Metersbonwe Is Exposed To False Sales Concealed 800 Million Inventory

Before October 20th, the United States

The franchisees will go to the American Shanghai headquarters to participate in the 2013 spring clothing ordering conference.

At the meeting, there may be the most intense confrontation between the US and the franchisees.

"The pressure on this order will be very great."

A Western District

Expressing concern.

The pressure of franchisees is the huge inventory that they are forced to accept.

At the end of last year, 2 billion 560 million of the barn garments were exposed.

Under pressure, Zhou Chengjian, the chairman of the board, criticized the executive for "three eggs and one not", that is, asshole, bastard, nonsense and inaction.

In order to digest inventory, Zhou Chengjian went to another extreme.

A number of core insiders have confirmed to the financial weekly newspaper reporter that in the first half of 2012, the digestion of the 800 million inventory of Smith Barney clothing was suspected of false sales and artificially adjusted income.

At the same time, China is the largest.

The company has also undergone large-scale personnel changes. The direct fuse is to deal with the stock crisis in a radical way.

A former US state employee said the reason for leaving was "grievance" and "fear".

He said that the United States is sliding to great danger.

"Internal employees are disappointed, external franchisees are hopeless, suppliers are hopeless."

The pain of franchisees

The whole country is divided into four sales areas, the first half of 2012, and the sales volume of the three regions in Southeast and North China has increased, only the sales in the western region have decreased year by year.

In Chongqing, Chengdu, Guiyang and other places, the United States has accumulated 435 million sales, down 5.9% over the same period last year.

"Chongqing and Chengdu are direct outlets, and Guiyang is the most serious."

Former American state employee introduction.

On the morning of October 10th, I came to Guiyang.

The old house in the 3 storey building in the center of the city.

The summer wear is 30 percent off, but nobody cares.

This is the largest American state store in Guizhou province. A female saleswoman told a weekly newspaper reporter with a word of Guiyang, "it's not selling well.

Like the old one, people have seen it last year, and they can't sell it at a discount.

On the 3 floor of the new TAGLINE, there is no customer.

Another shop across the street has more customers than customers.

On the first floor is Jay Chou's "rice flower fragrance". On the two floor, there is a more noisy rock, and the music echoes in the empty shop.

"This year it is not selling well."

A shop assistant looked depressed.

In the vicinity of the work of millet introduction, "every passing through the United States can basically see a discount, this year's situation is particularly obvious.

Cold is not the latest thing. "

Financial Weekly reported that during the golden week of the National Day Mid Autumn Festival, the number of individual business achievements dropped by 50%.

Compelled to start, franchisees have begun selling discounts, but if the US does not provide subsidies, thirty percent off has already thrown franchisees into losses.

"We purchase 43% off from the US state, plus freight and props costs, the cost is about 60% of the price.

The rental of the shops will account for 15% of the price. If it is the counter, it will increase to 18%.

Plus 7% to 8% personnel costs, we sell one piece for one.

A US state franchisee complained to the financial weekly newspaper reporter.

In this regard, the United States in Guiyang, the first largest franchisee, "Xiao Wen business" Tan surnamed responsible person said "inconvenient comment."

Similar to the situation in the western region is the North District.

Although North District achieved 8.44% sales growth, dealers in Heilongjiang, Shijiazhuang, Dalian, Qingdao and other places had the biggest pressure, and autumn and winter were the most pressing.

The former US staff disclosed to the financial weekly newspaper reporter.

In the US stock, the largest proportion is the autumn winter clothing. In order to resolve the stock of the listed company, Smith Barney chose to shift the stock pressure to the dealer's head.

"The company wears the most winter clothes for us."

An introduction to Guiyang's American bond store.

Some dealers are reluctant to say that "the pressure from the us to the terminal channel is too great. The traditional clothing industry has been challenged, and we are under great pressure."

Pressing goods is a magic spell set in the minds of franchisees, which makes them gradually lose their vitality.

In the first half of this year, the franchisee contributed 2 billion 240 million of its revenues to the United States, accounting for 49.1%, the first time below 55% in many years.

"US bond has been on the market for five or six years. I hope they can slow down, stop, let the shop do an image upgrading, and reconsider the structure of the goods."

A dealer said.

Faced with the plight, Li surnamed, the largest franchisee in the United States and Anshan, said: "it is not unwilling to say that it is inconvenient to say."

I can't solve it. "

Zhou Chengjian's inventory

Analysts in the industry say that the inventory of today's clothing industry can be sold for three years without new products.

Confident Zhou Chengjian has always been optimistic about the situation of clothing sales.

After the listing, capital market demanded rapid expansion, and the expansion of market value also made him confident and erroneous judgement about his ability range.

The fast fashion that ZARA wants to learn has turned the cart before the horse, and the final inventory is in its own hands.

As for the new brand MC and TAGLINE launched by Smith Barney, in the words of analysts, "MC and tagline have just started to sell, but they have been slow."

