Home Is More Than 8 Billion Inventory Zero Preparation For The Price Decline, Profit Gold Content Geometry?

Hai Lan's home has disclosed the annual report of 2018, which has achieved 19 billion 90 million yuan in operating income, an increase of 4.89% over the same period of last year, a net profit of 3 billion 455 million yuan, an increase of 3.78% over the same period last year, and a net profit of 32.68 billion after deducting the net profit, down 0.63% from the same period last year.

The company's revenue increased slightly, but the net profit after deducting the net income dropped slightly.

From the analysis of financial data, this is largely due to the increase in the provision of inventory depreciation in the reporting period, and the loss in inventory prices is about 359 million yuan, an increase of 191.61% over the previous year.

Industry comparison shows that although the loss of company's inventory price has increased substantially compared with that in 2017, the inventory depreciation rate is not high in the same industry listed companies.

According to the financial report, by the end of 2018, the company had a stock of 9 billion 474 million yuan, and the loss of inventory depreciation was less than 4% of the inventory at the end of the year.

The average value of the 13 listed companies in the 2018 annual report of the same industry was 7.81%, with a median of 5.49%.

Hai Lan's home, regardless of its revenue or market value, ranks among the forefront of the industry.

What is the reason for the relatively high inventory price and relatively low loss loss?

Further reading of the financial report found that Hai Lan's home has a considerable proportion of inventory, and the depreciation rate is zero.

This is an important reason for the lower proportion of the company's overall inventory fall.

What is the policy basis for the company's inventory depreciation? Is it reasonable? What is the impact on net profit?

No more than 4 billion 900 million "returnable commodities"

According to the annual report, the product of the company's retail brand is directly purchased from the supplier, and the procurement cooperation mode includes two types: the non returnable mode and the returnable mode.

Among them, a stock with a return clause is not required to make provision for the depreciation of inventory.

Then, how much does the goods with a return clause occupy in the company's stock?

According to the financial report, by the end of 2018, there were about 4 billion 923 million yuan in the terms of the returnable provisions, accounting for 51.97% of the book value of the final inventory.

According to the accounting standards for Enterprises No. first - inventory, on the balance sheet date, inventory should be measured at the lowest cost and net realizable value.

If the inventory cost is higher than the net realizable value, the provision for the depreciation of the inventory shall be taken into account in the current profits and losses.

According to the information disclosed in the annual report, if the ownership of the goods with the return clause is in the company and stored in the company's warehouse, is it reasonable to reserve the price for this part of the inventory?

If there is a certain degree of rationality in the provision of "returnable commodities" without mentioning the price drop, it seems quite questionable to adopt a zero price reserve for some "non returnable commodities" inventories.

Hai Lan home brand library age 2 years zero mention?

According to the annual report, by the end of 2018, the clothing chain brand non return items had a book value of about 3 billion 885 million yuan, accounting for 41.01% of the final inventory book value.

The specific percentage of the company's related brands' non returnable merchandise inventory depreciation is as follows:

It is worth noting that in the clothing chain brand non returnable products, the men's clothing brand Hai Lan's family library is in the 2 years old, excluding the provision of inventory depreciation. The fashion casual women's brand love residence Rabbit Series library age is not ready to take up inventory depreciation within 1 years.

According to the financial report, by the end of 2018, 83.87% of the clothing chain's non returnable goods had been aged within 1 years, accounting for about 3 billion 259 million yuan within 1 years, and no provision was made for falling prices.

On the whole, there is a total of about 8 billion 180 million of the non returnable goods in the clothing chain brand within 1 years, and the proportion of the book value in the end of 2018 is about 86%.

Is the company's brand family age 2 years reasonable? Does the company's inventory depreciation rate be adequate? Is the way of Hai Lan's home raising a common practice for the industry? What is the policy of preparing the inventory depreciation allowance for other listed companies in the industry?

Choice of inventory policy for listed companies in apparel industry

According to the 2018 annual report of Taiping bird, because women's clothing consumers are more sensitive to fashion trends, the commodity discount in the past season has decreased rapidly.

Among them, men's clothing and children's clothing class age is 1 years, the proportion is 0%-0.5%, the proportion of the library age is 1-2 years, the proportion is 0.5%-3%, while the proportion of women's clothing class age is 1 years, the proportion is 0%-0.5%, and the proportion of the library age 1-2 is 20%-30%.

According to the financial report, in 2018, Taiping bird inventory lost about 173 million yuan and accounted for about 9.42% of the final inventory book value.

According to La Natsu Bell's prospectus in 2017, the company's inventory was set up in terms of spring, summer, autumn and winter respectively.

In La Natsu Bell's policy of declining price, the proportion of spring and summer funds in the 1 years' age of the library was 5%, and the proportion of spring, summer, autumn and winter were 1-2, 50%, 50%, 15% and 25% respectively. The 2-3 years of the library age were 100%, 90%, 90% and 90%, respectively.

According to the 2018 earnings report, La Natsu Bell lost about 269 million yuan in inventory price and accounted for about 10.62% of the book value of the final inventory.

Looking up the earnings of the listed companies in the clothing industry, we can find that different companies have different choices on the policy of inventory depreciation, but no matter whether they are men's or women's wear brands, there is not much mention in 1 years, and less than 2 years is even more rare.

It is undeniable that compared with women's clothing and children's clothing, Harean's family's men's wear market has certain particularity.

Men's wear, especially formal wear, is relatively slow compared with women's wear.

There seems to be some rationalization of the lower inventory price reserve ratio of Hai Lan's home.

However, as far as the 2018 earnings report is concerned, there is a total of over 8 billion of the book inventory, and the provision for depreciation is zero. Is it worth discussing?

The annual report of Hai Lan home is audited. It is believed that the company's financial departments and auditors have certain professional standards.

This approach may not violate accounting standards.

However, this affects the gold content of profits to a certain extent.

The principle is: according to accounting standards, the increase in stock price depreciation usually cuts the current profit.

Make a simple estimate of the book value of the end inventory of Hai Lan's home. The percentage increase in inventory depreciation will cut about 95 million of the pre tax profit.

Hai Lan's home, how is the gold content of profits?