Crunch Bird Tightening Front Line Short-Term Borrowing 500 Million

Since P decided to implement it in April 2011, the project has undergone several changes and delays. This adjustment indirectly condemned its death penalty.

In fact, < a href= "http://www.91se91.com/news/index_c.asp >" good bird > /a "is still shrinking the front.

As early as April this year, the company announced that it was prepared to sell no more than 20 shops that had been purchased.

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< p > "compared with other men's clothing brands, the ratio of direct battalion to birds is very low, and the control ability of physical channels is not strong. Therefore, like Lining, it is both a stock crisis and a channel crisis."

Ma Gang, an independent critic of footwear industry, said.

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Under the double crisis, the financial situation of the P has deteriorated.

In the first three quarters of 2013, the total revenue and net profit of the reported birds fell by 9.43% and 54.11% respectively. Inventory and accounts receivable remained high, leading to a sharp drop in cash flow and short term solvency.

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The company's share price is also declining in the market of P > two.

As of December 20, 2013, the company's share price closed at 5.94 yuan, down 43.05% from the highest 10.43 yuan in February 18, 2013.

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< p > < strong > abandoning the purchase of 47 shops, < /strong > /p >

< p > April 26, 2011, the news bird launched the A share issuance plan. The proposed non public offering does not exceed 50 million shares, and the fund-raising fund does not exceed 1 billion 500 million yuan, all of which are used in the marketing network optimization construction project.

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< p > the project aims to set up 180 main shops in the first 12 cities of China and 168 two tier cities, and establish 100 main shops in 12 domestic cities and 88 two cities.

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< p >, however, the increase has undergone several changes and delays.

The results of the November 22, 2012 issue showed that only 5 million shares were issued at the end of the year. After deducting the issuance cost, the net amount actually raised was 41 million 185 thousand yuan, which was only 2.75% of the original planned fund raising amount.

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After < p >, although the news bird tried to supplement the project with its own funds, but with the decline of the a href= "http://www.91se91.com/news/index_f.asp" > the apparel retail industry < /a > boom, the sales revenue of the company slowed down and the net profit fell sharply, so the company's own funds could not make up for the gap of the capital demand of the project.

As a result, the company had to issue a notice to adjust the recruitment investment project, and indirectly sentenced the death penalty of the project.

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< p > the specific adjustment plan is: the original project on the purchase of 47 shops is no longer implemented, if the future need to purchase shops will be used to solve their own funds; the implementation of the main body from the birds to be adjusted to the birds and their wholly-owned subsidiaries, the implementation of the site is no longer limited to the original 280 City outlets, the implementation of the brand is no longer limited to the good news birds, St. John's brand and other companies, the implementation of the way through the rental shops to set up direct stores or specialized offices, for the franchisee to bear some of the costs to support franchisees to open stores or special hall, with franchisees to set up cooperative business shop or special hall.

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< p > "when the market was released in 2012, the whole market was not good. We were not satisfied with the stock price at that time. In fact, we were prepared to give up. Later, because of the partnership, we issued a symbolic increase."

Xiao Bo, told the financial weekly newspaper reporter, "because the funds raised eventually differ greatly from what was originally anticipated. Considering the practical operability, we have mainly changed the way of buying shops into leasing and cooperation.

This is the adjustment that we take the initiative in accordance with our actual situation. "

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< p > actually, the company even sold stores on a large scale.

In April 3, 2013, the company issued a notice to adjust and optimize the marketing network. It said that due to the fact that some shops purchased were not suitable for the company's brand clothing business, and some of the outlets failed to meet expectations, the company intends to sell more than 20 shops that have been purchased. The total cost of the original purchase is not more than 300 million yuan, and the validity period is one year.

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< p > < strong > inventory and channel double crisis < /strong > < /p >

< p > stop expanding and even shrink the front line. At the same time, it is the inventory problem of the birds at present.

At the end of 9 2013, the inventory of the company was 989 million yuan, which was 1.94 times and 1.26 times the end of 2011 and the end of 2012. From the industry comparison, it was also far higher than the 667 million yuan of the seven wolves and 701 million yuan of the nine herd kings.

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< p > high inventories have also brought huge pressure to the franchisees of the wedding birds, so the birds also tried to restructure their channels.

It is reported that the goods sold to franchisees will be repurchased at a discount of the original factory price or pferred from buyout to a certain proportion, and the factory discount will be raised under the mode of consignment, involving a total amount of 400 million yuan.

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< p > the company predicts that the restructuring will reduce sales revenue by 240 million yuan in 2013, accounting for 10.65% of the 2012 annual revenue, reduce net profit by about 120 million yuan, account for 25.12% of net profit in 2012 year, and increase the stock of goods in the company by about 150 million yuan, accounting for 5.69% of the audited net assets and 3.15% of total assets at the end of 2012.

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< p > "although in the short term, it will reduce the company's revenue and affect the company's performance, but the company and the franchisee are long-term cooperative and win-win relations. In the case of low consumption, it is reasonable to increase the support for franchisees. It is also reasonable from a commercial perspective.

Second, franchisee inventory processing capacity is relatively weak, after their inventory is collected by the company headquarters to concentrate on processing, the efficiency will be higher.

At the same time, we think that next year the industry is better than this year, and franchisees can go to the next round of development with light weight.

Xiao Bo, a news bird, told reporters.

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< p > however, in the shoe and clothing industry independent commentator Ma Gang, this is not the fundamental way to solve the inventory problem.

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< p > "compared with other a href=" http://www.91se91.com/news/index_f.asp "> men's clothing brand < /a >, the proportion of direct battalion of the wedding birds is very low, and the control ability of the entity channel is not strong, so it is just like Lining, which is both the inventory crisis and the channel crisis.

Ma Gang said, "a few years ago, it also wanted to be an e-commerce channel, but it failed to do it. It could not support its retail business. If there was another channel crisis, the next agent might not play with it. That would be a very frightening problem.

Now the whole industry is talking about wholesale and retail, which is the fundamental strategy to solve the inventory problem, but the birds just want to restructure the channel, but how to restructure without a more detailed plan is just a little profit, which is not enough.

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Under the dual crisis of P, the financial situation of the birds has deteriorated.

In the first three quarters of 2013, the total revenue was 1 billion 552 million yuan, down 9.43% compared with the same period last year, and net profit was 157 million yuan, down 54.11% compared with the same period last year.

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< p > in addition to inventory, the company's current accounts receivable is also high.

At the end of the three quarter, accounts receivable reached 831 million, and other receivables were 207 million, accounting for 66.88% of the total revenue in the same period.

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< p > in the first three quarters of this year, the cash flow of the cash birds was -3.37 billion, and the 11 men's clothing companies in last year were the last, while the cash flow of the company last year was as high as 477 million.

At the same time, at the end of the three quarter, only 263 million yuan of money was available on the company's account, while short-term loans were as high as 517 million yuan.

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< p >, however, Fang Xiaobo stressed that the company's current solvency is no problem.

"The company's current asset liability ratio is not high, and we have an excellent reputation in the region, which is a gold customer of ABC. It is no problem to get loans at any time, and the" a href= "http://www.91se91.com/news/index_cj.asp" loan > /a "interest rate is downward.

From another point of view, we can help our agents to deal with inventory this year, which is equivalent to investment. Next year, it will be equivalent to recovery and return.

Next year's operating cash flow will gradually improve.

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