IPO Is Questioned. Many Indicators Are Lower Than The Industry Average.

The Fujian sports brand Limited by Share Ltd (recently known as "noble bird") has recently disclosed the prospectus (Draft). It intends to issue more than 100 million shares to the Shanghai Stock Exchange, and the sponsor is UBS Securities.

However, the new express reporter found that the performance of the "noble birds" as the main battlefield in the two or three and four tier cities was not outstanding in their peers, including gross margin and operating income, which were lower than the average level of the industry. However, because of the dealer system, the difference between the net cash flow and net profit was 30%.

Gross profit margin is lower than industry average.

The declaration revealed that the gross profit margin of main business was 27.04%, 31.95% and 38.66%, respectively, in 2009 -2011 (1-6 months). Although the growth rate was relatively fast, the gross profit margin of XTEP was lower than that of the target customers of two or three or four cities.

Taking XTEP as an example, its gross profit margin in 2009 -2011 (1-6 months) was 39.14%, 40.65% and 40.91% respectively, while the average value of the industry was 38.62%, 40.95% and 41.86%.

Compared with the Jordan sports Limited by Share Ltd, which has submitted the draft and is also based on the two or three and four tier cities.

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The operating income is also not high. For example, the total revenue of 2010 has been announced, Jordan sports is 2 billion 927 million yuan, while the "noble bird" is only 1 billion 535 million yuan, nearly half of it.

Your bird says frankly, whether it is Nike, Adidas, or Lining [7.81 0.00%], Anta.

Special attention should also be paid to the effect of income tax.

Since the birds are foreign invested enterprises, they have enjoyed the national "two exemption, three and half" tax benefits since 2008, but by 2013, if the country does not have any other new preferential tax policies, the income tax rate will increase to 25%.

In the 2009-2011 years, the income tax benefits accounted for 30.46%, 14.85% and 10.36% of the net profit, respectively. In 2011, net income of 408 million yuan was taken as an example. If the income tax rebounded, the birds would earn less than 42 million 333 thousand and 400 yuan.

The company said it would have adverse effects on the company's after tax profits.

Operating cash flow is larger than net profit margin.

It is also worth noting that under the dealer system, in 2011, the difference between net operating cash flow and net profit of the company was 133 million yuan, accounting for 32.57% of net profit.

In fact, in 2009, the ratio was as high as 77.93%, while in 2010 it dropped to 30.69%, but in 2011 it rose again.

The main reason for the difference is that the company is in a period of rapid growth, giving dealers a certain amount of credit to support its expanding marketing network, resulting in differences in accounts receivable.

The company said that with the increasingly stringent management system of accounts receivable and the gradual improvement of the marketing network, the rate of accounts receivable reimbursement will be further accelerated, and the net operating cash flow will gradually approach the level of net profit.

However, as a matter of fact, the turnover rate of accounts receivable of the expensive birds is at the same level as the gross profit rate.

According to the declaration, in 2009 -2011 (1-6 months), although the turnover rate of accounts receivable increased from 4.10 to 5.31 times, the difference between the 9.83 and 8.51 times and 7.45 times of the industry average was obvious, even lower than that of Jordan sports. In the declaration, the turnover rate of accounts receivable of Jordan sports was 12.16, 8.08 and 7.04 times.

In order to increase the turnover rate of accounts receivable, we should take measures to overcome the fittest for dealers so that they can rely on big customers.

At present, only 32 of the distributors of the noble bird dealers have led to the sales revenue of the top five customers in 2011, accounting for 51.47% of the total sales revenue, of which the first largest customer accounts for 22.40%.

If you agree that the sales contract will not be renewed after the expiration of the distributor's contract, the sales performance will be adversely affected by the five major customers.

The ownership structure is puzzling.

Before the issue, the noble bird group held 92.26% of the company's shares, and Lin Tianfu indirectly controlled 92.26% of the shares through the "noble bird group" as the actual controller of the company.

The actual control of the investment of the noble bird group, the noble bird investment and Hongzhi investment is the members of the Lin family.

Therefore, Lin's family members indirectly hold 95.26% of the company's shares.

The board of directors of the company currently comprises 11 directors, 6 of whom are independent directors, and 3 of the remaining 5 directors are members of the Lin family.

According to the prospectus, the company paid 2011 yuan to directors, supervisors, senior managers and core technicians in 4 million 317 thousand and 200 in the year of 4 million 317 thousand and 200.

Since March 2011, the company has appointed an independent director, and has decided to pay 180 thousand yuan (pre tax) independent director allowance to each independent director each year.

People with investment banking say this allowance is relatively high.