Reported Bird Failure To Increase The Frequency Of Self Rescue Financing Shrink Over 90%

It is worth mentioning that since May 31st,

The stock price has fallen by 23%, which will undoubtedly affect the enthusiasm of the market to participate in the issuance.

Perhaps it is precisely because of this worry that Wu Zhize, the founder of the company, has been carrying out a number of top management teams of the listed companies since the end of 2011.

But this series of actions to maintain stock prices has yielded little effect. At present, Wu Zhize and others have been matched.

According to the reporter's survey, there are many risks to the fast expanding birds, especially accounts receivable and other receivables, which account for more than 70% of the company's revenue, far higher than the industry average.

Founder holdings difficult to protect

The announcement of the public offering of the wedding bird has been put forward as early as April 27, 2011. At that time, the planned fund-raising was not more than 1 billion 500 million yuan, which was invested in the marketing network optimization project, including 1 billion 430 million yuan in construction investment and 120 million yuan in mobile capital, and the plan was approved by the shareholders' meeting in May 19, 2011 and May 31, 2012 and the official reply document of the SFC.

According to the validity period of 6 months, since the approval of the CSRC in May in the 31 daily bird, the listed company must complete the implementation of the public issuance until the end of November this year, otherwise the relevant reply will be expired.

Today's news of the new offer letter of interest is a race against time.

According to the announcement, the newspaper bird bird plans to issue 5 million shares at the price of 9.26 yuan / share, which is 95% lower than the first 100 million shares.

Since the public offering was approved by the SFC in May 31st, the share price of reported bird has fallen by 23%, and has hit a new low for many years.

In order to escort the issuance, Wu Zhize, founder of the wedding bird, and a senior executive team began to increase their holdings early.

Reporters noted that from the end of 2010 to the end of 2011, the news bird group and a team of executives reduced their holdings by more than 140 times, and the amount of cash in circulation was over 400 million yuan. Subsequently, the company's top management team bought 847 thousand and 700 shares of its own stock through the Shanghai golden yarn backhand in December 22, 2011, and the average paction price was 11.61 yuan / share. In November 30th of the same year, the company's public offering scheme was approved by the SFC.

Statistics show that Wu Zhize, founder of the wedding bird, holds 73.5% stake in Shanghai gold yarn, and Zhou Xinzhong, chairman and general manager, owns 10% stake in Shanghai gold yarn. The remaining shares of Shanghai gold gauze are held by 11 executives, such as Dong Fang Fang Fang and Xiao Fang.

From September 4, 2012 to 21, Wu Zhize again bought 619 thousand and 400 shares of stock, and the average price was 11 yuan / share.

According to the September 7th announcement, Wu Zhize plans to increase its holdings in the 12 months to no more than 2 million shares, but not less than 1 million shares.

From November 8th to 12, the news bird's share price plummeted, and Wu Zhize launched again. Several trading days added 434 thousand and 900 shares.

Despite the increase in the number of founders and executives, this kind of care is not recognized by the market.

Overspeed expansion 70% revenue is arrears

Why

It is a blind eye to the increase in holding behavior of listed companies, which may be seen from the direction of public issuance.

According to the data, the issuance is to optimize the construction project for marketing network, which is consistent with the consistent recruitment of investment birds.

But in fact, there are a lot of negative effects on the rapid expansion of the birds, which is one of the most important accounts receivable.

Three quarterly bulletin shows that the birds in the first three quarters of this year achieved operating income of 1 billion 714 million yuan, an increase of 28.77% over the same period last year. The net profit attributable to shareholders of listed companies also increased by 341 million yuan, an increase of 36.78% over the same period last year, and continued to maintain growth momentum.

However, it should be noted that the above 1 billion 714 million yuan business income is not entirely genuine gold and silver, of which more than seven become receivables (including accounts receivable and other receivables).

According to the disclosure, as at the end of September 2012, the accounts receivable of good news birds were 986 million yuan, and other receivables were 249 million yuan, up 37.57% and 64.61% respectively from the same period last year. The growth reasons were respectively "the scale of operations continued to expand and the new brands started to operate" and "increased financial assistance to franchisees". The total sum of 1 billion 236 million yuan increased 44.46% over the same period last year, exceeding the growth rate of the current business income, and also accounted for 72.11% of the current operating revenue.

Correspondingly, the turnover rate of accounts receivable was 2009~2011 years and 9.01, 6.51, 4.13 and 2.01 in the first three quarters of 2012 respectively, showing a gradual downward trend.

72.11% what is this concept? If compared with other listed companies, it will be more intuitive.

In the first three quarters of this year, the seven wolves achieved operating income and net profit of 2 billion 514 million yuan and 402 million yuan respectively, up 19.71% and 39.3% respectively from the same period last year. The total accounts receivable and other receivables at the end of the year increased to 905 million yuan. Similarly, the accounts receivable increased by 157.32% compared to the same period in the background of "increasing the strength of channel support and increasing the credit quota of agents".

