Hai Lan's Home IPO Has Been Revealed For No Reason.

Recently, Hai Lan's home The final reason for the 7 companies' IPO being denied was officially disclosed on the SFC website. Of these, 2 were not internal control problems reflected in the demonstration of capital occupation and investment and investment projects. The 2 one was the continuous profitability problem caused by the large changes in business before and after the implementation of the investment projects, and the other 3 were due to poor independence, cost accounting methods and related transactions were unfair.

Of particular concern is the reason why Hai Lan's home IPO crashed. It was not the high inventory that was previously guessed, nor the internal control of the enterprise, which continued to cause a weaker profit. Instead, it failed in the problem of poor independence and related transactions.

According to the securities and Futures Commission, Hai Lan group, the controlling shareholder of Hai Lan's home, once held Keno technology. In 2009 and 2010, 3 main suppliers of Keno technology had business or capital exchanges with Hai Lan's home and Hai Lan group. Therefore, the independence of Hai Lan's home has been questioned, and there are also many doubts about related transactions.

In June 2012 this year, China clothing IPO, a well-known retail enterprise, was rejected by the SFC, resulting in a stranded construction project such as marketing network, logistics storage and distribution center and clothing research and design center. A great deal of attention was aroused.

　 People in the industry believe that the main reason for the failure of Hai Lan's home is excessive inventory and low inventory turnover.

According to statistics, from 2009 to 2011, the inventory of Hai Lan's home was 13 million 30 thousand pieces, 17 million 250 thousand pieces and 33 million 930 thousand pieces respectively, with an average annual compound growth rate of 61.37% during the reporting period. In the same period, the inventory value was 1 billion 305 million yuan, 1 billion 593 million yuan and 3 billion 863 million yuan respectively, accounting for 50.21%, 44.41% and 56.02% of the total assets respectively.

The inventory level is significantly higher than that of the listed peers. Guirenniao The prospectus shows that from 2009 to 2011, the company's inventory amount was 96 million yuan, 147 million yuan and 197 million yuan respectively, and the proportion of inventory accounts for total assets was only 10.83%, 10.86% and 10.26% respectively.

In 2011, Garment industry In the listed companies, the amount of the total amount of assets of the nine herd kings accounted for only 15.13%, while the seven wolves accounted for only 20.11% of the total assets. The proportion of the three enterprises' total assets in the total assets was far lower than that of the Hai Lan family.

From the inventory turnover rate, Hai Lan's home is also a "poor student" in the industry. According to the data, from 2009 to 2010, the inventory turnover rate of Hai Lan's household was only 0.79 or 0.88 times. During the same period, the inventory turnover rate of the nine Mu Wang was 2.08 times and 1.90 times respectively, and the turnover rate of the birds was 6.40 times and 8.62 times respectively.

Inventory is too high, inventory turnover is low, that is, poor inventory liquidity, resulting in continuous profitability is difficult to judge, from a financial point of view, the inventory turnover rate is also a prediction of the company's cash flow control level, so as to assess the entire company's needs and supply chain operation level. It is one of the indicators to evaluate whether a garment enterprise is running smoothly.

But obviously low inventory turnover is the short board of Hai Lan's home, and it is very short.

　　 At the same time, the overly slanted franchisee strategy of Hai Lan home has also been questioned.

According to the information, Hai Lan's home sells products to its customers through franchised stores, shopping malls and direct stores, among which the franchisee is the main sales channel of the company.

As of December 31, 2011, the "Hai Lan home" marketing network consisted of 1854 franchised stores, 63 shopping malls and 2 Direct stores. More than 90% of the sales revenue of the company's stores came from franchisees. The clothing companies that have already been listed are actually transforming into the business model of Direct stores. The franchisee mode of Hai Lan's home is expanding and the risk is increasing.

The pattern of Hai Lan's home and the United States Clothes & Accessories In the same way, production links and some sales channels will be mostly or completely outsourced. The focus of their operation will be on brand operation, product design and supply chain management.

That is, Hai Lan's home will outsource the production links to the manufacturer by the way of contracting and wrapping, while downstream products will be sold through franchised stores, shopping malls and direct stores.

