According to the world clothing and footwear network, the growing awareness of health promotes the development of the sports shoes market. Nike and Adidas are the two most competitive sports brands, and they are earning a lot of money. Yu Yuen Group (00551), a manufacturer of Nike and Adi, also got a slice of it. Yue Yuen Group recently released its unaudited interim results, with a strong dividend of approximately HK$6.4 billion. Such a big hand ignited the market enthusiasm, the first trading day after the announcement, Yue Yuan directly opened 6% higher, setting a record high of 34.85 Hong Kong dollars. But the huge dividends of the foundries are largely due to cost control. An important measure of cost control is to gradually move production lines from China to Vietnam, Indonesia, and Cambodia with lower labor costs. This has created a test for China: producers must seek maximum long-term benefits for shareholders and live on a cost-by-cost basis; in the past, Yuyuan achieved good results by sharing the industry and the Chinese demographic dividend. Nowadays, with the increase in the cost of China, the foundry companies such as Yue Yuen have chosen to transfer their production capacity to places like Vietnam. Where is the Chinese manufacturing road that loses the cost advantage? Retail does not work together: Adi Nike foundry 壕 dividend of 6.4 billion Yue Yuen Group is an international brand of sports shoes and casual wear shoe giants. The company's footwear brand customers include Nike, adidas, Reebok, ASICS, NewBalance and so on. In 2008, Yue Yuen split its retail business into Baosheng International (03813) for independent listing. However, Baosheng is regarded as a subsidiary of Yueyuan, and financial data is still reflected in Yueyuan’s consolidated statements. Recently, both Yue Yuen Group and Bao Sheng have released unaudited interim results, and manufacturing and retail subsidiaries have performed differently. In the first half of 2017, Yueyuan Group's operating income was 4.448 billion US dollars, an increase of 3.91% year-on-year; net profit attributable to shareholders of the parent company was 259 million US dollars, an increase of 3.95%. However, the retail subsidiary Pou Sheng International has experienced a decline in labor costs and rental growth. In the first half of 2017, Baosheng Group's operating income was 1.405 billion US dollars, an increase of 14.5% year-on-year; net profit attributable to shareholders of the parent company was US$0.44 billion, a year-on-year decrease of 19.6%. The increase in net profit was mainly due to the strong performance of the foundry business, which made Yue Yuen Group have the confidence to make large dividends. According to the plan: an interim dividend of HK$0.4 is proposed, with a special dividend of HK$3.5. The total dividend is approximately HK$6.4 billion (approximately US$824 million), which exceeds the total cash dividends for the past three years. In fact, Yuen’s past dividends are not low. Since its listing in 1992, the company's revenue has grown steadily. From 2000 to 2016, the compound revenue growth rate was 11%, and the net profit compound growth rate was 6%. With the steady growth of performance, the Group has a stable dividend every year. The dividend payment rate has remained above 40% in the past 10 years. Adi Nike China's market share is nearly 40% and maintains rapid growth The continued rise in the performance of Yue Yuen Group is inseparable from the growth of big customers such as Adidas and Nike. From the global market point of view, in 2014, the world's top five sports shoes brands are Nike (including Converse), Adidas (including TMaG, Reebok), VF Group (including Vans, TheNorthFace, Reef, Timberland), Asics (Assisi), NewBalance, the total sales accounted for 74.6%, of which Nike and Adidas accounted for 57.9%. From the domestic market, the top eight brands in China's sports industry are Nike, Adidas, Anta, newbalance, Li Ning, Xtep, 361 degrees, and Peak. In 2016, the market share of the eight major brands was 69.7%. Among them, Nike and Adidas, as the two most competitive sports brands in the Chinese market, have a market share of nearly 40%, and still maintain rapid development. In fiscal year 2017 (June 2016-May 2017), Nike's operating income was US$34.4 billion, up 6% year-on-year; of which, Greater China achieved revenue of US$3.785 billion, up 23% year-on-year. In fiscal year 2014-2017, the average annual growth rate of revenue was 7%. In 2016, Adidas' operating income was 19.291 billion euros (about 20.319 billion US dollars), an increase of 14.05% year-on-year; of which, Greater China achieved revenue of 3.01 billion euros, an increase of 22%. In 2013-2016, the average annual growth rate of revenue was 10%. "Holding the thigh" is also a good business. Among the clothing and footwear stocks of Hong Kong stocks, the top three in terms of market capitalization are Shenzhou International, ANTA Sports and Yue Yuen Group. In addition to Yue Yuen, Shenzhou International is also a super supplier behind the giants, for Nike, Adidas, UNIQLO and PUMA clothing OEM. In 2016, Shenzhou achieved a total operating income of 15.12 billion yuan, an increase of 19.5% year-on-year; net profit of home fell 2.95 billion yuan, an increase of 25.2%. In 2013-2016, the compound revenue growth rate was 15%, and the compound annual growth rate of net profit was 18%. Transfer of Southeast Asia under cost pressure: Your Nike shoes are produced in Vietnam As a member of the sportswear industry chain, Yu Yuan used to The challenge of making in China: no brand, the job will slip away at any time In fact, not only Yue Yuen Group. With the disappearance