Cheng Is Also A Brand Loser Brand &Nbsp; Jordan Sports Breakthrough Success Is Still Doubtful.

Despite the constant questioning, the Jordan sports Limited by Share Ltd from Fujian (hereinafter referred to as "Jordan sports") has been successful in the past.

But this does not hide the problems and risks of the company.

The industry clearly pointed out that combined with the company's business model and analysis of the financial data during the reporting period, it revealed its hidden risks, and even did not rule out the possibility of its listing performance.

Provide credit sales to distributors

Like all listed companies, Jordan sports also completed a substantial increase in operating revenue during the reporting period.

Prospectus information shows that the company's operating income during the 2008-2011 year June reporting period was 1 billion 158 million yuan, 2 billion 316 million yuan, 2 billion 926 million yuan and 1 billion 704 million yuan respectively, with the growth rate of 100% and 26.33% respectively.

"A company engaged in traditional clothing production has such a good growth performance. It has been very good. The fast growth of garment manufacturers generally benefits mainly from good business models and brands."

A person who has long been engaged in investment banking front-line projects said.

It is understood that Jordan sports mainly used dealer sales mode.

The prospectus also shows that during the reporting period, the company's main revenue comes from products sold to authorized dealers, which is mainly sold by distributors through their own or authorized stores to terminal consumers.

A research marketing organization staff said: "dealers are holding money in hand, directly from the production enterprise purchase, and then sell to obtain sales spreads.

The biggest advantage of this business mode to enterprises is that they are not selling credit to dealers, but actually receive money, which effectively guarantees cash flow.

However, it is worth noting that the amount of accounts receivable in Jordan's sports reporting period is quite large, but on the contrary, it has been increasing obviously with the reporting period.

Statistics show that the receivables for the first three years are 41 million 93 thousand yuan, 340 million yuan, 380 million yuan and 580 million yuan respectively.

This only shows that in order to confirm the performance, Jordan sports has sold credit to its customers.

Customers are mostly affiliated enterprises.

For enterprises to take credit on dealers, the reporter called Jordan sports securities department, but the wiring personnel said that the problem will be pmitted to the Secretary in time, but as of press time, did not receive any reply.

However, the researchers told reporters: "if the manufacturer sells credit to dealers, then it is obvious that it will give up the advantages of its own business mode and it will be a pleasure for dealers to do so."

This also means that Jordan sports in order to achieve a leap in the performance of the eve of the listing, do not hesitate to bear the corresponding risks brought about by credit sales.

What is amazing is that after the completion of the relevant performance confirmation, Jordan sports announced the integration of distribution business, while some dealers were exceptionally coordinated to pfer the locally owned channels and businesses to Jordan sports.

What is the reason for such cooperation? The relevant information tells the story.

Statistics show that among the integrated distributors, Wuhan Yuan Xiang, Shanghai Bai Yi, Ningxia Baisheng, Guiyang United crown, Shijiazhuang Lele Gao and Chengdu Ding Bo are all Jordan sports related enterprises, so all related pactions are affiliated pactions.

Therefore, it is not surprising that the first thing is to cooperate with credit sales to confirm performance and cooperate with integration.

Statistics show that the actual control of Wuhan Yuan Xiang is the mother of Ding Guoxiong, the real controller of Jordan sports. The controlling person of Shanghai Baishi and Ningxia Baisheng is the sister of Ding Guoxiong, the sister of Ding Yashuang, the real controller of Guiyang Lian Guan, and the sister of Ding Guo Kung, while the actual controller of Chengdu's Ding Bo is marked as a third party natural person. However, her takeover of Chengdu Ding Bo was taken over by Ding Guoxiong's nephew Ding Shijie, and the takeover time was December 14, 2009, less than two years ago.

At this point, it is clear that Jordan's sports dealers are mostly in the hands of the Ding family.

Cheng Yi also has a brand name.

As mentioned earlier, another important factor in the success of Jordan's sport is its brand benefit.

However, the company's trademark and brand were also most criticized before the listing of the company.

Objectively speaking, the trademark and brand of the company have been registered in China as early as 1998, and it has been recognized as a famous brand in China by the State Trademark Office.

However, this does not mean that there is no corresponding risk in Jordan sports. Combined with its business mode, brand and trademark are the most uncertain factors of Jordan sports.

The industry said: "the most important business model of distribution is the brand benefit of the enterprise, and the best seller is willing to buy the product.

On the contrary, if a company adopts a business model of distribution, if the brand is in trouble, the blow to this enterprise will be devastating.

On the other hand, prospectus shows that the proportion of net assets of Jordan sports intangible assets is quite low, and the proportion of the reporting period from 2008 to present is 0.26%, 0.19%, 0.17% and 0.18% respectively.

In addition, in the prospectus, Jordan sports did not do the corresponding goodwill impairment test.