Mid-2025 Financial Report Review: How Did 8 Children's Clothing Companies Including Semir, Annil Co.,Ltd., and 361 DEGREES Perform?

Deep News
Sep 28

In recent years, declining birth rates combined with intensifying homogeneous competition have dealt a massive blow to various segments of the maternal and infant industry, with the children's clothing sector being no exception. So, amid this market downturn, how are the major children's clothing enterprises faring operationally? By examining the first half of 2025 financial reports (referred to as the "reporting period") of 8 listed apparel companies, including Jaman Fashion, Annil Co.,Ltd., 361 DEGREES, and Semir, we can observe that most companies' children's clothing businesses face challenges including declining revenues, store contractions, and inventory pressures.

Annil Co.,Ltd. and Jaman children's clothing revenues declined by double digits, while Semir children's wear alone grew by 5.97%

Among the 8 companies reviewed, three enterprises rely on children's clothing business for "half" of their revenue: Annil Co.,Ltd., Jaman Fashion, and Semir.

Looking more closely, as of mid-2025, only Annil Co.,Ltd. focuses "exclusively on children's clothing," with its proprietary brand "ANNIL Annil Co.,Ltd.," accounting for up to 98.73% of total revenue.

During the reporting period, Annil Co.,Ltd. achieved total revenue of 263 million yuan, a year-on-year decrease of 23.47%; net loss attributable to shareholders was 28.6988 million yuan, narrowing slightly by 4.59% compared to last year but still in a loss-making state. The children's clothing business itself also saw significant revenue decline, dropping 23.76% year-on-year to 260 million yuan.

The weakening "cash-generating" ability of the main business led to operating cash flow decreasing by over 90%. Meanwhile, the company continued investing, with a net outflow of 3.46 million yuan. Under these circumstances, to alleviate funding pressure, Annil Co.,Ltd. secured short-term bank loans for capital replenishment, turning financing cash flow from negative to positive with a substantial year-on-year increase of 113.24%, driving net cash and cash equivalents increase by 114.04% year-on-year, partially buffering the negative impact of operational decline.

It's worth noting that from 2020 to 2024, Annil Co.,Ltd. has experienced five consecutive years of declining total revenue and net profit losses.

From a channel distribution perspective, all types of Annil Co.,Ltd. stores decreased in the first half: directly-operated, franchised, and joint-venture stores decreased by 27, 13, and 19 respectively.

Additionally, the company's inventory turnover efficiency further declined, with average turnover days extending from 213 days in mid-2024 to 266 days in mid-2025.

From an inventory structure perspective, Annil Co.,Ltd.'s total children's clothing inventory in the first half was approximately 184 million yuan, with inventory aged within 1 year accounting for 43%, 1-2 years for 37%, 2-3 years for 14%, and over 3 years reaching 6%, highlighting prominent inventory aging issues. In response, the company has made inventory impairment provisions of 75.587 million yuan.

Jaman Fashion and Semir's children's clothing businesses also hold important positions, accounting for 75.95% and 70.15% of total revenue respectively.

Focusing on both companies' first-half performance, both coincidentally experienced "revenue growth without profit growth," though their children's clothing business performance differed completely:

Jaman Fashion's total revenue was 497 million yuan, up 3.51% year-on-year; net profit attributable to shareholders was 64.05 million yuan, down 30.65% year-on-year. Children's clothing revenue was 378 million yuan, down 16.44% year-on-year.

Semir's total revenue was 6.149 billion yuan, up 3.26% year-on-year; net profit attributable to shareholders was 325 million yuan, down 41.17% year-on-year. Children's wear revenue was 4.313 billion yuan, up 5.97% year-on-year.

Notably, Jaman Fashion once "focused" on children's clothing like Annil Co.,Ltd., launching proprietary brands: Hush Puppies and Shuihaier, licensed brands: Hazzys, and managing over ten international retail agency brands: EMPORIO ARMANI, KENZO KIDS, and HUGO BOSS, among others. However, due to overall lackluster growth in the children's clothing consumer market, Jaman Fashion began operating Hush Puppies men's and women's wear from mid-2024.

To support new business development, Jaman Fashion increased sales staff while extensively opening offline stores, leading to alarming cash consumption rates. The company started with 628 million yuan in cash reserves but had only 484 million yuan remaining after just six months.

During this period, net cash flow from operating activities was -21.93 million yuan, plummeting 193.82% year-on-year. The reason was that with significantly reduced government subsidies and substantially increased labor costs, Jaman Fashion's main business could no longer generate positive cash flow through its own operations.

