Ge Lisi Chairman: There is a great opportunity for Esprit in the future

Xie Guoxin, Vice Chairman of China Garment Association of Songlishi Garments Co., Ltd., spoke on Weibo on September 28th. Esprit’s recent stocks plummeted. However, the new management of Esprit will invest 18 billion in the next four years. If the implementation is in place, the future will exist. Great opportunity, but short-term performance will be affected.

Xia Guoxin said: “The ESPRIT stock fell sharply. Some people asked me what I think. Esprit's stock is the highest at 133 yuan, and now it is more than 8 yuan. Has the company itself changed so much? I don’t think so. Last year’s net profit was 4.2 billion. 0.79 billion, but if we remove non-recurring gains and losses, last year's net profit was 3.3 billion, and 2.3 billion this year, so the change is not that big. In the next year the company will increase investment, the net profit will be affected, but the direction is correct. But I do not know the management How is execution."

Xia Guoxin also believes that: “I. T apparel has suffered a major decline in performance, the stock price fell to 0.3 yuan, but then rose more than 20 times in two years. The new management of Esprit will invest 18 billion in the next four years, mainly in the design, promotion and shops. Image, I feel radical, but in the right direction. If the implementation is in place, there will be great opportunities in the future, but short-term performance will be affected."

In this regard, Tian Wenzhi, Deputy Director of Consumer Industry Investment, Tongchuang Weiye Venture Capital Co., Ltd. stated: “There has been rumors that their performance is watery.”

According to media reports, Esprit (00330.HK), which was once the "retailer of shares," suffered a sharp drop of nearly 98% in its annual profit as of the end of June. The company's share price also fell sharply. As of yesterday's close, Esprit has dropped 63.71% in September.