MC and TAGLINE have never disclosed financial data separately.

Smith Barney's stock is high, not cold in a day.

2009 900 million, 2011 2 billion 560 million.

There were people in the circle who evaluated Zhou Chengjian's executive ability and the courage to accept new things in the industry, but this is the most important reason for the rapid development of the United States and the short board of the United States.

Surprisingly, the sales of Baron's Direct stores and franchisees are very difficult now, but half a year, Zhou Chengjian's stock has dropped.

From 2 billion 560 million yuan to 1 billion 750 million yuan is a terrible miracle.

How does the United States digest the 800 million yuan stock?

Over the past five years, the United States and the United States are holding subsidiaries.

According to the report, AI sang bang, Liaoning Dalian, Hunan Changsha, Henan Zhengzhou, Hebei Shijiazhuang respectively contributed 317 million, 35 million 240 thousand, 27 million 640 thousand, 24 million 220 thousand, 21 million 120 thousand to the US state, totaling 425 million yuan, accounting for 10% of revenue.

Among them, AI sang Bang purchase is a wholly owned subsidiary of the American state holding shareholder Shanghai Hua suit, the actual controller behind it is Zhou Chengjian, and the other four largest clients are the US bond franchisees.

In other words, in the first half of this year, Zhou Chengjian's AI Shang Bang bought 317 million yuan for American state.

Inside the United States, there were even rumors that the stock of the United States was sold to AI Shang bang for 7-8 billion.

At the same time, Zhou Chengjian's relatives also shared 68 million 640 thousand yuan of stock, including selling 32 million 330 thousand yuan to brother-in-law Huang TSE period (franchisee), nephew Zhou Wenhan (franchisee), selling 19 million 580 thousand yuan to sister Zhou Jianhua, and selling 16 million 730 thousand yuan to sister Zhou Xian Mei.

Contrary to stores, dealers' complaints, self deception and handling of inventories, the 2012 semi annual report of Smith Barney's gorgeous apparel sales increased by 21% and net profit increased by 15%.

And the 86 family

There were 40 negative revenue growth in apparel listed companies, and 42 net profits declined.

But dealers who are close to each believe that the market downturn is more obvious this year.

So, where did the magnificent statement come from? {page_break}

The birth of gorgeous Report

In 2012, the clothing industry was unhappy, and Semir, another big clothing company, lost 43% of its net profit.

Under such circumstances, the United States is still growing by 15%, and its inventory has dropped from 2 billion 560 million to 1 billion 853 million, making Zhou Chengjian earn enough money.

"Several times I heard that boss Zhou was in front of his colleagues and said that my side is growing up."

A United States former middle level said.

Some executives of listed apparel companies are puzzled. "In this situation, why did the US state maintain such a big growth?"

More colleagues directly call the US state senior, "this is all the same, do you dare to go to the accounts? In the first half of the year, what will your boss do in the second half of the week?"

The "go on account" mentioned here is a means for the apparel industry to pull up its performance, that is, advance distribution.

A core insider revealed that in 2012, the performance of Smith Barney was sent to the franchisee in advance of the goods originally planned for distribution in February 2013.

What's unique about Smith Barney is that the pre allocation is done separately by the financial department, not through the business department.

The prefabricated tools are the ERP information system that the United States enjoys a high reputation in the clothing industry.

A senior official familiar with the system told financial weekly newspaper that "this system is used by us franchisees and direct stores, branches, financial departments, stocking, inventory management, retail stores and logistics."

A multi party investigation and verification has basically restored the "preallocation process" of the US state clothing. The business department first communicated with the franchisees, and let the franchisee make an order, and asked the company to make the payment to the company account before December 31, 2012; at the same time, the company would make a virtual warehouse, and then the system showed that the goods had been sent to the franchisee's hands, and then the system automatically formed sales revenue.

But the truth is that the goods are still in the warehouse and have not been sent to franchisees.

"After the financial accounts are finished, all the mess is handed over to the business department, including communication with logistics department, communication with franchisees, etc."

The above information was confirmed by a franchisee in North District, "I have heard about this."

There will be a serious "hangover" when doing virtual warehousing, which means that the system will show that franchisees already have the goods when they are actually allotted, and the pre allocated accounts of each warehouse are not matched with the actual allotment.

"At this time, the business department will have to communicate with franchisees, what are you prepaid, but what should be allocated, how to go, how to go, and how to write your purchase contract.

These are all things we do, regardless of finance. "

Predistribution is becoming a nightmare for business departments.

"We need to spend a lot of time in the futures contract and under the ERP virtual distribution, manually hand over the book, and then send it to the logistics distribution colleagues.

And there is another problem. There are always some differences between the supply contract and the actual delivery, so we need to go back to adjust. "

Even more frightening is that the hole caused by pre allocation is bigger every year.

"The first time in 2008, the first difference was tens of millions, and now it is adjusted by several hundred million or billions of dollars every year."

"The business department and the finance department are very noisy."

