Report Birds Invest In Real Estate By Expanding Their Names And Refinance 1 Billion 500 Million Expansion Stores

In June 1st,

The issuance scheme was approved by the SFC.

The company intends to publicly issue 100 million shares to the A share market and raise no more than 1 billion 500 million yuan.

Like the previous fundraising purposes, the purpose of this company's fund-raising is still marketing network construction, mainly for the purchase of shops.

And take a look at it.

Since the capital operation, it can be said that it is not buying new stores or buying new ones.

Since its listing in August 2007, the company has implemented two additional issuance and issued a corporate bond.

Coupled with the initial listing financing in 2007, the company raised 4 yuan in total of 3 billion 183 million yuan.

Companies are constantly asking for money from the capital market, mainly for store expansion.

Statistics show that in 2011, the company opened 212 new stores, an increase of 24.7% over the previous year, and the fastest expansion in men's brand listed companies.

It is understandable that companies are using shop expansion to increase sales. However, we find that the company has the suspicion of expanding its investment in real estate through its shops.

This can be reflected in the company's behavior of renting new storefront many times.

In addition, the rapid expansion of the extension mode brings many problems to the company.

Continuous financing and expansion of stores did not yield benefits in the short term, and the rate of return on assets of companies has been at a relatively low level in the industry.

Secondly, the reputation of the company's new brand has not been well known, and the company has contributed very little to the company's performance.

Invest in real estate

The bird was listed in August 2007, raising 302 million yuan at that time.

In the five years after the listing, the company launched two additional issuance and one corporate bond issue: 2010 private placement, 781 million yuan, 600 million yuan in 2011, and 1 billion 500 million yuan in 2012.

So far, the total amount of financing after the listing of the company amounted to 3 billion 183 million yuan, and the amount of financing was 4 times the total assets after listing in 2007.

This means that the company will require investors to repurchase a "good news bird" on average for more than a year.

Amazingly, every financing and investment project of the company is strikingly consistent, that is, the construction of marketing network.

The company claims that its financing expansion is aimed at ensuring that the company's performance is growing faster and faster than its competitors in the fierce market competition, thereby creating sustained and generous returns for investors.

But in fact, after the company's financing, the expansion of the shops, most of their business objectives "deterioration", some shops have been rented for them.

The company announcement shows that in 2007, the company was listed on the stock market, raising a total of 302 million yuan, of which 100 million yuan was used for the expansion of the company's purchase. The company plans to build 6 flagship stores in 6 cities.

However, the final implementation effect of this project has been greatly reduced, and many shops have been rented out by birds of interest and turned to be used by him.

For example, in Chengdu, the company bought the Wuhou District store in the city at a price of 13 million 520 thousand yuan, but the shop had only the main facade for the birds, and the rest of the shops were sold to third parties.

In addition, the governor of Baoding City West Road area and Lanzhou Chengguan District planned to invest 24 million 400 thousand yuan, but after the purchase of the shop, they sold the shop to the third party on the basis of "business circle is not yet mature, and the business situation is not entirely in line with expectations".

In addition, in Jiujiang Xunyang Road, the company invested 19 million 710 thousand yuan to get a 13 storey building by auction. The company only used the 1~2 layer as a direct store, while the 3~13 layer was used for rent.

In 2010, the company received a net profit of 781 million yuan again, and was used for marketing network construction.

Among them, 43 shops were actually purchased, and some shops were re rented.

For example, the purchase of Inner Mongolia Alashan Left Banner, Bayan hot Street Commercial Street shop, originally planned to use two storeys shop, but eventually second floors to third parties.

This has to make us suspect that the company is investing in real estate under the guise of buying a shop.

Frequent location of new shops

When the company expanded rapidly, the location problem could not be considered.

Many shops delayed the opening hours due to improper location.

The company explained that under the influence of the economic crisis, the rental or changing behavior of the shops is to maximize the profits.

However, the shops that are rented out due to problems such as demolition and immature business circle are not much related to the economic crisis.

The company had invested 47 million 610 thousand yuan to buy a direct store in Xinglongtai District of Panjin and Suzhou of Hefei City, but only after signing the purchase agreement did it know that the local government had to implement the demolition, and had to close shop or lease it to third parties.

Regarding this, Zhang Bin, an analyst of the clothing industry of the state securities company, said that the excessive expansion of shops would bring risks to the enterprises to reduce the location quality.

In addition, business risks can not be overlooked. Nowadays, the competition in the brand clothing market has been quite intense. The era of many blank areas and less competitive peers has passed. It is difficult to achieve profits through simple expansion.

After the implementation of the above series of investment projects, the company's expansion plan has been partially realized, but it is undeniable that it is still difficult for the company to avoid its declining location quality.

Assets operating efficiency is lower than peers.

Affected by the rising level of industry boom, the company's net profit has increased rapidly in recent years, but the fact is that the company's assets operating efficiency is much lower than that of the same industry.

The assets operating efficiency of a company is reflected by the rate of return on assets.

The index is the ratio of pre tax profit to assets average in a certain period of time.

It can reflect the ability of managers to earn money from various sources of funds.

The rate of return on assets of the wedding birds is the same as the new brand of men's clothing industry.

In contrast to the Chinese Listed Companies in the nine years, king and Hongkong, the company's performance in the past 3 years has lagged behind the seven wolves, the nine herd kings and the Chinese lon Lang, and is only ahead of the city. The return rate of the birds in 2011 is 2.3 percentage points higher than that of the latter.

Assuming that the net profit of the net bird in 2012 still maintained a high growth rate of 50% last year, in 2012, when the capital expansion of 1 billion 500 million yuan was realized, the total assets return rate of the company was also difficult to turn brightly, and a new low of 9.8% was also achieved.

In addition to working hard to raise funds, the news birds also try to help their subsidiaries to make loans.

As of April 2012, the news birds had provided loan guarantees for Shanghai Bao bird Clothing Co., Ltd., Shanghai euro, Shanghai Shanghai, Shanghai Di Rui and Shanghai MEG fashion, which amounted to 370 million yuan.

If this fund is added, the assets return rate of the company will be lower.

The new brand's input output ratio is too low.

In addition to the above problems, the new brand that the company has made in recent years has created very little benefit.

Since its listing, the company has been the main player in two brands, the good news bird and the Italy brand Saint Angelo.

At present, the number of news birds has increased from 637 in 2008 to 821 in 2011. The store in San Jack has increased from 45 to 247, while the latter has increased 4.5 times in 3 years.

In recent years, the company has invested a lot of money in building the reputation of St.

The brand has entered the market since 2008, and it has invested 17% of its revenue in the promotion of the brand for 4 consecutive years to enhance its popularity.

But after 4 years' meticulous training, San Jie Luo only brought 40 thousand yuan net profit to the company last year, which is obviously a big difference from the previous investment of the company.

In this regard, Korea, the chief editor of the China clothing brand research center, believes that if the clothing brands of domestic manufacturers are designed by famous foreign designers, they will win the popularity of fashion media, which will make the brand better known in two years.

The implication is that the creation of San Jack's brand is not successful.

In addition, when reporters log on to St. James's official website, it is also found that the 2012 spring and summer new men's wear display page has been in a blank state, and there are few clothing in autumn and winter in 2011.