Expensive Birds Trapped In Channels Depend On Inventories Soaring

< p > the Limited by Share Ltd, which is mainly engaged in sports shoes and clothing, has been disclosed in its prospectus on the website of the SFC recently.

At present, the sports footwear industry is experiencing a slowdown in performance and a high storage bottleneck. A number of dominant enterprises have abandoned the extensive growth mode based on the expansion of the sales terminal scale. The company facing the same situation plans to spend 552 million yuan on the estimated amount of money raised to build a "strategic store" across the country.

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< p > > when the company is trying to expand the scale of shops with the help of "a href=" http://www.91se91.com/news/index_c.asp "IPO > /a", it is precisely the time when the performance of a href= "http://www.91se91.com/news/index_c.asp" is less than "/a".

The financial reports of Lining, 02331, HK, and other major listed companies in the same industry in China have been announced in 2011, and their performance has shown a downward trend.

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< p > according to the 2011 earnings report, Lining, the industry leader, dropped by nearly 500 million yuan compared with 2010, and the gross profit margin dropped from 47.30% to 46.1%, and net profit dropped 65.2% compared to the same period last year.

This is already the five largest local sports brand business, the highest gross profit margin business.

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Less than P, several other leading peer companies are less optimistic.

In 2011, in the second half of 2011, the net profit in the second half of the year (01361.HK) was 360 million yuan, 70% higher than that in the first half of the year, and the net profit of PEAK sports (01968, HK) was 778 million yuan, which was 5.4% lower than the 822 million yuan in the same period in 2010. For the current industry trend, the management consulting partner, Li Zhe, said: the market of sports shoes and clothing has been very saturated in the short term.

On the other hand, the business models of various enterprises are converging. The sales channels of several major brands are often controlled by the same dealers, and the growth mode is too extensive.

Industry growth forecast has been cut from 18% to 10%, and restructuring will take some time.

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< p > < strong > store plan is doubtful < /strong > /p >

< p > > this a href= "http://www.91se91.com/news/index_c.asp" > "noble bird" /a > total IPO collection of 882 million yuan, of which 552 million yuan will be used for the "national strategic store construction project". In the next two years, we will build 60 strategic brand stores, 29 shops and 31 rental shops.

The so-called "national strategic store", that is, the "bird of honor" has the ownership or the right to use the strategic store, and then hand over the right of operation to the local distributor, so as to strengthen cooperation with local distributors and strengthen the control ability of the retail terminal.

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< p > 2009 to 2011, the number of brand retail terminals of the brand increased from 1847 to 5067, with a compound growth rate of 65.63%.

In 2011, when the new bird opened 1306 retail terminals, it closed 266 retail terminals.

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< p > the number of retail outlets at present is 5067, which is comparable to that of XTEP in 2008.

With the Olympic Games Dongfeng, the number of terminal expansion was a sharp weapon for the growth of many manufacturers.

But up to now, the way of increasing the number of terminals has been abandoned by major sports shoes and clothing manufacturers.

At the end of 2011, Anta sports announced that Anta sports group had reviewed the opening plan in 2011 and planned to take a more prudent direction. In 2011, the number of stores was adjusted from 8200 to 78008000.

XTEP, another leading sports brand, will also grow from 800 to 1000 last year, to 400.

For PEAK sports, UBS forecast that the company's demand for terminal products will decline in the second half of the year, which will close its 10% branch store.

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< p > by the end of 2011, the distribution network of 90.03% of GV bird brand was distributed in the two or three and four line city market, accounting for only 9.97% of the first tier city market.

The new projects will continue to expand to the two or three and four tier cities.

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< p > an insider who asked not to be named told reporters that although the market of second tier cities has been highly saturated, the difficulty of expanding to the three or four tier cities is very large, because the scattered villages and towns are difficult to achieve centralized increments, and the management level of the relevant dealers will also weaken.

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< p > < strong > over reliance on distributor < /strong > < /p >

< p > this mode leads to highly dependable distribution.

The prospectus shows that the sales revenue of the five major customers (distributors' actual controllers) in the year 2011 accounted for 51.47% of the total sales revenue.

The first largest customer, Chen Chun and Yin Xiaojun, control the sales revenue of regional distributors, which account for 22.40% of the total sales revenue.

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< p > despite the increase in sales in 2010 in 2011, the net profit increased by 72.59% compared with that in 2010, but the balance of cash and cash equivalents at the end of the year decreased by 3 million yuan compared with 2010.

The increase of accounts receivable for dealers is one of the reasons. In the 2009-2011 year, the net accounts receivable of the birds were 190 million yuan, 407 million yuan and 591 million yuan respectively. Net accounts receivable accounted for 44.22% of current assets in 2011, and receivable bills increased by 48 million over the previous year.

In the first five distributors of accounts receivable, Chen Chun and Mr Yin Xiaojun occupied two seats.

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< p > < strong > Gao Cunhuo's common disease < /strong > < /p >

< p > Gao Cunhuo is one of the reasons why the balance of cash and cash equivalents is not rising at the end of sales and net profits.

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< p > although the company said in its prospectus, the turnover rate of the precious birds increased from 6.40 in 2009 to 9.44 in 2011, that is, the stock turnover period was shortened from 56 days to 38 days.

But the inventory of goods in 2011 increased by 57 million yuan compared with the end of 2010, an increase of 65.68%.

According to statistics released by reporters, in 2009 -2011, inventory turnover rates of Lining, PEAK, XTEP and so on all declined year by year, and the average stock turnover days also extended for more than 10 days.

Lining's inventory turnover reached 73 days, 21 days longer than in 2010, and PEAK sports stock turnover days increased from 38 days in 2010 to 49 days.

Even for Anta, which has the best performance this year, inventory turnover has increased by 2 days to 38 days.

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Worse than P, the cash flow of the company is already in a predicament.

In 2011, only 558 million yuan was paid for debt repayment, and 680 million yuan was added to new loans, while the net profit in 2011 was only 408 million yuan.

In addition, the company is a foreign-invested enterprise. It is exempt from income tax for 2008-2009 years, and the income tax is reduced by half in 2010-2012 years.

But since 2013, if no other new preferential tax policies have been introduced, the income tax rate will return to normal.

And 2011, 2010 and 2009, income tax concessions accounted for 10.36%, 14.85% and 30.46% respectively.

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< p > reporters contacted the "bird and bird" letter department on the above issues, and no reply was received as of press release.

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