In the same size as the reported birds, the sum of accounts receivable and other receivables amounted to 226 million yuan, accounting for only 28.82% of the current operating income of 784 million yuan, while the 14.39% was 14.39%.

In fact, the birds have always been more aggressive in business.

According to the flush iFinD data, the accounts receivable accounted for 160.41% and 86.09% of the revenue in the 1~2 quarter of 2012, respectively. They were at a high level; the seven wolves were 49.45% and 22.93%, respectively, 66.69%, 37.29%, and 23.31%, 16.45%.

In 2011, the proportion of accounts receivable corresponding to revenue fell from 124.09% at the beginning of the year to 42.83% at the end of the year.

Enterprises usually collect money at the end of the year. The seven wolves are from 58.06% to 12.2%, Hinur from 33.66% to 11.75%, and the king of nine herd is only 5.2% at the end of the year.

The problem of rapid expansion is more than receivables.

The reporter noted that the sales cost of the first three quarters of this year was 164 million yuan, up 56.4% over the same period of last year, mainly in the expansion of the network, advertising and the promotion of the new brand. Inventory also reached 745 million yuan, an increase of 45.74% over the same period because of some similar reasons. The inventory turnover rate in 2009~2011 years and three quarters in 2012 were 1.8, 1.74, 1.91 and 1.01 respectively, showing a decreasing trend year by year.

The receivables have made the company's capital chain burdened, but the birds also have to use large amounts of valuable cash in other areas.

For example, the company announced in January this year that it will spend 13 million 377 thousand yuan and 30 million yuan separately to acquire the remaining 49% stake of Shanghai Rong yuan Fashion Co., and set up a wholly owned subsidiary, Shanghai Ou Feng Fashion Co., Ltd. in April, the amount of financial assistance to franchisees rose from 180 million yuan to 210 million yuan.

Because of this, the net cash outflow of business birds in 2011 was 7 million 106 thousand and 200 yuan, and in the first quarter of 2012, it continued to flow out of 32 million 905 thousand and 900 yuan, which improved only in the two quarter of this year.

The risk of receivables is large.

As for the substantial increase in receivables, Xiao Xing Dong Fang Fang told reporters earlier that expansion is the company's marketing strategy, and that the agents are long-term cooperative relations. The company believes that the risk is not large and the sales scale has increased accordingly, so the increase in accounts receivable is also normal.

However, other companies are not as optimistic as Fang Xiaobo.

A well-known domestic

Brand executives told reporters, "at present, the industry is generally not ideal, we are willing to give dealers some preferential policies to support the terminal, but there is also a high risk behind this. We lend money to dealers is actually very difficult to monitor, whether dealers are really used to improve the terminal, we are not able to monitor."

Ni Haining, a representative of the company, said: "our company has always adopted a more robust mode of opening a store. If the goods are too fast, the terminal stores are very bad, the distributors are under too much pressure, the funds that the company sponsors and supports is hard to come back, and the latter is easy to get into trouble."

Chen Ping, a spokesman for the seven wolves, told reporters that the competition in men's wear market has been very intense. "We expanded rapidly before 2007. The market was very blank, but now the market competition is intense, and there are not so many terminal resources available for you to expand quickly."

A brokerage industry analyst in Guangdong told reporters that the news birds had stepped up their efforts to urge the franchisees to recover their money, which has improved since the two quarter. The reason why the three quarterly accounts receivable remained high was due to the fact that the company supported the franchised stores.

According to the introduction, the good news bird program "innovative" set up multi brand integrated large stores, for example, the previous shop 200 square meters, 1~2 brands, now the shop expanded to 400 square meters, in addition to its own wedding bird brand, and the purchase of Italy agent brand, will be installed inside.

This is a higher demand for funds, which is also the reason for the listed companies to take care of the franchisee.

"The real economy is not too good now. The overall sales of the industry are not as hot as 2010 and 2011. The expansion has slowed down. If we do not open new stores, the franchisees may still be able to maintain, but the new stores will not be willing or active, so the listed companies will give strong support."

The analysts said.

However, Tang Pinghua, a partner in management consulting, said in an interview, "generally speaking, the accounts receivable of clothing companies account for 50% of the total, which is relatively healthy. Over 50%, we must be vigilant. The proportion of 70% of the reported birds is too high. This shows that the inventory is too high, and the distributors' channels are extremely unsmooth, and they often pay arrears."

For the market, Tang Pinghua's view is that "men's clothing is no longer a market to fill the gap. The competition among brands is fierce, and many high-end brands in foreign countries have also laid the domestic market."

It needs to be pointed out that in the seventh page of today's "letter of intent to issue a prospectus", the news bird also mentioned that "although the company has taken classified management according to the franchisee's historical credit, sales scale and operational capacity, and strictly controls the proportion and amount of credit sales, the balance of accounts receivable will increase correspondingly with the expansion of business scale, which will affect the cash flow generated by the company's business activities and increase the risk that some accounts receivable cannot be recovered on time."