　 Carefully observe the management mode of Hai Lan's home. We will find that this is a OPM mode, and also a bit of Ponzi scheme.

Because the general clothing enterprises are occupying downstream dealers' money, paying the whole amount to the upstream. The operation mode of Hai Lan's home is to tilt the preferential conditions to the downstream, and to buy the goods of the upstream suppliers by credit, and give the channel business enough interest. Perhaps the key is that the company is using its stores to grow rapidly to digest inventory.

Observation of the company's prospectus can be seen, the company's inventory turnover is significantly lower than the industry average, but the company did not appear like Lining, Metersbonwe, such as the stock crisis, revenue growth rate is still up to 60%, inventory turnover and operating income has a negative correlation. It has to be said that Hai Lan's home is a bit magical.

According to the data, at the end of 2009, at the end of 2010 and the end of 2011, the inventory of Hai Lan's home was 13 million 30 thousand, 17 million 250 thousand and 33 million 930 thousand respectively, with an average annual compound growth rate of 61.37%. As of December 31, 2011, the company had a stock of 3 billion 860 million yuan, accounting for 56.82% of its total assets. In 2011, the income was less than 3 billion 600 million yuan, and the inventory turnover rate was 0.77.

But in the same period, the company's annual revenue increased from 1 billion 383 million yuan in 2009 to 3 billion 594 million yuan in 2011, with an average annual compound growth rate of 61.17%. The net profit attributable to the owners of the parent company increased from 301 million yuan in 2009 to 701 million yuan in 2011, with an average annual compound growth rate of 52.66%.

Under the situation of increasing inventory, the turnover rate of inventory keeps decreasing, and the operating income shows a growth of 61.17%, which is somewhat puzzling. But in fact, this is exactly what the OPM model of Hai Lan home is. Using franchisees to digest the convenience of inventory in advance, we can make a clear statement in terms of revenue recognition and company growth. This will also attract more franchisees to enter the game to achieve faster revenue growth.

Hai Lan's home has relaxed the restrictions on franchisees and expanded the proportion of franchisees. As long as we meet the "identification with company concept, we can own or rent the store in the company's authorized position", idle funds need about 2 million yuan or so, three conditions can be the franchisee of Hai Lan's home.

As of the end of last year, Hai Lan's home has 1854 stores nationwide, and has been doubling growth since 2009. Use franchisees to digest inventory. The "snowball" mode of expansion of suppliers' prepaid accounts is clearly visible.

The advantage of this model is that the franchised businesses only need to sell their products to the franchisees, regardless of whether the products have been sold to consumers, even if the goods sold to the franchisees are not sold to consumers, this part of the products will not be included in the company's inventory. Because the volume of goods to franchisees is large, the higher the proportion of the number of franchisees in the store is, the less it is reflected in the inventory of enterprises.

This can be seen from the rapidly growing accounts receivable of the company. At the end of 2009, 32 million 141 thousand and 200 yuan reached 95 million 359 thousand and 300 yuan by the end of last year. These funds are mainly collected from the franchisee.

　 So from the performance of financial data, the scale of inventory is relatively small, while the growth of operating income is very fast.

Insiders say that the business mode of Hai Lan's home is very simple, and it can be imitated, and there is no core competitiveness. Hai Lan's home is a series of men's wear, so you can reproduce a series of women's clothing.

And the home of Hai Lan wants to really get rid of the illusion of virtual growth, and take the connotative growth and increase the construction of Direct stores is the trend and the way of kings.

In the long run, Direct stores will continue to be the main trend of the future development of garment enterprises, because they can enable enterprises to better control the terminal market and reduce the links of franchisees. Enterprises can get more profits from them, understand the real needs of consumers, enhance the brand image of the company, and meet the long-term development strategy of enterprises. It is also a relatively mature fashion enterprise operation mode.

Hai Lan's home business is still at a relatively extensive, low level and brutal expansion stage. Even in listing, sustainable profitability is not guaranteed. The stock price continued to languish under the curse of its former peers in the clothing companies. So it is probably a good thing for investors and the stock market to be IPO.