Hundred Round Pants Industry Raise Investment Items Become High Prices Under Heavy Pressure To Retreat To The Three Line Cities

Less than a year after the listing, the 100 round pants industry suddenly announced that it would change the IPO investment project.

It has been changed to purchase shops in three tier cities and set up direct stores in Guangzhou and Nanchang.

The reason for the change is that the 100 round trousers industry is directly attributable to the rise in house prices.

This is also a setback for efforts to expand the front line in the provincial capital city for the industry that has just lowered its profit expectations for the first half of the year.

Recruitment investment project suddenly changed

It has been less than a year since IPO last December.

The change of recruitment and investment projects is very sudden.

Hundred circular pants industry today announced that the "marketing network construction project to buy 16 shops to set up a direct store project" changed to "three line cities to buy shops to build strategic franchisees and set up a wholly owned subsidiary of Guangzhou and Nanchang to open a direct store project"; at the same time, the original "marketing network construction project by Guiyang holding subsidiary opened a direct store project" changed to "set up Wuhan holding subsidiary to open a direct store project".

Since there is no open shop in 100 round pants industry, "buying 16 shops to set up a direct store project" has become a highlight of the IPO investment promotion project.

The project involved a total investment of 93 million 230 thousand and 694 yuan, accounting for 23.21% of the total amount of fund-raising.

Up to now, the project has invested 24 million 148 thousand and 806 yuan.

Now hundred round pants industry intends to buy 12 stores in the original project to raise 93 million 230 thousand and 694 yuan for the purpose of change, of which 83 million 230 thousand and 694 yuan is used for three line cities to purchase strategic shops for shops. The first year plans to invest 27 million 460 thousand yuan to purchase 5 shops, second years plan to invest 55 million 760 thousand yuan, purchase 10 shops, purchase a total of 15; the remaining funds are 10 million yuan to set up a wholly owned subsidiary of Guangzhou and Nanchang to set up direct stores.

Prior to this, the 100 round pants industry released its annual report in April 17th, still saying that in 2012, it will expand its market in the stock investment project market according to the recruitment and investment plan, and gradually purchase the resources suitable for the operation of the project, and expand the terminal network.

The hundred round trousers industry will be denied whether the marketing network construction project has been changed.

And last Friday, when calling the hundred circle trousers industry securities department, the securities department staff also assured reporters that "the investment and investment projects will be completed as scheduled and give investors a guarantee."

The main reason for high housing prices

According to the prospectus of 100 round pants industry, the fund-raising fund will mainly be used for the construction of marketing network. The project will invest 275 million 500 thousand and 700 yuan and will open 220 outlets in 8 capital cities of Changsha, Nanjing, Taiyuan, Nanning, Zhengzhou, Hefei, Lanzhou and Guiyang.

In the announcement today, the hundred round trousers industry said that as of June 30, 2012, the main body of the project was still a subsidiary of Limited by Share Ltd chain store chain in Shanxi, which has purchased 1 shops in Taiyuan and Nanjing, and invested 24 million 148 thousand and 806 yuan in total, all of which are shops purchase fees.

In recent years, the price of commercial real estate in China has been soaring, especially in provincial capital cities.

The company's original planned funds can no longer meet the needs of the actual shops.

If implemented according to the original project, the implementation effect of the original project will not be completed.

At present, most of the existing stores in the 100 round pants industry are mainly leased to the three or four tier cities in China. The number of shops in the two or three tier cities will also increase significantly if implemented according to the original plan.

But now the hundred round pants industry has said that it will retreat to the three tier cities. The abandonment of the first and second tier cities due to the high cost of the business can not help worrying about its future development.

None of the same type of listed companies, such as Smith Barney's clothing and search engine, had suddenly changed the recruitment and investment projects.

At the same time, the industry has just lowered its net profit forecast for the first half of the year, an increase of 20%~40% compared to the same period of last year's growth of 0%~20%, with a profit of 25 million 480 thousand ~3057 yuan.

The main reason for the performance decline is that the terminal marketing project of the company is in the decoration stage. At the initial stage of operation, it is still in the incubation period. The cost of direct store rental and staff wages has increased over the past year, resulting in the overall business performance failing to meet expectations.