of demographic dividends, stricter environmental protection policies and more tax incentives from other countries, many labor-intensive industries have shown signs of migration to India and Vietnam. High-end manufacturing industries are moving closer to the upstream of products, in the United States, etc. Construction of the factory. Since 2013, Shenzhou International has expanded its fabric and garment production capacity in Cambodia and Vietnam in order to enjoy cost and tax dividends. At the end of July, US President Trump announced that Foxconn will invest 10 billion US dollars to build a liquid crystal display factory in Wisconsin, which is another capacity transfer plan after Foxconn entered India. In the 1990s, thanks to the scarce resources and demographic dividends, China's manufacturing industry, although not expensive, still earned a lot of profits and created a large number of jobs. Today, the United States continues to promote the manufacturing reflow plan, Germany also proposed that Industry 4.0 is ready to fully recover the manufacturing industry, Modi launched the "Made in India" plan ... China's manufacturing is facing increasing competition pressure. Manufacturing is the most important sector to accommodate employment. The distribution of production capacity of foundries is actually the result of the global allocation of resources by brand owners. In this sense, many jobs in China, India, and Vietnam actually depend on the strategic planning of multinational companies such as Nike and Adidas. Nike and Adidas may not issue a notice asking the foundry to close the Chinese production base and set up a factory in Vietnam. However, economic laws will force foundries to do so. Under the pressure of upstream brands, cost is a permanent problem for foundry companies. If a foundry like Yue Yuen Group does not move its production line to a lower-cost Vietnam, then Nike and Adidas are likely to hand over orders to Yue Yu’s competitors. Through orders, multinational brands are in control of the global mobility of jobs. Many jobs in China depend on brands like Nike Adi. After all, having independent technology and brand is the king. China does not have its own brand, but many brands have not yet become strong, they have begun to arrogant, blindly diversified, and even put energy and resources into real estate and other fields. Gree air-conditioning has been regarded as a model of Chinese manufacturing brands for more than a decade. Its domestic market share ranks first, and it has also been exported to many countries and has become a famous big bull stock of A-shares. But unfortunately, since the low-key Gree founder Zhu Jianghong retired, Gree Electric has also begun a huge diversification. Zhu Jianghong recently published an autobiography entitled "I have been in charge of Gree for 24 years" and described the entrepreneurial process of leading Gree from scratch. Focusing on scientific and technological innovation, Zhu Jianghong, who was low-key and pragmatic, refused many blind and diversified opportunities in real estate, refrigerators, televisions, photovoltaics, etc. during his tenure of Gree Electric. He focused on building core competitiveness in the air-conditioning field and eventually became an industry oligarch. To lay a solid foundation for today's Gree's total market value of more than 200 billion. However, a few years after Zhu Jianghong retired, Gree Electric Appliances was involved in the mobile phone industry with high-profile, and because of the acquisition of Zhuhai Yinlong to enter the new energy automobile industry, it caused great disagreement between minority shareholders and management. Gree is really strong enough in air conditioning and related main business. It doesn't need to concentrate on excellence, so that it can be diversified and diversified. Can you open your mobile phone and build a car? Obviously not, although Gree has already exported products to Europe and the United States, many products still remain in the OEM stage, such as the "Soleus Air" produced according to customer requirements. And there is still much room for improvement in product quality. In June 2013, one year after Zhu Jianghong retired from the chairmanship, Gree's US market partner Soleus sued Gree Electric Appliances in California Federal Court for a claim of $150 million on the grounds that Gree Electric sold a dehumidifier that was easy to catch fire. In September of the same year, Gree issued an announcement stating that some of the company's exports to the United States and Canada may overheat, smoke and catch fire, and recalled the sale of Soleus Air in the United States and Canada between January 2005 and June 2013. , Kenmore, Frigidaire and other 12 brands about 2.25 million dehumidifier products. As a national brand leader, Gree is still the case, let alone other companies. In this era of rapid information update, simply copying or stopping will only face the high-dimensional crushing of international innovators, follow the footsteps of others, and never leave their own footprints. To get out of your own path, you need to focus more on innovation than just printing the chairman's head on the product. Jobs can use his own avatar as the iPhone's boot screensaver, and it can still be sold all over the world. Without core technology, without excellence, we can only be second-rate. Such profits and jobs are coming fast and going fast. For more exciting reports, please pay attention to the world clothing and footwear network. Flannel Weighted Blanket,Weighted Flannel Blanket,Gravity Blanket Flannel,Flannel Sherpa Weighted Jiangsu Hangfu Brocade Development Co., Ltd , https://www.eruditebedding.com