In September 19th, La Natsu Bell (603157.SH) released the 2019 interim report of H-share. During the reporting period, Rachabel (06116.HK) revenue was 3.951 billion yuan, down about 23.2% year-on-year; net profit was -565 million yuan, down 33.39% year-on-year; net profit was -498 million yuan, down 311.2% year-on-year; gross interest rate was 60.9%, down 7.7% year-on-year.

Earnings report explained that gross margin declined mainly due to the increase in the proportion of quarterly sales of products during the current reporting period. The decrease in revenue was mainly due to the implementation of shrinking strategy and lower online revenue.

As of June 30, 2019, the number of retail outlets in La Natsu Bell dropped from 9269 at the beginning of the year to 6799. According to the financial report, rasabel plans to continue to close inefficient stores and reduce the number of offline stores to less than 6000 by the end of September.

Although 2470 stores have been closed, counters and stores are still the main source of income.

In the first half of 2019, the counter sales revenue was 1 billion 684 million yuan, a year-on-year decrease of 32.8%, accounting for 42.6% of total revenue, and sales of exclusive stores decreased by 12.9% to 1 billion 645 million yuan, accounting for 41.6% of total revenue. Online platform revenue was only 527 million yuan, up 0.5% over the same period, accounting for 13.4% of total revenue.

From a regional perspective, La Natsu Bell's consumers are mainly concentrated in second tier cities, contributing 1 billion 600 million of their revenue to 40.5% of the total.

Meanwhile, during the reporting period, the net cash flow generated by La Natsu Bell's business activities was 1 billion 158 million yuan, and liabilities amounted to 7 billion 365 million yuan, up 43.62% from the same period last year.

Financial reports explained that the main reason for the change in cash flow is to accelerate the payment and extend the payment cycle of some suppliers.

In addition, La Natsu Bell average stock turnover days increased 70 days, up to 313.1 days. In this regard, the earnings report said that the reason for the same decline in inventory turnover was due to the increase in the average balance of inventories and the decrease in revenues.

Shanghai La Natsu Bell fashion Limited by Share Ltd was founded in May 23, 2011, mainly engaged in the design, brand promotion and sales of clothing products, the main public leisure wear for women. On 09 October 2014, it was listed on the Hong Kong Stock Exchange; and on 2017 09, 2017, it landed on the A shares of the Shanghai Stock Exchange's main board.