Doctor Frog Auditor Resignation Performance Postponed Shares Fell 40%

　　 Children's wear The brand of PhD is not only exposed by the media but also exposed to the quality problems of its products, and the auditor also resigned because he could not get enough audit information and was dissatisfied with the management response, and could not release the full year performance in 2011 until March 31st. After yesterday's announcement, the share price of Ph.D. frog dropped by more than 40%, and the company stopped trading after the opening of the afternoon.

According to yesterday's announcement, the reason why DDT CPA Huang Chen Fang's resignation as auditor is because he can not get enough audit information and is dissatisfied with management's response, so he can't complete the relevant audit work. It involves the existence and commercial nature of the amount of 392 million yuan prepaid by the supplier of doctoral frog, as well as the existence and commercial essence of the OK franchised dealer, merchandise dealer and trader.

　　 Doctor frog The board of directors of the investor relations department is considering the establishment of a special investigation committee. The special investigation committee will investigate the above matters.

　　 Investment institutions cut earnings forecasts

According to the annual report, the sales performance of PhD is at "level frog leaping". In 2010, the performance of doctor frog increased sharply, the income increased 123.5% to 1 billion 408 million yuan over the previous year, and the profit of shareholders increased by 106.9% to 251 million yuan, and the retail store grew 74.7% to 1555. Six months later, the mid 2011 report showed that the number of PhD shops has reached 1724, with a total revenue of 877 million.

However, the industry believes that although the new shop opens rapidly, the retail industry's important performance index "sales per square meter" has fallen sharply, and the company's ongoing discount sales activities to expand sales not only hurt the brand, but also have a side effect on gross margin.

Market analysts also share the same view that the UBS, a listed sponsor of the PhD, recently warned that the frog was in 2011. Department store Sales of shops, street shops, 365 stores and flagship stores decreased by 9%~45% per square meter. UBS expects that the gross profit margin of PhD 2011 will fall to 40.7%. The target price dropped sharply from 6.03 yuan to 3.6 yuan.

Last year, when the company released its first half performance report in 2011, many investment institutions lowered their profit forecasts. According to the financial report, total accounts receivable reached 676 million yuan, and the total inventory reached 712 million yuan. In the first half of the year, inventory turnover also increased to 200 days.

Citigroup said that the median profit growth of PhD is far below the management guidelines and lower than market expectations. Citigroup downgraded 29%~34%, the target price fell from 6.5 to 3.1 yuan, and said there was no incentive to share prices in the short term. The net profit growth forecast for the next three years dropped from 47% to 27%. Deutsche Bank also believes that the company needs to balance the growth and health of the balance sheet. The rating is reduced from "buying" to "holding", and the target price is reduced from 5.53 yuan to 2.68 yuan. In the study of baby industry, the relevant personages believed that the PhD frog was very hung this time. The slogan of the company's so-called four network convergence and 5A upgrade was relatively vague. The newly expanded shop was only increased by quantity, and there was not much support for performance. {page_break}

Industry horse racing enclosure

After the last resignation of the DDT auditor, the resignation was due to false financial information related to bank deposits and loan balances, as well as sales revenue and so on. The DDT auditor's resignation as a doctor frog is a euphemistic announcement. There are still a number of information related to its audits, which have not yet been obtained, or the explanation provided by management is insufficient, resulting in the failure to complete the audit.

Hu Yiming, accounting department of Shanghai Jiaotong University School of management, said that the fictitious spanactions of listed companies, including making fake invoices, forging economic contracts, bank bills, tax invoices, customs declarations and so on, are aimed at whitewashing statements, creating sales volume and profits, which will be encountered in the irregular period of domestic stock market, but now the phenomenon of "intentional fraud" has been greatly reduced.

"Competition is so fierce that it may take risks for sales and market profits." An insider, who declined to be named, said.

"So almost all the baby industry businesses are doing horse racing." Hangzhou baby industry association related personage told reporters that at present, the infant chain industry market concentration is low, in recent years, the industry is shuffling, who as many as possible, who will be able to occupy the market opportunities, so some enterprises listed financing as soon as possible to expand the scale.

Before listing in 2010, Dr. frog had made it clear that list About 40% of the HK $2 billion of successful fund-raising will be opened to new retail businesses.

"In the next three years, we will give up some net profits, and turnover is the top priority." Lin Taisheng, the founder of Taiwan's infant clothing manufacturer 2911.TW, also said that in the next three years, the company will expand its annual sales of new 300~500 stores and seize market share as soon as possible. In addition, red children and other e-business baby websites are eroding the share of traditional retailing such as doctor frog.

Three line products sell first price?

"Doctor frog is not optimistic in the industry." Mr. Wang, who is engaged in children's clothing business, told the newspaper that the quality of the three line products sold the price of the first-line brand, which is difficult for the rapid expansion of sales channels. In addition, children grow very fast, children wear short wearing cycle, which makes children's clothing difficult to sell high prices, and children's clothing market is far more difficult than adult clothing.

"The cost of children's clothing is almost the same as that of adults, but the terminal price is much lower than that of adults. For example, jeans with the same texture, children's clothing more than two hundred yuan has been difficult to sell, and adults can sell to 400~600 yuan. Moreover, the volume of children's clothing is generally small, which makes the cost can not be reduced. In addition, children's clothing is more obvious than adults, such as children's clothing that is popular in Shanghai, but Chengdu may not sell it. Mr. Wang said.

Mr. Wang also said that at present, the sales of children's clothing in department stores will be relatively higher, but generally it will hit half off, and then deduct rent costs, labor costs, taxes and fees, and so on. Moreover, children's clothing sales channels are also increasing, many parents like online shopping, which directly impact on the line of brand shop, children's clothing brand loyalty is not high.

Although there are more than 300 million children under 16 years of age in China, accounting for 1/4 of the country's total population, the domestic children's clothing market is still a small market in the whole garment industry, and there are 4.4 garment enterprises in China, but there are hundreds of brand children's clothing enterprises.