Lining Pays The Bills For The "Great Leap Forward" By Non Cash Means.

The cost of channel recovery plan < p > 1 billion 400 million ~18 billion will be reflected in non cash and offset accounts receivable < /p >

< p > it seems that "a href=" http://sjfzxm.com/news/index_f.asp "> Lining < /a > the company must really clear up the channel.

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"P >" Lining announced yesterday that the board of directors had approved the full implementation of the channel recovery plan, with a cost of RMB 1 billion 400 million to 1 billion 800 million yuan, with a focus on supporting distributors to clean up stock, repurchase, and integration of sales channels.

The cost is non cash and accounts receivable offset.

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At the same time, Lining expects to lose equity holders this year, which will be the first annual loss of the company's listing in 9 years.

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< p > in July of this year, when Lining's former CEO Zhang Zhiyong left office, the new management announced the company's next three stages of change plan.

At present, short-term measures for the first stage (now to the next 12 months) have been implemented, including clearing up channel inventory, improving the cost structure of products and operations, strengthening organization and execution capabilities, improving channel efficiency and profitability, focusing on core products and domestic markets, strengthening brand investment and improving marketing efficiency.

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< p > Lining management believes that reducing the old a href= "http://sjfzxm.com/news/index_s.asp" > inventory < /a > upgrading the proportion of new products, optimizing product group goods and improving marketing channels is the best way to revitalize the channel.

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Jin Zhenjun, executive vice president of P Li Ningxin, admitted: "over the past decade, the company has rapidly expanded its sales network through wholesale operation, occupied the market share and seized the first round of development opportunities.

However, too aggressive development has led to an increase in dealer inventories and a decline in the retail business's profitability and profitability.

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< p > it is understood that the channel revival plan will allow distributors to put more new product portfolios into the market, and will help dealers improve their financial status and cash flow.

The one-time investment of the channel revival plan will be mainly reflected in non cash and offset accounts receivable.

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< p > a large dealer in Shandong has also taken part in Lining's channel revival plan, which has been cooperating with Lining for 19 years.

A person close to Lining told reporters that Lining has indeed made some plans to help them clear the channel.

For example, with the help of Lining, the dealer has been holding a large sale meeting with some shopping malls in the future.

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< p > the above personages say that what they are doing at present is to accelerate the improvement of stores, such as changing small shops into medium-sized shops, upgrading medium-sized ones and upgrading the image of shops.

Meanwhile, the cycle of new product launches has also been extended.

"These are all preparations for clearing channels."

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< p > Lining's reform plan is aimed at enhancing the financial performance of the group.

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Less than P, just yesterday, Lining issued a profit warning that the profits before tax and equity holders in 2012 will be substantially lower than in 2011. At the same time, this year the group may get a loss of equity holders.

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< p >, which means that Lining will suffer the first full year loss since listing.

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Lining P has experienced 6 consecutive years of high growth since listing in Beijing in 2004. After the Olympic Games in Beijing, it reached its peak in 2009. Its revenue once exceeded that of Nike, second only to Nike's second level in the global sporting goods industry.

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From P to 2010, Lining made a rapid progress, and the growth rate was obviously lower than expected.

In 2011, Lining's income fell 5.8% to 8 billion 930 million yuan compared with the same period last year. Net profit fell 65.2% to 390 million yuan over the same period, and was robbed of the chair of the local sports industry by Fujian brand < a href= "http://sjfzxm.com/news/index_x.asp" > Anta < /a > sports.

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< p > in the first half of this year, Lining's operating income was 3 billion 880 million yuan, a year-on-year decrease of 9.5%, net profit of 44 million yuan, a decrease of 84.9% compared to the same period last year.

The company has closed more than 900 branches.

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< p > Li Ning Co directors believe that this year's losses are mainly due to the one-time cost involved in the implementation of the reform plan, including the channel revival plan.

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Since P launched a new round of change, CEO has never been able to find the right person for its role as the soul of the company. "CEO"

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