The insider said, "of course, they also know that colleagues in the finance department are just following orders.

Huang Xing, the former chief financial officer, was afraid to quit after he was afraid.

During the interview, Zhou Chengjian's cell phone has been shut down, and Han Zhongwei hasn't answered the phone.

When the above process was verified to the people of the United States Securities Department, the other side was alarmed and stressed again and again, "there is no virtual outgoing library."

Faced with this practice, a senior auditor in China was surprised, "so it seems that the company's finances are made.

The product has been issued as a basic condition for confirming sales revenue; if the goods are still stored in the warehouse, it is not enough to register the library. This is a false sale, and the finance can not confirm the income. The money that the franchisee can get into the warehouse can only be included in the receivable account.

But Zhou Chengjian did not see anything wrong with it, and he had great desire for 100% growth.

"He forced the staff to perform, or even managed to keep the order on the table by some management."

Even those who have already left, no one will deny that Zhou Chengjian is dedicated.

In the eyes of many subordinates, Zhou Chengjian is very confident and willing to admit his mistakes openly, but he often fails to listen to others' opinions. His mind jumps and is very changeable.

"Zhou boss is a compulsive perfectionist who can not afford to be careless.

This character is entirely possible for him to do so in pursuit of a better report.

An old man who has followed Zhou for so many years commented.

But many people think that this is not just a face issue: "Zhou boss often makes some equity mortgage financing, and handsome results can stabilize the stock price."

According to statistics, in August 28, 2009 -2012 August 22nd, a total of 12 equity pledge was made by Zhou Chengjian's actual Chinese clothing investment, and the 407 million shares of the US bond were mortgaged to the company such as China Merchants Bank, Yunnan trust, southwest trust and so on, accounting for 40.5% of the total share capital of the US state.

40 behind the core personnel

At the beginning of this year, the danger of stock in the mountains made Zhou Chengjian unable to control his anger. At a meeting, he shouted at his executives "three eggs and one not", that is, asshole, bastard, nonsense and inaction.

This scolding, from Shanghai to the location of various branches, and from all locality branches to Shanghai, from the end of the year to curse the new year, from the new year cursed to the Spring Festival to work, lasted for months, Zhou Chengjian's anxiety can be seen.

Zhou Chengjian adopted an egg policy for employees whose performance was not up to standard.

A "departed" person told financial weekly newspaper reporter, "it is a complete deduction."

。

The boss sent someone to advise us to submit the resignation report voluntarily and try to get rid of the compensation.

It's not just grass-roots workers.

According to people familiar with the matter, in November 2010, the United States announced a 185 equity incentive list, including 7 vice presidents, 17 directors and 161 department managers.

Among these people, there are now less than 40 people leaving the United States, accounting for more than 20%.

In the vice president, min Jie, who controls the information system, left.

The man was a "airborne soldier" from the famous international aeronautical telecommunication group (SITA) in early 2009, only to turn around and leave in May 2011.

In July 27th this year, Cheng Weixiong, vice president of marketing for 13 years in the United States, also bid farewell to the United States.

The 17 directors went to 7, including Jiang Daijun, who spent 13 years in the United States, and Huang Xing, second chief financial officer, and Li Jingxia, director of human resources department.

161 departmental managers have also left 31.

"This does not include any of the following departmental directors."

A man leaving the US state expressed fear.

"Fear is because we realize that we are wrong in doing so."

He reluctantly told the financial weekly newspaper reporter, "the performance of the United States is actually very difficult this year, there is no report beautiful.

In fact, we really want to ask Zhou general a question. Why can't we let our reports slow down a bit? "

The traditional national day shopping season has just ended.

According to people close to the United States, sales during the long holidays fell by nearly 30%.

"Financials are worried that this year's annual report can't be beautiful."

Employees who have left the US state are also secretly worried about their colleagues in the finance department. "The distribution of autumn clothing has been advanced to the first half of this year.

What is the performance of the US in the second half? How do we report?

For the 3 quarterly earnings forecast, the US bond growth rate will be set at a more conservative 0-30%.

In fact, this is the eighth human shock in the history of the United States, and it is also the largest and most secretive of the lineup.

Before its listing in 2008, the United States had experienced six large-scale personnel shocks, including 5 management departures in 1997, 19 managers leaving in 2002 and 2 vice presidents in 2004.

Speaking of these personnel turbulence, Zhou Chengjian once admitted that in the past 13 years, the United States has not done enough in terms of human resources, and is determined to put an end to the seventh major personnel disturbances.

However, in 2008, there were seventh personnel changes in the United States.

Supervisors Lu Xiaohu, director and chief financial officer, Zhong Xing, and other executives resigned.

In August 21, 2009, vice president Yang Geling also submitted a written resignation.

The great changes in the US state are often simply understood by the outside world.

Only the internal staff of the US state knew that the great pressure and risk behind the beautiful financial report is a time bomb.

The gloomy story on the back of the glossy report makes executives reluctant to go on.