Reported Bird Net Profit Increased By 183.49% In The First Half Of 2019, But Its Cash Flow Is Still Negative.

A few days ago, the news bird (002154) Cmi Holdings Ltd (SZ002154) (hereinafter referred to as "good bird") announced the 2019 semi annual report. The report pointed out that during the reporting period, the company's revenue was 1 billion 430 million yuan, an increase of 1.21% over the same period, net profit of 107 million yuan, and net profit of 112 million yuan to the parent company, an increase of 183.49% over the same period.

It is reported that the Cmi Holdings Ltd, formerly known as Zhejiang wedding bird clothing Limited by Share Ltd, was founded in 2001, is a clothing based industry joint-stock enterprises. In 2007, it was listed on Shenzhen Stock Exchange. In 2017, it was renamed the Cmi Holdings Ltd.

It is worth noting that the cash flow generated by the operation of the wedding birds is -0.15 billion, which is roughly the same as that in the first half of 2018. In the first half of 2018, its operating cash flow net expanded from 2 million 730 thousand to 65 million 150 thousand, and it did not turn to 14 million 50 thousand until the third quarter.

At the same time, the good news birds still did not change the traditional clothing industry stock high common fault, its inventory commodity increased from 774 million in the same period last year to 799 million.

In July 10th this year, the news bird replied to the inquiry letter of the Shenzhen Stock Exchange about the annual report of 2018. The total number of brand stores in the 2018 year was 268, and the closing procedures were legal and compliance. The increase in net profit was higher than the increase in operating income, mainly because the growth of non recurring gains and losses in the current period was larger. The fluctuation of the inventory balance was related to the balance of raw materials, the balance of inventory merchandise and the reserve for depreciation.