It should be noted that whether directly-operated or franchised, Jaman Fashion's store count decreased by 21 net stores in the first half.

More concerning is that its apparel inventory turnover days reached 584 days, meaning goods take an average of nearly 1 year and 7 months from warehousing to sale, reflecting very low inventory turnover efficiency.

Semir operates a diversified children's wear brand matrix, owning proprietary brands including Balabala, Markable, Mini Bala, Heyjunior, and Semir Kids, while also operating well-known children's clothing brands like Asics Kids and PUMA KIDS through licensing cooperation.

However, in the first half, its children's wear stores decreased by 78 net stores.

Notably, Semir's current business operations have not generated positive cash flow but continue consuming substantial cash. Although the company obtained 492 million yuan in cash through redeeming wealth management products for working capital, due to large financing cash outflows and significantly reduced financing inflows from large certificate of deposit pledges compared to the same period last year, cash and cash equivalents ultimately decreased by 664 million yuan.

Only two companies saw slight increases in children's clothing business; Peacebird, 361 DEGREES, and Goodbaby all declined

The remaining five apparel companies are Jinhong Group, JNBY, Goodbaby, Peacebird, and 361 DEGREES, with children's clothing business accounting for less than 50% of overall revenue.

Among these, only Jinhong Group and JNBY achieved growth in the first half.

Jinhong Group's total revenue was 1.994 billion yuan, down 4.04% year-on-year; net profit attributable to shareholders was 114 million yuan, down 23.03% year-on-year. However, TEENIE WEENIE children's wear, accounting for 17% of total revenue, achieved revenue of 334 million yuan, up 1.68% year-on-year.

JNBY's total revenue was 5.548 billion yuan, up 5.92% year-on-year; profit attributable to shareholders was 893 million yuan, up 5.13% year-on-year. jnby by JNBY children's wear, accounting for 14.97% of total revenue, achieved revenue of 481 million yuan, up 0.6% year-on-year.

In stark contrast were the children's clothing performances of Goodbaby, Peacebird, and 361 DEGREES.

Goodbaby operates two proprietary children's clothing brands: LABI BABY and I LOVE BABY. Children's clothing business accounts for 38% of total revenue.

Specifically, infant and children's apparel revenue decreased 5.74% year-on-year to 23.5802 million yuan, while maternal and infant cotton products revenue increased 3.64% year-on-year to 36.4757 million yuan. Combined, revenue decreased 0.26% year-on-year to 60.056 million yuan.

According to financial reports, Goodbaby's inventory situation may face accumulation and unsold stock risks. Its core products have slow turnover, with infant and children's apparel turnover days reaching 464 days and maternal and infant cotton products 429 days, meaning these goods average 13 to 15 months in warehouses before being sold.

Although Goodbaby is actively clearing inventory, with "infant and children's apparel" and "maternal and infant cotton products" inventory balances decreasing approximately 22% year-on-year, overall stock remains substantial. Consequently, the company has made impairment provisions of 36 million yuan, indicating that substantial inventory's actual value has fallen below book cost, presenting significant asset impairment risks.

Reportedly, Goodbaby has been in net loss after deducting non-recurring gains and losses for three consecutive years from 2022 to 2024. Since April 24, 2025, the company has been formally subject to delisting risk warning, with its stock abbreviation changed to "*ST Jinbi."

Currently, Goodbaby has added medical aesthetics services to its main business, attempting to build a "maternal and infant products + medical aesthetics services" dual-main-business structure. However, whether this can inject strong profit-driving power into its performance remains to be seen.

Peacebird's children's clothing brand MINI PEACE achieved revenue of 377 million yuan during the reporting period, down 3.73% year-on-year, accounting for 13.01% of total revenue. Meanwhile, the brand's channel scale also contracted: directly-operated stores decreased by 16 net stores, and franchised stores decreased by 23 net stores.

361 DEGREES' children's clothing brand 361° achieved revenue of 522 million yuan during the reporting period, down 7.6% year-on-year, accounting for 9.1% of total revenue. From sales perspective, children's clothing sales volume in the first half was 7.954 million pieces, down 1.5% year-on-year; average wholesale price was 65.6 yuan per piece, down 6.3% year-on-year.

As of the reporting period end, 361° children's wear had 2,494 sales outlets in mainland China, 54 fewer than the same period last year.

Overall, the children's clothing industry remained in a deep adjustment period in the first half of 2025. Declining birth rates, homogeneous competition, and consumption weakness continue constraining industry development. Companies need to optimize products and channels while exploring new growth points to weather the downturn.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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