In The First Half Of The Year, The Net Profit Of The Pathfinder Dropped By 69.47%. It Will Take Some Time To Return To The Main Business.

Digging deep at home and abroad

The path of development has always been on the road, but the journey is not so satisfactory.

August 14th evening Pathfinder holding group Limited by Share Ltd (abbreviation:

Securities code: 30005) the semi annual report released in 2018 showed that as of June 31, 2018, the Pathfinder achieved a sales income of 877 million yuan, a decrease of 31.38% over the same period last year, and net profit attributable to shareholders of listed companies was 24 million 120 thousand and 800 yuan, down 69.47% from the same period last year.

As at the end of the reporting period,

The total number of shops under the line is 1253, the total number of shops under the Discovery Expedition line is 171, and the total number of shops under the TOREADKIDS line of the Pathfinder children's clothing store is 15.

Behind the decline of performance

For the decline in performance, Pathfinder said that the main reason is that the sharp decrease in international ticket business in travel service led to a decline in revenue. The board of directors completed the general election in late November 2017. The new management based on the sustainable development plan adjusted the original aggressive sales plan, and slowed down the over season goods clearance compared with the same period last year.

From 2015, the performance of the Pathfinder continued to show a downward trend. In 2015, -2017 decreased by 10.5%, 37.13% and 151.24% respectively, and 55.82% in the first quarter of 2018.

In order to save their performance, the Pathfinder hired Mr. Qiang Wei as president of the group in June 2017, and put forward a new strategy of "new positioning", "new mechanism" and "new operation", but did not bring substantial changes to the Pathfinder.

One of the founders of the November Pathfinder, Wang Jing, chairman and CEO of the company, once again stressed the importance of "returning to the main business of outdoor products".

Moreover, inventories that have been rising by the Pathfinder have also lowered their performance.

According to the data, the inventor inventory was 293 million yuan and 342 million yuan respectively at the end of 2016 and the end of 2017, and it increased to 513 million yuan at the end of March this year.

In addition to increasing the cost, the high inventory can also affect the company's level of capital occupation and the efficiency of asset operation, thereby reducing the turnover of total assets, resulting in a decrease in profits.

It is worth noting that after the decline in performance, Pathfinder opened up diversified development strategies and began cross-border acquisitions, but did not want to become a means of continuous deterioration of performance.

In 2015, the Pathfinder paid 230 million yuan to buy the easy to travel world, but in 2016 and 2017, it recorded a net loss of 20 million 350 thousand yuan and 21 million 456 thousand yuan respectively.

Although the Pathfinder is developing in a diversified way, it still can not reverse the dilemma of sustained decline in performance.

Digging deep into outdoor market to pform energy

According to COCA, "2017 China outdoor"

According to the survey report, the total retail sales of domestic outdoor markets in 2017 were 24 billion 460 million, an increase of 5.07% over the same period last year, and the total shipment volume was 13 billion 790 million yuan, an increase of 5.19% over the same period last year.

Domestic outdoor industry market growth continued to slow down, and the growth rate was the lowest in nearly fifteen years.

In the report, the Pathfinder pointed out that the competition among outdoor brands was becoming more and more intense. Large sports companies and fast fashion companies used new brands or extended product lines to enter the outdoor market, and the competition in the industry intensified.

Facing the increasingly fierce competition in the outdoor sports market, Pathfinder is pioneering and innovating, further strengthening the competitive advantage and consolidating the core competitiveness.

In the first half of 2018, Pathfinder strengthened the control of retail price system, promoted the improvement of the retail terminal price rate, and optimized the proportion of brand shops and Discovery Expedition brand shops through the rational elimination of inefficient shops and new quality shops, and strengthened the development of Shopping Mall and outlets.

In addition, Pathfinder focuses on resources to promote the long-term and healthy development of outdoor products industry, and continues to dig deep at home and abroad.

The development space is based on the R & D design, operation management and sales of multi brand outdoor products, such as TOREAD and Discovery Expedition, with the core of professional, scientific and fashionable elements as the core, providing the customers with reliable and fashionable outdoor products. The products cover the main field of domestic outdoor life.

At the same time, Pathfinder will further divestiture and withdraw from business related to outdoor main business, continue to integrate related travel business and sports investment projects, enhance outdoor ecological synergy, and pform energy into outdoor main business.

Market consumption upgrading, market segmentation requires high quality, personalized.

While the Pathfinder is still at the level of popularity and is hard to get the consumer audience, it takes time to get back to the main business and to regain the Chinese outdoor market.